Chennai Petroleum Corporation has notched Q4FY21 EPS of Rs 16.3 and Rs 17.3 for FY21 due to higher refinery margins. The share is likely to touch Rs 140 in the short term.

Shakti Pumps, the pioneer of energy-efficient pumps and motors is a prestigious brand in domestic and overseas markets, has posted Q3 EPS of Rs 14.4, 9MFY21 Rs 24.5 is all set to notch FY21 EPS of Rs 42+ and Rs 60 in FY22. Shakti is the most preferred Solar Energy Brands. Buy for 30% appreciation.

Samkrg Pistons & Rings, which made a lifetime high of Rs 379 on 15 Jan 2018, exports 25% products to over 24 countries has notched Q3 EPS of Rs 7.6 and could post FY21 EPS of Rs 18 on the revival of the auto sector. The share may cross the Rs 200 mark. Buy.

Welspun Corp has sold its plates and coil mills division to JSW Steel for Rs 848.5 cr. and will sell its 43 MW power plant to Welspun Power for Rs 66.9 cr. Last month, it won a Rs 777 cr. order from the Middle East and may notch FY21 EPS of Rs 25. Shareholders can expect a hefty dividend. Buy.

IZMO Ltd., a world leader in interactive marketing solutions offering hi-tech automotive e-retailing solutions in North America, Europe, and Asia, has notched 36% higher Q3 EPS of Rs 6.3, 179% higher 9MFY21 EPS of Rs 16.5, which could take its FY21 EPS to Rs 23. The share may rise 100% in the medium to short term. Buy.

Bajaj Steel Industries, perhaps the only company in the world producing machinery for all cotton ginning technologies, has posted Q3 EPS of Rs 33.9 (FV Rs 5), 9MFY21 EPS of Rs 70, which could lead to FY21 EPS of Rs 100.The share is poised to touch Rs 750 at a P/E multiple of 7.5x.

Mangalam Cement, a BK Birla group co, has notched 200% higher Q3 net profit with an EPS of Rs 14, 9MFY21 EPS of Rs 27.2 and is expected to post FY21 EPS of Rs 40. A reasonable P/E of 10x can take its share price to Rs 400 in the medium term. Buy.

SP Apparels, a fully integrated manufacturer & exporter of knitted garments under the ‘Crocodile’ brand, has notched Q3 EPS of Rs 7.7, 9MFY21 EPS of Rs 15 and is expected to notch FY21 EPS of Rs 23. The share is likely to advance by 30% going forward. Add in the portfolio.

Cigniti Technologies serving 200+ industry active clients including 50 Fortune 500 customers across 13 countries with diversified verticals has posted Q3 EPS of Rs 9.5 and 9MFY21 EPS of Rs 29 is all set to garner FY21 EPS of Rs 42. Buy for 30% appreciation.

Dhunseri Ventures having several subsidiaries and joint ventures has chalked out 45,000 TPA polyester packaging plant for Rs 400 cr. Having posted 9MFY21 consolidated EPS of Rs 32.6, it is grossly underpriced as its sound financials will take its share price to dizzy heights.

UTI Assets Management has posted a 625% higher Q4 EPS of Rs 10.6 and 82% higher FY21 EPS of Rs 39. Having declared 170% dividend (Rs 17/share), the share is expected to gain 20% going forward.

Sugar is the next Steel according to market pundits. Magadh Sugar recommended two weeks back @ Rs.110 hit a high of Rs.172 on Friday.

JK Tyre has reduced its debt substantially and its rating has been upgraded. It is likely to come out with exceptionally good quarter with an EPS of Rs.10. The stock trades cheap at Rs.120 and can easily appreciate 50% from the current levels.

Tilaknagar Industries, manufacturer of Mansion House Brandy, has signed a long-term deal with global spirits giant Pernod Ricard to manufacture its product. A long term positive for the stock. Buy for multi-bagger gains.

NSE listed Sundaram Finance Holdings (Rs.74) is likely to apply to RBI for an NBFC licence. The stock trades cheap at a market cap of less than Rs. 2000 cr. and can give multi-bagger returns to a patient investor. Buy at every decline.

Themis Medicare is celebrating its Golden Jubilee and is likely to post FY21 EPS of Rs. 40. The stock is trading at an attractive P/Evaluation of just 9 and has the potential to rise 50% in the short term

Filatex recommended last week is up 20%

Dhampur Sugar recommended last week is up 25%

Copper hits $10,000 as global growth fuels the rally. Analysts expect it to rise further. Hindustan Copper will be the major beneficiary of high copper prices. Buy for a target of Rs. 250.

Force Motors, manufacturer of Tempo Traveller used as an ambulance has delivered record number during these tough times. It also manufactures car engines for Mercedes & BMW apart from tractors. Buy for a target of Rs. 1600.

The Baltic Freight Index at 2957 is at a 5-year high, rose 360% rise in 52 weeks and 116% up in just 4 months of 2021. Shipping Corporation will be the major beneficiary having hired professionals Capital Pvt. Ltd. for a road map for strategic disinvestment. Buy for target of Rs. 180

*An Ahmedabad based analyst recommends to buy Agar Ind, Fiberweb, FMGOETZE, Kanpur Plastipack, Pressman, PTL Enter, RDB Rasayan ,Total Transport (Traded Only NSE-Symbol Total)and Umang Dairies*


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News- Berkshire Hathaway (BRK) earnings Q1 2021 cnbc.com/2021/05/01/ber…,ASHOK LEYLAND: APRIL TOTAL SALES 8340 UNITS VS 17,231 UNITS (MOM) EST: 10,100 UNITS,RT @ANI: "First batch of SputnikV vaccine arrives in #Hyderabad, India!


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*Stocks in News*


*Mahindra Logistics Q4:* Profit at Rs 12.6 crore versus Rs 9.7 crore, Revenues at Rs 974.0 crore versus Rs 812.0 crore YoY (Positive)

*Ambuja Q4:* Profit at Rs 947.0 crore versus poll of Rs 730.0 crore, Revenues at Rs 7715.0 crore versus poll of Rs 6250.0 crore YoY (Positive)

*Exide Q4:* Profit at Rs 322.0 crore versus poll of Rs 220.0 crore, Revenues at Rs 456.0 crore versus Rs 347.0 crore YoY (Positive)

*Bajaj Holding Q4:* Profit at Rs 949.0 crore versus Rs 361.0 crore, Revenues at Rs 92.5 crore versus Rs 111.0 crore YoY. (Positive)

*Aptech Q4:* Profit at Rs 9.7 crore versus loss of Rs 7.3 crore, Revenues at Rs 29.5 crore versus Rs 29.5 crore YoY. (Positive)

*Tata Coffee:* Profit at Rs 43.0 crore versus Rs 9.9 crore, Revenues at Rs 591.0 crore versus Rs 517.0 crore YoY. (Positive)

*MOSL Q4:* Profit at Rs 448.0 crore versus loss Rs 254.0 crore, Revenues at Rs 1141.0 crore versus Rs 611.0 crore YoY. (Positive)

*Jay Bharat Maruti Q4:* Profit at Rs 20.2 crore versus Rs 9.8 crore, Revenues at Rs 541.0 crore versus Rs 402.0 crore YoY. (Positive)

*Persistent Q4:* Profit at Rs 137.7 crore versus poll of Rs 124.5 crore, Revenues at Rs 1113.0 crore versus poll of Rs 1108.0 crore YoY. (Positive)

*Shriram trans:* Company restructured loans worth Rs 590 Crores Cash Balance at Rs 11050 Crores Vs 3800 Crores QoQ. (Positive)

*Route Mobile:* Company to acquire Phonon communication (Positive)

*Wipro:* Company partnered with HP for remote working stations (Positive)

*Wipro:* Company changed revenue guidance at 8 to 10 percent to $232 cr to $236 cr (Positive)

*Dr. Reddy's* announces the launch of Albendazole Tablets, USP in the U.S. Market. (Positive)

*Surya Rosni:* ICRA Ratings has reaffirmed Credit Rating to ICRA A1+(CE) for Rs. 200 crore SBLC backed CP Program. (Positive)

*Jindal Drill:* Long Term Rating CRISIL A-/Stable (Outlook revised from 'Negative' and rating reaffirmed) (Positive)

*Purvankara:* ICRA has maintained the previous rating and outlook has been improved to Positive from Stable (Positive)

*IDFFC LTD*: PLUTUS WEALTH MANAGEMENT Bought 1 Crore Shares In Trade (Positive)

*Titan Q4:* Profit at Rs 530.0 crore versus poll of Rs 525.0 crore, Revenues at Rs 7135.0 crore versus poll of Rs 7018.0 crore (Neutral)

*Cigniti Tech Q4:* Profit at Rs 24.7 crore versus Rs 29.0 crore, Revenues at Rs 233.0 crore versus Rs 233.0 crore YoY (Neutral)

*Equitas Small Bank Q4:* Profit at Rs 113.0 crore versus Rs 43.0 crore, NII at Rs 449.0 crore versus Rs 424.0 crore YoY (Neutral)

*AU Small Finance Bank*: The bank reported a higher profit at Rs 168.97 crore against Rs 122.32 crore in Q4FY20, net interest income rose to Rs 655.83 crore from Rs 554.94 crore YoY (Neutral)

*Zensar Technologies:* Net profit in Q4FY21 rose 27.6 percent to Rs 90.5 crore from Rs 70.9 crore while revenue fell 10.2 percent to Rs 876.7 crore from Rs 976.3 crore, YoY. (Neutral)

*L&T FH Q4:* Profit at Rs 267 crore versus Rs 386 crore, Revenues at Rs 3224.0 crore versus Rs 3280.0 crore YoY. (Negative)

*Coromandel Q4:* Profit at Rs 156.0 crore versus Rs 234.0 crore, Revenues at Rs 2856.0 crore versus Rs 2869.0 crore YoY. (Negative)

*Music Broadcast:* HDFC STANDARD LIFE Sold 22.44 Lakh Shares (Negative)

*Mm Forging*: KUWAIT INVESTMENT AUTHORITY FUND Sold 1.37 Lakh Shares. (Negative)

*Escorts:* The company will be temporarily shutting down its manufacturing operations, on a selective basis, between 1st May 2021 and 3rd May 2021. (Negative)

*Ujjivan Financial:* The company’s minority shareholders have rejected a special resolution to appoint founder and chairman Samit Ghosh as managing director and chief executive officer (Negative)


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Escorts total sales at 6979 units vs 12,337 units (MoM)

M&M total sales at 36,437 units vs 40,403 units (MoM)

TataMotors PV sales at 25,095 units vs 29,654 units (MoM)

Maruti sales at 1.59 lk units vs 1.67 lk
units (MoM)

Eicher CV sales at 2,145 units vs 7,037 units (MoM)

M&M tractor sales at 26,130 units vs
30,970 units (MoM)


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Info Edge invested ₹4.7 Cr in Aug 2010 in Zomato. They own 18.55% of Zomato. The holding is worth ₹7416 Cr today(5.4 bn$ per latest fundraise)

A cool CAGR of 94.22%!

The value is slated to increase more as IPO valuation is speculated to be in the 6-9 bn $ range!

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#AmbujaCement 's massive 20 MT capacity expansion to cost Rs 10,000 crore

Ambuja Cement's plan to add 20 million tonne per annum (MTPA) to its existing 30 MTPA capacity will be costly, but it will intensify the competition in the segment. Analysts estimate that the company will have to spend around Rs 10,000 crore for the expansion, which it plans to complete in the medium term (around 3-5 years).
Ambuja's upcoming facility in Marwar Mundwa, Rajasthan will enhance clinker capacity by 3 MTPA and help improve cement sales by 5 MTPA, contributing to long term strategy of capacity expansion.

This greenfield integrated plant, at a total investment of Rs 2,350 crore, will commence operations by July-September quarter.
The cement maker is evaluating brownfield expansions in Bhatapara (Chhattisgarh) and Maratha (Maharashtra) plants. It is also looking at significant debottlenecking opportunities across all plants. The growth plans will be executed in mid-term for Ambuja to reach 50 MTPA cement capacity.

It has reported a 71 per cent jump in its consolidated net profit at Rs 947.21 crore in January-March quarter, as against a profit of Rs 554 crore last year, beating analyst estimates on the back of strong volume growth and lower operating costs.

Ambuja's execution on costs continues to beat expectations, with a combination of fuel-mix change, optimising fixed costs, distribution, and energy efficiency measures contributing to the lower costs, said Goldman Sachs in its report. "Some of these cost benefits are likely to continue, which should help narrow the valuation gap vs larger peers -- in our view.

Additionally, the expected capacity addition at Marwar Mundwa by Q3CY21 will not only add 3 MTPA of clinker and 1.MTPA of grinding for the company but also provide clinker for some starved grinding capacity and hence drive better than historical volume growth for the company. This drives our EBITDA to grow from Rs 3,100 crore in CY21 to Rs 3,800 crore in CY22 -- growth of 23 per cent," said Goldman Sachs.

Ambuja Cement continued to surprise positively with Q1CY21 EBITDA increasing 62 per cent YoY to Rs 980 crore led by lower costs. Total cost per tonne declined 6 per cent QoQ (and 5 per cent YoY) vs our expectations of flat cost/te owing to fuel mix optimisation, better cost efficiencies and operating leverage.

Volumes including clinker sales grew 25 per cent YoY while realisation remained flat QoQ -- both broadly in-line with our estimates," said ICICI Direct report.

Morgan Stanley report said that better-than-expected demand led to faster volume growth.

Lower-than-expected costs, helped by the company's ongoing cost-saving initiatives, and higher-than-expected price increase resulted in better EBITDA margins, it added.

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*CDSL* Q4 & FY 21 Results

Q4
~Revenue up 52%
~PAT up 80%

FY 21
~Revenue up 40%
~PAT up 90%
~Assets up ~100%
~Cash flows up 134%

~Dividend 9


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*AU SFB Q4FY21 Concall Update*
(Nirmal Bang Retail Research)

◉ *Asset quality deteriorates with stressed pool growing*
◉ *Expect higher credit costs in FY22 than earlier anticipated*
◉ *Operational performance remains stable; disbursements were at highest levels ever*

*Outlook: Negative in near term; Positive in long term*

*Asset Quality deteriorates*
• Although overall Collection Efficiency (incl. arrears) has increased to 112% in March from 103% for Dec, the billing efficiency (not disclosed by the bank) seems to have declined which is reflected in the increased stressed book.
• GNPA came at Rs. 1503 Cr vs QoQ (proforma) Rs. 1116 Cr at 4.25% vs QoQ 3.70%. The increase was due to Supreme Court’s stay (on tagging of NPAs). Due to this AU had tagged accounts which had returned to < 90 DPD as NPA.
• Thus if we just look at just the 90+ DPD loans, it has declined from 3.4% in Dec to 2.8% in Mar.
• *Stressed book:* If we look at the 0-90 DPD, it has increased from 0.3% in Dec to 1.6% in Mar. On top of this, the restructured book also increased from 0.8% in Dec to 1.9% in Mar (Management had earlier guided for Rstd. Book to increase to 1.5% by March). Thus the *stressed pool (0-90 DPD + Restd. Book) increased from 1.1% in Dec to 3.5% in Mar.*
• Against the above stressed pool of 3.5%, the bank already holds 1.1% as provisions. Thus FY22 credit cost is likely to be slightly higher at 1.0% compared to our earlier assumption/pre-covid levels of 0.7%.

*Operating Performance remains stable*
• Disbursements grew by 48% YoY & 14% QoQ in Q4FY21 at Rs. 7421 Cr, the highest levels ever. Demand had normalized in most segments during Q4FY21; however management cautioned that demand in April month has come off due to second wave of Covid and they are cautious regarding growth in near term.
• AUM stands at Rs. 35,356 Cr (+14% YoY, +6% QoQ).
• Bank grew its housing book at 144% this year (4% of total) on a low base and this will continue to grow at the fastest rate among all segments.
• Deposits +38% YoY, +21% QoQ. CASA ratio is at 21% vs 22% QoQ & 15% YoY. Average Savings Ac. Rate is 5.7%. Also deposits as % of total borrowings has increased to 84% against 72% in FY20 which is encouraging.
• Opex grew by 32% YoY with branch network expanding to 729 vs 714 QoQ and 568 YoY. Employee growth was higher at 65% YoY due to a one off ESOP expense of Rs. 59 Cr. Excluding this one off, the total opex would have increased by 18%.
• *Cost/Income will remain elevated as the bank will continue to be in investment mode in branches, employees, branding. It will remain in 50-55% over net 2 years.*

Share is trading at P/E 33.3x FY22E EPS and trailing P/Adj BV of 6.5x


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*Eicher Motors (M&HCV) April 2021 Sales – Below Expectation*
M&HCV came at 2145 units vs expectation of 4707 units, YoY 85 units (2424%) and MoM 7037 units (-70%)
Sales declined by 54% over April 2019

*SML Isuzu April 2021 Sales - Declined*
(Nirmal Bang Retail Research)
Sales came at 305 vs YoY 0 units and MoM 952 units (-68%)
Sales declined by 78% over April 2019

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*Mahindra & Mahindra April 2021 Sales – Above Expectations*
(Nirmal Bang Retail Research)
Auto Sector came at 36437 units vs expectation of 32183 units, YoY 733 units (4871%) and MoM 40403 units (-10%)
Tractors came at 27523 units vs expectation of 26000 units, YoY 4772 units (477%) and MoM 30970 units (-11%)
Total Sales (Auto+Tractors) came at 63960 units vs expectation of 58183 units, YoY 5505 units (1062%) and MoM 71373 units (-10%).
Total Sales (Auto+Tractors) declined by 12% over April 2019


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*Maruti Suzuki April 2021 Sales – In line with expectation*
(Nirmal Bang Retail Research)
Total Sales (Domestic+Exports) came at 159691 units vs expectation of 155652 units, YoY 632 units (25168%) and MoM 167014 units (-4%).
Sales have grown by 11.5% over April 2019.


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*Tata Motors April 2021 Sales – Below expectation*
(Nirmal Bang Retail Research)
Total Domestic CV came at 14435 units vs expectation of 22000 units, YoY 0 units and MoM 36955 units (-61%)
Total Domestic PVs came at 25095 units vs expectation of 26000 units, YoY 0 units and MoM 29654 units (-15%)
Total Domestics Sales came at 39530 units vs expectation of 48000 units, YoY 0 units and MoM 66609 units (-41%)
Total Domestic Sales declined by 7% over April 2019


*Escorts April 2021 Sales – Below Expectation*
(Nirmal Bang Retail Research)
Total Sales came at 6979 units vs expectation of 9788 units, YoY 705 units (890%) and MoM 12337 units (-43%)


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Bulk Deal as on 30-04-21

Andhra Sugar
+ 1.5 Lk @ 391 Vikas Vijaykumar Khemani

Coffe Day
+ 19.14 Lk @ 37.7 Setu Securities Pvt Ltd

Filatex
+ 12.71 Lk @ 92.75 Wheelers Developers Pvt Ltd


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*Paracetamol, azithro raw material cost shoots up, pharma cos worried*

A sharp rise in the price of raw material of key drugs used in the treatment of Covid over the last few weeks has unnerved manufacturers in the state.

Enquiries reveal the rates of active pharmaceutical ingredients (APIs) like paracetamol, ivermectin, doxycycline, azithromycin, maropenem 1 gm, etc., have increased up to 300 per cent.
“Ivermectin has seen a price hike from Rs 17,000 per kg to Rs 58,000 per kg while paracetamol has gone up from Rs 350 per kg to Rs 680 per kg. Similarly, doxycycline has jumped from Rs 6,000 per kg to Rs 12,000 per kg and the price of azithromycin has increased to Rs 11,500 per kg from Rs 8,000 per kg prevailing in the market a few weeks ago, said Yuvraj Chhoker, who runs Tiruvision Medicare in Baddi.
Even packaging material like foil and cartons has registered a price hike of 10 to 20 per cent and empty capsules have become dearer by 30 to 40 per cent. The price of I gram maropenem, another raw material, has increased from Rs 100 to Rs 180 added Chhoker.

“The price of the APIs has increased by as much as 300 per cent ever since the second wave of Covid has erupted. There was no check on the price by the government. Since the price of the medicines manufactured using these ingredients is regulated under the drug price control order, their maximum price cannot be enhanced,” said SL Singla, adviser, Himachal Pradesh Drug Manufacturers Association.

“Azithromycin has gone off the shelf today as its manufacturing has become unviable. More drugs would follow suit if the government doesn’t intervene to either regulate the price of the APIs or to enhance the price of the final product,” claimed Singla.

Drug manufacturers asserted that they had given up their margins in this hour of crisis, but the government had done little to address their representations.
With China suspending cargo flights to India, the manufacturers feared that more trouble was in the offing. A sizeable chunk of the APIs comes from China.

Pharma companies are largely dependent on China for their API requirement. A sizeable decline in imports from China triggered its shortage in the domestic markets since the advent of Covid. The API shortage led to uncertainty in the market, fuelling price hike. Also, there was a scramble to manufacture these drugs due to their burgeoning demand, said a manufacturer.


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SEBI:
Minimum 20% key AMC employee compensation to be in #MututalFund units.


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HDFC AMC**– Q4 FY21 (Audited –Cons)
CMP: 2,865

Total income 545.57 Cr
449.62 Cr (21.52%) YoY | 594.91 Cr (-8.25%) QoQ

Year ending income: 2,202 Cr Vs. 2,143 Cr (2.75%)

Net Profit of 316.1 Cr
249.8 Cr (26.92%) YoY 369.2 Cr (-14.35%) QoQ

Year ending Net profit: 1,326 Cr Vs. 1,262 Cr (5.03%)

EPS (in Rs.) 14.81
11.72 YoY | 17.31 QoQ

Year ending EPS: 62.16 Vs. 59.24

View: Result is below expectation. YoY total income increased and profit also increased but QoQ income and profit both have decreased. Year ending profit increased due to higher other income reported more than INR 200 Cr as compare with FY20.

**Business Updates & Highlights

Quarterly Average Asset under management is INR 4,156 Billions (41% equity oriented) and Closing AUM is INR 3,955 Billions (43% equity oriented) YoY increase of 12% and QoQ increased by 6.7%.

The ratio of equity oriented AUM and non-equity oriented AUM is 41:59 compared to the industry ratio of 41:59 (Quarterly) and closing AUM ratio is 43:57.

Market share closing AUM (Equity Oriented) March 2021 13.8% Vs. 15.3% in March 2020 Vs.14.3% in Dec 2020 therefore declined.

Market share closing AUM (Debt oriented) March 2021 14.4% Vs. 13.5% in March 2020 Vs. 13.4% in Dec 2020 therefore improved in YoY.

The Operating Profit of the company for the year ended was INR 1,399 Cr as compared to INR 1,512 Cr for the year ended March 2020. Therefore decreased by 7.7% in YoY.

FY21 Other Income is higher on MTM gains due to interest rate movement and gains on investments in Essel Group NCDs.

Total Live Accounts stood at 8.86 million as on March 2021 and declined by 5% in YoY.

Board of Directors of the Company at its meeting held on April 27, 2021, inter alia, has recommended a dividend of Rs. 34/- per equity share of Rs. 5/- each of the Company, for the financial year ended March 31, 2021

Financial
ROE and ROCE is around 30.1% and 47% respectively and book value per share is around INR 192 and share is currently trading at 14.7x of its book value. Company is currently trading at annualized PE of around 46 which is good as per Industry benchmark. Promoter holding in the company is around 73.9% which is very strong and stable, FIIs/FPIs and mutual fund holds around 9.4% and 1.1% respectively. Operating cash flow as of March 2021 was INR 1,085 Cr Vs. 1,284 Cr as of March 2020.

Share View: Share price high 3,358 (52 week) and now 2,844. HDFC Asset Management Company Limited (HDFC AMC) is Investment Manager to HDFC Mutual Fund, the largest mutual fund in the country. It has other SEBI licenses viz. PMS / AIF. HDFC AMC has a diversified asset class mix across Equity and Fixed Income/Others.

Long term investor should continue with the company based on the strong clientele and brand HDFC for their long term PF.

Opportunities
It also has a countrywide network of branches (227+ branches) along with a diversified distribution network comprising Banks, Independent Financial Advisors and National Distributors.
Strong online presence - dedicated separate digital platforms distribution partners and customers
FY16 to FY21 CAGR of 38% in electronic transactions, and CAGR of 17% in total transactions
~100 users login in every minute on our portals and ~3 new users on boarded every minute in the last FY.
Operating margin (bps of AAUM) in FY 21 for Q1, Q2, Q3 and Q4 are 34, 37,38 and 37 respectively.

Risk
ROE continuously declined from FY 17: 42.8% to FY 21: 30.1% Vs. 35.6% in March 2020.
HDFC mutual fund share in all AUM is highest as compare to other mutual fund despite this market share continuously declined in YoY and QoQ.
Year ending profit is up due to higher other income report in previous year it was around INR 140 Cr Vs. 349 Cr in this FY21.

Disclaimer: Views are shared based on market research and study and personal in nature. Others can take the different view and opinions. Please do the thoroughly study before enter or exit the shares.
RD Stock (“High Returns with Low Risk is the Key”)


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*GATWAY DISTIPARK Q4*

Net Profit Up 300 % to Rs 46 cr (YOY)

Revenue Up 17 % to Rs 351 cr

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JSPL To Divest Jindal Power To Promoter Group Entity For Rs 3,015 Crore

Jindal Steel & Power Ltd. will divest its coal-fired power business to its promoter group entity as part of its strategic plan to pare debt, reduce emissions and focus on domestic steel business.

The Naveen Jindal-led steelmaker has accepted a binding offer from Worldone Pvt. to divest its 96.42% stake in subsidiary Jindal Power Ltd., according to an exchange filing. The equity value is an all-cash offer of Rs 3,015 crore for the stake sold, including 3,400-megawatt coal-fired power plants in Chhattisgarh and other non-core assets owned by Jindal Power.

To be sure, Naveen Jindal, chairman of the board and a promoter of JSPL, along with his relatives, hold the majority equity share capital of Worldone.

The long stop date for completion of the proposed sale is 12 months. The deal, however, is subject to approval from shareholders of JSPL, lenders of Jindal Power and JSPL, and such other statutory approvals, consents, permissions, and sanctions as may be necessary in line with the extant relevant guidelines.

“This divestment is in line with our ESG (environmental, social, and governance) objectives to be among the top 10 lowest carbon dioxide emitting steel companies of the world. It’s yet another step towards our vision to reduce debt substantially and create a robust balance sheet for our investors and stakeholders,” VR Sharma, managing director at JSPL, was quoted as saying in the filing.

JSPL’s consolidated net debt stood at Rs 25,621 crore as of December 2020 compared with Rs 28,910 crore witnessed as of September 2020. The steelmaker, according to the filing, aims to reduce carbon footprint by almost 50%.

Besides, JSPL, according to Sharma, will be a key growth driver in the Indian steel industry and will now focus on expanding its upcoming Angul steel plant from 6 MTPA to 12 MTPA. “Infrastructure spending in India is bound to grow exponentially and JSPL is fully aligned with Government of India’s vision of achieving 300 MTPA steel production by 2030.”

Jindal Power’s Financials

Total income of Jindal Power for the nine months ended Dec. 31, 2020 stood at Rs 3,853.07 crore, constituting 13.95% of the consolidated turnover of JSPL. Its net worth included in the consolidated net worth of JSPL for the same period was Rs 9,882.70 crore.

View: Negative news for JSPL as valuation seems to be low earlier quoted around 5K Cr


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