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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*Ambuja Cement'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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GST revenue collection for April hits new record high of Rs 1,41,384 crore

https://www.moneycontrol.com/news/business/economy/gst-revenue-collection-for-april-hits-new-record-high-of-rs-141384-crore-6841511.html

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*Can Fin Homes Ltd. -S* | *CMP* Rs. 579 | *M Cap* Rs. 7710 Cr | *52 W H/L* 620/267
(Nirmal Bang Retail Research)
*Result is marginally below expectations* due to decline in NIMs
Asset Quality details are awaited. Proforma GNPA as on Q3 was less than 1% and so it is unlikely to deteriorate.
NII came at Rs. 185.8 Cr, YoY Rs. 188.5 Cr, QoQ Rs. 210.4 Cr
PBP came at Rs. 149.7 Cr vs expectation of Rs. 172.2 Cr, YoY Rs. 159.8 Cr, QoQ Rs. 179.1 Cr
Provision came at Rs. 7.7 Cr vs, YoY Rs. 40.8 Cr, QoQ Rs. 1.6 Cr
Co holds Contingent provision of Rs. 70 Cr (0.3% of AUM)
PAT came at Rs. 102.6 Cr vs expectation of Rs. 112.4 Cr, YoY Rs. 90.9 Cr, QoQ Rs. 131.9 Cr
Loan Book came at Rs. 21892 Cr vs YoY Rs. 20526 Cr, QoQ Rs. 21004 Cr
Quarter EPS is Rs. 7.7
Share is trading at P/E of 15.4x FY22E EPS & 3x trailing P/BV


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*Shriram City Union Finance Ltd. -S* | *CMP* Rs. 1410 | *M Cap* Rs. 9307 Cr | *52 W H/L* 1729/617
(Nirmal Bang Retail Research)
*Result is in-line with expectations*
NII came at Rs. 928 Cr vs expectation of Rs. 922 Cr, YoY Rs. 903 Cr, QoQ Rs. 916 Cr
PBP came at Rs. 552 Cr vs expectation of Rs. 592 Cr, YoY Rs. 514 Cr, QoQ Rs. 560 Cr
Provision came at Rs. 164 Cr vs expectation of Rs. 254 Cr, YoY Rs. 311 Cr, QoQ Rs. 175 Cr
Contingent provision on loan assets as management overlay on account of COVID-19 stood at Rs. 709 Cr (2.4% of AUM)
PAT came at Rs. 282 Cr vs expectation of Rs. 281 Cr, YoY Rs. 153 Cr, QoQ Rs. 280 Cr
AUM came at Rs. 29571 Cr vs YoY Rs. 29085 Cr, QoQ Rs. 28546 Cr
Disbursement came at Rs. 6570 Cr vs YoY Rs. 5416 Cr, QoQ Rs. 6197 Cr
Gross NPA came at Rs. 1876 Cr vs QoQ Rs. 1833 Cr at 6.37% vs QoQ 6.46%
Net NPA came at Rs. 877 Cr vs QoQ Rs. 867 Cr at 3.08% vs QoQ 3.16%
Quarter EPS is Rs. 42.7
Share is trading at P/E of 7.9x FY22E EPS & 1.1x trailing P/BV


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Motherson Sumi Systems receives shareholders approval on Group Restructuring proposal

 

Motherson Sumi received an overwhelming response to the proposed Group Restructuring, as Public shareholders vote “In favour”. The public shareholders (non-promoter) have voted in favour of the proposal with a strong majority, thus paving the way for the successful completion of the proposed restructuring. https://t.me/marketswizard

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