*MONEY TIMES TALK*
_May 23, 2021_
*Escorts* posted over two-fold jump in Q4 NP from Rs.128 cr. to Rs.285.4 cr. (YoY) on strong sale of tractors and construction equipment and FY21 EPS stood at Rs. 92.15, which makes it an excellent buy.
*Cipla* reported a 73% jump in Q4 NP to Rs. 412 cr. on a revenue of Rs. 4606 cr. It is reportedly making drugs to treat the deadly Black fungus. Add.
*Monte Carlo Fashions* had suspended operations due to Covid but has now resumed sales. Its FY21 EPS was good at Rs. 31.98 and a dividend of Rs. 15 has been declared. Add in small quantities.
*An Ahmedabad based analyst recommends to buy BCL Industries Ltd., Central Bank of India, Cochin Minreals Rutile Ltd., Dhunseri Ventures Ltd., Denis Chem Lab, De Nora India Ltd., Hindustan Tin Works Ltd., Ind Swift Laboratories Ltd., Indo Amines Ltd., NCC Ltd., Panasonic Carbon India Co. Ltd., Religare Enterprises and Wockhardt.*
*Aarti Industries*, which had announced a bonus issue, is one of the most valued companies in the specialty chemicals segment. It is reportedly faring extremely well. This investor friendly company must be added.
*Happiest Minds* posted a strong set of Q4FY21 numbers but the share price did not move. Use this opportunity to add before it shoots up.
Linear Alkylbenzene prices are on the rise. The new capacity created by *Rama Phosphate* will add to its growth and profitability. Expected FY21 EPS will be Rs. 20+. Buy.
*HCL Tech* plans to hire 1000 tech professionals in UK to support its clients based there. This signals a rising business trend. Add.
*Natco* has signed agreement with Eli Lilly for its anti-Covid drug in India. Positive for Natco. Add.
*Dr. Reddy’s* will soon make an anti-Covid drug that will reduce oxygen dependency in patients and provide the Company a big business opportunity. Add.
*Gland Pharma’s* Q4 and FY21 results suggest rising profits. The share looks underpriced and can be added for the long term.
*Canara Bank’s* Q4FY21 NP of Rs. 1010 cr. against Q4FY20 loss of Rs. 6567 cr. on the back of lower provisions and raising funds via QIP augurs well. A good long term buy at CMP.
*Astral Ltd.* posted excellent Q4 results as its EPS shot up to Rs. 8.69 from Rs. 2.54 last year. FY21 EPS was a handsome Rs. 20.13 v/s Rs. 12.34 in FY20. The share must be added.
*IndiabullsHousing’s* Q4 profit has doubled to Rs. 276 cr. from Rs. 137 cr. YoY leading to an EPS of Rs. 6.20 v/s Rs. 3.27. An interim dividend of Rs. 9 per share of Rs. 2 has been declared. The share is an excellent investment. Buy.
The recent cyclone Tauktae has blown off the rooftops of many shanties and is a boon in disguise for *Sahyadri Industries* maker of asbestos sheets and other building materials. Its volumes and share price are already rising. Buy.
_May 23, 2021_
*Escorts* posted over two-fold jump in Q4 NP from Rs.128 cr. to Rs.285.4 cr. (YoY) on strong sale of tractors and construction equipment and FY21 EPS stood at Rs. 92.15, which makes it an excellent buy.
*Cipla* reported a 73% jump in Q4 NP to Rs. 412 cr. on a revenue of Rs. 4606 cr. It is reportedly making drugs to treat the deadly Black fungus. Add.
*Monte Carlo Fashions* had suspended operations due to Covid but has now resumed sales. Its FY21 EPS was good at Rs. 31.98 and a dividend of Rs. 15 has been declared. Add in small quantities.
*An Ahmedabad based analyst recommends to buy BCL Industries Ltd., Central Bank of India, Cochin Minreals Rutile Ltd., Dhunseri Ventures Ltd., Denis Chem Lab, De Nora India Ltd., Hindustan Tin Works Ltd., Ind Swift Laboratories Ltd., Indo Amines Ltd., NCC Ltd., Panasonic Carbon India Co. Ltd., Religare Enterprises and Wockhardt.*
*Aarti Industries*, which had announced a bonus issue, is one of the most valued companies in the specialty chemicals segment. It is reportedly faring extremely well. This investor friendly company must be added.
*Happiest Minds* posted a strong set of Q4FY21 numbers but the share price did not move. Use this opportunity to add before it shoots up.
Linear Alkylbenzene prices are on the rise. The new capacity created by *Rama Phosphate* will add to its growth and profitability. Expected FY21 EPS will be Rs. 20+. Buy.
*HCL Tech* plans to hire 1000 tech professionals in UK to support its clients based there. This signals a rising business trend. Add.
*Natco* has signed agreement with Eli Lilly for its anti-Covid drug in India. Positive for Natco. Add.
*Dr. Reddy’s* will soon make an anti-Covid drug that will reduce oxygen dependency in patients and provide the Company a big business opportunity. Add.
*Gland Pharma’s* Q4 and FY21 results suggest rising profits. The share looks underpriced and can be added for the long term.
*Canara Bank’s* Q4FY21 NP of Rs. 1010 cr. against Q4FY20 loss of Rs. 6567 cr. on the back of lower provisions and raising funds via QIP augurs well. A good long term buy at CMP.
*Astral Ltd.* posted excellent Q4 results as its EPS shot up to Rs. 8.69 from Rs. 2.54 last year. FY21 EPS was a handsome Rs. 20.13 v/s Rs. 12.34 in FY20. The share must be added.
*IndiabullsHousing’s* Q4 profit has doubled to Rs. 276 cr. from Rs. 137 cr. YoY leading to an EPS of Rs. 6.20 v/s Rs. 3.27. An interim dividend of Rs. 9 per share of Rs. 2 has been declared. The share is an excellent investment. Buy.
The recent cyclone Tauktae has blown off the rooftops of many shanties and is a boon in disguise for *Sahyadri Industries* maker of asbestos sheets and other building materials. Its volumes and share price are already rising. Buy.
*Crompton Greaves Consumer Electricals Ltd.* | *CMP* Rs. 389 | *M Cap* Rs. 24419 Cr | *52 W H/L* 456/196
(Nirmal Bang Retail Research)
*Result ahead of Expectation*
Revenue from Operations came at Rs. 1522.1 Cr (12.9% QoQ, 48.3% YoY) vs expectation of Rs. 1384.9 Cr, QoQ Rs. 1348.2 Cr, YoY Rs. 1026.3 Cr
EBIDTA came at Rs. 228 Cr (14% QoQ, 61.4% YoY) vs expectation of Rs. 206.1 Cr, QoQ Rs. 200.1 Cr, YoY Rs. 141.2 Cr
EBITDA Margin came at 15% vs expectation of 14.9%, QoQ 14.8%, YoY 13.8%
Adj. PAT came at Rs. 249.1 Cr vs expectation of Rs. 153.2 Cr, QoQ Rs. 151.1 Cr, YoY Rs. 102.1 Cr
Quarter EPS is Rs. 4
Share is trading at P/E of 40.4x FY22E EPS
(Nirmal Bang Retail Research)
*Result ahead of Expectation*
Revenue from Operations came at Rs. 1522.1 Cr (12.9% QoQ, 48.3% YoY) vs expectation of Rs. 1384.9 Cr, QoQ Rs. 1348.2 Cr, YoY Rs. 1026.3 Cr
EBIDTA came at Rs. 228 Cr (14% QoQ, 61.4% YoY) vs expectation of Rs. 206.1 Cr, QoQ Rs. 200.1 Cr, YoY Rs. 141.2 Cr
EBITDA Margin came at 15% vs expectation of 14.9%, QoQ 14.8%, YoY 13.8%
Adj. PAT came at Rs. 249.1 Cr vs expectation of Rs. 153.2 Cr, QoQ Rs. 151.1 Cr, YoY Rs. 102.1 Cr
Quarter EPS is Rs. 4
Share is trading at P/E of 40.4x FY22E EPS
*GODREJ INDUSTRIES LTD.* | *CMP* Rs. 564 | *M Cap* Rs. 18980 Cr | *52 W H/L* 580/245
(Nirmal Bang Retail Research)
*Result declining*
Revenue from Operations came at Rs. 547.6 Cr (8.7% QoQ, 17.5% YoY) vs QoQ Rs. 503.7 Cr, YoY Rs. 466.2 Cr
EBIDTA came at Rs. 24 Cr (-14.1% QoQ, -59.2% YoY) vs QoQ Rs. 27.9 Cr, YoY Rs. 58.7 Cr
EBITDA Margin came at 4.4% vs QoQ 5.5%, YoY 12.6%
Adj. PAT came at Rs. -41.5 Cr vs QoQ Rs. -34.9 Cr, YoY Rs. 1.7 Cr
Quarter EPS is Rs. -1.2
(Nirmal Bang Retail Research)
*Result declining*
Revenue from Operations came at Rs. 547.6 Cr (8.7% QoQ, 17.5% YoY) vs QoQ Rs. 503.7 Cr, YoY Rs. 466.2 Cr
EBIDTA came at Rs. 24 Cr (-14.1% QoQ, -59.2% YoY) vs QoQ Rs. 27.9 Cr, YoY Rs. 58.7 Cr
EBITDA Margin came at 4.4% vs QoQ 5.5%, YoY 12.6%
Adj. PAT came at Rs. -41.5 Cr vs QoQ Rs. -34.9 Cr, YoY Rs. 1.7 Cr
Quarter EPS is Rs. -1.2
*Amara Raja Batteries Ltd.* | *CMP* Rs. 791 | *M Cap* Rs. 13505 Cr | *52 W H/L* 1026/536
(Nirmal Bang Retail Research)
*Result inline with expectation*
Revenue from Operations came at Rs. 2102.7 Cr (7.3% QoQ, 33% YoY) vs expectation of Rs. 1955.2 Cr, QoQ Rs. 1960.1 Cr, YoY Rs. 1581.4 Cr
EBIDTA came at Rs. 316.5 Cr (3.3% QoQ, 30.2% YoY) vs expectation of Rs. 296.8 Cr, QoQ Rs. 306.4 Cr, YoY Rs. 243.2 Cr
EBITDA Margin came at 15.1% vs expectation of 15.2%, QoQ 15.6%, YoY 15.4%
Adj. PAT came at Rs. 189.5 Cr vs expectation of Rs. 170.2 Cr, QoQ Rs. 193.2 Cr, YoY Rs. 136.7 Cr
Quarter EPS is Rs. 11.1
Share is trading at P/E of 18.1x FY22E EPS
(Nirmal Bang Retail Research)
*Result inline with expectation*
Revenue from Operations came at Rs. 2102.7 Cr (7.3% QoQ, 33% YoY) vs expectation of Rs. 1955.2 Cr, QoQ Rs. 1960.1 Cr, YoY Rs. 1581.4 Cr
EBIDTA came at Rs. 316.5 Cr (3.3% QoQ, 30.2% YoY) vs expectation of Rs. 296.8 Cr, QoQ Rs. 306.4 Cr, YoY Rs. 243.2 Cr
EBITDA Margin came at 15.1% vs expectation of 15.2%, QoQ 15.6%, YoY 15.4%
Adj. PAT came at Rs. 189.5 Cr vs expectation of Rs. 170.2 Cr, QoQ Rs. 193.2 Cr, YoY Rs. 136.7 Cr
Quarter EPS is Rs. 11.1
Share is trading at P/E of 18.1x FY22E EPS
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*Multi Commodity Exchange Of India Ltd.* | *CMP* Rs. 1625 | *M Cap* Rs. 8287 Cr | *52 W H/L* 1875/1097
(Nirmal Bang Retail Research)
*Result inline*
Revenue from Operations came at Rs. 97 Cr (-3.9% QoQ, -7.9% YoY) vs expectation of Rs. 99.9 Cr, QoQ Rs. 100.9 Cr, YoY Rs. 105.3 Cr
EBIDTA came at Rs. 44.2 Cr (-9.1% QoQ, 8.7% YoY) vs expectation of Rs. 46 Cr, QoQ Rs. 48.7 Cr, YoY Rs. 40.7 Cr
EBITDA Margin came at 45.6% vs expectation of 46.1%, QoQ 48.2%, YoY 38.7%
Adj. PAT came at Rs. 38.4 Cr vs expectation of Rs. 50 Cr, QoQ Rs. 71.8 Cr, YoY Rs. 65.5 Cr (QoQ and YoY PAT is lower on account of negative tax and Higher Other Income)
Quarter EPS is Rs. 7.5
Share is trading at P/E of 32.9x FY22E EPS
(Nirmal Bang Retail Research)
*Result inline*
Revenue from Operations came at Rs. 97 Cr (-3.9% QoQ, -7.9% YoY) vs expectation of Rs. 99.9 Cr, QoQ Rs. 100.9 Cr, YoY Rs. 105.3 Cr
EBIDTA came at Rs. 44.2 Cr (-9.1% QoQ, 8.7% YoY) vs expectation of Rs. 46 Cr, QoQ Rs. 48.7 Cr, YoY Rs. 40.7 Cr
EBITDA Margin came at 45.6% vs expectation of 46.1%, QoQ 48.2%, YoY 38.7%
Adj. PAT came at Rs. 38.4 Cr vs expectation of Rs. 50 Cr, QoQ Rs. 71.8 Cr, YoY Rs. 65.5 Cr (QoQ and YoY PAT is lower on account of negative tax and Higher Other Income)
Quarter EPS is Rs. 7.5
Share is trading at P/E of 32.9x FY22E EPS
*Sarda Energy & Minerals Ltd.* | *CMP* Rs. 533 | *M Cap* Rs. 1921 Cr | *52 W H/L* 614/129
(Nirmal Bang Retail Research)
*Result improveing*
Revenue from Operations came at Rs. 699.2 Cr (15.8% QoQ, 59.6% YoY) vs QoQ Rs. 603.9 Cr, YoY Rs. 438.1 Cr
EBIDTA came at Rs. 184.3 Cr (29% QoQ, 139.6% YoY) vs QoQ Rs. 142.9 Cr, YoY Rs. 76.9 Cr
EBITDA Margin came at 26.4% vs QoQ 23.7%, YoY 17.6%
Adj. PAT came at Rs. 145.3 Cr vs QoQ Rs. 115.6 Cr, YoY Rs. -32.3 Cr
Quarter EPS is Rs. 40.3
Share is trading at P/E of 4.9x TTM EPS
(Nirmal Bang Retail Research)
*Result improveing*
Revenue from Operations came at Rs. 699.2 Cr (15.8% QoQ, 59.6% YoY) vs QoQ Rs. 603.9 Cr, YoY Rs. 438.1 Cr
EBIDTA came at Rs. 184.3 Cr (29% QoQ, 139.6% YoY) vs QoQ Rs. 142.9 Cr, YoY Rs. 76.9 Cr
EBITDA Margin came at 26.4% vs QoQ 23.7%, YoY 17.6%
Adj. PAT came at Rs. 145.3 Cr vs QoQ Rs. 115.6 Cr, YoY Rs. -32.3 Cr
Quarter EPS is Rs. 40.3
Share is trading at P/E of 4.9x TTM EPS
https://thebulletin.org/2021/05/the-origin-of-covid-did-people-or-nature-open-pandoras-box-at-wuhan/
Bulletin of the Atomic Scientists
The origin of COVID: Did people or nature open Pandora’s box at Wuhan?
If the case that SARS2 originated in a lab is so substantial, why isn’t this more widely known? As is now obvious, there are many people who have reason not to talk about it.
ABB Power Product CMP 1772
APPSIL provides product, system, software and service solutions across the entire power value chain. The company’s portfolio includes an extensive range of high-voltage products, transformers, grid automation products, and power quality products and systems.
Financial
- ROE and ROCE is around 14% and 19% respectively (Decent)
- P/BV: 8.1x, Face Value: INR 2, Mcap: INR 7.5K Crs
- Forward PE - 50 which is average as per industry benchmark.
- Q1FY21 topline was around INR 1,016 Crs Vs. 811 Crs in Q1FY20 Vs. 1,044 Crs in Q4FY20 therefore up by 25.2% and declined by 2.6% in QoQ.
- FY20 topline was around INR 3,420 Cr Vs. 3,236 Cr in FY19 (Dec ended FY20 Vs. FY19) therefore up by 5.9% in YoY despite Q2FY20 was washed out.
- Q1FY21 bottomline was around INR 39 Cr Vs. 29 Cr in Q1FY20 Vs. 55 Cr in Q4FY20 therefore up by 34.4% in YoY and declined by 29% in QoQ.
- FY20 bottomline was around INR 100 Cr Vs. 165 Cr in FY19 therefore declined by 39.3% in YoY.
- Company is virtually debt free and reduced the signficiantly debt from 348 Cr to 39 Cr now almost 300 Crs paid off.
- Small equity capital is INR 8 Cr which promoters hold around 75% which is very strong and stable, FIIs hold around 4.9%, LIC hold around 4.5% and other DIIs hold around 1.6% in the company.
Opportunities
- Strong order book as of Dec 2020 which was around INR 3,217 Cr and Q1FY21 received new orders worth of INR 849 Cr.
- Operating EBITDA in Q4FY21 was around INR 75.9 Cr Vs. 65.9 Cr in Q4FY20 up by 34% in YoY.
- APPSIL has a strong market position in the power grids equipment and automation solutions segment. The company has an established track record in this space and has also executed various large scale projects in India over the years (as part of ABB India Ltd). Furthermore, APPSIL’s clientele include reputed players across utilities, industries, and transportation and infrastructure sectors, such as Power Grid Corporation of India Ltd, JSW energy etc.
- Renewables (Solar + Wind) 1 GW of cumulative solar orders catered for in Q1-21 with major order from JSW
- Highly diversifed revenue strategy Railways and metro, AI tech in Data Centres 5G Tech. Offering technology for future energy system.
- Electric Mobility: Large scale EV charging.
- Debt free company with strong operating cash flow as of Dec 2020.
- Strong Promoter Hitachi ABB power and hold with 75% stake in the company. APPSIL commenced using Hitachi brand identity for all business purposes and for external communication. Furthermore, the company has access to all of Hitachi’s group-level resources.
Concern/Risk
- Due to govt orders realization is very weak and its around more than 5 months.
- After govt order restriction on use of Oxygen for industrial purpose. Q2FY21 can be more challenging.
- Profitability is susceptible to downturn in demand and structural issues and volatility in the power sector. Operating profit margin is also single digit and around 8% due to intense competition and bidding based govt projects.
View: Share price high 1860 and now 1770. Share is in bullish zone and next short term target can be 1850/1900 with SL 1650. Any correction will be good opportunity to add for mid to long term.
APPSIL provides product, system, software and service solutions across the entire power value chain. The company’s portfolio includes an extensive range of high-voltage products, transformers, grid automation products, and power quality products and systems.
Financial
- ROE and ROCE is around 14% and 19% respectively (Decent)
- P/BV: 8.1x, Face Value: INR 2, Mcap: INR 7.5K Crs
- Forward PE - 50 which is average as per industry benchmark.
- Q1FY21 topline was around INR 1,016 Crs Vs. 811 Crs in Q1FY20 Vs. 1,044 Crs in Q4FY20 therefore up by 25.2% and declined by 2.6% in QoQ.
- FY20 topline was around INR 3,420 Cr Vs. 3,236 Cr in FY19 (Dec ended FY20 Vs. FY19) therefore up by 5.9% in YoY despite Q2FY20 was washed out.
- Q1FY21 bottomline was around INR 39 Cr Vs. 29 Cr in Q1FY20 Vs. 55 Cr in Q4FY20 therefore up by 34.4% in YoY and declined by 29% in QoQ.
- FY20 bottomline was around INR 100 Cr Vs. 165 Cr in FY19 therefore declined by 39.3% in YoY.
- Company is virtually debt free and reduced the signficiantly debt from 348 Cr to 39 Cr now almost 300 Crs paid off.
- Small equity capital is INR 8 Cr which promoters hold around 75% which is very strong and stable, FIIs hold around 4.9%, LIC hold around 4.5% and other DIIs hold around 1.6% in the company.
Opportunities
- Strong order book as of Dec 2020 which was around INR 3,217 Cr and Q1FY21 received new orders worth of INR 849 Cr.
- Operating EBITDA in Q4FY21 was around INR 75.9 Cr Vs. 65.9 Cr in Q4FY20 up by 34% in YoY.
- APPSIL has a strong market position in the power grids equipment and automation solutions segment. The company has an established track record in this space and has also executed various large scale projects in India over the years (as part of ABB India Ltd). Furthermore, APPSIL’s clientele include reputed players across utilities, industries, and transportation and infrastructure sectors, such as Power Grid Corporation of India Ltd, JSW energy etc.
- Renewables (Solar + Wind) 1 GW of cumulative solar orders catered for in Q1-21 with major order from JSW
- Highly diversifed revenue strategy Railways and metro, AI tech in Data Centres 5G Tech. Offering technology for future energy system.
- Electric Mobility: Large scale EV charging.
- Debt free company with strong operating cash flow as of Dec 2020.
- Strong Promoter Hitachi ABB power and hold with 75% stake in the company. APPSIL commenced using Hitachi brand identity for all business purposes and for external communication. Furthermore, the company has access to all of Hitachi’s group-level resources.
Concern/Risk
- Due to govt orders realization is very weak and its around more than 5 months.
- After govt order restriction on use of Oxygen for industrial purpose. Q2FY21 can be more challenging.
- Profitability is susceptible to downturn in demand and structural issues and volatility in the power sector. Operating profit margin is also single digit and around 8% due to intense competition and bidding based govt projects.
View: Share price high 1860 and now 1770. Share is in bullish zone and next short term target can be 1850/1900 with SL 1650. Any correction will be good opportunity to add for mid to long term.