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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.
*Outlook and valuation*: The bank has sharpened organizational structure on separate operational team for Assets and liabilities. The bank has clearly defined product and distribution structure, segregation of underwriting and business function. After joining as new MD & CEO Mr. Murali Ramakrishnan, The bank has strengthened its team of product experts to head each business and support verticals on large scale. The bank is trying to build competency through change in anchor’s DNA. On strong focus on retail asset, the bank revamp its existing retail products suits of HL, LAP, PL, Credit Card with better delivery, pricing and quality. Multiple retail products like LAS, SBL, IPO Funding, Dealer Funding, Tractor funding etc. to be launched in phases. The bank will continue the strategy of building low cost CASA book, focus on increasing gold loans, improve NRI share of deposits, improving cost efficiencies and improve asset quality by focusing on building granular advances book through personal, agri and business segments. On profitability side, the bank’s target to deliver RoA and RoE of 1.0%+ and 13%+ respectively by 2024. At CMP of 11, bank trades at 0.4x FY21 BV 28 and at 0.7x FY21 ABV of 15.
*South Indian Bank Q4FY21 Result and Concall Highlight*
*The bank is on course of its 6C strategy of profitability through quality credit growth.*
• The bank successfully raised amount of ₹2.4bn of equity capital in Q4FY21, out of total target amount of ₹7.5bn. CRAR improved to 15.4% in FY21 from 13.4% in FY20.
• On the competency building through quality employee strength, the bank is now equipped with mix of internal and external talent as business heads. The experienced domain experts of key products like Credit, Operations, HL, PL, treasury and BIU has been on boarded from industry. Training programs is being developed across employee level.
• Customer focus approach is one the key strategy of the bank. The bank will have dedicated asset class product desk at branch level. On technology side, AI-enabled chatboats, Video KYC for account opening and Digital underwriting will improve customer experiences.
• The bank will also work to improve Cost to Income like centralized payment system, Set up non-financial subsidiary for outsourcing, ATM rationalization initiative etc.
• To avoid fraudulent activities, compliance culture has been reinforcing in all communication with employees.
*Advances & Deposits*
• Gross loan book stood at ₹594.2bn, in which Corporate, Personal, Business and Agriculture loan were at 25%, 25%, 33% and 17% respectively as on 31st March 21.
• Net advance stood at ₹581bn down by 10%yoy and 6%qoq.
• Gold loan book growth continued its robust trend and stood at ₹90bn against ₹78bn as on Q4FY20. LTV was at 77%. Separate Vertical Head for Gold business driven through distribution structure. Few fintech collaboration is likely to finalize to fuel the growth of this segment.
• The total deposits stood at ₹827bn as on 31st march 21. CASA improved to 29.7% as on 31st March 21 against 25% in FY20.
*Asset Quality*
• As on 31st March 2021, the GNPA and NNPA was at 6.97% and 4.71% respectively against the proforma GNPA and NNPA of 7.27% and 4.21% at the end of Q3FY21.
• Total slippages were at ₹21.2bn during the quarter, which is within the banks guidance of within 25bn during FY21.
• Onetime restructuring due to COVID-19 was ₹3.5bn, in which Business Loan, Corporate and Personal was ₹2.56bn, ₹0.8bn and ₹0.2bn respectively. Better than expected experience in terms of OTR request, as the bank was expected ~₹6bn of restructuring under Resolution framework 2.0.
• Total Std Rest Advances stood at ₹12.8bn as on Q4FY21.
• The Outstanding SR stood at ₹11.2bn against which amount of ₹6.3 has been provisioned. Amount of ₹1.8bn of SR has been redeemed during the quarter.
• Provision coverage ratio (excl Write off) was at 34%. The bank has target to improve the ratio to 38% by end of FY22.
• Collection efficiency stood at 91% in month of March 21. In month of Jan 21 and Feb 21 were at 98% and 95% respectively.
*Capital Adequacy*
• CRAR at the end of Q4FY21 stood at 15.42% with Tier-1 ratio 12.79% Out of which CET-1 ratio was at 11.73% against 14.47%/ 11.55%/ 10.54% respectively as on 31st December 21.
• RWA was at ₹472bn against ₹496bn as on 31st Dec 21. The bank has raised ₹2.4bn in March 21 through Marquee Investors and the balance amount ₹5.1bn of equity capital will be raised by March 22.
*Profit & Loss*
• The bank has reported profit of ₹70mn against loss of ₹0.9bn during Q3FY21 and ₹1.44bn during Q4FY20.
• NII was at ₹5.6bn for the quarter.
• NIM was at 2.61% for the quarter. NIM for FY21 was at 2.71%.
• During the quarter Yield on Advances and Cost of Deposits were at 8.76% and 5.22% respectively.
• Non-Interest Income was at ₹3.9bn during the quarter. Cash recovery of amount ~₹1bn from 1 large account during the quarter.
• Cost to Income was 55% for FY21.
• The bank has total 884 branches as on 31st match 21 against 877 as on 31st December Q3FY21. On the ATM rationalization initiative to cut down cost, the bank has reduced to 1315 ATMs from 1443 ATMs at the end of Q3FY21.
*The bank is on course of its 6C strategy of profitability through quality credit growth.*
• The bank successfully raised amount of ₹2.4bn of equity capital in Q4FY21, out of total target amount of ₹7.5bn. CRAR improved to 15.4% in FY21 from 13.4% in FY20.
• On the competency building through quality employee strength, the bank is now equipped with mix of internal and external talent as business heads. The experienced domain experts of key products like Credit, Operations, HL, PL, treasury and BIU has been on boarded from industry. Training programs is being developed across employee level.
• Customer focus approach is one the key strategy of the bank. The bank will have dedicated asset class product desk at branch level. On technology side, AI-enabled chatboats, Video KYC for account opening and Digital underwriting will improve customer experiences.
• The bank will also work to improve Cost to Income like centralized payment system, Set up non-financial subsidiary for outsourcing, ATM rationalization initiative etc.
• To avoid fraudulent activities, compliance culture has been reinforcing in all communication with employees.
*Advances & Deposits*
• Gross loan book stood at ₹594.2bn, in which Corporate, Personal, Business and Agriculture loan were at 25%, 25%, 33% and 17% respectively as on 31st March 21.
• Net advance stood at ₹581bn down by 10%yoy and 6%qoq.
• Gold loan book growth continued its robust trend and stood at ₹90bn against ₹78bn as on Q4FY20. LTV was at 77%. Separate Vertical Head for Gold business driven through distribution structure. Few fintech collaboration is likely to finalize to fuel the growth of this segment.
• The total deposits stood at ₹827bn as on 31st march 21. CASA improved to 29.7% as on 31st March 21 against 25% in FY20.
*Asset Quality*
• As on 31st March 2021, the GNPA and NNPA was at 6.97% and 4.71% respectively against the proforma GNPA and NNPA of 7.27% and 4.21% at the end of Q3FY21.
• Total slippages were at ₹21.2bn during the quarter, which is within the banks guidance of within 25bn during FY21.
• Onetime restructuring due to COVID-19 was ₹3.5bn, in which Business Loan, Corporate and Personal was ₹2.56bn, ₹0.8bn and ₹0.2bn respectively. Better than expected experience in terms of OTR request, as the bank was expected ~₹6bn of restructuring under Resolution framework 2.0.
• Total Std Rest Advances stood at ₹12.8bn as on Q4FY21.
• The Outstanding SR stood at ₹11.2bn against which amount of ₹6.3 has been provisioned. Amount of ₹1.8bn of SR has been redeemed during the quarter.
• Provision coverage ratio (excl Write off) was at 34%. The bank has target to improve the ratio to 38% by end of FY22.
• Collection efficiency stood at 91% in month of March 21. In month of Jan 21 and Feb 21 were at 98% and 95% respectively.
*Capital Adequacy*
• CRAR at the end of Q4FY21 stood at 15.42% with Tier-1 ratio 12.79% Out of which CET-1 ratio was at 11.73% against 14.47%/ 11.55%/ 10.54% respectively as on 31st December 21.
• RWA was at ₹472bn against ₹496bn as on 31st Dec 21. The bank has raised ₹2.4bn in March 21 through Marquee Investors and the balance amount ₹5.1bn of equity capital will be raised by March 22.
*Profit & Loss*
• The bank has reported profit of ₹70mn against loss of ₹0.9bn during Q3FY21 and ₹1.44bn during Q4FY20.
• NII was at ₹5.6bn for the quarter.
• NIM was at 2.61% for the quarter. NIM for FY21 was at 2.71%.
• During the quarter Yield on Advances and Cost of Deposits were at 8.76% and 5.22% respectively.
• Non-Interest Income was at ₹3.9bn during the quarter. Cash recovery of amount ~₹1bn from 1 large account during the quarter.
• Cost to Income was 55% for FY21.
• The bank has total 884 branches as on 31st match 21 against 877 as on 31st December Q3FY21. On the ATM rationalization initiative to cut down cost, the bank has reduced to 1315 ATMs from 1443 ATMs at the end of Q3FY21.
Events and Special Situations Weekly
- Rights Issue: Reliance Industries Partly Paid shares (RILPP IN)
- Bonus Debentures: Britannia (BRIT IN)
- Open Offer: Mphasis (MPHL IN)
- Buyback: Infosys (INFO IN)
- Merger: Tata Steel BSL (TATASTL) and TATA (TATA)
- Merger: United Spirits (UNSP IN) & Pioneer Distilleries (PND IN)
- Demerger: Motherson Sumi Systems (MSS IN)
- Delisting: Adani Power (ADANI IN)
- Delisting: Allcargo Logistics (AGLL IN)
- Rights Issue: Reliance Industries Partly Paid shares (RILPP IN)
- Bonus Debentures: Britannia (BRIT IN)
- Open Offer: Mphasis (MPHL IN)
- Buyback: Infosys (INFO IN)
- Merger: Tata Steel BSL (TATASTL) and TATA (TATA)
- Merger: United Spirits (UNSP IN) & Pioneer Distilleries (PND IN)
- Demerger: Motherson Sumi Systems (MSS IN)
- Delisting: Adani Power (ADANI IN)
- Delisting: Allcargo Logistics (AGLL IN)
💥 Upcoming Results💥
📌 Results Monday :
ADF Foods, Balaji Amines, Grasim, IG Petro, JK Paper, Mahanagar Gas, Ramco Cement, Lakshmi Machine
📌 Results Tuesday :
Alkem Labs, Astrazenaca, CAMS, Emami, GATI, Indico Remedies, Thurmax, LUX Industries,
📌 Results Wednesday :
Astra Microwave, BPCL, Bergar Paints, Cummins India, FDC, Gabriel India, Hindustan Foods, JKumar India, Karnatak Bank, LT Foods, Manappuram Finance, V-guard and Pfizer
📌 Results Thursday :
Balrampur Chini, Dixon Tech, Cadila, Eicher Motor, GSFC, Metroplis Healthcare, Jindal Saw, IFB Infra, HEG, Gujarat Pipavav, Sun Pharma, SH Kelker, Redington, RCF, Page Industries, Phoenix Mills, Wockhardt, TTK Healthcare,
📌 Results Friday :
City Union Bank, Delta, On Mobile, NCC, Max Healtcare, M&M, ITDC Cementation, Indian Bank, IPCA Labs, Hinduja Global, Glenmrak and GMM Pfaudler
📌 Results Saturday :
Bank of Baroda, Divi’s Labs, Kaveri Seed and Unichem Labs
📌 Results Monday :
ADF Foods, Balaji Amines, Grasim, IG Petro, JK Paper, Mahanagar Gas, Ramco Cement, Lakshmi Machine
📌 Results Tuesday :
Alkem Labs, Astrazenaca, CAMS, Emami, GATI, Indico Remedies, Thurmax, LUX Industries,
📌 Results Wednesday :
Astra Microwave, BPCL, Bergar Paints, Cummins India, FDC, Gabriel India, Hindustan Foods, JKumar India, Karnatak Bank, LT Foods, Manappuram Finance, V-guard and Pfizer
📌 Results Thursday :
Balrampur Chini, Dixon Tech, Cadila, Eicher Motor, GSFC, Metroplis Healthcare, Jindal Saw, IFB Infra, HEG, Gujarat Pipavav, Sun Pharma, SH Kelker, Redington, RCF, Page Industries, Phoenix Mills, Wockhardt, TTK Healthcare,
📌 Results Friday :
City Union Bank, Delta, On Mobile, NCC, Max Healtcare, M&M, ITDC Cementation, Indian Bank, IPCA Labs, Hinduja Global, Glenmrak and GMM Pfaudler
📌 Results Saturday :
Bank of Baroda, Divi’s Labs, Kaveri Seed and Unichem Labs