*Deepak Spinners Ltd: TP 200*
*Can spurt like suryalata (120 to 200 in 2 weeks)*
BV: ₹215🔥
Q3EPS: ₹13
Decent size company: Sales of ₹461 Cr for FY20 (even though bad year for textiles)
Average volumes of 40,000 per day in last 1 week (earlier average volumes were 3-5k per day). This suggests magnificent numbers coming
*Q4EEPS: ₹15-16*💯💯 (conservative estimate)
*FY22 EEPS: ₹48* 😱😱(Cheapest stock in synthetic yarn)
Read our detailed report sent earlier
*Can spurt like suryalata (120 to 200 in 2 weeks)*
BV: ₹215🔥
Q3EPS: ₹13
Decent size company: Sales of ₹461 Cr for FY20 (even though bad year for textiles)
Average volumes of 40,000 per day in last 1 week (earlier average volumes were 3-5k per day). This suggests magnificent numbers coming
*Q4EEPS: ₹15-16*💯💯 (conservative estimate)
*FY22 EEPS: ₹48* 😱😱(Cheapest stock in synthetic yarn)
Read our detailed report sent earlier
🎯 CHEAPEST ENGINEERING TWINS
*Miles ahead series #5 & #6*
Both stocks at BSE Don’t select, but go for both! (Snapshots below, detailed report soon)
________________________________
*1. KPT Industries:*
CMP: 138
BSE 505299
Target: ₹220
Company is engaged in the business of manufacturing of Electrical Power Tools and Roots (Positive Displacement) Blowers/Exhausters for a wide variety of applications, Electric Commercial Vehicles.
🎯Company has recently completed our major *expansion* project, to increase the production to *1 millions motors*.
•Market cap: 41cr vs 9m sales 80cr
•Equity just 1.70 Cr !! (Stock will fly like a rocket)
•FY22EEPS: ₹19 (stock trading at just 7 PE)
• International presence
________________________________
*2. Hindustan Hardy: CMP 165*
BSE 505893
Target: ₹312
Sector: *High precision* components/ Speciality engineering
✅Stock can zoom like Pix Transmission which has rallied from 100 to 450+ levels
•Market cap: 25cr vs FY20 sales of 39cr
•Q2+Q3 EPS: ₹11.5
•FY22EEPS: ₹29
•Stocks trading at just 5.5 forward PE!🌟
*Miles ahead series #5 & #6*
Both stocks at BSE Don’t select, but go for both! (Snapshots below, detailed report soon)
________________________________
*1. KPT Industries:*
CMP: 138
BSE 505299
Target: ₹220
Company is engaged in the business of manufacturing of Electrical Power Tools and Roots (Positive Displacement) Blowers/Exhausters for a wide variety of applications, Electric Commercial Vehicles.
🎯Company has recently completed our major *expansion* project, to increase the production to *1 millions motors*.
•Market cap: 41cr vs 9m sales 80cr
•Equity just 1.70 Cr !! (Stock will fly like a rocket)
•FY22EEPS: ₹19 (stock trading at just 7 PE)
• International presence
________________________________
*2. Hindustan Hardy: CMP 165*
BSE 505893
Target: ₹312
Sector: *High precision* components/ Speciality engineering
✅Stock can zoom like Pix Transmission which has rallied from 100 to 450+ levels
•Market cap: 25cr vs FY20 sales of 39cr
•Q2+Q3 EPS: ₹11.5
•FY22EEPS: ₹29
•Stocks trading at just 5.5 forward PE!🌟
Rain industries CY21 estimate by DenofWealth
No one understands Rain better than DoW
TP Rs 450
Q1CY21EPS Rs 6.31(actual)
Q2CY21E EPS Rs 7.50
Q3CY21,E EPS Rs 8
Q4CY21E EPS Rs 9
_*CY21EEPS Rs 30-31*_
Q2: onwards EPS should be HIGHER:
🎯 Better realisation in CPC/CTP as prices rose further in March
🎯 Commercial production and despatches started from German plant
🎯SEZ new plant of CPC can commence operations in H2
BE SHAREHOLDER OF BIGGEST MFR OF CARBON PRODUCTS IN THE WORLD
No one understands Rain better than DoW
TP Rs 450
Q1CY21EPS Rs 6.31(actual)
Q2CY21E EPS Rs 7.50
Q3CY21,E EPS Rs 8
Q4CY21E EPS Rs 9
_*CY21EEPS Rs 30-31*_
Q2: onwards EPS should be HIGHER:
🎯 Better realisation in CPC/CTP as prices rose further in March
🎯 Commercial production and despatches started from German plant
🎯SEZ new plant of CPC can commence operations in H2
BE SHAREHOLDER OF BIGGEST MFR OF CARBON PRODUCTS IN THE WORLD
*BUY Panchmahal Steel* for mid to long term
Dont miss. Can cross 100 soon
SL 65
Co makes special steel and wires used in engg and power plants
Expecting Q4 to be lifetime best
Expecting atleast 100% Growth in PAT QoQ
Dont miss. Can cross 100 soon
SL 65
Co makes special steel and wires used in engg and power plants
Expecting Q4 to be lifetime best
Expecting atleast 100% Growth in PAT QoQ
_Real wealth is created by Investing ahead of the Street_
Q4FY21 result of JK Paper indicate that SAPPL will give AWESOME Q4 and stock can be 500 soon
*Shree Ajit Pulp & Paper Ltd (SAPPL)* TP 600
Tdg @ 3.5xFY22EEPS
✅Will flare up like SAGARSOFT
A smallcap stock with a very tiny market cap in the booming Kraft paper industry with excellent track record
*Huge 16500 tonne production capacity* .
Stock is bound to get Investors fancy once Q4 results are declared.
_*Manufacturing only Kraft Paper (prices up 50% in Q4)*_
Consistently good track record. Available at less than 1xP/B
FY20 EPS was 38
Q3FY21 EPS alone was Rs. 20. Q4 to be even better. (Can it get any cheaper?)
Possible to report 80-85 EPS for FY22
Low floating stock. Stock will be back-to-back UC once Q4 declared. Trading volume will increase as stock price goes up
Possible 600 in 6 months, subject to mkt conditions
Wont find paper stock trading so cheap.
Buy now to stay ahead of street as stock price is bound to flare up very quickly.
Q4FY21 result of JK Paper indicate that SAPPL will give AWESOME Q4 and stock can be 500 soon
*Shree Ajit Pulp & Paper Ltd (SAPPL)* TP 600
Tdg @ 3.5xFY22EEPS
✅Will flare up like SAGARSOFT
A smallcap stock with a very tiny market cap in the booming Kraft paper industry with excellent track record
*Huge 16500 tonne production capacity* .
Stock is bound to get Investors fancy once Q4 results are declared.
_*Manufacturing only Kraft Paper (prices up 50% in Q4)*_
Consistently good track record. Available at less than 1xP/B
FY20 EPS was 38
Q3FY21 EPS alone was Rs. 20. Q4 to be even better. (Can it get any cheaper?)
Possible to report 80-85 EPS for FY22
Low floating stock. Stock will be back-to-back UC once Q4 declared. Trading volume will increase as stock price goes up
Possible 600 in 6 months, subject to mkt conditions
Wont find paper stock trading so cheap.
Buy now to stay ahead of street as stock price is bound to flare up very quickly.
*Correction* *Somany Home Innovation Ltd.* | *CMP* Rs. 340 | *M Cap* Rs. 2458 Cr | *52 W H/L* 342/63
(Nirmal Bang Retail Research)
*Result improved*
Revenue from Operations came at Rs. 613.3 Cr (11.2% QoQ, 68.2% YoY) vs QoQ Rs. 551.4 Cr, YoY Rs. 364.6 Cr
EBIDTA came at Rs. 64.6 Cr (16.2% QoQ, 396.5% YoY) vs QoQ Rs. 55.6 Cr, YoY Rs. 13 Cr
EBITDA Margin came at 10.5% vs QoQ 10.1%, YoY 3.6%
Adj. PAT came at Rs. 22.3 Cr vs QoQ Rs. 37.7 Cr, YoY Rs. 2.3 Cr Lower PT QoQ is on account of higher tax
Quarter EPS is Rs. 3.1
Share is trading at P/E of 44.8x TTM EPS
(Nirmal Bang Retail Research)
*Result improved*
Revenue from Operations came at Rs. 613.3 Cr (11.2% QoQ, 68.2% YoY) vs QoQ Rs. 551.4 Cr, YoY Rs. 364.6 Cr
EBIDTA came at Rs. 64.6 Cr (16.2% QoQ, 396.5% YoY) vs QoQ Rs. 55.6 Cr, YoY Rs. 13 Cr
EBITDA Margin came at 10.5% vs QoQ 10.1%, YoY 3.6%
Adj. PAT came at Rs. 22.3 Cr vs QoQ Rs. 37.7 Cr, YoY Rs. 2.3 Cr Lower PT QoQ is on account of higher tax
Quarter EPS is Rs. 3.1
Share is trading at P/E of 44.8x TTM EPS
*MPS LTD.* | *CMP* Rs. 653 | *M Cap* Rs. 1182 Cr | *52 W H/L* 680/216
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 114.3 Cr (-1.7% QoQ, 50% YoY) vs QoQ Rs. 116.2 Cr, YoY Rs. 76.2 Cr
EBIDTA came at Rs. 28.6 Cr (-12.7% QoQ, 112.3% YoY) vs QoQ Rs. 32.7 Cr, YoY Rs. 13.5 Cr
EBITDA Margin came at 25% vs QoQ 28.2%, YoY 17.7%
Adj. PAT came at Rs. 12.9 Cr vs QoQ Rs. 17.9 Cr, YoY Rs. 9.4 Cr
Quarter EPS is Rs. 7.1
Share is trading at P/E of 20.2x TTM EPS
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 114.3 Cr (-1.7% QoQ, 50% YoY) vs QoQ Rs. 116.2 Cr, YoY Rs. 76.2 Cr
EBIDTA came at Rs. 28.6 Cr (-12.7% QoQ, 112.3% YoY) vs QoQ Rs. 32.7 Cr, YoY Rs. 13.5 Cr
EBITDA Margin came at 25% vs QoQ 28.2%, YoY 17.7%
Adj. PAT came at Rs. 12.9 Cr vs QoQ Rs. 17.9 Cr, YoY Rs. 9.4 Cr
Quarter EPS is Rs. 7.1
Share is trading at P/E of 20.2x TTM EPS
*Cummins India Ltd.* | *CMP* Rs. 803 | *M Cap* Rs. 22259 Cr | *52 W H/L* 934/324
(Nirmal Bang Retail Research)
*Result below expectation*
Revenue from Operations came at Rs. 1256.3 Cr (-12.2% QoQ, 18.2% YoY) vs QoQ Rs. 1431 Cr, YoY Rs. 1062.5 Cr
EBIDTA came at Rs. 169.4 Cr (-30% QoQ, 151.1% YoY) vs QoQ Rs. 242.1 Cr, YoY Rs. 67.5 Cr
EBITDA Margin came at 13.5% vs QoQ 16.9%, YoY 6.3%
Adj. PAT came at Rs. 168.6 Cr vs QoQ Rs. 240.3 Cr, YoY Rs. 174 Cr
Quarter EPS is Rs. 6.1
Share is trading at P/E of 29.3x FY22E EPS
(Nirmal Bang Retail Research)
*Result below expectation*
Revenue from Operations came at Rs. 1256.3 Cr (-12.2% QoQ, 18.2% YoY) vs QoQ Rs. 1431 Cr, YoY Rs. 1062.5 Cr
EBIDTA came at Rs. 169.4 Cr (-30% QoQ, 151.1% YoY) vs QoQ Rs. 242.1 Cr, YoY Rs. 67.5 Cr
EBITDA Margin came at 13.5% vs QoQ 16.9%, YoY 6.3%
Adj. PAT came at Rs. 168.6 Cr vs QoQ Rs. 240.3 Cr, YoY Rs. 174 Cr
Quarter EPS is Rs. 6.1
Share is trading at P/E of 29.3x FY22E EPS
*Balaji Amines – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*
The management sounded confident about the demand outlook and clarified that the raw material disruption is temporary. The company has increased the sustainable margin guidance from earlier 22% to 24-25% now (28.8% in FY21) The volume growth guidance for FY22 is of around 10-12%.
The stock is trading at 31.6xFY22E consensus earnings
• Sales volumes were up by 12.34% from 22,146 MT in Q4FY20 to 24,878 MT in Q4FY21.
• The company witnessed improved demand and price realizations across most of the product portfolio, leading to improved operating leverage and better margins.
• However, pandemic related disruptions of both inbound and outbound logistics as well as lack of adequate supply of industrial oxygen resulted in lower than optimal production
• At standalone level, Balaji has become debt free
• Balaji’s new plant of Ethylamines, having installed capacity of 50 tons per day (16,500 tons per annum), which is part of the Phase 1 of Greenfield Project (Unit IV) has commenced operations from last week. Now, along with the pre-existing capacity of 6,000 tons of Ethylamines, the company has the largest installed capacity of Ethylamines in India at 22,500 tons per annum. The new plant of Ethylamines at Unit IV will lead to lower cost of production due to new technology
• Capacity utilization of *Dimethylformamide (DMF)* plant has improved to 48% in Q4FY21. However, from mid-April onwards, due to diversion of oxygen supply, the DMF production was briefly disrupted. From 26th May onwards, the production of DMF has restarted, as supply of industrial oxygen has been restored
o Demand for DMF in India is witnessing a growth in the range of 7% to 10% per annum
o Looking at the strong demand, the company has planned to set up a separate plant for DMF with a capacity of 30,000 TPA under Phase-2 expansion of Greenfield Project (Unit IV)
o Demand-supply mismatch (due to consistent demand and reduced imports) is also resulting in healthy price realizations
• Balaji Specialty witnessed substantial ramp up in capacity utilization due to increase in demand for Ethylenediamine (EDA). *The management expects the healthy growth to continue in FY22E as well*
• Capex Rs 156 cr in Phase 1
• *Methylamines* capacity expansion is expected to be commence production from Q1FY23
• *Acetonitrile* -
o Raw material prices have gone up (from Rs50-60 earlier to Rs 100-110/kg) which has impacted profitability
o The debottlenecking has been delayed due to lack of skilled manpower on account of pandemic related restrictions
o The demand for Acetonitrile is expected to be elevated, as it has emerged as user-friendly solvent and is being preferred by many endusers over other solvents
• *Di-Methyl Carbonate (DMC)* - Construction is going on as planned to install capacity of 9,900 TPA of DMC. Manufacturing is expected to commence by end of FY22
• All 3 vaccines contain small amount of ETDA produced from EDA – which is a product of subsidiary
• Exports is expected to reach ~30% in next couple of years (from ~15-16% in FY21)
*Outlook – Positive*
The management sounded confident about the demand outlook and clarified that the raw material disruption is temporary. The company has increased the sustainable margin guidance from earlier 22% to 24-25% now (28.8% in FY21) The volume growth guidance for FY22 is of around 10-12%.
The stock is trading at 31.6xFY22E consensus earnings
• Sales volumes were up by 12.34% from 22,146 MT in Q4FY20 to 24,878 MT in Q4FY21.
• The company witnessed improved demand and price realizations across most of the product portfolio, leading to improved operating leverage and better margins.
• However, pandemic related disruptions of both inbound and outbound logistics as well as lack of adequate supply of industrial oxygen resulted in lower than optimal production
• At standalone level, Balaji has become debt free
• Balaji’s new plant of Ethylamines, having installed capacity of 50 tons per day (16,500 tons per annum), which is part of the Phase 1 of Greenfield Project (Unit IV) has commenced operations from last week. Now, along with the pre-existing capacity of 6,000 tons of Ethylamines, the company has the largest installed capacity of Ethylamines in India at 22,500 tons per annum. The new plant of Ethylamines at Unit IV will lead to lower cost of production due to new technology
• Capacity utilization of *Dimethylformamide (DMF)* plant has improved to 48% in Q4FY21. However, from mid-April onwards, due to diversion of oxygen supply, the DMF production was briefly disrupted. From 26th May onwards, the production of DMF has restarted, as supply of industrial oxygen has been restored
o Demand for DMF in India is witnessing a growth in the range of 7% to 10% per annum
o Looking at the strong demand, the company has planned to set up a separate plant for DMF with a capacity of 30,000 TPA under Phase-2 expansion of Greenfield Project (Unit IV)
o Demand-supply mismatch (due to consistent demand and reduced imports) is also resulting in healthy price realizations
• Balaji Specialty witnessed substantial ramp up in capacity utilization due to increase in demand for Ethylenediamine (EDA). *The management expects the healthy growth to continue in FY22E as well*
• Capex Rs 156 cr in Phase 1
• *Methylamines* capacity expansion is expected to be commence production from Q1FY23
• *Acetonitrile* -
o Raw material prices have gone up (from Rs50-60 earlier to Rs 100-110/kg) which has impacted profitability
o The debottlenecking has been delayed due to lack of skilled manpower on account of pandemic related restrictions
o The demand for Acetonitrile is expected to be elevated, as it has emerged as user-friendly solvent and is being preferred by many endusers over other solvents
• *Di-Methyl Carbonate (DMC)* - Construction is going on as planned to install capacity of 9,900 TPA of DMC. Manufacturing is expected to commence by end of FY22
• All 3 vaccines contain small amount of ETDA produced from EDA – which is a product of subsidiary
• Exports is expected to reach ~30% in next couple of years (from ~15-16% in FY21)
*Laxmi Organics – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive for long term*
_Fluorospecialty facility is on track and likely to get commissioned by end of FY22, which holds the key for further margin expansion as well_
The stock is trading at 40.7x Q4FY21 annualised earnings
• Capex FY21 – Rs 88 cr
• Expect strong recovery in macro activity
• Capex FY22 – 300 cr
• 250-270cr capex for Fluorochemicals facility – would be commercialised by end of FY22
• Employee exps looks higher due to higher variable payments and esops exps – going forward the management said this cost would be spread over all quarters instead of booking it in one quarter like done in Q4FY21
• Employee cost if likely to increase going forward
• Adjusted for trading margins, the overall margins would have been higher
• Acetyl Intermediate (AI) business is commodity in nature however it is cash generating business. Due to higher prices of Ethyl Acetate, the company enjoyed higher margins however the management has guided for correction in margins going forward however company level margins are likely to remain stable aided by Specialty Intermediate
• Specialty Intermediates (SI)’s performance was driven by volume growth, product mix and better pricing
o One product is likely to be commercialised in current year and one next year
• YCPL acquisition to consolidate in 2HFY22
*Outlook – Positive for long term*
_Fluorospecialty facility is on track and likely to get commissioned by end of FY22, which holds the key for further margin expansion as well_
The stock is trading at 40.7x Q4FY21 annualised earnings
• Capex FY21 – Rs 88 cr
• Expect strong recovery in macro activity
• Capex FY22 – 300 cr
• 250-270cr capex for Fluorochemicals facility – would be commercialised by end of FY22
• Employee exps looks higher due to higher variable payments and esops exps – going forward the management said this cost would be spread over all quarters instead of booking it in one quarter like done in Q4FY21
• Employee cost if likely to increase going forward
• Adjusted for trading margins, the overall margins would have been higher
• Acetyl Intermediate (AI) business is commodity in nature however it is cash generating business. Due to higher prices of Ethyl Acetate, the company enjoyed higher margins however the management has guided for correction in margins going forward however company level margins are likely to remain stable aided by Specialty Intermediate
• Specialty Intermediates (SI)’s performance was driven by volume growth, product mix and better pricing
o One product is likely to be commercialised in current year and one next year
• YCPL acquisition to consolidate in 2HFY22
*Gabriel India Ltd.* | *CMP* Rs. 124 | *M Cap* Rs. 1775 Cr | *52 W H/L* 135/69
(Nirmal Bang Retail Research)
*Result has improved*
Revenue from Operations came at Rs. 580.7 Cr (8.2% QoQ, 36.8% YoY) vs QoQ Rs. 536.5 Cr, YoY Rs. 424.6 Cr
EBIDTA came at Rs. 49.3 Cr (25.8% QoQ, 49% YoY) vs QoQ Rs. 39.2 Cr, YoY Rs. 33.1 Cr
EBITDA Margin came at 8.5% vs QoQ 7.3%, YoY 7.8%
Adj. PAT came at Rs. 27.7 Cr vs QoQ Rs. 24.6 Cr, YoY Rs. 26.6 Cr
Quarter EPS is Rs. 1.9
Share is trading at P/E of 30x TTM EPS
(Nirmal Bang Retail Research)
*Result has improved*
Revenue from Operations came at Rs. 580.7 Cr (8.2% QoQ, 36.8% YoY) vs QoQ Rs. 536.5 Cr, YoY Rs. 424.6 Cr
EBIDTA came at Rs. 49.3 Cr (25.8% QoQ, 49% YoY) vs QoQ Rs. 39.2 Cr, YoY Rs. 33.1 Cr
EBITDA Margin came at 8.5% vs QoQ 7.3%, YoY 7.8%
Adj. PAT came at Rs. 27.7 Cr vs QoQ Rs. 24.6 Cr, YoY Rs. 26.6 Cr
Quarter EPS is Rs. 1.9
Share is trading at P/E of 30x TTM EPS
*FDC Ltd.* | *CMP* Rs. 347 | *M Cap* Rs. 5857 Cr | *52 W H/L* 379/230
(Nirmal Bang Retail Research)
*Result has declined QoQ*
Revenue from Operations came at Rs. 313.4 Cr (-7.9% QoQ, -6% YoY) vs QoQ Rs. 340.2 Cr, YoY Rs. 333.3 Cr
EBIDTA came at Rs. 51.6 Cr (-30% QoQ, 76.2% YoY) vs QoQ Rs. 73.7 Cr, YoY Rs. 29.3 Cr
EBITDA Margin came at 16.5% vs QoQ 21.7%, YoY 8.8%
Adj. PAT came at Rs. 49 Cr vs QoQ Rs. 75.2 Cr, YoY Rs. 55.5 Cr
Quarter EPS is Rs. 2.9
Share is trading at P/E of 19.3x TTM EPS
(Nirmal Bang Retail Research)
*Result has declined QoQ*
Revenue from Operations came at Rs. 313.4 Cr (-7.9% QoQ, -6% YoY) vs QoQ Rs. 340.2 Cr, YoY Rs. 333.3 Cr
EBIDTA came at Rs. 51.6 Cr (-30% QoQ, 76.2% YoY) vs QoQ Rs. 73.7 Cr, YoY Rs. 29.3 Cr
EBITDA Margin came at 16.5% vs QoQ 21.7%, YoY 8.8%
Adj. PAT came at Rs. 49 Cr vs QoQ Rs. 75.2 Cr, YoY Rs. 55.5 Cr
Quarter EPS is Rs. 2.9
Share is trading at P/E of 19.3x TTM EPS
*Bharat Petroleum Corporation Ltd.* | *CMP* Rs. 471 | *M Cap* Rs. 102174 Cr | *52 W H/L* 482/292
(Nirmal Bang Retail Research)
*Result is above expectations*
*The company announced dividend of Rs58/share*
Revenue from Operations came at Rs. 76882.3 Cr (15.2% QoQ, 11.4% YoY) vs expectation of Rs. 80475.8 Cr, QoQ Rs. 66731.4 Cr, YoY Rs. 68991.4 Cr
EBIDTA came at Rs. 5058.3 Cr (17.5% QoQ, -917.4% YoY) vs expectation of Rs. 3332.6 Cr, QoQ Rs. 4305.8 Cr, YoY Rs. -618.8 Cr
EBITDA Margin came at 6.6% vs expectation of 4.1%, QoQ 6.5%, YoY -0.9%
Adj. PAT came at Rs. 4947.2 Cr vs expectation of Rs. 1965 Cr, QoQ Rs. 3197.1 Cr, YoY Rs. -280.2 Cr
Quarter EPS is Rs. 22.8
Share is trading at P/E of 11.3x FY22E EPS
(Nirmal Bang Retail Research)
*Result is above expectations*
*The company announced dividend of Rs58/share*
Revenue from Operations came at Rs. 76882.3 Cr (15.2% QoQ, 11.4% YoY) vs expectation of Rs. 80475.8 Cr, QoQ Rs. 66731.4 Cr, YoY Rs. 68991.4 Cr
EBIDTA came at Rs. 5058.3 Cr (17.5% QoQ, -917.4% YoY) vs expectation of Rs. 3332.6 Cr, QoQ Rs. 4305.8 Cr, YoY Rs. -618.8 Cr
EBITDA Margin came at 6.6% vs expectation of 4.1%, QoQ 6.5%, YoY -0.9%
Adj. PAT came at Rs. 4947.2 Cr vs expectation of Rs. 1965 Cr, QoQ Rs. 3197.1 Cr, YoY Rs. -280.2 Cr
Quarter EPS is Rs. 22.8
Share is trading at P/E of 11.3x FY22E EPS
*Manappuram Finance Q4FY21 Concall Update*
(Nirmal Bang Securities)
*> Gold (70% mix) continues to support stable consolidated performance*
*> MFI portfolio (20% mix) remains vulnerable*
*Outlook: Neutral in near term, Positive in long term*
• Standalone (Gold, Vehicle, Home, Others) GNPA increased to 1.9% vs QoQ 1.3%. Standalone NNPA increased to 1.5% vs QoQ 0.8%. (Increase was led by gold due to technicality of reporting and gold remains the most liquid and fully secured product)
• *Gold* auctions during the quarter were Rs. 404 Cr as compared to Rs. 8 Cr during 9MFY21.
• Gold tenure remains at 3-6 months which safeguards the asset quality.
• *CV* GNPA has declined to 5.0% vs QoQ 8.5%. Restructured book for CVs is 8%.
• *MFI* GNPA increased to 2.5% flattish QoQ. MFI NNPA remains at 0%. 0+ PAR remains elevated although it declined to 15.8% vs QoQ 17.5%. 30+ PAR was at 10.1% vs QoQ 9.9%. Collection efficiency has dipped in April to 93% from 101% in March. MFI writeoffs were of Rs. 120 Cr during FY21. Co is expecting short-term pain in MFI asset quality due to the second wave of covid. Restructured book for MFI is 4%.
• Consolidated AUM stood at Rs. 27,224 Cr (+8% YoY, -2% QoQ).
• *Gold AUM* declined 6% QoQ and increased 12% YoY to Rs. 19,077 Cr. (Exactly in line with the behavior of gold prices)
• Gold tonnage declined 4% QoQ and by 10% YoY to 65.3 tons.
• Avg ticket size for gold loan increased from 39k in FY20 to 45k in FY21. Yield was at 25% vs 26% YoY.
• Gold AUM per branch in FY21 increased to Rs. 5.4 Cr vs Rs. 4.8 Cr YoY.
• Competition from banks has reduced post March when LTV was reduced from 90% to 75%.
• 75% of gold loan market is still dominated by unorganized players.
• *Non-gold AUM* increased by 10% QoQ and declined by 1% YoY to Rs. 81 Bn.
• YoY growth: MFI +9%, Home +6%, CV -22%, others -43%.
Share is trading at P/E of 6.7x FY22E EPS & 1.9x trailing P/BV
(Nirmal Bang Securities)
*> Gold (70% mix) continues to support stable consolidated performance*
*> MFI portfolio (20% mix) remains vulnerable*
*Outlook: Neutral in near term, Positive in long term*
• Standalone (Gold, Vehicle, Home, Others) GNPA increased to 1.9% vs QoQ 1.3%. Standalone NNPA increased to 1.5% vs QoQ 0.8%. (Increase was led by gold due to technicality of reporting and gold remains the most liquid and fully secured product)
• *Gold* auctions during the quarter were Rs. 404 Cr as compared to Rs. 8 Cr during 9MFY21.
• Gold tenure remains at 3-6 months which safeguards the asset quality.
• *CV* GNPA has declined to 5.0% vs QoQ 8.5%. Restructured book for CVs is 8%.
• *MFI* GNPA increased to 2.5% flattish QoQ. MFI NNPA remains at 0%. 0+ PAR remains elevated although it declined to 15.8% vs QoQ 17.5%. 30+ PAR was at 10.1% vs QoQ 9.9%. Collection efficiency has dipped in April to 93% from 101% in March. MFI writeoffs were of Rs. 120 Cr during FY21. Co is expecting short-term pain in MFI asset quality due to the second wave of covid. Restructured book for MFI is 4%.
• Consolidated AUM stood at Rs. 27,224 Cr (+8% YoY, -2% QoQ).
• *Gold AUM* declined 6% QoQ and increased 12% YoY to Rs. 19,077 Cr. (Exactly in line with the behavior of gold prices)
• Gold tonnage declined 4% QoQ and by 10% YoY to 65.3 tons.
• Avg ticket size for gold loan increased from 39k in FY20 to 45k in FY21. Yield was at 25% vs 26% YoY.
• Gold AUM per branch in FY21 increased to Rs. 5.4 Cr vs Rs. 4.8 Cr YoY.
• Competition from banks has reduced post March when LTV was reduced from 90% to 75%.
• 75% of gold loan market is still dominated by unorganized players.
• *Non-gold AUM* increased by 10% QoQ and declined by 1% YoY to Rs. 81 Bn.
• YoY growth: MFI +9%, Home +6%, CV -22%, others -43%.
Share is trading at P/E of 6.7x FY22E EPS & 1.9x trailing P/BV
*Karnataka Bank Ltd.* | *CMP* Rs. 72 | *M Cap* Rs. 2238 Cr | *52 W H/L* 74/34
(Nirmal Bang Retail Research)
*Result has declined* on all fronts
Net Interest Income came at Rs. 459 Cr vs YoY Rs. 529 Cr, QoQ Rs. 614 Cr
Non Interest Income came at Rs. 373 Cr vs YoY Rs. 440 Cr, QoQ Rs. 273 Cr
PBP came at Rs. 384 Cr vs YoY Rs. 392 Cr, QoQ Rs. 438 Cr
Provisions came at Rs. 342 Cr vs YoY Rs. 357 Cr, QoQ Rs. 214 Cr
Adj. PAT came at Rs. 31 Cr vs YoY Rs. 27 Cr, QoQ Rs. 135 Cr
Gross NPA came at Rs. 2588 Cr vs QoQ (proforma) Rs. 2101 Cr at 4.91% vs QoQ 3.95%
Net NPA came at Rs. 1642 Cr vs QoQ (proforma) Rs. 1287 Cr at 3.18% vs QoQ 2.42%
Advances declined by 9% YoY & 3% QoQ to Rs. 51,694 Cr
Quarter EPS is Rs. 1
Share is trading at P/E of 4.3x FY22E EPS & 0.4x trailing P/Adj. BV
(Nirmal Bang Retail Research)
*Result has declined* on all fronts
Net Interest Income came at Rs. 459 Cr vs YoY Rs. 529 Cr, QoQ Rs. 614 Cr
Non Interest Income came at Rs. 373 Cr vs YoY Rs. 440 Cr, QoQ Rs. 273 Cr
PBP came at Rs. 384 Cr vs YoY Rs. 392 Cr, QoQ Rs. 438 Cr
Provisions came at Rs. 342 Cr vs YoY Rs. 357 Cr, QoQ Rs. 214 Cr
Adj. PAT came at Rs. 31 Cr vs YoY Rs. 27 Cr, QoQ Rs. 135 Cr
Gross NPA came at Rs. 2588 Cr vs QoQ (proforma) Rs. 2101 Cr at 4.91% vs QoQ 3.95%
Net NPA came at Rs. 1642 Cr vs QoQ (proforma) Rs. 1287 Cr at 3.18% vs QoQ 2.42%
Advances declined by 9% YoY & 3% QoQ to Rs. 51,694 Cr
Quarter EPS is Rs. 1
Share is trading at P/E of 4.3x FY22E EPS & 0.4x trailing P/Adj. BV
*Tide Water Oil (India) Ltd (CMP - 6017)*
✳✳✳✳✳✳✳✳✳✳✳
*Low equity of Rs1.70 Crs*
✳✳✳✳✳✳✳✳✳✳✳
*Reserves Rs671 Crs*
✳✳✳✳✳✳✳✳✳✳✳
*Zero Debt Company*
✳✳✳✳✳✳✳✳✳✳✳
*Plant at Historical Cost Rs124 Crs*
*INVESTMENT Portfolio at Historical Cost of Rs215 Crs*
*INVESTMENT CMP IS MUCH HIGHER*
*NET CURRENT ASSETS OF Rs380 Crores of which Cash & Bank Bal of Rs196 Crores*
✳✳✳✳✳✳✳✳✳✳✳
*57.28% Promoter holding*
👉 26% Andrew Yule
👉 29% Standard Grease
👉 2% Janus Consolidated Cr
✳✳✳✳✳✳✳✳✳✳✳
*EPS of Rs326*
✳✳✳✳✳✳✳✳✳✳✳
*Stock PE of 18 v/s Industry PE of 22*
✳✳✳✳✳✳✳✳✳✳✳
*Mkt Cap of Rs2097 Crs & Annual Turnover Rs1316 Crs*
✳✳✳✳✳✳✳✳✳✳✳
*FV of Rs 5*
✳✳✳✳✳✳✳✳✳✳✳
*Dividend of 5000%*
✳✳✳✳✳✳✳✳✳✳✳
*Dividend Yield 4%*
✳✳✳✳✳✳✳✳✳✳✳
*Book Value of Rs1931*
✳✳✳✳✳✳✳✳✳✳✳
*PAT of Rs105 Crs v/s 86 Crs*
✳✳✳✳✳✳✳✳✳✳✳
*Kolkata based Lubricant Player*
✳✳✳✳✳✳✳✳✳✳✳
*3 Times 1:1 Bonus Declared in the year 1980, 1993, 2016*
✳✳✳✳✳✳✳✳✳✳✳
*78.82% Equity is out of Bonus*
✳✳✳✳✳✳✳✳✳✳✳
*Kolkatta based VEEDOL Brand Lubricant Manufacturer & Supplier*
✳✳✳✳✳✳✳✳✳✳✳
*In India it sales it's products through 50 Distributors+650 Depots+50000 Retail Outlets*
✳✳✳✳✳✳✳✳✳✳✳
*In India it manufactures it's products at 5 Plants & 55 Depots*
✳✳✳✳✳✳✳✳✳✳✳
*It has 2 R&D Centres to Mfr:*
- Jaso
- FC
- API
- SM
- APICI 4 Plus
*For Lube Oil @ Turbhe - Navi Mumbai*
*For Grease @ Orgadan - Chennai*
✳✳✳✳✳✳✳✳✳✳✳
*It's a part of Andrew Yule Group (GOI owned company)*
✳✳✳✳✳✳✳✳✳✳✳
Apart from *Andrew Yule's 26.23%* another PVT Co. *Standard Grease & Specialities Pvt Ltd which owns 29.35%* and *Janus Consolidated Funds owns 1.69%* stake
✳✳✳✳✳✳✳✳✳✳✳
*Andrew Yule Group is engaged in the business of :*
-Engineering
-Electrical
-Tea Cultivation
-Power Generation
-Communication System
-Lubricants
✳✳✳✳✳✳✳✳✳✳✳
*Tide Water Oil Manufactures Automobile Products for Trucks/ Tractors/ Commercial Vehicles/ Passenger Cars/ 2-3 Wheelers:*
- Engine Oil
- Gear Oil
- Transmission Oil
- Coolants
- Grease
✳✳✳✳✳✳✳✳✳✳✳
*Tide Water Oil Manufactures following for Industrial Applicants :*
- Industrial Oil
- Greases
- Metal Work Fluid
- Kwinching Oils
- Heat Transfer Oil
✳✳✳✳✳✳✳✳✳✳✳
*TWO' s some of the Branded Customers*:
1) Royal Enfield Ltd
2) SML ISUZU Ltd
3) L&T Komatsu Ltd
4) Hero Motocorp Ltd
5) Honda Motor Cycle & Scooter India Pvt Ltd
6) Honda Motor India Pvt Ltd
7) Honda Cars India Ltd
8) Honda Siel Power Products Ltd
9) India Yamaha Motors Pvt Ltd
10) George Maijo Industries Pvt Ltd (Yamaha Outboard Motors Distribution)
11) Kobelco Construction Equipment India Pvt Ltd
12) Kobelco Cranes India Pvt Ltd
13) Kubota Agricultural Machinery India Pvt Ltd
14) ISUZU Motors Pvt Ltd
15) Renault Nissan Automotive India Pvt Ltd
16) Toyota Boschoku Automotive India Pvt Ltd
17) KYB Motorcycle Suspension India Pvt Ltd
18) Yanmar India Pvt Ltd
✳✳✳✳✳✳✳✳✳✳✳
*International Business Subsidiaries (100%):*
1) *Veedol International Ltd* (Acquired in 2011 - Owns VEEDOL Trademark World Vide)
2) *Price Thomas Holdings Ltd*
(Acquired in 2016)
3) *Granvile Oil & Chemicals Ltd* (Acquired in 2016 have lubricant mfg & sale and after care products sale in UK ~ Owns 4 Major Brands Granvile/ Gunk/ Nova/ Autosol )
4) *Veedol International DMC (VID), Dubai*
5) *Veedol Deutschland GmbH (VDG), Germany*
6) *Veedol International BV (VIBV), Netherlands*
7) *Veedol International Americans Inc*
✳✳✳✳✳✳✳✳✳✳✳
*Joint Venture With JX - NOE*:
Tide Water Oil Co. (India) Limited (TWOIL) has formed a 50:50 joint venture company with JX Nippon Oil & Energy Corporation (JX-NOE), the largest petroleum conglomerate in *Japan*.
The joint venture company, JX Nippon TWO Lubricants India Private Limited (JXTL), is leveraging the capabilities of both its parent companies – the technical know-how of JX-NOE and the distribution strength of TWOIL – to serve its customers most effectively.
JXTL is responsible for selling, marketing, distributing, and manufacturing ENEOS brand of lubricants.
JXTL has entered into an agreement with TWOIL for manufacturing ENEOS products.
✳✳✳✳✳✳✳✳✳✳✳
*Low equity of Rs1.70 Crs*
✳✳✳✳✳✳✳✳✳✳✳
*Reserves Rs671 Crs*
✳✳✳✳✳✳✳✳✳✳✳
*Zero Debt Company*
✳✳✳✳✳✳✳✳✳✳✳
*Plant at Historical Cost Rs124 Crs*
*INVESTMENT Portfolio at Historical Cost of Rs215 Crs*
*INVESTMENT CMP IS MUCH HIGHER*
*NET CURRENT ASSETS OF Rs380 Crores of which Cash & Bank Bal of Rs196 Crores*
✳✳✳✳✳✳✳✳✳✳✳
*57.28% Promoter holding*
👉 26% Andrew Yule
👉 29% Standard Grease
👉 2% Janus Consolidated Cr
✳✳✳✳✳✳✳✳✳✳✳
*EPS of Rs326*
✳✳✳✳✳✳✳✳✳✳✳
*Stock PE of 18 v/s Industry PE of 22*
✳✳✳✳✳✳✳✳✳✳✳
*Mkt Cap of Rs2097 Crs & Annual Turnover Rs1316 Crs*
✳✳✳✳✳✳✳✳✳✳✳
*FV of Rs 5*
✳✳✳✳✳✳✳✳✳✳✳
*Dividend of 5000%*
✳✳✳✳✳✳✳✳✳✳✳
*Dividend Yield 4%*
✳✳✳✳✳✳✳✳✳✳✳
*Book Value of Rs1931*
✳✳✳✳✳✳✳✳✳✳✳
*PAT of Rs105 Crs v/s 86 Crs*
✳✳✳✳✳✳✳✳✳✳✳
*Kolkata based Lubricant Player*
✳✳✳✳✳✳✳✳✳✳✳
*3 Times 1:1 Bonus Declared in the year 1980, 1993, 2016*
✳✳✳✳✳✳✳✳✳✳✳
*78.82% Equity is out of Bonus*
✳✳✳✳✳✳✳✳✳✳✳
*Kolkatta based VEEDOL Brand Lubricant Manufacturer & Supplier*
✳✳✳✳✳✳✳✳✳✳✳
*In India it sales it's products through 50 Distributors+650 Depots+50000 Retail Outlets*
✳✳✳✳✳✳✳✳✳✳✳
*In India it manufactures it's products at 5 Plants & 55 Depots*
✳✳✳✳✳✳✳✳✳✳✳
*It has 2 R&D Centres to Mfr:*
- Jaso
- FC
- API
- SM
- APICI 4 Plus
*For Lube Oil @ Turbhe - Navi Mumbai*
*For Grease @ Orgadan - Chennai*
✳✳✳✳✳✳✳✳✳✳✳
*It's a part of Andrew Yule Group (GOI owned company)*
✳✳✳✳✳✳✳✳✳✳✳
Apart from *Andrew Yule's 26.23%* another PVT Co. *Standard Grease & Specialities Pvt Ltd which owns 29.35%* and *Janus Consolidated Funds owns 1.69%* stake
✳✳✳✳✳✳✳✳✳✳✳
*Andrew Yule Group is engaged in the business of :*
-Engineering
-Electrical
-Tea Cultivation
-Power Generation
-Communication System
-Lubricants
✳✳✳✳✳✳✳✳✳✳✳
*Tide Water Oil Manufactures Automobile Products for Trucks/ Tractors/ Commercial Vehicles/ Passenger Cars/ 2-3 Wheelers:*
- Engine Oil
- Gear Oil
- Transmission Oil
- Coolants
- Grease
✳✳✳✳✳✳✳✳✳✳✳
*Tide Water Oil Manufactures following for Industrial Applicants :*
- Industrial Oil
- Greases
- Metal Work Fluid
- Kwinching Oils
- Heat Transfer Oil
✳✳✳✳✳✳✳✳✳✳✳
*TWO' s some of the Branded Customers*:
1) Royal Enfield Ltd
2) SML ISUZU Ltd
3) L&T Komatsu Ltd
4) Hero Motocorp Ltd
5) Honda Motor Cycle & Scooter India Pvt Ltd
6) Honda Motor India Pvt Ltd
7) Honda Cars India Ltd
8) Honda Siel Power Products Ltd
9) India Yamaha Motors Pvt Ltd
10) George Maijo Industries Pvt Ltd (Yamaha Outboard Motors Distribution)
11) Kobelco Construction Equipment India Pvt Ltd
12) Kobelco Cranes India Pvt Ltd
13) Kubota Agricultural Machinery India Pvt Ltd
14) ISUZU Motors Pvt Ltd
15) Renault Nissan Automotive India Pvt Ltd
16) Toyota Boschoku Automotive India Pvt Ltd
17) KYB Motorcycle Suspension India Pvt Ltd
18) Yanmar India Pvt Ltd
✳✳✳✳✳✳✳✳✳✳✳
*International Business Subsidiaries (100%):*
1) *Veedol International Ltd* (Acquired in 2011 - Owns VEEDOL Trademark World Vide)
2) *Price Thomas Holdings Ltd*
(Acquired in 2016)
3) *Granvile Oil & Chemicals Ltd* (Acquired in 2016 have lubricant mfg & sale and after care products sale in UK ~ Owns 4 Major Brands Granvile/ Gunk/ Nova/ Autosol )
4) *Veedol International DMC (VID), Dubai*
5) *Veedol Deutschland GmbH (VDG), Germany*
6) *Veedol International BV (VIBV), Netherlands*
7) *Veedol International Americans Inc*
✳✳✳✳✳✳✳✳✳✳✳
*Joint Venture With JX - NOE*:
Tide Water Oil Co. (India) Limited (TWOIL) has formed a 50:50 joint venture company with JX Nippon Oil & Energy Corporation (JX-NOE), the largest petroleum conglomerate in *Japan*.
The joint venture company, JX Nippon TWO Lubricants India Private Limited (JXTL), is leveraging the capabilities of both its parent companies – the technical know-how of JX-NOE and the distribution strength of TWOIL – to serve its customers most effectively.
JXTL is responsible for selling, marketing, distributing, and manufacturing ENEOS brand of lubricants.
JXTL has entered into an agreement with TWOIL for manufacturing ENEOS products.
JXTL is using the distribution network of TWOIL for distribution of ENEOS products.
✳✳✳✳✳✳✳✳✳✳✳
🎯🎯🎯🎯🎯🎯🎯🎯🎯
✳✳✳✳✳✳✳✳✳✳✳
🎯🎯🎯🎯🎯🎯🎯🎯🎯