*Globus Spirits Ltd* 🍻
▶️Largest grain based Extra Neutral Alcohol (ENA) manufacturer in India
▶️Highest Ebidta margin in liquor industry
▶️Lowest Valuation in peer group
▶️TP 1000 coming soon. Possible 1500 in 18 months
Caters to 4 important segments of the alcohol industry
▫️IMIL▫️IMFL▫️IMFL Bottling▫️Bulk Alcohol
▪️Total capacity 160mn Bulk Litres of alcohol
▪️ *140 KLPD of capacity to be added at WB. The total capacity at WB will stand at ~280 KLDP post this expansion*
▫️Capacity Utilization at 99.4% in Q4FY21 vs 88.8% in Q4FY20
▫️Aggregate value segment realizations at Rs. 419 per case in Q4FY21 vs Rs. 373 per case in Q4FY20
▫️Average realization for bulk alcohol increased to Rs. 54.2 per litre in Q4FY21 from Rs. 51.4 per litre in Q4FY20
▫️Value Segment Sale Volumes in FY21 stood at 12.3mn cases vs 11mn cases in FY20
▫️FY21 Realizations at 427 vs 377 in FY20
*Premium Brands*
▫️Governor’s Reserve - Semi-premium whisky segment Segment is about 20m cases
▫️Oakton - Premium whisky segment Segment is about 8.5m cases
▫️L’Affaire Napoleon 3 years Brandy - Premium brandy segment Segment is about 0.5m cases
*_Globus Spirits trades at a forward P/E of just 6.05x and co is bound to get a P/E of 15 which means 150% appreciation possible which implies a TP of 1000 in medium term._*
▶️Largest grain based Extra Neutral Alcohol (ENA) manufacturer in India
▶️Highest Ebidta margin in liquor industry
▶️Lowest Valuation in peer group
▶️TP 1000 coming soon. Possible 1500 in 18 months
Caters to 4 important segments of the alcohol industry
▫️IMIL▫️IMFL▫️IMFL Bottling▫️Bulk Alcohol
▪️Total capacity 160mn Bulk Litres of alcohol
▪️ *140 KLPD of capacity to be added at WB. The total capacity at WB will stand at ~280 KLDP post this expansion*
▫️Capacity Utilization at 99.4% in Q4FY21 vs 88.8% in Q4FY20
▫️Aggregate value segment realizations at Rs. 419 per case in Q4FY21 vs Rs. 373 per case in Q4FY20
▫️Average realization for bulk alcohol increased to Rs. 54.2 per litre in Q4FY21 from Rs. 51.4 per litre in Q4FY20
▫️Value Segment Sale Volumes in FY21 stood at 12.3mn cases vs 11mn cases in FY20
▫️FY21 Realizations at 427 vs 377 in FY20
*Premium Brands*
▫️Governor’s Reserve - Semi-premium whisky segment Segment is about 20m cases
▫️Oakton - Premium whisky segment Segment is about 8.5m cases
▫️L’Affaire Napoleon 3 years Brandy - Premium brandy segment Segment is about 0.5m cases
*_Globus Spirits trades at a forward P/E of just 6.05x and co is bound to get a P/E of 15 which means 150% appreciation possible which implies a TP of 1000 in medium term._*
*Polyspin Exports Ltd - _BUY TP 155_*
_Bright Prospects & Ever increasing Demand_
▫️FY22E EPS estimated at 14 (Conservative)
▫️ *Trading at just 5.5x FY22E EPS*
▫️ *Co has already posted record Sales and Profits in Q2 and Q3*
*Huge Expansion/New Product Line in Progress*
▪️Started production of viscose blended yarn in OE spinning unit
▪️Paper bags manufacturing units to be used for supply of multilayer paper bags for cement packing leading cement manufacturers in India as well as to other units for packing of chemicals, granules, other food products, etc.
▪️ *This new Product line will lead to a Topline growth of atleast 30% from current FY. This will lead to disproportionately higher Profits in coming quarters.*
▪️ *_Better product mix will lead to Significant Expansion of Operating Margins_*
*Operates in 3 major verticals*
▫️FIBC bags ▫️Textile OE yarn ▫️Paper bags
💡 *Ever increasing demand for products will Enhance Sales & Profitability*
💡 *Now LDPE prices (Raw Material) are significantly lower which will enhance Margins and Profits further*
🔹Integrated manufacturer of FIBC Bags
🔹Co has Long experience in both export & domestic market
🔹Reputed brand image in Europe
🔹Strategically placed near sea port TUTICORIN
🔹Manufactures high quality yarn with imported automatic OE Machines, hence fetches better price in the market.
▫️FIBC bags are used in numerous applications like chemical, pharmaceutical, food industries etc
▫️ *Demand for FIBC is increasing constantly at a faster pace*
*Diverse Portfolio of Products*
▪️ Baffle bags / Q bags ▪️ Tubular coated bags ▪️ Asbestos plate bags ▪️ Normal u-panel bags ▪️ Container bags ▪️ Full discharge bags ▪️ One/Two loop bags ▪️ Single/Double/Triple sift-proof bags ▪️ UN certified bags ▪️ Under sling bags ▪️ Circular bulk bags
*_At current valuations Polyspin is trading extremely cheap. Even if it gets a modest P/E of 11, stock bound to reach 155 conservatively._*
*Prospects for FIBC looks promising with rising demand and New Multilayer Paper Bag segment will further add to the Valuations. We advise a Strong BUY.*
_Bright Prospects & Ever increasing Demand_
▫️FY22E EPS estimated at 14 (Conservative)
▫️ *Trading at just 5.5x FY22E EPS*
▫️ *Co has already posted record Sales and Profits in Q2 and Q3*
*Huge Expansion/New Product Line in Progress*
▪️Started production of viscose blended yarn in OE spinning unit
▪️Paper bags manufacturing units to be used for supply of multilayer paper bags for cement packing leading cement manufacturers in India as well as to other units for packing of chemicals, granules, other food products, etc.
▪️ *This new Product line will lead to a Topline growth of atleast 30% from current FY. This will lead to disproportionately higher Profits in coming quarters.*
▪️ *_Better product mix will lead to Significant Expansion of Operating Margins_*
*Operates in 3 major verticals*
▫️FIBC bags ▫️Textile OE yarn ▫️Paper bags
💡 *Ever increasing demand for products will Enhance Sales & Profitability*
💡 *Now LDPE prices (Raw Material) are significantly lower which will enhance Margins and Profits further*
🔹Integrated manufacturer of FIBC Bags
🔹Co has Long experience in both export & domestic market
🔹Reputed brand image in Europe
🔹Strategically placed near sea port TUTICORIN
🔹Manufactures high quality yarn with imported automatic OE Machines, hence fetches better price in the market.
▫️FIBC bags are used in numerous applications like chemical, pharmaceutical, food industries etc
▫️ *Demand for FIBC is increasing constantly at a faster pace*
*Diverse Portfolio of Products*
▪️ Baffle bags / Q bags ▪️ Tubular coated bags ▪️ Asbestos plate bags ▪️ Normal u-panel bags ▪️ Container bags ▪️ Full discharge bags ▪️ One/Two loop bags ▪️ Single/Double/Triple sift-proof bags ▪️ UN certified bags ▪️ Under sling bags ▪️ Circular bulk bags
*_At current valuations Polyspin is trading extremely cheap. Even if it gets a modest P/E of 11, stock bound to reach 155 conservatively._*
*Prospects for FIBC looks promising with rising demand and New Multilayer Paper Bag segment will further add to the Valuations. We advise a Strong BUY.*
🔹 *STOCKS TO WATCH:*
ASHOK LEYLAND, MISHRA DHATU, LIC HOUSING, NATH BIO-GENES, PTC INDIA, ONGC, CG POWER, PRECISION WIRES
Ashok Leyland: Q4 Sl Net Profit 2.41b Rupees Vs Loss 573m (YoY); Est Profit 1.9b | Loss 194m (QoQ) || Q4 Revenue 70b Rupees Vs 38.38b (YoY) || Co Has Recommended A Dividend Of Rupees 0.60 Per Equity Share
Mishra Dhatu Nigam: Q4 Cons Net Profit 747.1m Rupees Vs 401m (YoY) | 601m (QoQ) || Q4 Revenue 3.46b Rupees Vs 2.04b (YoY) || Co Has Recommended Final Dividend Of Rupees 1.58 Per Equity Share
LIC Housing Finance: Co To Issue Shares To LIC At Price Rupees 514.25/Share
Nath Bio-Genes (India): Q4 Sl Net Profit 71.4m Rupees Vs 76.3m (YoY) | Est 42m (QoQ) || Q4 Revenue 550.2m Rupees Vs 601.5m (YoY)
PTC India: Q4 Cons Net Profit 685.6m Rupees Vs 455m (YoY); Est 750m | 1.07b (QoQ) || Q4 Revenue 39.17b Rupees Vs 36.35b (YoY) || Co Recommended A Final Dividend Of 5.50 Rupees/Share
ONGC: Q4 SL Net Profit 67.33b Rupees Vs Loss 32.14b (YoY) | 12.58b (QoQ) || Q4 Revenue 212b Rupees Vs 215b (YoY) || Declared Dividend Of Rupees 1.85/Share
CG Power: CBI Files Case Against Cg Power, Gautam Thapar, Others || CBI Case For Causing Alleged Loss Of Rupees 24.4b To SBI
Precision Wires India: Co Says Due To Second Wave Of Covid-19 There Is Very Significant Impact On Operations From Apr-To Date || Co Says Production/Sales Significantly Lower During Qtr. By About One Third Of Average Of Previous Quarter
🔹 *Earnings Today:*
Balmer Lawrie, Bharat Wire, Finolex Industries, Godfrey Phillip, IGL, India Glycols, Inox Wind, JSW Energy, NCL Industries, PNC Infra, Railtel, Taj GVK, Texmo Pipes, Voltamp Trans
🔹 *Stocks Ban In F&O:*
NIL
ASHOK LEYLAND, MISHRA DHATU, LIC HOUSING, NATH BIO-GENES, PTC INDIA, ONGC, CG POWER, PRECISION WIRES
Ashok Leyland: Q4 Sl Net Profit 2.41b Rupees Vs Loss 573m (YoY); Est Profit 1.9b | Loss 194m (QoQ) || Q4 Revenue 70b Rupees Vs 38.38b (YoY) || Co Has Recommended A Dividend Of Rupees 0.60 Per Equity Share
Mishra Dhatu Nigam: Q4 Cons Net Profit 747.1m Rupees Vs 401m (YoY) | 601m (QoQ) || Q4 Revenue 3.46b Rupees Vs 2.04b (YoY) || Co Has Recommended Final Dividend Of Rupees 1.58 Per Equity Share
LIC Housing Finance: Co To Issue Shares To LIC At Price Rupees 514.25/Share
Nath Bio-Genes (India): Q4 Sl Net Profit 71.4m Rupees Vs 76.3m (YoY) | Est 42m (QoQ) || Q4 Revenue 550.2m Rupees Vs 601.5m (YoY)
PTC India: Q4 Cons Net Profit 685.6m Rupees Vs 455m (YoY); Est 750m | 1.07b (QoQ) || Q4 Revenue 39.17b Rupees Vs 36.35b (YoY) || Co Recommended A Final Dividend Of 5.50 Rupees/Share
ONGC: Q4 SL Net Profit 67.33b Rupees Vs Loss 32.14b (YoY) | 12.58b (QoQ) || Q4 Revenue 212b Rupees Vs 215b (YoY) || Declared Dividend Of Rupees 1.85/Share
CG Power: CBI Files Case Against Cg Power, Gautam Thapar, Others || CBI Case For Causing Alleged Loss Of Rupees 24.4b To SBI
Precision Wires India: Co Says Due To Second Wave Of Covid-19 There Is Very Significant Impact On Operations From Apr-To Date || Co Says Production/Sales Significantly Lower During Qtr. By About One Third Of Average Of Previous Quarter
🔹 *Earnings Today:*
Balmer Lawrie, Bharat Wire, Finolex Industries, Godfrey Phillip, IGL, India Glycols, Inox Wind, JSW Energy, NCL Industries, PNC Infra, Railtel, Taj GVK, Texmo Pipes, Voltamp Trans
🔹 *Stocks Ban In F&O:*
NIL
BODAL CHEMICALS: Q4 CONS NET PROFIT 235.7M RUPEES VS 229M (YOY) | 265M (QOQ) || Q4 REVENUE 4.33B RUPEES VS 3.88B (YOY)
PTC INDIA: Q4 CONS NET PROFIT 685.6M RUPEES VS 455M (YOY); EST 750M | 1.07B (QOQ) || Q4 REVENUE 39.17B RUPEES VS 36.35B (YOY)
WEST COAST PAPER MILLS LTD: Q4 EBITDA RUPEES 2.2B VS 2.5B (YOY); 1.32B (QOQ) || Q4 EBITDA MARGIN 24.2% VS 34.07% (YOY); 22.95% (QOQ)
*Stocks in News*
Bodal Chemicals: The company reported consolidated profit at Rs 21.73 crore in Q4FY21 against Rs 25.84 crore in Q4FY20, revenue rose to Rs 432.73 crore from Rs 368.47 crore YoY.
Asian Granito India: Crystal Ceramics Industries, a material subsidiary of Asian Granito India, has completed 12000 SQMTS/days of glazed vitrified tiles brown field capacity expansion at its Meshana Plant. This capacity addition will increase total capacity of Crystal Ceramics to 36,000 SQMTS/day (square meters per day).
Majesco: Promoter Aurum Platz IT Pvt Ltd acquired 14.31% stake in the company via off market transaction, taking total shareholding to 34.57% from 20.26% earlier.
Pritika Auto Industries: Tano Investment Opportunities Fund acquired 2.78% stake in the company via open market transaction, raising shareholding to 9.68% from 6.9% earlier.
PTC India: The company reported higher consolidated profit at Rs 49.77 crore in Q4FY21 against Rs 47.96 crore in Q4FY20, revenue rose to Rs 3,916.58 crore from Rs 3,634.52 crore YoY.
Indian Bank: The bank raised Rs 1,650 crore via qualified institutional placement (QIP) and set issue price for QIP at Rs 142.15 per share
Bodal Chemicals: The company reported consolidated profit at Rs 21.73 crore in Q4FY21 against Rs 25.84 crore in Q4FY20, revenue rose to Rs 432.73 crore from Rs 368.47 crore YoY.
Asian Granito India: Crystal Ceramics Industries, a material subsidiary of Asian Granito India, has completed 12000 SQMTS/days of glazed vitrified tiles brown field capacity expansion at its Meshana Plant. This capacity addition will increase total capacity of Crystal Ceramics to 36,000 SQMTS/day (square meters per day).
Majesco: Promoter Aurum Platz IT Pvt Ltd acquired 14.31% stake in the company via off market transaction, taking total shareholding to 34.57% from 20.26% earlier.
Pritika Auto Industries: Tano Investment Opportunities Fund acquired 2.78% stake in the company via open market transaction, raising shareholding to 9.68% from 6.9% earlier.
PTC India: The company reported higher consolidated profit at Rs 49.77 crore in Q4FY21 against Rs 47.96 crore in Q4FY20, revenue rose to Rs 3,916.58 crore from Rs 3,634.52 crore YoY.
Indian Bank: The bank raised Rs 1,650 crore via qualified institutional placement (QIP) and set issue price for QIP at Rs 142.15 per share
Pledge Share Details
Emami: Promoters (Sneha Enclave and Sneha Gardens) revoked pledge of 20 lakh shares between June 21-23.
JSW Energy: Promoters (Indusglobe Multiventures and JSW Investments) revoked pledge of 2.36 crore shares between June 21-23. As reported on June 24
Emami: Promoters (Sneha Enclave and Sneha Gardens) revoked pledge of 20 lakh shares between June 21-23.
JSW Energy: Promoters (Indusglobe Multiventures and JSW Investments) revoked pledge of 2.36 crore shares between June 21-23. As reported on June 24
Stocks To Watch
LIC Housing Finance: To issue 4.54 crore shares at Rs 514.25 each to Life Insurance Corporation of India on a private placement basis. LIC’s shareholding in the company after the proposed preferential allotment of shares will increase to 45.24% from 40.31%.
Indian Bank: Approved the closure of QIP on June 24 and set issue price at Rs 142.15 per share. Received application forms for an amount aggregating to Rs 1,650 crore from eligible Qualified Institutional Buyers.
Union Bank of India: Allotted Basel Ill Compliant Tier II Bonds of face value of Rs 10 lakh each aggregating to Rs 850 crore on private placement basis. The coupon rate has been set at 7.19% per annum for a period of 10 years.
Laurus Labs: CARE Ratings has upgraded the credit rating of the long-term banking facilities of the company to AA/Stable from AA-/Positive.
Aarti Industries: Authorised the opening of QIP on June 24. The floor price of Rs 899.77 per share is at a premium of 3.21% to Thursday’s closing price. Board to meet on June 30 to approve the issue price for equity shares to be allotted to the qualified institutional buyers.
PTC India: Approved a Letter of Intent dated June 17, for acquisition of the energy consulting business undertaking of IL&FS Energy Development Company, a group company of IL&FS, for an undisclosed value, on a slump sale basis.
Asian Granito India: Crystal Ceramics Industries, a material subsidiary of the company, has invested Rs 25 crore for capacity expansion at its Mehsana Plant in Gujarat. This capacity addition will increase total capacity of Crystal Ceramics
to 36,000 SQMTS/day. Earnings: JSW Energy, Hindustan Copper, Indraprastha Gas, Balmer Lawrie & Co, Banco Products (India), Oswal Greentech, Finolex Industries, Forbes & Company, Godfrey Phillips India, HCL Infosystems, Orient Refractories, PNC Infratech, Apex Frozen Foods, Antony Waste Handling Cell, Hexa Tradex, India Glycols, Ind-Swift Laboratories, Inox Wind, KCP, Maharashtra Seamless, MSTC, NCL Industries, Pix Transmissions, Puravankara, Shree Renuka Sugars, State Trading Corporation Of India, Tajgvk Hotels & Resorts, Technocraft Industries (India), United Drilling Tools, Voltamp Transformers
LIC Housing Finance: To issue 4.54 crore shares at Rs 514.25 each to Life Insurance Corporation of India on a private placement basis. LIC’s shareholding in the company after the proposed preferential allotment of shares will increase to 45.24% from 40.31%.
Indian Bank: Approved the closure of QIP on June 24 and set issue price at Rs 142.15 per share. Received application forms for an amount aggregating to Rs 1,650 crore from eligible Qualified Institutional Buyers.
Union Bank of India: Allotted Basel Ill Compliant Tier II Bonds of face value of Rs 10 lakh each aggregating to Rs 850 crore on private placement basis. The coupon rate has been set at 7.19% per annum for a period of 10 years.
Laurus Labs: CARE Ratings has upgraded the credit rating of the long-term banking facilities of the company to AA/Stable from AA-/Positive.
Aarti Industries: Authorised the opening of QIP on June 24. The floor price of Rs 899.77 per share is at a premium of 3.21% to Thursday’s closing price. Board to meet on June 30 to approve the issue price for equity shares to be allotted to the qualified institutional buyers.
PTC India: Approved a Letter of Intent dated June 17, for acquisition of the energy consulting business undertaking of IL&FS Energy Development Company, a group company of IL&FS, for an undisclosed value, on a slump sale basis.
Asian Granito India: Crystal Ceramics Industries, a material subsidiary of the company, has invested Rs 25 crore for capacity expansion at its Mehsana Plant in Gujarat. This capacity addition will increase total capacity of Crystal Ceramics
to 36,000 SQMTS/day. Earnings: JSW Energy, Hindustan Copper, Indraprastha Gas, Balmer Lawrie & Co, Banco Products (India), Oswal Greentech, Finolex Industries, Forbes & Company, Godfrey Phillips India, HCL Infosystems, Orient Refractories, PNC Infratech, Apex Frozen Foods, Antony Waste Handling Cell, Hexa Tradex, India Glycols, Ind-Swift Laboratories, Inox Wind, KCP, Maharashtra Seamless, MSTC, NCL Industries, Pix Transmissions, Puravankara, Shree Renuka Sugars, State Trading Corporation Of India, Tajgvk Hotels & Resorts, Technocraft Industries (India), United Drilling Tools, Voltamp Transformers
Insider Trades
Adani Green Energy: Promoter Infinite Trade and Investment bought 10 lakh shares on June 23.
Jubilant Ingrevia: Promoter Miller Holdings Pte bought 3.85 lakh shares between June 22-23.
JK Cement: Promoter Ramapati Singhania sold 2,000 shares on June 23.
Persistent Systems: Promoter Sulabha Deshpande sold 9.980 shares on June 22.
Page Industries: Promoters (Sunder Genomal, Ramesh Genomal and Nari Genomal) sold 12,765 shares between June 21-23.
Surya Roshni: Promoter Surya Roshni Employees Welfare Trust bought 55,000 shares between June 21-23.
Ultramarine & Pigments: Promoters (Sridhar Sundararajan HUF and Kala Sundarvedha) sold 3,531 shares on June 23.
Valiant Organics: Promoter Dhanvanti Gala sold 40,347 shares between June 22-23.
Adani Green Energy: Promoter Infinite Trade and Investment bought 10 lakh shares on June 23.
Jubilant Ingrevia: Promoter Miller Holdings Pte bought 3.85 lakh shares between June 22-23.
JK Cement: Promoter Ramapati Singhania sold 2,000 shares on June 23.
Persistent Systems: Promoter Sulabha Deshpande sold 9.980 shares on June 22.
Page Industries: Promoters (Sunder Genomal, Ramesh Genomal and Nari Genomal) sold 12,765 shares between June 21-23.
Surya Roshni: Promoter Surya Roshni Employees Welfare Trust bought 55,000 shares between June 21-23.
Ultramarine & Pigments: Promoters (Sridhar Sundararajan HUF and Kala Sundarvedha) sold 3,531 shares on June 23.
Valiant Organics: Promoter Dhanvanti Gala sold 40,347 shares between June 22-23.
Trading Tweaks
Ex-Date Interim Dividend: R Systems International
Ex-Date Final Dividend: Supreme Petrochem
Ex-Date Dividend: Vimta Labs
Price Band Revised From 10% To 5%: Somany Ceramics
Record Date Stock Split: Inventure Growth & Securities
Record Date Dividend: Adani Total Gas, Adani Ports and SEZ, Torrent Power
Move Out Of Short-Term ASM Framework: Action Construction Equipment, Future Lifestyle Fashions, Marksans Pharma, Arshiya, Anup Engineering, GTL Infrastructure
Move Into ASM Framework: GTL Infrastructure, NCL Industries
Ex-Date Interim Dividend: R Systems International
Ex-Date Final Dividend: Supreme Petrochem
Ex-Date Dividend: Vimta Labs
Price Band Revised From 10% To 5%: Somany Ceramics
Record Date Stock Split: Inventure Growth & Securities
Record Date Dividend: Adani Total Gas, Adani Ports and SEZ, Torrent Power
Move Out Of Short-Term ASM Framework: Action Construction Equipment, Future Lifestyle Fashions, Marksans Pharma, Arshiya, Anup Engineering, GTL Infrastructure
Move Into ASM Framework: GTL Infrastructure, NCL Industries
Money Market Update
The rupee ended at 74.16 against the U.S. Dollar on Thursday as compared to Wednesday's closing of 74.28.
The rupee ended at 74.16 against the U.S. Dollar on Thursday as compared to Wednesday's closing of 74.28.