Market Wizard
FREE FINANCIAL EDUCATIONAL TELEGRAM CHANNEL
Disclaimer : This channel DOES NOT provide any stock market related advice or recommendation
All the posts appearing in the channel are only for educational and informational purposes.
ALL RIGHTS RESERVED!!!
https://t.me/marketswizard
FREE FINANCIAL EDUCATIONAL TELEGRAM CHANNEL
Disclaimer : This channel DOES NOT provide any stock market related advice or recommendation
All the posts appearing in the channel are only for educational and informational purposes.
ALL RIGHTS RESERVED!!!
https://t.me/marketswizard
Telegram
Market Wizard
FREE FINANCIAL EDUCATIONAL CHANNEL
Disclaimer : We are not SEBI Registered. Please consult your financial advisor before investing.
All the posts appearing in the channel are only for educational and informational purposes.
ALL RIGHTS RESERVED!!!
Disclaimer : We are not SEBI Registered. Please consult your financial advisor before investing.
All the posts appearing in the channel are only for educational and informational purposes.
ALL RIGHTS RESERVED!!!
*ITC Ltd.* | *CMP* Rs. 212 | *M Cap* Rs. 260970 Cr | *52 W H/L* 239/163
(Nirmal Bang Retail Research)
*Result is above expectations*
Revenue from Operations came at Rs. 13247.3 Cr (-7.6% QoQ, 35.5% YoY) vs expectation of Rs. 11307.6 Cr, QoQ Rs. 14342.3 Cr, YoY Rs. 9774.1 Cr
EBIDTA came at Rs. 4443.7 Cr (-8.8% QoQ, 50.9% YoY) vs expectation of Rs. 3989.6 Cr, QoQ Rs. 4871.1 Cr, YoY Rs. 2945.6 Cr
EBITDA Margin came at 33.5% vs expectation of 35.3%, QoQ 34%, YoY 30.1%
Adj. PAT came at Rs. 3276.5 Cr vs expectation of Rs. 3130.8 Cr, QoQ Rs. 3755.5 Cr, YoY Rs. 2511 Cr
Quarter EPS is Rs. 2.7
Share is trading at P/E of 16.5x FY22E EPS
(Nirmal Bang Retail Research)
*Result is above expectations*
Revenue from Operations came at Rs. 13247.3 Cr (-7.6% QoQ, 35.5% YoY) vs expectation of Rs. 11307.6 Cr, QoQ Rs. 14342.3 Cr, YoY Rs. 9774.1 Cr
EBIDTA came at Rs. 4443.7 Cr (-8.8% QoQ, 50.9% YoY) vs expectation of Rs. 3989.6 Cr, QoQ Rs. 4871.1 Cr, YoY Rs. 2945.6 Cr
EBITDA Margin came at 33.5% vs expectation of 35.3%, QoQ 34%, YoY 30.1%
Adj. PAT came at Rs. 3276.5 Cr vs expectation of Rs. 3130.8 Cr, QoQ Rs. 3755.5 Cr, YoY Rs. 2511 Cr
Quarter EPS is Rs. 2.7
Share is trading at P/E of 16.5x FY22E EPS
*Polycab – Q1FY22 Concall Update – Nirmal Bang Sec.*
*Outlook – Long Term Positive*
*_Second half is likely to be better than the first half of the year_*
The stock is trading at x FY22E consensus earnings
• Company’s performance has been encouraging, despite challenges posed by lockdown in many states
• On the growth side, construction activity has continued for better part of the quarter, albeit at a slower pace.
• On the flip side, raw material volatility continued. *The inflation in the input basket was in low-teens during the quarter and the blended price hike was in high single to just double-digit*. In mid-June, sharp correction in copper prices caused further complications to an improving demand scenario as dealers refrained from stocking in anticipation of price cuts. Accordingly, inventory levels in distribution channel dipped significantly with secondary sales tracking ahead of primary sales. The management believes this is a temporary sentimental setback and primarily will eventually catch up with underlying demand.
• *July seems to be panning out better than previous months. Retail outlets across the market are largely open at the moment and activity is picking up.*
• Cost saving initiatives were more than offset by unfavorable operating leverage and input cost volatility, this limited EBITDA margin to 7.3%. However, *management is confident of maintaining normal level of margins i.e. 11-13% EBITDA on full year basis*
• Polycab acquired Silvan Innovation Labs, last month. It is a Bangalore-based technology company focused on providing cutting edge automation offerings for homes, offices, banks, retail outlets, hotels and other spaces.
• Capex – Rs 300 cr for FY22
• *On 5 yr (by FY26) basis the company is targeting Rs20,000 cr revenues*
• Receivable days in current quarter were lower due to lower sales and inventory days were higher. The management expects both these numbers to normalise going forward.
• *Under project Udaan, the company has identified cost saving options to the tune of ~280 bps which would be reflected in coming 1-2 yrs*
• Generally, Q4 contributes around 28-30% of yearly sales whereas Q1 contributes 22%
*_Wires and Cables_*
• Wires and Cables revenue doubled on YoY basis despite challenges posed by the second wave
• Profitability was impacted by raw material inflation and adverse operating leverage
*_FMEG_*
• FMEG revenue increased by 39% YoY. The business momentum was affected by closure of retail shops across many large states.
• Fans grew in healthy double digits however lockdowns in April and May, which are key summer stocking periods, hurt the momentum. Premiumization trend continued.
• Adverse operating leverage affected profitability – due to higher fixed cost on two accounts (a) higher increments given to employees after 2 yrs (b) higher A&P spends
• *Maintained earlier guidance of high single digit EBIT margins in 2 yrs*
*Outlook – Long Term Positive*
*_Second half is likely to be better than the first half of the year_*
The stock is trading at x FY22E consensus earnings
• Company’s performance has been encouraging, despite challenges posed by lockdown in many states
• On the growth side, construction activity has continued for better part of the quarter, albeit at a slower pace.
• On the flip side, raw material volatility continued. *The inflation in the input basket was in low-teens during the quarter and the blended price hike was in high single to just double-digit*. In mid-June, sharp correction in copper prices caused further complications to an improving demand scenario as dealers refrained from stocking in anticipation of price cuts. Accordingly, inventory levels in distribution channel dipped significantly with secondary sales tracking ahead of primary sales. The management believes this is a temporary sentimental setback and primarily will eventually catch up with underlying demand.
• *July seems to be panning out better than previous months. Retail outlets across the market are largely open at the moment and activity is picking up.*
• Cost saving initiatives were more than offset by unfavorable operating leverage and input cost volatility, this limited EBITDA margin to 7.3%. However, *management is confident of maintaining normal level of margins i.e. 11-13% EBITDA on full year basis*
• Polycab acquired Silvan Innovation Labs, last month. It is a Bangalore-based technology company focused on providing cutting edge automation offerings for homes, offices, banks, retail outlets, hotels and other spaces.
• Capex – Rs 300 cr for FY22
• *On 5 yr (by FY26) basis the company is targeting Rs20,000 cr revenues*
• Receivable days in current quarter were lower due to lower sales and inventory days were higher. The management expects both these numbers to normalise going forward.
• *Under project Udaan, the company has identified cost saving options to the tune of ~280 bps which would be reflected in coming 1-2 yrs*
• Generally, Q4 contributes around 28-30% of yearly sales whereas Q1 contributes 22%
*_Wires and Cables_*
• Wires and Cables revenue doubled on YoY basis despite challenges posed by the second wave
• Profitability was impacted by raw material inflation and adverse operating leverage
*_FMEG_*
• FMEG revenue increased by 39% YoY. The business momentum was affected by closure of retail shops across many large states.
• Fans grew in healthy double digits however lockdowns in April and May, which are key summer stocking periods, hurt the momentum. Premiumization trend continued.
• Adverse operating leverage affected profitability – due to higher fixed cost on two accounts (a) higher increments given to employees after 2 yrs (b) higher A&P spends
• *Maintained earlier guidance of high single digit EBIT margins in 2 yrs*
Jindal Steel and Power will be going for competitive bidding process for sales of Jindal Power limited with base price of Rs.7401cr offered by Promoter company. Positive
*Symphony Ltd.* | *CMP* Rs. 1069 | *M Cap* Rs. 7478 Cr | *52 W H/L* 1530/803
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 230 Cr (-32.2% QoQ, 49.4% YoY) vs QoQ Rs. 339 Cr, YoY Rs. 154 Cr
EBIDTA came at Rs. 10 Cr (-88.1% QoQ, -300% YoY) vs QoQ Rs. 84 Cr, YoY Rs. -5 Cr
EBITDA Margin came at 4.3% vs QoQ 24.8%, YoY -3.2%
Adj. PAT came at Rs. 6 Cr vs QoQ Rs. 62 Cr, YoY Rs. 2 Cr
Quarter EPS is Rs. 0.9
Share is trading at P/E of 42.2x FY22E EPS
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 230 Cr (-32.2% QoQ, 49.4% YoY) vs QoQ Rs. 339 Cr, YoY Rs. 154 Cr
EBIDTA came at Rs. 10 Cr (-88.1% QoQ, -300% YoY) vs QoQ Rs. 84 Cr, YoY Rs. -5 Cr
EBITDA Margin came at 4.3% vs QoQ 24.8%, YoY -3.2%
Adj. PAT came at Rs. 6 Cr vs QoQ Rs. 62 Cr, YoY Rs. 2 Cr
Quarter EPS is Rs. 0.9
Share is trading at P/E of 42.2x FY22E EPS
Kitex Garments receives investment offer from Sri Lanka
https://www.moneycontrol.com/news/business/kitex-garments-kitex-group-kerala-kitex-telangana-investment-kitex-sri-lanka-offer-dr-d-venkateshwaran-7219561.html
https://www.moneycontrol.com/news/business/kitex-garments-kitex-group-kerala-kitex-telangana-investment-kitex-sri-lanka-offer-dr-d-venkateshwaran-7219561.html
Moneycontrol
Kitex Garments Receives Investment Offer From Sri Lanka
Sri Lankan Deputy High Commissioner to Chennai, Dr D Venkateshwaran told Kitex MD Sabu Jacob there would be “complete co-operation” if Kitex were to invest in Sri Lanka.
Coffee ⬆️+ Ethyl acetate ⬆️= Decaffeinated Coffee ☕️
Ethyl acetate (EA) is an efficient green solvent & its wide range of applications👇
Pharmaceutical
Surface coating & thinner
Adhesives
Rubber & polymers
Flavors & essences
Nail polish remover
Decaffeinating of Tea & Coffee
#JubilantIngrevis is 7th largest mfg of EA in the world
Jubilant Ingrevia being the 7th largest producer globally of EA.
- With US Coffee futures up by 17% looks like demand for EA with improve drastically.
Ethyl acetate (EA) is an efficient green solvent & its wide range of applications👇
Pharmaceutical
Surface coating & thinner
Adhesives
Rubber & polymers
Flavors & essences
Nail polish remover
Decaffeinating of Tea & Coffee
#JubilantIngrevis is 7th largest mfg of EA in the world
Jubilant Ingrevia being the 7th largest producer globally of EA.
- With US Coffee futures up by 17% looks like demand for EA with improve drastically.