Menu

Author Archives: Shanti Pandey

  • Home>
  • Archives for Shanti Pandey
Zee5 reported a net profit of Rs. 122 cr. 
Business, Equities, Markets, Research Reports - August 31, 2022

Zee5 reported a net profit of Rs. 122 cr. 

Zee5 reported a net profit of Rs. 122 cr. 

Total revenue increased 4% year on year to Rs. 1846Cr.Ad revenue increased 5.4% year on year to Rs970 Cr, while subscription revenue decreased 5.1% year on year to Rs772 Cr. The EBITDA margin was at a multiyear low and declined by 31.5% YoY to Rs236Cr. with a margin of 12.8. The adjusted PAT declined by 45.3% YoY to Rs122 CR. with a margin of 6.6%. ZEE5 revenues declined by 1.1% QoQ to Rs.15 Cr., with global Monthly Average Users and Daily Active Users of 10 Cr. and 1 Cr., respectively. They also launched 38 new shows and movies in 1QFY23, which included 8 originals, and the EBITDA loss stood at Rs. 23Cr.

Current Quarter Operations:

The company launched 26 new shows on linear TV. The TRAI has revised the NTO 2.0 implementation timeline to November 2022. As of June 2022, the outstanding from Dish is Rs. 1900Cr. There are receivables of Rs 35 Cr. outstanding from Siti. In a stable macro environment, the loss of revenue on the withdrawal of Zee Anmol from FTA could be recouped within 1 year through 40% and 60% of subscription and advertisement revenues, respectively. ZEE5 has undertaken a price hike from Rs.499 to Rs.599 in March and then to Rs.699 in July. Around Rs. 25Cr. of the Rs. 37Cr. sequential increase in inventory is related to movies.The over-the-top (OTT) industry is anticipated to expand from Rs 2,590 crore in 2018 to Rs 11,944 crore by 2023, representing a compound annual growth rate of 36%.

The analysis warns that this could result in a recurrence of the 1980s VCR/VCP/DVD boom industry’s abrupt demise, given the exponential growth of multiplexes across metro and urban areas during the early 2000s. In a first-of-its-kind move, renowned OTT platform ZEE5 has collaborated with T-Hub. This is the first time that a streaming platform has joined forces with an innovation project for the promotion of a show. The ZEE5 team was at T-Hub to spread the word about their latest show, Hello World, recently.

Valuations:

The company has reported an EPS of Rs. 1.11 for the period ended June 30, 2022 as compared to Rs. 2.23 for the period ended June 30, 2021. The ROCE and ROE stood at 14.8% and 9.98%, respectively. The stock is trading at a P/E of 26.4x, which is not expensive, and a 5-year P/E of 24.4x. The EBITDA multiple is 13.5x and has an interest coverage ratio of 28.8x. The price to book ratio is at 2.27x, which has a book value of Rs.113. The scrip was trading at Rs.257, up by 2.25% on Tuesday.

, , , 0 Comment
Read More
Business, Entertainment, Markets, Result Updates - August 30, 2022

Sun TV reported a net profit of Rs. 493.99 cr.

Sun TV reported a net profit of Rs. 493.99 cr.

The Chennai-based company reported a 35.32% rise in consolidated profit after tax to Rs 493.99 crore in the first quarter that ended June. The company had reported a profit after tax of Rs 365.03 crore in the April-June period a year ago. Sun TV’s revenue from operations rose 48.88 percent to Rs 1,219.14 crore in the latest June quarter. It was at Rs. 818.587 crores in the year-ago period. Sun TV’s board also approved an interim dividend of 100 percent, which is Rs 5 per share.

Consistent growth will be aided by strong flows.

Sun TV’s ramp-up in viewership in key markets, increasing presence, and increasing foothold in other regional languages, such as Marathi, are positive. Strong flows from IPL monetization and potential from other franchises are accretive. It added that Sun TV is expected to witness continued growth from advertising as big spenders like FMCG ramp up spending, with a buy tag and Rs 642 as a target price. Increasing competition and OTT aggression are key monitorables, it said. They pare down our revenue estimates for FY 23–24 by factoring in slightly lower ad growth. The core broadcasting business is trading at a low valuation of 6.5 times. The digital business also remains a laggard, with no fresh investments in OTT originals. The movie catalogue is large, but a sizable original catalogue is needed to scale up the digital business in the highly fragmented Indian market. OTT content spending remains a key concern, while film content spending will create volatility in earnings.

They also do not have a management outlook on content strategy, margins, growth outlook, and capital allocation ahead, which restricts us from turning constructive, despite lucrative valuations. There is an overall viewership share improvement, which has dipped in recent times. They expect a recovery in key markets like Tamil, Telugu, and Kannada to be a growth driver. The marked ramp-up in SunNXT content is lagging because content spending is lagging.

Valuations:

The company has reported an EPS of Rs. 12.53 for the period ended June 30, 2022, as compared to Rs. 9.27 for the period ending June 30, 2021. The ROCE and ROE stood at 29.1% and 21.6%, respectively. The stock is trading at a P/E of 11.2x, which is not expensive, and a 5-year P/E of 12.2x. a 6.55x EBITDA multiple and a 71.4x interest coverage ratio The price-to-book ratio is at 2.46x, which has a book value of Rs.207. The scrip was trading at Rs. 504, up by 1.43% on Monday.

, , , 0 Comment
Read More
Coastal Corporation Q1 2026: Robust Performance and Rising Profits
Business, Equities, Markets, Research Reports - August 30, 2022

Tips Industries generated a net profit of Rs. 17.17 cr. in Q1 FY23.

Tips Industries generated a net profit of Rs. 17.17 cr. in Q1 FY23.

Tips Industries has reported a total income of Rs. 35.2626 crores during the period ended June 2022 as compared to Rs. 35.4814 crores during March 2022 and Rs. 28.7249 crores during June 2021. The company has posted a net profit of Rs. 17.1793 crores in June 2022 as against a net profit of Rs. 15.9260 crores for the period ended March 2022 and Rs. 15.6298 crores for the period ended June 2021. The operating margin stood at 66% compared to in Q1 FY22, which was lower than the 72% in Q1 FY22. The EBITDA margins were up by 600 bps in Q1 FY23 as against Q4 FY22.

Current quarter operations:

The company released 185 new songs and 142 non-film songs, with 43 film songs under their name. The company now has a collection of around 29,000. songs across all genres and major languages. The Indian digital advertising industry stood at Rs 21,353 crore by the end of 2021, up by Rs 15,782 crore in the previous year. It has grown at a rate of 35.3%. This sustained growth can be attributed to technological advancements, improvements in data science and analytics, and the introduction of policies and regulations, among others. The highest proportion of spending on digital media is claimed by social media (29%, Rs 6,218 crore), closely followed by online video (28%, Rs 5,907 crore).  Paid search claims 23% (Rs 5,039 crore), while display banners claim 16% (Rs 3,420 crore).

By 2023, social media is expected to grow at a CAGR of 29.79%, with a spending share of 29%. On an average, Indians spend 2-3 hours on social media, which is on par with the global average. 73% of the audience belonging to the age group of 45 years to 54 years uses YouTube to watch online content. The listenership on audio streaming services grew by 40% Y-o-Y in the first half of 2020.

 

Valuations:

The company has reported an EPS of Rs.13.25 for the period ended June 30, 2022 as compared to Rs.12.05 for the period ended June 30, 2021. The ROCE and ROE stood at 86.5% and 63%, respectively. The stock is trading at a P/E of 26.1x, which is not expensive, and a 5 year P/E of 28.5x. TIPS industries have an EBITDA multiple of 12.2x and an interest coverage ratio of 721x. The price to book ratio is at 19.2x, which has a book value of Rs.78.8. The scrip was trading at Rs. 1525, down by 1.34% on Monday.

, , , 0 Comment
Read More
Sensex Jumps 450 Points Amid Renewed US-China Trade Hopes and Strong Sectoral Buying
Business, Markets, Result Updates - August 30, 2022

Saregama PAT was Rs. 41 cr. in Q1 FY23.

Saregama PAT was Rs. 41 cr. in Q1 FY23.

PAT increased by 52% year on year to Rs. 41 Cr. in Q1 FY23. The company’s operating revenue rose 61% YoY to Rs. 169 Cr. in Q1 FY23. Saregama’s operating income before content charge, interest and depreciation (OIBCID) rose 54% to Rs. 64 r. in Q1 FY23 from Rs. 42 Cr. in the corresponding quarter last year. The Q1 FY23 PBT stood at Rs. 55 Cr. as against Rs. 36 Cr. in the corresponding quarter last year, with a 52% growth YoY.

Current and future quarter work:

During this quarter, the company launched the music of Mahesh Babu’s Sarkaru Vaari Paata in Telugu; Operation Romeo and Ittu Si Baat in Hindi with music from singers like Arijit Sigh and Jubin Nautiyal. Saregama also released multiple “Originals” songs sung by Neeti Mohan, Stebin Ben, etc. Overall, the company released 186 films and non-film songs across Hindi, Bhojpuri, Gujarati, Punjabi, Tamil, Telugu, Malayalam, Marathi, and Bengali languages. The other highlight of the quarter was the use of songs by brands like Dabur, Vogue Eyewear, TVF, One Card, PhonePe, etc. in their ad films.

With retail markets opening up, Carvaan continued to regain its momentum. The company sold 98k units in Q1, compared to 45k last year. During the last fortnight of June, they also started test marketing two new variants, namely, Music Bar with Karaoke and Carvaan Mobile.

They have completed shooting of our first Malayalam film, “Padavettu,” starring Nivin Pauly. The shooting begins for the next Malayalam film “Kaapa” starring the superstar Prithviraj Sukumaran and the shooting of the first Punjabi film “Oye Makhana” starring Amy Virk. “Hunter-The Invisible Women”, starring Suniel Shetty, is expected to be released soon. Roja and Anbe Vaa are the slot leaders in their respective prime time slots. The Saregama TV Shows YouTube channel garnered 38 million views in Q1FY23. Star India has licensed the remake rights of the TV series “Roja” for the Hindi language. The company continues to create short video content relating to “Bhakti” and “Yoga” exclusively for YouTube. In addition to concerts, the vertical will develop musical theatre IP based on the stories and songs of some of the greatest films in our catalogue, like Disco Dancer and Karz.

Valuations:

The company has reported an EPS of Rs. 2.15 for the period ended June 30, 2022 as compared to Rs. 1.56 for the period ended June 30, 2021. The ROCE and ROE stood at 22.1% and 16.2%, respectively. The stock is trading at a P/E of 46.4x, which is not expensive, and a 5-year P/E of 24.7x. Saregama has an EBITDA multiple of 30.4x and an interest coverage ratio of 43.6x. The price to book ratio is at 5.61x, which has a book value of Rs.71.4. The scrip was trading at Rs. 401, down by 1.43% on Monday.

, , , , 0 Comment
Read More
NATO Eases Defence Spending Demand Following Spain's Objection to 5% GDP Commitment
Business, Markets, Result Updates - August 26, 2022

Ambuja Cements reported a net profit of Rs. 752 for the fiscal year ending June 2022.

Ambuja Cements reported a net profit of Rs. 752 for the fiscal year ending June 2022.

Cement maker Ambuja reported a 14.2% drop in consolidated net profit to Rs 752 crore for the quarter ended June 2022 compared to June 2021. This was due to higher power and fuel costs and freight expenses, while the revenue climbed 15.1% YoY to Rs 8,033 crore.

The consolidated net sales rose 15.1% to Rs 7,943 crore in the April-June period versus the same period last year, while earnings before interest, tax, depreciation and amortisation (Ebitda) fell 39% to Rs 1,115 crore during the quarter. The company’s Ebitda margin stood at 14% during the quarter, a sharp fall from the 26.5 per cent reported in the same period last year. Last week, ACC’s net profit fell 60 percent year-on-year to Rs 227 crore, while net sales grew 15 percent over the year-ago period to Rs 4,468 crore.

Future Prospects

The company reported total expenses of Rs 7,276.72 crore in the June quarter. The expenses increased by 33.09% from Rs 5,467.33 crore in the year-ago period. The sales volume was up 15.1% in the April-June quarter at 7.39 million tonnes per annum (MTPA) from 6.42 MTPA in the corresponding quarter. The company recorded robust volume growth of 15% and top-line growth of 18% in the quarter. However, the April to June 2022 quarter was impacted by rising fuel prices and related inflationary impacts.

The company invested in a 3.2 MTPA brownfield clinker at Bhatapara and a 7.0 MTPA cement grinding expansion at its existing locations (Sankrail and Farakka). A greenfield grinding unit at Barh, Bihar. The company is acquiring limestone reserves to support long-term growth. The recovery in domestic economic activity is gathering strength. Rural consumption should benefit from the likely normal monsoon. The investment activity is expected to be supported by improving capacity utilisation, the government’s capex push, and strengthening bank credit. Geopolitical tensions, elevated commodity prices, supply bottlenecks, and tightening global financial conditions are key factors to look at.

Valuations:

The EPS stood at Rs. 3.79 for June 2022, which was at Rs. 3.32 in March 2022 and Rs. 4.42 in June 2021. The stock has a ROCE of 22.1% and a ROE of 11.8%. The P/E ratio is now 33.1x, up from 20.9x five years ago. The EBITDA is at 13.1x and the return on assets is at 8.94%. The interest coverage ratio is 29.2x and the asset turnover ratio is 0.68. The share is trading at a price of Rs.402, up by 1.35%.

, , 0 Comment
Read More
Shipa Medicare reported an 85 lakh net profit.
Business, Equities, Markets, Research Reports - August 26, 2022

Shilpa Medicare reported an 85 lakh net profit.

Shipa Medicare reported an 85 lakh net profit.

Shipa Medicare has reported a total income of Rs. 269.2583 crores during the period ended June 30, 2022 as compared to Rs. 346.0867 crores during the period ended March 31, 2022. The company has posted a net profit or (loss) of Rs. 0.8485 crores for the period ended June 30, 2022 as against a net profit or (loss) of Rs. 29.5490 crores for the period ended March 31, 2022. Gross margins declined in Q1FY23 due to pricing pressures in both the API and formulation segments.

First domestic player to launch Adalimumab :

To improve cost efficiencies and improve margin profile, the company is working on process changes, backward integration of intermediates, and increasing the scale of operations.In the API business, the company intends to continue its focus on oncology molecules while reducing its dependence on niche non-onco molecules. Shilpa has set up a dedicated block which includes R&D and production blocks. It intends to complete 6 molecules, 2 in FY23 and 4 in FY24, for the exhibit batches. The company is working on specialised polymers and believes there is enough opportunity to grow in the segment. Management expects phase-1 studies to start by CY22-end and complete them in 9 months. Shilpa has been able to stabilise the product for 1 kL. The molecule will start with the grade market, which has small potential, and then move towards formulations. Shilpa intends to give some time for the business to stabilise before looking at an IPO. Shilpa has largely completed the remediation of the Jadcherla formulations unit. Third-party audits of the plant have also concluded without any data integrity issues. Company is constantly in touch with the USFDA with regular updates. On approval, Shilpa is expected to become the first domestic company to launch high-concentration Adalimumab. Given the studies were conducted in the EU, the company intends to pursue launches in the RoW market. The domestic market size for the molecule is Rs. Certain expenses have been capitalised, which will impact P&L, but they are not significant. Capex: Rs 4 billion was earmarked for the Albumin project, of which Rs 1.2 billion has been utilised. Apart from maintenance, there is no major capex for the formulations plant. The Capex for the API business will depend on capacities and the management expects an expense of  Rs400mn-500mn.

The company does not plan more investments in biologics. Onco and other API segments witnessed one-offs during Q1FY23 on account of Ind-Asu requirements and trading revenues, respectively. We believe performance will remain steady going forward, with the USFDA resolution remaining the key to faster growth. Key upside risks are early resolution of the import alert, high-value launches in formulations, and quick success in biosimilars.

Valuations:

EPS is at Rs. 0.10 for the June quarter as compared to Rs. 3.40 in the March quarter and Rs. 0.2 in the June 2021 quarter. The ROCE and ROE are at 5.58% and 3.35%, respectively. The EBITDA stood at 19.2x while the price to book ratio was at 1.81x. The stock was trading at a P/E ratio of 62.0x. The scrip was at Rs.388 on Thursday, up by 0.90%.

 

 

, , , , , 0 Comment
Read More
BHEL Secures Major Power Project Contracts from Adani Group
Business, Editorials, Markets, Research Reports - August 25, 2022

Bhageria India reported a net profit of Rs. 2.38 cr.

Bhageria India reported a net profit of Rs. 2.38 cr.

The net sales were at Rs 108.12 crore in June 2022, down 4.33% from Rs 113.02 crore in June 2021. The quarterly net profit stood at Rs. 2.38 crore in June 2022, down 81.65% from Rs. 12.96 crore in June 2021. The EBITDA stands at Rs. 11.99 crore in June 2022, down 49.83% from Rs. 23.90 crore in June 2021.

Are retained earnings used effectively?

The company earned revenue of Rs.99.59 Cr from the chemical segment, Rs.8 Cr. from solar power and Rs.0.4 Cr. from other segments for the year ending in March 2021. The EBIT from the chemical segment was Rs. 2.43 Cr., Rs. 3.75 Cr. from the solar power segment and Rs. 0.86 from other. The company incurred a finance cost of Rs. 1.08 cr. and other unallocated expenditure of Rs. 2.38 cr. The surplus current assets suggest that Bhageria Industries has a conservative balance sheet and could probably eliminate its debt without much difficulty. Succinctly put, Bhageria Industries boasts net cash, so it’s fair to say it does not have a heavy debt load.

Any business needs free cash flow to pay off debt; accounting profits just don’t cut it. Bhageria Industries has net cash on the balance sheet, but it is still interesting to look at how well the business converts its earnings before interest and tax (EBIT) to free cash flow, because that will influence both its need for, and its capacity to manage debt. Bhageria Industries created free cash flow of 14% of its EBIT. That level of cash conversion undermines its ability to manage and pay down debt. While it is always sensible to investigate a company’s debt, in this case, Bhageria Industries has 152.4m in net cash and a decent-looking balance sheet. So we are not troubled with Bhageria Industries’s debt use. However, not all investment risk resides on the balance sheet.

Valuations:

EPS is at Rs.0.55 for the June quarter as compared to Rs.4.17 in the March quarter and Rs.2.39 in the June 2021 quarter. The ROCE and ROE are at 19.2% and 14.7%, respectively. The EBITDA stood at 6.48x while the price to book ratio was at 1.46x. The stock was trading at a P/E ratio of 12.3x. The scrip was at Rs.170 on Thursday, up by 0.18%.

 

 

, , , , 0 Comment
Read More
Hindalco Industries plans to invest Rs. 15,000 crore in Madhya Pradesh
Business, Editorials, IPO research, Markets, Research - August 25, 2022

ONCG made a profit of Rs. 15205 Cr.

ONCG made a profit of Rs. 15205 Cr.

ONCG reported a standalone profit of Rs 15,205.85 crore for the month of June 2022, up 251% compared to the year-ago period, driven by strong operating performance and top-line growth. The standalone profit in Q1 FY22 stood at Rs 4,334.75 crore. The standalone revenue for the June FY23 quarter grew by 84% to Rs 42,321 crore compared to the corresponding period last fiscal. ONGC had a 91% year-on-year growth in its offshore business at Rs 27,990.4 crore and its onshore business increased by 72% to Rs 14,330.3 crore during the quarter.

Consistent natural gas output

At 1.63 million tons, Oil and Natural Gas Corporation (ONGC) produced 1.7% less oil due to lower output from western offshore. The production decreased by 12.34% in fields run by private businesses. However, compared to April through July 2021, when output was 9.96 million tons, it was only slightly lower during the first four months of the current fiscal, which started on April 1. On August 4, Oil Minister Hardeep Singh Puri tweeted that the trend of diminishing crude oil production had changed. The data from the ministry showed that Vedanta’s Rajasthan block had a lower output than ONGC’s oilfields in Gujarat and Assam.

The natural gas output was nearly steady in July at 2.88 billion cubic metres but was 3.4% higher from April to July at 11.43 bcm. The refineries processed 83.96 million tonnes of crude oil between April and July, operating at 103.87% of their capacity, compared to an operating rate of 92.01% for processing 76.64 million tons. Fuel production increased by 6.23% in July to 21.97 million tonnes and by 11.67% from April to July to 90 million tons.

The company has fixed August 19th, 2022 as the “Record Date” for determining members eligible to receive a final dividend of 3.25 per share (i.e., @ 65%) for the financial year 2021-22.

Valuations:

The EPS stood at Rs. 12.09 for Q1 FY23. The price to book ratio was at 0.73x. The return on assets was at 12.3%. The interest coverage ratio was 24x for June 2021. The EBITDA was at 2.50x. The ROCE and ROE were at 18.0% and 18.2%, respectively. The stock is trading at 3.35x while the five-year P/E ratio is at 7.51x. The scrip closed at Rs.136, up by 1.68% on Wednesday.

 

, , , , 0 Comment
Read More
Easing of risk weights on loans given to MFIs and NBFCs
Banking, Editorials, Equities, Markets, Result Updates - August 24, 2022

DCB Bank’s (DCBB) Q1 FY23 earnings

DCB Bank’s (DCBB) Q1 FY23 earnings:

The PAT for DCB bank was at Rs. 97 cr. in comparison to Rs. 34 cr. from the same quarter a year ago, with a growth of 188%. Total revenue in the June quarter was Rs. 949 Cr., compared to Rs. 920 Cr. in March 2021 and Rs. 846 Cr. in June 2021. There was an 18% growth in advances YOY and a 14% growth in deposits. The Gross NPA as on June 2022 was at 4.21% while the Net NPA was at 1.82 qoq as on June 2022. Both Gross NPA and Net NPA declined sequentially as well as in comparison to last year.

Ratios to improve in the June quarter:

The Provision Coverage Ratio (PCR) was at 69.480 and the PCR without considering Gold Loans NPAs was at 73.39%. The Capital Adequacy Ratio was at 18.47%, with Tier I at 15.44% and Tier ll at 3.03% as per norms. The CASA (Current Account Savings Account) ratio was at 29% in the June quarter compared to 27% in the previous quarter. The savings account balances between 2 lakh and less than 5 lakh rupees had an interest rate of 5.00%, while balances between 5 lakh and less than 10 lakh rupees had an interest rate of 6.00%. On savings account balances between 10 lakh and less than 25 lakh, there is an interest rate of 6.75%. DCB Bank has given a maximum interest rate of 7% on savings account balances between 25 lakh and less than 2 crore. Savings accounts with balances of between 2 crore and less than 50 crore will now earn interest at a rate of 5.50%, while accounts with balances of over 50 crore will now earn interest at a rate of 5.00%.

Due to lower credit costs and better loan growth, gross slippages continued to remain elevated, mainly stemming from the gold portfolio, largely offset by higher recovery and upgrades, resulting in a GNPA of 4.3%. The stress pool continues to remain sticky, but the management expects improving collection efficiency to reflect in better asset quality on the back of a granular and secured portfolio of approximately 95%. With asset quality still stubborn and loan growth looking soft, there is less room for any positive surprise from operating efficiency.

Valuations:

The price to book ratio stood at 0.64x. The return on assets was 0.68%. The interest coverage ratio was 1.22x for June 2021. The return on capital employed was at 6.30% while the return on equity was at 7.37%. The EBITDA was recorded at 14.0x. The (CAR) capital adequacy ratio continues to be strong at 18.47%. The scrip was trading at Rs. 83.1, down by 0.54% on Wednesday.

, , , , 0 Comment
Read More
Everest Kanto reported a total revenue of Rs. 380 Cr.
Business, Editorials, Equities, Result Updates - August 24, 2022

Insecticide India reports a net profit of Rs. 38 Cr.

Insecticide India reports a net profit of Rs. 38 Cr.

In the June quarter, Insecticide India reported total sales of Rs. 561 Cr. The company’s net profit stood at Rs 38 crores as compared to Rs 22 crores in the March quarter. EBITDA was 66 crores in Q1 FY23, compared to 42 crores in Q4 FY22 and 61 crores in Q1 FY22, with EBITDA margins contracting to 90 basis points. In the first quarter of FY23, B2C, B2B, and exports contributed 66%, 29%, and 5%, respectively. The better product mix, coupled with price hikes in the recent past, led to a gross margin improvement of 70bps. The Institutional (B2B) category grew by +30% YoY in 1Q.

New launches to increase demand:

Insecticide India has launched 3 new products in 1Q and intends to launch another 6 products in FY23E. There is a CAPEX of Rs1.1bn largely behind, and the technical synthesis plant is to commence at the end of the year. Going forward, we expect the business to pick up with new launches, a better margin profile of in-licensing, the inauguration of new capacities, and backward integration projects. The management expects double-digit revenue growth with at least 100 bps improvements in margins to be led by better contributions from new product launches and superior product mix in FY23E.

In 1Q FY23, the ITI (innovation turnover index) index was at 12.2%. They have recently received four patents for fungicides and pesticides, with a few more patents to be granted in the subsequent quarters. The company launched 3 new products in 1QFY23: Torry (Maize herbicide), Sargent Xpress (insecticide), and Himax (non-selective weedicide). While the revenues from the recently launched products in FY22-Hachiman, Oxim, and Shinwa grew 3x in 1QFY23. There has been a marginal increase in the CAPEX budget on account of inflationary costs and non-budgeted incidental expenditures. The technical synthesis plant at Dahej is expected to commence operations by the end of 1HFY23. We expect similar growth momentum in FY24. However, the company lowered export revenue guidance by 25% to Rs. 150 crore.

Valuation:

The EPS  stood at Rs.54.0, while the stock is trading at a P/E of 18.5X. The 5-year P/E stood at 11.2x. The EBITDA was at 11.6x and the interest coverage ratio was at 25.7x. The ROCE was at 16% and the ROE was at 12.7%. The scrip closed at Rs.1000, down by 1.06% on Tuesday.

 

 

, , 0 Comment
Read More