MEGHMANI ORGANICS LTD- Q2 FY18

Meghmani Organics Ltd reported strong growth in September quarter FY18. Revenue or Income From Operations rose 11% YOY and stood at Rs. 4607 Mn compared to Rs. 4150 Mn in the current September quarter. Revenue growth has been on the back of 25% growth in exports & 13% growth in domestic business. Profit After Tax galloped at 69% and was reported at Rs. 551 Mn against Rs. 325 Mn corresponding quarter previous year and rose 27% sequentially. EBDITA grew 40% YOY at Rs.1134 Mn compared to Rs. 809 Mn same period previous year. Sequential growth was also robust at 18% in Q2 FY18. Operating costs of the company jumped 7% YOY from Rs. 3355 Mn in Q2 FY17 to Rs. 3579 Mn in the current September quarter. On quarterly basis, there was a decline of 3% in the current quarter.  EBDITA & PAT Margin stood at 24.61% & 11.96% expanding 512 & 412 BP respectively in the current quarter FY18. On sequential basis, EBDITA & Net Profit Margin grew 256 & 385 basis points respectively in Q2 FY18. Higher margins have been reported as raw material, interest costs & depreciation expenditure have declined buttressing the company’s quarterly bottom-line. Raw material costs as a percentage of Net Sales declined from 59.30% to 54.30% in the current September quarter. Interest/finance costs fell 24% YOY from Rs. 133 Mn to Rs. 101 Mn in Q2 FY18. The company has also increased its utilization rate to 78% and production has jumped 43% YOY in the current quarter. Other Income jumped more than 7 times at Rs. 106 Mn compared to Rs. Rs. 14 Mn same period previous year.

Meghmani Organics is a leading manufacturer of pigment & pesticide products in specialty chemicals industry. The company has three main segments, agrochemicals, pigments & basis chemicals contributing 41%, 30% & 26% respectively in the current quarter. Agrochemicals revenues grew 25% YOY and stood at Rs. 1950 Mn whereas Pigment & Chemicals jumped 7% & 13% at Rs. 1459 Mn & Rs. 1271 Mn respectively in current September quarter FY18. Exports have contributed around 50% of total revenues growing 25% YOY in the current quarter. Export growth was fueled by pigments up 39% & agrichemicals rising 26% YOY. Domestic business was supported by strong growth in agrochemicals & basic chemicals but was marginally offset by lower revenues from pigments. We recommend BUY for the stock for medium & long term investment with target price of Rs. 225.

Disclaimer                                       

                                      

The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

BATA INDIA LTD- Q2 FY18

BATA INDIA LTD, one of the most trusted Indian footwear brand reported stable September quarter FY18 with double digit growth for PAT & EBDITA and mild uptick of 1% in Revenues. Revenue was reported at Rs. 5869 Mn against Rs. 5837 Mn same period previous year. PAT or Net Profit  stood at Rs. 429 Mn in the current quarter compared to Rs. 346 Mn same period previous year. EBDITA jumped YOY from Rs. 676 Mn in Q2 FY17 to Rs. 793 Mn in the current Q2 FY18. Sequential growth is negative with respect to Revenue, EBDITA & PAT as September quarter has been somber compared to the previous June quarter. June is the strongest quarter for BATA as schools & educational institutions re-open during the quarter. BATA India is still regarded as the most trusted brand for school & Kids footwear across India. EBDITA Margin was reported at 13.51% in current quarter compared to 11.58% corresponding quarter previous year jumping 193 basis points YOY. Net Profit Margin jumped 138 basis points YOY and was reported at 7.31% in Q2 FY18. Lower finance costs & depreciation declining 39% & 10% respectively improved the Net Profit Margin in the current quarter. Other Income has increased 44% YOY and 28% sequentially in the current quarter. Other Income was reported at Rs. 148 Mn against Rs. 103 Mn same period previous year.

BATA has well maintained its leadership in the branded footwear industry and is working towards being a contemporary lifestyle brand evident from the launch of SS 2017 collection which included international styles for women like Espadrilles and Bata Insolia range in the previous quarter. Women  footwear contributes 26% to total revenues. BATA has been constantly premiumizing its product offering with several new launches in men & women categories like Hush puppies, Naturalizer, North Star as part of its AW17 collections with digital promotions. The company also introduced first of its kind, new category of footwear, TWEENS for 10-14 year olds. BATA has maintained its margins focusing on value added products and coast efficiencies in cost structure.

Bata stands for Trust, Superior Quality & Credibility and it has maintained it for over more than 85 years. In the present scenario, the company has over 1290 Bata stores, sells 50 million pairs and serves 120,000 customers every day. We recommend BUY for the stock for medium & long term investment with target price of Rs. 875.00.

Disclaimer                                       

                                      

The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

KEI INDUSTRIES Ltd - Q2 FY18

KEI INDUSTRIES LTD continued with its double digit growth story in the current September quarter. PAT was reported at Rs. 285 Mn against Rs. 214 Mn corresponding period previous year growing 33% YOY. QOQ, PAT jumped 4% in the current September quarter. Revenue was seen at Rs 7538 Mn rising 12% YOY against Rs. 6756 Mn same period previous year. Revenue or Income from operations declined 8% sequentially. EBDITA was also seen on a firm footing YOY, rising 13% YOY and was reported at Rs. 773 Mn in Q2 FY18 against Rs. 685 Mn corresponding quarter previous year. On quarterly basis, EBDITA declined mildly by 1% in the current quarter. Operating expenditure stood at Rs. 6775 Mn compared to Rs.6090 Mn corresponding quarter previous year, rising 11% YOY whereas on sequential basis, there was a decline of 9%. EBDITA Margin jumped 11 basis points YOY whereas quarterly expansion was 74 basis points. EBDITA Margin stood at 10.25% in Q2 FY18 vis-à-vis 10.14% corresponding quarter previous year. Net Profit Margin stood at 3.78% in the current quarter rising 61 bp YOY and 45 bp on sequentially.  One basis point is 1/100^th of a percentage. 

KEI Industries has three main businesses, Cables, Stainless Steel wire & Trunkey projects. Cables contributed 75% of total revenue and grew 7% YOY. Stainless steel wire business grew 11% YOY and turnkey projects reported yearly growth of 9%. Net Export sales stood at Rs. 1370 Mn in the current quarter against Rs. 1030 Mn corresponding quarter previous year, rising 33% YOY. Major concern area for the company remains interest expense which constitutes 4% of revenues at Rs. 274 Mn in the current September quarter.  Interest expense has declined 9% & 16% YOY and quarterly respectively. Other Income was reported at Rs. 10 Mn in the current quarter compared to Rs. 19 Mn in Q2 FY17.KEI Industries Ltd with market cap of Rs. 26525 Mn is a ranked amongst the top three cable manufacturing companies in India, catering to requirements of a wide spectrum of sectors, such as- Power, Oil Refineries, Railways, Automobiles, Cement, Steel, Fertilizers, Textile And, Real Estate etc. The company has been reporting consistent performance numbers and is expected to improve its margins further in the coming quarters. We recommend BUY for the stock for medium term investment with target price of Rs. 446.

Disclaimer                                       

                                      

The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

UFLEX LTD - RESEARCH REPORT - Q2FY18

SADBHAV ENGINEERING LTD – Q2 FY18

Sadbhav Engineering Ltd reported strong yearly growth for the second quarter FY18 with PAT almost doubling itself and EBDITA rising 20% YOY. Revenue stood at Rs. 6931 Mn for current quarter against Rs. 6156 Mn moving 13% up YOY. EBDITA for Q2 FY18 was reported at Rs. 793 Mn compared to Rs. 661 Mn same period previous year. PAT jumped to Rs. 335 Mn in the current September quarter against Rs. 185 Mn corresponding period previous year growing 81% YOY. Other Income was reported at Rs. 5 Mn in Q2 FY17. Operating expenditure was at Rs. 6143 Mn in the current quarter against Rs. 5503 Mn same period previous year growing 12% YOY. EBDITA & Net Profit Margin were reported at 11.44% & 4.83% respectively in the current September quarter. EBDITA margin expanded 70 basis points whereas Net Profit Margin grew 182 basis points YOY. One basis point is 1/100^th of a percentage. Higher Net Profit Margin was attained on the back of lower finance, depreciation and controlled operating expenditure in the current second quarter FY18. Interest/finance costs fell 3% YOY from Rs. 221 Mn in Q2 FY17 to Rs. 215 Mn in the current quarter whereas depreciation was almost constant at Rs. 251 Mn in the current quarter.

Sadbhav Engineering has four main revenue segments, namely Transport sector which includes BOT & EPC, Irrigation sector, Mining sector & Power Generation. Though Irrigation, mining & power sectors reported dismal numbers, Transport sector grew 34% YOY. Transport sector is the core revenue driver for Sadbhav Engineering Ltd contributing 88% of its revenues and its constituents, BOT & EPC growing 2.2 times 24% respectively YOY. BOT & EPC revenues stood at Rs. 739 Mn & Rs. 5399 Mn against Rs. 333 Mn & 4244 Mn respectively in the current September quarter. Total transport sector revenues stood at Rs. 6138 Mn compared to Rs. 4576 Mn corresponding quarter previous year. We recommend BUY for the stock for medium & long term with target of Rs. 475.  

Disclaimer                                       

                                      

The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

NBCC (India) LTD - Q2 FY18

NBCC LTD reported mixed results for the second quarter FY18 with decline in revenues whereas PAT and EBDITA were strong & stable on the back of controlled operating expenditure. Revenue stood at Rs. 13280 Mn for current quarter against Rs. 15351 Mn declining 13% YOY. EBDITA for Q2 FY18 was reported at Rs. 1212 Mn compared to Rs. 1117 Mn same period previous year growing 8% YOY. Sequential growth was in double digits, 23% in the current September quarter. PAT jumped to Rs. 812 Mn in the current quarter against Rs. 619 Mn corresponding period previous year growing 31% YOY. Sequential growth was at 24% in Q2 FY18. Other Income exhibited de-growth of 6% YOY in Q2 FY18 and stood at Rs. 354 Mn against Rs. 375 Mn same period previous year. Operating expenditure was at Rs. 12423 Mn in the current quarter against Rs. 14609 Mn same period previous year falling 15% YOY & 16% sequentially. EBDITA & Net Profit Margin were reported at 9.12% & 6.12% respectively in the current September quarter. EBDITA margin expanded 185 basis points whereas Net Profit Margin expanded 209 basis points YOY. One basis point is 1/100^th of a percentage. Higher Margins were attained on the back of lower operating cost, depreciation and finance expense in the current second quarter FY18. Finance costs stood at Rs. 70 Mn declining 3% YOY. 

NBCC, a Government of India, Navratna Enterprise with market cap of Rs.245070 Mn has three main segments, Project Management Consultancy (PMC), Real Estate & EPC. About 88% of its revenues have come from PMC segment, followed by EPC contributing 11% and Real Estate constituting just 1% in the current September quarter. PMC segment stood at Rs. 11662 Mn declining 13% YOY. Real Estate & EPC reported Rs. 146 Mn and Rs. 1384 Mn respectively in the current September quarter. The company started its overseas operations in 1977 and has wide global presence in countries such as Turkey, Nepal, Maldives, Mauritius, Oman to name a few. With Central Government’s renewed focus on infrastructure, NBCC will be one of the key beneficiaries in the long run. We recommend BUY for the stock for medium & long term with target of Rs. 385.

Disclaimer                                       

                                      

The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

AMARA RAJA BATTERIES LTD - Q2 FY18

Amara Raja Batteries Ltd reported strong sequential double digit growth for PAT & EBDITA in the current September quarter where as yearly number remained in negative territory.  On yearly basis, Revenue & PAT declined 5% & 7% respectively in the current quarter. Revenue stood at Rs. 14275 Mn against Rs. 15080 Mn in Q2 FY17. Net Profit was reported at Rs. 1273 Mn against Rs. 1363 Mn rising 27% sequentially. EBDITA maintained its positive momentum rising both yearly and quarterly by 4% & 21% respectively in the current September quarter. EBDITA was reported at Rs. 2503 Mn in the current quarter compared to Rs. 2417 Mn corresponding quarter previous year. Operating expenditure declined 7% YOY from Rs. 12782 Mn to Rs. 11894 Mn in the current Q2 FY18 and 20% sequentially. Controlled operating expenditure led to healthy EBDITA & Net Profit margins at 17.54% & 8.91% compared to 16.03% & 9.04% respectively same period previous year. EBDITA Margin jumped 151 BP YOY & 518 BP sequentially. Net Profit Margin declined 13 BP as depreciation & Taxation jumped 28% & 9% YOY. Net Profit Margin jumped 294 BP QOQ. Other Income exhibited mild uptick on yearly basis with 2% YOY and stood at Rs. 122 Mn compared to Rs. 120 Mn corresponding period previous year.

The Automotive battery business exhibited strong growth across segments both in four & two wheeler. Tubular battery sales to HUPS segment have witnessed sustained growth driving volume growth in all verticals of the business which has helped the company to report healthy utilization in the current quarter in all product categories across battery automotive battery business. Industrial Battery business reported significant growth except Telecom which continues to witness disruption leading to lower demand for batteries in the Telecom industry. Rising lead prices increasing cost of material for the company is another factor affecting company’s bottom line. Lead prices have escalated about 25% over the past 12 months.

Amara Raja Batteries Ltd expected to perform better in the long run as the Indian economy is spearheading in vehicle growth, expanding telecommunications, restructuring railways, solar energy, IT & ITes, UPS manufacturers and infrastructure sector. The company is expecting continuous demand growth for automotive batteries in both OE and replacement markets. Capacity utilization across most of the product lines has been healthy during the quarter and the company continues to expand capacities to keep up with growing demand. We recommend BUY for the stock for medium term investment with target price of Rs. 875. 

BALKRISHNA INDUSTRIES LTD - Q2 FY18

BALKRISHNA Industries Ltd, India’s largest ‘Off Highway Tire Manufacturer’ reported strong sequential growth though yearly numbers were subdued. Revenue jumped 18% YOY at Rs. 11144 Mn against Rs. 9455 Mn same period previous year with sequential growth of 10% in the current September quarter.  PAT stood at Rs.2030 Mn against Rs.2429 Mn corresponding period previous year declining 16% YOY but with sequential growth of 33%. The company reported highest ever quarterly volume growth of 16% YOY at 49331 MT in the current September quarter. EBDITA declined 6% YOY and was reported at Rs. 3874 Mn in Q2 FY18 against Rs. 4110 Mn corresponding quarter previous year. On quarterly basis, EBDITA jumped 26% as operating expenditure exhibited mild uptick of 2% in Q2 FY18. Operating expenditure YOY rose 27% from Rs. 6381 Mn in Q2 FY17 to Rs. 8096 Mn in the current September quarter. As a result Margins deteriorated YOY whereas healthy growth was reported on quarterly basis.  EBDITA Margin declined 871 bp YOY and jumped 430 bp sequentially. Net Profit too presented a similar picture, rising 309 bp QOQ and declining 748 bp on yearly basis. One basis point is 1/100^th of a percentage. EBDITA & Net Profit Margin stood at 34.76% & 18.21% in the current quarter compared to 43.47% & 25.69% respectively same period previous year. Profit Before tax was reported at Rs. 3071 Mn in the current quarter vis-a vis Rs.3338 Mn in Q2 FY17. Other Income declined 20% YOY at Rs. 825 Mn in the current September quarter. The company continued its deleveraging exercise and interest costs have been further pruned by 45% on yearly basis.

 Balkrishna Industries Ltd (BKT) is India’s leading global, ‘Off Highway Tire’ player catering to 130 countries through distribution network in Americas, Europe, India and Rest Of the World. BKT with market cap of Rs. 201412 Mn has more than 85% of its earnings dependent on exports. The company has performed in the backdrop of slow global growth and high currency fluctuations. In addition to that BKT is also focused on rationalizing its debt burden by utilizing its high cash holdings.  The company has repaid long term debt of around Rs. 2170 Mn in Q2 FY18.  Current cash holdings stand at Rs. 10660 Mn. We recommend BUY for the stock for medium & long term investment with target price of Rs. 2420. 

Disclaimer                                       

                                      

The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

UFLEX LTD - Q2 FY18

Uflex Ltd, one of the largest flexible packaging materials and solutions company reported Income From Operations/Revenue with a de-growth of 2% YOY at Rs. 15938 Mn compared to Rs. 16245 Mn in the corresponding September quarter FY17. PAT maintained its positive momentum with 4% YOY growth and was reported at Rs. 943 Mn compared to Rs. 904 Mn same period previous year. EBDITA stood at Rs. 2355 Mn with mild uptick of just 1% in the current September quarter and constant sequentially. Operating expenditure was curtailed with 2% de-growth YOY at Rs. 13641 Mn compared to Rs. 13975 Mn in Q2 FY17 whereas on sequential basis operating expenditure declined at a higher rate of 8% in the current September quarter. As a result, EBDITA margins jumped 46 basis points YOY and 100 basis points sequentially even with Revenue moving in negative territory in Q2 FY18. Net Profit Margin on the other hand jumped 35 basis points YOY with sequential rise of 48 basis points. Net Profit Margin was reported at 5.92% compared to 5.56% corresponding quarter previous year. EBDITA Margin stood at 14.78% against 14.32% same period previous year. One basis point is equal to 0.01%. Other Income grew 6% YOY and was reported at Rs. 58 Mn compared to Rs. 55 Mn corresponding quarter previous year in Q2 FY17. In quarterly terms, Other Income rose 53% in the current Q2 FY18. Profit before Tax stood at Rs. 1073 Mn in Q2 FY18 against Rs. 1095 Mn same period previous year, falling 2% YOY. Sequential performance was almost constant with respect to PAT & EBDITA whereas Revenue declined 7% in the current September quarter.

Uflex Ltd is engaged in providing end-to-end flexible packaging solutions to customers viz. packaging design & colour scheme, packaging structure, packaging products such as value added anti-counterfeiting solutions to prevent look alikes & filling machines. Clientele of the company includes Perfetti, Nestle, P&G, Britannia, Fritolay, Tata, Cadbury to name a few. The company has strong global sales and distribution network with customers in about 140 countries. The company’s aseptic packaging material manufacturing plant at Sanand, Gujarat has been commissioned and has commenced operations. Though the September numbers reported subdued growth, volume numbers seem to be stable with sales volume growing 9% YOY. The company continues to reduce its interest burden and control depreciation expenditure to improve its bottom-line. We recommend BUY for the stock for medium & long term investment with target price of Rs. 520.00.

Disclaimer                                       

                                      

The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

PETRONET LNG LTD - RESEARCH REPORT Q2 FY18

NILKAMAL LTD Q2 FY18

NILKAMAL Ltd posted stable yearly numbers with strong sequential growth in September quarter FY18. Profit After Tax grew 6% YOY and 24% sequentially. PAT was reported at Rs. 278 Mn in the current quarter against Rs. 263 Mn same period previous year. EBDITA stood at Rs. 583 Mn compared to Rs. 537 Mn corresponding quarter previous year growing 8% YOY and 22% on quarterly basis. Income from Sales/Revenue fell 7% YOY in the current quarter and stood at Rs. 4647 Mn compared to Rs. 5014 Mn in Q2 FY17. Other income declined heavily by 61% YOY and was reported at Rs.10 Mn in the current September quarter FY18.  Operating Expenditure stood at Rs. 4074 Mn in Q2 FY18 compared to Rs. 4502 Mn same period previous year. Operating expenditure was curtailed 10% on yearly basis and 15% sequentially leading to higher EBDITA and healthy EBDITA Margins. EBDITA margin jumped 183 basis points YOY whereas sequential expansion was even higher by 346 basis points. EBDITA Margin stood at 12.54% in the current quarter against 10.72% corresponding period previous year. Finance costs declined 5% YOY to Rs. 28 Mn in the current September quarter and taxation expenditure fell 27% YOY at Rs. 109 Mn leading to strong Net Profit Margins. Net Profit Margin jumped 74 basis points yearly and was reported at 5.99% against 5.25% same period previous year with sequential jump of 172 basis points. One basis point is 0.01%.

The company’s major revenue source is its Plastics division which contributes 89% of its total revenues and was reported with a de-growth of 5% at Rs. 4191 Mn in the current quarter whereas Lifestyle, furniture, furnishing & Accessories constituting 11% of revenues declined 20% YOY at Rs. 530 Mn in the current September quarter. The company has incurred capital expenditure of Rs. 203 Mn totaling to Rs.480 Mn in the first half year. Nilkamal Ltd is an industry pioneer in the manufacturing business of moulded furniture & material handling products with diversified product profile along with a diversified customer base including household customers, industrial customers and retail buyers. The company also has presence in retail business of lifestyle furniture furnishings and accessories under its brand ‘@home’ & Nilkamal Mattresses. The company’s performance has been impacted by GST in the early part of the second quarter but profitability has been sustained by improving operational efficiency. The company is also incurring additional capex of Rs. 500 Mn in the second half of FY18. We recommend BUY for the stock at target price of Rs. 1820 for medium & long term. 

Disclaimer                                       

                                      

The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.