Results declared on (17th July 2020) & (18th July 2020)

Results declared on (17th July 2020) & (18th July 2020)

Granules stand out still for me
GRAN has guided for 23% EBITDA margin for FY21. It has also guided for
30%/25% YoY PAT growth for FY21/FY22E.
Co should deliver Rs 20/sh as EPS in FY22

GOOD but valuations stretched
Hathway Cables
Sales down 7% but EBIDTA up 27%, margins at 28.2% Vs 20.7%, PAT at 66 cr vs loss of 10 cr (Last qtr PAT was 49 cr)
Finance cost at 33 cr vs 82 cr
Other exp at 67 cr vs 126 cr
TTM P/E 70x due to volatile earnings
Stock moved from 10.6 to 43.6
Hathway Cable M-cap 7700 cr with TTM PAT at 179 cr & last 7 years co had made losses
Granules M-cap is Rs 6700 cr with TTM PAT at 364 cr with guidance of 30%/25% YoY PAT growth for FY21/FY22E

Good but PAT boosted by lower expenses
IIFL Securities
Sales down 9% yoy, down 24% QoQ, margins 25% vs 19% yoy, 25% qoq, pat at 42 cr vs 125 cr yoy, 37 cr qoq…..
PAT boosted due to lower Finance cost and Employee Expense
Capital market activity segment up 1% QoQ, up 2% YoY; Capital market activity PBT at 51.3 cr vs 41.5 cr QoQ, at 37.6 cr YoY
Retail broking revenue was Rs 66 Cr for the quarter ended June 30, 2020, up 28% on y-o-y basis
FY20 pat down 14%

Responsive Ind
Sales up 10% yoy at 111 cr but down qoq, ebidta at 10 cr vs nil yoy but was 27 cr in Q4, 32 cr in q3, 28 cr in q2 (so q1fy20 is an aberration), margins at 9.2% vs 0.5% yoy but was 21.7% in q4, 21.4% in q3, 19% in q4, reported loss this quarter
Manufacturer and Supplier of PVC flooring, Vinyl Flooring&SPC Flooring

Banco Products
Sales down 30%, ebidta down 37%, pat down 41% (8x P/E TTM)

IFGL Refractories
Sales down 12%, ebidta down 22%, reports a net loss at 14 cr

Selan Exploration
Sales down 5%, ebidta down 42%, margins at 25% vs 41%, net loss of 3 cr vs 11 cr profit (TTM P/E 4.5x, P/B 0.5x, roce 15%)

SNL Bearing: sales at 3 cr vs 10 cr

GNA Axles
Sales down 68%, ebidta down 87%, reports a net loss of 7 cr
Sales now at 80 cr vs run-rate of 200 cr in a qtr
Ttm p/e 13.5x, roce 20%, d/e 0.8

Amal Ltd
Chemical company engaged in manufacturing and marketing of products based on Sulphur.
Sales down 48%, ebidta down 65%, pat down 64% (TTM P/E 18x, P/B 5.3x)
Imagine Granules trade at 15x

Varinder Bansal

Managing Partner, Pantomath Asset Management. Ex-Corporate Editor & Head of Research, CNBC-TV18

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