Results on 10th Nov 2020

Results on 10th Nov 2020

ANALYSIS OF COS REPORTING RESULTS ON 10TH NOV 2020

*STRONG RESULTS + REASONABLE VALUATIONS
HIL Ind
M-cap 1351 cr
Sales up 22%, ebidta up 98% at 92 cr vs 47 cr
Margins at 13.1% vs 8.1% yoy, vs 14.5% qoq
Profit at 94 cr vs 32 cr (last quarter did profit of 50 cr)
Trades at 11x ttm pe, 1.8x pb, roce of 12%

Goodricke Group
M-cap 652 cr
Sales up 37%, ebidta up 26% at 77 cr vs 61 cr
Margins at 22.6% vs 24.5% yoy, vs 15.4% qoq
Profit at 73 cr vs 56 cr (last quarter did profit of 16 cr)
Trades at 24x ttm pe, 2.2x pb, roce of 12%
Earnings volatile due to nature of business

Somany Home Inn.
M-cap 591 cr
Sales flat, ebidta up 51% at 40 cr vs 27 cr (last quarter did loss)
Margins at 9.4% vs 6.3% yoy
Profit at 19 cr vs 6 cr (last quarter did loss of 25 cr)
Trades at 2.2x pb, roce of 10%

Deccan cement: Sales up 47%, ebidta up 212% – 7x ttm pe
Anjani Portland: sales up 1%, ebidta up 47%, pat up 118% – ttm pe 12x

RCF
M-cap 2441 cr
Sales down 5%, ebidta up 389% at 199 cr vs 41 cr
Margins at 8.6% vs 1.7%
Profit at 104 cr vs loss of 22 cr (last quarter did profit of 19 cr)
Trades at 0.8x pb but low roce of 6%

Minda Ind
M-cap 9210 cr
Stock 20% away from 52-week high
Sales up 8%, ebidta up 33%, pat up 63%
Margins at 14.7% vs 11.9%
Trade at 4.5x pb

Lux Ind
M-cap 3613 cr
Stock 15% away from 52-week high
Sales up 9.4%, ebidta up 38%, pat up 26%
Margins at 18.7% vs 14.7%
Trade at 26x ttm pe, 7x pb, 29% roce

STRONG RESULTS + RICH VALUATIONS
Alkyl Amines
M-cap 6700 cr
Stock 9% away from 52-week high
Sales up 24%, ebidta up 65%, pat up 21%
Margins at 32.7% vs 24.6%
Trade at 35x ttm pe, 12.5x pb (even expensive than bata on p/b)

VST Tillers Ind
M-cap 1518 cr
Sales up 37%, ebidta at 38 cr vs 4 cr yoy, vs 16 cr qoq
Margins at 17% vs 2.5% yoy, vs 11.2% qoq
Profit at 30 cr vs 6 cr (last quarter did profit of 17 cr)
Trades at 64x ttm pe, 2.6x pb, roce of 6%

WEAK RESULTS + EXPENSIVE VALUATIONS
Bata India
Sales down 49%, ebidta down 90%, margins at 4.9% vs 25.7%
Net loss at 44 cr vs profit of 71 cr, reported loss of 101 cr last quarter
Trade at 130x ttm pe (not best way to see due to losses) but even pb 9.3x

Symphony
Sales down 30%, ebidta down 57%, margins at 14% vs 23%
Pat at 16 cr vs 58 cr
Trade at 49x ttm pe, 8.7x pb

Aarti Industries
M-cap 18864 cr
Margins at 21.7% vs 25.7%
Pat down 5%
Great co but trade at 40x ttm pe, 6.3x pb

WEAK RESULTS BUT PRICED IN??
Rites
M-cap 6058 cr
Stock 27% below 52-week high price
Sales down 41%, ebidta down 35%, pat down 44%
12x ttm pe, 2.2x pb, 31% roce

Maharashtra Seamless
M-cap 1565 cr
Stock 48% below 52-week high price
Sales down 26%, ebidta down 23%, pat down 55%
6.7x ttm pe, 0.5x pb, 10.5% roce

Safari Ind
M-cap 1020 cr
Stock 38% below 52-week high price
Sales down 63%, ebidta loss at 5 cr vs profit 17 cr yoy, vs loss of 19 cr qoq
Trade at 5x ttm pb
V STRONG RESULTS IN MICRO-CAP
Guj. Themis Bio.
Stock 1% away from 52-week high
M-cap 392 cr
Sales up 65%, ebidta up 656% at 15 cr vs 2 cr, pat up 609% at 11 cr vs 2 cr
Margins at 54% vs 11.8% (seriously??)
Trades at 14x ttm pe

TD Power Systems
Stock 42% away from 52-week high
M-cap 341 cr
Sales up 31%, ebidta up 186%, pat up 224%
0.8 pb, 5.7% roce

Gandhi Special Tubes
M-cap 269 cr
Stock 31% away from 52-week high
Sales up 42%, ebidta up 103%, pat up 21%
14x ttm pe, 1.8 pb, 14.6% roce

Rubfila Intl.
M-cap 206 cr
Stock 13% away from 52-week high
Sales up 33%, ebidta up 235%, pat up 214%
17x ttm pe, 1.3 pb, 15% roce

BCL Ind
M-cap 153cr
Stock 28% away from 52-week high
Sales up 55%, ebidta up 27%, pat up 67%
5.5x ttm pe, 0.6 pb, 13% roce

BAD RESULTS IN SMALL/MID-CAP SPACE
Shree Digvijay Cement
Sales down 1%, ebidta down 41%, pat down 70%

Sanghi Ind
Sales down 16%, ebidta down 2%, pat down 33%

Bodal Chemicals
Sales flat, ebidta down 12%, pat down 47%

Varinder Bansal

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

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