Results on 11th Nov 2020

ANALYSIS OF COS REPORTING RESULTS ON 11TH NOV 2020

Shree Cement: excellent performance; upgrades all over
IGL: EBITDA beat on lower other expenditure, Volumes in-line; recovery to pre-COVID levels by end-3Q
Apollo Hospital: big market beat, 11% margins vs expected 6.7% (stock was up yesterday)
Aurobindo: results in line to marginally better – concall imp (stock was up yesterday)

ANALYSIS OF COS REPORTING RESULTS ON 11TH NOV 2020
*STRONG RESULTS + REASONABLE VALUATIONS
KCP Ltd: VV STRONG
Sales up 16%
Ebidta up 175% at 91 cr
Margins at 22.95% vs 9.7%
Profit at 30.4 cr vs loss of 2 cr
1H PAT at 63.7 cr vs 25.8 cr (Last full year profit was 58.3 cr)
Cement segment sales at 290.3 cr vs 181 cr, ebit at 65.4 cr vs loss 14.2 cr yoy, vs 42.8 cr qoq
M-cap 850 cr, 1h pat 64 cr (sugar is not still firing) – trade around 8x pe

NALCO
M-cap 6399 cr
Sales up 0.5%, ebidta up 758% at 276 cr vs 32 cr
Margins at 11.6% vs 1.4%
PAT at 107 cr vs loss of 28 cr
Trade at 0.6x pb with 2% roce
Alumina sales rose 29% sequentially to 286kt

Ashoka Buildcon
M-cap 1825 cr
Sales up 14.6%, ebidta up 6% at 392 cr vs 368 cr yoy, vs 247 cr qoq
Margins at 33% vs 35.5%
PAT at 73 cr vs 18 cr yoy, vs loss of 28 cr qoq
Trade at 12x ttm pe with 14% roce

Munjal Auto
M-cap 557 cr
Sales up 104%, ebidta up 93% at 21 cr vs 11cr yoy, vs loss of 2 cr qoq
Margins at 3.2% vs 3.3%
PAT at 8 cr vs 2 cr yoy
Trade at 2x ttm pb with 4.7% roce

STRONG RESULTS + RICH VALUATIONS
Metropolis
M-cap 9632 cr
Sales up 29%, ebidta up 45%, PAT up 40%
Trade at 88x ttm pe, 18x pb with 40% roce


WEAK RESULTS BUT PRICED IN??
Prestige Estate
Sales down 2.5%, ebidta down 12.3%, margins at 28.5% vs 31.7%, pat down 40%
Stock still nearly 40% away from 52-week high
Trade at 2x pb, 25x pe

VA Tech Wabag
M-cap 1176 cr
Sales down 4.4%, ebidta down 29%, pat down 41%
Trade at 15x pe, 15% roce
RJ bought around 160 in co via pref allotment

V STRONG RESULTS IN MICRO-CAP
Bajaj Steel (its an engineering co and not steel)
M-cap 121 cr
Cash on books at 80 cr
Sales flat, ebidta up 29% at 20.7 cr
Margins at 13.8% vs 10.7%
Profit at 12.8 cr vs 9.5 cr
1h PAT at 18.7 cr vs 12.5 cr (FY20 pat at 23.6 cr)
Trade at 4x ttm pe with 25% roce

Sahyadri Industries
M-cap 221 cr
Sales up 87%, ebidta up 276% at 19 cr vs 5 cr
Margins at 20.6% vs 10.2%
Profit at 12 cr vs 3 cr
Trade at 6x ttm pe, 1.2x pb with 16% roce

Varinder Bansal

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

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