Results on 13th Nov 2020

NALYSIS OF COS REPORTING RESULTS ON 13TH NOV 2020

STRONG RESULTS + REASONABLE VALUATIONS
Tata Steel
M-cap 54800 cr, Trade at 0.8 pb
Margins 16.5% vs exp 11.5%
Consolidation of domestic business: to watch Tata Steel BSL, Tata Steel Long, Tata Metaliks

Eveready Ind
M-cap 1124 cr
Stock down 2% from 52-week high
Trade at 15x pe, 2x pb, 15% roce
Sales up 7%, ebidta up 138%, pat up 216%
Margins at 20.3% vs 9% yoy, vs 15.7% qoq

Banco Products
M-cap 763 cr
Stock down 7% from 52-week high
Trade at 8.5x pe, 1.1x pb, 13.5% roce
Sales up 15%, ebidta up 169%, pat up 157%
Margins at 15.9% vs 6.8% yoy, vs 10% qoq

KSE Ltd
M-cap 706 cr
Stock down 2% from 52-week high
Trade at 12.2x pe, 5x pb, 10% roce
Sales up 1%, ebidta up 262%, pat up 529%
Margins at 8.2% vs 2.3% yoy, vs 9% qoq

Shree Jagdamba Polymers
M-cap 286 cr
Stock down 8% from 52-week high
Trade at 10x pe, 3x pb, 38% roce
Sales up 24%, ebidta up 24%, pat up 13%
Margins at 17.6% vs 17.5% yoy, vs 23.9% qoq

HAL
M-cap 25410 cr
Sales up 40%, ebidta up 47%
Trade at 10x ttm pe

WEAK RESULTS + RICH VALUATIONS
Borosil
M-cap 1700 cr
Stock down 28% from 52-week high
Trade at 41x pe, 2.6x pb, 8% roce
Sales down 20%, ebidta down 35%, pat down 45%

Kennemetal
M-cap 1685 cr
Stock down 34% from 52-week high
Trade at 44x pe, 3x pb, 9% roce
Sales down 10%, ebidta down 17%, pat down 35%

WEAK RESULTS BUT PRICED IN??
ONGC
M-cap 90700 cr
Trade at 0.4 p/b, 10% roce
Sales down 17%, ebidta down 13%, pat down 19%

IBREL
Results are vvv bad but the merger of IBREL with Embassy is the key
IBREL to be valued at ₹ 92.50 per share and swap ratio to be 6.619 shares of IBREL for every 10 shares of NAM Estates Pvt Ltd
Combined entity to be renamed Embassy Developments Ltd
Near completion inventory to generate a net surplus of ₹6,288 Cr

Varinder Bansal

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

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