Results on 15th Oct 2020

Results on 15th Oct 2020

Hathway Cable (stock in ASM LT : Stage 4) – Den Network results were subdued
M-cap 5797 cr
TTM P/E 32x, P/B 1.6x: not cheap
Margin boost only due to lower finance & dep cost; sales subdued
Sales down 2.5%, margins at 27.9% vs 23.8%
Expenses down by nearly 100 cr (finance cost at 4.2 cr vs 52 cr, dep at 93 cr vs 120 cr)

Cyient: Recovery in sight
M-cap 4029 cr
TTM P/E 12x
Q2FY21 EBIT margin surprised positively to 11.0% (AxisCap/consensus: 9.2%/ 8.9%) led by improvement in operational metrics
USD revenue improved 3.4% QoQ – in line
(one of the underperforming stocks in IT space due to high exposure to Aerospace which is impacted by Covid (Aero & defence contribution 36.5%) – but balance sheet is solid with huge cash

Trident
M-cap 3900 cr
QoQ sharp improvement but YoY tepid
Sales down 12.4% but up 65% QoQ
ebidta down 11% yoy but up 103% qoq
PAT down 24% but pat at 106 cr vs 10 cr qoq
TTM P/E 17x (wow) – stock up from rs 3 to rs 8

Vimta Labs
M-cap 300 cr
TTM P/E 43x (v exp)
Sale sup 40%, ebidta up 1.5x, pat up 7.2x
All up on small base
Ebidta at 16 cr vs 4 cr
Margins at 27% vs 14.8%
Pat at 8 cr vs 1 cr

Varinder Bansal

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

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