Results on 29-30th Oct 2020

Results on 29-30th Oct 2020

Strong results + reasonable valuation
Motilal Oswal
M-cap 8230 cr
V strong results
Total Revenue up 14% (broking up 40%, wealth management up 25% but asset management down 15%)
Broking: Highest ever revenue and profit achieved in Q2FY21
Reported pat up 108% at 296 cr (included mtm pat)
Operating pat up 33% at 123.3 cr
Home Finance business saw sharp reduction in CoF leading to margin expansion
Total D/E stood at 1.3x. Ex-MOHF D/E stood at 0.4x. Net of investments, we have net cash on balance sheet

Jindal Stainless Ltd
Solid results
M-cap 3048 cr
Trade at 1.2 p/b, 11% roce
Sales up 1% yoy, up 140% qoq
Sales vol surged 159% qoq, down 1% yoy
Sales volume recovered to pre-COVID levels at 230 KT
Ebidta up 8% yoy, up 440% qoq
EBITDA/ tonne at Rs. 15,293, up 13% Y-o-Y
Pat up 116% yoy, at 82 cr (last quarter loss 122 cr)
Finance costs fell by 13% Y-o-Y to Rs. 124 crore
Exceptional gains stood at Rs. 25 crore
Net d/e as on 1HFY21 at 1.2x vs 1.4x at FY20

Greenpanel Inds.
M-cap 900 cr
What a strong comeback
Sales up 17%, ebidta up 54%, pat up 385%
Sales at 225 cr vs 192 cr yoy, vs 90 cr qoq
Margins at 20.6% vs 15.6% yoy (loss in 1Q)
1.4x ttm pb

Intellect Design
M-cap 3165 cr
sales up 7.5% qoq, ebidta up 27% qoq, pat up 39% qoq
Ttm pe 24x, 2.7x pb
Global leader in Financial Technology for Banking, Insurance and other Financial Services.

M-cap 2859 cr
Sales up 3.5%, ebidta up 63%, pat up 45%
Ebidta at 83 cr vs 51 cr
Margins at 11.2% vs 7.1%

Rain Ind
Sales down 14% but ebidta up 45%, pat up 44%
11x ttm pe, pb 0.7x, 7% roce
Watch for growth in sales & improvement in roce

Anup Eng
M-cap 611 cr
Sales up 40%, EBIDTA down 8%, PAT down 9%
14x ttm pe, 1.9x ttm pb, roce 20%
Order book up 25% to Rs.334 Cr as on 30th Sep 20

Nitin Spinners
M-cap 288 cr
Sales up 15%, ebidta up 58% at 55 cr vs 35 cr, margns at 13% vs 9.4%
Pat at 12 cr vs 1 cr

Good results but expensive valuations
Relaxo: sales down 7%, ebidta up 21%, pat up 6.5%
Surprised across headline numbers
EBITDAM increased 520bps YoY to 22% (Ambit: 18.1%)
Expensive stock at 75x ttm pe

Sheela Foam: sales up 22%, ebidta up 51%, pat up 18%
EBITDAM at 17.5% vs 14.2%
Expensive stock at 37xttm pe, 7x pb

Hester Bios
Sales up 21%, ebidta up 43%, pat up 2.5%
50x ttm pe, 7x pb, 16% roce
Manufacturing of Poultry vaccines and Large Animal Vaccines and trading of Poultry and Large animal health products

Grindwell Norton: sales up 12%, ebidta up 44%, pat up 23%
Ebidta margin at 21.3% vs 16.6% yoy, vs 8.4% qoq
34x ttm pe, 21% roce
V solid co

Good results but run-up & inconsistent
Tanla Solutions (why change the name of co to platform?)
M-cap 4423 cr; trade near 52-week high (stock up 10 times frm 52-week low)
Sales up 28% qoq, ebidta up 30% qoq, pat up 3.5% qoq
Margins at 16.7% vs 16.5% qoq
V inconsistent returns over last 5-6 years in terms of margins
March 2020 co did sales of 1943 cr, 9% margins and loss of 211 cr

Weak results
Just Dial
Sales down 31%, PAT down 38%
Collection down 28% YoY vs. 52% decline in 1QFY21 as the company offered discounts and gave flexible payment terms
Traffic is down 19% YoY to 131mn unique visitors but improved 31% QoQ
Conference call is scheduled at 6PM IST
Axis Cap: Downgrade to SELL (from REDUCE) with DCF-based TP of Rs 550 (vs Rs 560 earlier)

Varinder Bansal

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

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