Results on 2nd Nov 2020

Results on 2nd Nov 2020

Strong results with reasonable valuations

Ramco Cement (no one stands even close to Ramco)
Ebidta/ tonne near 2000
Sales down 4.4% yoy, Ebidta up 49% yoy, Pat up 42% yoy
Volume miss; realisations spiked 17% YoY (a major surprise)
Jefferies: raise FY21 EPS by 60%, retain Rs1,000 PT
TTM PE at 35, 12% roce

Coromandel Int
Sales down 5% yoy but up 43% qoq
Ebidta up 18% yoy, up 104% qoq
Pat up 17% yoy, up 135% qoq
TTM PE at 16x, 25% roce

AIA Eng
M-cap 15660 cr
Sales up 6.6%, ebidta up 24%, pat down 5%
25x ttm pe, 4 p/b, 20% roce

Strong results + expensive valuations
Whirlpool India
Sales up 15% yoy, Ebidta up 28% yoy, Pat up 5% yoy
Gross margin dipped by -400bps to 37.9% whereas, many Electrical / Appliance players expanded GM in Q2
TTM PE at 81, 26% roce

Weak results + reasonable valuations
Oracle Financial
M-cap 27000 cr
Sales down 10.5%, ebidta down 16%, PAT down 18% QoQ
17x ttm pe, 4x p/b

KEI Industries
Among top-4 organised players in the Indian cables industry and an EPC player in power T&D
M-cap 3000 cr
Sales down 16%, ebidta down 3%, PAT down 10% YoY
12x ttm pe, 2 ttm pb, 28% roce
Debtor days up 23% YoY; watch for normalisation by 4Q
Jefferies: EBITDA was 48% above expectations

Weak results + expensive valuations
Fine Organics; trade at 10x sales
M-cap 8000 cr
Sales down 1%, Ebidta down 21%, Pat down 45% yoy
TTM PE at 51, 32% roce

Zydus Wellness
M-cap 11360 cr
Sales up 5%, ebidta down 11%, net loss at 105 cr
70 ttm pe, 6% roce

Narayana Hrudaya
Sales down 27%, ebidta down 78%, net loss at 3 cr vs loss of 120 cr qoq
70 ttm pe, 6 ttm pb, 6% roce

TCI Express
M-cap 2951 cr
Sales down 21%, PAT down 10%
TTM PE 42x, PB 8x, 38% roce

Pfizer
M-cap 22735 cr
Sales up 5%, PAT down 15%
TTM PE 45x, PB 6.7x, 12x sales

Small-cap surprises – any?
Dwarikesh Sugar M-cap 534 cr
Sales up 137%, ebidta up 149%, pat up 275%
Ttm pe 7x, pb 1x, roce 8%

Gulshan Polyols M-cap 300 cr
Sales up 18%, ebidta up 87%, pat up 200%
Ttm pe 16x, pb 1x, roce 9%

Khaitan Chemical M-cap 223 cr
Sales up 11%, ebidta up 64%, pat up 195%
Ttm pe 11x, pb 1.5x, roce 14%

Varinder Bansal

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

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