Results on 9th Nov 2020

Analysis of cos reporting results on 9th nov 2020

HINDALCO: Novelis’ margin surprises positively
Novelis’ 2QFY21 EBITDA surprised with 20% YoY growth to USD455m (est. USD348m)
EBITDA/t of USD493 (est. USD396).
Management has raised the sustainable EBITDA margin guidance for Novelis to USD480-500/t (from USD450-475/t)

STRONG RESULTS + REASONABLE VALUATIONS
NCL Ind
M-cap 656 cr
Sales up 79%, ebidta up 212%, pat up 390% yoy
Margins at 23% vs 13.3%
Stock 4% away from 52-week high
Trade at 13x ttm pe, 1.2x pb
Roce at 11%

Sandur Manganese
M-cap 630 cr
Sales up 3.8%, ebidta up 38%, pat up 51% yoy
Margins at 45% vs 34%
Stock 24% away from 52-week high
Trade at 5x ttm pe, 0.9x pb
Roce at 18%

Voltamp Transformers
M-cap 1036 cr
Sales down 17%, ebidta up 5%, pat up 15% yoy
Sales up 121%, ebidta up 665%, pat up 54% qoq
Stock still 31% away from 52-week high
Trade at 11x ttm pe, 1.4x pb
Roce at 16%

ISGEC Heavy
M-cap 2000 cr
Sales down 6%, ebidta up 79%, pat up 70%
Stock still 49% away from 52-week high
Trade at 12x ttm pe, 1.1x pb
Roce at 10%

EID Parry
M-cap 5000 cr
Sales up 3%, ebidta up 33%, pat up 75%
Cons number include coromandeal int
Trade at 9.5x ttm pe, 1.4x pb
Roce at 21%

Maithan Alloys
M-cap 1486 cr
Sales down 13%, ebidta up 35 %, pat up 31%
Stock still 18% away from 52-week high
Trade at 7.3x ttm pe, 1.2x pb
Roce at 19.7%

Kalyani Steel
M-cap 961 cr
Sales up 6%, ebidta up 39%, pat up 0.5%
Margins at 19% vs 14.6%
Stock still 18% away from 52-week high
Trade at 8.8x ttm pe, 0.9x pb
Roce at 18.5%

ADF Foods
M-cap 869 cr
Sales up 56%, ebidta up 43%, pat up 35% yoy
Margins at 17% vs 18.7%
Stock 6% away from 52-week high
Trade at 20x ttm pe, 4.3x pb
Roce at 28%

STRONG RESULTS + RICH VALUATIONS
JK Cement
M-cap 14720 cr
Sales up 24%, ebidta up 69%, pat up 170%
Trade at 35x ttm pe, 5x pb
Roce at 15%

Indiamart Inter.
M-cap 14600 cr
Sales up 4.2%, ebidta up 125%, pat up 7 times
Trade at 77x ttm pe, 53x pb
Roce at 26%

Morepan Labs
M-cap 1334 cr
Sales up 57%, ebidta up 111%, pat up 5.5 times
Margins still in single digit; at 9.4% vs 7.1%
Trade at 29x ttm pe, 4.7x pb
Roce at 8.5%
Kopran has done much better in terms of margins and trade at single digit multiple

WEAK RESULTS + EXPENSIVE VALUATIONS
Honeywell Auto
M-cap 27k cr
Sales down 8%, ebidta down 4%, pat down 10%
Trades at 57x ttm pe, 12.4x pb.
Roce 34%

WEAK RESULTS BUT PRICED IN??
Oil India
M-cap 9423 cr
Sales donw 32%, ebidta down 43%, pat down 42%
Trades at 3x ttm pe, 0.3 pb
Roce 10%

VIP Ind
M-cap 4105 cr
Sales donw 75%, ebidta loss at 22 cr vs 55 cr qoq, vs profit of 67 cr yoy
Net loss 35 cr vs 51 cr qoq, vs 33 cr yoy
Stock is still down 44% from 52-week high
Roce 28%

Delta Corp
M-cap 3084 cr
Sales donw 81%, ebidta loss at 45 cr vs 33 cr qoq, vs profit of 81 cr yoy
Net loss 55 cr vs 28 cr qoq, vs 59 cr yoy
Stock is still down 49% from 52-week high
Roce 13%

BAD RESULTS IN SMALL/MID-CAP SPACE
NOCIL
m-cap 2379 cr
sales up 5.7%, ebidta down 35%, pat down 69%
trades at 21x ttm pe, 2 pb

Transpek Ind
M-cap 988 cr
Sales down 38%, ebidta down 74%, pat down 96%
Trade at 13.5x ttm pe, 2.9x pb
Roce at 24%

Varinder Bansal

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

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