Trendlyne Marketwatch    
11 Jun 2019
LIVE: Markets rise, YES Bank's rating likely to be reviewed by Moodys

Markets are up in morning trade and breadth is balanced. Of the 362 stocks traded today, 149 were in the positive territory and 174 were negative.

  • Moody says it is reviewing YES Bank's rating for a downgrade, citing significant pressure on Yes Bank's asset quality and profitability.
  • Markets are trading higher in the afternoon, hitting day highs
  • PC Jeweller, Sterlite Tech among top gainers in markets
  • Tata Motors' Jaguar sales continue to struggle, with Jaguar Land Rover sales falling12.2% on a yearly basis to 42,370 units in May.
     
Riding High:

Largecap and midcap gainers today include Bharat Financial Inclusion Ltd. (1001.05 2.62%), IndusInd Bank Ltd. (1579.40 1.83%) and Info Edge (India) Ltd. (2315.05 1.45%).

Downers:

Largecap and midcap losers today include Indiabulls Ventures Ltd. (267.00 -7.03%), Indiabulls Housing Finance Ltd. (690.70 -5.96%) and Reliance Power Ltd. (5.40 -4.42%).

BSE 500: highs, lows and moving averages

1 stock took off, crossing 52 week highs, while 9 stocks were underachievers and hit their 52 week lows.

Stock touching their year highs included - Nestle India Ltd. (11770.05 0.44%).

Stocks making new 52 weeks lows included - Central Bank of India (24.00 -1.03%) and Jain Irrigation Systems Ltd. (35.80 -3.11%).

4 stocks climbed above their 200 day SMA including ITI Ltd. (94.35 0.91%) and SKF India Ltd. (1904.95 0.26%). 11 stocks slipped below their 200 SMA including Mahanagar Gas Ltd. (877.00 -1.37%) and NBCC (India) Ltd. (58.10 -1.19%).

Trendlyne Talk    
10 Jun 2019
NEW: Check the Buy or Sell Zone of a Stock

A new feature now available on every Trendlyne stock page - users can check the buy/sell zone of a stock based on historical PE and Price to Book Value. Users can see if the stock they are considering buying or selling, is in its sell zone or buy zone relative to its price, earnings and book value ratios. 

This link will now be visible for all users, across stock pages. So far PE data is available from 2017, and more history will be added over the next couple of weeks. Happy browsing. 

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Sobha Ltd.    
10 Jun 2019
550.00
-4.00%
Real estate firm Sobha looks to drive growth, with expansion in new markets

by Suhani Adilabadkar

RERA has been roaring forward for the past two years, and has had a significant impact on the once un-organized Real Estate sector, the third largest contributor to GDP after agriculture and manufacturing.  2018 had been a year of consolidation for Indian Real Estate after RERA pushed reforms into opaque operating systems, and GST and affordable housing gave the much-needed fillip to the beleaguered sector which has fallen from grace since 2010.

Consequently major companies such as Jaiprakash Associates and Unitech entangled themselves in legal troubles,while a more  consistent, transparent crop of players, Oberoi Realty, Sobha, Phoenix Mills have been riding on renewed consumer sentiment thanks to RERA and current election euphoria.   

Quick Takes

  • Sobha (which is in 30 stock screeners) reported its ‘Highest Ever’ yearly and quarterly Income, PAT, Cash Inflow along with highest ever PBT in the history of the company.
  • Sobha hit its new 52 week high on June 4th 2019, the momentum being built over the past one month with the stock rising 15% since early May.
  • Sobha is the only company in the Indian realty sector with full-fledged backward integrated operations leading to strong execution track record.
  • The company aims to launch 7.7 msqft of new projects in Bengaluru, Thrissur, Chennai, Pune, Coimbatore and Gujarat region in the next 3-4 quarters. The company says it expects significant growth happen from the NCR market and Gurgaon in particular. 

SOBHA 

SOBHA is a well known South Indian real estate company that started in 1995, raising Rs. 570 cr from its IPO with issue being over-subscribed 127 times. The first Indian Real Estate Company to obtain ISO 9001 (1994 series) certification in 1998, Sobha has segmented its functional dimensions into Real Estate and Contractual & Manufacturing verticals.

The Real Estate segment comprises of residential projects encompassing presidential apartments, villas, row houses, luxury and super luxury apartments and aspirational homes. A contractual vertical initiated in 1999 focusses on developing facilities for corporate entities like offices, convention centres, software development blocks, multiplex theatres, hostel facilities, hotels, research centres and factory buildings. And the backbone of the company, the Manufacturing vertical comprising three divisions – Interiors, Glazing and Metal works and Concrete Products provides raw materials required across verticals. Predominantly operational in the Bengaluru market, Sobha has spread its footprint across 27 cities and 9 states and completed 143 residential projects and 307 contractual projects with total developable area of 103.88 Mn sqft as on 31st March FY 19.

March Quarter FY19

March quarter FY19 was the ‘Highest Ever’ in multiple parameters for Sobha. The company reported its ‘Highest Ever’ yearly and quarterly Income, PAT, Cash Inflow in Q4FY19, along with the highest ever PBT in the history of the company.

Moving on to specifics, the company's revenue grew 1.8 times, reported at Rs. 1,407 crore against Rs. 778 crore in the same period the previous year with sequential rise of 76%.

Sobha's EBDITA was also on the same growth pitch rising 75% YoY with margin of 17.97% declining 59 basis points YoY on account of reverse discounting of advances as required by Ind-AS115.

PAT was 73% higher YoY at Rs. 113 crore compared to Rs. 65 crore in the corresponding quarter previous year. Segmental performance was also phenomenal with Real Estate revenues doubling from Rs. 500 crore in Q4 FY18 to Rs. 1017 crore in March FY19 while Contracts & Manufacturing Revenue jumped 40% YoY at Rs. 420 crore in Q4 FY19.

The company also achieved its highest ever pre-sales volume of 4.03 million sqft valued at Rs. 3122 crore for FY19 and 1.13 million sqft valued at Rs. 920 cr for quarter ended March FY19.

Future Growth Levers

Sobha hit its new year high on June 4th 2019, the momentum being built over the past three months with the stock rising 25% since early March. Though growth levers for the entire industry were oiled by the interim budget in February early this year, RBI repo rate cut, government’s affordable housing policy, GST rate cut, PMAY and robust government expenditure on infrastructure front will drive real estate sector in strong positive territory, with expectations that it will hit $1 trillion in the next five years.

With compliance and transparency as the new entry barriers for non-serious and unscrupulous players, long term growth matrix seems to be loaded in favour of strong companies like Sobha.

Sobha’s growth matrix starts with an efficient backward integration model laid out by its manufacturing vertical with its three divisions, Glazing and Metal Works, Interiors and Concrete Products, reducing their dependence on external suppliers.

Sobha is the only company in the Indian realty sector with such full-fledged backward integrated operations, helping it navigate through tough demonetization, GST and initial hiccups of RERA without comprising on its execution track record and superior quality. Consequently, the company has been firing all cylinders, Real Estate and Contractual & Manufacturing verticals have grown at CAGR of 22% and 24% respectively over the past three years. And also, the subdivisions of Manufacturing, Glazing, Interiors and Concrete also grew handsomely at CAGR of 12%, 16% and 18% respectively during FY16-19.

And during the same period while other companies were floundering with regulatory compliance and transparency issues, Sobha transitioned into its best financial performance with PAT CAGR of 30% over the past three years, ahead of Prestige Estates, Godrej Properties and even Oberoi Realty. 

The company has also been working on its revenue mix, reducing its dependence on Bengaluru region which was roughly 77% in FY16 to the current levels of 68% by FY19 by diversifying into Tier II & III cities like Pune, Thrissur, Coimbatore, Calicut  to name a few and its latest addition, Gift city during March quarter FY19.

Commenting on future geographical growth dynamics, Mr J.C Sharma, Vice Chairman and MD, said, “Our belief is that after Bengaluru, the maximum growth has to happen from the NCR market and Gurgaon in particular. Lots of visibility will be there as far as the Gurgaon growth is concerned, because that market has started showing clear improvement, both at the Metro level and from Dwarka Expressway point of view also. And we look at Gurgaon, honestly from a big growth driver perspective”. From negligible contribution three years back, Gurgaon region is now 12% of the entire sales value in FY19.

Sobha Ltd has also diversified its client base reducing its dependence on Infosys from 80% in FY16 to current 50% levels by enveloping Biocon, Dell, Bosch, Syngene, Taj Hotels, HCL, ITC Hotels, Huawei Technologies, Manipal Group as its major clientele.

Moving on to future growth specifics, Mr Sharma said, “We are planning to launch 7.7 msqft of new projects in Bengaluru, Thrissur, Chennai, Pune, Coimbatore and Gujarat region in the coming next three to four quarters, which should further drive our growth in these markets from presales”. 

Sobha Ltd. has gained 28.21% in the last 3 Months
Trendlyne Marketwatch    
10 Jun 2019
LIVE: Markets trade higher, SH Kelkar announces buyback

Markets opened higher in morning trade, and market breadth is balanced. Of the 457 stocks traded today, 234 were on the uptick, and 160 were down.

  • S H Kelkar announces that it will buyback 33 crore shares for Rs 59.4 crore at Rs 180 apiece, and share price of the company has fallen on the news. 
  • Rising crude prices - Brent rose sharply over the last two days - is making investors wary about oil marketing stocks like IOCL, HPCL and BPCL
  • Titan hits record high in markets, Atul gains. 
Riding High:

Largecap and midcap gainers today include Dewan Housing Finance Corporation Ltd. (88.90 6.79%), YES Bank Ltd. (144.75 3.39%) and Indiabulls Housing Finance Ltd. (753.00 2.76%).

Downers:

Largecap and midcap losers today include Reliance Power Ltd. (5.55 -10.48%), Reliance Capital Ltd. (95.95 -4.05%) and Reliance Infrastructure Ltd. (71.70 -2.38%).

BSE 500: highs, lows and moving averages

7 stocks overperformed with 52 week highs, while 8 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Bajaj Finance Ltd. (3535.05 0.57%), Chambal Fertilisers & Chemicals Ltd. (191.80 -1.06%) and DCB Bank Ltd. (239.65 -0.46%).

Stocks making new 52 weeks lows included - Central Bank of India (24.60 0.41%) and Jain Irrigation Systems Ltd. (42.50 -0.23%).

10 stocks climbed above their 200 day SMA including Bank of India (91.35 2.07%) and JM Financial Ltd. (90.20 1.46%). 7 stocks slipped below their 200 SMA including Kansai Nerolac Paints Ltd. (442.00 -0.92%) and Dr. Reddy's Laboratories Ltd. (2572.10 -0.31%).

Photo by Appaiah

Maruti Suzuki India Ltd.    
08 Jun 2019
6744.00
-0.60%

Earnings Call for Maruti Suzuki, Q4FY19

The Call starts with  CFO – Mr. Ajay Seth

As you all know, the financial year 2018-2019 was a challenging year for the domestic passenger vehicle industry and the growth was reduced to 2.7% - its lowest growth in the last five years.

The weak demand environment that prevailed during Q3FY19, continue to impact the industry in quarter 4 also. The Company made concerted efforts to better respond to the prevailing demand environment and allied cost pressures. The production was streamlined to keep network stock under check.

With the demand coming down, the onus on enhancing sales lies in generating enquiries through well-calibrated marketing efforts. With the extensive know-how of varied geographies along with the support from all stake-holders, relevant events across urban and non-urban markets were conducted to increase sales. For the whole year 2018-19, the Company sold 1,753,700 units in domestic market posting a growth of 6.1 per cent.

The Company strengthened its leadership position across all the three industry segments - Passenger Cars, Utility Vehicles and Vans. Success of models launched in past along with positive response from the all-new model launches – Ertiga and WagonR – helped enhance sales performance. For the second year in row, all five best-selling passenger vehicle models in India were from the Company. The Company’s LCV offering - Super Carry - registered sales of 23,874 units, a growth of 138% compared with last year. One of the fastest network expansion to 310 outlets spread across 230 cities is a testimony of the good market acceptance of the product. Challenges like currency devaluation and import restrictions in some of our key markets affected the export sales. At 108,749 units, the Company’s export’s declined by 13.1% during the year. Turning to financial performance, the Company registered Net Sales of Rs 830,265 million, a growth of 6.3 per cent over the same period previous year. Net profit for the year stood at Rs Seventy-five thousand six million, lower by 2.9 per cent compared to the same period previous year on account of lower volume growth, adverse commodity prices, adverse foreign exchange movement and higher sales promotion.

(Call continues in pdf)

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Lakshmi Vilas Bank Ltd.    
07 Jun 2019
65.05
-3.77%
Screener: Stocks that have seen FIIs substantially change their stake

The stock screener tracking big changes in FII shareholding in the most recent quarter, looked at stocks that saw foreign institutional investors or foreign portfolio investors either raise or lower their shareholding in the company by more than 3%. These stocks consumer company Hindustan Foods (which saw a big buy from Jwalamukhi Investment Holdings) Lakshmi Vilas Bank, (which saw Aviator Global and Pinewood Strategy ramp up investments) Advanced Enzyme (which drew investments from Orbimed Mauritius) and others. AllSec Tech tops the list but may owe that to a misfiling on the part of the investment company, which either missed or made an error in its December filing. 

The interest for FIIs in stocks like Lakshmi Vilas (which has a low durability score) is likely owing to the fact that the Indiabulls Group had announced its decision to exit the real estate sector and shift its focus to core financial services, after announcing a merger with Lakshmi Vilas Bank. This opens up new upside potential for the banking stock if the merger efforts and business growth are successful, but this currently according to analysts remains a high-risk play. For the full screener, click here

FII/FPI have increased their holdings by 12.18% of holdings in Mar 2019 qtr.
Trendlyne Marketwatch    
07 Jun 2019
Markets close higher after a volatile trading day

Markets close higher at the end of a volatile trading day, and breadth is horizontal. Of the 1096 stocks traded today, 459 were on the uptrend, and 529 went down. The Sensex closed 0.22% higher while the Nifty50 ended 0.23% higher. Reliance Infra and Reliance Capital stocks took a beating ahead of results, both falling by double digit percentages. For the day's happenings, click here.

Riding High:

Largecap and midcap gainers today include Voltas Ltd. (617.20 5.16%), Apollo Hospitals Enterprise Ltd. (1398.20 4.43%) and Alkem Laboratories Ltd. (1817.70 3.28%).

Downers:

Largecap and midcap losers today include Dewan Housing Finance Corporation Ltd. (83.30 -11.66%), Reliance Infrastructure Ltd. (73.95 -11.38%) and Reliance Capital Ltd. (99.95 -10.36%).

Volume Shockers

14 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Gujarat Fluorochemicals Ltd. (1110.40 4.26%), Lakshmi Vilas Bank Ltd. (73.20 3.98%) and Chambal Fertilisers & Chemicals Ltd. (191.15 3.83%).

Top high volume losers on BSE were Dewan Housing Finance Corporation Ltd. (83.30 -11.66%), Manappuram Finance Ltd. (132.10 -4.52%) and Indiabulls Real Estate Ltd. (127.55 -3.55%).

Zydus Wellness Ltd. (1361.95 2.40%) was trading at 22.1 times of weekly average. Galaxy Surfactants Ltd. (1150.15 1.88%) and Tube Investments of India Ltd. (385.40 -1.44%) were trading with volumes 7.8 and 7.0 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

4 stocks took off, crossing 52 week highs, while 19 stocks tanked below their 52 week lows.

Stocks touching their year highs included - Apollo Hospitals Enterprise Ltd. (1398.20 4.43%), Chambal Fertilisers & Chemicals Ltd. (191.15 3.83%) and Gujarat Fluorochemicals Ltd. (1110.40 4.26%).

Stocks making new 52 weeks lows included - Cadila Healthcare Ltd. (242.70 -1.24%) and Central Bank of India (24.55 -0.61%).

11 stocks climbed above their 200 day SMA including Gujarat State Fertilizer & Chemicals Ltd. (103.90 2.87%) and Galaxy Surfactants Ltd. (1150.15 1.88%). 29 stocks slipped below their 200 SMA including Dilip Buildcon Ltd. (499.90 -5.00%) and Triveni Turbine Ltd. (108.45 -3.60%).

232.00
-0.83%

Earnings Call Transcript Begins

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Good day and welcome to the Crompton Greaves Consumer Electricals Limited Q4 FY2019 Earnings Conference Call, hosted by IIFL Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing “*” then “0” on your touchtone telephone. Please note that this conference is being recorded. I now hand the conference over to Mr. Renu Baid from IIFL Securities Limited. Thank you, and over to you!

Renu Baid: Thank you, Inba. Good morning, everyone. On behalf of IIFL, I would like to welcome you all to the Q4 FY2019 earnings call of Crompton Greaves Consumer Electricals Limited. Today, we have with us the senior management represented by Mr. Shantanu Khosla, Managing Director; Mr. Sandeep Batra, CFO; Mr. Yeshwant Rege, Vice President, Strategy and Financial Planning. Without taking much time, I would like to welcome the management and hand over the call to Shantanu for his comments and opening remarks. Thanks, and over to you, Sir. Shantanu Khosla: Thank you, Renu. Good morning, everyone. First, I am sorry we are a couple of minutes late. We had a little bit of a technical problem. So without further ado, let me just dive straight into an overview, a set of comments, and then as usual, we are happy to take as many questions as you may have. I will just get straight into the details by segment first and let me first talk about our ECD segment.

Now, we are quite happy with our overall ECD performance where we grew to 10%, this was in spite of, as you are most are aware, a delayed onset of summer and quite an extended winter which to some extent has impacted the seasonality. The growth was really driven by all subsegments within ECD. While our gross margins in ECD this quarter are pretty much in line with the previous quarter, they are lower than the same quarter in the previous year. This is largely due to the impact of commodity prices, and given the relative downturn in the market, we were not really able to take a planned price increase.

Transcript continues in pdf

Godrej Agrovet Ltd.    
07 Jun 2019
501.00
0.05%
Agri-company Godrej Agrovet eyes recovery after steady decline

by Suhani Adilabadkar

It was a stellar debut for Godrej Agrovet with its IPO being oversubscribed 96 times. For the pure agri-play company that was a long-ago high point, and the firm has since been on the receiving end for its slow and lumpy growth over the past few quarters.

Though the stock declined 30% since touching its life-time high in April 2018, recovery seems to be on the cards as Godrej Agrovet (which is in 14 screeners including promoter shareholding increase) has jumped 5% from early March this year. Godrej Agrovet, the largest diversified agri company has seen the rough terrain of the monsoon dependent agricultural sector, volatile raw material prices, high government regulation and uncertain weather conditions. But it still may be a long-term bet. 

Quick Takes:            

  • Godrej Agrovet operates in six major business segments, Animal Feed, Crop Protection, Oil Palm, Dairy and Poultry and Processed Foods.
  • With lower growth rates and falling margins, the firm has been struggling over the past few quarters.
  • Godrej Agro played on a complete flat pitch for March quarter FY19 with only revenues exhibiting 12% YoY growth.
  • Animal Feed was the best performer with 10% volume and 22% revenue growth.

A diversified company that recently acquired Astec Lifesciences

Godrej Agrovet Limited is a diversified, research & development focused agri-business company working towards sustainably enhancing crop and livestock yields. The company operates in six major business segments, Animal Feed, Crop Protection, Oil Palm, Dairy and Poultry and Processed Foods.

If this sounds boring, the interesting part is that it owns ‘Yummiez’ and the popular south Indian milk products ‘Jersey’ brand and completely off-terrain to this industry, acquired Astec Lifesciences in 2015 to bolster its crop protection business.

Thus, even in pure agricultural field play, Godrej Agrovet stands diversified with revenues form agrochemicals, frozen food, animal feed, poultry, vegetable oil and dairy business. The company has a pan India presence and has in its fold four subsidiaries, Godvet Agrochem, Astec Lifesciences, CreamLine Dairy (Jersey), Godrej Tyson Foods, joint venture with ACI group Bangladesh and Maxximilk, an Israeli biotech firm as an associate company. 

Muted March Quarter Results

Godrej Agro struggled in the March quarter FY19 with only revenues in the green, with 12% YoY growth. Revenue stood at Rs. 1344 cr against Rs. 1195 cr same period previous year, and a sequential decline of 8%.

Operating profit ended flat at Rs. 75 cr with margin of 5.57% in Q4 FY19 declining 64 basis points YoY. PBT for the quarter excluding exceptional item of Rs. 88 cr stands unchanged on YoY basis at Rs. 51 cr.

\Moving on to respective business segments, Animal Feed was the best performer with 10% volume and 22% revenue growth. The inhouse Crop Protection revenue decelerated 23% whereas subsidiary Astec reported 4% revenue growth YoY. Dairy Subsidiary, Creamline reported mild revenue decline of 1.3% but with EBDITA trebling YoY. And lastly, the government regulated oil palm business which has the lowest share in the revenue basket jumped 23% in revenue terms but declined both on operating margin and profitability front.

In each business, a different struggle

The danger for diversified companies is having to fight very different battles in multiple businesses. Godrej Agrovet with lower growth rates and falling margins, has seen every segment struggle for a different reason. Animal Feed segment impacted by higher raw material costs, Crop protection faced tough conditions in domestic market coupled with Astec Lifesciences reporting postponement of important export orders, lower prices of butter and SMP (skimmed milk powder) impacted Dairy business, processed food segment facing stiff competition from platforms like Swiggy and Uber Eats and lastly palm oil segment suffered due to price differential in FFB ( fresh fruit bunches) between Andhra and Telangana. 

And the interesting part is that, the management look pretty optimistic as Mr. Balram Yadav, MD, Godrej Agrovet Ltd, said, “I think anything between 10 to 15% growth in topline and 15 to 20% growth in bottomline is doable and that is the plan”.

This optimism is based on strong capex, R&D and long-term strategic plans outlined by the company management for its respective business segments. First and foremost, the Animal Feed business, its product portfolio comprising cattle feed, poultry feed (broiler and layer), aqua feed (fish and shrimp) and specialty feed manufactured at 31 state-of-the-art manufacturing plants. Godrej Agro is the largest organized player in the country in compound animal feed contributing almost half of the revenue basket. To maintain its leadership, the company is investing about Rs. 100 cr in Nasik and Bundi plants to produce R&D products for animal feed and poultry to target lower penetration of compound feed and falling fodder availability in india.

Next in line for revenue contribution is Dairy Business which is about 22% of total revenues. Godrej Agro functions in a highly fragmented industry where organized sector forms only 15-20% of entire market. The Dairy strategy has two layers, first increasing the salience of value added dairy product portfolio as Mr Balram Yadav clarified, “I think profitability will be determined largely by increase in salience of value added products where margins are stable and if I have to tell you that last year our salience grew from 24% to 27% and this year, we are looking at increase from 27% to 33%. So as this salience increases, the margin expansion automatically will happen”.

The company is also talking up its embryo transfer technology being developed in the R&D genetics centre in Nasik and result outcome in the next 12-18 months will revolutionize milk production in the country. The company intends to sell this technology to farmers to enhance milk production and in-turn its own processing capacity. 

Moving on to the processed food segment, apart from a manufacturing facility in Bangalore for non-vegetarian frozen foods, Godrej Agro is commissioning one more plant in Ludhiana for vegetarian frozen foods to focus on B2B segment and even cater to food delivery platforms which seems to be big opportunity in the current scenario. The management’s focus has also shifted to the live bird market which accounts about 96% of total Indian poultry and to pursue this, stake in Tyson Foods has been increased to 51% in March 2019 making it a subsidiary of Godrej Agrovet.

Palm Oil, the smallest constituent, 11% revenue contribution but garners 35% market share for the company with operations spread across Andhra Pradesh, Tamil Nadu, Gujarat, Goa, Odisha, Telangana, Mizoram and Chhattisgarh. The price differential of FFB have been corrected by Andhra government, leakage of fruits to Telangana have been curtailed and consequently 15% higher volume would be achieved in the current year.

Last but not least, subsidiary Astec Lifesciences aims to maintain 15% plus growth in topline and 20% plus growth in EBITDA. This is FY20-21 guidance and capex plans are also in the picture, Rs. 80 cr investment in R&D centre and Herbicide plant to be completed in next 12-18 months. Godrej Agrovet seems to be on a growth highway. Speed might be slow but ithe management expects that the arc will be steadily upwards. It be interesting to see if the company successfully bucks past trends.  
 

Godrej Agrovet Ltd. is trading below it's 50 day SMA of 507.92