Research Reports published by MONARCH NETWORTH CAPITAL LIMITED

Jubilant Ingrevia Ltd.    
09 Jun 2021
Monarch Networth Capital Limited
We initiated on Jubilant Ingrevia ('Ingrevia') on March 18th, 2021 (note) at INR 240 per share, since then the stock is up >2.4x in less than 4 months! It still trades at ~11x FY23E EV/EBITDA, given the visibility on improving profile and robust pricing environment we believe there is room for further re-rating. Ingrevia came out with a robust set for Q4FY21 on the back of pricing in Acetic Anhydride and Ethyl Acetate (LS Chem EBITDA 19% vs 4% YoY). Demand side disruption in Acetyls is likely to continue over short term. On Spec Chem the growth was led by CDMO, Q3FY22 to see commercialisation of Diketene products a big trigger. We believe Ingrevia's transition to Specialty remains underappreciated with >70% of EBITDA contribution from non-commoditised segments. We thus revise our Mar-22 target price from INR 420 in base case to INR 770 valuing at 15x EV/EBITDA, which implies 35% upside on the CMP. Our Bull / Bear case TP is at INR 1015 and INR 450 respectively....
Jubilant Ingrevia Ltd. is trading above all available SMAs
Manappuram Finance Ltd.    
28 May 2021
Monarch Networth Capital Limited
We retain BUY on Manappuram Finance (MGFL) with SOTP based target price (TP) of Rs255. Superior risk management and credit underwriting have enabled MGFL avert severe shocks, as also seen in the FY21 results. This should also help overcome nearterm challenges posed by the second wave of COVID (in addition to the healthy provisioning buffer and respectable CE trends) and emerge stronger as normalcy is restored. MGFL offers a blend of a diversified balance sheet, healthy revenue/earnings growth, and superior return ratios. At 1.2x FY23E ABV, it remains grossly under-valued...
Manappuram Finance L.. has an average target of 211.13 from 8 brokers.
Brokerage Research Reports    
TREND | 26 May 2021
Monarch Networth Capital Limited
We believe that Valiant Organics Limited (VOL), a chemical company with focus on specialty chemicals and expertise in processes like Chlorination, Ammonolysis, Hydrogenation, and Acetylation, is a standout in the chemical space, characterised by a differentiated business model with products across the value chain, decades of experience in Chlorophenols products, high entry barriers, reputed clientele, and high return ratios. The company has made significant investments to enhance capacities, which will help boost revenue growth. The stock appears undervalued as compared to its specialty chemical peers in light of its robust financials and business model. We value VOL at INR...
Motilal Oswal released a Buy report for Brokerage Research Reports on 17 Jun, 2021.
GNA Axles Ltd.    
24 May 2021
Monarch Networth Capital Limited
Limited, M&M;, Dana Limited (USA , Mexico and Australia), John Deere (Brazil and USA ), Kubota Corporation (Japan), Meritor (Sweden, Italy, Brazil,...
GNA Axles Ltd. has gained 62.23% in the last 6 Months
Alkem Laboratories Ltd.    
20 May 2021
Monarch Networth Capital Limited
ALKEM LABORATORIES LTD (Alkem) is a dominant Acute focused player in the IPM with leadership in the AntiInfectives. Its strong brands and penetration in the Acute side has led to its superior performance in the IPM. Chronic segment likely to double in size every 3 years on the back of Cardiac and Anti-diabetes. Higher profit contribution from chronic portfolio, improving MR productivity and rising scale in US generics will drive margin expansion of ~430bps over FY20-23E. Alkem's margins expansion visibility, rich return ratios and improving business profile merits a better multiple. We thus value Alkem at INR 4,000 on 17.5x EV/EVITDA on FY23E which gives an upside of 35% from the CMP. At current valuation of 13x EV/EBITDA and 18x PER on FY23E. Key risks include NPPA actions on key products, adverse USFDA regulatory actions and delay in biosimilars....
Motilal Oswal increased Buy price target of Alkem Laboratories Ltd. to 3730.0 on 07 Jun, 2021.
Brokerage Research Reports    
TREND | 19 May 2021
Monarch Networth Capital Limited
Offtake from DuPont has been impacted in FY21 as the product is used for high end applications like replacing metals in F1 cars, Kevlar (bullet proof jackets), etc. The contract is with take or pay terms with...
Motilal Oswal released a Buy report for Brokerage Research Reports on 17 Jun, 2021.
Monarch Networth Capital Limited
We raise our TP to Rs290 and move to ACCUMULATE rating on Kirloskar Ferrous Industries Ltd. (KFIL). We expect earnings to stay robust in FY22E due to full ramp up of VSL steel plant, strong pig iron spreads and further hikes in casting realisation. A large project pipeline which includes commissioning of iron ore mine, phase 2 of coke oven & WHRP and PCI will result in savings of Rs3bn over next 3 years, offsetting fall in pig iron spreads, if any. Strong earnings will keep the balance sheet lean (deleveraging to start from FY23E) despite...
Kirloskar Ferrous Industries Ltd. has gained 237.75% in the last 1 Year
Monarch Networth Capital Limited
We present the investment Idea Mrs. Bectors Food Specialities Ltd (BFSL), a promising biscuit and bakery player in North India. We expect the company, one of the largest exporters of Biscuits from India and one of the largest suppliers of buns to QSR, to ride the discernible tailwinds of consumer spending. BFSL over the years has built a strong and recognizable brand. BFSL should continue to expand its product portfolio within the existing segments, focus on increasing sales realization and volumes, and provide differentiated offerings. The company can leverage its extensive experience to strengthen its industry position by developing new products to capitalize on emerging...
Mrs. Bectors Food Specialities Ltd. is trading above it's 100 day SMA of 386.1
Monarch Networth Capital Limited
Our positive stance on Central Depository Services Ltd (CDSL) is based on the premise of its business model, positioning, and market share gains, return ratios, and free-cashflow yield. The co. has been the biggest beneficiary of the revival in capital market activities evident in 170%+ YoY in its transaction charges (35% of its revenues) and continued growth in its annual issuer charges. With tailwinds in form of GoI initiatives and efforts by CDSL at enhancing its revenue opportunities, we see drivers for strong revenue/earnings growth. However, in the backdrop of recent outperformance and need for consistency, we lower our rating to HOLD, albeit revise our TP upwards to Rs750 (valued on a two-stage dividend discount model). We have argued for valuation...
Central Depository Services (India) Ltd. is trading above all available SMAs
Monarch Networth Capital Limited
We maintain BUY on Alembic Pharmaceuticals Ltd (ALPM') and increase our March FY22 TP to INR 1,480 (from INR 1,475 on modeling changes) thus an upside of 47% over the CMP. Q4FY21 results were on expected lines. Subdued US performance was on the back of headwinds coming from Sartans pricing erosion, which is likely to continue in the medium term. RoW business was a pleasant surprise on the back of low base post serialisation. Domestic continues to underperform due to Covid related headwinds; Specialty to lead the FY22 growth. Key medium term trigger would be USFDA's EIR for the general injectable plant which has already been audited by the USFDA on Feb-2021, deemed mission critical. Using DCF, we value Umbralisib at INR 160 per share discounting these sources of revenues including milestone based payments and CMP revenues over Umbralisibs commercial life. ALPM is currently trading at ~12x / ~9.6x EV / EBITDAx for FY22E / FY23E....
Alembic Pharmaceutic.. has an average target of 1175.00 from 8 brokers.