Bonanza Broker Research reports

Q1 FY23, was amongst the best quarters where AFL reported a revenue jump of 171% YoY to ?920 Cr in Q1 FY23 from ?340.4 Cr in Q1 FY22

Prince reported fragile volumes and margins, while the EBITDA and PAT margins saw a sharp decline (410 bps/530 bps and 510 bps/730 bps YoY/QoQ respectively) in Q1FY23.

In India, the market for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) is quickly expanding as gas is used in a variety of industrial functions. Despite this, the natural gas percentage in India’s energy mix is one of the lowest in the world. This provides MGL with significant potential for growth in terms of market penetration.

Prices have respected the channel's upper and lower band.

In India, the market for Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) is quickly expanding as gas is used in a variety of industrial functions.

The recovery in the industrial segment, where CG POWER is the market leader with >35% market share in Motors.

CAMS reported inline revenue growth (17.6% YoY, while marginal dip of 2.8% QoQ) in Q1FY23, but EBITDA saw de-growth of 14% QoQ.

VBL’s strategy towards expanding the distribution network (3 Mn outlets, out of which, 0.4 Mn are exclusive for “Sting”), into new territories where it has very small market share indicates huge scope to grow. VBL is also benefitting from demand recovery after two consecutive years of pandemic related disruptions.

Home First Finance Company (HFFC), a tech giant of Housing Finance market, is in a sweet spot to capture massive affordable housing opportunity in India by doubling its branch network (80 as on FY22) in the next 3 years.

Varun Beverages Ltd. (VBL) a near monopoly of PepsiCo, is a solid play on the emerging beverage market in India. VBL’s focus towards PAN India expansion [reached 85% of Indian PepsiCo volume (26% in CY11) after acquiring South and West region], CAPEX for its backward integrated facilities (Pathankot and Jammu & Kashmir), improving product mix, huge scope to capture Indian soft drinks market (44 bottles per capita consumption in India v/s 1,496 bottles in USA) and debt reduction will promote further growth.