CAMS, a leader in duopoly RTA market with 70% market share is trading at mouthwatering valuations. High entry barriers, stickiness of AMCs, strong growth in the underpenetrated mutual fund AUM and rising share of high yield equity segment from 38% to 50% by FY25E are some of the value drivers for the company. CAMS has posted robust Revenue/EBITDA/PAT growth of 9%/13%/18% CAGR respectively from FY18 to FY22 and it is further expected to clock Revenue/EBITDA/PAT growth of 16%/14%/13% respectively from FY23E to FY25E.
Prince has been enjoying high valuations since its IPO. We believe it is well-positioned to capture incremental market share and continues to be a strong challenger brand to sector leaders. The margins were a bit shy in FY22 as PVC prices declined, but it will improve steadily in FY23-FY24.
Voltas being a strong brand in the room air conditioner (RAC) segment has maintained its market leadership position in India despite rising competition and various macro level abruptions such as demonetization and GST implementation. Voltas' Unitary Cooling Products (UCP) segment contributes ~50% to sales and recorded ~12% CAGR in FY12-18. A strong brand coupled with over 6,500 dealers has helped increase its market share in ACs from 14% in FY10 to ~21% in FY18. Product mix has improved towards energy efficientinverter RAC segment as inverter AC currently...
Voltas being a strong brand in the room air conditioner (RAC) segment has maintained its market leadership position in India despite rising competition and various macro level abruptions such as demonetization and GST implementation. Voltas' Unitary Cooling Products (UCP) segment contributes ~50% to sales and recorded ~12% CAGR in FY12-18. A strong brand coupled with over 6,500 dealers has helped increase its market share in ACs from 14% in FY10 to ~21% in FY18. Product mix has improved towards energy efficientinverter RAC segment as inverter AC currently...
Recently, the stock price of Mindtree Ltd.(Mindtree) corrected by ~28% from 52-week high of Rs.1,184as the company has posted lower revenue growth mainly due to closure of some projectin Europein the quarter. Mindtree, a mid-tier IT company, has presence in select verticals like, BFSI, Retail, Travel, Hi-Tech and services like, Digital, IMS and ADM. Its success is largely due to its niche positioning and strong management pedigree. Its strategy has been backed by strong execution, which has helped it grow above industry rate at a CAGR of 14% in IT Services business in the last five...
Havells is one of the fastest growing fan brands in the Indian market with market share at ~17% while in the switchgear market, it is the market leader in the low voltage segment with ~28% market share. Over the period, Havells has established a network of ~7,500 dealers spread across the four regions servicing ~100,000 retailers/touch points in India. It is highly successful in augmenting market share of existing products along with launching new products, which have received good response driven by high brand visibility. Recently, Havells has acquired the...
Recently, the stock price of TVS Motor Company Ltd. (TVS Motor) corrected by ~22% from 52-week high of Rs.795 despite reporting good set of numbers in the recent quarters. TVS Motor is the 4th largest 2-wheeler manufacturer with a strong presence in the scooter segment. Its scooter segment has surpassed the growth of the motorcycles segment over the past couple of years and currently contributes 30% to the total 2-wheeler volume. Volume growth of TVS Motor attributed to good response to new products in domestic...
Recently, the stock price of Bajaj Finance Ltd. (Bajaj Finance) corrected by ~17% from 52-week high of Rs.1,986 despite reporting good set of numbers in the recent quarters. Bajaj Finance has a diversified loan portfolio and a leadership position in under penetrated and growing segments like consumer durables (CD) financing, lifestyle product financing, two-wheeler financing, LAP, etc., which account for its ~50% of its portfolio. Despite a weak economic environment in the past few years, these segments have helped Bajaj...
Recently, the stock price of Berger Paints India Ltd. (Berger Paints) corrected by ~18% from 52-week high of Rs.286 despite reporting good set of numbers in the recent quarters. Berger Paints is the 2nd largest company in decorative paint segment with market share of 19%, just after Asian paints. Over the last couple of years, it has gained market share by implementing various strategies. It has registered a phenomenal CAGR of 12% in its topline as well as CAGR of 21% in bottomline during FY11-17. Crude oil and its derivatives, which...
L&T; has planned a 5-year strategic plan Lakshya' to focuses on doubling sales to Rs.2,000bn by FY21E, improving margins (ex-services) from 10% in FY16 to 11.2% by FY21E along with value unlocking either by listing the asset or by divesting non-core assets. L&T; also has plan to improve its RoEs from 12% in FY16 to 18% in FY21E and bringing down working capital from 24% in FY16 to 18% by FY21E. L&T;'s efforts to successfully implement of Lakshya are visible in its recent performance on multiple fronts. It has able to successfully bring down net working capital to 20% in Q2FY18 from 24%...
