Zensar does have a patchy execution track record and the turnaround thesis will not be without certain quarters of misses (as seen recently in H1 FY23). That said, valuations at <1x FY24 EV/Sales and 24% of market cap in cash adequately facto that a healthy cash buffer of US$ 179m (24% of M.Cap) also provides support to its valuation.
Titan Company has come a long way from pioneering in just branded wrist watches to creating an empire with several businesses (Jewellery, Wearables, Fragrances, Accessories and Ethnic Wear) under its roof. The company has reported decent numbers in the latest quarter with a YoY growth of 13.4% clocking in ? 11,383 Cr of Revenue.
Arvind Fashion has recorded a robust quarter with superior revenue growth and margin expansion led by strong growth in power brands coupled with operating leverage and lower discounts. Sharp growth in revenue from power brands (13% YoY) accounts ~80% of the total revenue on the back of 1) USPA shows encouraging growth in retail LTL and high growth in departmental stores leading to reduced discounts.
Prince reported strong volumes and fragile margins, while the EBITDAM and PATM saw decline in YoY and improvement in QoQ (-690 bps/-500 bps and 1,160 bps/880 bps YoY/QoQ respectively). In Q3 FY23, despite an inventory loss of ?25-30Cr, the company reported an improvement in the margins on QoQ basis on the back of 35% growth in volumes and ?13 per kg growth in price.
Trent continued to report stellar growth in its Topline numbers with Revenue up by 17.96% QoQ and 53.65% YoY as of Q3 FY23. Westside saw a handsome growth in LFL by 17% YoY on the back of increased footfalls along with strong growth across emerging categories (Beauty, Innerwear, Footwear and personal care products).
We maintain BUY with a target price of Rs 3,365 based on 40x FY25E EPS of Rs 84.1 on the back of strong growth ahead of mutual fund AUM (AAUM went up Rs 40.8 Lakh Cr in Q3FY23). CAMS posted in-line revenue (+0.5% QoQ).
VBL has once again reported incredible value/volume growth (28%/18% YoY) in Q4CY22, way ahead than our estimate on the back of strong demand especially for Sting (fastest growing beverages market) and share gain in untapped market, Tropicana and Dairy products. EBITDA increased by 48.1% to Rs 3,075mn YoY.
CIFC reported a strong 31% YoY net profit growth driven by a healthy expansion in net income and a sharp, 36% YoY decline in credit costs. The business momentum continued in a robust trajectory with the AUM increasing 31% YoY with a continued show of strong contribution from new businesses to the incremental growth as well as market share gains in the traditional segments. The management commentary was positive highlighting improving structural growth factors, especially in the vehicle finance segment.
eClerx Services Q3 results were better-than expected on US$ revenue growth but profitability was lower-than-expected. Q3FY23 revenue stood at US$ 85.1mn (grew 3.2% QoQ as well as cc terms). Top-10 client growth declined 0.6% QoQ in dollar terms, led by lower onshore revenues. The management indicated that top-10 client softness was limited to onsite engagement and that offshore momentum is intact.
Cera Sanitaryware has delivered a robust quarter reporting a Revenue growth of 18% YoY and PAT higher by 33% on YoY basis driven by a healthy demand environment which was aided by sustained interest from customers to improve and upgrade their homes.
