The domestic manufacturing story is leading the path for Dixon and it sits comfortably with a diversified product mix, client mix and fungible manufacturing facilities which can be adjusted to make use of any unutilized capacity. It has been successful in backward integration, improving operational efficiencies and design capabilities to continue on its growth trajectory. It continues to transition from the OEM model to ODM model of doing business, which should improve its margins going forward. The PLI scheme is another opportunity for Dixon, which can...
Plodded along at first, forging ahead now ISAGRO's acquisition, a Rs 20.0bn QIP a prelude to inorganic growth, 22 patent applications, a USD 1.5bn CSM order book, introduction of an intermediate used in COVID-19 drug and commissioning of 2 new multiproduct plants, 2 new products in CSM and 3 new products in the domestic business have been new feathers in the cap for PI Industries during FY20. PI Industries' foray into pharmaceuticals has been a manifestation of their perseverance. PI Industries' FY20 annual report...
During FY20, tendering and awarding of projects of NHAI has been subdued, due to lower government spending, delays in land acquisition and delays in granting of appointment dates. Furthermore, the ordering activity during the end of FY20 had come to a halt on account of the nationwide lockdown due to the outbreak of COVID-19. The Central Government has implemented several measures to provide relief in view of the prevailing situation, such as enabling 3-6 months' extension of the project period in existing contracts, releasing due payments within the...
In addition to contraction in GM, employee expenses remained firm resulted in EBITDA loss during the quarter. GM contraction for the third consecutive quarter was the most discouraging....
Though the lock down impacted performance significantly during Q1, the company was able to recover 69.8/84.6% of the sales during July/August'20. We believe that the delivery business would gain higher traction compared to dine in in the near term. The company has introduced delivery charges which is likely to mitigate impact of increased discounts and help improve margins. JFL would close down 105 Domino stores which are not profitable...
JKCE posted muted set of numbers with 27.3%/ 29.1%/ 49.5% YoY degrowth in revenue/ EBITDA/ PAT to Rs9.6 bn/ Rs2.2 bn/ Rs777 mn in Q1FY21 due to 5.1% YoY de-growth in blended realization (-1.4% QoQ) coupled with 23.5% YoY decline in blended volume to 1.77 mt. We expect 10.5%/ 81%/ 0.7% revenue/ EBITDA/ APAT CAGR over FY2022E led by 6.6%/ 13.8% blended volume growth and (1.2%)/ 1.7% blended cement realization growth in FY21E/ FY22E. We increase our revenue and APAT estimates by 9.6%/ 5.1% and 24.9%/ 8.2% for FY21E/ FY22E factoring Q1FY21 results. We broadly maintain our EBITDA margin estimates. We like JKCE because of its...
MGL reiterates its position as a trusted natural gas supplier, it remains steadfast to further expand and extend green footprints far and wide, taking strides to responsibly fuel India. During the Pandemic MGL strived to ensure that all customers who need natural gas have an uninterrupted access to the same and they have proactively geared itself to sustain its business in this situation and is firmly on the way to recovery towards PreCovid levels. While there is ample scope for growing the business of MGL organically in its currently authorized GA's, they are continuously looking out for inorganic growth opportunities. Favourable regulatory...
CEAT's 2QFY21 consol results beat estimates with margins expanding by 470bp YoY at 14.8% (PLe 11.6%) led by lower RM basket (-9% YoY), higher replacement mix at 70% (v/s 60% YoY). We expect reversal in margins to normalized levels at 11-12% in 2HFY21 led by a) increased share of OEM in...
We expect healthy revenue/ APAT CAGR of 9.1%/ 9.6% over FY20-22E. Moreover, revenue/ APAT growth significantly slows down to 0.1%/ 9.8% in FY21E due to lockdown impact and jumps back to revenue/ APAT growth of 19.0%/ 33.3% in FY22E driven by stabilization of labour and supply chain issues coupled with execution from 4 HAM/ 2 EPC projects where AD is expected in Jan'21/ Oct'20. Though the stock has increased ~20% since our Q4FY20 result update released on 27 Jun'20, the current core construction valuations of 10.8x/ 8.1x FY21E/ FY22E EPS are attractive. Thus, we maintain Buy, with SOTP of Rs271 (12x...
Revenue increased by 43.6% YoY in FY20 to Rs15 bn vs. Rs10.4 bn in FY19. SDB's revenue too increased by 52.7% YoY in FY20 to Rs5.4 bn (36.2% of revenue) vs. Rs3.55 bn (34% of revenue) in FY19. EBITDA margins down 153 bps YoY to 12.7% in FY20 vs. 14.3% in FY19. Reported PAT increased by 43.2% YoY in FY20 to Rs1.29 bn vs. Rs902 mn in FY19. PSP received order inflow of Rs15.8 bn in FY20 vs. Rs14.15 bn in FY19, a growth of 11.5% YoY. PSP's orderbook as on Jun'20 stands at Rs29.6 bn and is L1 in GIDC project worth Rs2.75 bn. Including the same, orderbook stands at Rs32.35 bn...
