Monarch Networth Capital Limited Broker Research reports

Shilpa Medicare Limited (SML') is a dominant player in Oncology (76% of total revenues). After establishing strong foothold in API segment, it leveraged its niche capabilities to forward integrate into formulations FY17 onwards. SML's strength lies in its R&D capabilities (~16% of sales) to move across value chain from APIs to formulations to Biologics, focusing on niche and complex molecules. Over last 5 years SML has been in a capex cycle (spent INR 1700crs+ on Capex and R&D) to augment its capabilities. At the same time earnings were impacted due to the Import Alert on the only USFDA plant. This led to a stretched balance sheet and an unsupportive P&L for SML over last 2 years. As per us, SML's earnings have now bottomed and should move north from here on the back of positive EBITDA contributions from Formulations and Biologics. Recombinant Albumin, large potential molecules and monetization of API business remain high probability optionality for SML. We thus value SML on 15x EV/EBITDA basis for their base business FY24E EBITDA and the valuations of key optionality as articulated in page 16 of the report. We thus arrive at a March-23 base...

INDIA l Institutional Research l Travel l 5 April 2022 Easy Trip Planners Ltd lBUYlTP:450 'No-frills' - Going for the Kill We initiate coverage on Easy Trip Planners (EasyTrip; EaseMyTrip.com; EMT) with a BUY and TP of Rs.450. Given our analysis of the competition and extensive discussions with travel experts, we believe that EasyTrip's focused, capital-light, low-cost, no-frills approach sets it apart from the rest in the online travel agency (OTA) business in terms of profitability and cash flow, remarkably similar to the...

We initiate coverage on C.E Info Systems (MapmyIndia/MMI), a premier and indigenous location platform provider, with an ACCUMULATE rating and TP of Rs1,625. MMI's near-monopoly in India is driven by its accurate mapping technique; our conversations with stakeholders have highlighted that accuracy is critical when choosing a mapping partner. MMI's comprehensive solutions, flexible pricing policy, asset-light model coupled with favorable macro factors have helped it stand out in a new-age tech space. Our conviction is further bolstered by its robust financials i.e. best in class operating margins (40%+), debtfree status, healthy balance sheet, and high return ratios, while 3.3x growth in...

We present a stock idea Jindal Stainless Ltd. (JSL), the gold standard in stainless steel and on the verge of business evolution, with a fair value of Rs260. With its merger with Jindal Stainless Hisar (JSHL), the merged entity will command a towering 55% share, with limited competition. JSL's port and raw material proximity, international finishing capabilities coupled with JSHL's strategically located facility in key domestic consumption centres will drive synergies in the merged entity. The doubling of JSL's steel melt shop capacity and expansion of JSHL's value added Special Product division should be a growth accelerator, with emerging sources of demand such as Auto, railways and infrastructure. JSL's...

We maintain BUY rating and raise TP to Rs2,520 (previously Rs2500). Increase in TP is due to roll forward to valuation on Dec'23 basis. We have reduced margin trajectory and SS pipe offtake for FY22/FY23E to account for adverse product mix. 3QFY22 performance was massive beat on revenues but margins remained subdued due to adverse product mix. We continue to remain positive on the company due to large bid book, foray into water segment and ramp up of the hot extrusion plant which should drive strong order bookings...

Is maintain our BUY rating and maintain our target price of Rs.490. The company continues to report robust topline led by strong growth in the consumer segment, 9M performance was already exceeded FY20 performance, which showcases how far the brand has come. The SIP division continues to support the overall growth. We further believe, the company's decision to demerge its SIP division is a step in the right direction, given both divisions have a different set of requirements and it potentially could pave the way for a larger chance of getting a strategic investor or an M&A opportunity. We continue to believe both the divisions have...

We retain our positive stance on VIP Industries with a fair value of Rs. 775 (Rs.700). The Company posted revenue growth of 71% in line with our estimates. The growth is also in line with the improvement in domestic air passenger traffic which stood at 92% of pre covid levels. The company does not see any disruption in demand and is gearing up for a strong summer led by the reopening of schools/colleges. Focus remains on capacity expansion in India and Bangladesh to cater to rising demand as internal sourcing shifts to 6570% of overall sales. This should enable further margin expansion. Management remains resolutely focused on branding and distribution to increase...

In our recent visit to a high-end, popular consumer products store in a Mumbai suburb, we could palpably sense tremendous buoyancy in consumer sentiment, with extremely high footfalls. Change in consumer behaviour - a move from traditional to aspirational products which are high on convenience was apparent. Glass-based products were in high demand as the consumer stayed away from plastic, and more notably, steel products have been and continue to outprice themselves in the ongoing commodity price increase wave. Our...