Monarch Networth Capital Limited Broker Research reports

Valuation and rating: We value La Opala on Dec.23 EPS of Rs 13 (Sept 23e.12.4) leading to a TP of Rs .470 (Rs.425), an upside of 18%. We have revised our earnings estimate upward marginally, adjusting for the exceptionally strong performance. With pent-up demand still not entirely satiated, steady but palpable gains from substitution of competing categories, and competitive pricing for what is still perceived as semi-luxury, and La Opala's leadership position, value enhancement can be formidable. Further, with new capacity expected to come on stream by Q1FY23e and foray into borosilicate glass,...

We present an investment idea on Antony Waste Handling Cell (AWHCL) with a fair value range of Rs490-520. The company is at the forefront of India's Municipal Solid Waste (MSW) management industry (primarily caters to Indian municipal corporations) with an established track record of over two decades and is present across the entire spectrum of MSW services, including solid waste collection, transportation, and processing &disposal services. Given the company's proven abilities in the sharply rising MSW arena across India due to rising urbanization and...

CMP: Rs1,071 l MCap: Rs11.2bn l Fair Value: Rs1,190-1,250 Creating its niche in a crowded market We present to you an investment idea on Saksoft, a niche technology specialist that provides a comprehensive suite of business transformation, cloud solution, information management, application development and testing services enabling companies efficiently change/run the business'. We expect the company to clock 16% CAGR revenue during FY2124E driven by its capabilities in select verticals, strong presence in UK and US and domain expertise (helping create familiarity and client recall). The technological upcycle coupled with Saksoft's capabilities in thriving sectors provides a platform for future growth, while on...

Cost headwinds to rise; DI pipe thesis intact We lower our TP to Rs1330 (Rs1440 previously) and re-iterate BUY rating on Tata Metaliks (TML). We have lowered FY23 estimates to account for delay in commissioning of phase 2 of DI pipe expansion (now expected in 3Q/4QFY23). The performance in 3QFY22 was subdued due to inflation in coking coal/ coke and iron ore cost, further deteriorated due to instability of blast furnace post the maintenance shutdown. Operating profit is expected to remain weak in 4QFY22 mainly due to coking coal cost pressure. We expect a turn-around starting 1QFY23 when the high price Ductile Iron (DI) pipe contracts kick in along with...

We recently interacted with the management of Aptus Value Housing Finance India Ltd. (Aptus) to get their perspective on growth, branch expansion and ROE. Management expects AUM growth at 25-30% while also placing greater attention around asset quality. Aptus plans to penetrate deeper in its existing markets before foraying into newer territories and through the contagious branch expansion plans. Management pointed at investing into technology given its operational benefits and foresees RoE at 20-22% levels by FY25 mainly driven by lower cost of funds (on back of rating upgrade) and higher leverage. We expect Aptus to deliver RoE of...

INDIA l Institutional Research l IT l 3rd January 2022 Expleo Solutions l Fair Value: 1,900 Quality' assurance player ready to cash in We reiterate our positive stance on the stock and revise our Fair Value to Rs1,900 (earlier Rs1,480) with upward revisions in our FY22/FY23/FY24 estimates driven by robust outlook from the management, synergies from the merger that enhances growth visibility, and focused approach on the Indian entities by the MNC parent. Demand resilience and investments in next-generation technologies (highlighted in our recent...