Monarch Networth Capital Limited Broker Research reports

Valuation and rating: We value La Opala at 36x on Sept.23 EPS of Rs11.8 leading to a TP of Rs400, an upside of 33%. The company's state of the art manufacturing facility has always kept them ahead of the competition; further, strategic location of the plant is an added advantage, with huge benefits being offered by the Uttarakhand government. We believe these factors will always help the company deliver industryleading margins that are likely to be sustained. We further project that demand for Opalware products is on the rise and new capacity expansion coupled with launch of two new brands is expected to drive growth. With channel checks also echoing a similar trend and given La Opala's brand pedigree and impressive financials we...

In a first-of-its-type initiative for us, we successfully hosted ~30 companies for MNCL's Opportunities Unlimited investor conference during Sep 21-22, 2021. The companies represented an assortment of sectors, and the ensemble cast included entities that are relatively under-the-radar for investors. Here are the key general takeaways: Aggressively picking up the pieces after the second wave, optimism back. The evidence for this was universal. Whereas the first wave disrupted production, supply chains and overall plans brutally, the second wave at worst ruffled a few feathers. Employees are back to factories/branches in large numbers, vaccination records are impressive, most points of sale have opened fully, and flailing consumption levels have got rejuvenated. Nearly every company projecting better topline performance. The three remaining quarters of this financial year definitely look better, partly due to a more welcoming environment in general and pent-up demand in particular. Few companies did mention that they are nearly back to preCovid levels or will soon be, whereas others were providing a slightly longer timeline for the same, perhaps born out of the pandemic-induced caution....

As the economy unlocks, the opportunities are endless. However, identifying the right one is like finding a needle in the haystack. Monarch Networth presents OPPORTUNITIES UNLIMITED, a sector-agnostic institutional investors conference on 21st and 22nd September 2021, where we are going to unlock the potential of some of India's hidden gems for you to explore and make an informed decision. Read through the document on the list of the participating corporates, management representation, and why meet the company. Sign-in to register for the conference: https://forms.gle/PgRwfihN2pzFQE5z8...

We initiate coverage on Sundaram Finance (SUF), a thinly covered stock with best-in-class asset quality and healthy earnings profile with a BUY rating and TP of Rs.2,830. In what is unquestionably unique and a mark of superiority among lenders, SUF has managed its own business growth and invested in several profitable subsidiaries without dilution for nearly 50 years. Further, deliberately calibrated but unspectacular growth resulting in stable asset quality across CV cycles has been its defining characteristic. From multiple checks, we conclude that cyclical tailwinds in the CV industry bode well for SUF, buttressed as it is by steady...

Outlook: As Fiem is already supplying to key electric vehicle players like Okinawa, Ampere, Hero Electric, Revolt, and Electrotherm, we feel that it has a strong firstmover advantage with key players in the 2-wheeler EV industry. While, due to the second lockdown, 1QFY22 was a sequential dampener for the entire auto industry, we feel 2-wheelers demand remains a long-term positive story. With a healthy...

INDIA l Institutional Research l Chemicals l 18th August 2021 Valiant Organics l BUY l TP: 2,100 Strong revenue growth, margins impacted We maintain BUY rating and TP of Rs2,100 with no revisions in our FY22/FY23 estimates as we expect revenue and margins to improve in subsequent quarters. Valiant's revenue growth is in line with our expectations as the company posted revenue growth of 65.5% YoY and 4.3% QoQ. Gross and EBITDA margins witnessed contraction due to non-favorable raw material prices coupled with the loss of production days at the Jhagadia plant. Going...

Valuation and rating: We value La Opala at 36x on Sept.23 EPS of Rs 11.8 leading to a TP of Rs 400 (Rs.380) an upside of 47%. The increase in target price is due to the upward revision in earnings by 6.2% and 3.8% for FY23E and FY24E and due to shift in valuation on Sept'23 basis (Mar'23 previously). The Company started the quarter on a very promising note, however, lockdown truncated the overall enthusiasm. However, with restrictions now being lifted and the number of cases on a steady decline, the company is cautiously optimistic. Going forward the company is looking at introducing two new brands in premium range, which is expected to improve all product offerings. We believe...

Manappuram Finance (MGFL) results surprised negatively with a sharp decline in gold AUM and higher auctioning. Healthy revenue/earnings growth, traction in its MFI portfolio, improved CE in July, and new clientele addition were key positives. Q2/ H2FY22 will be a quarter of test and define the strength of the business model for the gold financiers. We expect MGFL to navigate well as it has resorted to auctioning (vs. recognizing it as NPA) given its product design. We like MGFL for its diversified balance sheet, healthy revenue/earnings growth, and superior return ratios. Retain BUY with...

Valuation and rating: We assign a PE multiple of 32x (premium to other chemical companies as discussed above) on Sept'23 earnings of Rs110 post which we arrive at a target of Rs.3,520, an upside of 15% from the current levels. The company sees demand remaining steady, while logistic issues could pose a challenge in the short term. We see new product launches will drive growth in the future. Commissioning of CAPEX in Sep'21...

Valuation and rating: We value RMT at an average of 26x Sept'23 PE and 16x Sept'23 EV/EBITDA to arrive at TP of Rs2,550 and maintain BUY rating. Increase in TP is due to shift in valuation on Sept'23 basis (Mar'23 previously). Despite a muted 1QFY22, we maintain our rating along with no change in FY22E/ FY23E estimates as we expect revenue and margins to improve in subsequent quarters due to higher realisations and improving order book. Key...