Uflex Ltd. reported a decent quarter where consolidated sales for the quarter increased by 13.5% YoY to Rs 2057.3 cr, however, the overall volume growth remained muted on the back of flattish packaging and film volume growth. Consolidated EBITDA margins remained flat YoY at 12.5% in Q4FY19 vs 12.3% in Q4FY18 however improved sequentially from 11.4. PAT for Q4FY19 was at Rs. 70.1 cr vs Rs 71.1cr/54 cr in Q4FY18/Q3FY19 respectively. PAT was lower due to higher tax rate, which is expected to normalize at current levels going ahead. Adjusting...
Revenue from operations for the company grew by 7% YoY to Rs. 771 Cr vs Rs. 721 Cr YoY and Rs. 769 Cr QoQ. EBITDA stood at Rs. 82 Cr (same as Q4FY18) however EBITDA margins expanded by 350 bps QoQ to 10.6% for the quarter, led by a 460 bps improvement in gross margins (QoQ). EBITDA margins were at 11.4% during Q4FY18. Adjusted net profit was flattish on...
Vaibhav Global Ltd (VGL) reported 16.9% volume growth in retail segment for Q4FY19 and 14.2% for the full year, which is within the given guidance of the management. Sales grew by 9.9%/16.5% yoy for Q4/FY19 respectively. Constant currency sales in US grew by 10.8%/8.8% in Q4/FY and in UK by 17.7%/24% respectively. Gross margins improved yoy to 62.7% in Q4 from 54.9% and for FY19 from 59.3% to 62.5%, due to higher volume growth and lower B2B sales. This resulted in ~80 bps yoy improvement in EBITDA margins at 9.0% vs 8.2% in Q4FY18. For FY19, EBITDA margins were 11.2% as compared...
Advances stood at Rs. 50,616 Cr vs Rs. 45,973 Cr in Q4FY18, a growth of 10% YoY. Retail loans exhibited a robust growth of 48% YoY contributing 22% to the overall advances (Core Retail growth stood at 24% while the remaining growth was contributed by IBPC portfolio taken on books for 90 days). The bank chose to grow cautiously in Agri (+3% YoY), SME (+6% YoY) and Corporate (-2% YoY) with each contributing 16%, 34% and 28% respectively. We expect loan growth of 15% CAGR over FY19-21E. NIMs were higher 22 bps QoQ at 3.88% on the back of increase in yields....
With an eye on outcome of the upcoming LS elections on 23 May 2019, we believe PSU stocks in industries like defense and railways would stand to be big winners if the incumbent government returns to power. In a scenario where the incumbent government loses, these businesses would underperform, however current trough valuations would restrict any major decline in the stocks of these companies. Upon analyzing the deeply undervalued PSU stocks from defense & railway industries, we identify Bharat Dynamics as a clear outlier. With the company beating all other PSUs on most parameters, we believe the stock presents a good entry opportunity...
Equitas Holdings reported another all-round healthy quarter. AUMs stood at Rs. 11,834 Cr, a growth of 44% YoY and 9% QoQ. Growth was mainly driven by Micro LAP which grew by 74% YoY (32% mix) while Vehicle Finance grew by 30% YoY (25% mix), mainly due to sharp increase in the new CV book. Microfinance grew by 34% YoY (26% mix). Among the new businesses, Corporate grew by 151% (4% mix) while Agri grew by 84% (4% mix), albeit on a smaller base. We expect the company to maintain its loan growth momentum and grow its AUM at 33% CAGR over FY19-21E....
Advances stood at Rs. 23,568 Cr vs Rs. 20,337 Cr in Q4FY18 a growth of 16% YoY. Loan growth trended down owing to lower growth in corporate book as the bank shifted its focus completely towards granular loans like Mortgage, SME, CV, Gold and Agri. Loan book ex-corporate grew by a healthy 21% YoY. Mortgages, Agri, Corporate and SME+MSME contributed...
KVB reported a muted quarter on the asset quality front; with profits plummeting on the back of significantly higher provisions Advances stood at Rs. 47,766 Cr vs Rs. 44,836 Cr in Q3FY18 a growth of 7% YoY. Retail loans exhibited a robust growth of 25% YoY contributing 19% to the overall advances. The bank chose to grow the Agri, SME and corporate book cautiously, with each contributing 17%, 35% and 28% resp. We expect loan growth of 14% CAGR over FY19-21E. NIMs were higher 3 bps QoQ at 3.60%. They were at 3.76% YoY resulting in...
Uflex Ltd. reported a muted Q3FY19 as it faced headwinds given the volatility in the crude oil prices during the quarter. Though consolidated sales for the quarter increased by 18.2% YoY to Rs 1979.3 cr, the volume growth was mere 3.1% YoY, with packaging business volumes de-growing 7.5% and film volumes growing at 6.3% YoY. The key reason for low volume growth is delay in purchases by customers in declining pricing phenomena. Consolidated EBITDA margins remained flat YoY at 11.4% in Q3FY19 vs 11.6% in Q3FY18 however declined QoQ from 12.9%, due to declining prices. The management reiterated that EBITDA/ton...
Healthy topline growth marred by steep decline in gross margins; expect margin pressure to persist Revenue from operations for the company grew by 21% YoY to Rs. 769 Cr vs Rs. 636 Cr YoY and Rs. 773 Cr QoQ. EBITDA stood at Rs. 54.8 Cr as against Rs. 71.7 Cr same time last year (degrowth of 24%) and Rs. 82.3 Cr sequentially. MCL witnessed 410 bps EBITDA margin contraction YoY at 7.1% for the quarter, led by a 520 bps decline in gross margins. Adjusted net profit came at Rs. 34.0 Cr vs Rs. 37.9 Cr same time last year, degrowth of 10%....
Vaibhav Global Ltd (VGL) is progressing well on the charted path. The company reported 18.4% volume growth in retail segment, ahead of the management's guidance. However, the reported sales growth is 11%, due to lower B2B, which is an opportunistic business for the company. Gross margins continued to show improvement yoy as well as qoq on account of higher retail sales. Gross margins for the quarter were 64% vs 57%/62% in Q3FY18/Q2FY19 respectively. This resulted in ~100 bps yoy improvement in EBITDA margins as well at 13.3% vs 12.4%/11.7% in Q3FY18/Q2FY19 respectively....
Equitas Holdings reported an all-round healthy quarter. AUMs stood at Rs. 10,861 Cr, a growth of 41% YoY and 9% QoQ. Growth was mainly driven by Micro LAP which grew by 61% YoY (32% mix) while Vehicle Finance grew by 26% YoY (25% mix) and Microfinance grew by 20% YoY (27% mix). Among the new businesses, Corporate grew by 244% (4% mix) while Agri grew by 121% (4% mix). We expect the company to maintain its loan growth momentum and grow its AUM at 35% CAGR over FY18-21E. Key highlight during the quarter was the expansion in NIMs to 8.98%, +121...
Best of both worlds: yield of NBFCs, cost of banks Equitas offers a unique opportunity to participate in a business model that offers nimbleness and pricing power of an NBFC on one hand and the deposit generating ability of a bank on the other. Equitas has successfully diversified across 9 products with its core focus on self-employed individuals and micro...
Efficiencies drive robust profit growth; Thesis unfolding DCB reported another healthy quarter on the balance sheet front; profits surprise positively on the back of significant decline in cost/income. Advances stood at Rs. 22,888 Cr vs Rs. 18,595 Cr in Q3FY18 a growth of 23% YoY. Mortgages, Agri, Corporate and SME+MSME contributed 40%, 19%, 15% and 12% resp. We expect loan growth of 22% CAGR over FY18-20E. NIMs were flat at 3.83% QoQ. They were at 4.12% YoY resulting in NII growth of 17% YoY. NIMs are expected to inch higher in coming quarters. Other...
Extended winter will support near term RESULT!!! Monte Carlo Fashions Ltd, established in 1984, has a comprehensive product portfolio of garment & winter wears across woolen, cotton & cotton blended, home furnishing and kids segments. Company sells its product under umbrella brand of Monte Carlo. As on Sep 18, the company has 2500+ MBO, 242 EBO...
Vaibhav Global Ltd's (VGL) journey has been a roller coaster ride since its inception. After having a decade or so smooth and growth phase at the start, it faced huge losses during the global turmoil which pushed the company into CDR. However, the management took corrective steps in terms of restructuring the business (like converting the business model from pure jewellery company to retail company, shutting down of loss making subsidiaries etc). Post this, the company not only came out of the process but had its most profitable years. However, this attracted PE funded new players with much more aggressiveness...
