Company Overview Commenced operations in 2008, the company offers a comprehensive range of travel-related products and services for end-to-end travel solutions including airline tickets, hotels and holiday packages, rail tickets, bus tickets and taxis as well as ancillary value-added services. The company is ranked 2nd among the Key Online Travel Agencies in India in terms of booking volume in the 9MFY21 and 3rd among the Key Online Travel Agencies in India in terms of gross booking revenues in FY20. The company has been consistently profitable since incorporation, and is the only profitable online travel agency among the Key Online Travel Agencies in India in FY18, FY19,FY20 in terms of net profit margin Details & Objects of the Issue: The public issue consists of offer for sale of Rs 510 cr by the promoter group, MR. Nishant Pitti and MR. Rikant Pittie Rs 255 cr each Investment Rationale: a)Being Online Travel Aggregator will help in Capitalizing on online ticketing market growth opportunities b)Diversifying the business c)Strong financials Valuation and Recommendation: Over FY18-20, the company sales have grown at a CAGR of 18.7%. 9M FY21 revenue came at Rs 49.3 cr, which is majorly impacted due to Covid. Going ahead, being an online ticketing platform company, with increase in the online penetration, which is picking up pace faster due to covid, we feel, the company will be able to capture the rising opportunity arising from the industry. The company is also Diversifying its business by Focusing on Hotel and holiday packages which is a high margin business. With...
Valuation and Recommendation Bloom is one of the largest listed FC (fuel cell) company having FC revenue of USD 519 mn in CY20. Bloom grew its FC revenue by 123% in CY18 and by 39% in CY19 against historical FC industry growth of 15% CAGR. We expect Bloom to continue to outperform FC industry growth and thus we have a positive stance on MTAR. The segments of space, defence and nuclear are expected to grow at lower rates compared to clean energy/Bloom. We believe growth for MTAR should accelerate over FY22-24 based on its execution schedule towards Bloom and ISRO. In this light, valuations appear reasonable at 31x FY20 EV/EBITDA and 56x FY20 P/E. We recommend SUBSCRIBE to the issue.
We at Nirmal Bang Retail Research Desk are pleased to provide you with our Monthly Report followed after every F&O expiry. The objective of the report is to provide you insights into Equity markets, both from the Fundamental and Technical perspectives along with the stock picks for short to medium term. The key contents of the report are as follows: Market Outlook Fundamental Stocks ?Amber Enterprises ?Divis Laboratories Technical Outlook Technical Stocks ?MINDACORP ?NELCO Derivatives Outlook Derivatives Strategies ?NIFTY ?COALINDIA
We at Nirmal Bang Retail Research Desk are pleased to provide you with our Monthly Report followed after every F&O expiry. The objective of the report is to provide you insights into Equity markets, both from the Fundamental and Technical perspectives along with the stock picks for short to medium term. The key contents of the report are as follows: Market Outlook Fundamental Stocks ?Amber Enterprises ?Divis Laboratories Technical Outlook Technical Stocks ?MINDACORP ?NELCO Derivatives Outlook Derivatives Strategies ?NIFTY ?COALINDIA
We at Nirmal Bang Retail Research Desk are pleased to provide you with our Monthly Report followed after every F&O expiry. The objective of the report is to provide you insights into Equity markets, both from the Fundamental and Technical perspectives along with the stock picks for short to medium term. The key contents of the report are as follows: Market Outlook Fundamental Stocks ?Amber Enterprises ?Divis Laboratories Technical Outlook Technical Stocks ?MINDACORP ?NELCO Derivatives Outlook Derivatives Strategies ?NIFTY ?COALINDIA
Budget Summary FM has provided timely stimulus to economy through this budget This support shall continue in coming year as well No negative in the budget itself acted as a positive Q3 results are seeing growth YoY and have reached higher than pre COVID levels Stimulus will help revive growth Benefit of this budget will be indirect; No major direct up-gradation of earnings due to budget As such implementation will be the key Valuation has gone through the roof which will cap the upside in near term Budget is long term positive
We at Nirmal Bang Retail Research Desk are pleased to provide you with our Monthly Report followed after every F&O expiry. The objective of the report is to provide you insights into Equity markets, both from the Fundamental and Technical perspectives along with the stock picks for short to medium term. The key contents of the report are as follows: Market Outlook Fundamental Stocks ?Infosys ?Repco Home Finance Technical Outlook Technical Stocks ?Jyothy Labs ?V-Guard Derivatives Outlook Derivatives Strategies ?NIFTY ?SAIL
Valuation and Recommendation With HFF's focus on core housing loans' and low-risk salaried segment', the business appears less risky compared to other listed peers. HFF has grown its AUM at a CAGR of 63% over FY18-20, one of the fastest amongst listed financials. With an AUM of just Rs. 3730 Cr, the runway for accelerated growth has a long way to go. Further, HFF has had a strong control over asset quality with one of the highest collection efficiencies post covid at 97.6% as on December 2020. Upon comparing HFF with its closest listed peer, Aavas Financiers, we observe that HFF's salaried customer mix stands at a healthy 73% (even ahead of Can Fin), far ahead of Aavas's 35% mix. Also HFF's exposure to LAP+Developer loans mix is much lower at 8% compared to 26% in case of Aavas. HFF is being offered at a 47% discount to Aavas's valuations and thus we recommend to Subscribe' to the issue.
Valuation and Recommendation: Between FY18-20, Indigo Paints Ltd's revenues have grown at CAGR of 26% while EBITDA/PAT grew by 88%/93% respectively on the back of improving profitability. EBITDA margins have improved from 6.5% in FY18 to 14.6% in FY20 and further to 18.5% in 1HFY21. As the company is still in growth phase, we believe, it is likely to maintain the higher than the industry revenue growth. With reduction in A&P spend (as% to sales), EBITDA margins are expected to improve further and likely to be in vicinity of market leader. However, the Issue price of Rs 1490/share captures the near-term financial performance. We expect IPL to report Rev/EBITDA/PAT to grow at a CAGR of 18%/28%/31% respectively. The stock is trading at 65.5x FY23E on our estimates as compared to Asian Paints/Berger Paints' 61.1/73x consensus earnings. Given the sound management and strong growth prospects, we recommend Subscribe.
IRFC is a proxy play on the strong capex growth in Railways which has witnessed a considerable pickup post FY15 as the NDA Government accelerated the overall infrastructure spending including Railways. Railway capex witnessed a growth of 20% CAGR post FY15 compared to 14% CAGR in the preceding ten years. Also, stable cost-plus business model makes IRFC a low risk (nil NPA), low return (11-12% ROE) company. Upon comparing IRFC with other PSU NBFCs having exposure to infrastructure sectors, we observe that IRFC has a marginally lower ROE which is compensated by higher growth; although valuations appear to be higher than peers. We believe IRFC is fairly priced at Rs. 26 and has limited scope for any meaningful upside. We rate the issue as Neutral'.
We saw Nifty moving up by over 7% in December month driven by optimism on account of additional stimulus in US and Europe, positive news on vaccine approval and increasing commodity prices. Real Estate, Metal and IT sector outperformed whereas Auto, Power and Oil & Gas underperformed The expectation of stimulus by developed nations and a depreciating dollar have further moved money into emerging markets. We saw emerging markets like Brazil, Russia and South Africa along with India outperform developed nations which were impacted by increasing COVID cases and further lockdowns. Going forward the expectation of better results for Q3FY21 is driven by further opening up of economy along with festival season leading to an increase in demand and an increase in commodity prices. Various companies in sectors like IT, Metal, Cement, Ceramic, select Auto, various basic chemical, Textile, Appliances are likely to report better results whereas the larger sector viz Financial will recognize NPAs post moratorium. Sectors like Travel and Hospitality are still struggling whereas Retail is coming back. Some companies will also see margin pressure on account of increasing commodity prices. In the later half of Jan the expectation of Budget will also get built-up and can support the market. Sentiment related to the start of administration of vaccine in India to frontline workers can also support the market. Although, one needs to be watchful of - inflow of funds from FIIs where the pace has slowed down in recent past; and the excessive valuation of the market. We expect sentiment to remain positive...
Valuation and Recommendation AWHC's growth shall be lumpy and dependent on AWHC bagging new contracts; however over the long run, growth should atleast be in line with that of industry growth of 14% CAGR over FY20-25E. Return on capital employed is expected to remain stable around ~20% in line with the past trend on the back of moderate and region specific competition with entry barriers in place to restrict new competitors. AWHC enjoys a long and credible track record of proven execution capabilities (with large municipalities in Mumbai and NCR region). Expansion into newer geographical clusters and diversification into new growth areas of managing landfills and Waste To Energy should also aid future growth. AWHC is being offered at P/E of 21x its FY20 EPS (vs. international average of 27x). We believe AWHC's pricing has left some scope for upside in the long term and recommend subscribing to the issue.
Company Overview Mrs Bector Food Specialties Ltd (MBFSL) is one of the leading companies in the premium and mid-premium biscuits segment and the premium bakery segment in North India. It manufactures and market a range of biscuits such as cookies, creams, crackers, digestives and glucose under its flagship brand Mrs. Bector's Cremica'. It also manufactures and markets bakery products in savoury and sweet categories which include breads, buns, pizza bases and cakes under the brand English Oven'. It is also one of the largest suppliers of biscuits to Canteen Stores Department supplying in 33 locations across India and an approved and listed supplier for Indian Railways. Details & Objects of the Issue: The issue of Rs 540.5 cr comprised of Rs 40.5 cr fresh issue and Rs 500 cr Offer for Sale. The company intends to incur capex from the fresh issue. Investment Rationale: a)Strong brand in biscuits as well as bakery segments b)Leading exporter of Biscuits c)Benefits started reflecting of the capex done in last three years d)Healthy Financials (a) Improving Return Ratios (b) Strong profitability and healthy revenue growth (c) Robust Balance Sheet Valuation and Recommendation: Between FY18-20, Mrs Bector Food Specialty's revenues have grown at CAGR of 5% while H1FY21's revenue grew by 18%. FY20 revenues were affected due to covid related disruptions in supply chains and shut down of large QSR and institutional clients. The company is earning steady EBITDA margins of ~12-12.5% however it has improved to 16.7% in 1HFY21 on the back of pent-up demand and reduction in other expenses....
GLOBAL METAL DYNAMICS Ferrous Chinese steel (HRC) export price sustain upward trajectory in November 2020 to ~US$ 546/tonne. (up by 5.6% mom),However the prices are down 5.6% on FY20YTD (April-Nov'20) basis. China Crude steel output down marginally on monthly premises to 92.2mn tonne in Oct'20 owing to curtailed production and winter restriction, the production for YTD (April-Oct 2020) stood at 642 mn tonnes up 7.1% YoY. China recorded iron ore production at 78.42 mnt in Oct'20, up by 6.7% MoM, The output for FY20 (April-Oct) recorded ~2.5% rise to 529mnt. The output picked up amid high Chinese demand. Iron ore prices (CFR China 63% Fe) increased by 3.2% on mom basis to US$123/tonne on increasing buying interest among steel players. Australian coking coal (HCC Premium) fell by 24.2% MoM to $90/tonne as demand sentiments weakened amid growing panic over the impact of possible coal import restrictions in china, the prices are down by 40% on FY20YTD basis. India crude steel production up by 6.3% on mom basis to 9.06mnt on improved capacity utilization and pick up in downstream demand from construction, auto & white goods sector, The production for YTD (April-October 2020) stood at 49mnt down by 23% YoY. Domestic steel players continue to increase the steel prices given the pick-up in domestic demand and firm trend in international prices. HRC prices increased by 7.4% to Rs 46,000/tonne amd Rebar price increased by 9.5% to Rs42,488/t in Nov 2020. Domestic iron ore prices in India remain supported on the back of tight availability (slower ramp up...
Valuation and Recommendation: Although late entrant in the industry, Burger King store growth has been 44% over FY17-20 and has reached 261 as on Sep 20. With this, sales for the company have grown at a CAGR of 55% over FY17-20 and has reached revenue of Rs 841 cr .Going ahead, the Company is targeting to open at least 700 restaurants by 2026. We feel higher store expansion will help the company to grab the rising opportunity arising from the industry. FY20, EBITDA margins stood at 12.3% very much near to Westlife EBITDA margin of 13.8%. Cash flow from operations stood at Rs112.7cr at 108% of EBITDA in FY20 indicating negative working capital requirement for the company. However higher addition of stores is leading to higher capex, with this company reported negative FCFF in FY20.At the given upper price band of issue of Rs 60, Burger King is offered at EV/ sales of 2.9x FY20 which is much attractive as compared to peer. We recommend subscribing to the issue.
We at Nirmal Bang Retail Research Desk are pleased to provide you with our Monthly Report followed after every F&O expiry. The objective of the report is to provide you insights into Equity markets, both from the Fundamental and Technical perspectives along with the stock picks for short to medium term. The key contents of the report are as follows: Market Outlook Fundamental Stocks ?Cholamandalam Investment & Finance ?Laurus Labs Technical Outlook Technical Stocks ?HEROMOTOCO ?MANAPPURAM Derivatives Outlook Derivatives Strategies ?NIFTY ?TATAPOWER
Valuation and Recommendation: With a long run-way for growth and visible ROE stabilization at ~18% + levels in the medium term on the back of - strong AUM CAGR of 30% over FY21-25E and lower credit costs, we believe AU's valuations will gravitate towards that of leading banks and NBFCs demonstrating similar ROE, growth and asset quality profile. We value AU at PE/G of 1x at 30x Sep 2022 EPS of ~Rs. 37 at Rs. 1,100. At our target price of Rs. 1,100, AU would trade at an implied P/BV of 5.0x Sep 2022.
Valuations and Recommendations The stock has outperformed the broader indices backed by its strong and consistent financial performance. Given the resilience shown by the company in current unprecedentent times, we remain positive on the future prospects of the company for coming period. We are projecting 23% CAGR in sales between FY20-FY22E however expects EBITDA to grow faster at 31% during the same period, led by improvement in EBITDA margins to 15% in FY22E from 13.2% in FY20. The stock is currently trading at 20.7x on our FY22E earnings, which is still inexpensive as compared to other FMCG players.
Valuation and Recommendation: Between FY18-20, Gland Pharma's revenues have grown at CAGR of 28% while Q1FY21's revenue grew by 31%. The company is engaged in complex products hence it has healthy profitability. Due to no debt and high cash, the company has strong PAT margins at 29.4% in FY20 which has improved from 19.8% in FY18. We believe the company is able to maintain CAGR of 25% for medium term with strong profitability. Though, Q1FY21 margins looks on the higher side, we believe EBITDA margins in the range of 35-38% are sustainable. The company intends to do capex with the IPO and cash on books, which can temporarily affect the return rations in near term however the long-term trajectory remains positive The issue price commands P/E of 31.7x FY20 and 19.5x Q1FY21 annualized earnings at the upper price of band of Rs 1490-1500, which is at upper end of Industry. However, going forward the higher revenue growth, improving profitability would make it a better choice among peers. We recommend Subscribe on the issue for long term gains.
