Flashback Report - Q3FY14

Stocks for
Year 2014
- A Follow-Up Research update on our Multibagger Stock Picks
Q3- FY 14 : Special Flash Back Report
Specialists in discovering Multibagger stocks
Content Index
WisdomfromInvesting Legends.
Importance of Portfolio Management.
Quality Long-Termstocks for your Portfolio. (Top-20 HBJ Ideas)
Letter from Research Desk to Multibagger members.
Flashback Report with Ratings of previous Picks.
Special Focus on Metals & Mining Sector.
Quarterly Results Analysis of Multibagger Stocks.
WisdomfromInvesting Legends.
Importance of Portfolio Management.
Quality Long-Termstocks for your Portfolio. (Top-20 HBJ Ideas)
Letter from Research Desk to Multibagger members.
Flashback Report with Ratings of previous Picks.
Special Focus on Metals & Mining Sector.
Quarterly Results Analysis of Multibagger Stocks.
Wisdom from the Legends
Importance of Portfolio Management
Profiting from Stock Ideas is different from identifying the Ideas. Even with good Ideas, its only a
solid capital allocation framework that will help you to grow your wealth.
So, while our Multibagger service will help you to identify good businesses- you need to learn to build
a good Portfolio to really profit from the Multibagger ideas.
Lets learn to avoid some common capital allocation mistakes and build a better Portfolio :-
Small Cap and Mid Cap investing involves a fair bit of failures considering the unknowns present while investing
in a stock. Hence, once your understanding of the Idea becomes better overtime and your conviction levels
increase, Investors should have courage to average up on the stock overcoming their fixation on their old price.
While the average investor would like to Book Profits and not willing to book losses, the correct way to manage
your money is to book losses in the stocks where your initial Investment rationale has gone wrong (Dont rationalize
your mistakes) and to invest in stocks which continues to surprise you positively with their quality.
Riding your winning horse is very important and in Small Cap ideas where you have identified a great business
very early, its extremely important to be patient to hold onto the stock through the entire lifecycle of wealth
creation. Winning Big in the stocks where you are right is important for any small cap focused Investor.
Profiting from Stock Ideas is different from identifying the Ideas. Even with good Ideas, its only a
solid capital allocation framework that will help you to grow your wealth.
So, while our Multibagger service will help you to identify good businesses- you need to learn to build
a good Portfolio to really profit from the Multibagger ideas.
Lets learn to avoid some common capital allocation mistakes and build a better Portfolio :-
Small Cap and Mid Cap investing involves a fair bit of failures considering the unknowns present while investing
in a stock. Hence, once your understanding of the Idea becomes better overtime and your conviction levels
increase, Investors should have courage to average up on the stock overcoming their fixation on their old price.
While the average investor would like to Book Profits and not willing to book losses, the correct way to manage
your money is to book losses in the stocks where your initial Investment rationale has gone wrong (Dont rationalize
your mistakes) and to invest in stocks which continues to surprise you positively with their quality.
Riding your winning horse is very important and in Small Cap ideas where you have identified a great business
very early, its extremely important to be patient to hold onto the stock through the entire lifecycle of wealth
creation. Winning Big in the stocks where you are right is important for any small cap focused Investor.
Importance of Portfolio Management
:-
Need not invest in every Multibagger Idea from our stable
Investors need not invest in every Month's Multibagger stock. You must pick and chose the Ideas which
suit you. Investing in every Idea will get your Portfolio clustered with too many Ideas. Get in touch with our
associates or upgrade to our Model portfolio service to help you with proper capital allocation framework.
For retail investors - having more than 20 stocks in their Portfolios is not desirable
Any Portfolio with more than 20 stocks would lack focus and it would be difficult for retail investors to
keep track on all their stocks. Wealth creation cant be done with too much diversification.
A balanced Portfolio and concentrated Portfolio are not mutually exclusive
Even with a less than 20 stock Portfolio, you can have a proper balanced portfolio with careful selection
of stocks across sectors. Risk cant be reduced by just increasing the number of stocks, proper stock picking
combined with a rational capital allocation framework will help in build a good Portfolio with low risks.
Overcoming Greed and Fear is important to allocate capital well
Markets oscillate between bad and good news which brings tremendous volatility to Small and Mid cap
stocks. Capitalizing on this volatility by having entry points will help Investors earn good returns.
Art of averaging down in your high Conviction bets
Markets will tend to make a cheap stocks even more cheaper. Hence, if there is enough conviction on an
Idea you must be ready to average down on good stocks where you believe market is making a mistake.
:-
:-
:-
Long Term Core Portfolio Stocks
Stock Industry
Biocon/ Poly Medicure Pharma
HSIL/ Cera Building Products
SCUF/ M&M Finance Financials
Dhanuka/ Treehouse Small Cap Niche
PVR/ Kewal Kiran Entertainment/Consumption
Greaves Cotton Capital Goods Greaves Cotton Capital Goods
Persistent Systems/
EClerx
Technology (IT)
Bajaj Electricals Consumer Durable
Ashiana Housing/ Godrej
Properties
Real Estate
VA Tech Wabag/ Sanghvi
Movers
Infrastructure
Atul Auto/ Balkrishna Auto & Ancillaries
CARE/ Astral Poly Others
Best Portfolio Stocks
for
Long term Wealth
From the Desk of our
Research Team
Dear Members of Multibagger Service,
The last Quarter has been exceptionally good for Indian markets with Stocks gaining significantly
across the board. Quality Mid-Caps and Small-Caps that we track are up by 50%-100% over the last
quarter. The saying that Equity Returns are Non-Linear and lumpy has been proved yet again. As we
have been writing regularly, its near impossible to predict the exact timing of such Lumpy returns and
hence the best way to gain is to BUY during attractive prices and stay Invested.
On the results of the last Quarter, almost all our stocks have performed well and there have
been only a few disappointments. Most of our core Portfolio stocks are on track to deliver many more
years of strong growth in their evolution to become much larger companies. Thus an uptick in prices
should not be used as an opportunity to BOOK Profits. We have continued to evaluate all our Ideas in
this Flashback report and have put spotlight on the Core Portfolio stocks. We hope our subscribers will
have a proper capital allocation framework to profit handsomely from these Investment ideas.
Before we get into details of the individual performance of our stocks over the last quarter, we
would like to evaluate the performance of our Multibagger service over the years and what you can
expect going forward through your association with Multibagger package,
Over the last 3 years, we have had a satisfactory record of identifying good quality businesses
when they were available cheap. We have had some tremendous successes in identifying Multibagger
ideas very early in their growth cycle such as Cera, Astral Poly, Persistent, Poly Medicure, Mayur
Uniquoters, Biocon etc. There have also been some failures such as Honda Siel power, IL&FS
Investment Managers etc. But overall, we believe our results have been satisfactory with good returns
despite a very tough environment for small and mid cap stocks.
We have had significant learning's from our failure picks, but our overall cost of learning has
been small and it has been worth the returns we have been able to generate from our winning picks.
We have strongly strengthened our networks to source better Ideas and validate our primary
information. We have also improved our proprietary Investment checklists and Research framework
to avoid bad businesses. Our watch list of stocks of good quality businesses has been expanded and
we are ready to identify Multibagger ideas much ahead of the curve.
With a strong focus on Small and Mid-cap stocks, we have internalized several processes to
evaluate and filter ideas better from a vast pool of stocks. Durability of our returns have also been
good as they have come from quality businesses. Our current strike is satisfactory but there is enough
room for improving it even further and with our strengthened framework, we are confident of
delivering much better returns over the next 3 years.
Our deep understanding of Indian Small cap and mid cap businesses makes us well positioned to
pick the right stocks. If we were able to go through an extremely tough phase for Indian Mid-Caps and
Small-Caps and still generate good absolute returns, we believe that our returns will only grow better
in a favorable macro environment (relatively) which we expect over the next 3 years.
In this Flashback report, we have also added a special mention about the contrarian bets in
Metals and Mining sector. The 3 Special stocks that have been recommended are commodity
businesses with above average fundamentals available at attractive prices near the bottom of a super
cycle. As you could see in the Business Rating and Valuation Rating, these stocks are purely valuation
plays and hence these bets are more tactical in nature and not the Multi-year investing that we do.
In our Model Portfolio and Funds that we manage, allocation to our CORE Portfolio Ideas still
stays the same. Since we already had a high Equity exposure of around 95% over the last 18 months,
the current rally has delivered strong absolute returns. We are currently neither BUYING nor
SELLING any of our shares. We believe that this rally has still a long way to go and our Portfolio is well
positioned to take advantage of the future environments. We believe that earnings growth in our
stocks would positively surprise investors and further re-rating is on the cards. We would continue to
maintain our high Equity exposure in our Portfolios and would exit from any stock only in case
of Irrational valuations (or) swap for better opportunities.
Investors with Cash & Cash Equivalents of > 25% can deploy incremental capital into our Core
Multibagger Ideas. Investors need to develop the courage to Average up on these quality stocks
despite the steep rally over the last few months. These stocks still have a strong potential to deliver
superior risk adjusted returns over a 5 year period. Just because there are stocks that havent gone
up over the last few months, dont invest in them. Long Term investments always needs to be done in
quality businesses even if the price is not cheap. The easy pickings in the markets are now behind us
after the recent rally. We need to dig deeper to find stocks with asymmetric returns. Our contrarian
approach to investing would help us to continue generating top decile returns. While our focus would
continue to be in Small & Mid cap stocks, we are ready to look at other sources as well going forward.
We continue to be Multi-Dimensional investors and invest in good ideas ranging across Debt
capacity bargains, Moat based businesses, Cash bargains, Float based businesses, Quality at cost etc.
We also continue to be dynamic in evaluating our old picks and companies which are not performing
will be eliminated from our recommendation lists periodically. We will definitely overcome our biases
in removing bad stocks and adding onto good stocks.
We advice our customers to focus their capital on the core long term portfolio picks which we
have highlighted in this report and also follow the explained discipline of capital allocation. We would
also continue to have a Rating on all our stocks through the Flashback report which can be used for
regular evaluation of the Ideas in which you have invested your capital. Looking forward to many more
Profitable years going forward !!
Regards,
[ Gokul Raj . P, Head Investment Research ]
Ratings Standards
Scale (Best to Last in
descending Order)
More detailed explanation of these
Ratings
Great Stocks + Great Prices + Strong Potential
Good Stocks + Good Prices + Healthy Potential
Ratings will help in taking better Decisions
Good Stocks + Good Prices + Healthy Potential
Good/ Great Stocks but can wait for Correction,
considering the Sharp Run-Up since our Recommendation
Stocks which are of slightly lower Quality, but not to be
exited at current Lower Valuations.
They can be both Profit booked (or) Loss booked. Stock
with exit needs to be sold - sometimes because of Higher
Valuation or sometime Bad Performance.
Top 5 Disappointing Quarterly Results
Company Name
Karur Vysya Bank
Mahindra & Mahindra Financial
Sanghvi Movers Sanghvi Movers
Coromandel International
Honda Siel Power
Top 10 Great Quarterly Results
Company Name
Bajaj Electricals
Mayur Uniquoters
Astral Poly
VA Tech Wabag
PVR PVR
Persistent Systems
Kewal Kiran
EClerx
CARE Ratings
Atul Auto
Stock Recommendations Snapshot
Rec. Date Stock Pick CMP HBJ Rating
Jan11 Cera Sanitary ware
834.45
BUY
Apr11 Astral Poly
500.05
Accumulate on Decline
Note :- The monthly recommendations in which we have already booked profits (or)
losses are not present in our Flashback report.
New Clients can view all the OLD Multibagger reports in their LOGIN page.
Apr11 Astral Poly
500.05
June11 Camlin Fine
46.40
BOOK Profits
August11 Mayur Uniquoters
297.90
Sept11 Dewan Housing Finance
227.70
BUY
Oct11 HSIL
136.00
BUY
Dec11 Repro India
158.95
BOOK Profits
Dec11 Coromandel International
221.00
HOLD
Rec. Date Scrip CMP HBJ - Rating
Jan12 Biocon 424.70 BUY
Feb12 Mahindra & Mahindra Financials 244.90 BUY
Mar12 Sanghvi Movers 70.00 BUY
Apr12 Transport Corporation of India
Ltd (TCI)
112.00 HOLD
Apr12 Karur Vysya Bank 371.00 HOLD
May12 PVR Ltd 535.95 Accumulate on Declines
May12 Persistent Systems 1,090.00 Accumulate on Declines
June12 Greaves Cotton 79.65 Strong BUY
July12 Kewal Kiran Clothing Ltd. 1,200.00 Strong BUY
Aug12 Ashiana Housing Ltd 101.25 Accumulate on Decline
Sep 12 Bajaj Electricals Ltd
275.55
Strong BUY
Oct12 IL&FS Investment Managers Ltd
13.80
HOLD
Nov12 Honda Siel Power
629.65
EXIT
Dec12 Redington India
84.00
HOLD Dec12 Redington India
84.00
HOLD
Jan13 Eclerx Ltd
1,219.95
Strong BUY
Feb13 NMDC
146.60
BUY
Mar13 CARE
790.00
Strong BUY
Apr13 Mahindra Holidays
245.90
HOLD
May13 Bajaj Finserv
783.75
BUY
June 13 Atul Auto
351.00
BUY
July13 VA Tech Wabag
773.00
Strong BUY
August13 Indiabulls Housing Finance
247.00
Strong BUY
Sept13 Balkrishna Industries
493.00
Accumulate on Declines Sept13 Balkrishna Industries
493.00
Accumulate on Declines
Oct13 Dhanuka Agritech
251.50
Accumulate on Declines
Nov13 NBCC
185.65
BUY
Dec13 Godrej Properties
228.50
BUY
Jan14 Hindustan Media Ventrues
135.00
HOLD
Medium Term Investment Opportunities
Best Investment Package for the current Market Conditions
Special Focus on Metals & Mining Sector
While we continue to believe in the huge potential of the Infra sector, we dont want to
buy stocks with bad balance sheets or business models. Hence, we would like to invest
through proxies such as Steel, Cement etc. While their prices are determined by the
global commodity cycle, their volumes are still heavily dependent on local economic
conditions. The 3- Stocks that we have selected have good Managements, strong Moats,
healthy Balance sheets and attractive valuations. While, we dont own these stocks - they
are in our close watch list.
Strong Scope for Infrastructure Growth
Rapid growth in the economy has placed
increasing stress on physical infrastructure i.e
Electricity ,Railways ,Ports, Irrigation, Water
supply and sanitation, all of which suffer from
deficiencies in terms of capacities.
To achieve a 9% GDP growth perceived by the
planning commission under the Twelth five year
plan(2012-17) the spending in Infrastructure has
to be increased to overcome the deficiencies in
the sector.
Planning commission estimates that 10% of the
GDP has to be spent on Infrastructure in the
twelth plan which translates into an investment
of about Rs.65 Lakh crore in current prices.
The sectoral allocation of infrastructure
investment as a percentage of GDP stands
highest at 2.9% for energy sector comprising
electricity, renewable energy and oil & gas
followed by transport which includes railways,
MRTS ,Ports, airports, bridges, roads and storage
which account for about 2.8% of GDP.
Rapid growth in the economy has placed
increasing stress on physical infrastructure i.e
Electricity ,Railways ,Ports, Irrigation, Water
supply and sanitation, all of which suffer from
deficiencies in terms of capacities.
To achieve a 9% GDP growth perceived by the
planning commission under the Twelth five year
plan(2012-17) the spending in Infrastructure has
to be increased to overcome the deficiencies in
the sector.
Planning commission estimates that 10% of the
GDP has to be spent on Infrastructure in the
twelth plan which translates into an investment
of about Rs.65 Lakh crore in current prices.
The sectoral allocation of infrastructure
investment as a percentage of GDP stands
highest at 2.9% for energy sector comprising
electricity, renewable energy and oil & gas
followed by transport which includes railways,
MRTS ,Ports, airports, bridges, roads and storage
which account for about 2.8% of GDP.
High potential Mining sector
The potential of the mining sector can be assessed by its domestic growth potential. A glance into the
future growth potential of its key consumer industries, for example, steel, cement, etc gives an insight into
the mining sector potential as these industries are the end user industries.
The recovery in the economy will see a huge spurt in sectors like construction and power which in turn
would lead to substantial capacity addition in the steel, cement and thermal power sectors which will trickle
down to growth of the mining sector.
The potential of the mining sector can be assessed by its domestic growth potential. A glance into the
future growth potential of its key consumer industries, for example, steel, cement, etc gives an insight into
the mining sector potential as these industries are the end user industries.
The recovery in the economy will see a huge spurt in sectors like construction and power which in turn
would lead to substantial capacity addition in the steel, cement and thermal power sectors which will trickle
down to growth of the mining sector.
Steel Industry Outlook
The Indian steel Industrys crude steel production has been growing at a CAGR of about 7.7% during 2007-
11 while the capacity utilization was about 89%, leaving scope for further CAPEX.
During the twelfth five year plan steel production is estimated to grow at a CAGR of 11.3% due to large
scale capacity additions plans during this period. The steel production capacity in India is expected to grow
from about 73.7 MT in 2012 to about 139.9 MT by 2017.
3 Good Stock Picks in the Sector
NMDC Business Rating 4/5 Valuation Rating 3/5
Investment Arguments:-
NMDC is Indias largest Iron ore producer with capacity of 32MTPA. NMDC has a robust list of clientele who are
expanding capacities consistently thereby fuelling demand for Iron ore from NMDC.
NMDC caters to about 40% of Indias Iron ore production and has Iron Ore with superior FE content than its
competitors leading to a competitive advantage.
Iron Ore Realizations of NMDC have grown from about Rs.2024 per MT in FY08 to about Rs.4100 per MT
registering a growth of about 102%in the past 5 years.
NMDCs realizations have historically been lower than international prices there by reducing the possibility of any
steep correction in its iron ore prices due to weak global prices.
NMDC has a been maintaining a robust operating margins of 75%+ during the past 5 years due to lower cost
structure and management efficiency.
NMDC is Indias largest Iron ore producer with capacity of 32MTPA. NMDC has a robust list of clientele who are
expanding capacities consistently thereby fuelling demand for Iron ore from NMDC.
NMDC caters to about 40% of Indias Iron ore production and has Iron Ore with superior FE content than its
competitors leading to a competitive advantage.
Iron Ore Realizations of NMDC have grown from about Rs.2024 per MT in FY08 to about Rs.4100 per MT
registering a growth of about 102%in the past 5 years.
NMDCs realizations have historically been lower than international prices there by reducing the possibility of any
steep correction in its iron ore prices due to weak global prices.
NMDC has a been maintaining a robust operating margins of 75%+ during the past 5 years due to lower cost
structure and management efficiency.
Valuation & Recommendation:
We estimate NMDC to report EPS of Rs.17.57 in FY15.
Largest Iron Ore producer, Superior Iron Ore content,
Strong operating margins when compared to global
peers, Consistent profit making track record, rising
dividend yield, are the strengths of the company. The
stock at the CMP of Rs.150 trades at 8.54X of its FY15E
EPS respectively. We recommend a BUY on the stock
with a medium to long term perspective.
Year Net Sales EBITDA PAT EPS P/E
2012 11,263 8,904 4,156 18.33 8.18
2013 10,699 8,796 6,342 16.00 9.37
2014E 10,713 7,375 6,342 14.83 10.11
2015E 11,564 10,677 6,965 17.57 8.54
NMDC- Key highlights
1) Realizations stable and is likely to grow :
NMDCs realizations have historically been lower than international prices there by reducing the
possibility of any steep correction in iron ore prices. NMDC s realizations have grown over the
years as compared to their global counter parts due to strong domestic demand for Iron ore. We
expect the realizations to remain stable but volumes to grow.
2) Improvement in Steel sector to drive growth :
The Iron ore consumption is dependent on the demand for end user industry i.e steel which
consumes about 98% of Iron ore. The global slow down has resulted in lower steel off-take thus
affecting demand for Iron ore. However, the demand for steel in India is rising continuously due to
higher GDP growth of the country. The growing economy results in demand for steel from housing
and other industrial sectors which results in increased demand for the Iron ore industry in India
thus insulating a slowdown in the global economy
3) Cheapest Producer globally :
NMDCs cost of production is far lower than any of its domestic or global peers and is the cheapest
producer of Iron ore globally. NMDCs cost of production has been its greatest strength as the
company owns the best assets backed by efficient cost structure which will insulate it from any
sharp reduction in global ore prices.
1) Realizations stable and is likely to grow :
NMDCs realizations have historically been lower than international prices there by reducing the
possibility of any steep correction in iron ore prices. NMDC s realizations have grown over the
years as compared to their global counter parts due to strong domestic demand for Iron ore. We
expect the realizations to remain stable but volumes to grow.
2) Improvement in Steel sector to drive growth :
The Iron ore consumption is dependent on the demand for end user industry i.e steel which
consumes about 98% of Iron ore. The global slow down has resulted in lower steel off-take thus
affecting demand for Iron ore. However, the demand for steel in India is rising continuously due to
higher GDP growth of the country. The growing economy results in demand for steel from housing
and other industrial sectors which results in increased demand for the Iron ore industry in India
thus insulating a slowdown in the global economy
3) Cheapest Producer globally :
NMDCs cost of production is far lower than any of its domestic or global peers and is the cheapest
producer of Iron ore globally. NMDCs cost of production has been its greatest strength as the
company owns the best assets backed by efficient cost structure which will insulate it from any
sharp reduction in global ore prices.
MOIL is the largest producer of manganese ore in India and it enjoys a 50% share of the domestic market.
The company has an edge over competition as its mines are located in close proximity to its customers, thereby
resulting in lower transit cost and quicker time of delivery.
The rising requirement of ferrous alloy products for the steel and other metal producing industries are likely to
drive the domestic demand for manganese ore going forward.
MOIL is a zero debt company having a strong balance sheet. It generates a robust cash flow which should help
the company to fund its capex plans.
MOILs mines have in them approximately 22 million tonnes of proved and probable reserves and 37.2 million
tonnes of measured mineral resources of manganese ore..
MOIL is the largest producer of manganese ore in India which has enabled the company to achieve significant
economies of scale in its operations and is a extremely low cost producer, leading to better margins.
MOIL Business Rating 4.5/5 Valuation Rating 4/5
MOIL is the largest producer of manganese ore in India and it enjoys a 50% share of the domestic market.
The company has an edge over competition as its mines are located in close proximity to its customers, thereby
resulting in lower transit cost and quicker time of delivery.
The rising requirement of ferrous alloy products for the steel and other metal producing industries are likely to
drive the domestic demand for manganese ore going forward.
MOIL is a zero debt company having a strong balance sheet. It generates a robust cash flow which should help
the company to fund its capex plans.
MOILs mines have in them approximately 22 million tonnes of proved and probable reserves and 37.2 million
tonnes of measured mineral resources of manganese ore..
MOIL is the largest producer of manganese ore in India which has enabled the company to achieve significant
economies of scale in its operations and is a extremely low cost producer, leading to better margins.
We estimate MOIL to report EPS of Rs.28.51 in FY15.
High quality ore ,value added products, Strong operating
margins when compared to global peers, Consistent
profit making track record, rising and a strong balance
sheet are the strengths of the company. The stock at the
CMP of Rs.252 trades at 8.84X of its FY15E EPS . We
recommend a BUY on the stock with a medium to long
term perspective.
2012 905 434 411 24.45 10.31
2013 967 435 432 25.70 9.80
2014E 1,036 476 456 27.14 9.28
2015E 1,064 490 479 28.51 8.84
MOIL- Key Highlights
1) High Quality Reserves :
MOIL is the 5th largest producer of manganese ore and the largest player in manganese industry in
India. It has 10 mines, of which 6 mines are located in Nagpur and Bhandara districts of
Maharashtra and 4 are located in the Balaghat district of Madhya Pradesh. The company has
73.5MT of reserves and 22.05MT of proven and probable reserves.
2) Realizations to drive growth :
MOIL realizations has been flat on account of weak global economy which has resulted in weak
demand for manganese ore. We expect realization to improve further given the 3% price hike in
ferro grade ore and 7-8% increase for Silico grade and fines in March 2014.
3) Value added Products :
Currently, MOIL has beneficiation plants of 0.4MT at Dongri Buzurg mine and of 0.5MT at Balaghat
mine to upgrade the quality of ore produced. MOIL intends to expand its valueadded capacity and,
thus, has entered into JVs with SAIL and Rashtriya Ispat Nigam Ltd (RINL) to set up two ferro alloy
plants in Chhattisgarh and Andhra Pradesh. The proposed installed capacity in case of the JV with
SAIL is 1,06,000 tonne and that in case of RINL is 57,500 tonne which will aid its growth in
profitability going forward.
1) High Quality Reserves :
MOIL is the 5th largest producer of manganese ore and the largest player in manganese industry in
India. It has 10 mines, of which 6 mines are located in Nagpur and Bhandara districts of
Maharashtra and 4 are located in the Balaghat district of Madhya Pradesh. The company has
73.5MT of reserves and 22.05MT of proven and probable reserves.
2) Realizations to drive growth :
MOIL realizations has been flat on account of weak global economy which has resulted in weak
demand for manganese ore. We expect realization to improve further given the 3% price hike in
ferro grade ore and 7-8% increase for Silico grade and fines in March 2014.
3) Value added Products :
Currently, MOIL has beneficiation plants of 0.4MT at Dongri Buzurg mine and of 0.5MT at Balaghat
mine to upgrade the quality of ore produced. MOIL intends to expand its valueadded capacity and,
thus, has entered into JVs with SAIL and Rashtriya Ispat Nigam Ltd (RINL) to set up two ferro alloy
plants in Chhattisgarh and Andhra Pradesh. The proposed installed capacity in case of the JV with
SAIL is 1,06,000 tonne and that in case of RINL is 57,500 tonne which will aid its growth in
profitability going forward.
Hindustan Zinc Ltd is the one of the largest integrated producers of zinc-lead with a capacity of 1.0 million MT
per annum and a leading producer of silver.
Hindustan Zinc has a world-class resource base with total reserves & resources of 348.3 million MT and average
zinc-lead reserve grade of 12.0%.
The Company is self-sufficient in power with an installed base of 474 MW coal-based captive power plants apart
from 274MW of wind power and 35MW of waste heat recovery.
Hindustan Zinc has the advantage of low cost of operations which are about ~40-50% lower than the global
marginal average cost of production making it one of the most cost competitive zinc players globally.
Hindustan Zinc has a cash of about Rs.227 Bn which is almost 50% of its market capitalization which highlights
its strong balance sheet. of mine operations
Hindustan Zinc Business Rating 4.5/5 Valuation Rating 4.5/5
Hindustan Zinc Ltd is the one of the largest integrated producers of zinc-lead with a capacity of 1.0 million MT
per annum and a leading producer of silver.
Hindustan Zinc has a world-class resource base with total reserves & resources of 348.3 million MT and average
zinc-lead reserve grade of 12.0%.
The Company is self-sufficient in power with an installed base of 474 MW coal-based captive power plants apart
from 274MW of wind power and 35MW of waste heat recovery.
Hindustan Zinc has the advantage of low cost of operations which are about ~40-50% lower than the global
marginal average cost of production making it one of the most cost competitive zinc players globally.
Hindustan Zinc has a cash of about Rs.227 Bn which is almost 50% of its market capitalization which highlights
its strong balance sheet. of mine operations
We estimate Hindustan Zinc to report EPS of Rs.17.57
in FY14 in FY15. Largest Zinc producer, world class
resource, Captive power plant, Strong operating margins
when compared to global peers, Consistent profit
making track record, high cash levels, are the strengths
of the company. The stock at the CMP of Rs.132 trades
at 7.60X of its FY15E EPS respectively. We recommend
a BUY on the stock with a medium to long term
perspective.
2012 12,061 6,069 5,526 13.08 10.09
2013 13,658 6,482 6,899 16.33 8.08
2014E 13,974 7,190 6,958 16.47 8.01
2015E 14,684 7,455 7,336 17.36 7.60
Hindustan Zinc Key Highlights
1) Play on Integrated Business model & Future exploration :
The success story behind Hindustan Zincs business model lies in its integration and successful
exploration. If integration has led to low costs of operations, exploration has led to higher and
sustainable visibility. Hindustan Zinc is vertically integrated from mining zinc-lead ore to smelting
with its captive power plants. The visibility of a mining company lies in addition of Reserves and
Resources (R&R). Total Reserves & Resources, over the past decade has nearly doubled to 348mn
tonnes showing the companys capability.
2) Captive power reduces cost :
Smelting activity consumes ~4000 units of power and therefore in aggregate it has set up 474MW
of captive power plants (coal based). With this captive power capacity, in FY13 ~96% of its power
requirements are met internally. The coal required to run its power plants is largely bought from the
open market at market rates and at linkage price from Coal India. This captive power has helped
the company to rationalize cost
3) Strong cash in balance sheet :
Hindustan zinc has a cash of Rs.227 Bn which is almost half of its market capitalization. This
provides huge opportunity in the stock. Any turnaround in global economy will increase realizations
and profitability and buying this quality business at current values offers enormous upside potential
as the cash per share is about Rs.57 as compared to the stock price of Rs.132
1) Play on Integrated Business model & Future exploration :
The success story behind Hindustan Zincs business model lies in its integration and successful
exploration. If integration has led to low costs of operations, exploration has led to higher and
sustainable visibility. Hindustan Zinc is vertically integrated from mining zinc-lead ore to smelting
with its captive power plants. The visibility of a mining company lies in addition of Reserves and
Resources (R&R). Total Reserves & Resources, over the past decade has nearly doubled to 348mn
tonnes showing the companys capability.
2) Captive power reduces cost :
Smelting activity consumes ~4000 units of power and therefore in aggregate it has set up 474MW
of captive power plants (coal based). With this captive power capacity, in FY13 ~96% of its power
requirements are met internally. The coal required to run its power plants is largely bought from the
open market at market rates and at linkage price from Coal India. This captive power has helped
the company to rationalize cost
3) Strong cash in balance sheet :
Hindustan zinc has a cash of Rs.227 Bn which is almost half of its market capitalization. This
provides huge opportunity in the stock. Any turnaround in global economy will increase realizations
and profitability and buying this quality business at current values offers enormous upside potential
as the cash per share is about Rs.57 as compared to the stock price of Rs.132
Quarterly Result & News Analysis of
Multibagger Recommendations
Quarterly Result & News Analysis of
Multibagger Recommendations
Cera Sanitary ware
Quarterly Results
Analysis
Revenues during Q3FY14 stood at Rs.160.15Cr as against Rs.128.02 Cr registering
an increase of 25.1% YOY. Revenues were higher on account of volume growth in
Sanitary ware and Faucet businesses.
The companys PAT in Q3FY14 was at Rs.10.76 Cr as against Rs.12 Cr in Dec-12 a
decrease of 11.5% YoY.
Operating profit for the quarter ended Q3FY14 was at Rs.17.15 Cr as against
Rs.17.97 Cr in Dec-12 registering YoY decrease of 4.78%. However, Operating profit
QoQ dipped by 3.3% due to rupee depreciation which the company was not able to
fully pass on during the quarter.
Ceras strong growth is also emerging from its recent Capacity expansion in its
Faucet division. Company is likely to benefit from expansion to its product portfolio.
News Update and
Analysis
HBJ - View
Revenues during Q3FY14 stood at Rs.160.15Cr as against Rs.128.02 Cr registering
an increase of 25.1% YOY. Revenues were higher on account of volume growth in
Sanitary ware and Faucet businesses.
The companys PAT in Q3FY14 was at Rs.10.76 Cr as against Rs.12 Cr in Dec-12 a
decrease of 11.5% YoY.
Operating profit for the quarter ended Q3FY14 was at Rs.17.15 Cr as against
Rs.17.97 Cr in Dec-12 registering YoY decrease of 4.78%. However, Operating profit
QoQ dipped by 3.3% due to rupee depreciation which the company was not able to
fully pass on during the quarter.
Ceras strong growth is also emerging from its recent Capacity expansion in its
Faucet division. Company is likely to benefit from expansion to its product portfolio.
CERA Sanitary ware quarterly results were impacted by weak rupee which has
started to stabilize which will lower input cost going forward.
http://www.moneycon
Cera continues to be one of our High Conviction bets. Despite, the stocks steep
rise of 600% since our initial recommendation we continue to HOLD on to the
stock in our portfolios. Investors with minimal exposure to CERA can BUY Cera
at current levels with a time frame of 3-5 years.
Astral Polytechnik
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 28.3 %(YoY) to Rs.264.96 Cr as
compared to Rs.206.43Cr in same quarter of previous fiscal.
Operating Profit in Q3FY14 was up by about 56.8% at Rs.31.73 Cr as against
Rs.20.23 Cr in the same quarter of previous fiscal.
Net Profit increased 100 per cent (YoY) to Rs.21.32 Cr in Q3FY14 as
compared to Rs. 10.61 Cr in Q3FY13.
BIS grants licence to Astral Poly Technik
http://www.moneycontrol.com/news/announcements/bis-grants-licence-to-astral-poly-
technik_1056676.html?utm_source=ref_article
Astral Poly Technik starts commercial production at Hosur, Tamilnadu
News Update and
Analysis
HBJ - View
BIS grants licence to Astral Poly Technik
http://www.moneycontrol.com/news/announcements/bis-grants-licence-to-astral-poly-
technik_1056676.html?utm_source=ref_article
Astral Poly Technik starts commercial production at Hosur, Tamilnadu
Astral Poly continues to surprise us positively with strong operating results quarter
on quarter. Markets have taken a note of this amazing performance and has given its
due reward to the stock.
We continue to like the quality of Astrals business and also its growth potential.
We believe that the stock continues to be a Add on Decline stock where we would
like to increase our exposure strongly in the case of Markets providing us a better
entry point into the stock again.
Camlin Fine Sciences
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 13.60 per cent to Rs.91.23 Cr as
compared to Rs.76.87Cr during same quarter of previous fiscal.
Operating Profit in Q3FY14 was at Rs.16.77 Cr as against Rs.9.39Cr in Q3FY13
registering a YoY increase of 78.6%.
Net Profit increased by 122% to Rs. 4.80 Cr in Q3FY14 as compared to Rs.
2.16 Cr in Q3FY13.
News Update and
Analysis
HBJ - View
Camlin Fine Sciences Ltd has informed BSE that the Company is setting up a wholly owned
subsidiary Company in Canada for undertaking trading and distribution of antioxidants,
food ingredients, blends, formulations etc in US and Canadian markets.
Companys performance has been decent with nothing great to write about. The
Stock has moved up sharply over the last few weeks. Hence, we are using this rally
to Book profits and exit out of the stock.
Mayur Uniquoters
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 30.13% YoY to Rs.122.11Cr as compared
to Rs.93.83 Cr in same quarter of previous fiscal. The company has been consistently
increasing its capacity which has enabled the company to grow its top line.
Operating Profit in Q3FY14 was at Rs.23.01Cr as against Rs.16.92Cr in Q3FY13
registering an increase of 34%.The company is able to improve its margins post knitting
fabrics plant as it reduces rejection rate and support high quality fabric production for
exports.
Net Profit increased 38.6% (YoY) to Rs. 14.22 Cr in Q3FY14 as compared to Rs.
10.26 Cr in Q3FY13.
Mayur Uniquoters has approved the increase in authorised share capital and reclassification
of authorised share capital and consequent amendments to memorandum of association and
Article of Association of the Company.
Mayur Uniquoter - Fixes Record Date for Bonus Issue
News Update and
Analysis
HBJ - View
Mayur Uniquoters has approved the increase in authorised share capital and reclassification
of authorised share capital and consequent amendments to memorandum of association and
Article of Association of the Company.
Mayur Uniquoter - Fixes Record Date for Bonus Issue
With the entry of established investors such as Westbridge Capital, the stock still has
a lot of steam left. We continue to like the business and the companys management.
Hence we would like Investors to BUY the stock on every dips. While the BULK of rally is
behind us, there is still decent returns left for a 5 year investor.
Dewan Housing
Quarterly Results
Analysis
Dewan Housing recorded revenues of Rs.1301 Cr in Q3FY14 as against Rs.840.18 Cr
in Q3FY13 registering a YoY growth of 55%.Revenues were higher on account of
higher disbursements.
NII in Q3FY14 was at Rs.7135 Cr as against Rs.6002 Cr in Q3FY13 registering a
growth of 18.8%.
PAT in Q3FY14 was at Rs.138.39 Cr as against Rs.91.24 Cr in Q3FY13 registering a
growth of 51.7%. The company has been able to achieve this growth on account of
focus on affordable housing segment in the Tier-II and Tier-III markets across India.
News Update and
Analysis
HBJ - View
Dewan Housing has an expertise in lending to low and middle income clients where
other financial institutions are least interested thereby catering to a large market.
DHFL announced an exciting offer for women customers in the last quarter.
The stock despite the run-up is still available at decent valuations. The stock
generally performs well during an up cycle. There is room for both Earnings
expansion and Valuation re-rating. With the entry of prominent investors such as
Rakesh Jhunjhunwala, the potential returns are definitely higher.
HSIL
Quarterly Results
Analysis
The Revenue for the quarter ended Dec 2013 was Rs. 366.55 Cr as against
Rs.394.41 Cr in Dec 2012 registering a YoY decrease of 7.6% and grew by 3.63%for 9
months ended 31.12.2013. Building Products Division Revenue witnessed significant
growth of 15.90% from INR 526.19 cr to INR 609.85 cr whereas Container Glass
Division Revenue decreased by 6.28% fromINR 540.09 cr to INR 506.17 cr.
Profit after Tax for the quarter ended Dec 2013 saw a decline of 4% fromRs. 11.79
Cr to Rs.12.26 Cr in Dec2012.
The Operating Profit of the company in Dec2013 was at Rs.61.37 Cr as against
Rs.57.74 Cr, a YoY increase of 6.2%.
News Update and
Analysis
HBJ - View
The Revenue for the quarter ended Dec 2013 was Rs. 366.55 Cr as against
Rs.394.41 Cr in Dec 2012 registering a YoY decrease of 7.6% and grew by 3.63%for 9
months ended 31.12.2013. Building Products Division Revenue witnessed significant
growth of 15.90% from INR 526.19 cr to INR 609.85 cr whereas Container Glass
Division Revenue decreased by 6.28% fromINR 540.09 cr to INR 506.17 cr.
Profit after Tax for the quarter ended Dec 2013 saw a decline of 4% fromRs. 11.79
Cr to Rs.12.26 Cr in Dec2012.
The Operating Profit of the company in Dec2013 was at Rs.61.37 Cr as against
Rs.57.74 Cr, a YoY increase of 6.2%.
The civil work on the greenfield faucet plant in Kaharani, Distt. Bhiwadi, Rajasthan is in
progress & the plant is expected to be commissioned soon, which will be an added boost
for the overall growth of the company
Companys sanitary ware division continues to perform strongly and is by far the
Market leader in the segment. The companys premium products allows it to earn
significantly higher margins than its peers. The Companys glass division also has
been showing some signs of turnaround. With the managements guidance on the
de-merger of the two divisions over the next 3 years, there is a strong trigger for a
healthy value creation.
Repro India
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 18.4 per cent to Rs.114.53 Cr as
compared to Rs.96.71 Cr in same quarter of previous fiscal.
Operating Profit in Q3FY14 declined at 4.3% YoY at Rs.17.89Cr as against
Rs.18.66Cr in Q3FY13.
Net Profit in Q3FY14 increased by 5.29 per cent (YoY) to Rs. 6.45 Cr in as
compared to Rs.11.02 Cr in Q3FY13.
News Update and
Analysis
HBJ - View
The companys performance has not been great over the last 3 quarters.
Lack of structural growth opportunities for the business would ensure that
the valuations continue to be subdued. We cant identify any trigger that
can re-rate the stock and hence we are advising clients to EXIT.
Coromandel International
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 13.7 per cent YoY to Rs.2756.18 Cr as
compared to Rs.2424.47 Cr in same quarter of previous fiscal. Good monsoons coupled
with a stable exchange rate contributed to improved performance of businesses.
registering a increase of 62.6%.
Net Profit increased 37.75per cent (YoY) to Rs.94.21 Cr in Q3FY14 as compared to Rs.
68.39 Cr in Q3FY13.
News Update and
Analysis
HBJ - View
Coromandel is one of those well run companies which is going through a
temporary bad phase. We believe that the companys management, its business
model, low cost operations and sector growth is attractive enough to HOLD onto the
stock even during the bad phase.
Biocon
Quarterly Results
Analysis
Biocon Q2FY14 revenues were at Rs.707.28 Cr as against Rs.642.91 Cr an increase
of 10% YoY. Revenues during the quarter were higher on account of improving
product mix and rupee depreciation.
Operating profit in Q2FY14 was at Rs.188.11 Cr as against Rs.167.02 Cr an increase
of 12.6%.Core EBITDA margins were at 26.6% which indicates the robust business
model.
Biocon Q2FY14 PAT was at Rs.110.39 Cr as against Rs.92.81 Cr in Q2FY13 an
increase of 18.9%.
News Update and
Analysis
HBJ - View
Biocon Q2FY14 revenues were at Rs.707.28 Cr as against Rs.642.91 Cr an increase
of 10% YoY. Revenues during the quarter were higher on account of improving
product mix and rupee depreciation.
Operating profit in Q2FY14 was at Rs.188.11 Cr as against Rs.167.02 Cr an increase
of 12.6%.Core EBITDA margins were at 26.6% which indicates the robust business
model.
Biocon Q2FY14 PAT was at Rs.110.39 Cr as against Rs.92.81 Cr in Q2FY13 an
increase of 18.9%.
Biocon Collaborates with Advaxis for 'ADXS-HPV' A Novel Cancer Immunotherapy.
Shri GhulamNabi Azad Inaugurates Baxter Global Research Center at Syngene.
Biocon has been one of the best performing Pharma stocks over the last year. The
companys strong operational performance coupled with increasing recognition of
its research capabilities is driving the stock higher. Companys strong research
pipeline coupled with the inauguration of the companys Malaysian facility should
drive the stock even higher going forward.
M&M Financials
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 28.5per cent YoY to Rs.1358.58 Cr as
Operating Profit in Q3FY14 was at Rs.900.38 Cr as against Rs.773.92Cr in
Q3FY13registering an increase of 16.3%.
Net Profit decreased 18.56per cent (YoY) to Rs.182.36 Cr in Q3FY14 as compared to Rs.
216.21 Cr in Q3FY13.
News Update and
Analysis
HBJ - View
M&MFinancials is also looking at opportunities abroad which will de-risk its dependence
on the domestic economy in the long run.
http://www.livemint.com/Companies/53YH4J6NrD09lNzaYnoQSM/Mahindra-Finance-looks-to-enter-South-Africa-
for-auto-finan.html
M&M Financials should be a core portfolio stock of most Investors. The company
has many years of growth ahead of it. We believe that M&M financials is well
positioned to capitalize on the financial services opportunities in Rural India. While
the valuations may look a little pricey, we believe that the business quality allows us
to still put a BUY rating on the stock.
Sanghvi Movers
Quarterly Results
Analysis
In Q3FY14, companys top line decreased by 30.55 per cent YoY to Rs.56.09 Cr as
In Q3FY14 company incurred a Net Loss of Rs.6.50 Cr as against Rs.2.23 Cr Net
Profit in Q3FY13.
Operating Profit stood at Rs.21.73Cr in Q3FY14 as against 34.98 Cr in Q3FY13 a
decrease of about 60.97%.
News Update and
Analysis
HBJ - View
Sanghvi Movers is a patient bet and we would continue to monitor the stock
closely. At current point, the stock looks highly undervalued and it doesnt make any
sense for Investors to exit at current levels. Definitely the stocks would be one of the
best BETA plays in the current market. Sanghvi Movers definitely adds that diversity
to our Portfolio. We believe with a reducing Debt profile and a pick up in the
broader Investment cycle. the stock can deliver strong returns.
Transport corporation of India
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 4.6 per cent to Rs.514.98 Cr as compared to
Rs.492.05Cr in same quarter of previous fiscal.
Operating Profit in Q3FY14 was at Rs.37.72 Cr as against Rs.34.24 Cr in Q3FY13
Net Profit increased per cent (YoY) to Rs. 14.39 Cr in Q3FY14 as compared to Rs. 26.89
Cr in Q3FY13.
News Update and
Analysis
HBJ - View
The stock has performed brilliantly over the past quarter. The biggest trigger for
the stock has been the entry of Market legend Radhakishan Damani. With several
smart investors accumulating Logistics stocks as a proxy play for the growth of e-
commerce, TCI is bound to do well going forward too.
Karur Vysya Bank
Quarterly Results
Analysis
The Total Income for Q3FY14 stood at Rs.1298 Cr as against Rs.1072.10Cr an YoY
increase of 22.53% .
Net Profit recorded for Q3FY14 stood at Rs.106.82 Cr compared to Rs. 113.04 Cr in
corresponding previous quarter. The steep increase in cost to income from 47.59%
in Q3FY14 as against 61.24% in Q3FY13 resulted in lower profitability.
Gross non-performing assets (NPAs) stood at Rs.484 Cr for the quarter ended 30
Dec 2013.
News Update and
Analysis
HBJ - View
Karur Vysya Bank plans to open ultra small branches to the rural branch where no banking
operations are in existence. This will in the long run expand the reach of the bank.
http://www.business-standard.com/article/companies/karur-vysya-opens-ultra-small-branch-
113111800978_1.html
KVB continues to undergo significant stress on its asset quality. The stock has
deservedly corrected strongly over the last year. With a cyclical recovery in
economy, KVB offers a good play on this theme. While we are uncomfortable
with the banks recent performance, the current valuations makes it a HOLD
rather than a SELL.
PVR
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 68.7per cent YoY to Rs.337.29 Cr as
compared to Rs.199.93 Cr in same quarter of previous fiscal. Consolidated revenues were
higher on account of consolidation of Cinemax.(Not comparable)
EBITDA in Q3FY14 was at Rs.51.41 Cr as against Rs.35.43 Cr in Q3FY13 registering an
increase of 45.1 % YoY. Cinemax numbers consolidated and hence not comparable.
Net Profit post taxes stood at Rs.14.16 Cr in Q3FY14 as against Rs.9.13 Cr a year ago an
increase of 55% YoY.
Expect Cinemax circuit to contribute 23-24 million footfalls to PVR chain: Nitin Sood, PVR
http://articles.economictimes.indiatimes.com/2014-03-25/news/48559045_1_cinemax-
nitin-sood-pvr-ltd
News Update and
Analysis
HBJ - View
Expect Cinemax circuit to contribute 23-24 million footfalls to PVR chain: Nitin Sood, PVR
http://articles.economictimes.indiatimes.com/2014-03-25/news/48559045_1_cinemax-
nitin-sood-pvr-ltd
PVR with the Cinemax acquisition continues to dominate the Indian Exhibition
industry. With aggressive expansion plans, our Analysis shows that the Margins
would benefit with Economies of Scale.
More importantly, PVR is well poised to become significantly large exhibition
company considering the opportunities in the sector and PVRs operational strength.
Hence, while in the near term the stock may look overvalued we believe that the
stock is a great Long Termpick and hence add on any Declines.
Persistent systems
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 29.9 per cent to Rs.432.76Cr as compared to
Rs.332.99Cr in same quarter of previous fiscal. Revenues were driven by Onshore and
Offsite volume growth.
Operating Profit in Q3FY14 was at Rs.112.75 Cr as against Rs.90.79 Cr in
Q3FY13registering an increase of 24.18%.The margins were higher on account of a weak
rupee during the quarter.
Net Profit in Q3FY14 increased by 29.6 per cent (YoY) to Rs.64.20 Cr as compared to Rs.
49.51 Cr in Q3FY13.
News Update and
Analysis
HBJ - View
"Persistent Systems Named to Leader Category on 2014 IAOP Global Outsourcing 100
Service Provider List".
"Innovative Hand Hygiene Technology Startup Hyginex Receives Investment from
Persistent Systems".
Persistent Systems is a core portfolio stock. We continue to like the companys
business model and its Management. They have continued to deliver strong
operational results and this quarter has been no exception.
Considering the Quality of Management, Improved demand outlook, Niche
Business and Growth prospects we continue to be Long TermInvestors in this stock
and hence Advise Investors to add on every decline.
Greaves Cotton
Quarterly Results
Analysis
Greaves Cotton revenues in Q3FY14 was at Rs.423.40 Cr as against Rs.514.56 Cr in
Q3FY13 registering a steep decline of 21.5%.Greaves Cotton revenues were impacted by 6-
7% YoY decline in auto segment.
Greaves Cotton operating margins in Q3FY14 was at Rs.52.79 Cr as against Rs.64.37 Cr in
Q3FY13 registering a sharp drop of 21.9%.Greaves Cotton margins were lower on account
of Infra segment and a Rs.3 Cr hit fromGerman subsidiary.
Greaves Cotton reported a loss of Rs.37.75 Cr in Q3FY14 as against a profit of Rs.34.36 Cr
in Q3FY13.
News Update and
Analysis
HBJ - View
Greaves Cotton is also looking to expand its foot print by manufacturing overseas and
expects Rs.600 Cr revenue in the nest three years.
http://timesofindia.indiatimes.com/business/india-business/Greaves-Cotton-expands-overseas-
manufacturing/articleshow/25091897.cms
Greaves cotton is one of the best Capital goods stock that has a structurally
high return on capital business. The companys dominance in the small engine
segment and the Managements attitude towards minority share holders make
it a Core portfolio bet.
Kewal Kiran
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 12.26 per cent to Rs.86.95 Cr as compared
to Rs.77.45 Cr in same quarter of previous fiscal. Revenues were higher on account of
growth in apparel sales volume with all four brands recording robust growth.
registering an decrease of 10.36%.
Net Profit decreased 13 per cent (YoY) to Rs. 10.62 Cr in Q3FY14 as compared to Rs. 12
Cr in Q3FY13.
News Update and
Analysis
HBJ - View
Kewal Kiran expects its sales to be robust from the festive season and expects good
response for its brands.
http://www.business-standard.com/article/companies/festive-season-raises-hopes-of-
better-like-to-like-growth-for-apparels-113110900640_1.html
Kewal Kiran is one of our Core Portfolio stocks which we believe has a
great potential to deliver good compounded results for the next 5 years
and more. The company continues to perform brilliantly even in an
environment where its competition is floundering. We believe Long Term
investors must BUY this stock even at current prices.
Bajaj Electricals Ltd
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 18.31%(YoY) to Rs.1033.36 Cr as
Operating margins in Q3FY14 was at Rs.60.12 Cr as against Rs.40.52 Cr in Q3FY13 a
sharp increase of 48.37% YoY.
In Q3FY14 the company incurred a net profitof Rs.20.03 Cr as against a Net profit
of Rs.11.68 Cr in Q3FY13.
News Update and
Analysis
HBJ - View
Will post 25% growth in FY14 : Bajaj Electricals
Read more at: http://www.moneycontrol.com/news/results-boardroom/will-post-25-
growthfy14bajaj-electricals_1041063.html?utm_source=ref_article
Bajaj Electricals has delivered strong operating results after several quarters of
below average results. There is finally hope on the turnaround of the companys EPC
business. Companys consumer durable business was always a strong performer.
Hence, the stock would continue to rally until the valuation differential between its
peers are narrowed. The companys strong earnings growth would ensure that the
stock continues to stay in our Core Portfolio list.
IL&FS Investment managers
Quarterly Results
Analysis
In Q3FY14, companys top line decreased by 7.6per cent YoY to Rs.52.26 Cr as
registering a increase of 9.5% YoY.
Net Profit increased 5.5 per cent (YoY) to Rs. 18.70 Cr in Q3FY14 as compared to Rs.
19.74Cr in Q3FY13.
News Update and
Analysis
HBJ - View
While still the visibility for Business growth remains low, we believe that the
conditions for Private Equity Businesses has improved substantially with improved
Business environment. There is very high Margin of Safety in the business and we
continue to have a HOLD rating on the stock.
Honda Siel Power
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 17.33 per cent to Rs.151.26 Cr as compared
to Rs.128.91Cr in same quarter of previous fiscal.
registering a increaseof 19.66%.
Net Profit increased 16.5per cent (YoY) to Rs. 7.05 Cr in Q3FY14 as compared to Rs.
6.05 Cr in Q3FY13.
News Update and
Analysis
HBJ - View
Honda Siel Power continues to perform below our expectation. The structural
demand scenario has also altered with improvements in the overall demand-supply
gap for power. This coupled with increasing competition would ensure that Honda
Power continues to deliver sub-optimal returns. Hence, we would like to EXIT out of
the stock.
Redington India
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 16.34 per cent YoY to Rs.7126.91 Cr as
Operating Profit in Q3FY14 was at Rs.188.07Cr as against Rs.175.19 Cr in Q3FY13
registering a increase of 7.35%.Company was able to control its COGS at 96.5% of
the overall cost which has helped to grow its margins.
Net Profit increased 5.81per cent (YoY) to Rs.86.67 Cr in Q3FY14 as compared to
Rs.81.91 Cr in Q3FY13. Expansion of product line and wide distribution network
helped the company to increase profitability during the quarter.
News Update and
Analysis
HBJ - View
Consequent to the approval of the Shareholders through Postal ballot, the Company's
Promoter Company, M/s Harrow Investment Holding Limited, Mauritius has completed the
acquisition of 86% equity interest in M/s Easyaccess Financial Services Limited.
Redington continues to perform well in an extremely challenging
environment. The companys decision to unlock capital by divesting its
NBFC would lead to better return ratios. The company is a strong play on
the improving electronics consumption of young Indians.
Eclerx
Quarterly Results
Analysis
Eclerx revenues in Q3FY14 was at Rs.219.53 Cr as against Rs.170.79 Cr in Q3FY13
registering a increase of 28.53% YoY. Revenues were higher on account of rupee
depreciation and acquisition of new clients.
Eclerx operating profit in Q3FY14 was at Rs.89.44Cr as against Rs.65.84Cr in
Q3FY13 an increase of 35.84% YoY. Operating margins were lower on account of
control in employee expenses which constitute about 45%of the total expenses.
Net Profit in Q3FY14 was at Rs.62.32 Cr as against Rs.48.95 Cr in Q3FY13
registering a growth of 27.31% YoY. Currency , cost rationalization and new client
additions drive PAT growth.
News Update and
Analysis
HBJ - View
Eclerx revenues in Q3FY14 was at Rs.219.53 Cr as against Rs.170.79 Cr in Q3FY13
registering a increase of 28.53% YoY. Revenues were higher on account of rupee
depreciation and acquisition of new clients.
Eclerx operating profit in Q3FY14 was at Rs.89.44Cr as against Rs.65.84Cr in
Q3FY13 an increase of 35.84% YoY. Operating margins were lower on account of
control in employee expenses which constitute about 45%of the total expenses.
Net Profit in Q3FY14 was at Rs.62.32 Cr as against Rs.48.95 Cr in Q3FY13
registering a growth of 27.31% YoY. Currency , cost rationalization and new client
additions drive PAT growth.
eClerx Services: Updates on buyback offer
http://www.moneycontrol.com/news/announcements/eclerx-services-updatesbuyback-
offer_1050171.html?utm_source=ref_article
Eclerx is one of the biggest beneficiaries of the Rupee depreciation with a very
strong Offshore presence. With the US economy continuing to show strong growth
signs, we believe that Eclerx would continue to surprise Market participants on the
upside. Considering the Managements track record on Capital Allocation and
Growth execution, the stock would be a part of our Portfolio for long term.
NMDC
Quarterly Results
Analysis
In Q3FY14 NMDC revenues were at Rs.2823.17Cr as against Rs.2047.69Cr Q3FY13
a increase of 37.87% YoY. NMDC reported Iron Ore sales of 7.3 MT up by 37% YoY
Production has increased increased from 5.36 MT to 7.30 MT i.e., inc. By 36 %.
The company s EBITDA in Dec 2013 was at Rs.2410.51Cr as against Rs. 1947.52 Cr
in Dec 2012 registering a growth of 23.77%.
PAT for the quarter ended Dec 2013 de-grew by 21.23% at Rs. 1,567.30Cr as against
Rs. 1,292.80 for the corresponding quarter ended Dec 2012.
News Update and
Analysis
HBJ - View
In Q3FY14 NMDC revenues were at Rs.2823.17Cr as against Rs.2047.69Cr Q3FY13
a increase of 37.87% YoY. NMDC reported Iron Ore sales of 7.3 MT up by 37% YoY
Production has increased increased from 5.36 MT to 7.30 MT i.e., inc. By 36 %.
The company s EBITDA in Dec 2013 was at Rs.2410.51Cr as against Rs. 1947.52 Cr
in Dec 2012 registering a growth of 23.77%.
PAT for the quarter ended Dec 2013 de-grew by 21.23% at Rs. 1,567.30Cr as against
Rs. 1,292.80 for the corresponding quarter ended Dec 2012.
NMDCs dividend yield continues to be attractive even at current prices. With the
general optimism around metal stocks after the rupee depreciation, we believe that
NMDC has still room for more gains. The companys competitive positioning in the
Indian markets continues to be unassailable.
CARE RATINGS
Quarterly Results
Analysis
In Q3FY14 revenues were at Rs.53.84 Cr as against Rs.45.57Cr an increase of
18.14% YoY. Revenue growth was tepid due to lower GDP growth resulting in
subdued credit and debt markets.
The company s EBITDA in Dec 2013 was at Rs.39.18 Cr as against Rs.38.78 Cr in
Dec 2012 registering a growth of 1.03% YoY. Company was able to keep cost under
control in a difficult macro environment.
PAT for the quarter ended Dec 2013 grew by .71% YoY at Rs.28.02 Cr as against
Rs.27.82Cr for the quarter ended Dec 2012.
News Update and
Analysis
HBJ - View
In Q3FY14 revenues were at Rs.53.84 Cr as against Rs.45.57Cr an increase of
18.14% YoY. Revenue growth was tepid due to lower GDP growth resulting in
subdued credit and debt markets.
The company s EBITDA in Dec 2013 was at Rs.39.18 Cr as against Rs.38.78 Cr in
Dec 2012 registering a growth of 1.03% YoY. Company was able to keep cost under
control in a difficult macro environment.
PAT for the quarter ended Dec 2013 grew by .71% YoY at Rs.28.02 Cr as against
Rs.27.82Cr for the quarter ended Dec 2012.
Care Ratings likely to get new promoter: Sources
http://www.moneycontrol.com/news/cnbctv18comments/care-ratings-likely-to-get-new-
promoter-sources_1046159.html?utm_source=ref_article
We believe that CARE Ratings would continue to be one of our Core Portfolio
stocks considering the long term growth potential. While the stock may have
rallied recently, we still believe that the stock is at attractive enough prices
considering the Quality of the business. With a strong Dividend payout, we
continue to be bullish on the stock.
Mahindra Holidays(MHRIL)
Quarterly Results
Analysis
MHRIL reported sales of Rs.189.44 Cr in Dec 2013 as against Rs.179.02 Cr in Dec
2012 thereby registering a growth of about 5.82%(YoY).
The company s EBITDA in Dec2013 was at Rs.40.73 Cr as against Rs.50.09 Cr in
Dec 2012 registering a declineof 22.9%.
PAT for the quarter ended Dec2013 decline by 48% YoY at Rs.20.31Cr as against
Rs.30.07 Cr of corresponding quarter ended Dec2012.
News Update and
Analysis
HBJ - View
MHRIL reported sales of Rs.189.44 Cr in Dec 2013 as against Rs.179.02 Cr in Dec
2012 thereby registering a growth of about 5.82%(YoY).
The company s EBITDA in Dec2013 was at Rs.40.73 Cr as against Rs.50.09 Cr in
Dec 2012 registering a declineof 22.9%.
PAT for the quarter ended Dec2013 decline by 48% YoY at Rs.20.31Cr as against
Rs.30.07 Cr of corresponding quarter ended Dec2012.
Mahindra Holidays has unveiled a new brand identity and has plans to add about 1000
rooms in FY15 to drive its growth.
http://profit.ndtv.com/news/corporates/article-mahindra-holidays-unveils-new-brand-
identity-to-add-1000-rooms-370210
MHRLs business model continues to be shareholder friendly. It is one of the
best hospitality stocks to own in India. The company Managements pedigree
combined with the huge opportunity size should enable the stock to do well
going forward. Hence, we have a HOLD rating on the stock.
Bajaj Finserv
Quarterly Results
Analysis
Bajaj Finserve reported sales of Rs.1392.53 Cr in Dec2013 as against Rs.1119.60 Cr
in Dec 2012 thereby registering a growth of about 24.3% YoY.
The company s EBITDA in Dec 2013 was at Rs 992.58 1Cr as against Rs. 824.75 Cr in
Dec 2012 registering a growth of 20.34%.
PAT in Dec 2013 was at Rs. 409.46 Cr as against Rs 361.11 Cr in Sep 2012 registering
a YoY growth of 13%.
News Update and
Analysis
HBJ - View
Bajaj Finserve participates in insurance business through 74% holdings in Bajaj Allianz Life
Insurance Company and bajaj Allianz General Insurance Company and in the lending
business through 61.99% holding in bajaj finserve Ltd
Bajaj Finserv is one the cheapest available quality finance stocks. We believe that the
company has all the characteristics to emerge as a financial conglomerate over the next 10
years with significant value creation for its share holders. Indias best quality insurance
business cannot be available this cheap for long and we believe that the stock would
deliver good returns over the next 3 years. We continue to have a BUY rating on the stock.
Atul Auto
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 18.87per cent YoY to Rs.123.05Cr as
compared to Rs. 103.51 Cr in same quarter of previous fiscal.
The company s EBITDA in Dec 2013 was at Rs 15.83 Cr as against Rs. 13.15 Cr in Dec 2012
registering a growth of 20.38%.
Total sales from April to Feb has increased from 29010 in Fin Year 2013 to 24343 in Fin
Year 2014
Working capital requirement continues to be under control and theres strong cash flow
generation which adding on to cash reserves.
News Update and
Analysis
HBJ - View
Atul Auto Ltd has been conferred with "IndiaMart - Leaders of Tomorrow Award 2013" in
Auto Components sector of West Zone presented by ET Now
Atul Autos strong performance over the last many quarters has attracted
several high profile Investors into the stock such as Sanjoy Bhattacharya,
Raamdeo Agarwal etc. We believe that the company would continue to
outgrow the Industry by over 10% over the next 3 years leading to strong
profitability for the company. We continue to have a BUY rating on the stock
despite the recent run-up.
VA Tech Wabag
Quarterly Results
Analysis
VA Tech Wabag reported sales of Rs.589.30 Cr in Dec2013 as against Rs.354Cr in
Dec 2012 thereby registering a growth of about 66.46% YoY. Revenues were higher
on account of strong revenue growth of International subsidiaries.
The company s EBITDA in Dec 2013 was at Rs.40.99Cr as against Rs.22.30 Cr in Dec
2012 registering a de-growth of 83.81%.
PAT in Dec 2013 was at Rs.21.66 Cr as against Rs.9.85 Cr in Dec 2012 registering a
YoY de-growth of 119.89%.
News Update and
Analysis
HBJ - View
Wabag beats FY 13-14 order intake guidance in 9 months; Suprasses Rs. 1,000 Crores of
order intake for the third consecutive quarter; Total order intake crosses Rs. 3,000 Crores
for the year
VA Tech Wabag is one of those high quality businesses which can continue to
deliver over 30% return on capital across an entire business cycle. We are
extremely bullish on the stock at the current prices and we believe that the
stock can surprise most participants with its positive performance. This is
clearly a BEST BUY stock which Investors must invest.
Indiabulls Housing Finance
Quarterly Results
Analysis
In Q3FY14 IndiaBulls Housing revenues increased by 318% YoY at Rs.1565.80 Cr as
against Rs.374.27 Cr in Q3FY13.
NII has increased by 22.1% to Rs. 659 crore over the last quarter.
Gross Non-Performing Asset is at 0.88 % of total advances & Net NPA is at 0.48 %. NPAs
continue to remain within the target range despite a prolonged depressed economic
environment and a resultant phase of weakened credit cycle
Net Profit increased 348 per cent to Rs 395.15 Cr in Q3FY14 as compared to Rs. 88.05
Cr in Q3FY13.
News Update and
Analysis
HBJ - View
In Q3FY14 IndiaBulls Housing revenues increased by 318% YoY at Rs.1565.80 Cr as
against Rs.374.27 Cr in Q3FY13.
NII has increased by 22.1% to Rs. 659 crore over the last quarter.
Gross Non-Performing Asset is at 0.88 % of total advances & Net NPA is at 0.48 %. NPAs
continue to remain within the target range despite a prolonged depressed economic
environment and a resultant phase of weakened credit cycle
Net Profit increased 348 per cent to Rs 395.15 Cr in Q3FY14 as compared to Rs. 88.05
Cr in Q3FY13.
Increase in the Branch network from 195 branches the previous year to 205
branches as on December 31st, 2013, 147 of which are in Tier II and Tier III cities,
further reinforcing IBHFLs presence in semi-urban locations.
Indiabulls Housing Finance is a victim of negative perception (partially deserved by the
companys past history). With continuous strong operating performances combined with
robust dividend payout, the stock should re-rate the going forward. We continue to be
bullish on the stock froma 3 year perspective.
Balkrishna Industries
Quarterly Results
Analysis
Balkrishna Industries reported sales of Rs. 884.42 Cr in Sep2013 as against Rs.
704.73 Cr in Sep 2012 thereby registering a growth of about 25.49% YoY.
The company s EBITDA in Sep 2013 was at Rs. 234.13 Cr as against Rs. 156.19 Cr in
Sep 2012 registering a growth of 49.9%.
PAT in Sep 2013 was at Rs. 123.85 Cr as against Rs. 74.41 Cr in Sep 2012 registering
a YoY growth of 66.44%.
News Update and
Analysis
HBJ - View
Total Achievable Manufacturing Capacity to reach at 300,000 MT post Bhuj expansion .
The stock has been on a tear run aided by strong operating results coupled
with weak rubber prices. This well run company would continue to gain market
share in the global markets from less efficient players and hence the long term
prospects of the company continues to be strong. Hence, we would like to
accumulate the stock on every decline.
Dhanuka Agritech
Quarterly Results
Analysis
Dhanuka Agritech reported sales of Rs. 167.03 Cr in Dec2013 as against Rs.
139.61Cr in Dec 2012 thereby registering a growth of about 19.64% YoY.
The company s EBITDA in Dec 2013 was at Rs. 26.90 Cr as against Rs. 16.33 Cr in
Dec 2012 registering a growth of 64.72%.
PAT in Dec 2013 was at Rs. 21.28 Cr as against Rs. 11.68 Cr in Dec 2012 registering a
YoY growth of 82.1%.
Six new products are in pipeline, of which 2 are expected to be launched
every fiscal for the first time in India.
The stock has doubled from our initially recommended price. The stock is no
longer cheap enough. Investors would be able to accumulate the stock at much
lower levels in case of a failed monsoon this year. Hence, we would expect
Investors to accumulate the stock in case of a correction.
News Update and
Analysis
HBJ - View
NBCC
Quarterly Results
Analysis
NBCC reported sales of Rs. 1,000.23 Cr in Dec2013 as against Rs. 871.47Cr in Sep
2013 thereby registering a growth of about 14.7% QoQ.
The company s EBITDA in Dec 2013 was at Rs. 82.93 Cr as against Rs. 95.28 Cr in
Sep 2013 registering a growth of 14.8% QoQ.
PAT in Dec 2013 was at Rs. 56.60 Cr as against Rs. 62.24 Cr in Sep 2013 registering a
QoQ growth of 9.96%.
The MoU for 201415 sets out certain performance targets for the Company based on fina
ncial parameters, dynamic parameters, sector specific and enterprise specific parameters.
While sales have been targeted at Rs. 3800 Crore, New Order during the year is aimed at R
s. 4500 Crore; Gross Operating Margin Rate for the Company has been set at 9.83%.
The company continues to be extremely undervalued. The durability of the
float seems to be weakening over the last few quarters. Despite a weakened
float and a subdued real estate cycle, the company has been delivering strong
operating results. This gives us the confidence of much better performance of
the company going forward too. The stock can generate 30% CAGR returns and
hence we would like to BUY this stock froma 3-5 year view.
News Update and
Analysis
HBJ - View
Godrej Properties
Quarterly Results
Analysis
In Q3FY14, companys top line decreased by 10 per cent to Rs. 241.95 Cr as compared
to Rs. 266.41Cr in same quarter of previous fiscal.
Operating Profit in Q3FY14 was at Rs. 97.39 Cr as against Rs. 76.51 Cr in Q3FY13
35.48Cr in Q3FY13.
Godrej Properties adds a large new residential project in Pune. Godrej Properties adds
new project in Vikhroli through its agreement with Godrej & Boyce
Godrej Properties continues to be one of our Ultra-Long term bets on the
growth of the organized real estate sector. The companys management
coupled with its asset light business model attracts investors to it. The
companys new project launches over the last month has led to strong re-rating
in the stock price. While the stock is no longer extremely cheap, it is still
available at an attractive valuation for investors to BUY.
News Update and
Analysis
HBJ - View
Hindustan Media Ventures
Quarterly Results
Analysis
In Q3FY14, companys top line increased by 16.32 per cent to Rs. 188.65 Cr as compared
20.81 Cr in Q3FY13.
16% increase in advertising revenues to Rs. 1,375 million from Rs. 1,182 million
primarily due to increase in advertising yields and volumes .
18% increase in circulation revenues to Rs. 459 million from Rs. 390 million primarily
due to higher realization per copy
HT Mumbai continues to consolidate its No. 2 position with a Total Revenue growth of
27% and achieves operational breakeven in Q3 FY14
HTs stock price continues to be attractive. The companys
performance has been good despite the increasing competitive
intensity in its traditional markets. We continue to monitor the stock
closely before we take a strong decision on it.
In Q3FY14, companys top line increased by 16.32 per cent to Rs. 188.65 Cr as compared
20.81 Cr in Q3FY13.
16% increase in advertising revenues to Rs. 1,375 million from Rs. 1,182 million
primarily due to increase in advertising yields and volumes .
18% increase in circulation revenues to Rs. 459 million from Rs. 390 million primarily
due to higher realization per copy
News Update and
Analysis
HBJ - View
Unable to Manage you Equity Portfolio effectively ??
Subscribe to the Best Offline PMS Service,
The Millionaire Portfolio today !!
TMP Your model Portfolio for wealth creation
THANK YOU

Flashback Report - Q3FY14

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Flashback Report - Q3FY14

Hochgeladen von

Copyright:

Verfügbare Formate

Stocks for

Das könnte Ihnen auch gefallen