Query Board
FEDERAL BANK
I have 8 shares of Federal Bank bought @ Rs 83 per share. Should I hold them or sell?
- Udit Maheshwari
The Federal Bank operates through four segments: treasury, corporate banking, retail banking and other banking operations. The treasury operations include trading and investments in government and corporate debt instruments, equity and mutual funds, derivatives trading and foreign exchange operations on account and for customers. The corporate banking segment offers loans and other banking services. On the financial front on a consolidated basis, the interest earned by the bank has increased by 16.19 per cent to reach Rs 2764.92 crore in Q2FY19 while it was Rs 2379.6 crore in the same quarter of the previous year. The total income has surged by 15 per cent to Rs 3087 crore in the second quarter of FY19 from Rs 2666.82 crore of the corresponding quarter of the previous year. The profit after Tax (PAT) has remained stable at Rs 266.04 crore in Q2FY19 from Rs 263.7 crore in Q2FY18. On the annual front, the interest earned by the bank came in at Rs 9752.86 crore in FY18 as against Rs 8677.38 crore in FY17, witnessing a 13 per cent rise. The total income of the company went up by 12 per cent and stood at Rs 10911.98 crore in FY18 while in FY17 it was Rs 9759.19 crore. The profit after tax climbed up 6 per cent at Rs 878.85 crore in FY18 as against Rs 830 crore in FY17. Looking at the financials, we can see the bank is in growth momentum and thus we wold advise our reader-investors to HOLD.
ARIES AGRO
I bought 185 shares of Aries Agro at Rs 237. Can I hold, exit or accumulate?
- Edwin Innocent M.S
Aries Agro Limited is engaged in the business of manufacturing micro nutrients and other nutritional products for plants and animals. The company’s principal services include manufacturing and trading in micro nutrient fertilizers. Its products include chelated micronutrient fertilizers, farm equipments, multi-micronutrient fertilizers, other agriculture products, other nutritional products, plant nutrition, plant protection and veterinary products. On the financial front on a consolidated basis, the net sales of the company saw a 10.10 per cent drop in Q2FY19 as against Rs 90.28 crore in the same quarter of the previous year. The profit before interest depreciation and tax (PBIDT) grew by 4 per cent to reach Rs 21.18 crore as against Rs 20.28 crore in Q2FY18. The profit after tax (PAT) expanded by 16 per cent in Q2FY19 and came in at Rs 9.19 crore as against Rs 7.88 crore in the same quarter of FY18. On the annual front, the net sales witnessed a growth of 15 per cent and stood at Rs 291.29 crore in FY18 versus Rs 252.51 crore in FY17. The PBIDT expanded by 12 per cent to Rs 47.86 crore in FY18, while in FY17 it was Rs 42.01 crore. The PAT also surged by over 60 per cent to reach Rs 9.09 crore in FY18 from Rs 5.45 crore in FY17. We recommend a BUY looking at the performance levels and financials of the company
YES BANK
I have 130 shares of Yes Bank bought at Rs 245. Kindly advise on this stock.
- L.S.Sivakumar
Yes Bank Limited is a private sector bank engaged in providing banking services, including corporate and institutional banking, financial markets, investment banking, corporate finance, etc. The bank’s segments include treasury, corporate banking, retail banking and other banking operations. Its treasury segment includes investments and financial markets activities undertaken on behalf of the bank’s customers, trading, maintenance of reserve requirements and resource mobilisation. The corporate/wholesale banking includes lending, deposit taking and other services offered to corporate customers. The retail banking includes lending, deposit taking and other services offered to retail customers.
On the standalone financial front, the interest earned by the bank in the second quarter of the FY19 came in at Rs 7231.23 crore as against Rs 4800.34 corre in the corresponding quarter of the previous fiscal, clocking a growth of 50.64 per cent. The total income in Q2FY19 was Rs 8704.68 crore, expanded by 43 per cent from Rs 6048 crore in Q2FY18. The profit after tax has however dropped by 3 per cent to reach Rs 964.7 crore in Q2FY19 as against Rs 1002.73 crore in Q2FY18.
On the annual front, the interest earned by the bank in FY18 came in at Rs 20267.42 crore, an increase of 23 per cent from Rs 16424.64 crore in FY17. The total income earned by the bank was Rs 25491.26 crore, an increase of 24 per cent from Rs 20581.40 crore. The profit after tax has on an annual basis in FY18 gone up by 27 per cent to reach Rs 4224.56 crore as against Rs 3330.10 in FY17. On the valuation front, the company is currently trading at a PE multiple of 9.01x on its TTM earnings. The return on equity (ROE) stood at 17.67 per cent and the return on capital employed stood at 11.58 per cent. The price/BV multiple stood at 1.48x. Looking at the abovementioned factors, we can say that the company has posted good numbers, but the company has been facing some headwinds due to the recent liquidity crunch in the financial sector. However, the issue is likely to be resolved and thus we would recommend a HOLD on the Yes Bank stock.
SINTEX PLASTIC TECHNOLOGY
I have bought 1200 shares of Sintex Plastic Technology at Rs 82. Should I hold, sell or add more?
- Deepak Ahuja
Sintex Plastics Technology Limited operates through various divisions, including custom-moulding solutions and building products and solutions. Moulding solutions department is engaged in moulding and post-moulding operations. The company manufactures water storage tanks, prefab and construction for mass housing. The company’s solutions include structural solutions, electrical solutions, water management solutions, environmental solution, energy solutions, interior solutions, material handling, telecom solutions and industrial solutions. The company’s offers various products, including water storage solutions, electrical and SMC products, environmental and green solutions, industrial, prefabs, interiors and BAPL.
On the financial front, on a consolidated basis, the company’s net sales stood at Rs 1172.15 crore in Q2FY19, posting an 18.20 per cent drop from Rs 1432.9 crore in the same quarter of the previous year. The profit before interest depreciation and tax (PBIDT) has shed 13.76 per cent in Q2FY19 and came in at Rs 166.25 crore from Rs 192.77 crore in Q2FY18. The profit after tax (PAT) has however risen by 54 per cent in Q2FY19 as it came in at Rs 40.36 crore as against Rs 26.06 crore in the corresponding quarter of the previous fiscal.
On the annual front, the net sales have dropped by 6 per cent to Rs 5697.69 crore in FY18 as against Rs 6041.04 crore in FY17. The PBIDT has also fallen by 27 per cent to reach Rs 755.77 crore in FY18 versus Rs 1032.53 crore in FY17. The PAT has plunged drastically in FY18 by almost 68 per cent to Rs 135.77 crore as against Rs 419.61 crore in FY17. On the valuation front, the company is currently trading at a PE multiple of 11.98x on its TTM earnings as against an industry PE of 16.82x. The RoE stood at 4.17 per cent and the RoCE stood at 6.26 per cent.
The financials reveal that the company is performing poorly. We would recommend our readers to EXIT the stock by reducing the exposure slowly
KRIDHAN INFRA
Right now I have 1000 shares of Kridhan Infra bought at Rs 85, kindly advice whether to exit or hold.
- Deepankar
Kridhan Infra Limited operates as an engineering company and provides pre-cut/bend bars (readymade steel bars) from 6 millimeters (mm) to 40 mm diameter; coupler, which is used to join two rebars of the same mechanical splice, and concrete piles, bored and cast-in place using dry and wet boring methods based on ground conditions enabling installation of larger diameter piles and permit construction through particularly stiff or hard soil. Its geographical segments include India and outside India.
On the financial front on a consolidated basis, the net sales fell by 18.96 per cent to reach Rs 171.9 crore in the second quarter of FY19 as against Rs 212.12 crore in the same quarter of the former year. The profit before interest depreciation and tax (PBIDT) plunged by 14.21 per cent to Rs 25.47 crore in Q2FY19 versus Rs 29.69 crore in Q2FY18. The profit after tax (PAT) was down by 11 per cent on a YoY basis to reach Rs 12.01 crore in Q2FY19 as against Rs 13.56 per cent in the same quarter of the previous year.
On the annual front, the net sales witnessed a marginal 3 per cent drop as it came in at Rs 712.48 crore in FY18 as against Rs 688.16 crore in the previous fiscal 2017. The PBIDT has fallen by 5 per cent in FY18 and came down to Rs 117.20 crore from Rs 123.15 crore in FY17. The PAT in FY18 plunged terribly to Rs 39 crore, witnessing a 77 percent fall from Rs 169 crore which came in FY17.
Kridhan Infra owns almost 41 per cent stake in Vijay Nirman Company (VNC). VNC has completed over 400 projects in over 30 years of operations. As of FY18, the order book of VNC was Rs 2,800 crore, dominated by affordable housing (34 per cent of total order book) and bridges and structures (27 per cent of total order book), while the total order book of Kridhan Infra for FY18 was a little over Rs 3,500 crore. Keeping this in mind, we recommend a HOLD to our reader-investors as we think the stock could pick up some momentum in the coming quarters.
WEST COAST PAPER MILLS
Can I buy stocks of West Coast Papers while it is trading at Rs 380 for 1-year time horizon ?
- Prashanth Kumar
West Coast Paper Mills Ltd is engaged in production of paper and paperboard, and optical fibre cables. The company creates paper for printing, writing and packaging in India. Its segments include paper/paperboard, including duplex board at Dandeli; Its other products include premium printing papers, business stationary, coated duplex boards and machine-glazed (MG) varieties. It also offers grey-back and kraft-back boards to the garment and footwear industry. The company serves various industries, which include food packaging, printing and publishing, pharmaceutical, cigarette, match box, garments, stationary and notebooks.
On the financial front, on a standalone basis, the net sales of the company grew by 19.76 per cent and came in at Rs 504 crore in Q2FY19 as against Rs 421.53 crore in Q2FY18. The profit before interest depreciation and tax (PBIDT) has surged substantially by 61.97 per cent to Rs 135 crore in the second quarter of FY19 as against Rs 47 crore that came in the corresponding quarter of FY18. The profit after tax (PAT) surged 85 per cent to reach Rs 88.48 crore in Q2FY19 as against Rs 47.78 crore in Q2FY18.
On the annual front, the net sales of the company declined marginally by 3 per cent to reach Rs 1710.20 crore in FY18 as against Rs 1769.34 crore in the previous fiscal. The PBIDT of the company for FY18 came in at Rs 381.15, witnessing an increase of 12 per cent from Rs 340.43 crore in FY17. The company posted PAT of Rs 223.23 crore in FY18, an increase of 78 per cent, as against Rs 128 crore in the previous fiscal.
On the valuation front, the company is currently trading at a PE multiple of 6.98x on its TTM earnings .The return on equity (RoE) stood at 30.32 per cent and return on capital employed stood at 23.45 per cent.
Based on the confluence of the abovementioned factors and the attractive valuations, we would recommend our readerinvestors to BUY the stock.