Reviews

Kiran Dhavale

In this edition, we have reviewed Chambal Fertilisers & Chemicals and MOIL. We suggest our reader-investors to HOLD Chambal Fertilisers & Chemicals and MOIL 



We had recommended Chambal Fertilizers & Chemicals in Volume 33, Issue No 21, dated September 17 - 30, 2018 in our Choice Scrip segment when the stock was trading at Rs 158.65. We recommended the stock as the company was expanding its production capacity, the government policies bode well for the company and the company had secured a long term gas supply from GAIL. 

Chambal Fertilisers and Chemicals Limited offers urea and di-ammonium phosphate (DAP). The company’s segments include fertilisers and other agri-inputs, own manufactured phosphoric acid, shipping, software and other segments. The fertilisers and other agri-inputs arm includes manufacture and marketing of urea, single super phosphate (SSP) and purchase and sale of other fertilizers and agri-inputs. The own manufactured phosphoric acid segment includes manufacturing and marketing of phosphoric acid. 



On the standalone financial front, the net sales of the company in Q2FY19 grew by 17.95 per cent to Rs 2486.10 crore as against Rs 2107.80 crore in the same quarter of the previous year. The profit before tax (PAT) was up 0.50 per cent and reached Rs 145 crore in Q2FY19 as against Rs 144.28 crore for the corresponding quarter of the previous fiscal. On the annual front, the net sales were marginally up by a per cent in FY18 at Rs 7461.11 crore versus Rs 7410.66 crore in FY17. The profit after tax grew by 13 per cent and came in at Rs 480.17 crore in FY18, while in FY17 it was Rs 425.10 crore. Since our recommendation, the stock price has fallen by 8 per cent as on December 13, 2018. But looking at the company’s financials, we can say that the stock is most likely to gain some momentum on the bourses and would thus recommend our reader-investors to HOLD the stock. 



We had recommended MOIL in Volume 33, Issue No 10, dated April 16 - 29, 2018 in our Special Report segment when the stock was trading at Rs 211.15. The recommendation was given as the company had undertaken several mine projects, the company was virtually debt-free and also the company reflected robust financial growth. 

MOIL Limited is engaged in the exploration and marketing of manganese ore and products, such as electrolytic manganese dioxide and high carbon ferro manganese alloy. The company operates through three segments, namely, mining, manufacturing and power generation. The company has total mining leases over an area of approximately 1,613.61 hectares land in Maharashtra and Madhya Pradesh. The company has produced over 1.03 million tonnes of various grades of manganese ore. 



On the financial front, on a standalone basis, the net sales of the company has increased by 24 per cent in Q2FY19 to come in at Rs 357.75 crore as against Rs 286.71 crore in the corresponding quarter of the previous year. The PBIDT of the company has surged by 25 per cent to reach Rs 146.30 crore in Q2FY19 as against Rs 116.47 crore in the same quarter of the previous year. The PAT too increased by 13.39 per cent and stood at Rs 105 crore in Q2FY19 as against Rs 92.62 crore in Q2Fy18. 

On the annual front, the net sales went up by 34 per cent to reach Rs 1318.93 crore in FY18 as against Rs 981.93 crore in FY17. The PBIDT has gone up 33 per cent to Rs 674 crore in FY18, while in FY17 it was Rs 512.83 crore. 

Since our recommendation, the stock has shed 17 per cent, but is likely to recover in the coming quarters. We recommend a HOLD.

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