Query Board
This section gives decisive investment rationales to our subscribers on the stock queries they have raised to our research team.
The Indian Hotels Company Limited (IHCL) is an Indian hospitality company that manages a portfolio of hotels, resorts, jungle safaris, palaces, spas and in-flight catering services. The company’s quarterly consolidated financials show that the operating profit for Q2FY22 is Rs 96.75 crore as compared to the operating loss of Rs 83.47 crore for Q2FY21. Net sales increased attractively for Q2FY22 and stood at Rs 728.37 crore as compared to the net sales in the previous year for the same quarter which was Rs 256.67 crore. The net loss lowered from Rs 219.70 crore incurred in Q2FY21 to net loss of Rs 118.35 crore recorded in Q2FY22. Looking at the annual performance, the net sales have been sluggish, reported at Rs 1,575.16 crore for FY21 as compared to net sales of Rs 4,463.14 crore recorded in FY20. The operating loss for FY21 stood at Rs 197.04 crore as compared to an operating profit of Rs 1,099.95 crore recorded for FY20. The company has recorded net loss for FY21 amounting to Rs 694.21 crore as against Rs 350.77 crore recorded for FY20. The companyspecific factors are observed to be favourable but the macroeconomic environment is uncertain. The pandemic has had the greatest impact on the hotel industry. The current variation of Omicron poses further uncertainties in the business. Hence, we recommend AVOID.
I ndiGo is an Indian low-cost airline headquartered in Gurgaon, Haryana, India. It is the largest airline in India by passengers carried and fleet size, with a 57 per cent domestic market share as of August 2021. Looking at the company’s quarterly consolidated performance, we can see that the operating profit for Q2FY22 stood at Rs 381.24 crore as compared to the operating profit of Rs 494.25 crore for Q2FY21. The net sales for Q2FY22 stood at Rs 5,608.50 crore as compared to net sales recorded in Q2FY21 which stood at Rs 2,740.96 crore. The company recorded a net loss of Rs 1,435.66 in Q2FY22 crore as compared to net loss of Rs 1,194.83 crore recorded in Q2FY21. On the annual front, the performance of net sales has declined to Rs 14,640.63 crore for FY21 from FY20 net sales reported at Rs 35,756 crore. The operating profit stood at Rs 1,023.36 crore as compared to an operating profit of Rs 5,594.13 crore for FY21. The company has incurred net loss of Rs 5,806.43 crore for the FY21 as compared to net loss of Rs 233.68 crore for FY20. The performance ratios of the company, namely, net profit and net sales, have declined in FY21 as compared to FY20. Both domestically and internationally, the company has faced demand shutdowns and revenue challenges due to travel bans and lockdowns. Also, the company has incurred huge losses in its books and faces uncertainty regarding the Omicron variant. Hence, we recommend EXIT.
Formerly known as Puneet Resins Ltd., Rishiroop Ltd. is the merged entity of Puneet Resins Ltd. and Rishiroop Rubber (International) Ltd. They were the pioneers to manufacture both Chlorinated Rubber (sold under our brand name Chlorub) and Acrylonitrile Butadiene Rubber (NBR) and Poly-vinyl Chloride (PVC) polymer blends (NBR / PVC Blends – sold under our brands Vinoprene & Vinoplast) in India and are referred to as the benchmark for quality in the industry. The products are exported across the world and they are always interested to explore new markets. Rishiroop ltd is with a core competence in rubber, coatings & adhesives, the group companies today also cater to the construction, household / industrial cleaning, inks, leather auxiliaries, mining, oil and gas, paper, personal care, pharmaceuticals, plastics, poly-urethanes and textiles industries.
The financial performance of the company depicts that on a consolidated basis the operating profit surged in Q2FY22 reporting at Rs. 7.76 crore as compared to the operating profit of Rs. 2.81 crore reported in Q2FY21. Net sales for the Q2FY21 stood at Rs. 19.61 crore recording an increase of 63 per cent as compared to the net sales in the previous financial year. The net profit has seen a rise by 35 per cent and recorded at Rs. 6.20 crore when compared to net profit of Rs 2.17 crore recorded in the corresponding quarter of previous fiscal year.
On the annual front, net sales reported at Rs. 54.60 crore for FY21, which improved 34.65 per cent as compared to net sales of Rs 40.55 crore reported for FY20. The operating profit stood at Rs. 18 crore in FY21 as compared to an operating loss of Rs. 2.54 crore incurred in FY20. The company has delivered a net profit of Rs. 30 crore for the FY21 as compared to the net loss of Rs. 2.84 crore for FY20.
The company has very good net profit and operating revenue. It has a steady balance sheet, strong project pipeline and strong growth visibility is expected to grow well for the company. Hence, we recommend BUY.
Kilpest is an ISO certified company and has representation in India in the field of agriculture business comprising Crop Protection Products and Public Health Products, Bio products, Micro-Nutrients and Mix fertilizers. The Company has one of the most advance Research & Development facility at its Bhopal Plant and also has Biological Research Centre. The products are manufactured to high international / BIS specifications with stringent quality control from raw material procurement to finished goods dispatch. The Company’s manufacturing process is complimented with the technical expertise and it has attained high standard suited to customer needs.
The company’s quarterly standalone financials shows that the operating profit for Q2FY22 is Rs. 7.95 crore as compared to the operating profit of Rs. 79.98 crore for Q2FY21, recording a major dip. Net sales for the Q2FY22 were seen at Rs. 15.22 crore as compared to the net sales for the Q2FY21 were recorded at Rs 112.28 crore. The net profit has been on the lower side and stands at Rs. 5.88 crore as compared to the same quarter of previous financial year which recorded net profit of Rs. 59.73 crore.
The annual performance of net sales has rocketed to Rs. 226.74 crore for FY21, which has improved from previous year’s net sales of Rs. 28.88 crore. The operating profit for FY21 zoomed robustly to Rs. 152.88 crore as compared to an operating profit of Rs. 10.92 crore for that last previous fiscal year of FY20. The company gained a net profit of Rs. 113.87 crore for the FY21 as compared to the net profit of Rs. 7.69 crore for FY20.
The company will continue to concentrate on sustaining leadership delivered by a best-in-class team. After the opening of the lockdown, the company has seen gradual recovery in the industry and this is expected to continue to improve. Kilpest India ltd. is optimistic about the long-term industry outlook and would focus on various strategic initiatives to strengthen its position in the market. Hence, we recommend BUY.