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QueryBoard

Mahanagar Gas Ltd. is a joint venture agreement entered into between GAIL and British Gas Plc. It is one of the largest City Gas Distribution (CGD) companies in India. It is presently the sole authorized distributor of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Mumbai and also adjoining areas and the Raigad district in Maharashtra. The company sources Regasified Liquefied Natural Gas (RLNG) from a number of sources both on term and spot basis. The company distributes natural gas through an extensive CGD network of pipelines for which they have the exclusive authorisation to lay, build, expand and operate the CGD network in accordance with the Petroleum and Natural Gas Regulatory Board. On the standalone financial front, the company has reported an increase of 12.93 per cent in net sales to Rs861.55 crore for Q2FY20 as compared to net sales of Rs762.94 crore for Q1FY19. For Q2FY20 the PBDT increased by 23.14 per cent to Rs294.94 crore from Rs239.51 crore for Q2FY19. Also, in Q2FY20, the company posted a net profit of Rs270.62 crore nearly doubling from Rs136.29 gained in Q2FY19. On the annual front, the net sales increased by 24.62 per cent to Rs3056.79 crore for FY19 from Rs2452.92 crore for FY18. In FY19, the company’s net profit registered a growth by 14.34 per cent to Rs546.39 crore from Rs477.87 crore gained in FY18. Hence, we recommend a SELL.

Finolex Industries Limited is a manufacturer of polyvinyl chloride (PVC) pipes and fittings, and PVC resins. The company’s products include underground sewerage pipes, female threaded adaptor, service saddle, fabricated repair coupler and screen pipes with ribs, compact ball valve, coupler, cross tee, transition bush, etc. Its PVC pipes and fittings are used in agriculture, housing, telecommunications, construction and industries. Its manufacturing plants are located in Pune and Ratnagiri in Maharashtra and Masar which is near Vadodara in Gujarat. Looking at quarterly trends on consolidated basis, in Q2FY20 the company reported net sales of Rs576.67 crore which is an increase of around 6.28 per cent compared to the net sales of Rs542.62 crore in the Q2FY19. PBDT decreased by 26.84 per cent to Rs98.26 crore in the Q2FY20 as against of Rs134.30 crore in Q2FY19. The company recorded a net profit of Rs98.20 crore for Q2FY20 which is an increase by 30.92 per cent compared to the net profit of Rs75.01 crore for Q2FY19. Looking at the annual trends, the company’s net sales in FY19 were Rs3091.32 crore which is a 9.18 per cent increase from the net sales of Rs2831.41 in FY18. In FY19 the company’s net profit increased by 21.81 per cent to Rs353.24 crore from Rs289.99x crore in FY18. We recommend the reader-investors to HOLD the stock.

Parag Milk Foods Limited is engaged in manufacturing and processing of milk and milk products. The company offers a range of products which includes cheese, ghee, whey proteins, paneer, curd, yoghurt, milk products, liquid milk, milk-based beverages and milk powders. Its feature brands include Gowardhan under which traditional dairy products, such as ghee are marketed by the company; Go under which Parag Milk Foods market western lifestyle dairy products such as cheese; Pride of Cows which the company’s premium milk brand and Topp Up which is flavored milk. The company has an aggregate milk processing capacity of approximately two million liters per day. It also has a product basket comprising over 150 stock keeping units (SKUs). On the consolidated financial front, the nets sales for the second quarter of FY20 was Rs640.03 crore which is an increase of 11.60 per cent as compared to net sales of Rs573.48 crore for the second quarter of FY19. The PBDT for first quarter of FY20 was reported to be Rs49.93 crore which is a decrease of 3.89 per cent as against Rs51.95 crore reported for the same quarter of the previous fiscal year. There was a decrease in the net profit by 6.36 per cent for the second quarter of FY20 to Rs28.49 crore when compared to Rs30.43 crore for the second quarter of the previous fiscal year. During Q2FY20, the company was affected by disruptions in milk availability by prolonged monsoons. Looking at the annual trend, the net sales were reported to be Rs2395.66 crore for FY19 thus increasing by 22.57 per cent when compared to Rs1954.51 crore for FY18. In FY19, PBDT also increased by 16.76 per cent to Rs197.97 crore as against Rs169.55 crore for FY18. At Rs120.72 crore for FY19, a 38.66 per cent increase in the net profit for FY19 was reported when compared to the net profit of Rs87.06 crore in FY18. Parag Milk Foods recently launched Go Cheese Blend which is a mix of two natural cheeses namely cheddar and mozzarella in diced form for the out of home consumption segment. Therefore, we recommend a HOLD.

Music Broadcast was first incorporated as ‘Music Broadcast Private Limited’ on November 4, 1999 in Kolkata as a private limited company. Later the company was converted into a public limited company pursuant to a resolution of their shareholders leading to the change in the company’s name to Music Broadcast Limited. Music Broadcast operates as a subsidiary of Jagran Prakashan. It is the first private FM radio broadcaster in India operating under the brand name ‘Radio City’ in cities including Bengaluru, Mumbai, Delhi, Chennai, Pune, Hyderabad, Ahmedabad etc. The company has a sales alliance with ITM Software & Entertainment Private Ltd. (ITM) which operates ‘Suno Lemon 91.9 FM’ in Gwalior and Ananda Offset Private Limited (AOPL) which operates ‘Friends 91.9 FM’ in Kolkata. They also have an online web radio on web portal www.planetradiocity.com (Planet Radio City) launched in 2010. On the standalone financial front, for the second quarter of the current fiscal year, the company’s net sales were Rs62.53 crore, a decrease of 21.97 per cent compared to net sales of Rs80.14 crore reported in the second quarter of the previous fiscal year. For the second quarter of FY20, the PBDT registered a degrowth by 27.55 per cent and stood at Rs20.85 crore as against Rs28.78 crore in the corresponding quarter of FY19. The company’s net profit rose substantially by 38.34 per cent to Rs18.51 crore for the second quarter of the current financial year from Rs13.38 crore gained in the same quarter of the last financial year. On the annual front, net sales for FY19 increased by 8.87 per cent to Rs324.71 crore from Rs298.25 crore in FY18. For FY19, the operating profit increased by 20.84 per cent and was Rs122.64 crore as against Rs101.49 crore in FY18. The company’s net profit for FY19 increased by 19.14 per cent to Rs61.62 crore from Rs51.72 crore gained in FY18. Based on analysis, we would recommend our reader-investors to EXIT the stock.

Avenue Supermarts Ltd. conducts business operations under the brand name DMart. The company’s IPO was listed later in March, 2017. Brands such as D Mart, D Mart Minimax, D Mart Premia, D Homes, Dutch Harbour, etc are brands owned and aperated by Avenue Supermarts.The company aims to be the lowest price retailer in its area of operations. DMart has a range of product offering which include food products such as dairy, staples, groceries, snacks, frozen products, processed foods, etc.; non-food products such as home care products, personal care products, toiletries, etc. and general merchandise & apparel products that include bed and bath, toys and games, crockery, plastic goods, garments, footwear, utensils and home appliances. Comparing the quarterly results on consolidated basis, in the first Q2FY20, Avenue Supermarts reported net sales of Rs5990.78 crore an increase of 22.44 per cent as against the net sales of Rs4892.81 crore reported in Q2FY19. This suggests that the company’s Same Store Sales Growth (SSSG) policy which includes operating expenditure, turnover per square feet and revenue run rate of newly opened stores has been encouraging and portrays a successful growth path for the future. PBDT expanded by 29.33 per cent for Q2FY20 and was Rs506.59 crore as compared to Rs391.7 crore for Q2FY19. For the Q2FY20 the net profit increased by 47.54 per cent and was recorded to be Rs322.63 crore when compared to Rs218.67 crore recorded for Q2FY19. On the annual front, the company reported net sales of Rs20004 crore for FY19 which is an increase by 33.07 per cent when compared to Rs15033.20 crore for FY18. For FY19, the PBDT showed an increase of 19.95 per cent to be Rs1634.43 crore compared to Rs1422.13 crore for FY18. This resulted in the company gaining a net profit of Rs902.46 crore in FY19 which is significant rise by 14.55 per cent compared to net profit of Rs787.80 in FY18 even as the company was facing with structural issues regarding its new store openings. As the company looks profitable with growth prospects, we recommend a HOLD.

DISA India Limited is engaged in manufacturing of foundry machinery, filters and machinery parts. It develops and manufactures a range of metal casting production solutions for the ferrous and non-ferrous foundry industries. The company provides integrated foundry lines which in addition to the molding technology platforms, include complete sand plants, conveyor systems, cooling drums, cleaning solutions and core machine plants. It also offers a range of equipment to cover all stages of the process, such as cleaning, cooling, homogenizing and mixing as well as complete in-line and tower-type sand plant. It offers over two types of filters such as cassette type dust collectors and cartridge type filters. On the consolidate financial front, for the second quarter of FY20, the company reported net sales of Rs59.66 crore an decrease of 23.20 per cent from the net sales of Rs77.68 crore for the corresponding quarter of the previous fiscal year. PBDT reduced by 19.58 per cent for the second quarter of FY20 and was Rs11.17 crore as compared to Rs13.89 crore for the second quarter of FY19. For the second quarter of FY20 the net profit decreased by 16.53 per cent and was recorded to be Rs7.93 crore when compared to Rs9.50 crore recorded for the second quarter of the previous fiscal year. On the annual front, net sales for FY19 were Rs251.67 crore which is an increase by 20.76 per cent when compared to Rs208.40 crore for FY18. The net profit for FY19 was reported to be Rs28.61 crore, thus increasing by 71.83 per cent when compared to Rs16.65 crore reported for the previous fiscal year. The company’s growth is directly linked to growth of the manufacturing industry and capacity expansion by various sectors such as automobile, agriculture, infrastructure and engineering goods. With automation as an emerging opportunity for the company, it can reduce expenses and risks related to labor at foundries. Hence, we recommend a HOLD.