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MOIL Limited is engaged in the exploration, exploitation and marketing of manganese ore and products.
The company operates through three segments namely mining, manufacturing and power generation. The company also has around two wind farms of over 4.8 MW and of around 15.2 MW located at Nagda Hills and Ratedi Hills respectively in Madhya Pradesh. On the consolidated financial front, in Q2FY20, the company reported an decrease in net sales by 27.25 per cent to be Rs 253.11 crore compared to net sales of Rs 357.77 crore in Q2FY19. For Q2FY20, the PBT decreased by 40.57 per cent to Rs 104.44 crore from Rs 175.79 crore in Q2FY19. On the other hand, net profit decreased by 15.72 per cent to Rs 88.59 crore in Q2FY20 as compared to Rs 105.11 crore reported in Q2FY19. On an annual basis, net sales grew by 8.86 per cent to Rs 1,440.66 crore in FY19 from Rs 1,323.46 crore in FY18. The company’s PBT increased by 11.09 per cent to Rs 719.75 crore in FY19 from Rs 647.92 crore reported in the previous fiscal year. In FY19, the net profit was recorded at Rs 473.88 crore, a 12.30 per cent increase from Rs 421.99 crore reported in FY18. The company’s strong business model and dominant position in the domestic market supports a positive bearing for the stock. Also, the Indian manganese ore demand is set to be supported by better fundamentals for the domestic steel industry. Thus, recommend a HOLD.
Gujarat Gas Limited was formerly known as GSPC Distribution Networks Limited which is engaged in the natural gas business in Gujarat. It mainly has business operations related to city gas distribution also includes sale, purchase, supply, distribution, transport and trading in natural gas, Compressed Natural Gas (CNG), Liquefied Natural Gas (LNG), Liquefied Petroleum Gas (LPG), etc.
On the consolidated financial front, the company has reported an increase of 27.58 per cent in net sales to Rs 2,569.25 crore for Q2FY20 as compared to net sales of Rs 2,013.83 crore for Q2FY19. For Q2FY20, the Profit Before Depreciation and Tax (PBDT) doubled to reach Rs 341.55 crore from Rs 130.12 crore for Q2FY19. Also, in Q2FY20, the company posted a significant rise in the net profit gained of Rs 517.25 crore from Rs 41.07 crore gained in Q2FY19. On the annual front, the net sales increased by 25.60 per cent to Rs 7962.48 crore for FY19 from Rs 6339.35 crore for FY18. The PBDT of the company had increased by 20.05 per cent to Rs 882.14 crore in FY19, as compared to Rs 734.84 crore of FY18. In FY19, the company’s net profit registered a growth by 43.19 per cent to Rs 416.96 crore, from Rs 291.19 crore gained in FY18. Based on the company’s positive financial performance, we recommend a HOLD.
Inox Wind Limited is an integrated wind energy solutions provider which is engaged in the manufacturing of Wind Turbine Generators (WTGs). The company provides Engineering, Procurement and Commissioning (EPC), Operations and Maintenance (O&M), and Common Infrastructure Facilities services. Additionally, it provides wind energy solutions and servicing to Independent Power Producer (IPPs) utilities, Public Sector Undertaking (PSUs), corporates and retail investors. It primarily manufactures blades, tubular towers, hubs and nacelles.
On a consolidated financial front, the company posted net sales of Rs 138.61 crore in the second quarter of the current fiscal year, which is a decrease of 68.26 per cent from Rs 436.66 crore net sales reported in the second quarter of the previous fiscal year. The company reported an operating loss of Rs 70.15 crore reported in the September ended quarter of FY20 as against an operating profit of Rs 2.44 crore reported in the September ended quarter of FY19. Similarly, the company reported a net loss of Rs 45.6 crore for the second quarter of FY20 as against a net profit of Rs 1.52 crore reported in the second quarter of the last fiscal year. On the annual front, the net sales saw a significant increase to Rs 1,437.44 crore in FY19 from net sales of Rs 479.84 crore reported in FY18. The company incurred an operating loss of Rs 61.87 crore in FY19 as compared to an operating loss of Rs 280.46 crore in FY18. The net loss gained in FY19 was Rs 39.74 crore as against a net loss of Rs 187.59 crore reported in FY19.
Currently, the company’s order book looks strong with a string of new orders that it has received during the fiscal year to supply, erect and commission wind power projects. The Indian government has been focussing on incentivising renewable energy sector to encourage the developers for implementing advanced technologies in renewable energy projects which will further increase the demand. Hence considering government initiatives we recommend our investor-readers to BUY.
Maruti Suzuki India Limited is a holding company engaged in the manufacturing, purchasing and sale of motor vehicles, components and spare parts (automobiles). The other activities of the company comprise facilitation of pre-owned car sales, fleet management and car financing. Its geographical segments include the domestic segment, comprising sales to customers located in India, and the overseas segment, comprising sales to customers located outside India. It has around five plants, located in Palam Gurgaon Road and Manesar Industrial Town located in Gurgaon, Haryana, with an installed capacity of over 1.5 million vehicles per year.
On a consolidated financial front, in Q2FY20, the company reported sales of Rs 16,123.2 crore, a decrease of around 25.20 per cent as compared to the net sales of Rs 21,553.7 crore reported in Q2FY19. There was a 50.63 percent decrease in PBT from Rs 3,251 crore reported in Q2FY19 to Rs 1,604.9 crore reported in Q2FY20. Similarly, net profit decreased by 38.99 per cent to Rs 1,391.1 crore in Q2FY20 as compared to Rs 2,280.2 crore reported in the same quarter of the previous fiscal year.
On the annual front, net sales FY19 have increased 3.35 per cent to Rs 83,038.5 crore from Rs 80,348.8 crore in FY18. However, PBT has fallen by around 4.86 per cent to Rs 10,623.8 crore this year as compared to Rs 11,166.9 crore from the previous fiscal year. The company’s net profit too decreased in FY19 by 2.92 per cent to Rs 7,650.6 crore from Rs 7,880.7 crore in FY18.
The dip in the company’s performance can be attributed to the demand slump in the automobile industry, high cost of vehicle ownership and uncertain macroeconomic factors. But, Maruti has increased its vehicle manufacturing target anticipating a higher demand in the fourth quarter of the current fiscal year owing to a roll-out of more cars that are compliant with BS-VI and a strong demand for its new offerings. Hence, expecting a revival in the company’s performance owing to new launches and better economic conditions, we recommend a HOLD.
The South Indian Bank Limited is engaged in providing services related to retail and corporate banking, para banking activities like debit card, third-party product distribution, along with treasury and foreign exchange business. The treasury services segment includes interest earnings on investment portfolios, gains or losses on investment operations and earnings from foreign exchange business. Corporate or wholesale banking segment mainly includes providing loans to corporate segment whereas, retail banking segment includes providing loans to non-corporate customers. The Bank operates through nearly 830 branches with around 40 extension counters and near to 1,290 automated teller machines in the country.
On the financial front, the net interest earned by the bank in the second quarter of FY20 came in at Rs 1,953.97 crore as against Rs 1,696.51 crore in the corresponding quarter of the previous fiscal, clocking a growth of 15.18 per cent. The total income in Q2FY20 was Rs 2,203.18 crore, an increase by 18.81 per cent from Rs 1,854.40 crore in Q2FY19. The profit after tax rose by 20.46 per cent to reach Rs 84.48 crore in Q2FY20 as against Rs 70.13 crore in Q2FY19. For Q2FY20, the GNPA percentage was 4.92 per cent as compared to 4.16 per cent in Q2FY19. The CRAR ratio in Q2FY20 was 12.08 per cent and in Q2FY19, it was 12.11 per cent.
On the annual front, the net interest earned by the bank in FY19 came in at Rs 6,876.52 crore, an increase of 11.04 per cent from Rs 6,192.81 crore in FY18. The total income earned by the bank in FY19 was Rs 7,602.73 crore, an increase of 8.15 per cent from Rs 7,030.06 crore earned in the previous fiscal. The profit after tax in FY19 decreased by 26.09 per cent to reach Rs 247.53 crore as against Rs 334.89 in FY18. The company reported GNPA ratio of 4.92 per cent for FY19 and 3.59 per cent for FY18. In FY19, the CRAR ratio was 12.61 per cent whereas in FY18, it was 12.70 per cent. With stabilising asset quality, better asset pricing and retail growth driven by mortgages, auto and gold loans, we recommend a HOLD.
YES Bank Limited is a private sector bank engaged in providing banking services. 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 or wholesale banking includes lending, deposit taking and other services offered to corporate customers, while the retail banking includes lending, deposit taking and other services offered to retail customers.
On the financial front, the net interest earned by the bank in the second quarter of the FY20 came in at Rs 7,382.72 crore as against Rs 7,231.14 crore in the corresponding quarter of the previous fiscal, clocking a growth of 2.1 per cent. The total income in Q2FY20 was Rs 8,347.5 crore, a decrease by 4.2 per cent from Rs 8,713.673 crore in Q2FY19. The bank incurred a net loss of Rs 629.09 crore in Q2FY20, as against a net profit of Rs 951.47 gained in Q2FY19. For Q2FY20, the GNPA percentage was 7.39 per cent as compared to 1.62 per cent in Q2FY19. The CRAR ratio in Q2FY20 and Q2FY19 was 16.3 per cent.
On the annual front, the net interest earned by the bank in FY19 came in at Rs 29,623.80 crore, an increase of 46.16 per cent from Rs 20,268.59 crore in FY18. The total income earned by the bank in FY19 was Rs 34,299.28 crore, an increase of 34.18 per cent from Rs 25,561.75 crore earned in the previous fiscal year. The profit after tax on annual basis fell by 59.62 per cent to reach Rs 1,709.27 crore as against Rs 4,233.22 gained in FY18. The company reported GNPA ratio for FY19 to be 3.22 per cent and 1.28 per cent for FY18. In FY19, the CRAR ratio was 16.5 per cent whereas in FY18, it was 18.4 per cent. The bank has witnessed unstable situations due to a lack in clarity of the investors and promoter issues which have negatively impacted its stocks. Hence, we would recommend our investor and readers to AVOID.