QueryBoard
Camphor & Allied Products Ltd is India’s largest manufacturer of variety of terpene chemicals and other speciality aroma chemicals.
The company’s vast product range includes synthetic camphor, terpineol, pine oils, resins, astrolide, dihydromyrcenol, pharmaceuticals, soaps & cosmetics, rubber & tyre, paints & varnishes and many more. On the consolidated financial front, the net sales of the company fell by 3.77 per cent to Rs 204.16 crore in Q2FY20 from Rs 212.16 crore posted in Q2FY19. The Profit before Interest, Depreciation and Taxes (PBIDT) came in at Rs 28.84 crore in Q2FY20, reducing by 18.43 per cent from Rs 35.36 crore, reported in the same quarter of the previous year. The Profit after Tax (PAT) on the other hand, increased by 48.06 per cent to Rs 26.72 crore when compared to net profit of Rs 17.98 crore gained in Q2FY19. On the annual front, the company reported net sales for FY19 at Rs 754.69 crore, posting an increase of 49.14 per cent from Rs 506.03 crore posted in FY18. The PBIDT came in at Rs 114.69 crore in FY19 as compared to Rs 64.75 crore in FY18, representing a 77.13 per cent growth. The PAT was Rs 57.14 crore in FY19, signifying a substantial growth of 128.74 per cent, as compared to Rs 24.98 crore in FY18. On the basis of improving financials and growth potential, we recommend our investor-readers to BUY
Cyient is a company engaged in providing software-enabled engineering and Geographic Information System (GIS) services. Its business segments include Data & Network Operations (DNO), Engineering, Manufacturing, Industrial Products (EMI) and Product Realisation (PR). On a consolidated quarterly basis, net sales fell by 2.37 per cent to Rs 1158.9 crore in Q2FY20, from Rs 1,187 crore in Q2FY19. PBT reported for Q2FY20 was Rs 125.4 crore, a decrease of 30.68 per cent from Rs 180.9 crore in Q2FY19. Net profit reported for Q2FY20 was Rs 98.5 crore, falling 22.5 per cent from Rs 127.1 crore in Q2FY19. On an annual basis, net sales grew by 17.87 per cent to Rs 4,617.5 crore in FY19 from Rs 3,917.5 crore in FY18. PBT for FY19 was reported at Rs 619.8 crore, up by 14.54 per cent from Rs 541.1 crore in the previous fiscal year. Net profit grew by 18.36 per cent to Rs 477.1 crore in FY19 from Rs 403.1 crore in FY18. Cyient has been struggling with stress in its service business which saw a muted growth in the latest quarter owing to the monsoon season, thus this sector indicates a pick-up growth in Q4FY20, and is also expected to boost revenue. CYL’s cost optimisation initiatives are bearing fruit and are expected to strengthen margins in FY21 where the full benefits of improved operational efficiency will be visible. Thus, we recommend a HOLD.
Ashoka Buildcon (ABL) is an infrastructure development company engaged in construction and maintenance of roads and supporting services to land support-operation of toll roads. The company operates through three segments, namely, construction and contract-related activities, Build, Operate and Transfer (BOT) Projects and sale of goods. Its construction and contract-related activities segment consist of the execution of construction projects to provide solutions in civil and electrical engineering to core/infrastructure sectors. Its BOT activity relates to the execution of projects on a long-term basis comprising developing, operating and maintaining the infrastructure facility. The sales of goods segment deal with the selling of Ready Mix Concrete (RMC) and Plain Cement Concrete (PCC) poles. The company has projects under construction in Tamil Nadu, Karnataka, Odisha and West Bengal.
On a consolidated quarterly basis, net sales grew by 3.27 per cent to Rs 1,037.8 crore in Q2FY20 from Rs 1,004.9 crore in Q2FY19. PBT reported for Q2FY20 was Rs 56.1 crore, up by 78.10 per cent from Rs 31.5 crore in the same quarter for the previous fiscal year. Q2FY20 saw a net profit of Rs 11.5 crore as against a net loss of Rs 3.7 crore in Q2FY19. On the annual front, net sales saw an increase of 36.83 per cent to Rs 4,930.12 crore in FY19 from Rs 3,603 crore in FY18. The company reported an operating profit of Rs 130.62 crore in FY19, as against an operating loss of Rs 34.94 crore in FY18. The company incurred a net loss of Rs 40.28 crore in FY19, as well since it reported a net loss of Rs 118.65 crore in FY18.
The company is well-positioned to exploit upcoming growth opportunities offered by India’s roads sector, especially from Rs 600 billion- Rs 700 billion bid pipelines expected to flow from NHAI in the second half of FY20. The company also plans to participate in the upcoming bids for the Ganga Expressway and Defence Corridor in Uttar Pradesh. We can expect ABL’s execution to pick-up pace owing to its healthy order book and opportunities ahead. Thus, we recommend a HOLD.
NBCC provides civil engineering construction services and operates through three segments, namely, Project Management Consultancy (PMC), Real Estate Development, and Engineering, Procurement and Construction (EPC). The company offers management and consultancy services for civil construction projects, including residential and commercial complexes, re-development of government colonies, education and medical institutions, infrastructure project roads, water supply systems, storm-water systems and water storage solutions.
On a consolidated quarterly basis, net sales reported for Q2FY20 was Rs 1,656.32 crore, down by 19.73 per cent from Rs 2,063.42 crore in Q2FY19. PBT was reported at Rs 51.25 crore in Q2FY20, decreasing by 56.25 per cent from Rs 117.04 crore in Q2FY19. The company reported a net loss of Rs 90.91 crore in Q2FY20 as against a net profit of Rs 79.51 crore for the same quarter in the previous fiscal year. This decrease in net profit was largely on account of deferred tax since migrating to the new tax regime. On the annual front, the net sales grew by 16.83 per cent to Rs 9,806.38 crore in FY19 from Rs 8,393.87 crore in FY18. PBT decreased by 2.63 per cent to Rs 568.9 crore in FY19 from Rs 584.24 crore in the previous fiscal year. Similarly, net profit decreased by 1.03 per cent to Rs 391.63 crore, from Rs 395.72 crore in FY18.
NBCC enjoys a strong order book position with a consolidated order book of around 8,000 crore as of Q2FY20. The company has also signed a MoU with the Andhra Pradesh government. As per this, NBCC would sell land parcels in 30 districts on behalf of the AP government and conduct infrastructure work and monetisation of the land. With regards to its Amrapali project, the Supreme Court as given the company the approval for tenders worth Rs 700 crore for the completion of 1,000 houses. On the basis of its strong order book and improving order execution, the immediate outlook for the company looks positive. Thus, we recommend a HOLD.
Thomas Cook India (TCIL) is a company that provides travel and travel related financial services. The services of the company include foreign exchange, corporate travel, insurance, passport services, gift cards, hotel bookings, flight ticket bookings, tour packages and electronic business. The company provides various insurance plans which include overseas travel insurance, Asia travel insurance, senior citizen travel insurance and student travel insurance.
On a consolidated quarterly basis, net sales were reported at Rs 1,700 crore in Q2FY20, an increase of 6.26 per cent over Rs 1,599.88 reported in Q2FY19. The company incurred an operating loss of Rs 3.42 crore in Q2FY20 similar to an operating loss incurred of Rs 11.86 crore in Q2FY19. Net profit reported for Q2FY20 was Rs 4.26 as against a net loss of Rs 6.24 crore in Q2FY19.
On an annual front, the company saw a decrease in net sales of 41.30 per cent in FY19 to Rs 6,603.25 crore from Rs 11,248.34 crore in FY18. PBT fell by 98.19 per cent to Rs 110.28 crore from Rs 6,090.83 crore in FY18. However, this drastic decrease was mostly on account of an exceptional item amounting to Rs 5,826.56 crore (sale of stake in subsidiary), realised in the previous fiscal year. Similarly, net profit fell by 98.55 per cent to Rs 88.83 crore in FY19 from Rs 6,131.39 crore in FY18.
The collapse of the 178-year-old holiday major, Thomas Cook (UK), led many to believe that TCIL was related to the UKbased giant. However, TCIL has been a separate entity since 2012, since it was acquired by Fairfax Financial Holdings. Due to this misconception, TCIL’s shares were affected despite the company’s clarifications to the exchanges. TCIL’s revenue was affected in the current fiscal year due to political unrest and uncertainty in Hong Kong, haze and heat across Singapore and Malaysian peninsula and poor-economic sentiment across Europe due to Brexit. However, we can expect recovery as these issues are resolved. Thus, we recommend a HOLD.
Ujjivan Small Finance Bank (USFB) is a small finance bank which is promoted by Ujjivan Financial Services (UFSL), an NBFC that began operations in 2005. UFSL, after obtaining final approval from RBI on November 11, 2016, to establish and carry on business as a small finance bank, transferred its business undertaking, comprising of its lending and financing business to USFB, which commenced its operations from February 1, 2017. USFB entered the capital market with its Initial Public Offering (IPO). The IPO consists of a fresh issue, aggregating up to Rs 750 crore. By the end of FY19, USFB spread across 24 states and union territories.
The gross loan book of the bank has surged from Rs 6,383.98 crore at the end of March 2017 to Rs 11,048.59 crore at the end of March 2019 and doubled to Rs 12,863.65 crore at the end of September 2019, showing a CAGR of 32 per cent. The growth was derived from affordable housing loans and MSE, which grew at a CAGR of 190 per cent and 224 per cent, respectively. The deposits base has also increased from Rs 206.41 crore, ending March 2017, to Rs 7,379.44, ending March 2019, and Rs 10,129.85 crore, ending September 2019. The share of retail deposits has increased from 3.15 per cent, ending March 2017, to 41.93 per cent, ending September 2019. CASA to total deposits ratio has improved from 1.57 per cent, ending March 2017, to 10.63 per cent, ending March 2019, and was 11.87 per cent, ending September 2019. The bank has posted a net profit of Rs 6.86 crore in FY2018 and Rs 199.22 crore in FY2019, while net profit stood at Rs 187.11 crore for H1 of FY 2020.The bank has a healthy capital adequacy ratio of 18.84 per cent with a Tier I capital ratio of 18.16 per cent end September 2019.
Its CASA profile remains low at about 12 per cent (9 per cent of AUM) when compared against its peers’ range of 20-35 per cent (12-25 per cent of AUM), mainly due to its early-stage strategy focusing on MFI customers for liability. The bank has gradually diversified into other products. Hence we recommend a HOLD.