Query Board

RAYMOND

Raymond is a diversified group with majority business interests in textile and apparel sectors as well as presence across diverse segments. Looking at the financial performance of Raymond, on a consolidated quarterly basis the net sales and operating income declined by 34.05 per cent at Rs1,243.44 crore in Q3FY21 from Rs1,885.43 crore in Q3FY20. The operating profit decreased by 30.44 per cent at Rs156.91 crore in Q3FY21 in comparison with Rs225.58 crore in Q3FY20. The net profit substantially decreased by 71.19 per cent at Rs10.82 crore in Q3FY21 as compared to net profit of Rs37.56 crore in Q3FY20. On an annual basis, the net sales were down by 1.52 per cent in FY20 at Rs6,482.37 crore as against Rs6,582.28 crore recorded in FY19. The operating profit decreased by 12.88 per cent at Rs611.74 crore in FY20 as compared to Rs702.15 crore in FY19. FY20 recorded net profit of Rs50.15 which was 72.56 per cent higher than Rs182.77 crore in FY19. Liquidity strengthened compared to September 2020 and March 2020 levels. There was net debt reduction by Rs234 crore on a quarter-on-quarter basis driven by focused working capital management and cost rationalisation. Hence, predicting faster recovery of the company from the pandemic and continued growth in the future, we recommend investors to HOLD the stock. 

ALKYL AMINES CHEMICALS

Alkyl Amines Chemicals deals in specialty chemicals. The company is involved in the manufacture of organic and inorganic chemical compounds and has a presence in both domestic and international markets. Analysing the financial performance of Alkyl Amines Chemicals, on a consolidated quarterly basis the net sales and operating income declined by 1.13 per cent at Rs234.77 crore in Q3FY21 from Rs237.45 crore in Q3FY20. The operating profit jumped by 75.58 per cent at Rs70.20 crore in Q3FY21 in comparison with Rs39.98 crore in Q3FY20. The net profit significantly increased at Rs49.21 crore in Q3FY21 as compared to net profit of Rs17.55 crore in Q3FY20. On the annual front, the net sales increased by 17.31 per cent in FY20 at Rs992.88 crore as against Rs846.40 crore recorded in FY19. The operating profit surged up by 58.13 per cent, reflecting at Rs263.54 crore in FY20 as compared to Rs166.66 crore in FY19. FY20 recorded a net profit of Rs196.93 crore as compared to Rs82.11 crore in FY19. Alkyl Amines Chemicals possesses a wide palette of over 100+ products which are developed in-house. It is a globally leading manufacturer of various specialty amines. While Asia promises to be an attrac-tive market for specialty chemicals, India appears to offer a growing opportunity for key players like Alkyl Amines Chemi-cals. Hence, we recommend investors to HOLD the stock. 

INDIA GLYCOLS

India Glycols Limited (IGL) is a leading company which manufactures green technology-based bulk, specialty and performance chemicals as well as natural gums, spirits, industrial gases, sugar and nutraceuticals. Its flagship chemicals’ business manufactures ethylene oxide and derivatives. The company poses itself to be one of a kind using the molasses-ethyl, alcohol-ethylene ‘green route’. Also, other than chemicals, India Glycols has diversified into natural active pharmaceuticals and nutraceuticals with Ennature Biopharma, a spirit’s division and Shakumbari Sugar.

Looking at the financial performance of IGL, on a consolidated quarterly basis the net sales and operating income increased by 18.51 per cent at Rs1,826.83 crore in Q3FY21 from Rs1,541.54 crore in Q3FY20. The operating profit rose by 6.43 per cent at Rs96.22 crore in Q3FY21 in comparison with Rs90.41 crore in Q3FY20. The net profit increased by 10.11 per cent at Rs29.63 crore in Q3FY21 as compared to Rs26.91 crore in Q3FY20. On the annual front, the net sales were up by 16.71 per cent in FY20 at Rs5,972.65 crore as against Rs5,117.40 crore in FY19. The operating profit declined by 7.63 per cent at Rs400.70 crore in FY20 as compared to Rs433.80 crore in FY19. FY20 recorded net profit of Rs115.07, 13.85 per cent lower than Rs133.57 crore in FY19.

IGL traditionally looks to leverage the export potential of products. The company has therefore initiated the process of being in line with emerging global trends and has established facilities and operations that are in compliance with global good manufacturing practices. In this critical pandemic situation, the company has identified new growth areas and introduced new products such as hand sanitizers and disinfectants. In addition, multiple initiatives have been taken by IGL to develop more green products to cater to the rising demand of environment-friendly surfactants and specialty chemicals based on renewable resources. Hence, predicting positive prospects for the company we recommend investors to BOOK PARTIAL PROFITS(BPP) in this stock. 

STATE BANK OF INDIA

State Bank of India (SBI), a Fortune 500 company, is an Indian multinational, public sector banking and financial services’ statutory body headquartered in Mumbai. It operates with 25 per cent market share and has its footprint globally, operating across various time zones through 233 offices in 32 foreign countries. On the quarterly front, the net interest earned by the bank in the third quarter of FY21 came in at Rs66,734 crore as against Rs67,692 crore in the corresponding quarter of the previous fiscal, a decrease of 1.41 per cent.

The total income in Q3FY21 was Rs28,820 crore, an increase of 3.75 per cent from Rs27,779 crore in Q3FY20. The profit after tax declined by 6.93 per cent to reach Rs5,196 crore in Q3FY21 from Rs5,583 crore in Q3FY20. For Q3FY21 the GNPA percentage was 4.77 per cent as compared to 6.94 per cent in Q3FY20. The CRAR ratio in Q3FY21 was 14.50 per cent and in Q3FY20 it was 13.73 per cent. Net interest earned by the bank in FY20 was Rs269,851.66 crore, an increase of 6.53 per cent from Rs253,322.17 crore in FY19. The total income earned by the bank in FY20 was Rs368,010.64 crore, an increase of 11.28 per cent from Rs330,687.35 crore earned in the previous fiscal. The profit after tax in FY20 significantly increased to reach Rs18,176.83 crore as against Rs3,069.07 in FY19.

The bank reported GNPA ratio of 6.15 per cent for FY20 and 7.53 per cent for FY19. In FY20, the CRAR ratio was 13.06 per cent whereas in FY19 it was 12.72 per cent. In today’s scenario, the retail credit growth is back to the pre-pandemic levels at 15.47 per cent YoY. The restructuring applications at Rs18,125 crore is also well within guidance. The bank has also increased digital customer on-boarding and has added 41 per cent of retail asset accounts and 60 per cent of liability customers through digital channels in Q3FY21. Predicting a robust financial performance by SBI going forward, we recommend investors to BUY the stock

SUN PHARMACEUTICAL INDUSTRIES

Sun Pharmaceutical Industries Limited is a pharmaceutical company, ranked No. 1 and holds approximately 8.2 per cent market share in the over Rs145,000 crore Indian pharmaceutical market as per AIOCD AWACS MAT Decem-ber 2020 report. The company’s business segments include US’ sales, Indian branded generics, emerging markets, global consumer healthcare and active pharmaceutical ingredients (APIs). The manufacturing units are situated in India, the United States and Brazil.

Considering the financial performance of Sun Pharmaceutical India, on a consolidated quarterly basis the net sales and operating income increased by 8.36 per cent at Rs8,836.78 crore in Q3FY21 from Rs8,154.85 crore in Q3FY20. The operating profit jumped by 38.74 per cent at Rs2,721.09 crore in Q3FY21 in comparison with Rs1,961.28 crore in Q3FY20. The net profit significantly increased by 87.37 per cent at Rs1,918.11 crore in Q3FY21 as compared to net profit of Rs1,023.71 crore in Q3FY20. On the annual front, net sales were up by 12.98 per cent in FY20 at Rs32,837.50 crore as against Rs29,065.91 crore in FY19. The operating profit inched up by 3.99 per cent at Rs7,625.74 crore in FY20 as compared to Rs7,333.08 crore in FY19.

FY20 recorded a net profit of Rs4,186.79, 30.46 per cent, higher than Rs3,209.32 crore in FY19. The company has repaid debt of USD 490 million in 9MFY21 compared to the debt as of March 31, 2020. In Q3FY21 the company launched 27 new products in the Indian market. The company has recorded cumulative research and development expenditure of over Rs18,700 crore to date. Recently, the company expanded its sales force strength with well-trained and scientifically-oriented sales representatives with strong performance track record in order to enhance geographical and doctor reach and improve its brand focus. With a strong financial performance supported by a robust business environment in sight, we recommend investors to HOLD the scrip.

GAIL (INDIA)

GAIL (India) Ltd. is an integrated energy company operating in the hydrocarbon sector. The company is primarily engaged in gas marketing and serves in the areas of transportation through pipeline to electric power generation, transmission and distribution units. The company has over 12,400 km of network for gas transmission and marketing. It holds 7.5 per cent domestic market share in the petrochemicals segment. GAIL (India) has established 5 LHC processing plants for liquid hydrocarbons. Besides, it also has 118 MW of wind power capacity and 12.3 MW of solar power capacity.

Looking at the financial performance of GAIL (India), on a consolidated quarterly basis the net sales and operating income declined by 12.39 per cent at Rs15,680.62 crore in Q3FY21 from Rs17,898.16 crore in Q3FY20. The operating profit jumped by 4.07 per cent at Rs2,463.77 crore in Q3FY21 in comparison with Rs2,367.32 crore in Q3FY20. The net profit substantially increased by 39.56 per cent at Rs1,416.65 crore in Q3FY21 as compared to net profit of Rs1,015.10 crore in Q3FY20. On an annual basis, net sales were down by 4.81 per cent in FY20 at Rs72,567.70 crore as against Rs76,234.17 crore in FY19. The operating profit decreased by 2.85 per cent at Rs10,571.44 crore in FY20 as compared to Rs10,881.83 crore in FY19.

FY20 recorded a net profit of Rs7,268.04, which was 25.8 per cent higher than Rs5,777.57 crore in FY19. The company aims to expand its capital expenditure to Rs9,600 crore in FY20-21 as against Rs8,300 crore in FY18-19. In FY19-20, GAIL (India) embarked upon a journey of adoption of Green Co. rating. This rating helps in making products, services and operations greener. It is expected that varied estimates on oil, though oil usage for transport, will peak by 2025-2030. Gas is known to be the last fossil fuel to peak and remains longer than other fossils in all estimates. The company portrays a healthy financial and operational performance and is expected to continue the same in future years. Hence, we recommend investors to ACCUMULATE shares of the company. 

(Closing price as of Mar 23, 2021)