Query Board
KALYANI INVESTMENTS
Can I buy Kalyani Investments? What would you suggest?
- Manoj Singh
Kalyani Investment Company Limited is a non-deposit taking core investment company. The company offers investments and loans. The company holds an investment portfolio consisting of listed and unlisted companies, which are in various sectors, including forging, steel, power generation, chemicals and banking. On the financial front, the company posted revenue of Rs 18.31 crore for Q2FY19. The profit before depreciation and tax (PBDT) for the second quarter of FY19 came in at Rs 17.88 crore, witnessing a jump of 13 per cent from Rs 15.17 crore YoY. The net profit of the company has also increased by 13 per cent and came in at Rs 17.80 crore in Q2FY19 as against Rs 15.11 crore, which was posted in the corresponding quarter of the previous year. On the annual front, the company posted its net profit at Rs 15.42 crore in FY18, an increase of almost 40 per cent from Rs 11.99 crore in FY17. The PBDT posted by the company in FY18 stood at Rs 15.57 crore, witnessing a growth of approximately 30 per cent from Rs 12.08 crore. On the valuation front, the company’s return on equity (RoE) stood at 10.59 per cent and the return on capital employed (RoCE) stood at 5.60 per cent. The company is available at a PE multiple of 16.82x. Taking into consideration the financials, we recommend a HOLD to our investor readers as the company is likely to post similar financials in the future
UNITECH
I bought 5000 shares of Unitech at the price of Rs 4.25 . Please suggest whether to hold or sell..
- Ganeshveer
Unitech Limited is engaged in real estate activities. The scope of the company’s business includes developing residential and commercial properties in India and selling the immovable properties to customers. Its segments include real estate and related activities, property management, hospitality, transmission towers, investment activities and others. Its real estate development includes development of mini cities/ townships, construction of residential and commercial complexes, including shopping malls and various types of dwelling units. The related construction activities include construction contracts of highways, roads, powerhouses, manufacturing of transmission lines, refineries, hotels, hospitals and various types of other buildings/structures. On the financial front, on a standalone basis, the company posted a 23 per cent drop in net sales at Rs 94.62 crore in Q2FY19 from Rs 122.72 crore in the same quarter of the previous year. The net loss of the company has widened to Rs 130.88 crore in Q2FY19 as against Rs 5.99 crore in the same quarter of the previous year. On the annual front, the revenue of the company posted in FY18 stood at Rs 1,492.50 crore, up by 68 per cent from Rs 889.34 crore posted in FY17. The net loss of the company has increased on an annual basis, as in FY18 it was Rs 229.68 crore versus Rs 190 crore loss in FY17. Seeing the decline in financials, we urge you to EXIT.
AVANTI FEEDS
I bought Avanti Feeds at Rs 638.27 for a one year target, What should I do? Should I hold or sell?
- Siddendra
Avanti Feeds Limited is a manufacturer of prawn and fish feeds and a shrimp processor and an exporter. The company’s focused products are shrimp feed and processed shrimp. Its segments are shrimp feed and wind mills. It manufactures shrimp feed and markets it to farmers, which is used in aqua culture to grow shrimp. Shrimps are purchased from the farmers and are further processed and exported. It has installed over four mills of over 3.2 MW capacity at Chitradurga, Karnataka. The power generated from wind mills is sold to Bangalore Electricity Supply Company Limited under a power purchase agreement. The company has over three prawn and a fish feed manufacturing units in Kovvur, Vemuluru in West Godavari district, Andhra Pradesh, and Pardi in Valsad district, Gujarat, in India. It produces feeds catering to the Indian prawn and fish farmers
On the financial front, on a consolidated basis, the net sales of the company for the latest quarter ending September, Q2FY19, has fallen by 11 per cent to Rs 754.55 crore as against Rs 854.02 crore in the corresponding quarter of the previous year. The profit before interest, depreciation and tax (PBIDT) has plunged by 61 per cent to reach Rs 72 crore in Q2FY19 from Rs 186.63 crore in Q2FY18. The profit after tax (PAT) has dipped by 56 per cent at Rs 54.43 crore in Q2FY19 while in the same quarter of the previous year it was Rs 125.68 crore.
On the annual front, the net sales has risen by 30 per cent in FY18 to Rs 3392.90 crore as against Rs 2639.35 crore in the previous fiscal. The PBIDT of the company has doubled and came in at Rs 732.73 crore in FY18 as against Rs 355.76 crore in FY17. The PAT has surged over 100 per cent to reach Rs 465.36 crore in FY18 versus Rs 226.56 crore in FY17. On the valuation front, the company is available at a PE of 16.96 per cent on its TTM earnings.
Looking at the abovementioned factors, we believe that recovery may be seen from FY20 and therefore HOLD till the end of FY21
ASHOK LEYLAND
I have 600 shares of Ashok Leyland bought at Rs.148.83. Should I hold or sell? My investment horizon is 5 years.
- P.P.Damodaran
Ashok Leyland is engaged in commercial vehicles and related components. It is engaged in manufacturing and trading in medium and heavy commercial vehicles, light commercial vehicles, passenger vehicles, automotive aggregates, vehicle financing and engineering design services through its subsidiaries. It offers a range of 18-seater to 80-seater buses under categories such as city application and electric buses. It also produces a range of trucks, which include long haul trucks, mining and construction trucks, and distribution trucks. It designs, develops and manufactures defence vehicles for armed forces. It offers power solutions for electric power generation, agricultural harvester combines, earth moving and construction equipment, and marine and other non-automotive applications.
On the financial front, on a standalone basis, the net sales of the company has gone up 24.58 per cent in Q2FY19 and stood at Rs 7369.71 crore as against Rs 5915.41 crore in the same quarter of the previous year. The profit before interest, depreciation and tax (PBIDT) has surged 32.30 per cent to reach Rs 805.93 crore in the second quarter of FY19 as against Rs 609.15 crore in the corresponding quarter of the previous year. The profit after tax (PAT) has jumped 37 per cent YoY and stood at Rs 459.57 crore in Q2FY19, while in the same quarter of the previous year it was Rs 334.26 crore.
On the annual front, the net sales have risen by 30 per cent to Rs 26,247.91 crore in FY18 from Rs 20,140.13 crore in FY17. The PBIDT of the company has increased by 24 per cent and came in at Rs 2929.14 crore in FY18 versus Rs 2354.20 crore in FY17. The PAT has expanded by 28 per cent and came in at Rs 1562.59 crore in FY18 as against Rs 1223.08 crore in FY17. The return on equity (RoE) stood at 23.67 per cent and the return on capital employed (RoCE) stood at 28.74 per cent.
We would recommend a HOLD on the back of strong financial numbers and growth of the company.
RANE HOLDINGS
Is it a good time to buy Rane Holdings?
- Alokmay Jana
Rane Holdings Limited is a holding company engaged in investing in Rane group companies that are engaged in the manufacturing, supplying and marketing of auto components for transportation industry. The company’s principal products include dividend income, trademark fees, information technology support service and management consultancy service. It serves to various sections of automobile industry, including passenger cars, light commercial vehicles, medium and heavy commercial vehicles, two-wheelers, three-wheelers, multi-utility vehicles and farm tractor. It also focuses on non-automotive portfolio such as aerospace and defence. Its product portfolio includes steering gear products, suspension and steering linkage products, die casting products, engine valve, valve guides, tappets, brake linings, disc pads and clutch facings, among others.
On the financial front, the revenue of the company in Q2FY19 stood at Rs 51.11 crore, a jump of 44 per cent from Rs 35.41 crore in the same quarter of the previous year. The profit before interest, depreciation and tax (PBIDT) of the company in the second quarter of FY19 came in at Rs 7.96 crore, witnessing an increase of 11.04 per cent as against Rs 7.17 crore in the corresponding quarter of the previous year. The profit after tax (PAT) in Q2FY19 surged by over 50 per cent to Rs 35.39 crore as against Rs 22.45 crore in Q2FY18.
On the annual front, the net sales of the company in FY18 stood at Rs 95.56, increasing by 36 per cent as against Rs 70.88 crore in FY17. The PBIDT of the company however fell by 6 per cent in FY18 to reach Rs 62.40 crore as against Rs 66.94 crore in FY17. The PAT has remained stable as there is only a marginal drop of 2 per cent in FY18 at Rs 48.79 crore against Rs 49.80 crore in FY17. On the valuation front, the company is available at a PE multiple of 28.69 on its TTM earnings. The return on equity (RoE) stood at 13.34 per cent and the return on capital employed (RoCE) stood at 15.77 per cent. Thus, we recommend a HOLD to our reader-investors.
DHFL
I hold 500 shares of DHFL since Jan 2016. Is it risky to hold the stock after the recent fall?
- Bandopadhyay
Dewan Housing Finance Corporation Limited is a deposit-taking housing finance company. The Company focuses on providing financing products to the lower and middle-income segments in India, primarily in Tier II and Tier III cities, and towns. It offers Housing Loan and NonHousing Loans. It offers loans for construction or purchase of residential property and loans against property. It offers a variety of home loan products, such as home loan, home extension loan, home improvement loan, plot loan, mortgage loan, small and medium enterprises (SME) loan, project loan and nonresidential property loan.
On the financial front on a standalone basis, the net sales of the company has gone up 33 per cent on a YoY basis in Q2FY19 to reach Rs 3515.66 crore from Rs 2627.85 crore in the same quarter of the previous year. The profit before interest, depreciation and tax stood at Rs 3,081.37 crore in Q2FY19 while in Q2FY18 it was Rs 2,346.25 crore therefore posting 31 per cent hike. The profit after tax (PAT) has surged 52 per cent and came in at Rs 438.74 crore in Q2FY19 versus Rs 287.78 crore in the same quarter of the previous year.
On the annual basis, the net sales in fiscal year 2019 stood at 10,450.16 crore, jumping by 18 percent from Rs 8,851.76 crore in the previous fiscal. The profit before interest, depreciation and tax (PBIDT) of the company in FY18 has expanded by 15 per cent and came in at Rs 9,500.43 crore as against Rs 8254.63 crore in FY17. However, the PAT for FY18 stood at Rs 1172.13 crore in FY18 from Rs 2986.45 crore in the previous fiscal, falling by over 60 per cent.
On the valuations front, the company’s return on equiry (RoE) stands at 13.97 per cent and return on capital employed (RoCE) was at 9.78 per cent. The company is available at a PE multiple of 4.21x. We recommend a HOLD based on the confluence of the mentioned facts and also the company is likely to recover its financials in the upcoming quarters.