Oriental Aromatics is India’s largest manufacturer of variety of terpene chemicals and other speciality aroma chemicals.
The company’s vast product range includes synthetic camphor, terpineols, pine oils, resins, astrolide, dihydromyrcenol, and several other chemicals finding applications. On the standalone financial front, the company posted net sales at Rs.211.71 crore in Q1FY20, up from Rs.147.55 crore posted in Q1FY19, thus witnessing an impressive growth of 43.48 per cent. The profit before interest, depreciation and tax came in at Rs.35.93 crore in Q1FY20, posting an expansion of 55.27 per cent from Rs.23.14 crore reported in the same quarter of the previous year. The profit after tax (PAT) came in at Rs.18.55 crore in Q1FY20 as against Rs.11.06 crore in Q1FY19, posting a 67.67 per cent growth on a YoY basis. On the annual front, the company reported net sales for FY19 at Rs.754.69 crore, posting an increase of 50 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. Looking at the robust financials, we recommend our investor-readers to HOLD
Indian Oil Corporation Limited is engaged in refining business. Its business operations include sale of petroleum products, petrochemicals and other businesses. Along with the sale of gas, explosives and cryogenics, wind mill and solar power generation, and oil and gas exploration activities, the company is also involved in refining, pipeline transportation and marketing of petroleum products, exploration and production of crude oil and gas, marketing of natural gas and petrochemicals. On the consolidated financial front, in Q1FY20, the company reported net sales of Rs.152495.56 crore, an increase by 0.45 per cent compared to Rs.151813.83 crore in Q1FY19. PBT decreased by 39.57 per cent to Rs.7537.55 crore in Q1FY20 as against of Rs.12472.27 crore in the same quarter of the previous fiscal.
The company reported net profit of Rs.3298.15 crore for Q1FY20, a decrease by 52.14 per cent compared to Rs.6891.52 crore for Q1FY19. On the annual front, the company’s net sales in FY19 were Rs.617242.84 crore, a 19.73 per cent increase over the net sales of Rs.515541.89 crore for FY18. PBDT for FY19 decreased by 19.79 per cent to Rs.33048.97 crore compared to Rs.41202.61 crore of FY18. In FY19, the company’s profit was Rs.15889.47 crore, a decrease by 26.83 per cent compared to Rs. 21715.2 crore in FY18. We recommend the reader-investors to HOLD the stock.
IDBI Bank Limited also known as Industrial Development Bank of India was primarily incorporated for providing credit and other related financial facilities for the development of the fledgling Indian industry. After LIC completed an acquisition of 51 per cent controlling stake in IDBI Bank, the bank was re-categorised as a private sector bank in 2019. IDBI Bank provides personalised banking and financial solutions to clients through its wholesale or corporate banking segment, which includes credit and deposit related services; retail banking segment, which includes priority sector lending, point of sale (POS) machines, internet and mobile banking facilities, etc. and treasury services that include trading portfolio for investments, money market operations, derivatives trading and foreign exchange operations.
On the consolidated financial front, the net interest earned by the bank in the first quarter of the FY20 came in at Rs.5097.72 crore as against Rs.5766.04 crore in the corresponding quarter of the previous fiscal, thus declining by 11.59 per cent in Q1FY20. The total income in Q1FY20 was Rs.5927.76 crore, a decrease by 8.06 per cent from Rs.6447.82 crore in Q1FY19. The bank incurred a net loss of Rs.3824.58 crore in Q1FY20 as compared with net loss of Rs.2388.01 crore in Q1FY19. The CRAR ratio in Q1FY20 was 8.14 per cent and 8.18 per cent in Q1FY19. GNPA ratio improved to 29.12 per cent in Q1FY20 from 30.78 per cent in Q1FY19.
On the annual front, the net interest earned by the bank in FY19 came in at Rs.22102.09 crore, a decrease of 4.09 per cent from Rs.23046.25 crore in FY18. The total income earned by the bank in FY19 was Rs.25637.42 crore, a decrease of 15.37 per cent from Rs.30294.31 crore earned in the previous fiscal year. The bank incurred a net loss of Rs.15012.97 crore in FY19 as against Rs.8157.1 crore in FY18. The company reported GNPA ratio for FY19 at 27.47 per cent and 27.95 per cent for FY18. In FY19, the CRAR ratio improved to 11.58 per cent from 10.41 per cent in FY18. Thus we recommend AVOID.
Prakash Industries Limited is involved in production of ferro alloys, MS TMT/MS coil and other related products, HB wire rod, and PVC pipes and sockets. Its main business segments include power, steel and PVC pipes. The company’s has large product portfolio that includes sponge iron, power, wire rod, thermo mechanically treated (TMT) bars, etc. Its manufacturing facilities are situated in Champa and Raipur in Chattisgarh. At the Raipur facility, wire rod of sizes 5.0 millimeters (mm), 5.5 mm, 6.5 mm, 7 mm, 8 mm and 10 mm and wire drawing (HB wire) of sizes 6 gauge to 14 gauge are produced. The company’s products are mainly used for various applications such as binding wire, barbed wire for fencing, armoured sealed wire for heavy electrical cables, nut bolts, nails, screws, alpine, wire ropes and wire mesh.
On the financial front, net sales of the company for Q1FY20 were Rs.825.42 crore as compared to the net sales of Q1FY119 of Rs.894.94 crore, a decrease of 7.77 per cent in Q1FY20 as compared with Q1FY19. For Q1FY20, the PBT stood at Rs.70.88 crore, a decrease of 66.24 per cent as against Rs.209.97 crore for Q1FY19. For Q1FY20, the company recorded profit of Rs.37 crore, a 76.71 per cent decrease as compared with the profit for the same quarter of the previous fiscal.
On the annual front, for FY19, the company recorded net sales of Rs.3587.51 crore, a 19.32 per cent increase when compared to the net sales of Rs.3006.67 crore for FY18. The PBT for FY19 stood at Rs.552.65 crore as against Rs.388.34 crore FY18. For FY19, there was an increase of 42.31 per cent in PBDT as against FY18. Also, the net profit recorded was Rs.539.22 crore, an increase of 39.6 per cent as compared with the net profit of Rs.386.25 crore for FY18. Recently the company demerged its PVC pipes business segment to form a separate company Prakash Pipes Limited (PPL).
Hence, we recommend SELL to our investor-readers.
Bodal Chemicals Ltd is a fast growing company in the field of manufacturing dye intermediates & dye stuffs. The products of the company include direct dyes, acid miling dyes, metal complex dyes acid, VS based dyes, H dyes, HE dyes, M dyes and bi-functional dyes.
On the consolidated financial front, the company has posted a growth of 5.84 per cent in terms of revenues in Q1FY20 that came in at Rs.372.27 crore as compared with Rs.351.72 crore posted in the corresponding period of the previous fiscal. The PBIDT came in at Rs.48.93 crore for the quarter ended June 2019 as compared to Rs.63.77 crore posted in Q1FY19, thus witnessing a fall of 23.27 per cent. The PAT too fell by 32.78 per cent in Q1FY20 to Rs.26.42 crore as against Rs.39.31 crore posted in Q1FY19.
On the financial front, the net sales in FY19 came in at Rs.1,423.50 crore, up by 22.07 per cent from Rs.1,166.14 in FY18. The operating profit in FY19 came in at Rs.249.49 crore, up by 22.37 per cent from Rs.203.88 crore posted in FY18. The profit after tax was higher by 14.12 per cent at Rs.142.18 crore in FY19 as against Rs.124.59 crore posted in FY18.
The company has added 18,000 tonnes per annum dyestuff capacities in the last two years and it is further expanding it by 24,000 tonnes per annum over the next few years. The company has opened up several warehouses and marketing offices in India and overseas as well, and will be adding further in future. On the export front, the exports stood at Rs.1,396 million, and the share of exports in total revenue was 44 per cent in Q1FY20.
The company completed acquisition of 80 per cent stake at Sener Boya in Turkey, which will be the company’s marketing base for Turkey and surrounding countries. The company plans to increase the share of B2C in overall dyestuff business going ahead, which will increase dyestuff’s share in total revenues and further integrate its business and lead to stable margins and increase in the profitability. We recommend a HOLD.
Grasim Industries Ltd started as a textiles manufacturer and later diversified into viscose staple fibre (VSF), cement and chemicals. The products and services of the company include viscose staple fibre (VSF), grey cement, white cement, fertilizers, chemicals, mining, fatty alcohol/fatty acids, insulators, software, BPO, finance and insurance, retail, sponge iron and textiles. The company is also in the business segment of chemicals, fibre and pulp.
On the financial front, on a consolidated basis, the company’s net sales for Q1FY20 stood at Rs.18,860.93 crore, posting a growth of 12.53 per cent from Rs.16,761.42 crore in the same quarter of the previous year. The PBIDT of the company for Q1FY20 was Rs.5152.77, an increase of 31.26 per cent from Rs.3,925.51 crore posted in Q1FY19. The company posted net profit of Rs.1,738.22 crore in Q1FY20 as compared with the net profit of Rs.1,357.89 crore in Q1FY19, a rise of 28.01 per cent. The adjusted EPS grew by 10.25 per cent to Rs.18.71 for the quarter ended June 2019.
On the annual front, the company’s net sales for FY19 were Rs.72,970.64 crore, up by 27.94 per cent from Rs.57,033.67 crore recorded in FY18. The PBIDT grew over 30.41 per cent and came in at Rs.16,068.63 crore in FY19 versus Rs.12,321.90 crore posted in FY18. The net profit posted by the company in FY19 was Rs.2,746.89 crore versus net profit of Rs.4,415.06 crore in FY18, showing a drop of 37.78 per cent.
The return on equity (RoE) stood at 4.87 per cent and the return on capital employed (RoCE) was 8.43 per cent.
Recently, Grasim Industries agreed to subscribe to the equity shares proposed by Aditya Birla Capital on a preferential basis up to an amount not exceeding Rs.770 crore. We recommend a HOLD as the company is yet to deliver a relatively better quarter.