Monte Carlo Fashions Limited is a manufacturer of textile garments and clothing accessories. It manufactures designer woollen and cotton readymade apparels under its brand name MONTE CARLO. Monte Carlo Fashions offers its products through different channels such as brand outlets, multi-brand outlets, format outlets and on e-commerce websites. On the financial front, in the Q1FY20 the company reported net sales of Rs.59.92 crore which is a slight increase of 1.15 per cent from Rs.59.24 crore in Q1FY19. PBDT decreased by 98.29 per cent to Rs.3.24 crore in the Q1FY20 from Rs.1.63 crore reported in Q1FY19. The company recorded a net loss of Rs.6.14 crore for the Q1FY20 and a net loss of Rs.3.84 crore in Q1FY19. On the annual front, the company’s net sales in FY19 were Rs.656.38 crore which is a 13.88 per cent increase from the net sales of Rs.576.37 in FY18. PBDT for FY19 decreased by 12.65 per cent to Rs.107.63 crore compared to Rs.123.22 crore of FY18. In FY19 the company’s net profit was less at Rs.2.06 crore compared to Rs.13.37 crore in FY18. In FY19 the net profit decreased by around 12.25 per cent to Rs.59.6 crore from Rs.67.92 crore in FY18. We recommend the reader-investors to to AVOID as operating profit and and PAT are negative for the last 2 quarters.
Brightcom Group has expertise across several verticals, with focus on Financial Services, Healthcare, Manufacturing Chemicals, Life Sciences and Retail. On the financial front on a consolidated basis, the net sales grew by 5.58 per cent to reach Rs.574.98 crore in Q1FY20 as against Rs.544.60 crore in Q1FY19. The profit before interest depreciation and tax (PBIDT) witnessed a fall of 11.39 per cent to Rs.186.63 crore in Q1FY20 as compared to Rs.167.54 crore posted in Q1FY19. The company posted a net profit of Rs.83.15 crore in Q1FY20 as against a net profit of Rs.91.23 crore reported in Q1FY19, marking a fall of 8.86 per cent YoY.
On the annual front, the net sales in FY19 came in at Rs.2,580.24 crore, a growth of 6.59 per cent as compared to Rs.2,420.74 crore reported in FY18. The PBIDT(excluding OI) for FY19 stood at Rs.759.34 crore, gaining 6.39 per cent from Rs.713.75 crore in FY18. The company posted a net profit in FY19 of Rs.443.98 crore as against Rs.407 crore in FY18, an increase of 9.08 per cent. The financials of the company show moderate growth overall. The company posted negative quarter owing to bad debts but the coming quarter could go better. Thus HOLD.
The South Indian Bank Limited offers banking services in retail, corporate and para-banking activities. The bank’s main business segments include treasury services which consist of interest earnings on investments portfolio of the bank, gains or losses on investment operations and earnings from foreign exchange business; corporate or wholesale banking segment which includes providing loans to corporate segments. Providing loans to non-corporate customers comes under the retail banking segment. Apart from this, para-banking activities include debit cards, third-party product distribution and associated costs.
On the financial front, the net interest earned by the bank in the first quarter of the FY20 came in at Rs.1894.85 crore as against Rs.1653.91 crore in the corresponding quarter of the previous fiscal, clocking a growth of 14.57 per cent. The total income in Q1FY20 was Rs.2076.76 crore, an increase of 15.39 per cent from Rs.1799.81 crore in Q1FY19. The profit after tax increased significantly by 217.97 per cent to reach Rs.73.26 crore in Q1FY20 as against Rs.23.04 crore in Q1FY19. For Q1FY20 the GNPA percentage was 4.96 per cent as compared to 4.54 per cent in Q1FY19. The CRAR ratio in Q1FY20 was 12.17 per cent and in Q1FY19 was 12.23 per cent.
On the annual front, the net interest earned by the bank in FY19 came in at Rs.6876.52 crore, an increase of 11.04 per cent from Rs.6192.81 crore in FY18. The total income earned by the bank in FY19 was Rs.7602.73 crore, an increase of 8.15 per cent from Rs.7030.66 crore earned in the previous fiscal year. The profit after tax has on an annual basis in FY19 fell by 26.09 per cent to reach Rs.247.53 crore as against Rs.334.89 in FY18. The company reported GNPA ratio for FY19 to be 4.92 per cent and 3.59 per cent for FY18. In FY19 the CRAR ratio was 12.61 per cent whereas in FY18 it was 12.7 per cent.
We would recommend a HOLD to our investor-readers.
Gokul Agro Resources Limited is involved in manufacturing edible and non-edible oils and fats. The company has agro-based products in various product groups which includes Soybean, Palmolive, cottonseed oil, sunflower oil, castor oil, oil cakes, de-oiled cakes, Vanaspati, oilseeds and other agro-commodities. Its edible oil products are marketed under brands like Vitalife, Mehak, Zaika, Pride, Richfield, etc. Soya acid oil and palm fatty acid distillate come under the company’s Oleochemical product group. Hulled, natural and black sesame seeds along with ajwain seed, wheat, rice, barley, maize, etc. are included as part of the cereals, spices and oilseeds products. The company’s refinery is located in Anjar in Kutch, which has in-house plants to manufacture tins, jars, bottles and corrugated boxes.
From the financial point of view on a consolidated basis, net sales of the company for the first quarter of FY20 were Rs.1278.68 crore as compared to the net sales of Q1FY19 of Rs.1030.44 crore. So there is a 24.09 per cent increase in net sales of Q1FY20 than that of Q1FY19. For Q1FY20 the PBDT stood at Rs.10.78 crore which is an increase of 29.8 per cent than that of Rs.8.30crore for the same quarter of the previous year. For Q1FY20 the company recorded a net profit of Rs.4.35 crore as against a net loss of Rs.0.02 crore incurred in Q1FY19.
On the annual front, for fiscal year 2019 the company recorded net sales of Rs.4545.80 crore which is a 10.22 per cent decrease when compared to the net sales of Rs.5063.44 crore for FY18. The PBDT for FY19 stood at Rs.43.89 crore as against Rs.47.91 crore for FY18. For FY19, there can be seen a decrease of 8.39 per cent in PBDT than that of FY18. On the valuation front, the company is currently trading at a P/E of 27.24x on its TTM earnings against the industry P/E of 5.67x. The ROE stood at 2.47 per cent and the ROCE was at 16.94 per cent Also, the net profit is recorded at Rs.10.88 crore which is a decrease of 29.62 per cent compared to the net profit of Rs.15.46 crore for FY18. As operating profit is decreasing we recommend an EXIT.
SREI Infrastructure Finance Ltd is one of the leading non-banking financial institutions (NBFI) in India. The company provides finance for infrastructure equipment, infrastructure projects, infrastructure development and provides advisory services. The services offered by the company include Infrastructure Equipment- This division is engaged in leasing and hire purchase of infrastructure, construction equipment and machineries to various construction companies and small and medium scale enterprises engaged in civil and mechanical construction. The division also provides asset insurance services, equipment rental, deposit and maintenance services and asset valuation and disposal services. Infrastructure Project- This division of company finances various development projects such as bridges, approach roads, bypasses and roads, independent power projects and captive power. Advisory Services- This division of company provides project advisory, investment banking and insurance services.
On the consolidated financial front, the company posted net sales of Rs.1582.63 crore for Q1FY20, up by 2.22 per cent as compared to Rs.1548.3 crore posted in the same quarter of the previous year. The company’s PBIDT(excluding OI) was Rs.1244.79 crore in the first quarter of FY20, showing a fall of 2.25 per cent from Rs.1273.5 crore posted in the same quarter of FY19. The profit after tax was Rs.42.67 crore in Q1FY20, while in Q1FY19 it was Rs.139.83 crore, showing a de-growth of 69.48 per cent.On the annual front, the company posted net sales of Rs.6,473.36 crore in FY19, expanding by 20 per cent from Rs.5,400.54 crore posted in FY18. The PBIDT(excluding OI) came in at Rs.5,102.82 crore in FY19, while in FY18 it was Rs.4,223.90 crore, a growth of 20.18 per cent. The PAT was Rs.487.06 crore in FY19 rising by 24.01 per cent from Rs.392.77 crore posted in FY18.
On the valuations front, the company is currently trading at a PE of 1.24x as against the industry PE of 21.66x. The RoE stood at 12.31 per cent and ROCE was at 11.47 per cent. Thus, HOLD.
MMTC is one of the two highest foreign exchange earners for India, is a leading international trading company with a turnover of around US$ 10 billion. MMTC is the largest non-oil importer in India. MMTC’s diverse trade activities encompass Third Country Trade, Joint Ventures, Link Deals - all modern-day tools of international trading. Its vast international trade network includes a whollyowned international subsidiary in Singapore, spans almost in all countries in Asia, Europe, Africa, Oceania and Americas, giving MMTC global market coverage. The company also engaged in the business of Metals, Fertilizers, Agro Products, Precious Metal, Mineral & ores, Hydro - carbon.
On the financial front, the company posted net sales of Rs.7197.6 crore in Q1FY20, higher by 40 per cent from Rs.5173.76 crore posted in Q1FY19. The company witnessed an operating profit of Rs.82.83 crore in Q1FY20 as against Rs.15.79 crore, displaying a substantial expansion of 107 per cent. The net profit of the company doubled in a year to Rs.21.25 crore in the first quarter of the financial year 2020 as against Rs.9.39 crore posted in the previous year.On the annual front, the company reported net sales of Rs.29,439.69 crore for FY19, posting an increase of 78 per cent from Rs.16,451.01 crore posted in FY19. The PBIDT(excluding OI) came in at Rs.182.18 crore in FY19 as compared to Rs.21.10 crore in FY17, representing a steep growth of ~700 per cent. The company posted a net profit of Rs.83.76 crore in FY19 as compared to a net profit of Rs.26.16 crore in FY18.
The company posted exceptional results company despite various constraints like fall in average price of urea, reduced import of steam coal for Government Power Plants due to increased domestic supplies by Coal India, continuing ban on export of iron ore from Karnataka and restrictions on iron ore mining in Goa, Odisha etc and the resultant lower exports etc. Hence, we recommend a HOLD based on grown on a YOY basis and no negative sentiments are observed.
(Closing price as of Oct 09, 2019)