Query Board
Query Board
Godawari Power & Ispat Ltd. is engaged in the production of sponge iron, steel billets, ferro alloys, HB wires, oxygen and fly ash bricks.The company is also in the business of steel and electricity. On the consolidated financial front, the net sales have gone up by 15.80 per cent to Rs833.84 crores in the quarter ending June 2019 from Rs720.08 crores, reported in the same quarter of the previous fiscal. The profit before interest depreciation and tax (PBIDT) came in at Rs174.54 crores in Q1FY20 as against Rs183.62 crores, posted in Q1FY19, displaying a fall of 4.94 per cent. In terms of profit after tax (PAT), the company witnessed a marginal rise of 1 per cent as it stood at Rs56.91 crores in Q1FY20 as against Rs56.2 crores in Q1FY19.On the annual front, the net sales shot up 28 per cent to Rs3,321.63 crores in FY19 as against Rs2,588.84 crores in FY18. In FY19, the PBIDT has climbed 32.24 per cent to Rs789.34 crores as against Rs596.90 crores in FY18. The PAT jumped 21 per cent to Rs256.83 crores in FY19 as compared to Rs211.29 crores reported in FY 18. On the valuation front, the company is currently trading at a PE multiple of 2.02x while the industry PE stood at 6.30x. The ROCE stood at 21.71 per cent and the ROE was at 24.55 per cent. Operating profit margin is declining since the last 3 quarters, thus AVOID.
Bombay Dyeing and Manufacturing Company Limited is a holding company, engaged in real estate development, polyester staple fibre, and retail. Its business segments include real estate, polyester, and retail/textile. The company is involved in transforming and redefining the Mumbai skyline with its developments. It also manufactures virgin polyester staple fibre and textile grade polyester (PET) chips with Next Generation Staple Spinning System (NGSSS) technology from Invista Polyester Technologies and Chemtex International Inc. On the consolidated financial front, in Q1FY20 the company reported net sales of Rs648.57 crores, an increase of 63.18 per cent from Rs397.46 crores in Q1FY19. For Q1FY20, the company posted an operating profit of Rs19.89 crores as against an operating loss of Rs88.21 crores for Q1FY19. It gained a net profit of Rs27.65 croresin Q1FY20, whereas, it had incurred a net loss of Rs93.74 crores in Q1FY19.On the annual front, the company’s net sales in FY19 were Rs4,429.76 crores, which is a 64.51 per cent increase from the net sales of Rs2,692.75 in FY18. The PBDT for FY19 was Rs1,265.56 crores, which is a significant rise from Rs67.07 crores. The company gained a net profit of Rs1,229.98 crores and Rs34.41 crores for FY19 and FY18, respectively. We recommend the reader-investors to EXIT due to poor quarterly results.
SP Apparels Limited is mainly into manufacturing and selling knitted kidwear such as bodysuits, sleepsuits, tops, and bottoms. The company also produces menswear such as shirts, polo shirts, t-shirts, trousers, jeans, sweaters, jackets, and innerwear, and sells them under the brand name, ‘Crocodile’. Founded in 1989, the company is based in Tirupur, Tamil Nadu and exports its products across the world.
On the consolidated financial front, SP Apparels reported the net sales of Rs217.60 crores in the first quarter of fiscal year 2020, posting an increase of 14.04 per cent from Rs190.82 crores posted in Q1FY19. The PBIDT witnessed a decrease of approximately 47.77 per cent as it stood at Rs14.85 crores in Q1FY20 from Rs28.43 crores, reported in Q1FY19. The company recorded a net profit of Rs7.33 crores for the Q1FY20, down by 41 per cent from Rs12.58 crores, posted in Q1FY19.
On the annual front, the company’s net sales in FY19 were Rs826.38 crores, which is a 24 per cent increase from the net sales of Rs662.42 crores in FY18. PBIDT for FY19 increased by 26 per cent to reach Rs133.84 crores from Rs105.82 crores, posted in FY18. In FY19, the company’s profit after tax was realized at Rs73.37 crores from Rs47.81 crores in FY18, registering a substantial growth of 53.46 per cent.
On the valuations front, the company Rs 522.20 crore mcap company is currently trading at a P/E of 7.69x while the industry P/E stood at 8.20x. The ROCE stood at 17.59 per cent and the ROE was at 16.66 per cent. The EV/EBITDA stood at 5.10x.
the stock is currently trading at 1.09 times its book value and debtor days have improved from 75.29 to 56.82 days. However we recommend our investor-readers to AVOID as the company might be capitalizing the interest costs.
Excel Industries Ltd. is engaged in the manufacturing of agrochemical intermediates, phosphates, specialty chemicals, biocides, and pharma products.The company also carries out research and development activities for creating several custom-made products to meet specific requirements by customers. They also focus on the waste management area, for which they have taken the initiative to convert Municipal Solid Waste (MSW) into Organic Soil Conditioner (enricher).The company’s product range includes agrochemical intermediates, such as Phosphorus Derivatives, including phosphorous pentasulphide, phosphorous trichloride, diethylthiophosphoryl chloride and many more.
On the consolidated financial front, the Excel Industries’ net sales for Q1FY20 stood at Rs189.45 crores, marginally posting a de-growth of 2.67 per cent from Rs194.65 crores in the same quarter of the previous year. The PBIDT of the company for Q1FY20 was Rs42.04 crores, demonstrating a contraction of 30.09 per cent from Rs60.14 crores posted in Q1FY19. It posted a net profit of Rs27.40 crores in Q1FY20 from a net profit of Rs39.03 crores in Q1FY19, registering a decline of 29.79 percent.On the annual front, the company’s net sales for FY19 were at Rs824 crores, up by 34.99 per cent from Rs611.13 crores, recorded in FY18. The PBIDT doubled and came in at Rs248.87 crores in FY19 versus Rs122.68 crores posted in FY18. The net profit posted by the company in FY19 was Rs153 crores from a net profit of Rs73 crores in FY18, reporting a rise of over 100 per cent.On the valuation part, the company is currently available at a PE of 7.13x as compared to industry PE of 32.07x. The return on equity (RoE) stood at 24.91 per cent and the return on capital employed (RoCE) was 38.05 per cent.Recently, Excel Industries has informed that the likely date for completion of the acquisition of NetMatrix Crop Care’s chemical manufacturing unit, located at Plot no:15 & 15A, APSEZ, Atchutapuram, Visakhapatnam, Andhra Pradesh. If the stock already exists in your portfolio then HOLD it. If you want to buy it then wait for Q2 results.
Gujarat Mineral Development Corporation Limited (GMDCL) is a state owned minerals and lignite mining company, headquartered in Ahmedabad. It operates through two segments: Mining and Power. Its mining projects include lignite, bauxite, fluorspar, multi-metal, manganese, and several other minerals. Currently, GMDC has six operational lignite mines and also operates over Mewasabauxite mines in Gujarat. As part of its power projects, GMDC’s wind farm projects of 150.9 megawatts (MW) are located at different places in Gujarat, with a five megawatt (MW) peak solar power project. It also owns and operates Akrimota Thermal Power Station, which is a 250 MW lignite-based thermal power plant in Kutch district.
On the standalone financial front, the net sales for the first quarter of FY20 came in at Rs504.85 crores, a decline of around 21.71 per cent from the net sales of Rs644.82 crores for the first quarter of FY19. For Q1 of FY20, the PBDT stood at Rs147.91 crores, a reduction of 47.88 per cent from Rs283.79 crores posted for the same quarter of the previous fiscal. In Q1 of FY20, the company gained a net profit of Rs95.86 crores, declining by 48.67 per cent from Rs186.76 crores gained in Q1 of FY19.
Looking at the annual trend, the net sales were reported at Rs1,879.68 crores in FY19, reducing by 9.19 per cent from the net sales of Rs2,069.97 crores in FY18. The company’s operating profit contracted by 27.58 per cent in FY19 to Rs484.45 crores from Rs668.92 crores in FY18. GMDC gained a net profit of Rs219.80 crores in FY19, which is a decrease of 48.59 per cent from the net profit of Rs427.58 crores, gained in FY18. Along with MOIL, GMDC signed a Memorandum of Understanding (MoU) to set up a joint venture company with 49 per cent and 51 per cent shareholding, respectively, to take up joint exploration of manganese bearing areas, exploring the feasibility, and to conduct mining operations. Based on our analysis, we recommend our investor-readers to EXIT.
Formerly, Aditya Birla Capital Limited (ABCL) was known as Aditya Birla Financial Services Limited. Through its subsidiaries, the company provides financing, investment, protection, and advisory services to its customers and clients. As a part of financing operations, ABCL provides services, such as lending, financing and wealth management solutions, customised solutions in areas of personal and business loans, corporate finance, mortgages, capital market-based lending, and housing finance solutions, including home loans, home improvement loans, and construction loans.
As a part of investment operations, the company provides services such as asset management, investment solutions, portfolio management investment advisory, and securities broking.
On the consolidated financial front, the net sales for the first quarter of FY20 came in at Rs3,645.75 crores, an increase of 19.02 per cent as compared to net sales of Rs3,063.11 crores for the first quarter of FY19. For Q1 of FY20, the PBDT stood at Rs402.81 crores,reporting a hike of 36.19 per cent from Rs295.77 crores for the same quarter of the previous fiscal. The company’s net profit expanded by 37.13 per cent to Rs197.18 crores, gained in the first quarter of the current fiscal year from Rs143.79 crores gained in the corresponding quarter of the previous fiscal year.
Looking at the annual trend, the net sales were reported at Rs15,163.51 crores for FY19, increasing by 31.58 per cent from the net sales of Rs11,523.88 crores for FY18. In FY19, the company posted an operating profit of Rs5,321.76 crores, which is a hike of 25.7 per cent from Rs964.74 crores, reported in FY18. The company’s net profit grew by 13.09 per cent to Rs585.46 croresin FY19 from Rs517.71 crores in FY18. Despite liquidity headwinds across the industry, ABCL raised about Rs11,000 crores of long term funds in the second half of FY19. Based on our analysis, we recommend a HOLD to our investor readers.