Query Board
This section gives decisive investment rationales to our subscribers on the stock queries they have raised to our research team.
Alok Industries Ltd. is an Indian textile manufacturing company based in Mumbai. Going through the company’s quarterly consolidated financial performance, net sales and other operating income for Q4FY21 were recorded at Rs 1,466.82 crore, which rose attractively by 97.86 per cent as compared to net sales and operating income of Rs 741.34 crore for Q4FY20. The company reported operating profit for Q4FY21 at Rs 163.97 crore as compared to operating loss of Rs 84.27 crore reported for the corresponding quarter of the previous fiscal year.
On the contrary, the company incurred net loss of Rs 499.84 crore in Q4FY21 as against net profit of Rs 1,791.09 crore in Q4FY20. On the annual front, net sales and other operating income were reported at Rs 3,847.59 crore for FY21, which gained by 16.68 per cent when compared to Rs 3,297.68 crore for FY20. FY21 reported operating profit of Rs 223.25 crore as against operating loss of Rs 107.51 crore for FY20. The company recorded net loss of Rs 5,672.28 crore in FY21 as compared to net profit of Rs 1,311.22 crore in FY20. In February 2020, Reliance Industries declared to take over 37.7 per cent stake in Alok Industries for Rs 250 crore. Hence, having a positive outlook about the recovery path of the company, we recommend HOLD.
United Spirits Limited (USL) is described as an Indian alcoholic beverages company and also the world’s second-largest spirits company by volume. The quarterly consolidated financials indicate that net sales and other operating income for Q4FY21 were recorded at Rs 7,678.10 crore, which rose by 19.62 per cent as compared to net sales and operating income of Rs 6,419 crore for Q4FY20. The operating profit of the company for Q4FY21 was reported at Rs 400.90 crore as compared to operating profit of Rs 255.90 crore reported for the corresponding quarter of the previous fiscal year, registering gain of 56.66 per cent. The company recorded net profit of Rs 203.30 crore in Q4FY21 as against net profit of Rs 50.30 crore in Q4FY20, surging up massively. On the annual front, the net sales and other operating income were reported at Rs 27,418.50 crore for FY21 which dipped by 4.88 per cent when compared to Rs 28,823.70 crore for FY20. FY21 reported a decline of 31.49 per cent in operating profit at Rs 1,092.30 crore as against Rs 1,594.30 crore for FY20. The company recorded net profit of Rs 363.40 crore in FY21 as compared to net profit of Rs 623.90 crore in FY20, recording decline of 41.75 per cent. The company predicts that the alcohol beverage segment has the potential to regain faster than other discretionary segments. Hence, we recommend HOLD.
Venkateshwara Hatcheries (P) Ltd. (VH Group) was established in 1971 in Pune. In recent times, the group is popularly known the world over as Venky’s. Coupled with its unique combination of expertise and experience and backed by strategic collaborations, the company deals in diversified activities, including SPF eggs, chicken and eggs processing, broiler and layer breeding, genetic research and poultry diseases diagnostic, poultry vaccines and feed supplements, vaccine production, bio-security products, poultry feed and equipment, nutritional health products, soya bean extract, and many more. Analysing the quarterly standalone financials, the net sales and other operating income for Q4FY21 stood at Rs 941.35 crore, posting an increase of 42.44 per cent as compared to net sales and operating income of Rs 660.86 crore for Q4FY20.
The company reported operating profit for Q4FY21 at Rs 122.67 crore as compared to operating loss of Rs 108.87 crore reported for the corresponding quarter of the previous fiscal year. The company recorded net profit of Rs 77.90 crore in Q4FY21 as against net loss of Rs 96.73 crore in Q4FY20. On an annual basis, the net sales and other operating income were reported to be Rs 3,116.63 crore for FY21, which dipped by 4.43 per cent when compared to Rs 3,261.02 crore for FY20. FY21 reported massive jump in operating profit at Rs 424.57 crore as against Rs 14.06 crore for FY20. The company reported net profit of Rs 267.74 crore in FY21 as compared to net loss of Rs 27.16 crore in FY20.
The poultry industry in India has witnessed a major shift in structure and operation during the last two decades, converting from a mere backyard activity into a major industry with the presence of a large number of integrated players. The International Market Analysis Research and Consulting Group forecasts the Indian poultry market’s expansion at a CAGR of 15.2 per cent during 2021-2026. Hence, we recommend BUY.
Manali Petrochemicals Limited (MPL) is a leading petrochemical manufacturer headquartered in Chennai. Part of AM International, a Singapore-based group of multinational companies, MPL is the only integrated polyol manufacturer in India. The company develops innovative products that are applied in a variety of industries such as appliances, automotive, bedding, food and fragrances, furniture, footwear, paints and coatings, and pharmaceuticals. To take a look at its quarterly consolidated financials, the net sales and other operating income for Q3FY21 stood at Rs 349.37 crore, posting a substantial increase as compared to net sales and operating income of Rs 169.88 crore for Q3FY20.
The company reported operating profit for Q3FY21 at Rs 133.69 crore, which jumped massively as compared to operating profit of Rs 15.9 crore reported for the corresponding quarter of the previous fiscal year. The company recorded net profit of Rs 86 crore in Q3FY21, rising attractively as against net profit of Rs 7.33 crore in Q3FY20. On an annual basis, the net sales and other operating income were reported at Rs 803.05 crore for FY20, which inched down by a mere 0.89 per cent when compared to Rs 810.25 crore for FY19. FY20 reported a decline of 25.47 per cent in operating profit at Rs 82.05 crore as against Rs 110.10 crore for FY19. The company reported net profit of Rs 53.76 crore in FY20 as compared to net profit of Rs 76.59 crore in FY20, decreasing by 29.8 per cent.
The company has reported strong financial performance in the third quarter of FY21. Besides, in September 2020, the company invested Rs 150 crore in an expansion project which involved increase in capacity of propylene glycol (PG). This project is primarily focused on the pharmaceuticals and food sectors which were predicted to witness a rise in demand.
Hence, with an optimistic outlook regarding the company’s expansion plans and capabilities to lead the market, we recommend BUY.
Anjani Portland Cement Limited (APCL), a subsidiary of Chettinad Cement Corporation Limited, is a cement manufacturer. The company operates in cement and power segments. Anjani Cement is a high-quality cement brand made from the finest raw material. The limestone mines of APCL enjoy the position of being the best mines amongst the cement brackets of Nalgonda district, thus throwing light on the superior quality of the cement produced. Anjani Cement has established footprints in the markets of Andhra Pradesh and competes with national players in the industry through its exemplary product and services.
Taking into account its quarterly standalone financials, the net sales and other operating income for Q4FY21 stood at Rs 130.45 crore, which increased by 28.29 per cent as compared to net sales and operating income of Rs 101.68 crore for Q4FY20. The operating profit of the company for Q4FY21 stood at Rs 36.12 crore as compared to operating loss of Rs 18.63 crore reported for the corresponding quarter of the previous fiscal year, registering gain of 93.88 per cent. The company recorded net profit of Rs 24.81 crore in Q4FY21 as against net profit of Rs 8.04 crore in Q4FY20, jumping up substantially. On an annual basis, the net sales and other operating income were reported to be Rs 407.20 crore for FY21, which dipped by 0.42 per cent when compared to Rs 408.93 crore for FY20.
FY21 reported a jump of 45.87 per cent in operating profit at Rs 122.43 crore as against Rs 83.93 crore for FY20. The company reported net profit of Rs 84.98 crore in FY21 as compared to net profit of Rs 40.35 crore in FY20, recording significant increase. APCL has entered into a purchase contract to acquire Bhavya Cements. The objective of the acquisition is to improve the market presence of the company with the addition of a new brand. In Q3FY21, the cement segment reported 12.08 per cent growth in revenue whereas the power segment reported 14.8 per cent growth in revenue. Hence, we recommend ACCUMULATE.
Kaveri Seeds is contributing to India’s Green Revolution that begins with the seed, the most important input in agriculture. Enhanced premium quality seed has been the hallmark of the company for more than three decades. It possesses extensive experience in seed production of major agricultural crops backed by a very strong in-house research and development programme for crops such as maize, cotton, sunflower, bajra, sorghum, rice and several vegetables. The company owns over 600 acres of land and has on board a dedicated team of researchers.
Analysing the quarterly consolidated financials, the net sales and other operating income for Q3FY21 was reported at Rs 118.55 crore, which decreased by 2.82 per cent as compared to net sales and operating income of Rs 121.99 crore for Q3FY20. The company reported operating profit for Q3FY21 at Rs 17.77 crore, which decreased by 1.92 per cent as compared to operating profit of Rs 18.12 crore reported for the corresponding quarter of the previous fiscal year. The company recorded net profit of Rs 9.16 crore in Q3FY21, rising 7.39 per cent as against net profit of Rs 8.53 crore in Q3FY20. On an annual basis, the net sales and other operating income were reported at Rs 930.35 crore for FY20, which rose by 14.94 per cent as compared to Rs 809.42 crore for FY19. FY20 reported an increase of 17.34 per cent in operating profit at Rs 298.80 crore as against Rs 254.64 crore for FY19.
The company reported net profit of Rs 259.91 crore in FY20 as compared to net profit of Rs 217.41 crore in FY20, recording an increase of 19.55 per cent. In the nine-month period ending on December 31, 2020, the hybrid rice industry’s growth was witnessed at 8-10 per cent while overall the Kaveri brand hybrid rice registered growth by 48 per cent. The company plans to increase non-cotton revenue share to 60 per cent from current 53 per cent over the long term. Also, over the next 4-5 years, Kaveri Seeds aims to achieve sizeable revenue share from exports. Hence, we recommend BUY.
(Closing price as of May 28, 2021)