Query Board
This section gives decisive investment rationales to our subscribers on the stock queries they have raised to our research team.
Network People Services Technology Limited is a banking technology service provider (TSP) and is engaged in providing software and mobility solutions to the banking and finance sector.
The company's quarterly consolidated financials shows that the operating profit for Q2 FY2022 is at ₹ 0.83 crore as compared to the operating profit of ₹ 0.48 crore for Q2 FY2021. The net sales for Q2 FY2022 was at ₹ 7.93 crore as compared to the net sales in the same quarter last year which was ₹ 4.45 crore, up by 78.2 per cent. The net profit has also been on the higher side and stands at ₹ 0.63 crore since the same period last year which was at ₹ 0.36 crore. The annual performance of net sales is at ₹ 15.40 crore for FY2021, which has increased marginally from last year’s figure of ₹ 15.24 crore. The operating profit stood at ₹ 1.44 crore as compared to an operating profit of ₹ 1.38 crore for FY2020. The company has delivered a net profit of ₹ 1.08 crore for FY2021 as compared to the profit after tax of ₹ 1.02 crore for FY2020. Even though the company is trying to acquire a project pipeline, the earnings’ growth has been declining over the past five years. Also, the level of non-cash earnings is high and the share price has been quite volatile in the past three months. Hence, we recommend EXIT.
Lodha Group is among the largest real estate developers in India and has been involved in the real estate business since the 1980s.
The company's quarterly consolidated financials shows that the operating income for Q3 FY2022 is at ₹ 2059.44 crore as compared to the operating profit of ₹ 1,514.10 crore for Q2 FY2021. Net sales for Q3 FY2022 was at ₹ 575.08 crore as compared to the net sales in the same quarter last year which was ₹ 558.35 crore, up by 3 per cent. The net profit has also been on the higher side and stands at ₹ 286.04 crore since the same period last year which was at ₹ 231.94 crore, up by 23.32 per cent. The annual performance of net sales is at ₹ 5,448.58 crore for FY2021, which has decreased from last year’s figure of ₹ 12,442.59 crore by almost 56.21 per cent. The operating profit stood at ₹ 1,695.05 crore as compared to an operating profit of ₹ 2,025.67 crore for that last financial year of FY2020. The company has delivered a net profit of ₹ 47.91 crore for FY2021 as compared to the profit after tax of ₹ 741.57 crore for FY2020, down by 93.54 per cent. The improvement in the company’s credit profile due to debt reduction and a strong recovery in operating performance post the pandemic-related restrictions make it a good investment. Hence, we recommend BUY.
State Bank of India is the largest and oldest retail banking player in India. It an exhaustive range of financial products and services that answer any business or market circumstance, backed by exceptional expertise in customising the product to meet the most sensitive specificities of each client and each business context.
While the bank is strongly positioned to structure financial packages that anticipate the changing business environment, its vast network – the world’s largest – ensures delivery channels of unmatched reach, both in India and abroad.
The company’s quarterly consoliadted financials reveal that the net interest income for Q3FY22 was ₹ 30,687 crore as compared to the interest income of ₹ 28,820 crore for Q3FY21, an increase of 6.48 per cent. The operating profit for Q3FY22 stood at ₹ 18,522 crore, recording an increase of 6.86 per cent as compared to operating of ₹ 17,333 crore in the same quarter last year. The net profit stands at ₹ 8,432 crore as compared to ₹ 5,196 crore, 62.27 per cent up from Q3FY21.
The annual performance of net interest income reported is ₹ 1,10,710 crore for FY21, which has improved by 12.87 per cent from last year’s ₹ 98,085 crore. The operating profit stood at ₹ 71,554 crore as compared to a net profit of ₹ 68,133 crore for that last financial year of FY20. The company has delivered a net profit of ₹ 20,410 crore for FY21 as compared to that of ₹ 14,488 crore for FY20, up by 40.88 per cent.
The largest PSU bank gave a strong performance on the asset quality front and has a healthy pipeline to aid business growth and overall performance. Also, the ROE is improving and the infrastructure-focused Union Budget announced by the FM will help the bank’s overall corporate business.
Hence, we recommend BUY.
Bharti Airtel Limited (Airtel) is one of the largest homegrown consumer brands to have emerged out of India. Over the last 25 years, it has grown to become a global communications solutions provider with over 471 million customers in 18 countries across South Asia and Africa. It is ranked among the top three mobile operators globally and has over two billion subscribers. Airtel is one of India’s largest integrated communications solutions providers and the second-largest mobile operator in Africa. The retail portfolio includes high-speed 4G and 4.5G mobile broadband, Airtel Xstream Fibre, that promises speeds up to 1 GBPS with convergence across linear and on-demand entertainment, streaming services spanning music and video, digital payments, and financial services. For enterprise customers, they offer a basket of solutions that includes secure connectivity, cloud and data centre services, cyber security, IoT, ad tech and cloudbased communication.
The company’s quarterly consolidated financials show that the operating profit for Q3 FY2022 is at ₹ 14,899.90 crore as compared to the operating profit of ₹ 12,102.20 crore for Q2 FY2021, up by 23.12 per cent. Net sales for Q3 FY2022 stands at ₹ 29,866.60 crore as compared to net sales in the same quarter last year which was ₹ 26,517.80 crore, up by 12.63 per cent. The net profit has been on the lower side and stands at ₹ 1,034.60 crore since the same period last year which was at ₹ 1,570.70 crore, down by 34.13 per cent.
The annual performance of net sales is at ₹ 1,00,615.80 crore for FY2021, which has increased from last year’s figure of ₹ 84,676.50 crore by almost 18.82 per cent The operating profit stood at ₹ 46,014.50 crore as compared to an operating profit of ₹ 35,789.10 crore for FY2020. The company has delivered a net loss of ₹ 12,271.20 crore for FY2021 as compared to the loss after tax of ₹ 30,001.50 crore for FY2020. Owing to the company’s superior quarterly margins, robust subscriber growth and higher 4G conversions, we recommend BUY.
SBI Card, a subsidiary of the State Bank of India, is the second-largest credit card issuer in the country. With more than 1.18 crore cardholders, it offers financial access to a wide range of value-added payment products and services that fulfil transactional and short-term credit requirements. SBI Card has made a significant contribution to India’s continuously innovating digital payment ecosystem. It has successfully evolved to match the fast-changing consumer preferences for contactless and digital modes of transactions, further accelerated by the pandemic.
This significant shift towards digital and contactless payments is being further fuelled by a plethora of digital and technology initiatives, making life simple for customers. The company’s quarterly consolidated financials depict that the interest income for Q3FY22 recorded at ₹ 1,273.32 crore as compared to the interest income of ₹ 1,173.25 crore for Q3FY21, an increase of 8.52 per cent.
The total income for Q3FY22 was seen at ₹ 3,139.66 crore, recording an increase of 23.6 per cent as compared to operating of ₹ 2,539.77 crore in the same quarter last year. The net profit stands at ₹ 385.78 crore as compared to ₹ 209.66 crore, 84 per cent up from Q3FY21.
The annual performance of net interest income reported is ₹ 4,927.67 crore for FY21, which has improved by a narrow margin from last year’s ₹ 4,841 .30 crore. Total Income stood at ₹ 9,713.58 crore as compared to a net profit of ₹ 9,752.29 crore for that last financial year of FY20. The company has delivered a net profit which declined and stood at ₹ 984.52 crore for FY21 as compared to that of ₹ 1,244.82 crore for FY20.
The company has strong prospects on growth, profitability and digitisation and thus promises healthy recovery in spending to aid business growth. Hence, we recommend HOLD.
Founded in 2011, EKI Energy Services Limited is one of the leading companies in the carbon credit industry in India with an established global footprint. It is a renowned brand in the realm of climate change, carbon credits and sustainability solutions. It provides all services in carbon asset management that include carbon footprint management, sustainability audits, training for quality control and management, carbon neutrality, lifecycle analysis and end-to-end carbon offset project management.
The company’s quarterly standalone financials show that the operating profit for Q3FY22 is at ₹ 214.19 crore as compared to the operating profit of ₹ 1,08.95 crore for Q2FY22, up by 23.12 per cent. Net sales for Q3FY22 were ₹ 687.82 crore as compared to the net sales in the last quarter of ₹ 443.47 crore, up by 35.53 per cent. The net profit has been incredible and stands at ₹ 161.21 crore since the last quarter which was at ₹ 81.25 crore, up by 49.6 per cent. The annual performance of net sales is at ₹ 190.79 crore for FY21, which has increased from last year’s figure of ₹ 65.90 crore by almost 189.5 per cent. The operating profit stood at 25.55 crore as compared to operating profit of ₹ 6.23 crore for FY20, an increase of 310.09 per cent. The company has delivered net profit of 18.69 crore for FY21 as compared to the profit after tax of ₹ 4.51crore for FY20, a phenomenal increase of 314.32 per cent.
The company's strong growth is supported by strong growth is supported by the increasing global demand for carbon credits, increasing net zero commitments by various countries and voluntary emission reduction pledges by corporates. Considering this escalation in demand for carbon credits and a widening demand-supply gap in the global markets, the company plans to sign up bigger deals to purchase more carbon credits in the coming years and is also planning to expand in different geographies and newer business avenues. Hence, we recommend BUY.
(Closing price as of Mar 04, 2022)