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Premium: Money Times Talk

Posted By Money Times On November 12, 2022 @ 9:27 pm In Money Times | Comments
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Coal India’s Q2 profit more than doubled to Rs. 6044 cr. and an interim dividend of Rs.
15/share has been declared. With H1 EPS of around Rs. 25 makes this dividend a 30% payout
ratio. A very good long-term buy.
Reliance has roped in veteran banker KV Kamath to head its financial services business, which
is likely to be demerged down the line. Add in small quantities
IRCON International, the most under-priced stock in the construction industry, has just
started attracting the attention of investors who foresee 40 % gain in the medium term. Hold
and Add.
In the Telecom space, ADC India Communications may record FY23 EPS of around Rs 25.
Stock can surprise with multi-bagger returns due to its potential to tie ups with defence
companies within a year. Add.
TVS Motors’ Q2 NP jumped 47% to Rs. 408 cr. despite an economic slowdown in certain
countries. The company expects sales to continue marching. Add.
Goa Carbon posted impressive Q2 results with profit rising to Rs. 36.17 cr. leading to an EPS of
Rs. 38.68. The H1FY23 EPS of Rs. 54.50 is way ahead of the FY22 EPS of 41.28. A big buy.
New generation private sector bank, DCB Bank, with over 410 branches in 18 states and 2 UTs
posted a strong Q2. While provisions have fallen, NIM seems strong. The share may be added
with a long-term perspective.
Solar Energy Corporation has floated a request for the selection of a 1200 MW wind-solar hybrid
project. Waaree Technologies, the leader in solar panel technology, can be a big beneficiary.
Add.
SBI has posted its highest-ever NP of Rs. 13265 cr. for Q2FY23. The bank expects its loan
growth to be around 14-16% this year. The share price has the potential to rise higher. Add.
BOB’s Q2 profit rose 37% to Rs. 3400 cr. on lower provisioning and rising NII. The bank expects
the performance to continue and recoup its past glory. Add.
FMCG major, Marico Ltd., expects margin improvement with rural revival in the third quarter.
Add.
PSU Banks get re-rated reducing the valuation gap with private banks on the back of solid loan
growth, improved asset quality, and large deposit growth. Buy Canara Bank, UCO Bank, IOB
and Central Bank and hold for three years.
Voltas to spend Rs. 1000 cr. to expand its manufacturing capacity, more so as the company’s
Rs. 500 cr. component plant in tie-up with China’s Highway International awaits the nod. Buy
Voltas.
Pudumjee Paper’s Q2 sales soared 66%, PBT by 57% and EPS has doubled to Rs. 1.91 YoY.
The H1FY23 EPS of Rs. 3.78 has crossed FY22 EPS of Rs. 3.64. Add.
Vinati Organics posted 51% rise in Q2 net revenue of Rs. 566.29 cr. and a 43% jump in NP to
Rs.115.94 cr. The company is on track to record good FY23 earnings. Accumulate.
Ceat’s Q2 NP fell 86% to Rs. 6 cr. on higher expenses despite the rise in income. With crude
prices firming up, it would be wise to Sell and stay away for some time.
Mother Dairy plans Rs. 800 cr. capex in 3-4 years and foresees positive demand momentum.
Ample scope of rising business and rising stock prices. Add.
Why apply for loss-making Inox Wind at Rs. 65 when turnaround energy co., Orient Green
Power, around Rs. 9 is available. It has strong promoters in the Shriram group of Delhi with a
proven business track record. Buy.
PFC posted a strong Q2 and declared a second interim dividend of Rs. 3 totaling to Rs. 5.25 for
H1FY23. Yet the share quotes way below its book value and a Bonus issue is not far off. An
investment by choice. Buy.
VIP Clothing has returned to the black in Q2FY23 and with softening cotton prices. The share
price is set to rise. Buy at every decline.
Lumax’s exceptionally good Q2 with NP rising over two-fold to Rs. 32.96 cr. on the back of rising
demand and margins overcoming the rising cost of materials and employees. The share has
potential to rise further. Add.
HAL’s Q2 NP jumped 44% to Rs. 1,221 cr. and an interim dividend of Rs. 2 has also been
declared. The bulging order book from the Ministry of Defence makes this company an attractive
buy.
Eco Recycling not only posted good Q2 results but is reportedly faring better in the current
quarter. FY23 profits are likely to beat estimates again. Its share price has already started
vibrating and may double in two years. Add.
Bajaj Healthcare posted good Q2 results. Rising Q2 depreciation of Rs. 13 cr. v/s Rs. 17.65 cr.
for full FY22 points to ongoing expansion and capex. Add this share to your portfolio before it is
too late.
West Coast Paper Mills,which acquired Andhra Paper from International APPM, is now a
subsidiary and in capex mode. It notched 195% higher Q2 EPS of Rs 32.5 and 281% higher H1
EPS of Rs 60.6, which may lead to FY23 EPS of Rs 120 on its small equity of Rs 13.2 cr. Buy for
30% gain.
NLC India (Neyveli Lignite), a public sector unit into mining of lignite and generation of power
through lignite-based thermal power plants, is undergoing expansions. It notched 174% higher
Q2 EPS of Rs 3 and 78% higher H1 EPS of Rs 7.1, which may lead to FY23 EPS of Rs 15+. Buy
for 30% gain.
Refex Industriesinto material handling of coal ash and manufacturer & re-filler of Refrigerant
gases has garnered 236% higher Q2 EPS of Rs 12.1 and 172% higher H1 EPS of Rs 18.8, which
may lead to FY23 EPS of Rs 35+ on robust prospects of the industry. Accumulate for 25% gain.
Heavy investment buying is witnessed in J Kumar Infra. It notched 67% higher Q2 EPS of Rs 9
and 76% higher H1 EPS of Rs 17.1 in H1, which may take FY23 EPS to Rs 36 backed by a strong
order book. Buy for 30% gain.
Rain Industrieshas a global presence with 2.4 MMTPA calcination capacity, 1 MMTPA CPC
blending capacity, 1.3 MMTPA coal tar distillation capacity, 0.6 MMTPA advanced materials
capacity and 3.5 MMTPA cement capacity across 8 countries in 3 continents. It notched 71%
higher Q3CY22 EPS of Rs 12 and 100% higher 9MFY22 EPS of Rs 40, could take CY22 EPS to Rs
50+. Buy for 30% gain.
Shilp Gravuresis the pioneer and undisputed leader in Electro-Mechanical Engraving, which is a
precision technology and has state-of-art Flexo plate processing technology from world leaders
Kodak and ESKO. It garnered 68% higher Q2 EPS of Rs 6.4 and H1 EPS of Rs 7.8 which may
take FY23 EPS to about Rs 20. The share could advance by 40%. Buy.
Antony Waste Handling Cellnotched 28% higher Q2 EPS of Rs 8.2 and 34% higher H1 EPS of
Rs 16.5 against Rs 24 in FY22 and is doing very well on getting good orders. It may notch FY23
EPS of Rs 38+. Accumulate for 30% gain.
BDH Industries,formerly Bombay Drug House, manufactures specialty formulations and has a
presence across various verticals and exports over 50% of sales. It posted 50% higher Q2 EPS
of Rs 5.1 and 40% higher H1 EPS of Rs 7.7 as against Rs 12.6 in FY22. Buy for 20% gain.
Talbros Engineering,leading manufacturer of Axle Shafts for OEMs of Passenger Vehicles,
Commercial Vehicles, Off-road and Tractor segments with its Light, Medium and Heavy-Duty
product range has posted 25% higher Q2 EPS of Rs 15 and 70% higher H1 EPS of Rs 31.6,
which may take FY23 EPS to Rs 65+. Buy for hefty gains.
GSFChas notched 24% higher Q2 EPS of Rs 7.2 (FV Rs 2) and 72% higher H1 EPS of Rs 15.8.
This could result in FY23 EPS of Rs 30 as against Rs 22.6 in FY22. Buy for steady appreciation.
Suryalata Spinning Millsis one of the largest producers of Synthetic Blended Yarns with an
installed capacity of 89,376 spindles. It notched 28% higher Q2 EPS of Rs 21.5 and 68% higher
H1 EPS of Rs 44.5 in H1, which could take FY23 EPS to over Rs 120 as against Rs 112 in FY22.
Buy for 30% gain.
DCB Bank posted 112% higher H1 profit of Rs.209.50 cr. v/s Rs. 98.70 cr. in H1FY22. Its NPAs
& provisioning have drastically reduced and has many surprises for the investors. Buy for good
returns in short to medium term.
Accelya Solutions provides technology platforms, software & services to the travel & transport
industry globally. It posted Q2 profit of Rs.33.11 cr. v/s Rs.25.17 cr. YoY. Buy for good return in
the medium to long term.
Sunil Healthcare posted PAT of Rs.4.47 cr. in Q1FY23 v/s only Rs.28 lakh in Q1FY22 a very big
jump of 1496%. Buy for very good returns in the short to medium term.
Dividend paying Donear Industries posted mind blowing 8838% higher net profit of Rs.16.09
cr. in H1FY23 v/s only Rs.18 lakh in H1FY22. Buy for very good returns in the short to medium
term.
Swarnsarita Jewels posted Q1 net profit of Rs.2.78 cr. v/s Rs.1.88 cr. in Q4FY22 a jump of
48%. Keep it on your radar.
FIEM Industries has come out with glittering results. This sole supplier of mirrors to Ola is
expected to fare better going forward. Its mouthwatering valuation makes it attractive.
NESCO exhibitions are back with a bang. The co. has Rs.1000 cr. hard cash. Can be a multi-
bagger in five years.
EID Parry can be slow but sure and steady investment. Conservative management, steady
expansion, ethanol story with Coromandel complimentary leaves no doubt about the prosperity it
can bring.
Microcap Rudra Global Infra is into defence sector, which is buzzing. Its subsidiary, Rudra
Aerospace and Defence Pvt. Ltd. is into Investment precision Castings. Its Q2 results on Monday
are likely to be superb.
Globalspace Technologies is focused on software product platforms & solutions based on
Cloud/ Mobility/ Artificial Intelligence, providing enterprise mobility solutions and Digital
Consulting primarily focused on Field Force Enhancement. With tie-ups with major companies in
diverse sectors, this counter appears highly undervalued.
Dhunseri Ventures is into PET Resin, Food & Infrastructure posted excellent H1 results with Net
profit of Rs. 392 cr. & Half yearly EPS of Rs 112. All its businesses are doing well and expansion
is going on. Stock may double within 1 year.
Hitachi Energy, power products and solution provider, posted average set of Q2 numbers with
EPS of Rs. 8.77, trading at a PE of 120x. Stock looks hugely expensive despite 25% correction,
Sell and buy NTPC for assured returns
Small cap Tatva Chintan Pharma Chem encashed the speciality chemicals bull rally last year
with its IPO, posted disastrous H1FY23 results as the topline declined 23% and bottom-line
crashed 70%. Share price will soon begin it. downward journey. Sell and stay away.
Axiscades Technologies – a small cap engineering product Solution Company, more than
trebled in the last six months despite a negative Q1 & Q2. Rumors have it that it is planning to
raise funds by diluting some equity. Sell and book profits before the news is out
Cosmo Ferrites, manufacturer and supplier of ferrites and a group company of Cosmo Films, a
100 bagger in less than two years (October 2020 –April 2022), is still expensive despite 60%
correction. It posted mediocre H1 results. Sell and buy GSFC for decent appreciation.
BLS International posted excellent Q2 as revenue grew 87.4% and PAT jumped 86% YoY to Rs
51 cr. The management has recommended 1:1 bonus. Add.

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Premium: Nifty sights 18605!

Posted By Money Times On November 12, 2022 @ 9:30 pm In Money Times | Comments
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Euphoria over lower US inflation data led to buoyancy in the global equity markets, including
India, which gained by more than 1100 points on Friday. Earlier during the week, the domestic
markets remained tepid on the back of poor quarterly numbers. The breadth of the market
remained neutral amidst higher volumes indicating that the rally was led by large cap stocks and
pivotals. The FIIs continued to remain net buyers in the cash and derivative segments. However,
the DIIs remained net sellers and were seen booking profits at higher levels.

The US markets, too, witnessed a smart rally on Thursday on the back of better-than- expected
inflation figures leading to hopes that the US Federal Reserve will not rampantly raise interest
rates now. Crude oil prices continued to move lower on the back of concerns over China’s virus
policy affecting the world’s biggest crude importer. Adding to the market gloom was a large build
up in US crude oil inventories. On the domestic front, the earnings season remained tepid during
this week as margin pressures weighed on earnings.

Technically, the prevailing positive technical conditions helped the markets record gains. The
MACD, KST and RSI all are placed above their respective averages on the daily and weekly
charts. Further, the Stochastic is placed above its average on the weekly charts. Moreover, the
Nifty remains placed above its 50-day SMA, 100-day SMA and 200-day SMA. The Nifty’s 50-day
SMA is placed above Nifty’s 100-day SMA and 200-day SMA, indicating a Golden Cross breakout.
These positive technical conditions, will lead to short covering and regular buying support
especially at lower levels.

However, the prevailing negative technical conditions still hold good. The Stochastic is placed
below its average on the daily charts. Further, the Stochastic is placed in the overbought territory
on the weekly charts. These negative conditions will lead to regular bouts of profit booking and
selling pressure especially at higher levels.

The +DI line is placed above the -DI line and above 35, indicating that buyers are gaining
strength. The ADX line is placed below 22, indicating that the current trend lacks strength. It
needs to move above 25 for the trend to gain strength. The market sentiment remains positive.
The psychologically important Nifty 18000 level remains a crucial support for the markets. As we
had indicated in the last issue, the Nifty tested the 18350 level and has almost closed around it
upon witnessing follow-up buying support. Nifty 18351 remains a crucial level. If it can sustain
above it, then the markets are likely to move higher and the Nifty could test its previous historic
top of 18605. Now it is important that regular follow- up buying support is witnessed at higher
levels. The earnings season and any positive news flow will help witness stock specific action and
follow-up buying support.
In the meanwhile, the markets would take cues from the earnings season, dollar index, news
flow on bond yields, crude prices, news flow on inflation, Ukraine-Russia war, global markets and
Rupee-Dollar Exchange rates.

The resistance levels for the Nifty are placed at 18351, 18605, 18675 and 18750 The Nifty’s
support is placed at 18115, 18000-17993, 17843, and 17700.

The resistance levels for the BSE Sensex are 61841, 62246, 62500 and 63000. The support
levels for the BSE Sensex are 61476 60846, 60412, 59942, 59655, 59329, 58713, 58292,
57992 and 57136,

NIFTY50 WEEKLY CHART

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Premium: Sensex to attempt a breakout above 62245

Posted By Money Times On November 12, 2022 @ 9:29 pm In Money Times | Comments
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Sensex Daily Trend DRV Weekly Trend WRV Monthly Trend MRV
Last Close 61795 Up 60320 Up 58135 Up 54418
Start Date – 17-10-2022 – 07-10-2022 – 29-07-2022 –
Start Level – 58410 – 58191 – 57570 –
Gain/Loss (-) – 3385 – 3604 – 4225 –
% Gain on
– 5.80 – 6.19 – 7.34 –
Trend
Last week, the Sensex opened at 61188, attained a low at 60425 and moved up to 61840 before
it finally closed the week at 61795 thereby showed a net rise of 844 points on a week-to-week
basis. The historical peak till now is 62245 and the same will be tested. Against the peak of
62245, the Sensex had registered a high of 61840 last week.

Weekly Chart

Expect 62245 to be tested and an attempt to breakout and close above 62245 could be
attempted this week. If that happens, then expect a rally to 69000 to be stretched in the year
2023. Volatility may continue to happen with optimism or pessimism ruling from time to time.

Higher range for the week can be 62282 and 63697 as resistance. Support for the week can be
at 61335-60866-60425.

LEVELS FROM NOW TO NEXT DIWALI 2023

R1-
S2 S1 Centre Point R2-
Resistance
Resistance
Last Close Panic Points Panic Points Balance Point
Target
Target
INDEX
21/10/2022 For For Can Be for
Book Book
Accumulation Accumulation Accumulation Profits
Profits

NIFTY 50 17576.30 12555.3 15722.8 17036.9 18890.4 22057.9

BSESENSEX 59307.15 42439.9 52993.9 57234.5 63547.8 74101.7
NIFTY BANK 40784.05 24994.8 34679.6 38259.9 44364.4 54049.2
S&P BSE 400
6660.23 4058.5 5719.2 6438.8 7379.8 9040.5
MIDS
NIFTY 500 15081.10 10367.7 13346.4 14590.3 16325.0 19303.7
NIFTY IT 28336.90 9940.2 23200.2 31323.4 36460.2 49720.2

YEARLY LEVELS FOR 2022 REMAIN TILL 31 DECEMBER 2022

Last Close
INDEX Support-3 Support-2 Support-1 Resistance Resistance
31/12/2021

BSE MIDCAP 24970.08 10256.1 19539.7 23393.0 28823.4 38107.0

BSE SENSEX 58253.82 32776.1 48861.0 55553.2 64946.0 81031.0
BSE SMLCAP 29457.76 8887.1 21421.3 25919.1 33955.5 46489.7
NIFTY 17409.95 9592.3 14519.7 16556.8 19447.1 24374.5
NIFTY 50 17354.05 9424.7 14432.4 16518.4 19440.1 24447.8
NIFTY 500 14996.20 7447.5 12178.4 14091.4 16909.3 21640.2
NIFTY BANK 35481.70 17361.2 29503.1 35666.3 41645.0 53786.9
BSE 400 MID-CAPS/ SMALL CAPS (BSE 400 MDSM)

Further rise of BSE MDSM will continue above 6922. The stocks from BSE 400 MSDM had to
struggle in spite of the strong gap-up rise of the frontline stocks on Friday. The stocks from BSE
400 MDSM have not been able to gain momentum as yet. Expect consolidation above 6471 from
the current close of 6808. Correction will resume below 6471 closing.

NIFTY MICRO CAP 250 (MICRO CAP)

Attempt of a breakout above 11394 could not happen as the high of last week was 11301
against the resistance of 11249-11394.

The range of volatility will continue between 11395 and 10389. Consolidation at 10808 or below
could happen before making an attempt of breakout above 11394. If that happens, then expect
13000 subsequently in time to come from the current close of 11099.

Strategy for the Week:

Traders long and holding, can maintain the stop loss at Sensex 59900. Expect 62245 to be
tested. Add long position if Sensex is above 62245 on Friday after 3.00 p.m. Accumulate at
60886 or below if the opportunity arises.
Punter Picks [1]

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Premium: G N A Axles Ltd.

Posted By Money Times On November 12, 2022 @ 9:26 pm In Money Times | Comments
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(Code: 540124) (FV: Rs.10) (CMP: Rs. 643.35)

G N A Axles Ltd., together with its subsidiary, manufactures and markets rear axle shafts,
spindles, and drive shafts for tractors and commercial vehicles (CVs). The company supplies
various rear axle shafts, other shafts, and spindles for light and heavy commercial vehicles and
off-highway vehicles. It also provides hollow spindles. It serves original equipment
manufacturers and tier-I suppliers in North America, South America, Europe, Asia, and Australia.
G N A Axles Limited was founded in 1993 and is headquartered in Hoshiarpur, India.

GNA’s Q2FY2023 results exceeded expectations on higher sales, leading to upbeat revenue,
EBITDA, and PAT growth by 8.6%, 12.6%, and 18.8% respectively. Net revenue increased
24.9% q-o-q to Rs. 375 crore led by higher domestic and export sales. EBITDA margin expanded
by 80bps q-o-q to 14.3%, driven by an improved product mix, cost reductions, and positive
operating leverage. There was significant improvement in gross margins, which expanded 470
bps q-o-q to 35.8% led by an improved product mix. As a result, EBITDA and PAT improved 24%
y-o-y and 36.2% y-o-y to Rs. 60 crore and Rs. 33.4 crore respectively.

Management has met its target to grow over 35% in revenue during FY22 though margins
declined by 200 bps to 14.2%. The company is currently operating at more than 80% capacity
utilisation and does not plan any major capex in the medium term. The company will prefer to
raise capacity by ~10% through debottlenecking.

GNA’s foray into the SUV segment would be an incremental growth driver going forward. It will
supply SUV axle shafts to its overseas CV customers who are already in the SUV business. Entry
into the SUV segment would not only provide an additional growth avenue but will also de-risk
its business model by reducing the cyclicality of the CV segment. Further, the company plans to
move into the domestic SUV segment in the second phase.

Our stance is positive on the company and we expect revenue and profitability to normalise from
Q2FY23 driven by better sales in the USA and Europe. The company has exposure to domestic
tractors and CV markets, which are expected to remain buoyant going forward. We have fine-
tuned our earnings estimates to build the impact of near-term supply challenges in the global CV
market. We expect GNA to grow at a faster pace than the industry, given its focus on enhancing
business with existing clients and the acquisition of new clients. GNA is likely to post a robust
27% CAGR from FY22-FY24E driven by a 12% revenue CAGR and 180 bps improvement in
EBITDA margin to 16% in FY24E.

Technical Outlook: G N A Axles looks very good on the daily chart and looks good fora medium
term investment pick as well. The stock has formed an elongated trading range pattern and a
breakout with volumes will lead the stock to a higher price. The stock is thus good to accumulate
for a higher price. It trades above all important moving averages like the 200 DMA on the daily
chart.

Start accumulation at this level around Rs. 660 and on dips to Rs. 600 will be good start for
medium to long term investment for a possible target of Rs 750+ in next 12 months.

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Premium: HDFC Bank Ltd.

Posted By Money Times On November 12, 2022 @ 9:25 pm In Money Times | Comments
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(Code:500180) (FV: Re.1) (Price: Rs.1610.95)

HDFC Bank Ltd. provides banking and financial services to individuals and businesses in India,
Bahrain, Hong Kong, and Dubai. It operates in Treasury, Retail Banking, Wholesale Banking,
Other Banking Business, and Unallocated segments. The company accepts savings, salary,
current, rural, public provident fund, pension, and Demat accounts; fixed and recurring deposits;
and safe deposit lockers, as well as offshore accounts and deposits, overdrafts against fixed
deposits, and sweep-in facilities. It also provides personal, home, car, 2-wheeler, business,
educational, gold, consumer, and rural loans; loans against properties, securities, rental
receivables, and assets; loans for professionals; government sponsored programs; and loans on
credit card, as well as working capital and commercial/construction equipment finance,
healthcare/medical equipment and commercial vehicle finance, dealer finance, and term and
professional loans. The company operates 6,378 branches and 18,620 automated teller
machines (ATMs) in 3,203 cities/towns. As of March 31, 2022, it had 21,683 banking outlets. The
company was incorporated in 1994 and is based in Mumbai, India.

Net Interest income grew by 18.9% y-o-y /7.9% q-o-q led by healthy advances growth of 23.4%
y-o-y/ 6.1% q-o-q and an improvement in margins. NIMs improved by 20bps q-o-q to 4.1%
mainly due to higher yields despite the rise in cost of funds. Yield on average earning assets
improved by 45 bps qoq while the cost of funds increased by 28 bps qoq. Around 55% of total
loans are floating rate loans while the balance 45% comprise fixed-rate loans. Repricing of the
floating rate book happened based on three/ six months depending upon the loan contract.
There should be an uptick in margins going forward.

Total operating expenses rose by 21% y-o-y/ 6.9% q-o-q mainly due to addition of branches,
employee addition and higher business volumes. The cost to income ratio stood at 39.2% versus
40.6% in the last quarter and 37% in Q2FY22. Operating expenses (Opex) to Average assets
stood at 2.1% versus 2% in the last quarter. The Bank expects C/I ratio should trend downwards
towards mid-30 in the medium term as tech led efficiencies kick in and the pace of accelerated
investments in branch & employee addition starts to come off.

Asset quality remained stable during the quarter. The Bank’s GNPA in absolute terms were up by
1.5% q-o-q & NNPA were flat q-o-q. GNPA/NNPA ratios improved marginally sequentially by
5bps/2bps reported at 1.23%/0.33%. Total annualised slippages ratio (bad loan formation) stood
at 1.5% (Rs.5,700 crore) versus 2.1% (Rs. 7,200 crore) in the last quarter. Recoveries and
upgrades amounted to Rs. 2,500 crore versus Rs. 3,000 crore in the last quarter. Write-offs
stood at Rs. 3,000 crore versus Rs. 2,400 crore in the last quarter. Restructured book stood at
0.53% of advances versus 0.76% in the last quarter. Asset quality across segments is holding up
well and the bank does not foresee any incremental pressure on the asset quality. Core credit
costs stood at 83 bps versus 92 bps in the last quarter. Total unutilized contingent provisions
stood at 0.7% of advances of ~Rs. 11,000 crore.

Net advances grew by 23.4% y-o-y/ 6.1% q-o-q. Among loan segments, Retail, Commercial &
Rural banking and corporate loans grew by ~20.2% y-o-y, 31.3% y-o-y and ~27% y-o-y
respectively. In the retail segment, personal, automobiles, payment products and loan against
property (LAP) segment grew by 23% y-o-y, 14% y-o-y, 21% y-o-y and 27% y-o-y, respectively.
Two-wheeler loan book fell by 1% y-o-y. The Bank believes retail growth should sustain going
ahead as demand environment is better across products.

Deposit mobilization was strong during the quarter. Total deposits grew by ~19.0% y-o-y /4.3%
qoq. CASA (current account, savings account) deposits grew by 15.4% y-o-y/ 3.4% QoQ. CASA
ratio stood at 45.4% versus 46.8% in Q2FY22. Term deposits grew by 22.1% y-o-y /5.1% QoQ.
Overall retail deposits grew by 20% y-o-y and accounts for 83% of total deposits.

Technical Outlook: HDFC Bank Ltd. is very good on the daily chart, which looks good as a
medium-term investment pick as well. The stock has formed a saucer pattern and a breakout
with volumes will lead the stock to a higher price. The stock is thus good to accumulate for the
higher price. The stock trades above all important moving averages like the 200 DMA on the
daily chart.

Start accumulating at this level @ Rs. 1500 and on dips to Rs1450 will be a good start for
medium to long term investment and possible target of Rs 1650+ in the next 12 months.

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Premium: Dhunseri Ventures Ltd: A Venture of Profits!

Posted By Money Times On November 12, 2022 @ 9:22 pm In Money Times | Comments
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Industry Focus:

Holding companies create immense wealth to the promoter group as well as to their
shareholders. In addition to its role of being the group’s anchor holding company, Dhunseri
Ventures Ltd. (DVL) has impressive manufacturing capacity of PET resin in association with the
global leader-IVL group. Production of PET polymer is dominated by few companies. Indorama
Ventures (IVL) was the largest producer of PET polymer globally with an installed production
capacity of 4.2 million tons in 2017. The other leading companies are MG Chemical with an
installed capacity of 2.7 million tons, Zhejiang Yisheng Petrochemical Co. (2.5 million tons), Sang
Fang Xiang (2.1 million tons) and DAK America (1.8 million tons). After these 5 top majors, DVL
occupies its space as a global player with three manufacturing units India, Egypt and Africa.
Total consumption of PET resins which was 23.5 million tons in 2016 has recorded a growth rate
o 6 % CAGR. In value terms, it is expected to reach $8 billion by 2027.

Company Focus

DVL belongs to the well-known DHUNSERI group of companies which has 4 listed companies-
Dhunseri Ventures Ltd. (DVL), Dhunseri Tea & Industries Ltd. (DTIL), Dhunseri Investments Ltd.
(DIL) and Naga Dhunseri Group Ltd. (NDGL). The first group company-Dhunseri Tea Company
Ltd. (DTCL), was incorporated in 1916 for cultivation of Tea and manufacture of Pharmaceuticals.
Through continuous acquisitions, amalgamations and business restructuring over the last 105
years, DTCL emerged as these four listed companies. Over the years, the group’s second focus
shifted from pharmaceuticals to PET resins. Now, the group has evolved as a major player in Tea
(in the name of Dhunseri Tea & Industries Ltd.) and as well as a PET resin manufacturer in India
and the globe as DVL.
DVL itself has three subsidiary companies and three associate companies.

Subsidiary Companies

Dhunseri Infrastructure Ltd. (DIL) was incorporated on 8.2.2013 as a Wholly Owned

Subsidiary of Dhunseri Ventures Limited. It started developing an Information Technology Park at
the Kolkata IT Park, SEZ, Bantala. It had invested Rs 48.49 crore on land and development with
an equity of Rs 9.55 cr. However, its operations are kept on hold for the time being.

Twelve Cupcakes Pte. Ltd. was incorporated on 8.5.2011 having its registered office at 5 Burn
Road #02-01 Tee YIH JIA Food Building, Singapore (369972) for manufacturing of Breads, Cakes
and Confectionery items. Its equity stands at S$ 5,965,000. It has 30 outlets as of 31st March
2022.

DVL USA Inc. was incorporated as a wholly-owned subsidiary of the DVL in USA for exploration
and expansion of the Cupcake business. Further, Twelve Cupcakes Pte. Ltd. (subsidiary) has
infused funds in DVL USA Inc. in the form of 20,800 equity shares at USD 10 per equity share at
par on 7th March 2022. Accordingly, DVL USA Inc. has become a step-down subsidiary of the
company.

Dhunseri Poly Films Pvt. Ltd. was incorporated on 28th November 2020 with its registered
office at Dhunseri House, 4A Woodburn Park, Kolkata -700 020 for implementing the new project
of manufacturing of Polyester Films i.e. BOPET which is in the first phase of expansion at an
estimated capex of Rs 400-500 crore. This company is in the process of setting up a 10.6 Metre
Polyester Film BOPET and production is likely to commence in the first quarter of FY 2023-24. It
is also in the process of setting up 2 BOPP production plants at Panagarh, West Bengal, with a
targeted annual production of 1,00,000 to 1,10,000 tons.

Associate Companies

IVL Dhunseri Petrochem Industries Private Ltd. (IDPIL) was originally promoted as South
Asian Petrochem Ltd. by the group for setting up a plant to manufacture 4,80,000 TPA of bottle
grade PET Resin at Haldia, West Bengal on 5-6-96. Subsequently, it was made as subsidiary of
DVL through a share swap ratio of 1:10. Later, to overcome its raw material constraints and to
expand its capacity, the Indorama Group of Indonesia was taken in as a 50:50 JV Partner. IDPIL
is now second only to Reliance as the largest PET resins manufacturer in India with plants at
Haldia in West Bengal and Panipat in Haryana with a combined capacity of 6,96,000 TPA.

IVL Dhunseri Polyester Company S.A.E.: DVL had set up Egyptian Indian Polyester Company
S.A.E (EIPC SAE) to manufacture PET resins of 540,000 TPA. However, due to unrest in Egypt
coupled with raw materials supply problems, its operations were suspended for two years. After
a 50:50 Joint venture with the global leader Indorama Ventures to restart its operations. This
subsidiary, EIPC SAE, became an associate company, insulating the parent company from its
business risks. Subsequent to this development, the company could clear its entire debt of $ 197
million. It had also commissioned another plant in Africa to manufacture PET.

Performance Focus:
Given the reorganisation of its businesses w.e.f. 1-4-2019, only royalties from the sale of PET
resin sold by the associate companies along with dividends, other payments and its own profits
from treasury operations are reflected by the company for FY22. The PET resin sale business
was posted in the books of associate companies.

The company has recorded revenue of Rs 120.36 crore in the trading of resins as polymers in
FY22. It recorded a revenue of Rs 84.53 crore from the food and beverages segment. This share
of food and beverages is expected to rise from this fiscal onwards.

Its financial performance in the past 5 years is given in the following table.

Looking at its performance, it recorded an improved performance in the recent four quarters as
shown in the table without any contribution from its subsidiaries to the bottom line.
Contributions from its own subsidiaries will be meaningful only after FY23.
Performance Potential:

A look at the company’s performance in the first half of this fiscal (H1FY23) gives clarity on the
improvement of its performance in the current fiscal.
Its performance potential appears bright if we take a closer look at its subsidiaries and associate
companies. Going by the trend of its performance in the recent quarters, DVL is likely to record
FY23 EPS of Rs 225+.

More than that, look at the value of DVL’s investments in the equity of its subsidiaries and
associate companies and treasury investments in listed companies totalling Rs 1421.58 crore at
cost as on 31-3-2022. It is certainly a gold mine for the company. If the market value of these
investments were to be recorded, the book value of its share will exceed Rs 1000 instead of Rs
707 as shown at the beginning of this report. Even if we ignore the above mind-boggling facts, in
the light of the H1FY23 performance, the company is likely to record an EPS of above Rs 225 in
FY23. Take a call on its share price after the release of its FY23 results.

Share Price Potential:

Its share price movements in the last one year is given below.
On 19-01-22 when the BSE Sensex closed at 60098.82 level, the DVL share was trading at its
52-week high of Rs 316. In spite of its vastly improved fundamentals since then, this share is
available 20.8 % lower from that price, which offers scope for really impressive returns in the
short term, medium term and long term. Still not convinced? Read on. Look at the company’s
share performance in comparison with that of BSE Sensex in five time periods in the last one
year.

Although the stock started to outperform the benchmark index in the last 11 months, over the
last one year it recorded 13.5 % losses in contrast to the gain of 0.4% recorded by the SENSEX.
Look at its PE Ratio, its trailing 12 months performance was at 56% discount to its own 5-year
performance and is still worse at 92 % discount to that of the BSE SENSEX.
In its equity, promoters holding is steady at 75%, insurance companies & DIIs hold 2.09 %,
together. FIIs started showing interest in this stock since the June 2021 Quarter onwards and
hold 0.52 % as at the end of September 22 quarter. Balance 22.39% is with retail investors.
Once the big funds notice the company’s massive investments in PET resin manufacturing, they
are bound to keep it on their radar. Ignoring such a major producer certainly spells poor
investment sense.

Comparison of its valuation data points with those of its peers will give better clarity in the
subject matter.

The DVL share is trading at a PE Ratio of just 1.49x against the industry average PE Ratio of
8.68x. Considering its Price: Book Value Ratio, it is the only stock available at a PB Ratio of less
than 1, even lower than 0.5 at 0.39 with the recorded lower book value of Rs 707 when in reality
its book value is Rs.1000+ if its investments in subsidiaries and associate companies were to be
valued at market prices.
Apparent gross under-discounting of the Dhunseri Ventures stock at the market place cannot last
long. More so, looking at its investor friendly dividend payouts as well as liberal bonus issues
(1969-bonus of 2:5, 1974-bonus of 1:2, 1976-bonus of 1:3, 1985-bonus of 1:2 and
1992-bonus of 1:1), the prevailing gross under-discounting of its share will certainly be a thing
of the past much sooner than later.

Looking at the stock’s technical aspects, its momentum oscillators give Strong Buy signals. The
remaining two-trend oscillators and volatility aspects also give Strong Buy signals as per the
global research portal investing.com.

In the event of the management deciding to unlock the company’s present investments in its two
associate petrochem companies, windfall profits are there for sure for the investors. There is no
reason either with the company or its management as to why investors cannot look forward to
its share price exceeding its intrinsic book value (Rs 707+) over one year’s holding.

Hence, the share of Dhunseri Ventures Ltd. deserves a ‘Strong Buy’ call with overweight rating at
the current level though a protective stop loss level of Rs 235 may be factored in the event of
any unexpected serious market crash.

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Premium: AYM Syntex Ltd.: Undervalued stock!

Posted By Money Times On November 12, 2022 @ 9:24 pm In Money Times | Comments
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(Code: 508933) (FV: Rs.10) (Price: Rs 78.35)

AYM Syntex is a leading speciality synthetic yarns manufacturer with world class manufacturing
technology for multipolymer yarns. It is the largest Indian manufacturer of Bulk Continuous
Filament Yarns and a leading Multipolymer Yarn dyeing house in Asia. The company
manufactures a broad range of fibres. Its product portfolio includes Bulk Continuous Filament
yarn (BCF), Industrial dyed yarn (IDY), Automotive yarn, textile yarn, packaged dyed yarn, and
sewing yarn. We are highly bullish on this counter due to following reasons:

Focus on Niche products with global outreach

The company plans to focus on using its current spinning capacities for niche or higher margin
products while outsourcing the more commodity-oriented products. The company exports its
products to more than 50 countries across the globe. It exports to countries like Japan, China,
Australia, Singapore, Mauritius, Malaysia, UAE, UK, USA, Canada, Brazil, France, Spain and many
more.

Wide manufacturing facilities and Client concentration

It owns 2 manufacturing facilities in Silvassa UT and Palghar in, Maharashtra.

It undertook a major capital expenditure of Rs.100 crore, which increased the capacity of BCF
yarn by 50%. It also managed to produce 2.5 times more IDY yarn. The Company has an
established clientele and serves companies like Page Industries, Godfrey Hirst Australia, etc. Its
customer base is well distributed where top 5 clients accounted for 25% of its total revenue
while top 10 customers accounted for 36%.

Financials

Balance sheet (Rs in crore)

Particulars FY19 FY20 FY21 FY22

Share Capital 46 50 50 50
Reserves 249 294 308 360
Borrowings 311 261 226 290
Other Liabilities 199 211 252 227
Total 805 815 836 927
Fixed Assets 449 440 419 459
CWIP 22 7 17 15
Investments 15 – – –
Other Assets 319 367 400 453
Total 805 815 836 927
P/L Summary (Rs in crore)

Particulars FY19 FY20 FY21 FY22

Revenue 992 1,028 947 1,491
EBITDA 78 93 94 166
PAT 6 17 14 51
Fundamentals

Company has good ROCE of 18.4% and ROE of 13.6%. Despite being the largest manufacturer
of Bulk Continuous Filament Yarns in Asia, its stock trades at PE of just 8.37x against the
industry average PE of 14.8x. It has D:E ratio of 0.71x and reported PAT growth of 105% CAGR
over last 3 years. Promoters are majority shareholders with 74% stake, FIIs hold 0.22% and DII
hold 0.15%. Considering that the company is a market leader and its stock is available at low
valuations, it can make a good move till Rs. 200 once identified by the public at large.

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Premium: Gujarat State Fertilizer & Chemicals: Growth

Booster!
Posted By Money Times On November 12, 2022 @ 9:23 pm In Money Times | Comments
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(Code:500690) (FV:Rs.2) (Price: Rs.127.50)

Gujarat State Fertilizer & Chemicals Ltd. (GSFC), a state-owned PSU incorporated in 1962, was
the first industrial complex in India set up in the joint sector, the first company to set up fertilizer
plants within a short span of two years after getting requisite approvals. It was also the first
industrial project to secure direct and active equity participation of farmers, the first fertilizer
unit to get assistance from IDBI’s Assistance Fund, and the first company to adopt the Steam
Naphtha Reforming process for manufacturing Ammonia. It also set up the first DAP fertilizer
complex in India at Sikka, Jamnagar, on the west coast of Gujarat.

Its technical edge and engineering prowess with resources acquired during its very first decade
have been the catalysts in providing impetus to its expansion and diversification strategies over
the next six decades. GSFC is a leading producer of fertilizers – urea and complex fertilizers
(phosphatic fertilizers) – and several industrial chemicals such as caprolactam, melamine and
cyclohexanone. It is the largest producer of caprolactam and melamine in the country. Its
fertilizer portfolio comprising high margin phosphatic fertilizers (NPK grade) such as Ammonium
Sulphate and 20:20:0:13 (NPK grade with Sulphur) offer stability during the downcycles in its
chemicals business.

Now, with the resumption of Chinese supplies, profitability of its chemicals segment has been
impacted due to higher fixed costs, because of the vintage plant, high raw material costs and
falling realizations of key products. For instance, GSFC, which is still the only player in
Caprolactam, has seen significant pricing pressure due to cheaper imports from China. The
product, which accounted for the lion’s share of its profits for about a decade, has now dwindled.
However, products such as technical-grade urea and nitric acid have shielded the impact to an
extent. Nitric Acid price for Indian players has more than trebled in the past year, according to
data from Chemanalyst. It has zoomed from ₹17,690/MT in June 21 to ₹59,550/MT this year and
is ruling at a one-year high.

Future Capex – GSFC plans capex of ₹720 crore over the next two years. It is expanding its
ammonium sulphate facility by adding another train with a capacity of 400 TPD. It is also
expanding its sulphuric acid capacity by 1,800 TPD, which goes into making the phosphoric acid
used in complex fertilizers. It is also augmenting its phosphoric acid capacity by 600 TPD. This
investment will support its growth over the next 3-5 years.

Investment Rationale: GSFC has a track record of uninterrupted dividend distribution policy
for close to two decades, 5 bonus issues since inception, strong balance sheet with a net cash
surplus (debt of ₹231 crore with cash equivalents of ₹307 crore). Above all, it is the leader in its
own segment with two fantastic business complementing each other during down cycles.

The GSFC stock can easily provide 30% to 50% returns in the next 12 to 18 months. A solid
fertilizer and chemical combo worth considering at every decline.

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Premium: IOL Chemicals & Pharmaceuticals Ltd.: A Good

investment
Posted By Money Times On November 12, 2022 @ 9:12 pm In Money Times | Comments
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(Code: 524164) (FV: Rs.10) (CMP: Rs.363.65)

Incorporated in 1986, IOL Chemicals & Pharmaceuticals Ltd (IOL) is a leading pharmaceutical
company and a major manufacturer in the speciality organic chemicals space. It is one of the
largest producers of ethyl acetate (1,00,000 TPA) and Iso Butyl Benzene (12,000 TPA). It is an
ISO 9001:2015, 14001:2015 and BS OHSAS 18001:2007 certified company. Mr. Varinder Gupta
is the Managing Director of the company.

IOL has forward integrated into the pharma segment with end products such as ethyl acetate,
IBB, mono chloro acetic acid (MCA) and acetyl chloride used as key raw materials for making
Ibuprofen. Its manufacturing units are located in Punjab. Its DSIR (Department of Scientific and
Industrial Research) approved R&D centre is equipped with advanced and analytical instruments.
Its Ibuprofen plant is certified by the USFDA and EUGMP.

Its products include APls, Ibuprofen, Metformin, Fenofibrate, Clopidogrel, Lamotrigine, Ethyl
Acetate, IBB, Mono Cholo Acetic Acid (MCA) and Acetyl Chloride.

IOL is the world’s only backward-integrated Ibuprofen producer that manufactures all
intermediates and key starting materials at one location. Its state-of-the-art facilities stretch
across over 100 acres of land and each of its plant units are operated and maintained as per the
current GMP (cGMP) standards.

The company has a presence in over 40 countries across the globe, which includes Bangladesh,
Thailand, UAE, Syria, Singapore, Hong Kong, Pakistan, Egypt and many others.

IOL has a number of prestigious clients such as Ranbaxy Labs, Dr Reddy’s Labs., DS Group,
Cipla, Uflex Industries, ITC Ltd., ICI Paints, Asian Paints, Pidillte, Rallis India, Hindustan
Polymide, Gujarat Super Phosphate and Avon Organics Ltd. etc.

IOL’s overseas customers are spread out across several countries including the UK, Belgium,
Hungary, Spain, Germany, Italy, Netherlands, Switzerland, Poland, Ireland, USA, Peru, Brazil,
Argentina, Colombia, Indonesia, South Korea, Thailand, Bangladesh, Turkey, U.A.E., China, Hong
Kong, Egypt etc. Its products are sold primarily to branded Generic formulators both in India and
overseas.

IOL has an equity capital of Rs.58 crore with reserves of Rs.1331 crore and its share book value
works out to Rs.83. Promoters hold 43.69% of the equity, FIIs hold 2.41%, which leaves 53.9%
with the investing public.
For Q1FY23, IOL reported 26% higher PAT of Rs.34 crore on sales of Rs.565 crore fetching an
EPS of Rs.5.94%. For FY22, it reported PAT of Rs.165 crore on 11% higher sales of Rs.2184
crore with an EPS of Rs.28.22.

IOL sells its products primarily to Branded Generic formulators in India and abroad. It exports to
Austria, Belgium, UK, Hungary, Spain, Germany, Italy, Netherlands, Switzerland, Portugal,
Poland, Ireland, USA, Australia, Chile, Peru, Brazil, Argentina, Colombia, Mexico, Indonesia,
South Korea, Thailand, etc. Exports constitute ~50% of its total revenue.

In the last few years, the Indian chemical system has gained a lot of prominence in the global
market. The Indian chemical sector has expanded and is the prime focus of other industries like
agriculture, pharmaceuticals, food processing and several others.

Based on the above report, investors are recommended to buy the IOL Chemicals stock at the
CMP for 40% likely gain in the medium to long term

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Premium: DCB Bank Ltd.: Banking on Growth!

Posted By Money Times On November 12, 2022 @ 9:11 pm In Money Times | Comments
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(Code: 532772) (FV: Rs.10) (Price: Rs.117.60)

DCB Bank is a new generation private sector bank with 410 branches as on 30th September
2022 of which 10 new branches were added in H1FY23 across India. It is a scheduled
commercial bank regulated by the Reserve Bank of India and is professionally managed and
governed. DCB Bank has contemporary technology and infrastructure including state-of-art
internet banking for personal as well as business banking customers.

DCB Bank has deep roots in India since its inception in 1930s. Its promoter and promoter group
is the Aga Khan Fund for Economic Development (AKFED) & Platinum Jubilee Investments hold
below 15% stake. AKFED is an international development enterprise. It is dedicated to
promoting entrepreneurship and building economically sound companies. DCB Bank had raised
Rs 186 crore through an IPO in 2006. The issue was oversubscribed 35 times.

DCB Bank’s business segments are Retail, micro-SME, SME, mid-Corporate, Agriculture,
Commodities, Government, Public Sector, Indian Banks, Co-operative Banks and Non-Banking
Finance Companies (NBFC). DCB Bank has around 9,50,000 customers.

The Bank’s network of customer friendly branches are situated across Andhra Pradesh, Bihar,
Chhattisgarh, Daman, Delhi/ NCR, Goa, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh,
Maharashtra, Odisha, Punjab, Rajasthan, Silvassa, Tamil Nadu, Telangana, Uttar Pradesh,
Uttarakhand and West Bengal.

In terms of products, the Bank is focused on growing Home Loans, Business Loans, loans against
property (LAP), Gold Loans, MSME/SME (CC/OD/Term), KCC (Kisan Credit Card), Tractor Loans,
Loans to MFls (Micro Finance Income) and MFI-BC Loans. In FY22, the Bank also embarked on
lending in TReDS (Trade Receivables Discounting) platform and Gold Loans through Co-lending
partnership.

DCB’s key competitive strengths include: (a) niche lender in serving the under-penetrated self-
employed segment;(b) Largely secured small-ticket size loan book resulting in low default
damage;(c) Pan-India presence enabling the bank to mitigate the risk of geographical
concentration;(d) Granular book with one of the lowest advances and deposits concentration
amongst peers; (e) Experienced and competent management.
DCB’s focus on maintaining asset quality and improving collections along with its cautious
approach to growth slowed disbursements, and consequently its growth. However, with macros
normalizing, the bank has picked up momentum in terms of both advances and deposits.
For Q3FY23 net profit rose smartly by 73% to Rs 112.4 cr. on 14% higher income of Rs 1099 cr.
fetching an EPS of Rs 3.6. During H1FY23 net profit rose smartly by 112% to Rs 209.5 cr. on
11% higher income of Rs 2141 cr. fetching an EPS of Rs 6.7.

For FY22, net profit fell 14% to Rs 287.7 cr. on 2% higher income of Rs 3965 cr. and the EPS
was Rs 9.2. DCB recommended a dividend of 10% for the year ended March 31, 2022.

It earned Net Interest Income (NII) of Rs 411 Cr. in Q2FY23 as against Rs 323 Cr.(YoY). Net
Interest Income in FY22 was Rs 1,358 Cr. Net Interest Margin (NIM) is at 3.88% in Q2FY23. NIM
was at 3.56% in FY22.

In Q2FY23, Other Income (Fee) was at Rs 99 Cr. as against Rs 98 Cr. in Q2FY22 last year. During
Q2FY23, Advances grew year-on-year 18% at Rs 31,291 cr. and Deposit growth year-on-year
was at 16% at Rs 36,960 cr.

The Bank has been steadily growing the Retail Term Deposits (less than Rs 2 crore) and reducing
Bulk Deposits. As at Q2FY23, the Top 20 deposits ratio was at 6.88%. In Q2FY23, the Bank
achieved CASA growth of 16% to 29.34% YoY (25.38% in Q2FY22). CASA Ratio was at 26.75%
as on FY22.

Return on Equity Return on Equity (ROE) (Annualized) was at 11.47% in Q2FY23. ROE was at
7.92% in FY22. The Capital Adequacy continues to be strong and as on Q2FY23 the Capital
Adequacy Ratio was at 17.91% (with Tier I at 14.94% and Tier II at 2.97% as per Basel Ill
norms).The Gross NPA as at Q2FY23 is down to 3.89% in Q2FY23 as against 4.32% in FY22. The
Net NPA is 1.54% as against 1.97% in FY22. Since the Bank mostly has a secured portfolio, the
Bank continues to post a strong performance in Recoveries and upgrades.

In Q2FY23 while NPA slippages are Rs 453 Cr., Recoveries and Upgrades were Rs 397 Cr. The
month-on-month slippages excluding Gold Loans have steadily declined and is nearly back to
pre-Covid-19 levels. DCB continues to improve on Collections, Recoveries and Upgrades. The
Provision Coverage Ratio (PCR) as on September 30, 2022 was at 72.83% and PCR without
considering Gold Loans NPAs was at 74.21%.

The pick-up in economic activities has improved collections. This coupled with better recoveries
along with moderation in slippages resulted in better asset quality. During the year, while
slippages from the gold portfolio were higher, the bank remains confident of recovery in that
portfolio by way of auction/sale of collateral, thereby easing the stress on the asset quality.
Thus, despite multiple headwinds, GNPA remained at a manageable level of 3.89% (FY22 was
4.3%).

DCB is focused on the under-penetrated self-employed segment; it has presence in key

SME/MSME markets with huge growth potential; and improving branch level productivity to
support profitability

Despite operating primarily in the self-employed segment, DCB has been able to manage the
asset quality stress fairly well. The collections have held up well and with the trend likely to
sustain, the secured nature of the bank’s restructured book hints at credit costs moderating
going forward.

With the bank’s unabated focus on collections and adoption of a cautious approach to growth,
DCB ended FY22 and H1FY23 with a strong recovery pipeline and moderating slippages. This
hints at a strong asset quality improvement going forward along with promising credit growth
prospects.

The positive trends in terms of a strong recovery pipeline and moderation in slippages will aid in
asset quality improvement. With a strong Q3 & Q44 results, going forward DCB is all set to
garner an EPS of Rs 16 in FY23.

At the current market price of Rs 117, the DCB Bank share is traded at a forward P/E of 7.3x as
against the industry average P/E of 21x for private banks. A reasonable P/E of 9x could take its
share price to Rs 144 in the medium term. The 52-week high and the low of the share has been
Rs 123\68.

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Premium: Archidply Industries Ltd.

Posted By Money Times On November 12, 2022 @ 9:10 pm In Money Times | Comments
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(Code: 532994) (FV: Rs.10) (Rs.70)

Incorporated in 1976, Bengaluru based Archidply Industries Ltd.(APIL) manufactures and sells
wood panel and decorative surfacing products in India. It operates through two segments, Wood
Based Products and Paper Based Products. The company’s wood products include plywood
products, such as MR grade, BWR, shuttering, densified film faced, fire retardant, Archid Club
Plus teak, Archid Flexiply, and Lamy Ply and block board plywood; and block board flush doors,
including BWR and MR grade block boards, BWP flush doors, and teak block boards. Its wood-
based products also comprise pre-laminated boards consisting of pre-laminated particle, pre-
laminated MDF, plain particle, and veneered particle boards; decorative laminates such as
Archidlam, post forming, switch board, compact, Archid Edge, fire retardant, chalk marker grade,
liner, and Silvilam laminates; and decorative veneers. The company’s paper products include
laminated sheets.

It has an equity base of Rs.19.87 crore that is supported by reserves of around Rs.79.84 crore.
The promoters hold 69.89% of the equity capital, which leaves 30.11% stake with the investing
public.

Financial Performance

Q2FY23 Q2FY22 H1FY23 H1FY22

Rs./Cr. Rs./Cr. Rs./Cr. Rs./Cr.

Sales 103.45 80.57 198.56 130.13

Profit Before
4.06 3.60 9.44 4.22
Tax
Tax 1.06 0.93 2.05 1.10
Profit After
3 2.67 7.38 3.12
Tax
EPS 1.51 1.34 3.72 1.57
During Q2FY23 & H1FY23, it posted superb numbers. For Q2FY23, APIL posted higher PAT of
Rs.3 crore as against Rs.2.67 crore in Q2FY22 on higher income of Rs.103.45 crore fetching an
EPS of Rs.1.51. For H1FY23, it posted 136.53% higher PAT of Rs.7.38 crore as against PAT of
Rs.3.12 crore in H1FY22 on 52.58% higher income of Rs.198.56 crore and an EPS of Rs.3.72.

At the CMP, APIL trades at P/E multiple of 11x.

Based on the above financial performance and parameters, the APIL share looks quite attractive
at the current level. Investors can invest in this stock with a stop loss of Rs.56. The stock can
give good returns in short to medium term.

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Premium: Donear Industries Ltd.

Posted By Money Times On November 12, 2022 @ 9:08 pm In Money Times | Comments
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(Code: 512519) (FV: Rs.2) (Price: Rs.63.50)

Donear Industries Ltd. (DIL) manufactures and sells suiting’s, trousers, and shirting fabrics for
men and women. The company operates through two segments, Manufacturing and Dealing in
Textiles, and Rental Property. Its products include polyester viscose blended fabrics, polyester
cotton blended fabrics, polyester fabrics, cotton high value plain and yarn dyed shirting fabrics,
and cotton plain and yarn dyed bottom-wear, as well as polyester wool, wool rich, and all wool
fabrics. The company offers fabrics under the Donear brand name; and garments under the
brand name of Dcot. The company also exports various blends of fabrics, including wool,
polyester/viscose, polyester/wool, polyester/cotton, poly/visc/cotton, poly/visc/lycra,
poly/wool/lycra, cotton, linen cotton, linen, and cotton modal to wholesalers, distributors,
garment manufacturers, retailers, buying houses, and departmental stores in approximately 37
countries worldwide.

It has an equity base of Rs.10.40 crore that is supported by reserves of around Rs.140.13 crore.
The promoters hold 74.56% of the equity capital, which leaves 25.44% stake for the investing
public.

Financial Performance

Q2FY23 Q2FY22 H1FY23 H1FY22

Rs./Cr. Rs./Cr. Rs./Cr. Rs./Cr.

Sales 224.06 140.72 401.65 214.04

Profit Before
12.43 5.05 21.62 0.15
Tax
Tax 2.90 1.22 5.52 -0.03
Profit After
9.53 3.83 16.09 0.18
Tax
EPS 1.83 0.74 3.10 0.04
For Q2FY23 & H1FY23, DIL has posted superb numbers. For Q2FY23, it posted 149% higher PAT
of Rs.9.53 crore as against Rs.3.83 crore in Q2FY22 on 59% higher income of Rs.224.06 crore
fetching an EPS of Rs.1.83. For H1FY23, it posted 8838% higher PAT of Rs.16.09 crore as
against PAT of Rs.0.18 crore in H1FY22 on 88% higher income of Rs.401.65 crore and an EPS of
Rs.3.10.

At CMP, DIL trades at P/E multiple of 8.6x and paid 10% dividend for FY22.
Based on the above financial and performance parameters, the DIL share looks quite attractive
at the current level. Investors can invest in this stock with a stop loss of Rs.52. The stock can
give good returns in short to medium term.

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Premium: BF Utilities Ltd.: Records sharp rise!

Posted By Money Times On November 12, 2022 @ 9:07 pm In Money Times | Comments
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(Code: 532430) (FV: Rs.5) (Price: Rs. 393.10)

Company Background: BF Utilities Ltd. (BFUL) is a part of USD 2.4 billion Pune based Kalyani
Group with Bharat Forge Ltd. as its flagship company. BF Utilities Ltd., together with its
subsidiaries, operates as a power producer. It generates electricity through non-conventional
sources, such as wind. It is also engaged in the development of infrastructural facilities primarily
like toll roads and expressways. BF Utilities Limited was incorporated in the year 2000 and is
headquartered in Pune.

Equity capital, reserve & promoter holding: The Company has an equity of Rs.18.83 crore.
The promoters hold 56.74% while the investing public holds 43.26% stake in the company.

Performance: During Q2FY23 & H1FY23 it has reported superb numbers. For Q2FY23, BFUL
posted higher PAT of Rs.26.93 crore as against Rs.9.28 crore in Q2FY22 on higher income of
Rs.160.58 crore and an EPS of Rs.7.15. During H1FY23, it posted higher PAT of Rs.64.39 crore
as against Rs.6.85 crore in H1FY22 on higher sales of Rs.354.81 crore and an EPS of Rs.17.09.

Conclusion: At CMP, BFUL trades at P/E multiple of 13.7x. Based on above financial and
performance parameters, the BF Utilities share looks quite attractive at the current level and
investors can accumulate this share with a stop loss of Rs.330 for an upper target of Rs.535 to
575 in the next 12 to 15 months.

Stock Info:

CMP (Rs.) 392.95

BSE Code 532430
NSE Symbol BFUTILITIE
Sector Construction
52-week H/L (Rs.) 489.90/262.90
Face Value (Rs.) 5
Market Cap
1473
(Rs./Cr.)
Shareholding Pattern: (In %)

Particulars Sep-22 Jun-22 Mar-22

Promoter 56.74 56.74 56.74
Public 43.26 43.26 43.26
Performance Review:
 Q2FY23 Q1FY23 Q2FY22 H1FY23 H1FY22
Total Income 160.58 194.23 113.99 354.81 193.35
PBT 57.72 84.54 19.53 142.26 111.25
Tax 2.46 3.20 1.71 5.66 2.58
PAT 26.92 37.46 9.28 64.39 6.85
EPS (Rs.) 7.15 9.95 2.46 17.09 1.82

Article printed from Money Times: https://moneytimes.in

URL to article: https://moneytimes.in/moneytimes/bf-utilities-ltd-records-sharp-rise/

Copyright © 2019 Money Times. All rights reserved.