Remember Wealth Creation Report 2021 will be released any time after market hours on November 3, 2021. Still, time to subscribe.
Gokaldas Exports in Q2 has clocked 30, 80 and 230 per cent increase in its sales, operating profit and net profit respectively. On TTM basis this is the highest ever recorded financial performance in last 13 years. With such fantastic numbers and the recent QIP in which SBI MF and NIPPON have participated, this counter is the best bet in the fast-moving textile sector.
DCM Nouvelle, a leading manufacturer & exporter of 100% cotton carded and combed yarns, has declared never-before Q2 numbers as sales increased 60 per cent, operating profit 1012 and net profit, hold your breath, a whopping 10,513 per cent (from Rs 39 lakh to Rs 41.39 crore). In H1FY22 the profit is Rs 70 crore whereas in H1FY21 it was a loss of Rs 7 crore. The EPS comes around Rs 37.84 and assuming the company will repeat this feat during the second half, the stock is trading at just a 3.5 PE.
A good candidate on decline.
Kolte-Patil Developers has its presence in the fast-developing markets of Pune, Mumbai, and Bengaluru. Its Q2 numbers are mind-boggling as sales went up 370 percent up. It has registered Rs 53 crore operating profit against Rs 10 crore loss, and Rs 18 crore net profit against Rs 22 crore loss in the same period last FY. In the H1FY22 company has clocked Rs 48 crore net profit against Rs 49 crore loss in the H1FY21. It could be a dark horse in real estate space with new launches happening every month.
Elecon Engineering Company, with specialization in the manufacturing sector of industrial equipment, is one of the largest Asian manufacturers of material handling equipment, industrial gear systems and mining equipment. In Q2 its net profit increased 61 per cent; operating profit going up Rs 126 crore from Rs 56 crore and H1FY22 profit going up all the way to Rs 62 crore from just one crore in H1FY21. On TTM basis its Operating and Net profits are the highest ever in the last 12 years. Pick up for good appreciation in two years.
Dwarikesh Sugar, trading at 10 PE is the best pick in the sector as in H1FY22 the sales went up Rs 898 crore, operating profit Rs 134 crore and net profit Rs 67 crore, an increase of 21, 64, and 113 per cent respectively clocking an EPS of Rs 3.54. Globally sugar prices are skyrocketing, and domestically festive season plus an intact Ethanol story the stock has a bright future.
Jindal Stainless had posted Rs 419 crore profit in FY21 whereas in Q2 alone it has posted Rs 460 crore net profit. Thus in the H1FY22 net profit is Rs 710 crore. With the merger of another group company Jindal Stainless (Hisar) the new entity would be one of the world’s largest companies in the sector. It is better to keep the stock in a portfolio for one and half years to make a nice killing.
GNFC is into the manufacturing of fertilizers and Chemicals. It is the sole manufacturer of certain chemicals which are commanding very high price at present in the international market. In Q2 its sales were up by 77 per cent, operating profit 120 and net profit 102 per cent. Against a profit of Rs 144 crore in H1FY21 it has reorded Rs 527 crore profit. On TTM basis this debt free company has recorded the highest ever sales, operating, and net profit numbers. In 2017 its all-time high was Rs 548, now trading at Rs 460 it can show a quick move of 25-30 per cent.
Bharat Bijlee is into power-related products. Against just Rs 6 crore equity it has a reserve of Rs 1062 crore and Rs 640 crore investment in some companies. Even if we ignore its core business the counter is fabulous. On TTM basis the company has recorded the best operating profit ever in last 12 years. Its all-time high was Rs 4075 in 2008 and it is available at Rs 1500 only. A good candidate to accumulate with enough potential.
GlaxoSmithKline Pharmaceuticals has some of the most popular products in its kitty in the pharma sector.
In Q2 its sales was up by 28 per cent, operating profit 82 and net profit 69 per cent. In H1FY22 its net profit increased from Rs 180 crore in the same period to Rs 325 crore. On TTM basis this company has recorded the best financial numbers after 2012. The stock has been consolidating and with an MNC tag it is also a good dividend-paying company. A safe bet for anyone.
The RPG group’s Phillips Carbon Black’s net profit jumped 110 per cent on a 61 per cent surge in revenue over Q2 September 2020 as net profit soared 110 per cent. In H1FY22 its sales increased 102 per cent to Rs 2071 crore whereas net profit increased 275 per cent to Rs 226 crore. On TTM basis historically it has been the best ever performance. Against an all-time high of Rs 319 it is trading around Rs 219. A risk-free, safe, and strong counter to visit.
Kewal Kiran Clothing has surprised with its Q2 numbers recording an increase of 159 per cent in its topline, 188 in operating profit, and 195 per cent in net profit. In H1FY22 the profit shot up to Rs 36 crore against Rs 32 lakh in the same period of FY21. The Board has declared an interim dividend of Rs 10 per share and the issuance of fully paid up bonus shares in the ratio of 4:1. It is now a perfect re-rating candidate available at Rs 1200 against its all-time high of Rs 2380 in 2015.
Aptus Value Housing Finance India’s Q2 income increased 25 per cent and net profit 30 per cent. On QOQ basis disbursement was up by 70 per cent, NPA reduced 26 basis points, and NIM increased 120 basis point to 9.09 per cent. It has been loaning basically to secured customers maintaining healthy asset quality. Malabar Select Fund has 8.54 per cent stake in the company which is available below its IPO price. Sure to get the benefit of real estate growth.
Bharat Electronics’ Q2 sales are up by 15 per cent whereas net profit up by 57 per cent. On TTM basis historically it has been the best ever performance. As on October 1, 2021 it has a strong order book of Rs 54,627 crore which can last for another 3 years. Available at attractive valuation it is on the journey to reach at Rs 250 level any time soon.
A four-decade-old company Butterfly Gandhimathi Appliances is a pioneer in premium stainless steel home appliances, manufacturing a comprehensive range of kitchen products and cookware. Its Q2 sales was up by 40 per cent whereas net profit was up by 48 per cent. In H1FY22 the profit shot up to Rs 26 crore against Rs 8 crore whereas operating profit shot up to Rs 55 crore from Rs 33 crore in the same period of FY21. On TTM basis also these are very good numbers with a scope of 30-40 per cent return in a period of one year.
EaseMyTrip, in its first acquisition spree has entered into a non-binding agreement offer with Traviate Online for the acquisition of its business. It will add a new revenue stream and fast-track its expansion in the B2B hotel and holiday space. EaseMyTrip grew fastest at 47% CAGR from FY18 till FY20 and even Covid couldn’t stop the momentum and during FY21 EaseMyTrip was able to generate a profit of Rs 61 crore. A huge upside is clearly visible at this counter and it could be a long-term bet.
THE SCOOP OF THIS WEEK
Aro Granite Industries, which is the largest exporter of processed granite. Operating a 100 percent export-oriented unit in Hosur, in Q2 recorded an increase of 57 percent in sales and 162 percent in net profit. On a TTM basis, after FY14, this is the highest financial performance. The stock is available at 8.7PE against its peer Pokarna at 44 PE. At its both plants expansion is in progress. The day this consistently growing company comes on the radar of big boys, it will turn into a polished diamond. Grab it before that.