Please remember, these are not recommendations/ suggestions to buy or sell. Strictly for educational purpose the Indian Economy & Market Research Team has collected these details from the public domain for our subscribers as these couldn’t be a part of our regular monthly magazine.
Dwarikesh Sugar Industries has three plants in UP with sugar cane crushing capacity of 21,500 TCD, distillery capacity of 1,62,500 LPD and also has a 91 MW power plant. It has come out with impressive Q3 numbers clocking 58, 138 and 287 per cent increase in its sales, operating profit and net profit respectively. On 9 months basis its sales, operating profit and net profit were up by 21, 59 and 121 per cent respectively. In March 2020 its debt was Rs 846 crore which has come down to Rs 283 crore in September 2021. It is lowest in last 12 years. As the government is mulling over the proposal of 20 per cent ethanol blending, this company will be the biggest beneficiary.
Chalet Hotels like all other hotel stocks felt the heat of COVID-19. With 7 hotels in Mumbai, Pune, Hyderabad, Bangalore and 2554 rooms spread over 0.9 million sq ft it has posted good December quarter numbers as sales and operating profits are up by 93 and 288 per cent respectively. It has recorded highest sales after March 2020 and although on net level it is still in loss but it could turn around very soon.
La Opala RG is a leading manufacturer and marketer of life style product in the tableware segment and one of the well-established crockery brands in India. A market leader in organized sector the company in Q3 has posted good numbers as sales, operating profit and net profit were up by 39, 43 and 28 per cent respectively. On 9 months basis its sales, operating profit and net profit were up by 78, 119 and 132 per cent respectively. In December 2021 it made a high of Rs 456 and now available 21 per cent below that level. Good long term bet if it comes down another 5-7 per cent.
Camlin Fine Science was formerly known as Camlin Fine Chemicals and produces chemical substance to improve the shelf life of food and other products, aroma compounds, and performance chemicals. It has 5 plants, and with more than 100 diversified products has presence in 80 countries. In Q3 sales and net profit were up by 28 and 86 per cent respectively. On 9 months basis its sales and net profit were up by 19 and 24 per cent respectively. On TTM basis its performance is the best. Its expansion in Dahej plant is almost over and commercial production is about to begin which will have its positive effect in June quarter numbers. In July 2021 it made a high of Rs 231 and now available 40 per cent below that level. Good for long term as no down risk at all at this level.
Salasar Techno Engineering is into Telecommunication, Power, Renewables, Smart City Solutions, Poles and Heavy Steel Structures. It is One-Stop Shop for India’s telecom giants by carrying out engineering, designing, procurement, fabrication, galvanization and EPC under one roof. The company has successfully executed projects for various government entities and serves prestigious clients in 25+ countries worldwide. On 9 months basis its sales increased from Rs 385 crore to Rs 507 crore, Ebitda from Rs 37.7 crore to Rs 52.9 crore and PAT from Rs 20 crore to Rs 24.3 crore. After Q3 results the management in a concall has given very good future guidance. IIFL Securities also has given a Buy Call for this fundamentally strong stock. Keep under your investment radar.
Triveni Engineering is the second largest integrated sugar producer with 7 mills, a market leader of engineered-to-order high speed gears & gearboxes and a leading player in water and wastewater management business located in Noida. It has also power transmission plant in Mysore. All the 3 segments have a very bright future. In another group company Triveni Turbine it holds 21.85 per cent stake. In last 9 months its profit increased by 50 per cent and on TTM basis its sales, operating profit and net profits are highest ever in its history. In FY2019 its debt was Rs 1684 crore which has come down to Rs 573 crore in September 2021. One can keep the stock in watch list.
REC in May 2017 made all time high of Rs 224. If we compare its then profit now it is posting almost double profit but trading at half of the then price. In Q3 income and profit were up by 10.5 and 23 per cent respectively. On 9 months basis its income and profit were up by 12.5 and 23 per cent respectively. On TTM basis its income is Rs 38,603 crore and profit stans at Rs 9812 crore. In 10 years on CAGR basis income increased 16 per cent, profit 12 per cent but stock has given only 2 per cent return. Trading at 2.5PE with EPS of 49.68 and trading at half its book value it is a highly undervalued stock. Its dividend yield is more than any bank’s FD rate. No downward risk, the stock is trading at its bottom.
Pondy Oxides & Chemicals is the leading Secondary Lead Smelter producer, lead alloys and PVC additives and also active into PVC extruded and moulded products. Against just 6 crore equity capital it has a reserve of Rs 178 crore. In Q3 it has posted good numbers as sales, operating profit and net profit were up by 41, 214 and 344 per cent respectively. On 9 months basis its sales, operating profit and net profit were up by 50, 276 and 498 per cent respectively. On TTM basis all three are at its best. On January 31st it was trading at Rs 594 and now available at Rs 597 on 8PE, giving strong signal that even such volatile downside market has no impact on this stock. A good counter in this environment.
Vishwaraj Sugar Industries is an integrated sugar and ethanol manufacturing company.
As India is transferring in direction of bio gasoline with 20 per cent ethanol mixing coverage, sugar corporations are anticipated to earn most. In first 9 months of FY22, it has posted 395.68 per cent rise in revenue against corresponding period earlier fiscal. It produces superior grade of ethanol, which may be used in bio-fuel mixing. From its life-time of Rs 45.80 in October 2021, itt has corrected to the tune of close to 55 per cent from its life-time high. It is worth considering at current levels.