1) Ajanta Pharma:
Again, starting with the strongest name as far as fundamentals is concerned, which I have been mentioning time and again on this blog, and the good part being, there is no change in my opinion even after latest results. Company ended the year with 17% sales growth and 30% net profit, when most of the company in pharma sector found difficult posting good numbers. The margins for the year stood at 23%. The company reserves saw a big jump up from 768 Cr to 1107 Cr, whereas there was no change in debt levels, and they continue to remain almost debt free company. In spite of huge jump in equity on account of growth in reserves, their ROE continues to remain above 40%, which is phenomenal. Off-late company has received good number of ANDA approval from US, which might trigger their sales coming from US, which currently stands at around only 3% of total revenues, which leaves plenty of scope for future growth.
2) Granules India:
Very good quarter for the company in terms of operational performance, however, the sales figure didn't seem up to the expectations. The reason for both those things was same. The company is slowly reducing its exposure to low margin products and shifting to high margin products, which is why slight flattening was seen in sales growth but net profit growth stood at 48% yoy. The debt to equity ratio after 3 years went below 1, which is also a big positive, as this was one of the biggest factor which kept the price to earning ratio in check for past 2-3 years. The things now seems to be much stabilized and company has already started trading consistently around 25-30 PE. For the entire year, the company posted 11% sales growth and 30% net profit growth. High margin CRAMS business from Omnichem JV is expected to contribute about 200 Cr in sales this year, which could be a big positive. In general management is expecting 10-15% sales growth in FY'17 and profitability is obviously going to be much higher on account of shift towards high margin products, better operation efficiency and contribution from Omnichem JV. Overall, I feel there are plenty of growth triggers going ahead for the company.
3) Dewan Housing & Can Fin Homes:
No change in opinion from what was shared last time here:
http://fundamentalstockideas.blogspot.com/2016/02/q3-fy16-result-updates.html
Off late, I am not strictly tracking these 2 companies, so can't comment much in detail.
4) Suven Life Sciences:
After so many subdued quarters, Suven Life Science finally came out with strong set of numbers in Q4. Sales were up by 49% and profit by 83%. Overall for the full year, sales were down 2% and profit was down 13% mostly because of decline in CRAMS business by some 15%. The specialty chemical business made up for some of the de-growth and hence the annual numbers shows only 2% de-growth. The revenues from specialty chemicals is expected to remain at same levels, however, management is confident of achieving 15% growth in CRAMS this year. This will also lead to higher profitability as CRAMS operates at 30% margins for Suven. The balance sheet also continues to remain strong. Plenty of patent approvals will aid their growth in the long run.
5) Cera Sanitaryware & Somany Ceramics:
They continue to enjoy good period in one of the most favorable sector under Modi government. Both the stocks are currently trading at their 52 weeks highs and not to forget, Somany is actually trading at its all time high levels.
Cera posted another decent quarter this time, like they have been doing. For the full year, they posted 14% growth in sales and 23% in profit. Although growth of 14% might seem low when compared to 25% which they used post earlier, it is also important to note that it has still outperformed the industry. This year, the company expects to grow in sales by about 20% and profitability is expected to be much higher.
http://www.moneycontrol.com/news/results-boardroom/expect-20-revenue-growthfy17-cera-sanitaryware_6505081.html
Somany has continued to outperform the analyst expectations for 2nd consecutive quarter especially in terms of profit growth, which has led to steep jump in stock price off late. It was another quarter where it performed much better than Kajaria, which is the leader in its sector, in both sales and profit terms. For the full year, sales grew at about 12.4% and profit growth was around 38%.
The expansion at Kassar plant in Haryana for Glazed Vitrified Tiles was successfully completed and commercial production was commenced from March end this year. The Company management is confident of making 0.5-1% increase on PBT margins in FY17. The management has also given 10-12% revenue growth guidance in FY17. The manufacturing unit at Kassar mentioned above will help topline and bottomline growth this year. Also the demand is expected to increase if monsoon plays out well this year.
Discloure:
I am not a research analyst, nor an investment advisor. Through this post, I am only putting my views, and which has nothing to do with any action that can be taken by readers on any specific company.
Again, starting with the strongest name as far as fundamentals is concerned, which I have been mentioning time and again on this blog, and the good part being, there is no change in my opinion even after latest results. Company ended the year with 17% sales growth and 30% net profit, when most of the company in pharma sector found difficult posting good numbers. The margins for the year stood at 23%. The company reserves saw a big jump up from 768 Cr to 1107 Cr, whereas there was no change in debt levels, and they continue to remain almost debt free company. In spite of huge jump in equity on account of growth in reserves, their ROE continues to remain above 40%, which is phenomenal. Off-late company has received good number of ANDA approval from US, which might trigger their sales coming from US, which currently stands at around only 3% of total revenues, which leaves plenty of scope for future growth.
2) Granules India:
Very good quarter for the company in terms of operational performance, however, the sales figure didn't seem up to the expectations. The reason for both those things was same. The company is slowly reducing its exposure to low margin products and shifting to high margin products, which is why slight flattening was seen in sales growth but net profit growth stood at 48% yoy. The debt to equity ratio after 3 years went below 1, which is also a big positive, as this was one of the biggest factor which kept the price to earning ratio in check for past 2-3 years. The things now seems to be much stabilized and company has already started trading consistently around 25-30 PE. For the entire year, the company posted 11% sales growth and 30% net profit growth. High margin CRAMS business from Omnichem JV is expected to contribute about 200 Cr in sales this year, which could be a big positive. In general management is expecting 10-15% sales growth in FY'17 and profitability is obviously going to be much higher on account of shift towards high margin products, better operation efficiency and contribution from Omnichem JV. Overall, I feel there are plenty of growth triggers going ahead for the company.
3) Dewan Housing & Can Fin Homes:
No change in opinion from what was shared last time here:
http://fundamentalstockideas.blogspot.com/2016/02/q3-fy16-result-updates.html
Off late, I am not strictly tracking these 2 companies, so can't comment much in detail.
4) Suven Life Sciences:
After so many subdued quarters, Suven Life Science finally came out with strong set of numbers in Q4. Sales were up by 49% and profit by 83%. Overall for the full year, sales were down 2% and profit was down 13% mostly because of decline in CRAMS business by some 15%. The specialty chemical business made up for some of the de-growth and hence the annual numbers shows only 2% de-growth. The revenues from specialty chemicals is expected to remain at same levels, however, management is confident of achieving 15% growth in CRAMS this year. This will also lead to higher profitability as CRAMS operates at 30% margins for Suven. The balance sheet also continues to remain strong. Plenty of patent approvals will aid their growth in the long run.
5) Cera Sanitaryware & Somany Ceramics:
They continue to enjoy good period in one of the most favorable sector under Modi government. Both the stocks are currently trading at their 52 weeks highs and not to forget, Somany is actually trading at its all time high levels.
Cera posted another decent quarter this time, like they have been doing. For the full year, they posted 14% growth in sales and 23% in profit. Although growth of 14% might seem low when compared to 25% which they used post earlier, it is also important to note that it has still outperformed the industry. This year, the company expects to grow in sales by about 20% and profitability is expected to be much higher.
http://www.moneycontrol.com/news/results-boardroom/expect-20-revenue-growthfy17-cera-sanitaryware_6505081.html
Somany has continued to outperform the analyst expectations for 2nd consecutive quarter especially in terms of profit growth, which has led to steep jump in stock price off late. It was another quarter where it performed much better than Kajaria, which is the leader in its sector, in both sales and profit terms. For the full year, sales grew at about 12.4% and profit growth was around 38%.
The expansion at Kassar plant in Haryana for Glazed Vitrified Tiles was successfully completed and commercial production was commenced from March end this year. The Company management is confident of making 0.5-1% increase on PBT margins in FY17. The management has also given 10-12% revenue growth guidance in FY17. The manufacturing unit at Kassar mentioned above will help topline and bottomline growth this year. Also the demand is expected to increase if monsoon plays out well this year.
Discloure:
I am not a research analyst, nor an investment advisor. Through this post, I am only putting my views, and which has nothing to do with any action that can be taken by readers on any specific company.
