Rossari Biotech Ltd (ROSSARI IN)Result Report Q4 FY22 | Recommendation:BUYCMP:Rs 889Target Price:Rs 1,355Potential Return:51.6% |
Synergy from acquisitions aids growthRossari’s reported operating profits at Rs 523mn (+49 YoY; +12% QoQ), stood marginally ahead of our and street estimates on better than estimated margins. Rossari, selectively revised prices to pass on the increase in raw material costs to consumers, thereby leading to an improvement in Ebitda margin to ~12% (from 11% in 3Q). The gradual pass-through is likely to continue over 1Q-2QFY23, with margins stabilizing by 2QFY23. Leveraging the additional capacity at Dahej and synergy from the acquisition of Unitop, Tristar and Romakk, Rossari, introduced new products across segments, leading to a volume growth of ~ 40% YoY during the FY22. Going ahead as well the growth momentum is likely to continued, along with improvement in margins. BUY. | |
Jyothy Labs (JYL IN)Result Report Q4 FY22 | Recommendation:BUYCMP:Rs 151Target Price:Rs 181Potential Return:+20% |
All efforts on maintaining growth momentum despite margin pressures; maintain BUY on inexpensive valuationsJYL delivered lower than expected volume growth of 3.6% on a base of 24% owing to subdued performance from HI and Personal care. Dish wash posted strong performance while HHI was impacted by seasonality and extreme weather conditions in Q4 and its performance remain a key monitorable going forward. We trim our estimates to incorporate slightly lower volume growth and margins in the near-term. We revise our TP to Rs 181 and maintain our BUY rating based on 25x FY24E earnings. | |
Ipca Laboratories Ltd (IPCA IN)Q4 FY22 Results First cut | |
Higher other expenses pull down margin; revenues up 16% YoY§ Revenue up 15.6% YoY to Rs 12,891mn, higher than our estimate of 12% growth YoY.§ India business delivered strong growth of 27% YoY.§ Branded and generics exports fell sequentially by 6% and 8.5% respectively. Institutional sales were up 35% QoQ.§ Domestic APIs were up 52% YoY on a low base of last year while export APIs fell 14% YoY.§ Gross margins improved sequentially by 180bps. Despite this, sharp increase in other expenditure led to a fall in operating margins by 450bps sequentially at 17% for 4Q.§ Call: Today at 3:30pm. Call details: 022 6280 1384, 022 7115 8285 | |
Minda Industries Ltd (MNDA IN)Q4 FY22 Results First cut | |
Operational beat to street, announce 1:1 bonus | Not Rated4QYF22 revenue came in line at Rs24.2b (+11% QoQ, in line with consensus). However, driven by ~20bp QoQ improvement in gross margins at 35.9% and better cost control led EBITDA beat at Rs2.8b (+17% QoQ, cons at Rs2.5b) with margins at 11.4% (+60bp QoQ, cons at 10.5%).Call KTAs§ Capex guidance of Rs5.5-6b in FY23 (stable YoY) along with Rs250m investments in TRMN. Most of the restructuring has been done.§ Total capex of ~Rs370m to expand MIVCL plant in Hanoi to serve order received from Italian 2W.§ Expanding 4W switch plant under Mindarika at Chennai to serve new order from Japanese and Korean OEMs, total capex of Rs730m. Both of them expected to get commissioned in March.Segment wise§ Seatings- Expect to reach revenue of Rs15b (v/s Rs9b in FY22) in next 3 years.§ Lightings- Looks optimistic as orderbook is >Rs3.5b (v/s Rs2.5-3b QoQ). Received an order of Rs600m from premium Italian customer for sensored lamp. Most of the business will start flowing from this year as production starts at Gujarat plant.§ Received incremental orders in EV for chargers from traditional OEMs. Shortlisted few customers and focusing on gaining new products from exisiting customers. EV kit value has been stable.§ Qty revenue from sensors and controllers have stabilised at Rs650m (Rs500m and Rs150m respectively) and FY22 revenue at Rs2.6b. Plan to take this to Rs5b over next 5 years.§ Net debt has declined to Rs4.55b in FY22 (v/s Rs8.03b in FY21) with D/E at 0.2x (v/s 0.3x earlier).View- Minda Ind 4QFY22 result was better than street est as margins came in better at 11.4% (cons at 10.5%). Stock currently trades at ~27x of FY24 bloom consol EPS which we believe largely factors in inflationary headwinds and weak domestic 2W demand. We believe i) healthy order book, ii) increasing wallet share led by new product lines like controllers, LED, alloy wheels, sensors, etc and iii) upcoming product lineup in EV space (critical e2W comp like DC-DC converter, BMS, smart plugs, etc) to drive growth. Not Rated | |
Sansera Engineering Ltd (SANSERA IN)Q4 FY22 Result First cut | |
Sustained focus on growth in tech agnostic products | Not Rated4QFY22 consol result was operationally better as Revenue at Rs5.7b (+18% QoQ, cons Rs5.4b) and EBITDA at Rs935m (+25.5% QoQ, cons at Rs866m) were higher by ~6%/8% v/s street est. However margins came in at 16.3% (+90bp QoQ, cons at 16%). Revenue from Auto-ICE and Auto tech agnostic grew ~15.5%/38% while revenue for non-auto segment grew ~31.5% QoQ.Call KTAs§ New order wins- Have orderbook of Rs15b with 9 customers constitute to xEVs.§ Won Rs30b order from a leading North American OEM for connecting rods. SOP from July’25 and is expected to run over next 7 years, with approx qty of 35m connecting rods.§ Won Rs3b order from BMW Motarrad for aluminium forged and machined parts over 10 years.§ Capex guidance of Rs7.5-8b for FY23-24 (v/s Rs2.55b in FY22). WIll do additional investment for Rs30-35m for NA plant which would cater to the new order requirement. This should result in peak annual revenue of Rs75m and will help to gain more content/vehicle and orders from NA clients.§ Looking to expand auto-agnostic revenue mix to ~22% by FY23 end and ~40% by next 3 years (v/s currently at ~17%). Added customers from e2Ws domestic segments and will now look at ePVs.§ There was impact of 1.4% YoY in FY22 on gross margins due to delay in RM pass through in domestic as well as exports. However this was offet by better mix (higher exports) resulting in net impact of 0.9%. Withing exports, believe to get RM passthrough for offroad and aerospace customers with a lag. PV/CV customers are also considering price pass through this time.§ Grew 7% YoY in aerospace division this year. New facility in Bangalore will get ready by 2QFY22 and will take another 2 quarters for ramping up. Believe the division to grow 35-40% CAGR over next 3-4 years.View- Stock currently trades at ~12x of FY24 bloom consol EPS (v/s BHFC (consol) and RK Forge of ~20x/8.7x).We believe near term headwinds to sustain for Sansera led by lower diversified portfolio and likely margins contraction due to focus on new businesses and led by Sweden plant. However, company’s expertise in engine related products like connecting rods (~43% mix and among top 10 global players for PV/CVs) and higher RFQs and in non‐ICE business (~64% of current orderbook) to help the company in the long run. Not Rated |
Reports by YES SECURITIES – Rossari BUY; Jyothy Labs BUY; Ipca; Minda Ind; Sansera
s:9804:"
";