In today’s briefing:
- Stylam Industries (SYIL IN) 3QFY24: Concall Highlights, Margin Expansion
- Fundamental Shorts – SBI Cards | PVR Inox | Escorts Kubota
- Bharti Hexacom Pre-IPO – The Negatives – No Clear Rationale for Listing
Stylam Industries (SYIL IN) 3QFY24: Concall Highlights, Margin Expansion
- Stylam Industries (SYIL IN) reported its best-ever EBITDA margin of 22.3% Vs 16.8% due to a raw material price decline. Revenues continued to remain soft, with growth of -8% YoY.
- The company completed its brownfield expansion to increase the plant capacity by 40% and is now embarking on a capacity expansion of 200 crores in FY25, effectively doubling its revenues.
- Stylam Industries (SYIL IN) trades at 22x/19x FY24e/25e, with a potential for doubling of revenues over the next 3-5 years.
Fundamental Shorts – SBI Cards | PVR Inox | Escorts Kubota
- We screen our coverage universe for earnings disappointments, EPS downgrades, and management narratives to identify fundamental shorts.
- Stocks in focus include SBI Cards & Payment Services (SBICARD IN) , Pvr Inox (PVRINOX IN), and Escorts Kubota Limited (ESCORTS IN).
- Credit Cost for SBI is expected to remain elevated, PVR management seems to be misreading consumer preferences, and Macro uncertainties cloud ESCORTS.
Bharti Hexacom Pre-IPO – The Negatives – No Clear Rationale for Listing
- Bharti Hexacom is looking to raise up to US$1bn in its upcoming India IPO.
- Bharti Hexacom (BH) is a communications solutions provider offering consumer mobile services, fixed-line telephone and broadband services to customers in the Rajasthan and the North East telecommunication circles in India.
- In this note, we talk about the not-so-positive aspects of the deal.
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