India: Kolte Patil Developers, HealthCare Global Enterprises, JSW Steel Ltd, Bata India Ltd, Lumax Industries, Brigade Enterprises, CCL Products India and more

• Kolte Patil reported a strong FY22 and guided for even a stronger FY23. FY22 closed with highest ever sales value and collections.
• FY23 is set to fire on all cylinders – new launches, business development aka new project acquisitions and delivery of under-construction projects.
• FY23 sales value is expected to be 2200cr, implying PAT potential of 220cr.  At current market cap of 1800cr, Kolte Patil is trading cheap at 8x P/E per FY23E PAT.

• HCG’s continued focus on consolidation is leading to improving profitability.  Furthermore, with the normalization of post-COVID environment, elective surgeries and international footfalls are inching back to pre-COVID levels.
• Since the onboarding of CVC Capital as the majority shareholder, HCG’s capex discipline has been noteworthy. Capex is focused now on driving growth in existing centers vs opening new centers.
• We project HCG’s PAT to grow to INR 170cr+ by FY25. Valuing HCG at FY25 exit P/E of 47x suggests an IRR potential of 27% over the next 3Y.

In our view, JSW Steel’s Q4 and FY 2021-22 results were robust, with strong growth in production volumes, revenues and earnings. The financial risk profile has improved and is healthy. Liquidity is sound.

However, we believe that JSW has experienced the peak of the cycle and profitability will likely reduce from current levels, driven by multiple factors including the Russia-Ukraine war which drove up key raw material prices (coking coal and iron ore). In addition, the recent export duty will likely also hurt India’s domestic steel players (particularly JSW), whose exports as a percentage of sales volumes were roughly double that of the industry. Hence, we foresee significantly lower earnings despite healthy growth in volumes and revenues in FY 2022-23. We expect a double-digit increase in volumes, driven by the capacity expansion programmes at Dolvi and Vijayanagar. We also project double-digit growth in revenues (c. 20%) in FY 2022-23, on account of the volume expansion and prices.

• Bata India (BATA) reported Q4FY22 revenue at Rs 665 Cr as against Rs 590 Cr in Q4FY21, registering a growth of 12.8% despite Omicron disruptions. 
• We remain positive on the stock from a long-term perspective given its immense growth potential
• Maintain BUY with revised TP of Rs 2,200/share and assign a PE of 43x FY24E EPS.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

• Lumax Industries (Lumax Inds) reported a stellar set of results which was ahead of our estimates.
• The revenue for the quarter stood at Rs 549 Cr (our estimate – Rs 496 Cr), reporting a 9% YoY growth
• We maintain a BUY rating on the stock with a revised target price of Rs 1,450/share (Rs 1,350 earlier) valuing it at 13x of FY24E P/E, implying an upside of 25% from the CMP.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

• CCL Products (CCLP) delivered a decent performance in Q4FY22 with consolidated revenue of Rs 376 Cr (Our est: Rs 381 Cr), up 13% YoY on account of ~7% volume growth and higher realizations.
• However, the company’s GPM came in at 51.2% and declined by 642bps YoY mainly on account of the deferment of large consignments (500-600 tonnes) to Russia on account of the war
• CCL Products is one of our high conviction BUY with a revised TP of Rs 560/share (Rs 585/share earlier), as we continue to value it at a target P/E multiple of 23x its FY24E EPS.

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.