India Equity Value investor, Trivikram Consultants

Prashant Vaishampayan

India Equity Value investor

Picking Long Term Multi-bagger stocks

Trivikram Consultants

Trivikram Consultants is an equity research service founded by Prashant Vaishampayan, a registered Research Analyst with SEBI in India. Prashant has done equity research since 1992.  He worked with Jardine Fleming, SG Securities, UBS and Kotak Securities. Since 2010, he is managing his portfolio and doing outsourced equity research for institutional clients. A team of six professionals helps him in equity research. We focus on pharma, agro-chemicals, auto and auto components, banks and financial services, specialty chemicals and niche manufacturing sectors.   

Equity Bottom-Up

<p>The 2QFY19E earnings season carries huge importance as the FY19 is turning out to be a year of sharp volatility in performance across all the sectors. The report highlights 2QFY19E earnings outlook for the companies under our coverage and the key things to watch out for in the company results.</p>
<ul>
<li>2QFY19E earnings will have an impact of rising crude oil prices, Rupee depreciation against US Dollar, rising interest rates, rising input costs, high rain deficits and lately, the fear of tight liquidity in the NBFC sector. This will probably lead to margin pressure for Auto, Building Material, Banks, NBFCs and Specialty Chemical companies. The sectors that will likely benefit in the current scenario are Pharmaceuticals and auto ancillary companies (export-oriented). </li>
<li>Out of our coverage universe, in APL Apollo we differ from the consensus estimates (Net Profit 22% higher than consensus) as we believe that the new technology will drive the revenues as well as profitability margins from this quarter.</li>
<li>From our coverage universe, the following are the top 3 companies with highest and lowest upside potential to their fair value:  </li>
</ul>
<table class="table table-striped">
<tbody>
<tr>
<td colspan="4" style="text-align: center;">Top3 highest/Lowest upside companies</td>
</tr>
<tr>
<td colspan="2" style="text-align: center;"><strong>highest upside</strong></td>
<td colspan="2" style="text-align: center;"><strong>Lowest upside</strong></td>
</tr>
<tr>
<td><strong>Company</strong></td>
<td style="text-align: center;"><strong>% upside</strong></td>
<td><strong>Company</strong></td>
<td style="text-align: center;"><strong>% upside</strong></td>
</tr>
<tr>
<td>APL Apollo</td>
<td style="text-align: center;">159%</td>
<td>Apcotex Industries</td>
<td style="text-align: center;">30%</td>
</tr>
<tr>
<td>Visaka Industries</td>
<td style="text-align: center;">143%</td>
<td>REPCO Home</td>
<td style="text-align: center;">23%</td>
</tr>
<tr>
<td>Pricol</td>
<td style="text-align: center;">134%</td>
<td>PI Industries</td>
<td style="text-align: center;">3%</td>
</tr>
</tbody>
</table>
<div class="content-caption">Source: Trivikram Consultants Research as of 11 October 2018</div>

The 2QFY19E earnings season carries huge importance as the FY19 is turning out to be a year of sharp volatility in performance across all the sectors. The report highlights 2QFY19E earnings outlook for the companies under our coverage and the key things to watch out for in the company results.

2QFY19E earnings will have an impact of rising crude oil prices, Rupee depreciation against US Dollar, rising interest rates, rising input costs, high rain deficits and lately, the fear of tight liquidity in the NBFC sector. This will probably lead to margin pressure for Auto, Building Material, Banks, NBFCs and Specialty Chemical companies. The sectors that will likely benefit in the current scenario are Pharmaceuticals and auto ancillary companies (export-oriented). 
Out of our coverage universe, in APL Apollo we differ from the consensus estimates (Net Profit 22% higher than consensus) as we believe that the new technology will drive the revenues as well as profitability margins from this quarter.
From our coverage universe, the following are the top 3 companies with highest and lowest upside potential to their fair value:  




Top3 highest/Lowest upside companies


highest upside
Lowest upside


Company
% upside
Company
% upside


APL Apollo
159%
Apcotex Industries
30%


Visaka Industries
143%
REPCO Home
23%


Pricol
134%
PI Industries
3%



Source: Trivikram Consultants Research as of 11 October 2018

J.B. Chemicals & Pharmaceuticals (JBCP IN)

Coverage Universe 2QFY19E Earnings Preview

Aarti Industries

Coverage Universe 2QFY19E Earnings Preview