Xtrade Stock Overview for 24th January 2018



Market Cap : 7,115.38 Cr.

Stock P/E: 48.77

Book Value: 82.92

Face Value: ₹ 2.00

CMP : 142.95

Financial Results

Quarter Ended 30 Sep 2017 30 Jun 2017
Total Income 76,827.00 97,238.00
PBT 1,951.00 3,883.00
Net Profit/Loss 1,604.00 4,087.00

Value in lakhs

Share Holding Pattern

Category 30 Sep 2017 31 Dec 2017
Promoter & Promoter Group 28.46 28.46
Public 71.54 71.54
Shares held by Employee Trusts 0.00 0.00
Total 100.00 100.00

Jain Irrigation is the world’s 2nd largest and largest Indian micro irrigation systems (MIS) company with a market share of >50%.The company would benefit from rebound in MIS segment and focus on solar water pumps and food processing business. Moreover, better working capital management and reduction in debt will strengthen its balance sheet and cash flows. Expect sales and PAT to grow at 14% and 48% CAGR respectively over FY17-19E.

Jain Irrigation’s plastic, hi-tech agricultural inputs and agro processing segments contributed 26%, 46.5% and 23.1% respectively to its top-line in FY17.It derives 45% revenue from India and the rest is contributed by overseas markets.

The micro irrigation system (MIS) opportunity in India is expected at Rs 40,000cr over the next 6-7 years owing to government’s thrust on irrigation. The company’s micro irrigation business is likely to grow at 20% CAGR over FY17-19E led by strong order book in project segment and growth in retail and exports businesses. Its food processing business is expected to do well on account of its foray into spices and orange juices. Piping business growth will be led by economy pick up and government thrust on infrastructure. Analyst forecast 12% revenue CAGR each in piping & food processing business over FY17-19E. Further, company’s acquisition of two irrigation companies in USA will help it expand its offerings in the country.

Xtrade Stock Overview for 17th January 2018

Advanced Enzyme Technologies


Market Cap : ₹ 3,450.48 Cr.

Stock P/E: 40.10

Book Value: ₹ 44.56

Face Value: ₹ 2.00

CMP : 307.50

Financial Results

Quarter Ended 30 Sep 2017 30 Jun 2017
Total Income 4,916.70 4,830.30
PBT 689.50 712.20
Net Profit/Loss 541.40 508.00

Value in lakhs

Share Holding Pattern

Category 30 Sep 2017 31 Dec 2017
Promoter & Promoter Group 71.31 71.31
Public 28.69 28.69
Shares held by Employee Trusts 0.00 0.00
Total 100.00 100.00

Advanced Enzyme Technologies (AETL), a global manufacturer of enzymes and probiotics, will benefit from research & development of new applications for use of enzymes across various industries. Acquisition of 70% stake in JC Biotech would enhance the company’s market share in ‘anti-inflammatory enzyme’ segment. We expect revenue and PAT CAGR of 11% and 13% respectively over FY17-19E.

AETL is a marginal player in global enzyme market, but a leading player in niche nutraceutical industry. Its revenue consists of Human Health Care (72%), Animal Health Care (15%), Food (7%) and Industrial Processing (6%) in FY17. It has 28 registered patents and more than 400 proprietary products. AETL plans to broaden and deepen its geographical presence, invest in R&D of new enzymes and enhance competencies in key focus markets to boost revenue.
AETL enjoys 10% market share in specialty enzyme markets, which is expected to post 10% CAGR over FY17-22E. This will be driven by falling cost of DNA manipulation and demographic shift to diagnostic enzymes. Consequently, we expect revenue CAGR of 11% over FY17-19E. Estimate PAT CAGR of 13% over FY17-19E, aided by reduction in interest cost as a result of debt reduction by the company. The company expects the revenue to hit Rs 1000 crore mark in the coming 5 fiscals through organic and inorganic growth.

Xtrade Stock Overview for 12th January 2018

KEI Industries, engaged in manufacturing of wires and cables, stands to benefit from establishment of strong distribution network leading to increase in retail revenue share. Further, positive investment outlook in power and distribution business is expected to trigger demand for company’s products. Expect revenue and PAT CAGR of 13% and 17% respectively over FY17-19E.
KEI is one of the leading manufacturers of cables and wires in India. It derives 82% of revenue from cables and wires business, 14% from turnkey projects and 4% from stainless steel wire segment (FY17). In cable, LT power/rubber cable is major contributor to company’s revenue (41%).
The company plans to increase its distribution network from current 926 to 1,500 by FY19e. With this, and higher advertisement spend, expect retail revenue share to increase to 40-45% in coming fiscals. Moreover, Government’s rural electrification target of reaching 18,452 villages by FY18e is expected to aid demand for its products. Besides, Power Grid and state electricity boards plans to invest Rs 44,000cr over FY17-FY20 to improve intra-state transmission network. This is expected to further augment its order book of Rs 2,347cr as on September 30, 2017. With execution of current order book and international orders bidding, we expect revenue to grow at 13% CAGR over FY17-19. The company’s debt reduction plan and high margin retail business will contribute significantly in 17% CAGR PAT over FY17-19.

Xtrade Stock Overview for 11th January 2018

GIC housing Finance Ltd (GICHFL) is one of the leading housing finance companies in India. Strong potential in loan book growth, improving LAP share in total loans and inclination towards lower cost of funds will improve its Net Interest Income (NII). Top analyst forecast net profit CAGR of 32% over FY17-FY19E to Rs 258 cr. The stock is trading attractively at 1.8x on FYFY19E P/BV.

Its loan book for FY17 end stood at Rs 9,200 cr. The Housing Loan & LAP contributes 83% & 17% respectively to the company’s loan book. Its GNPA ratio as of March FY17 stands at 2.33% while it has nil Net NPA, as it provides for 100% provisioning against GNPA.

Expect its loan book to register 25% CAGR over FY17-19E to Rs 14,500 cr led by affordable housing potential. Its capital adequacy ratio presently stands at 17%, is quite comfortable to exploit the growth opportunity. GICHFL intends to decrease its high cost bank borrowing (67% of total funds). It has been proportionately increasing the share of cheaper source of funds like, commercial paper and NHB refinancing. We expect its high cost borrowing weightage in total funds to decline by 17% to 50% over FY17- 19E. In addition, we believe its share of high yield LAP loans of the total loans will increase by 290 bps to 19% over FY17-19E. We believe that the decline in bank borrowing and increasing share of LAP will boost its Net Interest Margins(NIMs) by 21 bps to 3.7% over FY16- 19E.

Xtrade Stock Overview for 10th January 2018


Tata Motors (TML) owns Jaguar Land Rover (JLR) and is the market leader in commercial vehicles (CVs) space. TML is expected to perform well on account of turnaround in volumes in the standalone business and owing to improving JLR volumes. Margin improvement (favourable JLR launch cycle), cost savings post start of Slovakia plant and expiry of major portion of unfavourable hedges in coming year would drive overall profitability. Expect revenue and PAT to post 12% and 38% CAGR respectively.
TML, on the consolidated level, derives 80% of its revenue from wholly owned subsidiary, JLR, which had witnessed EBITDA margin decline in FY16 and FY17 on account of weakness in volumes growth, model mix and forex losses. Standalone business (80%) Commercial Vehicles (CV) and Passenger Vehicles (PV) has experienced market share losses and is expected to turnaround the trend on account of better acceptance of SCR technology (CV) and series of new launches in PV segment (Tigor/Hexa/Tiago).

Expect JLR volumes to improve on account of three new launches over F18-19E. Steady improvement in market share in both standalone CV and PV segments would drive 12% revenue CAGR over FY17-20E. EBITDA margin expansion of 120bps is expected owing to cost benefits from Slovakia plant, internal restructuring of domestic operations, and lower forex loss post FY18E. Consequently, we expect PAT to grow at 38% CAGR over FY17-20E.