Query Board
NBCC (INDIA)
Kindly share your view on NBCC (India) Ltd. - L.S Sivakumar
NBCC (India) is engaged in providing civil engineering construction services. The company operates in three segments, viz. project management consultancy (PMC), real estate development and engineering, procurement and construction (EPC). On the financial front, the company's revenue for first quarter of FY19 jumped 28 per cent to Rs.1,633.48 crore as against Rs.1,266 crore in the same quarter of the previous year. The PBDT of the company also grew by 19 per cent and stood at Rs.100.72 crore in Q1FY19 as against Rs.84.61 crore in Q1FY18. The net profit too has increased by 20 per cent to Rs.67.66 crore as against Rs.55.94 crore in the same quarter of the previous financial year. On an annual basis, the company's revenue has marginally gone down by 5.9 per cent to Rs.5,905 crore in FY18 from Rs.6,279.39 crore in the previous fiscal. The PBDT of the company for FY18 was Rs.505.33 crore, a growth of 3 per cent from Rs.490.26 crore in FY17. The net profit of the company has gone down slightly by 5 per cent to Rs.333.61 crore in FY18 versus Rs.351.10 crore in FY17. The financial performance of the company shows stable growth. Also, the company has reduced debt and is virtually debt-free. The company has been maintaining a healthy dividend payout of 37.73 per cent. Looking at these reasons, we recommend a HOLD to our reader-investors.
CENTRUM CAPITAL
I hold 1,000 shares of Centrum Capital bought at Rs.89. I am planning to hold for the next one year. Kindly let me know whether I should hold or exit. - Singh 
Centrum Capital Limited is an investment banking company. The company provides various financial services in the areas of equity capital market, private equity, corporate finance, project finance and stressed asset resolution. The company's segments include advisory and transactional services, trading in bonds, forex business, travel and tours, treasury and housing finance. On the financial front, the company posted revenue of Rs.1.95 crore in Q1FY19 as against Rs.2.19 crore in the same quarter of the previous year, marking a drop of 10 per cent. On the other hand the PBDT of the company has increased drastically YoY in Q1FY19 at Rs.412.16 crore as against Rs.8.49 crore in the same quarter of the previous fiscal. The net profit of the company has also increased to Rs.313.93 crore in Q1FY19 as against Rs.7.92 crore in the same quarter of the previous year. On an annual basis, the company's revenue in FY18 was stable at Rs.26.54 crore as compared to Rs.26.81 crore in the previous fiscal. The PBDT of the company has grown by 53 per cent to Rs.66.91 crore versus Rs.43.68 crore in FY17. The net profit of the company grew by 68 per cent in FY18 to Rs.63.33 crore as against Rs.37.52 crore in FY17. Looking at the above financial numbers, we can say that the company has been performing well. The company also has good consistent profit growth of 42.49 per cent over five years. Thus, we recommend a HOLD to our reader-investors.
TITAGARH WAGONS
I have some shares of Titagarh Wagons bought at Rs.180. Tell me whether I should hold or exit the stock. - Sahu Ashok Kumar 
Titagarh Wagons is engaged in manufacturing and selling of railway wagons, steel castings, heavy earth moving and mining equipments, bailey bridges, electric multiple units (EMUs) and non-ferrous metal alloys, etc. It operates through two business segments: wagons and coaches. The company is also engaged in finance, hire purchase and leasing, ship building and ship breaking, marine engineering, naval architecture as well as ocean engineering. Its wagons & coaches segment is engaged in the manufacture of wagons, coaches, bogies, couplers and crossings as per customers' specifications.
On the financial front, the company's revenue went up by 60 per cent and stood at Rs.131 crore in Q1FY19 as against Rs.82 crore in the same quarter of the previous year. The PBDT of the company for the first quarter of FY19 was Rs.6.39 crore, which showed a drop of 12.59 per cent versus Rs.7.31 crore in the same quarter of the previous year. The net profit of the company dropped as well by 33.33 per cent to Rs.2.81 crore in the Q1FY19 versus Rs.3.27 crore in the same quarter of the previous year.
In terms of annual performance, the company's net sales dipped by 14 per cent and stood at Rs.316.52 crore in FY18 versus Rs.370 crore in the previous fiscal. The PBDT of the company tanked as well by 67 per cent to Rs.12.18 crore in FY18 as against Rs.37.87 crore reported in the previous fiscal. The net profit of the company decreased by 84 per cent and stood at Rs.2.92 crore in FY18 as against Rs.19.28 crore in the previous year. On the valuation front, the company has a return on equity (RoE) of 2.19 per cent and return on capital employed (RoCE) of 1.13 per cent.
The company is virtually debt-free and the stock is trading at 1.11 times its book value. The company has been maintaining a healthy dividend payout of 52.65 per cent. Although the financial numbers do not portray a pretty picture, we would advise our reader-investors to HOLD the stock as we expect the numbers to improve.
BALASORE ALLOYS
I bought Balasore Alloys at Rs.86. What should I do now, hold or exit ? - Karthik
Balasore Alloys Limited is engaged in the manufacturing and mining of ferro alloys. The company also manufactures and sells ferro chrome of various grades. It has over five furnaces with a total capacity of approximately 60 megavolt ampere (MVA) to produce approximately 95,000 million tonnes (MT) of ferro alloys per annum. Its products include high carbon ferro chrome (FeCr60) and low silicon ferro chrome (FeCr65). Its metal recovery plants are used to recover the entrapped metal (ferro chrome) from the slag generated during the production of ferro chrome and charge chrome. It focuses on the production of products such as low and mediumsilicon, low phosphorous, medium-carbon and high-chromium.
On the financial front, the company posted revenue of Rs.332.71 crore in Q1FY19, growing by 7 per cent from Rs.308.44 crore in the same quarter of the previous year. The PBDT of the company dropped by 39 per cent to just Rs.28.06 crore in the first quarter of FY19 versus Rs.46.27 crore in the same quarter of the previous year. The net profit of the company has also gone down 58 per cent YoY to Rs.10.73 crore in Q1FY19 as against Rs.24 crore.
On an annual basis, the company's net sales has increased by 18 per cent to Rs.1,228.81 crore in FY18 as against Rs.1,036 crore in the previous fiscal. The PBDT of the company has dipped by 15 per cent to Rs.138.37 crore in FY18, while in FY17 the company reported PBDT of Rs.164.33 crore. The net profit of the company stood at Rs.65.56 crore in FY18, dropping by 26 per cent from Rs.89.52 crore in FY17.
The company's stock is trading at 0.61 times its book value. Also the promoter's stake has increased and the company has good consistent profit growth of 23.15 per cent in 5-year period. Looking at the financial numbers, the company has not shown much growth, but the company seems to be on the road to recovery. Due to the above mentioned factors, we would recommend a HOLD to our reader-investors.
LEEL ELECTRICALS
Request you to please let me know what should be done with Leel Electricals purchased at Rs.252. Should I hold or exit? - Radhika Agarwal 
Leel Electricals Limited is engaged in the manufacture of evaporators and condenser coils for air conditioners and heat exchangers/radiators. The company provides consumer durable segment, heat exchangers and components and original equipment manufacturer (OEM) segment and packaged air conditioning. Its segments include radiators and heat exchangers, OEM & railways, and consumer durable products. The business solution segment includes Lloyd branded consumer electronics products and home appliances; heating, ventilation, air conditioning and refrigeration (HVAC&R) heat exchanger coils; engine cooling systems; commercial refrigeration systems; air handling units; industrial fans and coolers, and other small appliances.
On the financial front, the company's net sales has tanked by 45 per cent in the first quarter of FY19 to Rs.513.29 crore versus net sales of Rs.937 crore in the same quarter of the previous fiscal. The company posted Rs.22.52 crore PBDT in Q1FY18, dropping by almost 60 per cent from Rs.55.85 crore in the same quarter of the previous year. The net profit of the company also went down by 73 per cent and stood at Rs.8.79 crore in Q1FY19 as against Rs.33.48 crore in the same quarter of FY18.On the annual front, the net sales of the company were down by over 300 per cent at Rs.1,962.57 crore in FY18 versus Rs.3,022 crore reported in FY17. The PBDT of the company has dipped as well by 78 per cent to Rs.33.35 crore in FY18 versus Rs.154.95 crore in FY17. However, the net profit of the company has increased by over 500 per cent as the company reported net profit of Rs.522.23 crore in FY18 while in FY17 it was only 85.14 crore.
The company's stock is providing a good dividend yield of 24 per cent. The promoter's stake has increased as well. The company has also been maintaining a healthy dividend payout of 43.15 per cent. Although, the company has reported disappointing financial results, we expect the company to perform better in the upcoming quarters and thus advise our investor-readers to HOLD on to the stock.
GABRIEL INDIA
I have 250 shares of Gabriel India bought at Rs.183. Should I hold or exit? Kindly advise. - K. Srinivasan
Gabriel India Limited is engaged in the manufacturing and marketing of ride control products. The company's profile includes a range of ride control products such as shock absorbers, struts and front forks for all automotive segments. It operates in the auto components and parts business segment. Its business units include commercial vehicles and railways, 2-wheelers and 3-wheelers, passenger cars and aftermarket. It manufactures front forks and rear shock absorbers for 2-wheelers; McPherson struts and shock absorbers for passenger cars; cabin dampers, seat dampers and suspension shock absorbers for commercial vehicles and shock absorbers for railway coaches. Its ride control products for various segments are marketed across the country.
On the financial front, the company posted net sales at Rs.514.62 crore in the first quarter of FY19, increasing by 10 per cent from Rs.465 crore in the same quarter of the previous year. The PBDT of the company has also witnessed a growth of 28 per cent in Q1FY19 to Rs.50.11 crore, as against Rs.39.86 crore in the same quarter of the previous year.
In terms of annual performance, the company posted a 22 per cent growth in the revenue to Rs.1,879 crore in FY18 as against Rs.1,529.13 crore in the previous fiscal. In terms of PBDT, the company posted a growth of 20 per cent in FY18 to Rs.175.46 crore as against Rs.146.14 crore in FY17. The net profit of the company went up by 15 per cent to Rs.94.24 crore in FY18 as against Rs.81.62 crore in the previous fiscal. On the valuation front, the company has a return on equity (RoE) of 19.34 per cent and return on capital employed (RoCE) of 32.84 per cent. The TTM P/E ratio stood at 33.92x as against the industry P/E of 21.36x.
The company has reported positive financial numbers. Also, the company is virtually debt-free and has been maintaining a healthy dividend payout of 22.22 per cent. We would recommend a HOLD to our reader-investors for the abovementioned reasons.
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