Fundamental

UJJIVAN FINANCIAL SERVICES 

Ticker : 539874
BUY: Rs 295.75
Target: Rs 331 

Ujjivan Financial Services is a non-banking finance company engaged in the micro finance lending business. In Q3FY19, the company’s net interest income grew by 30 per cent YoY to Rs 255 crore. The net interest margin stood flat at 11.8 per cent as compared to Q3FY18. Loan book during the quarter grew by 31.8 per cent YoY. CASA ratio improved to 10.4 per cent from 3.7 per cent in Q3FY19. The net profit jumped by 54 per cent YoY to Rs 45.2 crore. The gross NPAs during the quarter stood at 1.4 per cent, while net NPAs stood at 0.3 per cent. The management has projected growth of 25-30 per cent in the assets business. It is also planning to list its small finance bank on the stock exchanges in the near future. Considering the robust growth, we recommend it as a BUY. 

HAVELLS INDIA 

Ticker : 517354
BUY: Rs 702.60
Target: Rs 780 

Havells India is an established brand in cables and a leading brand in lighting & switchgear segments and also an established premium fan manufacturer. In Q3FY19, the company’s revenue grew by 28 per cent YoY contributed by robust growth across all segments. The switchgear segment grew by 21 per cent YoY, electrical consumer durables segment grew by 34 per cent, lighting division registered growth of 29 per cent, cables & wires segment grew by 31 per cent, while Llyod Electric grew by 22 per cent YoY. EBITDA for the quarter registered growth of 12.3 per cent, while its PAT stood flat. The AC plant (capex Rs 350 cr) at Neemrana is expected to get operational by Q4FY19. Considering strong growth across all segments/ verticals, we recommend it as a

BUY.