Fundamentals

ADANI TRANSMISSION 

Face Value : Rs 10
BUY: Rs 195.60 
Ticker: 539254 
H/L: Rs 256.30/115 
Equity: Rs 1099.81Cr 

ATL is India’s largest power transmission company operating in private sector having pan-India portfolio. Till 2022, it is expected that the investments in transmission segment would jump to Rs 3 trillion which would be awarded on TBCB basis. ATL is aggressive and is optimistic of capturing 20% of the TBCB projects. During Q2FY19, the company’s revenue grew by 86.7% YoY to Rs 1391 crore. EBITDA was up by 34.4% YoY and PAT jumped by 41.8% YoY to Rs 95 crore from Rs 67 crore. Its revenue has grown at CAGR of 211.5% over last 3 years. It has maintained high ROE at 31.9% on TTM basis and 3-year average at 23.3%. Considering these factors, we recommend it as a BUY. 

ADITYA BIRLA FASHION 

Face Value : Rs 10
BUY: Rs 204.60 
Ticker: 535755
H/L: Rs 215.55/132.15
Equity: Rs 771.72Cr 

ABFRL is the provider of branded fashion apparels and accessories. Going ahead, we expect Madura segment to grow noticeably supported by brand creation extensions like innerwear, athleisure and introduction of new international brands like Collective, Ted Baker and American Eagle. Moreover, the management is planning to open 350 new stores in FY19E and expects significant rise in wholesale sales. Going ahead, it is also looking to tap the women’s innerwear and athleisure market under the Van Heusen brand name. Further, the company has successfully reduced its D/E ratio to 1.7x in FY18 vs 2.13x in FY17. As ABFRL’s major brands have a well charted growth path, we urge our investors to BUY this scrip. 

BAJAJ FINSERV 

Face Value : Rs 5
BUY: Rs 6391.00 
Ticker: 532978   
H/L: Rs 7200/4444   
Equity: Rs 79.57 Cr

Bajaj Finserv is a financial conglomerate engaged in life insurance, general insurance, consumer finance and other financial products. The commercial finance segment has shown robust growth led by consistent double digit growth in AUM emanating from housing loan book. Life insurance business is getting traction led by improvement in individual share and growth in renewal premium. The general insurance segment is performing better than the other segments as major focus lies on motor and health insurance. Over the last 3 years, the company’s consolidated revenue grew at CAGR of 39.2% and PAT at 17.5%. Considering good growth across all segments and robust financial performance, we recommend it as a BUY. 

DELTA CORP 

Face Value : Rs 1
BUY: Rs 243.70 
Ticker: 532848   
H/L: Rs 401.30/198.10   
Equity:Rs 27.09Cr 

Delta Corp operates in gaming (casino operator) and entertainment sector where only few organise players operate. India’s casino industry is majorly dominated by illegal activity, thus we believe players like Delta Corp., which is the only listed firm in this space, to benefit due from its recent activities, such as foray into the growing online gaming space with acquisition of Gaussian Networks, which owns Adda52.com. Daman has higher catchment area of around 3.5 crore people, which is higher than 0.4 crore in Goa. Thus, the company is likely to witness more traction in Daman. Besides, the stock of Delta Corp is presently available at P/E multiple of 37.24x as against its five-year median P/E of 60.86x. Hence, we urge our investors to BUY this scrip 

L&T TECHNOLOGY SERVICES 

Face Value : Rs 2
BUY: Rs 1681.00 
Ticker: 540115   
H/L: Rs 1852.50/976   
Equity: Rs 20.70Cr 

LTT S is one of the leading players in the ER&D space having revenue mix of transportation (31.8%), industrial products (22.8%), telecom & hi-tech (25.7%), process industry (12.9%) and medical devices (6.8%). In Q2FY19, the company’s revenue was up by 40.5% YoY. Its EBITDA and PAT for the quarter jumped by 67.2% and 55.3% YoY, respectively. As per the management, the company bagged 6 multi-million dollar deals during the quarter across various segments. It has set a vision of 20:20:20 which includes achieving 20% topline growth, 20% EBITDA margin and register 20 new technology patents by FY21 to clock revenue of USD 21 billion. Considering the robust financials, the company seems set to achieve its vision 20:20:20. Thus, we recommend it as a BUY 



UNITED BREWERIES 

Face Value : Rs 1
BUY: Rs 1364.60 
Ticker:  532478
H/L: Rs 1464.20/908
Equity: Rs 26.44Cr

United Breweries is engaged in the business of manufacturing and selling of beer under its flagship brand 'Kingfisher'. The company has posted volume growth of of around 17% YoY which is higher than the industry and gained market share across various states. Also, the operating margin has improved mainly on account of lower input costs and higher capacity utilisation. The company is entering the non-alcoholic beverages segment with the launch of its lemon-based drink brand ‘Kingfisher Radler’ and expects to launch it on a pan-India basis by the end of FY19. Increasing disposable incomes, coupled with lower per capita beer consumption bodes well for players like UBL. Owning to all these factors, we urge our investors to BUY this scrip.