Reviews

THE BYKE HOSPITALITY

Ticker: 531373 FV: Rs.10
52-Week H/L: Rs.220.70/150.25

We had recommended Byke Hospitality in Volume No 34, Issue No 15 (dated Jan 29, 2018), when the scrip was trading at Rs 201. Our recommendation was backed by factors such as robust financial performance and aggressive expansion plans of the company. In Q3FY18, although its topline declined on a YoY basis, its EBITDA margin jumped from 23.8 per cent to 40.4 per cent due to high operating efficiency and its PAT increased by 16.6 per cent , thereby improving the PAT margin to 22.5 per cent from 13.5 per cent on a YoY basis. Also, the occupancy ratio improved from 70 per cent to 75 per cent . For further expansion, the company is looking out for locations such as Dalhousie, Lonavala, Mahabaleshwar, Darjeeling etc. This expansion will add up to its brand recognition and pace up its growth rate. Thus, we urge investors to HOLD this scrip.



DEEPAK FERTILIZERS & PETROCHEMICALS

Ticker: 500645 FV: Rs.10
52-Week H/L: Rs.499.80/233

We had recommended Deepak Fertilizers in Volume No 34, Issue No 20 (dated Mar 5, 2018), when the scrip was trading at Rs 335. Our recommendation was backed by factors such as capacity expansion and strong performance in Q3FY18. The robust volume growth in TAN is expected to continue with the imposition of anti-dumping duty and as the company's capacity utilisation level has already reached 90 per cent. To meet the growing demand for fertilisers, the company is expanding its capacity of fertiliser plant, which will enhance the volumes going forward. The demand for new product offerings is also rising. Recently, it relaunched its retail business under the new brand named ‘Creaticity' in Pune, which will attract customers across Maharashtra. Considering these aspects, we urge investors to HOLD this scrip.