Reviews

COX & KINGS

Ticker: 533144 FV: Rs.5
52-Week H/L: Rs.305.50/198.25

We had recommended Cox & Kings in Volume No. 34, Issue No. 21 (dated Mar 12, 2018), when the scrip was trading at Rs 258. Our recommendation was backed by factors like company's expansion plans and growing demand for the leisure business. During Q4FY18, the revenue was up by 10.2 per cent on YoY. The EBITDA increased from Rs 72 crore to Rs 130 crore and the EBITDA margin improved to 8.2 per cent . However, the high depreciation costs and interest expenses led to decline in PAT by 72.5 per cent YoY from Rs 20.04 crore to Rs 5.5 crore. Historically, the company's June and Sept quarters generate higher revenue than other quarters. Accordingly, we expect better numbers in the June 2019 quarter. Investors can gradually reduce exposure to the scrip and hold the remaining investment till June quarter results.


 

IRB INFRASTRUCTURE

Ticker: 532947 FV: Rs.10
52-Week H/L: Rs.286/184.05

We had recommended IRB Infra in Volume No. 34, Issue No. 27 (dated Apr 13, 2018) when the scrip was trading at Rs 264. Our recommendation was backed by factors like strong order book and balance sheet. In Q4FY18, the revenue de-grew by 15 per cent YoY as the revenue from toll declined. The EBITDA margin declined from 50.5 per cent in Q4FY17 to 47.6 percent in Q4FY18. However, PAT grew by 15.7 per cent YoY due to lower depreciation and finance costs. The company has strong order book and bidding pipeline of orders and expects more orders from the government initiatives in the next five years. It also plans to bid for ToT projects. We expect the company will grow gradually and would benefit in the long run. Thus, investors can hold for the long term, but in the short run, they can EXIT the scrip.