Reviews

COX & KINGS

Ticker: 533144 FV: Rs.5 52-Week H/L: Rs.287/198.25

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. We had reviewed the scrip in Issue No 40 (dated Jul 23, 2018) and recommended reducing exposure on weak Q4FY18 results. The June 2018 quarter was expected to be better, but the EBITDA and PAT during the quarter were down by 18.8 per cent and 26.6 per cent YoY mainly due to high depreciation and interest costs, although the revenue was up by 14.5 per cent YoY. The EBITDA margin too declined from 18.9 per cent from 13.4 per cent on YoY basis. Thus, we recommended our investors to EXIT the scrip on Sept 4, 2018.

 

FIRSTSOURCE SOLUTIONS

Ticker: 532809 FV: Rs.10 52-Week H/L: Rs.83.85/36

We had recommended Firstsource Solutions in Volume No 34, Issue No 39 (dated Jul 16, 2018) when the scrip was trading at Rs 73. Our recommendation was backed by factors like stable growth and positive outlook. In Q1FY19, the company's revenue grew by 4.7 per cent YoY led by strong growth of 16.2 per cent in the BFSI segment. Its EBITDA grew by 26.7 per ccent YoY and margin improved from 11.5 per cent to 13.9 per cent. The PAT too rose by 36.9 per cent YoY. The management expects the revenue to grow by 7-9 per cent in FY19. This segment will continue to be one of the key growth drivers for the company. The company has fully paid off its term loan of USD 135 million and the long-term debt is expected to be paid off by Q3FY19. Thus, we urge investors to HOLD the scrip.