Reviews
ARVIND
Ticker: 500101 FV: Rs.10
52-Week H/L: Rs.447.85/289.15
We had recommended Arvind Ltd. in Volume No 34, Issue No 27 (dated Apr 23, 2018), when the scrip was trading at Rs 430. Our recommendation was backed by factors like robust revenue growth and de-merger of its brand and retail business. We had reviewed the stock in Issue No 46 (dated Sept. 3, 2018) when it was trading at Rs 402. We had recommended holding the stock as the company had delivered decent numbers in Q1FY19. However, the market corrected majorly last month, which saw decline in prices of almost all small-cap and mid-cap companies. The company expects spur in demand during H2FY19 led by festive season in October and November. It has estimated 20-24 per cent YoY growth in brand and retail business. As our target date was reached, we had EXITED the stock on Oct 16 but investors having medium term perspective should continue holding it.
MAHINDRA CIE AUTOMOTIVE
Ticker: 532756 FV: Rs.10
52-Week H/L: Rs.301.80/199.20
We had recommended Mahindra CIE Automotive in Volume No 34, Issue No 47 (dated Sept 10, 2018), when the scrip was trading at Rs 289. Our recommendation was backed by factors like strong growth in both domestic and international businesses. On financial front, company’s standalone revenue was up by 21.6 per cent YoY from Rs 526 crore to Rs 652 crore in Q2FY19. Its EBITDA grew by 35.5 per cent YoY to Rs 80 crore from Rs 59 crore and EBITDA margin stood at 12 per cent. PAT for the quarter jumped by 79.2 per cent from Rs 24 crore to Rs 43 crore. Recently, company’s board approved merger of the company with its subsidiary Bill Forge, which would increase operational efficiencies and bring economies of scale. Considering these factors, we urge investors to HOLD the scrip.
