Reviews
KANSAI NEROLAC
Ticker: 500165
FV: Rs.1
52-Week H/L: Rs. 540.45/343.40
We had recommended Kansai Nerolac in Volume No 34, Issue No 43 (dated Aug 13, 2018), when the scrip was trading at Rs 515. Our recommendation was backed by factors like launch of new products and reduction in GST rates. In Q3FY19, the company’s revenue was up 18 per cent YoY to Rs 1,350.7 crore. EBITDA for the quarter declined 7.9 per cent YoY and EBITDA margin declined by 369 bps YoY to 13.1 per cent. PAT dipped by 9.9 per cent YoY to Rs 112.7 crore. High crude oil prices continued to put pressure on company’s margins. The slower demand in automotive and industrial segments too led to the poor performance of the company. It expects this subdued trend from these sectors to continue in the near term. Thus, considering these factors, we recommend investors to EXIT the scrip.
DELTA CORP
Ticker: 532848
FV: Rs.1
52-Week H/L: Rs. 386.70/198.10
We had recommended Delta Corp. in Volume No 35, Issue No 10 (dated Dec 31, 2018), when the scrip was trading at Rs 244. Our recommendation was backed by factors like its foray into online gaming space and expected traction from Daman market. In Q3FY19, its revenue grew by 27 per cent YoY, led by growth in the gaming business. The revenue from casino gaming grew by 30 per cent YoY. EBITDA grew 22 per cent YoY from Rs 69 crore to Rs 84 crore. PAT for the quarter increased by 13 per cent YoY. The new casino in Nepal would commence operations from February, which will contribute to earnings from FY20. The rummy portal too would get operational by end of February. Considering the good set of numbers delivered by the company, we urge investors to HOLD the scrip.
