Reviews

EVEREST INDUSTRIES 

Ticker : 508906
FV: Rs 10
52-Week H/L: Rs 597.50/380.45 

We had recommended Everest Industries in Volume No 34, Issue No 44 (dated Aug 20, 2018), when the scrip was trading at Rs 567. Our recommendation was backed by factors like strong order book and launch of new value-added products. In Q3FY19, the company’s revenue rose merely by 5.3 per cent YoY to Rs 309.2 crore. EBITDA was up by 9.9 per cent YoY from Rs 21.2 crore to Rs 23.3 crore. EBITDA margin stood at 7.5 per cent as against 7.2 per cent. PAT during the quarter increased by 22.3 per cent from Rs 9.4 crore to Rs 11.5 crore. The crude oil prices have again started marching northwards, putting pressures on the company’s margins. The rising steel prices are also leading to pressures on operating profit. In the near term, we expect limited upside and hence urge investors to EXIT the scrip. 

UNITED SPIRITS 

Ticker: 532432
FV: Rs 2
52-Week H/L: Rs 730.80/439 

We had recommended United Spirits in Volume No 35, Issue No 6 (dated Dec. 3, 2018), when the scrip was trading at Rs 635. Our recommendation was backed by factors like good numbers posted in Q2FY19 and growing demand for premium products. In Q3FY19, the revenue of the company was up by 10.5 per cent YoY to Rs 2500.9 crore. Revenue growth was led by robust growth in the P&A segment. EBITDA grew by 27.7 per cent YoY, while the EBITDA margin stood at 13.9 per cent. PAT during the quarter jumped by 42.8 per cent YoY from Rs 135 crore to Rs 192 crore. The company expects volatility in volume growth during the election period in April/May 2019. Also, growth in demand under P&A and premium segments is expected. Hence, we urge investors to HOLD the scrip.