Reviews

INDIAN ENERGY EXCHANGE

Ticker : 540750
FV: Rs. 1
52-Week H/L: Rs. 178/140.50

We had recommended Indian Energy Exchange in volume no.34, issue no.48 (dated Sept. 17, 2018), when the scrip was trading at Rs 169.49. Our recommendation was based on factors such as strong financial performance. In Q3FY19, the company’s revenue marginally rose from Rs 64 crore to Rs 65 crore. Its electricity segment’s volumes increased 20 per cent YoY but the REC segment’s volumes declined 78 per cent YoY due to reduction in available inventory. EBITDA de-grew by 7.5 per cent YoY to Rs 49 crore and EBITDA margin declined from 81 per cent to 77 per cent YoY. However, PAT improved by 19.4 per cent to Rs 43 crore due to 160 per cent YoY rise in other income. Considering the muted performance, we expect the stock to continue trading in consolidation and hence urge investors to EXIT the scrip.

* Stock was split from Face value of Rs. 10 to Rs. 1 on Oct. 19, 2018.

RUPA & COMPANY

Ticker: 533552
FV: Rs. 1
52-Week H/L: Rs. 469.90/246.65

We had recommended Rupa & Company in volume no.35, issue no.13 (dated Jan. 21, 2019), when the scrip was trading at Rs 347.90. Our recommendation was based on factors such as high improving margins and successful operations of international brands. In Q3FY19, the revenue grew merely by 4 per cent YoY to Rs 283.7 crore. EBITDA too increased marginally by 2.3 per cent YoY to Rs 42.3 crore. EBITDA margin stood flat at 14.9 per cent. PAT for the quarter declined by 5.4 per cent YoY due to higher finance costs. The recent acquisitions of brands may bring some pressure on company’s profitability; however, the demand is rising consistently. It is also spending high towards advertisement and promotions which would attract new customer base. Considering these factors, we urge investors to HOLD the scrip.