Reviews

ACC LTD.

Ticker : 500410 
FV: Rs. 10
52-Week H/L: Rs. 1676/1255

We had recommended ACC Ltd. in volume no. 35, issue no. 1 (dated Oct 22, 2018), when the scrip was trading at Rs 1518. Our recommendation was backed by factors like capacity ramp-up and expected uptick in demand in construction and infrastructure sectors led by normal monsoon. During Q3FY19, the revenue was up by 11 per cent YoY from Rs 3,494.08 crore to Rs 3,895.35 crore, led by increase in overall volumes. EBITDA was up by 5.89 per cent YoY to Rs 487 crore and EBITDA margin stood at 12.7 per cent, down 20 bps YoY due to rise in power and fuel and freight expenses. PAT grew by 257 per cent YoY from Rs 204.51 crore to Rs 730.47 crore. Despite the healthy topline growth, operational performance remained tepid due to rising costs, which hurt margins. Thus, we recommended investors to BOOK PROFIT on March 14, 2019



POWER GRID CORPORATION OF INDIA LTD.

Ticker : 532898
FV: Rs. 10
52-Week H/L: Rs. 217/173.05

We had recommended Power Grid Corporation Ltd. in volume no. 35, issue no. 9 (dated Dec 24, 2018), when the scrip was trading at Rs 198.15. Our recommendation was backed by factors like strong order book and beneficial draft tariff regulations (2019-2024). During Q3FY19, the revenue was up by 12.84 per cent YoY from Rs 7506.95 crore to Rs 8471.17. EBITDA for the company came in Rs 7988.4 crore, up 15.5 per cent from Rs 6914.5 crore. The EBITDA margin stood 94.3 per cent, an increase of 219 bps over the same quarter last year. PAT grew by 14.7 per cent YoY from Rs 2032.4 crore to Rs 2331.2 crore. Rising capitalisation of TBCB projects and its higher share in the upcoming projects for the company is expected to lead to a decline in returns from FY20 onwards. Thus, we urge investors to HOLD the scrip.