Reviews

INDRAPRASTHA GAS 

Ticker : 532514
FV: Rs. 2
52-Week H/L: Rs. 320.30/215.20

We had recommended Indraprastha Gas Limited (IGL) in vol. 35, no. 15, (dated Feb 4, 2019), when the scrip was trading at Rs 284.10. Our recommendation was based on factors like government restrictions on diesel CVs entering Delhi and opening of new CNG outlets. In Q3FY19, the net sales for the company came in at Rs. 1508.44 crore, up 27.41 per cent from Rs. 1183.90 in December 2017. The net profit for the company stood at Rs 197.99 crore for the quarter ended December 2018, up 19.33 per cent from Rs 165.92 crore in December 2017. The EBITDA margin declined to 23.7 per cent from 24.97 per cent in December 2017. The company trades at expensive valuations of 30 times TTM PE and PB ratio of 6.14x. Thus, we recommended investors to BOOK PROFIT on Mar 26, 2019.

STATE BANK OF INDIA

Ticker: 500112
FV: Rs. 1
52-Week H/L: Rs. 325.85/232

We had recommended State Bank of India (SBI) in vol. 35, no. 12 (dated Jan 14, 2019), when the scrip was trading at Rs 304.64. Our recommendation was based on factors like improvement in asset quality, moderation in slippages and growth in advances. In Q3FY19, SBI reported a net profit of Rs 3954.81 crore as against a loss of Rs 2416.34 in the corresponding quarter last year. Provisions and contingencies saw a decline of 68 per cent to Rs 6006.22 crore as against Rs 18,876.21 crore in the same period last year. Net interest income (NII) improved 19.28 per cent YoY to Rs. 22,290.99 crore in Q3FY19 over Rs. 18,687.52 crore last year. The lender’s asset quality improved during Q3FY19 with gross non-performing assets (GNPAs) at 8.71 per cent as against 10.35 per cent YoY. Thus, we recommend a HOLD.