1. Marico:
Marico registered a 5% increase in net profit of 333 crore in Q3FY23, compared to a profit of Rs. In the period before 317 years. Revenue from operations climbed 2.6% 2,470 crore in Q3FY23 as against Rs. 2,407 crore in the third quarter of the previous financial year. EBITDA also climbed 456 cr vs 431 crore in Q3FY22.
Amnish Agarwal – Head of Research – Prabhudas Lilladher said, “The company witnessed volume growth given the price stability in coconut oil and edible oils. Price correction in key packs led to a 4% growth in domestic volumes as compared to the industry. International The business reports high single-digit constant currency growth at 8%. We believe the company should continue to see a favorable RM basket in the near term.”
“We have a Hold rating on the stock with a TP of Rs 531. The stock is currently trading at 42.0x/36.4x FY24/FY25 EPS,” he added.
Marico shares closed on BSE It declined 1.16% on Friday to 493.80.
2. Emami:
During the third quarter, Emami reports 6.12% growth in net profit 232.97 crores Vs. 219.52 crore in the third quarter of the previous financial year. Revenue increased marginally by 1.2% 982.72 crore as against 971.06 cr in Q3FY22.
Emami said, the demand pattern during the quarter FMCG Sector remained sluggish with rural Market Experiencing constant demand pressure. Furthermore, the warm winter weather across the country hit sales even more.
The domestic business grew by 1% during the quarter, translating into a 3-year CAGR of 6%, while the international business grew by 7% during the quarter, translating into a 3-year CAGR of 13%.
On Emami, Agarwal said, “Although Emami posted top-line growth of 1.2%, as against our growth rate of 4.5%, GM/EBITDA margin falls short of our estimates by 144bps/106bps. However, PAT is higher than our estimates.” This was in line with estimates. GM contracted due to an unfavorable RM basket eliminating amortization for the Cash King acquisition, while EBITDA margin contracted due to increased employee and other expenses.
On valuations, he said, “We have given Accumulate rating on the stock with a target price of Rs. 521,” adding, “The stock currently trades at 22.4x/20.3x FY24/FY25 EPS.”
Emami’s stock closed at Rs. It closed at 419.30, down 0.76% on the BSE.
3. Kansai Nerolac:
Kansai Nerolac Paints, one of India’s leading paint companies, posted a standalone net profit of Rs. 112.3 cr in Q3FY23 down 15.2% YoY, while it earned a net revenue of Rs. 1,717.1 crore up 1.4% YoY. EBITDA was on 188.5 crore down 10.2% YoY.
Anuj Jain, managing director, Kansai Nerolac Paints Ltd, said, “The company was able to increase prices with all its major OEMs during the quarter which will help partially offset the high inflation seen over the past two years.” “Looking ahead, it is expected that demand will remain healthy in the short to medium term,” he added.
According to Aggarwal, KNPL has posted numbers below our estimates on all fronts due to volume miss. Demand trends are expected to strengthen in the fourth quarter.
“We expect margins to improve further in 4Q23 due to gradual cooling in RM basket. We have Accumulated Rating on the stock with TP of Rs 563,” said Agarwal. “Stock 29.8x/23.1x FY24 /FY25 trades at EPS.
Kansai’s share price closed on BSE 419 on Friday, up 1.13%.
4. Praj Industries:
In Q3FY23, Praj Industries achieved 68.17% growth in consolidated net profit 62.31 cr as against 37.05 crore in the December 2021 quarter. Consolidated revenue climbed 55.4% 909.97 crore in Q3FY23 Vs. 585.64 crore in Q3FY22.
Amit Anwani – Research Analyst, Prabhudas Lilladher said, “Praj reports strong revenue growth of 55.4% to Rs 9.1 billion (vs PL estimates ~Rs 9.2 billion and consensus estimates ~Rs 8.9 billion), opening orders Due to strong execution of the book (Rs33.6bn on Q2FY23). EBITDA up 82.3% YoY to Rs860mn (~PL estimate of Rs721mn & Consensus estimate of Rs798mn), EBITDA margin up 139bps YoY to 9.5% due to better absorption and softening of fixed overheads Commodity prices.PAT grew 68.2% YoY to Rs623mn (vs PL estimate Rs527mn and consensus estimate Rs608mn), mainly due to strong operating performance.
On valuations, Anwani said, “The stock is currently trading at a PE of 30.1x/20.8x/19.9 FY23/24/25E. We have a Buy rating on the stock with a TP of Rs 520, we maintain our estimates.” may be modified in the post-conference call.”
Praj’s share price closed on BSE 351.60 on Friday, down 0.69%.
5. JK Tyre:
In Q3 FY23, JK Tire reports 24% growth in consolidated net profit 67 crores as compared to 54 crore in the same period a year ago. total income increased 3,623 crore in Q3FY23 as against 3,084 crore in Q3FY22.
Also, the company’s board has approved funding of Rs 200 crore. 240 crore by way of issue of securities.
Mitul Shah, Head of Research, Reliance Securities, said, “JK Tire & Industries (JKI IN) delivered a healthy performance in 3QFY23, with EBITDA margin at 9.4%, as against our estimate of 8.6%, while Adj PAT was largely in line . With our estimates. Lower margin performance in Mexico impacted profitability.”
Shah added, “We expect market share gains by JK Tire and subsidiary Cavendish to support volumes for the company. Also, with the new capacity, there will be volume pick-up in 2W/3W tires and M&HCV. Improving sales will improve its profitability. With expected revival in replacement demand and ongoing traction among OEMs, currently, we have Buy rating on JKI.”
JK Tire share price closed on BSE 167.60 each, up 1.36%.
Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.
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