Update on Indian Equity Market:
Indian markets closed the week with muted gains on Friday. Nifty closed the day 12 points higher at 12,272. The best performers within the index were TITAN (3.5%), TATASTEEL (3.4%) and UPL (3.1%) whereas Vedanta (-2.7%), KOTAKBANK (-2.0%) and TATAMOTORS (-1.5%) were the worst performers. Within the sectoral index, PSU BANK (2.3%), MEDIA (1.2%) and METAL (0.6%) led the gains while AUTO (-0.4%), PHARMA (-0.3%) and FMCG (-0.1%) were the laggards. <\/p>\n\n\n\n
Key takeaways from the interview of Mr Anil Mittal, Chairman and Managing Director, KRBL Ltd;\u00a0dated 20th December 2019.<\/span> Update on Indian Equity Market:Indian markets closed the week with muted gains on Friday. Nifty closed the day 12 points higher at 12,272. The best performers within the index were TITAN (3.5%), TATASTEEL (3.4%) and UPL (3.1%) whereas Vedanta (-2.7%), KOTAKBANK (-2.0%) and TATAMOTORS (-1.5%) were the worst performers. Within the sectoral index, PSU BANK […]<\/p>\n","protected":false},"author":10,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[147],"tags":[218,217],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/565"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=565"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/565\/revisions"}],"predecessor-version":[{"id":566,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/565\/revisions\/566"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
\uf0b7 About the promoter shareholding in the company, Mr Mittal mentioned that the promoters\u00a0intend to increase the shareholding to 63-64% from current levels of 58.8%. The promoters\u00a0have bought 450,000 shares from the open market recently. However, he added that it also\u00a0depends on the price of the stock.
\uf0b7 In 2Q, the results were lower than expectations. This was because of an order worth 32,000\u00a0tonnes of rice were stuck at the ports on account of delay of LCs. He mentioned that\u00a0the company has shipped all the material in 3Q. Despite the slowdown, he is confident of\u00a0having robust 3Q. He highlighted that the management is expecting the revenue and profit\u00a0to grow more than 10% in the 3QFY20E.
\uf0b7 There was one case in which the Enforcement Directorate froze one of the properties\u00a0valued at about \u20b9 150 mn. This case has come before the High Court and it will take 2-3\u00a0years to finalize this issue. The total amount involved is \u20b9150 mn. He is confident that the\u00a0verdict will be in the company\u2019s favour. It will come through a legal process.
\uf0b7 In terms of the brands, the company\u2019s flagship brand, India Gate, is in great demand in the\u00a0international market as well as in Domestic market. In the category of India Gate classic,\u00a0there is virtually no competition for this SKU. This particular brand is fetching the highest\u00a0price in the entire world, including India. Five years ago, the company developed a new brand\u00a0called Unity to exclusively cater to middle-class families. This brand has picked up\u00a0momentum and is doing well, much beyond the company\u2019s expectations.
\uf0b7 Iran has been a concern for the company since last 6-7 months in terms of payments and orders.\u00a0There has been no demand from the country for last 4 months. For the orders previously\u00a0received and executed, the payments are stuck and exporters are having a hard time.\u00a0However, the company expects that this market will open up by the first week of January.
Consensus Estimate (Source: market screener website)
\uf0b7 The closing price of KRBL was\u00a0\u20b9\u00a0281\/- as of 20-December-19. It traded at 11x\/ 10x the
consensus EPS estimate for FY20E\/ FY21E of\u00a0\u20b9\u00a025.2\/ 29.3 respectively.
\uf0b7 Consensus target price of\u00a0for KRBL is not available. <\/p>\n","protected":false},"excerpt":{"rendered":"