Angel Broking Pvt Ltd

Published on 24/11/2020 9:57:20 AM

Buy Galaxy Surfactants CMP (Rs.)1,927 Target (Rs.)2,284 Upside (%)18.6 

Rationale - Galaxy Surfactants is a market leader in oleochemical-based surfactants, which is used in personal and home care products including skin care, oral care, hair care, cosmetics, toiletries and detergent products. The company has been increasing its share of high margin specialty care products in it’s portfolio which now accounts for ~ 40% of it’s revenues while the balance is accounted for by the performance surfactant business. The company has a very strong relationship with MNC clients like Unilever, P&G, Henkel, Colgate-Palmolive and supplies raw materials to them not only in India but also in US, EU and MENA region. Though the company’s operations had been impacted due to the Covid-19 outbreak in Q1FY21 we expect revenues to bounce back strongly in Q2FY21 given the company’s exposure to the personal and home care segment and recovery in the specialty segment. We recommend a buy on the stock with a target price of Rs. 1997.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 24/11/2020 9:57:03 AM

Accumulate Atul Ltd CMP (Rs.)6,399 Target (Rs.)7,339 Upside (%)14.7 

Rationale - Atul Ltd is one of India’s oldest and largest specialty chemical companies with diversified presence across various industries like Agrochemicals, Pharmaceuticals, dyes & pigments etc. The company has got one of the strongest chemistry skillets in the Indian chemical space and has got a very strong relationship with global chemical companies with exports accounting for 55-60% of the company’s revenues. The company's business has almost normalized in Q2FY2021 with the company posting 4.2% degrowth in revenues to Rs. `1,002 crore as compared to our expectation of a 10% degrowth. The life science division which accounts for ~35% of the company’s revenue has reported a 5.3% YoY growth in sales to `347.5 crore for the quarter. We expect the company to post Revenue/EBIDTA/PAT growth of 10.3%/14.8%/11.8% between FY2020-2022 led by growth in the life science division. 

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 24/11/2020 9:56:49 AM

Buy Inox Leisure CMP (Rs.)260 Target (Rs.)350 Upside (%)34.4 

Rationale - Share prices have corrected more than 40% as all theatres are closed down due to covid-19 issue. Although, long term fundamentals are intact. Covid-19 can lead to further consolidation in the industry                

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 24/11/2020 9:56:36 AM

Buy Metropolis Healthcare CMP (Rs.)2,237 Target (Rs.)2,593 Upside (%)15.9 

Rationale - We are positive on the company given expected long term growth rates of ~15% CAGR. Stable margins profile and moderating competitive intensity

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 24/11/2020 9:56:22 AM

Buy Hawkins Cooker CMP (Rs.)5,083 Target (Rs.)5,992 Upside (%)17.9 

Rationale - Gaining market share with peer, strong demand post Covid-19 and increase in penetration of cooking gas to drive higher growth.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 24/11/2020 9:55:43 AM

Accumulate Cholamandalam Inv & Fin Comp CMP (Rs.)352 Target (Rs.)392 Upside(%)11.5

Rationale - The Cholaman.Inv.&Fn has diversified product mix which helps them to capture growth in tractor and 2 W segment. Adequate capital adequacy (20%+) and declined trend in Cost of fund and strong parentage provide comfort.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 24/11/2020 9:55:32 AM

Accumulate JK Lakshmi Cement CMP (Rs.)346  Target (Rs.)391 Upside (%)12.9 

Rationale - JK Lakshmi is a predominantly north India cement company with capacity of 13.3 Mn Mt. Currently, north India is favorable location for the cement industry as it is consolidated to a large extent as well as demand and supply outlook is better compared to other locations. Q1FY21 numbers of the Company were better compared to its peers due to favorable regional presence. It is also trading at a significant discount compared to other north based cement company such as JK Cement as well as historical valuation.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 24/11/2020 9:55:20 AM

Buy Persistent Systems CMP (Rs.)1,156 Target (Rs.)1,531 Upside (%)32.4 

Rationale - Company has won a large deal during the quarter which will ramp up over the next few quarters. We expect the company to post revenue/EBITDA/PAT growth of 11.6%/21.4%/19.7% between FY20-FY22 given negligible impact of Covid-19 on FY21 numbers strong deal wins, ramp up of existing projects along with margins expansion.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 24/11/2020 9:55:09 AM

Accumulate IDFC First Bank CMP (Rs.)36 Target (Rs.)40 Upside (%)9.7 

Rationale - We believe efforts to built liability franchise, fresh capital infusion and provision taken on wholesale book will help to tide over this difficult time. The IDFC First Bank is trading ( 0.7 x FY22ABV) at a significant  discount to historical average valuations.

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164

Angel Broking Pvt Ltd

Published on 24/11/2020 9:54:55 AM

Buy Swaraj Engines CMP (Rs.)1,381 Target (Rs.)1,891 Upside (%)36.9 

Rationale - Swaraj Engines is engaged in the business of manufacturing diesel engines and hi-tech engine components. Diesel Engines are specifically designed for tractor application. Going forward, we expect recovery in the tractor industry (due to robust Rabi crop production, hike in MSP & the forecast of a normal monsoon) will benefit players like Swaraj Engines

Please refer disclaimer at https://trade.angelbroking.com/Downloads/ARQ-Disclaimer-Note.pdf 
SEBI Registration number is INH000000164