DSIJ.in JULY 10 - 23, 2017 I DALAL STREET INVESTMENT JOURNAL (^65)
(Closing price as of July 05, 2017)
Reviews
DS
In this edition, we have reviewed Repco Home Finance and Pennar Industries. We suggest our
reader-investors to BOOK PROFIT in both Repco Home Finance and Pennar Industries
REPCO HOME FINANCE
BSE CODE
535322
Face Value
10 Reco. Price 633
BOOK-PROFIT CMP - 810 Scrip’s Movement 600 650 700 750 800 850 900 950 Mär.17 Apr.17 Mai.17 Jun.17 Jul.17 Scrip’s Movement 30 35 40 45 50 55 60 Sep.16Okt.16Nov.16Dez.16Jän.17Feb.17Mär.17Apr.17 Mai.17Jun.17 Change 28 Per Cent W e had recommended Repco Home Finance in issue no. 8 dated Mar 20- Apr 2, 2017, when the scrip was trading at633. Our
recommendation was on the back of
company’s strong financial performance
across all segments and also the
management’s strategic plans to expand
business operations in different
geographies in the next five years.
Repco Home Finance Ltd (RHFL) is a
Chennai-headquartered housing finance
company ncorporated in April 2000.
RHFL has its presence in two
segments,namely,individual home loans
and loans against property. The company
provides wide range of home loan
products to both salaried and non-
salaried individual borrowers. It is
registered with the National Housing
Bank (NHB) as a housing finance
company. The company has 31 satellite
centres in Tamil Nadu, Andhra Pradesh,
Jharkhand, Kerala, Karnataka,
Maharashtra,MP, Odisha, West Bengal
and Puducherry.
On the financial front, RHFL’s revenue
increased 13.96 per cent to 273.53 crore for Q4FY17, as compared to Q4FY16. The company’s PBDT also increased 20.32 per cent at79.69 crore, as against
66.23 crore in Q4FY16. Its PAT too increased 19.82 per cent from42.22
crore to 50.59 crore in the fourth quarter of FY17. On an annual basis, RHFL’s net income from operations stood at1,014.07 crore,
an increase of 19 per cent in FY17 as
compared to 852.13 crore in FY16. The W e had recommended Pennar Industries in issue no. 21 dated Sept 19-Oct 2, 2016 when the scrip was trading at43.65.
Our recommendation was backed by
the structural reforms in Indian
Railways and solar and civil construction
driving growth. The company has also
shown a strong order book across
verticals and it is a low-debt and
cash-rich company.
Pennar Industries Ltd, a holding
company which is engaged in the
manufacture of steel products, including
cold-rolled steel strips (CRSS) and cold
formed metal profiles. The company
manufactures precision tubes, cold-
rolled formed sections (CRFS), electro
static precipitators, railway wagons and
coach components, press steel
components and road safety systems. It
also offers solar module mounting
solutions; storage solutions, hydraulic
components and auto components,
electric resistance welded pipes, cold-
drawn welded tubes and air pre-heater
tubes.
‘On a quarter-on-quarter basis, the
company has posted robust numbers. In
Q4FY17, the net sales of the company
stood at 311.95 crore, an increase of 14.95 per cent as compared to Q4FY16. Its PBDT also increased 49.12 per cent toRs 21.98 crore in the fourth quarter ended March 2017, as against49.12 crore in the corresponding
quarter previous year. The company’s
PAT stood at 13.96 crore, up by 50.92 company’s PBDT increased 21.13 per cent to283.73 crore in FY17 as compared to
the previous year. The company’s PAT also
grew by 21.44 per cent to 182.25 crore in financial year ended March 2017 as compared to150.08 crore in the previous
ye ar.
After our recommendation, the share
price of Repco Home Finance has
increased by over 9 per cent. We would
advise our reader-investors to Book Profit
on the counter.
per cent as compared to 9.25 crore in Q4FY16. After our recommendation, the share price of Pennar Industries has increased by over 11 per cent. Also, recently in the month of June 2017, the company and its subsidiaries have received orders worth255 crore. So, we
would advise our reader-investors to
Book Profit.
PENNAR INDUSTRIES
BSE CODE
513228
Face Value
5 Reco. Price 43.65
BOOK-PROFIT CMP - `56.20
Change
29 Per Cent
brent
(Brent)
#1