64 DALAL STREET INVESTMENT JOURNAL I JULY 8 - 21, 2019 DSIJ.in^
50.0 055.0 060.0 065.0 070.0 075.0 0Scrip’s Movement
Scrip’s Movement
(Closing price as of July 02, 2019)Reviews
DSIn this edition, we have reviewed ITD Cementation and Trident Ltd. We suggest our reader-investors to HOLD in
ITD Cementation and Trident Ltd
ITD CEMENTATION
BSE CODE
509496Face Value
` 1Reco. Price
` 125HOLD CMP - 108.35
80.0090.00100.00110.00120.00130.00140.00Change
13.32 Per CentI
TD Cementation India Limited is an
India-based company engaged inconstruction of a wide variety of
structures like maritime structures, massrapid transport systems (MRTS), dams
and tunnels, airports, highways, bridges
and flyovers and other foundations andspecialist engineering work. The
company’s activity consists of
construction. The company’s subsidiaryincludes ITD Cementation Projects
India Ltd.
On the consolidated financial front, the
company posted net sales of `589.95crore in Q4FY19 as against `654.73
crore, posting a marginal drop of 9.89
per cent from Q3FY18. The companyincurred an operating loss of `0.35 crore
in Q4Fy19, as compared to an operating
profit of `61.149 crore in Q4FY18. The
net loss in Q4FY19 stood at `36.55 croreas compared to the net profit of `27.45
crore posted in Q4FY18.On the annual front, the company’s net
sales increased by 24.96 per cent to`2283.46 crore in FY19 as compared to
`60.101,827.34 crore in FY18. The
PBIDT dropped 3.91 per cent in FY19 toreach 295.15 crore as against269.69
crore posted in FY18. The PAT fell by 30
per cent to `81.87 crore in FY19 ascompared to `117.15 crore posted
in FY18.On the valuations front, the company is
currently trading at a P/E multiple of33.82x on its TTM earnings while the
industry P/E is 24.16. Its peer companies
T
rident Ltd’s operations are
segregated into four main
segments, viz. yarns, terry towels,paper and chemicals. The yarn segment
product offering of the company includes
100% cotton yarn (grey/dyed/mercerized), single & TFO doubled,
hosiery & weaving (combed &
carded),etc. The terry towels segmentproduct offerings include piece-dyed
dobbies, yarn-dyed single and double
jacquards,Uni-dyed jacquards,etc. Papersegment product offerings consist of
spectra copier - ultra-finish, high-speedcopier paper, Goldline surface size
maplitho, etc. The chemicals segment
product offerings include battery gradesulphuric acid & commercial grade is also
manufactured. The company is also in the
business of textiles, paper and chemicals.
On the standalone financial front, the net
sales of the company has grown by 18.54
per cent to `1405.42 crore in Q4FY19
versus `7021185.56 crore in the samequarter of the previous year. The PBIDT
of the company stood at `258.91 crore in
Q4FY19 and witnessed a rise of 22.41 percent YoY from `51.41 crore. The net
profit has substantially grown by 80.06
per cent YoY to `92.57 crore in Q4FY19versus `51.41 crore posted in same
quarter of the previous year.In annual terms, the net sales have
increased by 14.01 per cent to`5,219.52 crore in FY19 as against
`4,578.30 crore in FY18. The PBIDT of
like Power Mech Projects and MEP
Infrastructure are trading at a TTM PE
of 15.27x and 33.82x respectively.TheROCE for ITDcementation stood at
20.44 per cent and the ROE was at 8.02
per cent.Since our recommendation, the price of
the stock has fallen by 13.32 per cent.
However, we expect the company to
deliver on the bourses in the near futureand thus recommend a HOLD.
the company in FY19 was 983.43,
showing a growth of 15.43 per cent from
`851.99 crore in FY18. The company has
witnessed a 39.52 per cent increase inPAT to `370.92 crore in FY19 as against
`265.86 crore in the previous fiscal. Theshare has risen by 1.14 per cent since our
recommendation, however we
recommend a HOLD looking at thepositive financials.
TRIDENT LTD
BSE CODE
521064Face Value
` 10Reco. Price
` 60.90HOLD CMP - `61.60
Change
1.14 Per Cent