1
Please refer to important disclosures at the end of this report
1
1
Angel Top Picks – September 2020
Indian equities rally for the third month in a row driven by FPI flows – Indian
equities closed in the green for the third month in arrow with the benchmark Nifty
up by 2.8% for the month driven by FII flows. FII flows for the month stood at
`47,080 crore which is the highest during the calendar year. Markets were also
supported by better than expected Q1FY2021 numbers along with continued
improvement in underlying economic conditions.
Current phase of global rally led by improvement in economic activities - Global
markets have recovered sharply from the lows in March with the S&P 500 at all
time highs with the S&P 500 closing the month at 3,500 which was 8.5% higher
than its Jan closing levels. While the initial phase of the rally from the March lows
was led by fed induced liquidity the second phase of the rally from July was driven
by improvement in the global economy.
Domestic economy too continued improving in August – The economy continued to
improve in August which was reflected in high frequency data like Auto sales and
PMI numbers. Auto companies reported another month of strong sequential
growth with Maruti Suzuki reporting a 17.1% yoy increase in August domestic sales
as compared to a 1.1% growth in July while Hero Motocorp reported a 6.5% yoy
growth in motorcycle sales. The manufacturing PMI for August also pointed to
continued improvement as it improved to 52.0 from 46.0 in July.
Easing of restrictions post unlock 4.0 to provide further impetus to the economy -
Post Unlock 1.0 in June there had been a significant improvement in economic
activities from May till the third week of July. However state Governments imposing
localized lockdowns in July let to tapering off growth from the last week of July.
Due to lockdowns in April and May there is pent up demand which along with
inventory buildup prior to the festive season and further opening up of the
economy under unlock 4.0 should lead to improvement in economic activities.
We expect recovery theme to gather strength while sectors with revenue visibility
will continue doing well – We expect the rural, essential and digital theme to
continue playing out over the next few quarters given revenue visibility and strong
growth prospects. We therefore continue to maintain our positive outlook on
sectors like Agrochemicals, IT, Telecom, Two wheelers and tractors. However we
also expect the recovery theme to gather strength in the near future due to
continued improvement in the economy. Within the recovery theme we believe that
sectors like low ticket consumer durables, cement, hotels and multiplexes should
do well.
Key risks which can derail the recovery rally are 1) Surge in infections as the
economy is opened up further 2) Delay in vaccine production as compared to
timelines expected by markets 3) Growth faltering significantly as compared to
market expectations post festive season.
Top Picks Performance
Return Since Inception (30th Oct, 2015)
Top Picks Return
69.0%
BSE 100
40.1%
Outperformance
28.9%
Source: Company, Angel Research
Company
CMP (`)
TP (`)
Auto
Endurance Technologies
1,062
1,297
Swaraj Engines
1,610
1,891
Banking/NBFC
Cholamandalam Inv.
234
280
IDFC First Bank
32
36
Consumer Durables
Hawkins cooker
4,842
5,682
VIP Industries
285
348
FMCG
Britannia Industries
3,706
4,220
IT
Persistent Systems
990
1,276
Zensar Technologies
171
204
Pharma & Healthcare
Metropolis Healthcare
1,787
2,156
Telecom/ Others
Chalet Hotels
154
200
Hind. Aeronautics
911
1,125
Inox Leisure
290
350
JK Lakshmi cement
264
328
Reliance Industries
2,077
2,366
2
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Angel Top Picks | September 2020
September 5, 2020
2
Top Picks
3
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Angel Top Picks | September 2020
September 5, 2020
3
Chalet Hotel
Part of the K. Raheja Corp, CHL is an owner, developer and asset manager of
high-end hotels in key metro cities in India. The Company’s hotel comprises
six operating hotels in the key Indian cities of Mumbai, Hyderabad, Bengaluru
and Pune representing 2,554 key.
All the hotels are branded with globally recognized brands, such as JW
Marriott, Westin, Marriott, Marriott Executive Apartments, Renaissance, Four
Points by Sheraton and Novotel, which are held by Marriott Group and the
Accor Group
Post sharp drop in occupancy in the month of April the company has reported
strong pick up in occupancy for June through August. We expect further
improvement in business post the festive season and normalization of
operations in FY22.
Hawkins Cooker
HCL operates in two segments i.e. Pressure Cookers and Cookware. Over the
last two years, the company has outperformed TTK Prestige (market leader) in
terms of sales growth ~13% vs. ~4% in Cookers & Cookware segment.
Cooking gas (LPG) penetration has increased from 56% in FY2014 to 95% in
FY2020, which would drive higher growth for Cookers & Cookware compared
to past.
Increase demand for Kitchen product post Covid-19.
Strong balance sheet along with free cash flow and higher profitability.
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
575
13.0
51
96.7
32.5
49.6
16.1
4.3
FY2022E
728
15.1
77
145.7
42.4
32.9
14.0
3.4
Source: Company, Angel Research
Stock Info
CMP
154
TP
200
Upside
29.9%
Sector
Others
Market Cap (` cr)
3,162
Beta
0.7
52 Week High / Low
395 /99
3 year-Chart
Source: Company, Angel Research
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
484
34.6
-73
0.0
0.0
NA
3.1
14.3
FY2022E
995
40.7
83
4.0
0.0
38.3
2.9
7.2
Source: Company, Angel Research
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50
100
150
200
250
300
350
400
Feb-19
Apr-19
Jun-19
Aug-19
Oct-19
Dec-19
Feb-20
Apr-20
Jun-20
Aug-20
Stock Info
CMP
4,842
TP
5,682
Upside
17.3%
Sector
Durable
Market Cap (` cr)
2,561
Beta
0.6
52 Week High / Low
5,539 /2,865
3 year-Chart
Source: Company, Angel Research
-
1,000
2,000
3,000
4,000
5,000
6,000
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Nov-18
Feb-19
May-19
Aug-19
Nov-19
Feb-20
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Aug-20
4
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Angel Top Picks | September 2020
September 5, 2020
4
Hindustan Aeronautics
HAL is one of the premier defense PSU in India along with BRL and has over
the years showcased research, design and development capabilities with the
successful development of military aircraft and helicopters such as the Ajeet,
Marut, HPT-32, Kiran and Advanced Light Helicopter.
Indigenous aircraft and helicopters HAL has also manufactured aircrafts under
license from such foreign companies including the MiG 21FL/M/BIS, MiG-27,
Dornier 228, Su-30 MkI, Hawk Mk 132 aircraft etc.
Currently the company has an order backlog of ~Rs. 52,000 cr which is
expected increase substantially over the next few years as the company is likely
to get many new orders including orders for 83 LCA Mark 1A worth ` 39,000
cr which is expected to go for cabinet approval very soon.The company also
has various other projects in the pipeline including Light Utility Helicopter
(LUH) and the company is likely to fetch some orders for the same in FY2021.
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
21293
24.5%
2961
88.6
23.3
10.3
2.2
1.7
FY2022E
25552
25%
3791
113.4
24
8
2.1
1.5
Source: Company, Angel Research
Persistent System
Persistent Systems has a very strong presence in Hi tech, manufacturing and
life science segments which ware amongst the least impacted sectors due to
Covid-19.
Company has posted a very strong set of numbers for Q1FY21 with dollar
revenue growth of 3.1% qoq. Company has also reported improvement in
margins due to tight cost control. 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 margin expansion.
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(x)
(%)
(%)
(x)
FY2021E
4,159
15.3
415
54.3
15.4
18.2
2.8
1.4
FY2022E
4,756
15.3
488
63.8
15.9
15.5
2.5
1.2
Source: Company, Angel Research
Stock Info
CMP
990
TP
1,276
Upside
28.9%
Sector
IT
Market Cap (` cr)
7,564
Beta
0.5
52 Week High / Low
1,128/420
3 year-Chart
Source: Company, Angel Research
-
200
400
600
800
1,000
1,200
Jul-17
Oct-17
Jan-18
Apr-18
Aug-18
Nov-18
Feb-19
May-19
Aug-19
Nov-19
Feb-20
May-20
Aug-20
Stock Info
CMP
911
TP
1,125
Upside
23.4%
Sector
Defence
Market Cap (` cr)
30,454
Beta
0.5
52 Week High / Low
1,423/448
3 year-Chart
Source: Company, Angel Research
-
200
400
600
800
1,000
1,200
1,400
Mar-18
Jul-18
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Jun-19
Sep-19
Jan-20
May-20
Aug-20
5
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Angel Top Picks | September 2020
September 5, 2020
5
Inox Leisure
Inox Leisure is the second largest multiplex company in India after PVR and
operates more than 600 screens across India.
Multiplex screens are gaining ground in India at the expense of single screens.
According to FICCI, multiplex screens share have increased from ~26% in
CY16 to ~33.5% in CY19, which will continue to increase.
Share prices have corrected ~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.
We are positive on the prospects of the company given that has strong
balance sheet, increasing market share of multiplexes and also increasing
appetite for Hollywood and smaller budget movies which is expected to reduce
volatility in earnings due to lower dependency on big Bollywood movies
Key Financials:
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
628
-8.6
-146
-14.2
-15.0
0.0
4.7
4.7
FY2022E
2153
17.0
162
15.8
14.5
18.4
2.7
1.5
Source: Company, Angel Research (Above table is ex Ind AS 116).
Zensar Technologies
Zensar Technologies is one of the leading IT service providers to the High tech
verticals. The company has a very strong presence in Hi tech and
manufacturing which ware amongst the least impacted sectors due to Covid-
19.
Company was adversely impacted between FY18-20 due to ramp down in the
retail and consumer group segment share of which has gone down from
27.1% of revenues in FY2018 to 20.7% of revenues in FY2020. The consumer
group segment further degrew to 12.0% of revenues in Q1FY2021.
Company has won deals worth USD 150mn during the quarter and
management has said that deal pipeline is very strong at USD 1.5bn as
compared to USD 1.0bn a quarter ago.
We expect the company to post revenue/EBITDA/PAT growth of
4.5%/17.8%/19.7% between FY20-FY22 given that the worst is over for the
company in terms of client ramp downs.
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
4,059
14.7
319
14.2
13.5
12.0
1.6
0.8
FY2022E
4,558
15.0
384
17.0
14.3
10.0
1.4
0.6
Source: Company, Angel Research
Stock Info
CMP
171
TP
204
Upside
19.3%
Sector
IT
Market Cap (` cr)
3,846
Beta
0.6
52 Week High / Low
230 /64
3 year-Chart
Source: Company, Angel Research
-
50
100
150
200
250
300
350
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Aug-19
Nov-19
Feb-20
May-20
Aug-20
Stock Info
CMP
290
TP
350
Upside
20.6%
Sector
Media & Entertainment
Market Cap (` cr)
2,984
Beta
0.7
52 Week High / Low
510 /158
3 year-Chart
Source: Company, Angel Research
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100
200
300
400
500
600
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Aug-19
Nov-19
Feb-20
May-20
Aug-20
6
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Angel Top Picks | September 2020
September 5, 2020
6
Metropolis Healthcare
Metropolis is a leading Pathology centre in India. Company has an asset light
model with a strong Balance sheet having cash and cash equivalents to the
tune of ₹235cr as on 30st June, 2020.
Currently, the diagnostic industry is dominated by standalone centers (~48%)
followed by hospital based labs (~37%) and diagnostic chains (~15%)
From 62.6% revenue de-growth (including covid testing) YoY in April'20, the
Company has registered mid double digit revenue growth in July'20 as covid
revenue is making up for the losses in non-covid revenue. We expect non-
covid business to be back to normal from Q3FY21 onwards.
We are positive on the long term prospects of the Company given expected
long term growth rates of ~15% CAGR, stable margins profile and
moderating competitive intensity.
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(x)
(%)
(%)
(x)
FY2021E
920
25.0
145
28.7
23.1
62.1
14.4
9.6
FY2022E
1156
28.4
222
43.9
27.8
40.6
11.3
7.5
Source: Company, Angel Research
Cholamandalam Inv. Fin. Com.
The CIFC has one of the most diversified AUMs in terms of product mix and
geographical presence. None of its product segments account for over 26% of
overall AUM. The maximum geographic zonal exposure in terms of AUM is
27% (south).
Management has a stress-tested book and guided for lower incremental
provision requirement. The final provision for FY21 would be similar to FY20.
Hence, we believe existing COVID provision is adequate.
A diversified product mix will help capture growth in the LCV, tractor, and 2W
segment. Adequate capital adequacy (20%+) and declined trend in The cost
of funds and strong parentage provide comfort. The company will benefit
significantly from stabilization in the operating environment.
Key Financials
Y/E
NII
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
FY2021E
3,783
5.8
987
12
102
1.5
11.5
19.3
2.3
FY2022E
3,962
5.7
1,346
17
105
2.0
14.1
14.1
2
Source: Company, Angel Research
Stock Info
CMP
234
TP
280
Upside
17.7%
Sector
Financials
Market Cap (` cr)
19,195
Beta
1.6
52 Week High / Low
349 /117
3 year-Chart
Source: Company, Angel Research
-
50
100
150
200
250
300
350
400
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Aug-19
Nov-19
Feb-20
May-20
Aug-20
Stock Info
CMP
1,787
TP
2,156
Upside
20.6%
Sector
Healthcare
Market Cap (` cr)
9,101
Beta
0.8
52 Week High / Low
2,110/994
3 year-Chart
Source: Company, Angel Research
-
500
1,000
1,500
2,000
2,500
Mar-19
May-19
Jun-19
Aug-19
Sep-19
Nov-19
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Feb-20
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7
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Angel Top Picks | September 2020
September 5, 2020
7
J.K. Lakshmi Cement
JK Lakshmi promoted by Singhania group 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.
Freight and power & fuel are important line items of cost for cement
companies. Fall in crude prices will help to reduce cost/tonne for the
company.
It is also trading at a significant discount compared to other north based
cement company such as JK Cement as well as historical valuation.
Britannia Industries
Britannia Industries (BRIT)’s principal activity is manufacture and sale of
biscuits, bread, rusk, cakes and dairy products.
BRIT has brands like Tiger, Good-Day, and 50:50 under its fold with an
estimated market share of 33% in the Indian biscuits industry. Biscuits
contribute more than 80% of the company’s turnover.
BRIT has an overall distribution reach of 5.5 million outlets. With consistent
focus on distribution expansion, BRIT has narrowed the gap with the No. 1
player. The gap with largest distributed brand is now just 0.8 million outlets.
In Q1FY21 BRIT have outperformed other companies in FMCG space in both
top-line and bottom line front. Going ahead in near term, food industry is
witnessing a shift from dining out/ street food to home consumption. BRIT
being a low price product with trusted brands is well positioned to cater the
shift.
Stock info
CMP
264
TP
328
Upside
24.4%
Sector
Cement
Market Cap (` cr)
3,102
Beta
0.7
52 Week High / Low
390 /180
3 year-Chart
Source: Company, Angel Research
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
3793
16.9
223
19.0
12.3
14.9
1.7
1.1
FY2022E
4452
16.2
278
23.6
13.7
12.0
1.5
0.9
Source: Company, Angel Research (Standalone nos.)
Stock Info
CMP
3,706
TP
4,220
Upside
13.9%
Sector
FMCG
Market Cap (` cr)
89,208
Beta
0.8
52 Week High / Low
4,015/2,100
3 year-Chart
Source: Company, Angel Research
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
13,269
17.6
1712.0
71.2
29.5
52.1
20.3
6.7
FY2022E
14,624
16.5
1753.0
72.9
28.6
50.9
18.0
6.0
Source: Company, Angel Research
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50
100
150
200
250
300
350
400
450
500
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Aug-19
Nov-19
Feb-20
May-20
Aug-20
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500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
Jul-17
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Apr-18
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Nov-18
Feb-19
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Nov-19
Feb-20
May-20
Aug-20
8
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Angel Top Picks | September 2020
September 5, 2020
8
VIP Industries
VIP Industries Ltd (VIP) is engaged in the manufacturing of hard and soft
luggage both. VIP's brands include Carlton, VIP Bags, Skybags, Aristocrat, Alfa
and Caprese.
Shift in trend towards the organized sector to propel growth. Substantial brand
visibility with a wide distribution network. VIP has a well diversified product
bouquet, which caters to consumers from all income groups
The recent correction has given the investors an opportunity to invest in a
market leader with a strong brand & wide distribution network.
Endurance Tech.
It mainly caters to two and three-wheeler OEMs in India and supplies
aluminum casting products to four-wheeler OEMs in Europe.
The company operates 17 plants in India, 9 plants overseas and 4 R&D sites
Post Covid19, evolving consumer preference for lower ticket priced means of
private transport amid pressurized incomes & awareness around social
distancing are expected to act as tailwinds for domestic 2-Ws in India, 4-Ws
across developed nations.
Going ahead, given the company’s ability to gain new businesses & market
share across categories; we recommend a buy for Endurance.
Stock Info
CMP
285
TP
348
Upside
22.1%
Sector
Durable
Market Cap (` cr)
4,030
Beta
0.8
52 Week High / Low
520 /187
3 year-Chart
Source: Company, Angel Research
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(x)
(%)
(%)
(x)
FY2021E
800
NA
-136
-9.6
NA
-29.6
7.6
2.4
FY2022E
1650
16.5
108
7.6
19.5
37.3
6.7
0.2
Source: Company, Angel Research
Stock Info
CMP
1,062
TP
1,297
Upside
22.1%
Sector
Others
Market Cap (` cr)
14,940
Beta
0.6
52 Week High / Low
1,201/562
3 year-Chart
Source: Company, Angel Research
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
5884
14.0
281.0
20.0
8.7
53.2
4.6
1.9
FY2022E
7465
15.8
608.0
43.2
16.2
24.6
3.6
1.7
Source: Company, Angel Research
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100
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700
Jul-17
Oct-17
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1,200
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Nov-19
Feb-20
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Aug-20
9
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Angel Top Picks | September 2020
September 5, 2020
9
Swaraj Engines
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 tractor industry (due to robust Rabi crop
production, hike in MSP & the forecast of a normal monsoon) will benefit
player like Swaraj Engines.
The company has healthy balance sheet along with free cash flow and higher
profitability. The company is trading at reasonably lower valuations
Reliance Industries
Reliance Industries Ltd. (RIL) is India’s largest company with dominant
presence in Refining, Petrochemicals, Telecom and Retail businesses.
RIL has built up a dominant telecom business and has already attained market
leader status with 38.3 cr. subscribers at the end of Q4FY20. Telecom
business to witness robust growth over next few years due to tariff hikes and
shift of subscribers from Vodafone Idea to other telecom players
RIL has also built a very strong retail business which is the largest organized
retailing company in India. We expect the retail business to be a key value
driver for Reliance over the long run though there would be some impact on
business in FY21 due to the Covid 9 outbreak.
The company has raised INR 1.52lakh cr. from marquee investors like
Facebook, General Atlantic, KKR, Intel etc reaffirms our conviction in the
company’s potential transformation to a digital play from a pure brick and
mortar company.
Stock Info
CMP
1,610
TP
1,891
Upside
17.5%
Sector
Others
Market Cap (` cr)
1,953
Beta
0.3
52 Week High / Low
1,700/808
3 year-Chart
Source: Company, Angel Research
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
711
16.7
64
53.0
16.2
30.4
5.2
2.9
FY2022E
899
17.0
86
71.2
17.1
22.6
4.1
2.3
Source: Company, Angel Research
Stock Info
CMP
2,077
TP
2,366
Upside
13.9%
Sector
Diversified
Market Cap (` cr)
1,367,284
Beta
1.1
52 Week High / Low
2,198 /867
3 year-Chart
Source: Company, Angel Research
Key Financials
Y/E
Sales
OPM
PAT
EPS
ROE
P/E
P/BV
EV/Sales
March
(` cr)
(%)
(` cr)
(`)
(%)
(x)
(x)
(x)
FY2021E
3,34,223
12.7
26,360
41.6
5.7
50.0
2.8
7.9
FY2022E
4,24,086
14.0
42,035
66.3
8.7
31.3
2.7
6.2
Source: Company, Angel Research
-
500
1,000
1,500
2,000
2,500
3,000
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Nov-18
Feb-19
May-19
Aug-19
Nov-19
Feb-20
May-20
Aug-20
-
500
1,000
1,500
2,000
2,500
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Nov-18
Feb-19
May-19
Aug-19
Nov-19
Feb-20
May-20
Aug-20
10
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ence
sourc
Angel Top Picks | September 2020
September 5, 2020
10
IDFC First Bank
The Ability to raise sufficient liquidity at Low cost would be The Key criteria for
banks to navigate the current situation, as asset side inflow would be limited.
IDFC Fist Bank, Post management change has clearly outperformed in
building liability franchise and retail lending.
Since new management took charge, every qtr. liability franchise has been
strengthened. CASA ratio improved from 10.4% in Q3FY19 to 33.7% In
Q1FY21. NIM has improved to 4.53% in Q1FY21 as compared to 4.24% in
Q4 FY20 and 2.89% in Q3FY19. Retail advance mix is continuously
improving.
The Bank had raised Rs. 2,000 crores of fresh equity capital during Q1FY21.
Post the capital raise, the Capital Adequacy Ratio will be 15.03% with CET-1
Ratio of 14.58%.
We believe efforts to build a liability franchise, fresh capital infusion, and
provision taken on the wholesale books will help to tide over this difficult time.
The IDFC First Bank is trading (1.0x FY22ABV) at a significant discount to
historical average valuations.
Stock Info
CMP
32
TP
36
Upside
12.5%
Sector
Banking
Market Cap (` cr)
17,981
Beta
1.2
52 Week High / Low
48 /18
3 year-Chart
Source: Company, Angel Research
Key Financials
Y/E
NII
NIM
PAT
EPS
ABV
ROA
ROE
P/E
P/ABV
March
(` cr)
(%)
(` cr)
(`)
(`)
(%)
(%)
(x)
(x)
FY2021E
6,939
4.8
90
0.2
29
0.1
1
202
1.1
FY2022E
8,121
5.3
1,530
2.7
31
0.9
8
12
1.0
Source: Company, Angel Research
-
10
20
30
40
50
60
70
80
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Nov-18
Feb-19
May-19
Aug-19
Nov-19
Feb-20
May-20
Aug-20
11
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Refer
ence
sourc
Angel Top Picks | September 2020
September 5, 2020
11
Changes in Recommendation
Exhibit 1: Stocks bought in last 6-months
Stock Name
Buy Call Date
Buy Price
Dr Lal Pathlabs
01-04-2020
1,384
P & G Hygiene
01-04-2020
10,161
Ipca Labs.
01-04-2020
1,398
Bharti Airtel
01-04-2020
421
Dabur India
16-04-2020
498
L & T Infotech
16-04-2020
1,493
Infosys
16-04-2020
626
Britannia Inds.
16-04-2020
2,832
Alkem Lab
17-04-2020
2,688
Reliance Inds.
17-04-2020
1,189
P I Inds.
24-04-2020
1,507
Galaxy Surfact.
24-04-2020
1,394
Aarti Inds.
24-04-2020
929
Dhanuka Agritech
07-05-2020
438
Hind. Unilever
08-05-2020
2,056
Dr Reddy's Labs
28-05-2020
3,877
H D F C
01-06-2020
1,740
Larsen & Toubro
01-06-2020
951
Escorts
01-06-2020
970
ICICI Bank
01-06-2020
345
Axis Bank
03-06-2020
424
Bajaj Fin.
03-06-2020
2,477
Can Fin Homes
03-06-2020
316
Endurance Tech.
08-06-2020
838
Swaraj Engines
08-06-2020
1,290
Persistent Sys
29-07-2020
885
Zensar Tech.
29-07-2020
155
Alembic Pharma
04-08-2020
1,023
J.K. Lakshmi Cement
24-08-2020
287
Cholamandalam Inv & Fin Comp
24-08-2020
232
VIP Industries
27-08-2020
303
Hawkins Cookers
27-08-2020
4,918
Inox Leisure
28-08-2020
304
Chalet Hotel
28-08-2020
165
Metropolis Healthcare
28-08-2020
1,832
Hindustan Aeronautics
03-09-2020
926
Source: Company, Angel Research
12
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ence
sourc
Angel Top Picks | September 2020
September 5, 2020
12
Exhibit 2: Stocks sold in last 6-months
Stock Name
Sell Date
Sell Price
Dr Lal Pathlabs
09-04-2020
1,462
RBL Bank
15-04-2020
121
Shriram Trans.
15-04-2020
685
KEI Inds.
16-04-2020
279
Safari Inds.
16-04-2020
402
Amber Enterp.
16-04-2020
1,116
UltraTech Cem.
21-04-2020
3,409
Inox Wind
24-04-2020
27
Hind. Unilever
04-05-2020
2,121
ICICI Bank
05-05-2020
341
Dabur India
06-05-2020
450
Asian Paints
07-05-2020
1,610
Hawkins Cookers
22-05-2020
4,235
Bata India
26-05-2020
1,265
GMM Pfaudler
26-05-2020
3,732
Alkem Lab
27-05-2020
2,425
Dhanuka Agritech
27-05-2020
573
Nestle India
08-06-2020
17,160
P & G Hygiene
08-06-2020
10,150
Infosys
08-06-2020
708
Hind. Unilever
08-07-2020
2,161
Avenue Suparmart
13-07-2020
2,210
Axis Bank
14-07-2020
423
Bajaj Finance
21-07-2020
3,255
Larsen & Toubro
28-07-2020
913
Colgate-Palmolive
29-07-2020
1,413
Escorts
03-08-2020
1,110
Ipca Lab
11-08-2020
2,037
Aarti Industries
13-08-2020
1,012
Galaxy Surfactants
13-08-2020
1,751
L&T Infotech
13-08-2020
2,504
HDFC Ltd.
14-08-2020
1,813
ICICI Bank
17-08-2020
359
Dr. Reddy Lab
20-08-2020
4,481
Jindal Steel
24-08-2020
224
Bharti Airtel
24-08-2020
520
PI Industries
31-08-2020
1,920
Alembic Pharma
02-09-2020
921
Source: Company, Angel Research
13
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ence
sourc
Angel Top Picks | September 2020
September 5, 2020
13
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement
Top Picks
1. Financial interest of research analyst or Angel or his Associate or his relative
No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or
relatives
No
3. Served as an officer, director or employee of the company covered under Research
No
4. Broking relationship with company covered under Research
No
Ratings (Based on Expected Returns: Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
Over 12 months investment period) Reduce (-5% to -15%) Sell (< -15%)
Hold (Fresh purchase not recommended)