Went deep into how LIC has posted such an explosive growth in earnings !! There has been a change in accounting policy, and with this change it might report the same kind of numbers in the quarters going forward  Blockbuster earnings  Q2 Net Profit 15900 CR  Q2 EPS 25 LICI Life Insurance Corporation Of India Ltd - Superb results over the quarter  Q2FY23 Net Profit Of 15,854 CR  VS Q1FY23 Net Profit Of 603 CR  VS Q2FY22 Net Profit Of 1480 CR  Forward PE of just 6, I am expecting similar kind of numbers in the quarters going forward Reason being I am expecting similar kind of explosive numbers is that there has been change in accounting policy resulting in transfer of the accretion in the Available Solvency Margin from Non-Par to Shareholders funds. 4. Note No. 4 regarding change in accounting policy resulting in transfer of the accretion in the Available Solvency Margin from Non-Par to Shareholders funds amounting to Rs.14,27,180...

It is India's first and the only Solar Glass Manufacturing company.  In September quarter, the company's income increased from Rs. 114.09 crore to Rs. 160.52 crore, operating profit increased from 31.67crore to Rs. 53.80 crore, while, witnessed net profit of Rs. 34.11 crore as against losses of Rs. 14.96 crore in the corresponding quarter last year.  As against equity of Rs. 13 crore, the company has reserves of Rs. 677 crore. The company has debt of Rs. 71 crore and investment of Rs. 262 crore, so technically it is debt free.  The stock has witnessed bullish trend in last one and a half year, but the sector's future is bright. Therefore, the stock can be purchased in phased manner.

Indian Energy Exchange (Rs. 295.00) (Code: 540750) Established in 2007,  Indian Energy Exchange is a power trading platform. The company had come out with an IPO in October 2017 and issued shares at Rs. 1650 apiece. It had later split the equity shares of face value of Rs. 10 into ten shares of Re. 1. The stock has just gone ex-bonus. The A group listed shares touched a 52-week high of Rs. 318 and low of Rs. 66. IEX is a professionally-run company. Flis hold 37.74% stake, mutual funds 15.86%, Dlls 7.28%, while public shareholding is 39.13%. Its equity is Rs. 30.16 crore and reserves of Rs. 600 crore. Its market cap is Rs. 26,533 crore.  For the September quarter, its income went up from Rs. 71 crore to Rs. 109 crore, and profit from Rs. 47 crore to Rs. 78 crore. The quarterly EPS was Rs. 0.87. The shares are quoting at a P/E multiple of 100, which is expensive, but the sector has a bright future. Investors can consider putting a small amount in IEX shares.

WARD WIZARD INNOVATIONS and MOBILITY LTD  BSE CODE: 538970  CMP RS. 71.15 SHORT TERM TARGET 85 POSITIONAL TARGET 110 WardWizard sells electric two wheelers under the Joy e-Bike brand In November 2021, Joy e-Bike sold 3,290 electric two-wheelers in India EV Sales November 2021: WardWizard Sells 3,290 Electric Two-Wheelers Witnessing 12-Fold Growth In November 2021, WardWizard, which sells electric two-wheelers under the Joy e-Bike brand, sold 3,290 electric scooter and motorcycle in India. Compared to 255 units sold a year ago in November 2020, the company witnessed a massive twelve-fold growth. WardWizard Innovations and Mobility, which manufactures and sells electric bikes under the Joy e-Bike brand, has announced recording its high est-ever monthly sales in November 2021. Last month, the company sold 3,290 electric scooters and motorcycles, witnessing a massive twelve-fold growth compared to 255 units sold a year ago in November 2020. The company says the massive...

When and How to average ? Though the broad basedstock indices are down by about 6% from the 52 week highs, many stocks specially from the mid and small cap category are down by 15% to 20%. Since last 18 months the stock indices moved upwards only and investors are sitting on good liquidity to average down the existing stocks. Investors are often confused as to when and how to average. First things first, averaging should be resorted only if there is a scope for further increasing the weightage of the stock in your portfolio. Also, if you are using Stop Loss and the stock is near to Stop Loss then avoid averaging. Averaging should be performed based on percent changes and not on absolute change in shareprice. When to average? If the investment horizon is less than 24 months then better avoid resorting to multiple averaging, as the probability of bounce back are limited. If the investment horizon is more than 24 months then it makes sense to keep averaging, as and when the op...

Business Update Domestic revenue were up 68% YoY of which power gen revenue came in at INR6.4b (+148% YoY), industrials revenue came in at INR2.3b (+34% YoY) and distribution revenue up 15% YoY at INR3.7b. Exports were up 10% YoY to INR4.4b. One large one-time domestic order of USD20m from data-center helped growth in revenues. Demand environment looks good across end markets. Demand outlook Construction activity is coming back, especially the road construction. Mining continues to be strong, especially given the increase in commodity costs. Rail is still sluggish while marine should start picking up end of this fiscal. On export market – Middle East has started recovering on account of oil prices and APAC looks better relatively. LATAM and Europe are lagging behind and should recover in next two quarters. Margin outlook Company has managed to keep other expenses in control. Operating leverage aided margins in 2QYF22. With rising sales, KKC has started providing for warrant...

Demand and Supply: Demand remains strong in JLR, with a record order book of~127k units. The semiconductor shortage situation remains dynamic. However, JLR expects a gradual recovery starting 2HFY22, with higher production (by ~50k units) in 3Q from 2QFY22 levels. Inventory fell by 50k units YoY at the JLR and dealer level. Dealer inventory stood at 27k units. It will have to build 30-40k units of systemic inventory (of which 66% will at the dealer level), in addition to servicing its order book of~127k units. BEP stood at 85k units/quarter in 2QFY22. The management expects it to fall further to 70-75k in 3QFY22 due to a better mix. Underlying BEP will be less than 85k/quarter v/s 90k in 1HFY22 and 100k in FY21. Its refocus program has delivered GBP500m in 1HFY22 (GBP300m/GBP200m in market performance/investment savings), of which GBP300m was in 2Q alone (GBP150m each in market performance/investment savings). The management expects to further reduce average material cost p...

Chip shortage: Despite strong underlying demand across businesses, 2QFY22 performance was severely impacted by the chip shortage. The supply of chips is improving gradually, although not very strongly. RM cost impact: Also, the transitory impact of higher RM prices (due to the lag in pass-through) impacted all the business in 2Q. However, the contractual lag in pricing is expected to narrow going forward. The SMRPBV order book as of Sep’21 stood at EUR15.3b (v/s EUR15.6b as of Mar’21), with gross new order wins of EUR2.1b and the start of production of orders worth EUR2.4b. The share of EVs in the order book stood at 27% (v/s 25% in Mar’21). MSS supplies to 7 of the top 10 EVs globally. The pure EV platforms come with advanced features, resulting in higher content for the same components of MSS.\ SMRPBV was impacted by lower revenues (due to the chip shortage), along with higher input, labor, and freight costs in key geographies, resulting in an adverse impact on margins. P...

Auto business In the SUV business, it has over 160k bookings, with XUV700 leading the way with ~70k bookings. Semiconductor shortage led to a loss of 32k units in 2QFY22. While the availability of semiconductors is improving, the situation is dynamic, with visibility only till Dec’21. In the Auto business, it is targeting to be numero uno in the core SUV segment (which is currently 70% of the UV market) by focusing on the authentic SUV portfolio and four core brands (and maybe a new brand for EVs). It plans to launch 13 new SUVs by FY27, including eight new electric SUVs. It is targeting 20% of FY27 volumes from EVs. In the LCV business, the management is focusing on consolidating its rank one position in the sub-3.5t LCV segment. It plans to launch 17 new LCVs by FY26, including eight e-LCVs. It also plans to offer CNG options in 12 LCVs. It would launch a new Pick-up range next year as well as a new platform in the sub-2t segment to address its weakness in this segment. I...

Growth outlook It is expecting lower than expected sales in 4QCY21 (v/s earlier estimates) due to ongoing semiconductor shortage as the LMV market is expected to grow by only 8%/1% in India/Europe. n   However, it is optimistic about growth in both India and the European region during CY22 and CY23, subject to semiconductor availability. India business n   Bill Forge has secured EV orders (worth ~EUR20m, similar to Metalcastello) for driveline products. Margin in EVs would be similar to ICE products. However, complexity and accuracy would be higher than those of ICE products. n   All divisions grew during 3QCY21, despite the semiconductor shortage. However, there is uncertainty in 4QCY21 due to the chip shortage. n   Exports momentum is being impacted by high logistics cost and is expected to grow at a slower pace. European business n   The European business has delivered good performance, despite COVID-1...

Outlook: Festive season sales declined in the early double digits, impacted by delayed monsoons/harvesting. However, it is hopeful of making a recovery in the upcoming wedding season on the back of multiple positive indicators – such as good monsoons, an improving consumer confidence index, the reopening of the Hospitality sector, and the recent cut in fuel prices. RM cost inflation and price hike: The LEAP-2 savings program led to savings of 320bp YoY, largely on account of saving on RM as well as some other variables.rec Net RM costs were higher by 110bp QoQ, and this needs to be covered. It took price hikes of INR1,200 in Jul’21 and INR1,000–1,200 in Sep’21 (total of INR3,000 since Apr’21). Premiumization: The Premium segment has done well, with its share growing to 6%+ over Oct–Nov'21, driven by new products. It is on track to cross 10% by Mar’22. Exports: It has a much higher target than the current run-rate of 300k units/p.a. It has tied up with a distributor in M...

New order wins at INR2.4b (v/s INR531m in 1QFY22) from Hyundai, TTMT, CNH, HMCL, M&M. Further, there are RFQs worth INR19.95b (v/s INR16.6b in 1QFY22). It is focusing on aluminum casting machined components for non-auto for gen-set and has already got an order for INR1.1b, which would start from Mar- 22. 2W ABS supplies have started from Sep-21, but supplies are restricted due to semiconductor shortage. It plans to achieve a run-rate of 400k units p.a by Jul- Aug'22 as the supply of semi-conductor improves. The market is 3.5m p.a, with Bosch having 85% market share. It has started supplies of brakes for Motorcycles over 200cc from Sep'21. Clutch supplies are expected to start from Jan'22 EV supplies: It started supplies of suspension, die-casting, and brakes assemblies to e-2Ws/3Ws. It has got an order for brake system order from Ather (INR500m to start with from 1QFY23). It is actively engaged at an advanced stage with all EV players (incl. start-ups). Alum...

ROYAL ENFIELD Demand: It continues to have a strong order book, with a healthy inquiry and booking rate for Meteor and the new Classic. There is no cannibalization within Meteor and the new Classic as the consumer profiles are completely different. Realization increase: Around two-third of the increase was due to price hikes and the balance was due to a better product mix – higher exports and better model mix (higher share of high value variants). Semiconductor shortage: The situation has improved since the end of Sep’21 and is expected to improve in 2HFY22. Export: 2QFY22 witnessed a strong momentum in exports. In the international market, it added nine exclusive stores (149 outlets in total) and three new multi- brand outlets (over 650 stores). It expects exports to warmer countries to increase when North America and European countries face their winter season. Apr’21/May’21/Jun’21 are peak season for exports. Domestic network expansion: In 2QFY22, it added 14 new studio ...

Demand: Demand has picked up since the markets have opened up post the second lockdown. Replacement demand in the PCR/2W segments is witnessing traction although demand in the Farm/CV segments remains subdued. CV OEM demand is picking up, while demand in the PV segment has slowed down due to chip shortages. Outlook for 2HFY22: The replacement segment is expected to grow in the low single-digit on the high base of 2HFY21. TBR growth: CV replacement demand is under stress. TBB demand is muted owing to the higher base of last year while TBR grew 25% YoY on a low base. Meanwhile, CV OEM demand is improving. Volume growth: Overall volumes grew 23% QoQ/9% YoY. Volumes for OEM/replacement/exports grew 35%/23%/10% QoQ (17%/-3%/50% YoY). Exports: Container availability and cost still remain a key concern. Market share: CEAT’s market share in TBR /PV stands at 8-9%/15% (v/s 5% /11% a few years ago). RM cost inflation: The company’s RM basket cost increased by 6.5% QoQ due to inflatio...

Outlook: Demand remains strong across markets. In exports, chip shortage could have an impact 3QFY22. In India, CVs are expected to growth on sequential basis (4Q>3Q>2Q). EV strategy: Investments in CLWT, strategic stake in EV start up and R&D in EV components has enables BHFC to offer solutions ranging from components to sub systems and systems (in power and control electronics) across the 2W to CVs. Light-weighting components (forged or casted) are ramping up quite aggressively. Aluminum forging business in EU/US will ramp-up from current revenues of USD70m to USD250m in next few years based on its order and capacity in hand. Electronics: It offers EV components in power & control electronics for 48V to 800V range. Revenues should start from FY23 and ramp-up by FY24. Overseas subsidiaries registered revenues of INR16.6b and EBITDA margin of 11.3% in 1HCY21 despite chip shortage, supported by focus on cost optimization and product mix improvement. For CY22, a...

HCVs (higher tonnage range) such as tippers are expected to see a further pickup in volumes on the back of infrastructural activities and mining. Fleet utilization has improved to 75–80%. With the resumption of activity – such as work from the office, interstate transport, and the opening up of schools and colleges – bus demand, which currently stands at 25% of normal demand, would pick up. LCV demand would come from the need to fulfill last-mile connectivity. Replacement demand : Recovery is expected on a) the huge transition in technology (from BS3 in Mar’17 to BS6), b) corporates’ increasing focus on environmental sustainability, c) improving confidence among fleet operators, and d) the implementation of the scrappage policy from FY24. The average age of the fleet at 9.5 years in FY21 was at the highest level (v/s 8.7 years in FY19). M&HCV market share eroded further by ~4.6pp QoQ (-710bp YoY) to 22.4% due to a) a further shift from M&HCVs to ICVs by 15pp, b) I...

India operations India demand: Strong demand momentum is seen across key segments/channels, and demand from T&B OEMs also seems promising. TBB is growing faster than TBR due to lower costs; however, TBR should also pick up with growth in OEMs. RM cost inflation: It stood at 5% QoQ in 2QFY22; smaller inflation is expected in 3QFY22. Pricing action: It took a price increase of 3–7% in 2QFY22 (3–4% in 1QFY22) and another 3–5% over Oct–Nov’21. It would need another 3–5% price hike to offset the cost inflation to date. The Vredestein brand was launched in India and would help the company make inroads in high-margin premium segments. Capacity utilization stood at ~80% for 1HFY22, with TBR at 74% (PCR at 97%). Exports: It achieved the highest quarterly exports ever in 2QFY22 (up by 70% YoY; includes exports to the EU). Europe Demand: The healthy demand momentum would continue with an increase in premiumization. Volumes grew 4% during the quarter at capacity utilization of 86%....

OEM volumes remained muted in 2QFY22, while Replacement volumes showed reasonable growth (11%/20% YoY for 4W/2W). Exports declined by 8-9% YoY due to logistical challenges. Volumes in the Industrial segment grew 11% YoY, with a broad-based growth. ASP growth stood at 7-8% on a YoY basis, driven by price increases to pass on the cost inflation in key raw materials. It undertook a cumulative price hike of ~6% over Jul-Sep’21 in the Replacement market. Lead cost was up by 20-22% YoY and 9% QoQ. Spot rates are almost 6.5% higher than its 2QFY22 average. It has started supplying lithium battery packs to 3W OEMs. It has also started supplying chargers to BPCL and is developing an onboard charger for 2W/3W applications. The contribution of the new energy business stood at INR200m in 2QFY22. It is increasing its 4W capacity to 16m by mid-FY23. FY22 CAPEX is pegged at INR5-5.5b (1H: ~INR3b) for 4W capacity expansion and a 50MW solar plant. AMRJ is yet to finalize its lithium battery...

GOCL ( Gulf Oil Corporation ) Gulf Oil Corporation (GOCL) is engaged in manufacturing industrial explosives, mining products, lubricants, specialty oils and chemicals, active pharma ingredients (bulk drugs), and pharma formulations. About Gulf of India The Chemical Hub of Hinduja Group was created with Gulf Oil India Limited merging with IDL Industries Limited from 1st January 2002. The merger has enabled the Company to leverage the large marketing networks of lubricants and industrial explosives businesses and achieve a turnover for the financial year 2008-09 of Rs.1000 crore (US$200 million). Exports accounted for 5% of the turnover. IDL Industries Limited was renamed GULF OIL Corporation Limited with the merger of Gulf Oil India’s business. A property Development Division was started in the Company in 2006. With effect from 1st April 2008, the business of specialty chemicals Division has been transferred to a 100% subsidiary – IDL Speciality Chemicals Limite...

What is 5 G Technology? 5G is the latest wireless technology that supports speeds up to 1 Gbps and latency up to 1 milli-second. It is used for supporting high-speed broadband Internet and applications that demand high speeds/low latencies such as video streaming, gaming, mixed-reality, and autonomous cars. 5G supports both voice calls and data transfers. Important Advantages High resolution and bi-directional large bandwidth shaping. Technology to gather all networks on one platform. More effective and efficient. Technology to facilitate subscriber supervision tools for quick action. Most likely, will provide huge broadcasting data (in Gigabit), which will support more than 60,000 connections. Easily manageable with the previous generations. Technological sound to support heterogeneous services (including private network). Possible to provide uniform, uninterrupted, and consistent connectivity across the world. Disadvantages of 5G Technology Technology is still...