In past 3 months Sensex has corrected a lot from its All Time High of 63583.07 on 01/12/2022 resulting due to many Large Cap and Mid Cap which are currently trading near their 52 weeks Low. Many investors consider this as a panic situation and try to sell out their holdings even by booking losses.
With an intention of reducing the panic situation, a small fundamental analysis for 3 Large cap companies i.e. Indus Towers, Wipro and Hero Motor Corp were given in previous article available in our newspapers, newsletters and even on our website and application. Now this week we will cover 3 more large cap companies which are near to their 52 Week low is given below:
- Tata Power (CMP: 195 ,52 Week H/L :260/182, M. Cap: 62,532.79 Cr., Industry/ Sector: Integrated Power Utilities)
As per Company’s Net Sales was Rs 14,129.12 crore in December 2022 up 29.47%, Quarterly Net Profit at Rs. 945.02 crore in December 2022 up 121.93% and its EBITDA stands at Rs. 2,607.61 crore in December 2022 up 49.92% compared to December 2021. Company’s EPS has also increased to Rs. 2.95 in Decemeber 2022 compared to same period in FY21. The company has an installed generation capacity of 13061 MW (as of September 2021) out of which 3948 MW is from clean and green sources (Hydro waste heat recovery wind and solar) in India. The company is leading the race in EV charging infrastructure setup across India, it has already installed 150 green energy-powered EV stations across residential societies, malls, commercial complex and petrol pumps in Mumbai. It has also collaborated with the National Real Estate Development Council (NAREDCO), Maharashtra to install up to 5,000 EV charging points across Maharashtra and also collaborated with the Indian Army for installing 17 fast charging points for EVs at Delhi Cantt. 8.Tata Power EZ Charge charging points are now present across 25+ states and 5 UTs i.e., approx. 60% of the national highways. It has also achieved a rare landmark of setting up 450+ EZ Charging points across 350 + national highways in the country. Considering the growth of EV sector in past 2 years and further growth estimations by industry leaders, ‘BUY’ ratings from all leading brokerage houses and good financial performance of the company, investors who want to make fresh entries can enter at these levels and one who are already invested can stay invested the stock for long term period and enjoy hefty returns in future
- Affle India (CMP: 903 ,52 Week H/L: 1,369 / 871, M. Cap: 12,027Cr., Industry/ Sector: IT - Software)
Affle India is a Singapore based technology company which entered India in 2006 and has a proprietary consumer intelligence platform that delivers consumer acquisitions, engagements, and transactions through relevant mobile advertising. 95% of its business is through Mobile apps advertisement which is projected to increase at a 12% growth rate YoY till 2027. Company uses AI technology to make advertising revenue generation much more effective by using data-driven targeting & retargeting algorithms Behavior, Transaction & Attribution Data based Decisioning - Structured Data Sets driving Prediction & Recommendation algorithms, End-to-End Platform to Grow Marketing, ROI - Enhance Marketing ROI and drive Consumer Acquisitions, Engagements & Transactions. Company has posted good financial results so as far and as per December 2022 Quarterly results, company’s Net Sales was Rs 376.06 crore in December 2022 up 10.8%, Quarterly Net Profit at Rs. 68.98 crore in December 2022 up 11.13% and its EBITDA was Rs. 96.81 crore in December 2022 up 17.89% and its EPS also increased to Rs. 5.19 in December 2022 from Rs. 4.70 in December 2021. In past 3 years Promoter holding has decreased to -8.49% and ROCE has decreased to 28% in 2022. It has a 50-50 revenue split between India and International markets due to which the stock is beaten away badly like many other IT companies. Considering the growth of AI across all sectors, 45.89% return generated by the company over past 3 years and BUY ratings from all brokerage houses, if you have already invested in this stock then you may need to hold it for very long-term period and only risk-taking investors can make fresh entry in this stock at this price, while others may avoid due to selling pressure in IT stocks.
- FSN E- ventures / Nykaa (CMP: 120.60,52 Week H/L: 312.67/ 120.60, M. Cap: 34,400Cr., Industry/ Sector: E-Retail/ E-Commerce)
Nykaa is the largest specialty beauty and personal care platform in India in terms of value of products sold in FY21 and one of the fastest growing fashion platforms in India based on growth in GMV. It has the highest average order value (AOV) among leading online beauty and personal care platforms in India. The company works on inventory led model under Nykaa - Beauty and Personal care which contributes 90% of the revenue generated by the company and rest is generated by the company under its Fashion and Apparel business. Considering the acquisitions made by the company, its wholly owned subsidiary ‘Nykaa Fashion Private Limited’ acquired the brand ‘KICA’ for a consideration of up to Rs. 45.1 million, 18.5% stake in Earth Rhythm Private Limited and 60% stake in Nudge Wellness Private Limited. Company has well established footprints in both online and offline manner with cumulative downloads of 72.5 million. 89% of online GMV came through mobile apps as of March 2022 and total of 105 physical stores across 49 cities in India over three different store formats namely - Nykaa Luxe, Nykaa On Trend and Nykaa Kiosks. On the contrary the stock has Stock Price fell 60.2% and underperformed its sector by 44.7% in the past year. Its P/B ratio is 25.6 and PE ratio is 1,353.8 and noth are higher than its sector PE ratio of 44.9 and PB ratio respectively as per the industry standards and its BVPS has also gone down to 28.4 in FY22 from 325.9 in FY21. As per December 2022 Quarterly results, company’s Net Sales was Rs 1,462.83 crore in December 2022 up 33.18%, Quarterly Net Profit at Rs. 8.19 crore in December 2022 down 70.67% and its EBITDA was Rs. 83.80 crore in December 2022 up 11.9% and its EPS also decreased to Rs. 0.03 in December 2022 from Rs. 0.60 in December 2021. Its YoY ROE and ROCE both have gone down to 3.06% and 5.58% respectively in FY22 indicating nothing is going good within the company based on its financial performance. Considering poor financial results and below standard valuations, investors may avoid fresh entries in this stock and if you are already holding it then as soon as then unfortunately you will have to wait for very long term for good exit price.
Situation might be panicking for every investor reading this article or our Newspaper and Newsletters but we at Smart Investment will always try to help you in overcoming such situations and Enrich your Investment Journey. Now, 3 more companies will be covered in next week’s article. So, stay connected for further updates.
Het Zaveri
info@smartinvestment.in
(Disclosures: At the time of writing this article, author, his clients & dependent family members may have positions in the stocks mentioned above. The author, his firm, his clients or any of his dependent family members may make purchases or sale of the securities mentioned in website. Author may have positions in above stocks so have vested interest obviously in their going up or down as the case may be.
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