Query Board

Subscribers can ask their queries regarding stocks they hold and get our expert guidance. 

ION EXCHANGE (INDIA) LTD. 

I have been holding shares of Ion Exchange India Limited from ₹ 940. Should I continue to hold or book partially?
- Jayashree Pande

Ion Exchange India pioneered water treatment in India and is today the country’s premier company in water and environment management with a strong international presence. It was the first ion exchange resin manufacturing company in India to have an FDA-approved facility for the manufacture of pharmaceutical grade speciality resins. The company’s quarterly consolidated financials reveal that the operating profit for Q1FY23 was ₹ 47.79 crore as compared to ₹ 43.01 crore for Q1FY22, an increase of 11.11 per cent. Net sales for Q1FY23 were at ₹ 382.40 crore, recording an increase of 21.74 per cent as compared to ₹ 314.12 crore in the same quarter last year. The net profit has improved and stands at ₹ 26.93 crore which was at ₹ 23.06 crore in Q1FY22, up by 16.78 per cent. The annual performance of net sales is ₹ 1,576.87 crore for FY22, which has increased by 8.79 per cent from last year’s value of ₹ 1,449.52 crore. The operating profit for FY22 stood at ₹ 254.90 crore as compared to ₹ 235.39 crore for FY21, which has increased by 8.29 per cent. The net profit was at ₹ 161.27 crore for FY22 as against net profit of ₹ 143.40 crore for FY21, a marginal rise by 12.46 per cent. Even though the company has very low debt, it has delivered poor sales growth of 9.34 per cent over the past five years. Also, the company’s promoter holding has decreased over the last three years by 17.03 per cent. Hence, we recommend to BOOK PARTIAL PROFITS. 

ARIHANT CAPITAL MARKETS LTD. 

I have bought 90 shares of Arihant Capital Markets at ₹ 65. What should I do next? - Praveen Shukla 

Arihant Capital Markets Limited is a leading financial and broking services firm dedicated to growing the net worth of individuals and institutions for almost three decades. The company’s quarterly consolidated financials reveal that the operating profit for Q1FY23 was ₹ 13.14 crore as compared to ₹ 16.22 crore for Q1FY22, a decrease of 18.98 per cent. Net sales for Q1FY23 were at ₹ 34.78 crore, recording a decrease of 6.41 per cent as compared to ₹ 37.16 crore in the same quarter last year. The net profit has reduced and stands at ₹ 7.60 crore for Q1FY23, which was at ₹ 11.56 crore in Q1FY22, a considerable drop by 34.27 per cent. The annual performance of net sales is ₹ 169.69 crore for FY22, which has increased by 46.71 per cent from last year’s value of ₹ 115.66 crore. The operating profit for FY22 stood at ₹ 72.10 crore as compared to ₹ 47.99 crore for FY21, which has increased by 50.24 per cent. The net profit was at ₹ 49.50 crore for FY22 as against net profit ₹ 34.53 crore for FY21, an impressive rise by by 43.37per cent. The company has recently forayed into the Middle East region by proposing its first overseas office in Dubai. The company also plans to launch its mobile trading app, Arihant Plus, soon in a bid to woo the millennials and Gen-Z investors. However the company has failed to reduce its debt. Also, the Q1FY23 results are not working in its favour. Hence, we recommend EXIT. 

ASTRAL LIMITED 

I would like to know your view on Astral Ltd. as I am holding a few shares at ₹ 2,180. — Shrinivas N 

Astral Limited is the plumbing industry’s leading innovator and trend-setter. The company lays emphasis on introducing improved plumbing technology and ongoing innovation in both existing and new products. It is renowned for providing quality without compromise and delivering the best to its customers. The company’s quarterly consolidated financials reveal that the operating profit for Q4FY22 was ₹ 233.20 crore as compared to the operating profit of ₹ 259.60 crore for Q4FY21, which has declined by 10.17 per cent. Net sales for Q4FY22 were at ₹ 1,390.60 crore, recording an increase of 23.3 per cent as compared to net sales of ₹ 1,127.80 crore in the same quarter last year. 

The net profit has also been on the lower side and stands at ₹ 146 crore since the same period which was at ₹ 176.50 crore, a 17.28 per cent decrease from Q4FY21. The annual performance of net sales reported is ₹ 4,394 crore for FY22, which has increased by 38.34 per cent from last year’s value of ₹ 3,176.30 crore. The operating profit for FY22 stood at ₹ 790.20 crore as compared to ₹ 669.60 crore for FY21, an increase of 18.01 per cent. The company has delivered net profit of ₹ 492.30 crore for FY22 as compared to net profit of ₹ 415.20 crore for FY21, which is a worthy gain of 18.57 per cent. 

Astral gained market share in the pipe business with a strong franchise, as reflected in its two-year volume CAGR of 6 per cent over FY 2020–2022. Considering the company’s history of successfully scaling up, management guidance of double-digit volume growth in the pipe business and over 15 per cent CAGR in the adhesive business for the next four to five years, the prospects certainly look positive. Adhesives contributed around 21 per cent to Astral’s sales and the segment’s revenue grew 28.8 per cent YoY to ₹ 300 crore, up 17 per cent QoQ. Its plastic pipes posted strong growth with market share gain on improved demand. The pipe segment posted record revenue of ₹ 1,109 crore, up 22 per cent YoY. Hence, we recommend HOLD. 

BANK OF MAHARASHTRA 

Should I buy Bank of Maharashtra at ₹ 17? - Laxmi Sutar

Bank of Maharashtra offers banking services to individual and institutions. Treasury, corporate and wholesale banking, retail banking and other banking operations are among the bank’s segments. The bank’s primary goal is to encourage banks and other financial institutions to cooperate jointly in putting up bankable plans for boosting the local economy. On the quarterly front, the net interest earned by the bank in the last quarter of FY22 came in at ₹ 3,457.48 crore as against ₹ 3,103.69 crore in the corresponding quarter of the previous fiscal, an increase of 11.4 per cent. The total income in Q4FY22 was ₹ 3,774.66 crore, a decline of 0.42 per cent from ₹ 3,790.60 crore in Q4FY21. 

The profit after tax rose by 117.52 per cent to reach ₹ 452.20 crore in Q2FY22 from ₹ 207.89 crore in Q4FY21. For Q4FY22 the GNPA percentage was 0.37 per cent as compared to 0.64 per cent in Q4FY21. Net interest earned by the bank in FY22 came in at ₹ 13,019.31 crore, an increase of 9.7 per cent from ₹ 11,868.63 crore in FY21. The total income earned by the bank in FY22 was ₹ 15,672.17 crore, an increase of 8.1 per cent from ₹ 14,497.56 crore earned in the previous fiscal. Profit after tax in FY22 increased 108.85 per cent to reach ₹ 1,151.64 crore as against ₹ 551.41 in FY21. 

The company reported GNPA ratio of 0.39 per cent for FY21 which is a fall of 45.5 per cent for FY21. In FY22, the CRAR ratio climbed to 16.85 per cent whereas in FY21 it was 12.76 per cent. Over the past five years, the bank has produced solid profit growth of 23.30 per cent CAGR. It is anticipated that the government’s stimulus programmes, reforms and liquidity measures will bolster demand and industrial activity. The bank’s net worth stood at ₹ 10,175.85 crore in FY22 as against ₹ 8,019.20 crore in FY21. The EPS stood at 1.72 per cent in FY22 as compared to 0.88 per cent in the last financial year. Hence, we recommend BUY.