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Dish TV India Ltd. is a leading direct-to-home (DTH) company, providing DTH services across the segments in the country. It offers a large number of SD and HD channels to cater to the requirements of customers spread all across the country in addition to providing various value-added services. The company’s quarterly consolidated financials reveal that the operating profit for Q1FY23 was ₹328.43 crore as compared to the operating profit of ₹447.13 crore for Q1FY22, which has decreased by 26.55 per cent. Net sales for Q1FY23 were at ₹608.63 crore, recording a decrease of 16.74 per cent as compared to net sales of ₹730.97 crore in the same quarter last year. The net profit has also been on the lower side and stands at ₹17.85 crore since the net loss incurred for the same period last year which was at ₹49.14 crore. The annual performance of net sales reported is ₹2,802.49 crore compared to last year’s value of ₹3,249.36 crore. The operating profit for FY22 stood at ₹1,668.17 crore as compared to ₹2,032.59 crore for FY21, a decrease of 17.93 per cent. The company has delivered net loss of ₹1,867.23 crore for FY22 as compared to the net loss of ₹1,189.86 crore for FY21. The company failed to meet market expectations last year and seems to have made changes in its higher management. Unless the company manages to reduce its sizeable debt and improves its profit margin, we recommend EXIT

Aurionpro Solutions is a publicly traded technology company providing software products and expert level consulting services to an extensive global customer base. Its quarterly consolidated financials reveal that the operating profit for Q1FY23 was ₹33.46 crore as compared to the operating profit of ₹25.40 crore for Q1FY22, which has improved by 31.75 per cent. Net sales for Q1FY23 were at ₹145.52 crore, recording an increase of 25.65 per cent as compared to net sales of ₹115.81 crore in the same quarter last year. The net profit has also improved by 56.66 per cent and stands at ₹24.16 crore since the net loss incurred for the same period last year which was at ₹15.42 crore. The annual performance of net sales reported is ₹505.01 crore compared to last year’s value of ₹374.02 crore. The operating profit for FY22 stood at ₹116.90 crore as compared to ₹86.74 crore for FY21, an increase of 34.77 per cent. The company has delivered net profit of ₹75.58 crore for FY22 as compared to the net loss of ₹192 crore for FY21. It has also managed to reduce its debt while its revenue growth remains subdued. The promoters have pledged 29 per cent of their holdings and the return on equity also is not improving. Despite having a great product portfolio and robust project pipeline, the stock seems to be over-valued compared to its book value. Hence, we recommend AVOID.

I TC was incorporated in August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the company’s ownership progressively turned Indian, the name of the company was changed to India Tobacco Company Limited in 1970 and then to I.T.C Limited in 1974. In recognition of its multi-business portfolio encompassing a wide range of segments, the full stops in the company’s name were removed effective September 18, 2001. The company now stands rechristened ‘ITC Limited’ where ITC is today no longer an acronym or an initialised form. Currently, ITC works in five business sectors: hotels, paperboards, paper and packaging and FMCG cigarettes.

The company’s quarterly consolidated financials reveal that the operating profit for Q1FY23 was ₹6,397.86 crore as compared to the operating profit of ₹4,890.78 crore for Q1FY22, which has improved by 30.81 per cent. Net sales for Q1FY23 were at ₹19,695.12 crore, recording an increase of 38.93 per cent as compared to net sales of ₹14,176.72 crore in the same quarter last year. The net profit has also increased by 33.46 per cent and stands at ₹4,462.25 crore since the net profit reported for the same period last year which was at ₹3,343.44 crore. The annual performance of net sales was at ₹64,618.23 crore in comparison to last year’s value of ₹52,835.15 crore. The operating profit for FY22 stood at ₹22,494.76 crore as compared to ₹19,635.26 crore for FY21, an increase of 14.56 per cent.

The company has delivered net profit of ₹15,485.65 crore for FY22 as compared to the net loss of ₹13,389.80 crore for FY21. It is planning to become an asset-light hotel business in order to reduce the burden on margins. The company is also expanding its cigarette market share by shifting from an unorganised to the organised market. By extensively expanding the distribution network in FMCG business with 7 million outlets, the company’s direct coverage is expected to improve by 40 per cent YoY. The company is also focussing on exports and exploring its growth options via the merger and acquisition route. Hence, we recommend BUY.

The best online classifieds business in India is Info Edge, which has a variety of brands. It owns a number of companies in several industries, including shiksha.com, 99acres.com, jeevansathi.com, and naukri.com related to the recruitment, property, matrimonial and online education information services. It also acts as an investor, having backed numerous start-ups in the web industry and is actively expanding its portfolio.

The company places continuous emphasis on new product launches and operates on IND-AS revenue, such as Talent Pulse, Enterprise Resdex, etc. The company’s quarterly consolidated financials reveal that the operating profit for Q1FY23 was ₹419.85 crore as compared to the operating profit of ₹152.89 crore for Q1FY22, which has improved by 174.6 per cent. Net sales for Q1FY23 were at ₹547.26 crore, recording an increase of 66.54 per cent as compared to net sales of ₹328.60 crore in the same quarter last year. The net profit has also improved by 40.49 per cent and stands at ₹356.29 crore since the net profit recorded for the same period last year which was at ₹253.60 crore. The annual performance of net sales reported is ₹1,589.03 crore compared to last year’s value of ₹1,128 crore.

The operating profit for FY22 stood at ₹879.60 crore as compared to ₹430.65 crore for FY21, an increase of 104.25 per cent. The company has delivered net profit of ₹10,686.87 crore for FY22 as compared to the net loss of ₹1,629.90 crore for FY21, an incredible rise of 555.68 per cent. Strong hiring in the IT industry drove growth in recruitment during the previous four to five quarters. This quarter it was driven by the non-IT industries such as BFSI, travel, infrastructure and hospitality. With an 80 per cent traffic share, Naukri continues to be a top choice for bulk and fresher hiring, which results in lower prices. Its real estate marketplace saw 35 per cent YoY growth and will remain a key vertical with more expenditure. Despite significant marketing expenditures and discounts, the matchmaking industry has been facing trouble. Hence, we recommend HOLD.

Founded in 1979, Mirza International Limited is India’s leading leather footwear manufacturer, marketer and exporter. Its portfolio of well-known brands includes Bond Street, Oaktrak, MODE and Red Tape. It is also one of the biggest Indian providers of finished leather to foreign markets and a preferred supplier of leather footwear to top worldwide brands. The company owns six manufacturing facilities across the state of Uttar Pradesh which can produce 6.4 million pairs of footwear per annum. The company achieved 77.5 per cent capacity utilisation in FY20. The company’s quarterly consolidated financials reveal that the operating profit for Q1FY23 was ₹78.09 crore as compared to the operating profit of ₹36.68 crore for Q1FY22, which has improved by 112.91 per cent. Net sales for Q4FY22 were at ₹483.82 crore, recording an increase of 92.17 per cent as compared to net sales of ₹251.77 crore in the same quarter last year. The net profit has also been on the higher side and stands at ₹40.99 crore since the net profit incurred for the same period last year which was at ₹11.56 crore, exhibiting a rise of 254.45 per cent. The annual performance of net sales reported is ₹1,678.67 crore compared to last year’s value of ₹1,048.93 crore. The operating profit for FY22 stood at ₹240.76 crore as compared to ₹119.49 crore for FY21, an increase of 101.49 per cent. The company has delivered net profit of ₹112.94 crore for FY22 as compared to the net profit of ₹8.38 crore for FY21, reporting a phenomenal rise of 1,248.26 per cent.

The company has increased its product lines by launching new products under Red Tape brands, including travel bags, undergarments etc. and has also increased its product mix in garment and shoes segments. Red Tape athleisure is rapidly finding its place in the feet of young and sporty Indians. The company is expected to give good quarter results and has managed to reduce its liabilities. Hence, we recommend HOLD.

Affle India is a technology company with a proprietary consumer intelligence platform that delivers consumer acquisitions, engagements and transactions through relevant mobile advertising. It’s a Singapore-based company founded in 2005 and it entered India in 2006. The company works on the model of Paas (platform as a service). It is a global technology business and has two business segments i.e. consumer platform and enterprise platform. Its quarterly consolidated financials reveal that the operating profit for Q1FY23 was ₹76.15 crore as compared to the operating profit of ₹47.74 crore for Q1FY22, which has improved by 59.49 per cent. Net sales for Q1FY23 were at ₹347.48 crore, recording an increase of 127.9 per cent as compared to net sales of ₹152.47 crores in the same quarter last year. The net profit has also been on the higher side and stands at ₹54.99 crore since the net loss incurred for the same period last year which was at ₹35.89 crore, an improvement of 53.2 per cent. The annual performance of net sales reported was at ₹1,081.66 crore as compared to last year’s value of ₹516.78 crore, a leap of 109.31 per cent. The operating profit for FY22 stood at ₹284.80 crore as compared to ₹210.93 crore for FY21, an increase of 66.36 per cent. The company has delivered net profit of ₹215.18 crore for FY22 as compared to the net profit of ₹135.04 crore for FY21. In light of the strong demand and expanding mobile phone use, the management has projected growth of 25–30 per cent CAGR over the next five years. Additionally, it anticipates strong traction in EFGH categories that are anticipated to provide the company with the greatest amount of income. Further, it intends to expand its reach into South Korea, North America and Europe. As a result, the business will be able to increase volume growth going forward and add more devices. Hence, we recommend HOLD.

Gensol Engineering Ltd is engaged in the business of solar consulting and EPC. The company's services include solar advisory, solar EPC, solar O&M & solar monitoring and analysis. It also provides dedicated consultancy services for EHV (extra high voltage) transmission lines. The company has been engaged in around 250 projects in solar advisory, approximately 130 projects in solar EPC, 45 projects in solar O&M and 250 projects in solar monitoring and advisory. The company owns around 49 per cent stake in Solarig Gensol Utilities Pvt Ltd which is engaged in the business of operations and maintenance of solar projects.

The company’s half-yearly consolidated financials reveal that total revenue for H2FY22 grew by a whopping 186 per cent on a YoY basis reaching ₹128.2 crore as compared to ₹44.9 crore recorded in H2FY21. EBITDA for Q1FY23 came in at ₹13.4 crore and improved by 212 per cent in comparison to ₹4.3 crore recorded in H2FY21. Along similar lines, net profit swelled 284 per cent from ₹2.3 crore in H2FY21 to ₹8.8 crore in H2FY22. On the annual consolidated front, revenue for FY22 stood at ₹162.3 crore, up by 151 per cent on a YoY basis from ₹64.6 crore in FY21. EBITDA for FY22 at ₹17.4 crore, up by 158 per cent from ₹6.7 crore in FY21.

Profit after tax was recorded for FY22 at ₹11.1 crore, zooming 248 per cent on a YoY basis from ₹3.2 crore in FY21. Recently, the company announced that it has closed orders from various reputable clients for the development of solar power projects worth over ₹531 crore. Out of the total order book, only two projects are based on the model of Balance of System (BoS), while the balance projects are to be developed through a full turn-key EPC model, a fact that testifies to Gensol’s robust end-to-end project execution capabilities. The company has maintained its leadership position and continues to have a strong order book on the back of a robust demand environment for its products and services. Hence, being optimistic that Gensol Engineering has the potential and intent to translate all its aspirations into reality, we recommend BUY. 

The Cummins Group in India, is one of the most powerful leaders in the country, is a group of complementary business units that design, manufacture, distribute, and service engines and related technologies. Cummins India Limited, part of the Cummins Group in India, is headquartered in Pune since 1962 and is one of the leading manufacturers in India of diesel and natural gas engines for power generation, industrial and automotive segments. The company’s quarterly consolidated financials reveal that net sales for Q1FY23 grew by 41.47 per cent on a YoY basis to ₹1,666.11 crore from ₹1,177.71 crore. Operating profit for Q1FY23 came in at ₹281.59 crore, up by 38.83 per cent in comparison to ₹202.83 crore recorded in Q1FY22. While net profit contracted by 29.35 per cent from ₹235.24 crore in Q1FY22 to ₹166.20 crore in Q1FY23. On the annual consolidated front, net sales for FY22 stood at ₹6,170.92 crore exhibiting a growth of 41.53 per cent relative to ₹4,360.08 crore registered in FY21. Operating profit also recorded robust YoY growth of 32.18 per cent from ₹855.83 crore in FY21 to ₹1,131.25 crore in FY22. Net profit for FY22 came in at ₹842.59 crore, up by a whopping 61.44 per cent versus ₹521.91 crore in FY21. The company's power generation business is expected to continue growing at a fast pace owing to increased spending on infrastructure and healthcare. Data centres and telecom segments are also expected to provide high potential opportunities for power generation businesses. Also, the company is expected to maintain its position in the aftermarket for the infrastructure sector as utilization of equipment is expected to increase on the back of increased government spending, foreign investments, and product change with the implementation of CEV BSIV emission norms. The company has low leverage, a fundamentally strong balance sheet along with a healthy dividend payout ratio. Hence, we recommend BUY. 

(Closing price as of Sept 30, 2022)