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VRL Logistics is engaged in logistics services dealing mainly in domestic transportation of goods. The financial performance of the company depicts that on a standalone basis the operating profit surged heavily beyond 190 per cent in Q1FY23, standing at ₹117.38 crore as compared to the operating profit of ₹39.56 crore in the same quarter of the previous financial year. Net sales and operating income jumped 73.31 per cent to ₹717.11 crore from ₹413.77 crore.

The company reported net profit of ₹49.37 crore as against net loss of `6.04 crore on a YoY basis. On the annual front, net sales were reported at ₹2,393.65 crore for FY22, improving 35.78 per cent as compared to net sales of ₹1,762.92 crore reported for FY21. The operating profit stood at ₹420.98 crore in FY22 as compared to operating profit of `260.35 crore made in FY21. The company has delivered net profit of ₹160.11 crore for FY22, growing massively from the net profit of ₹45.07 crore for FY21. In Q1FY23, the company has recorded a highest-ever revenue rise owing to strategic planning, addition of new branches and capital expansion plans. With the increase in user demands and requirements along with focus on an aspiration-led lifestyle, the transport and logistics sector is likely to be set for a strong investment opportunity. Hence, we recommend HOLD.




Dixon Technologies (India) Limited is engaged in manufacturing products in the consumer durables, lighting and mobile phone or smart phone markets in India. The company’s quarterly consolidated financials recorded an operating profit for Q2FY23 of ₹145.72 crore as compared to the operating profit of ₹110.96 crore for Q2FY22. Net sales for Q2FY23 stood at ₹3,866.77 crore as compared to the net sales of ₹2,803.78 recorded in Q2FY22. The company recorded a net profit of ₹77.70 crore in Q2FY23 in comparison with `62.64 crore recorded in Q2FY22, an improvement of 24.04 per cent. In terms of annual performance, in FY22 the net sales have grown 65.89 per cent to ₹10,697.08 crore as compared to ₹6,448.17 crore reported in FY21. The operating profit advanced 32.88 per cent to ₹382.92 crore as compared to an operating profit of ₹288.17 crore posted for FY22. Net profit for FY22 was recorded at ₹190.39 crore, posting substantial growth from ₹159.8 crore recorded in FY21. New segments such as electronics, IT products, telecom products and LED lights and AC components are likely to augur well for future revenue growth for the company. The outlook for domestic mobile production is positive in terms of expected growth in the coming years and the company will be one of the main beneficiaries. Hence, we recommend HOLD.




Bharat Heavy Electricals Ltd. is an integrated power plant equipment manufacturer engaged in design, engineering, manufacture, erection, testing, commissioning and servicing of a wide range of products and services for the core sectors of the economy, viz. power, transmission, industry, transportation, renewable energy, oil and gas and defence. The company’s quarterly consolidated financials show an operating loss for Q1FY23 amounting to ₹99.65 crore as compared to the operating loss of ₹410.12 crore for Q1FY22.

Net sales for Q1FY23 were at ₹4,672 crore, recording an increase of 61.03 per cent as compared to net sales of ₹2,901.32 crore in the same quarter last year. The net loss has lowered from ₹456.38 crore and stands at ₹201.37 crore in Q1FY23. The annual net sales and operating income for FY22 reported was ₹21,211.09 crore compared to last year’s value of ₹17,308.69 crore, a rise of 22.55 per cent. The operating profit for FY22 stood at ₹1,090.12 crore against an operating loss of ₹ –2,792.87 crore for FY21. The company delivered a net profit of ₹394.29 crore for FY22 as opposed to a net loss of ₹–2,743.84 crore for FY21. Recently, the company has signed a Memorandum of Understanding (MoU) with six companies for cooperation in the defence and aerospace sector to boost the country’s campaign for self-reliance. 

Additionally, aiming at gainfully utilising the country’s vast reserves of coal and lignite, the company has entered into strategic MoU with Coal India Limited and NLC India Limited for setting up coal gasification-based plants. Significantly, this will be a breakthrough step towards meeting the National Coal Gasification Mission target of 100 million MT. Compared with peers, the company trades at a decently lower PE ratio. The execution on power orders is expected to gather pace over the coming quarters due to the ongoing energy crisis. Its efforts to improve cash flow and reduce receivables should help build sustainable growth in profitability. Hence, we recommend HOLD.




Shoppers Stop Ltd. is a leading premier retailer of fashion and beauty products established in 1991. It owns and operates various department stores, home concept stores and specialty beauty stores across the country.

According to the Q2FY23 results announced on a latest basis, net sales and other operating income has gone up 57.73 per cent in Q2FY23 on a YoY basis. Operating income has zoomed 20.91 per cent in September 2022 as compared to ₹139.88 crore recorded in Q2FY21. The quarter was successful in recording a net profit of ₹16.2 crore as opposite to a net loss of ₹3.58 crore seen in Q2FY21. The company’s revenue was underpinned by rebounding demand for clothes though spending more on fresh stock before the start of the festive season weighed on profit. 

On an annual basis, in FY22 the net sales and operating income stood at ₹2,518.75 crore, 44.01 per cent higher than ₹1,748.96 crore in FY21. Operating profit advanced by 62.83 per cent from ₹268.39 crore in FY21 to ₹437.02 crore in FY22. The company continued to report net loss but this reduced from ₹267.16 crore to ₹45.42 crore on a YoY basis. The company continues to be debt-free with net cash of ₹13 crore. It saw a growth in customer visits, standing at ₹40.8 million in Q2FY23 versus 25.3 million recorded in 25.3 million. Also, the average transaction value grew from ₹3,760 to ₹4,069. In its focus to invest for growth, the company is working towards adding 12 department stores and 15 beauty stores during FY23. In terms of the total capex, the company spent ₹47 crore on new stores and renovation, ₹9 crore on technology and ₹12 crore on others, adding up to ₹68 crore in Q2FY23. Robust recovery in revenue owing to improved pricing, expansion within the beauty and private label segment and healthy store additions are expected to drive business growth going forward. Further, consumer sentiment is now getting better with worries about the pandemic receding into the background and spending on personal goods on the rise. Overall, this will add to increasing consumerism. Hence, we recommend HOLD.




ITC is the largest cigarette manufacturer and seller in the country. It operates in five business segments at present — FMCG cigarettes, FMCG others, hotels, paperboards, paper and packaging and agriculture products.

The company’s quarterly consolidated financials show that the net sales and other operating profit for Q2FY23 stood at ₹18,608 crore as compared to the net sales and other operating profit of ₹14,844.38 crore for Q2FY22, rising 25.35 per cent. Operating profit for Q2FY23 was at ₹6,713.78 crore, recording an increase of 22.37 per cent as compared to an operating profit of ₹86.37 crore in the same quarter last year. The net profit also soared cheerfully, standing at ₹802.01 crore since the same period which was at ₹318.80 crore, a 150 per cent rise from Q2FY22. ITC is trading at a lower PE ratio compared to the peer average and its fair value.

The annual performance of net sales and operating income was at ₹65,204.96 crore for FY22, which improved by 22.67 per cent from last year’s value of ₹53,155.12 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 showed a 15.65 per cent increase in the net profit, recording at ₹15,485.65 crore for FY22 as compared to net profit of ₹13,389.80 crore for FY21. The company showed robust growth across all the segments. 

Cigarette revenue improved 3 per cent on a YoY basis where the volume growth seen was approximately 20 per cent. The FMCG segment witnessed volume-led growth across discretionary and OOH, staples and convenience foods whereas health and hygiene portrayed an impactful performance due to a strong base as it saw a rapid growth in e-commerce, quick commerce, MT and institutional channels. Considering the recovery in the cigarette business and predicted advancement in agriculture, hotels and paperboard segments in the near term, we recommend BUY. 




Gujarat Fluorochemicals Limited, earlier known as Inox Fluorochemicals Limited, is one of the leading producers of fluoropolymers, fluoro-specialties, chemicals and refrigerants in India. They are also used in sectors like wire and cable, automotive, agrochemicals, pharmaceutical intermediates, textiles, solvent pharmaceuticals, air-conditioners, etc. The company’s quarterly consolidated financial results reveal that the operating profit for Q2FY23 was ₹560.04 crore as compared to ₹341.71 crore for Q2FY22, an increase of 63.89 per cent. Net sales for Q2FY23 stood at ₹1,461.34 crore, recording growth of 51.59 per cent as compared to ₹964.01 crore in the same quarter last year. The net profit was recorded at ₹357.23 crore, which was reported to be ₹204.94 crore in Q2FY22, thus improving 74.31 per cent.

On an annual basis, the company reported a positive performance of net sales with ₹3,953.59 crore for FY22, zooming 49.16 per cent from the previous year’s value of 2,650.50 crore. The operating profit reached ₹1,329.04 crore as compared to ₹796.99 crore for FY21, which has increased by 66.76 per cent. The net profit made was ₹775.87 crore for FY22 as compared to net loss of ₹221.51 crore for FY21. The company’s ROCE has jumped to 36.88 per cent in H1FY23 from 24.46 per cent in FY22. Similarly, ROE improved to 29.05 per cent in H1FY22 from 20.10 per cent in FY22. 

GFL is currently investing and has planned capital expansion towards expanding its capacities for chemicals for backward integration, fluoropolymers and new-age products. Fluoropolymer (PTFE) revenues grew 16.9 per cent on a QoQ basis to ₹440 crore on commissioning of TFE 3 plant. Fluoro-speciality revenues rose 75 per cent on a YoY basis but fell 4.2 per cent on a QoQ basis to ₹110 crore. Prices for refrigeration gas and fluoropolymers have not displayed any weakness and are likely to improve EBITDA growth in the coming quarters. Hence, we recommend HOLD.