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AGI Greenpac is a Small-Cap company primarily engaged in providing packaging services to various consumer brands, including pharmaceuticals, food, non-alcoholic and alcoholic beverages, cosmetics and perfumery. The company reported a massive jump of 103 per cent QoQ in net profit to `108.79 crore for Q4FY23 as against ₹53 crore in Q3FY23. Revenue growth spiralled 57 per cent YoY to ₹680.32 crore from ₹431.83 crore in March 2022. Interestingly, the EBITDA is recorded at ₹195.51 crore in March 2023, a strong triple-digit growth of 110 per cent from ₹92.82 crore in March 2022. The sales and profitability improved on a YoY and QoQ basis thanks to an increase in demand for non-alcoholic and alcoholic beverages and packaged food segment. Meanwhile, the company’s Chairman and Managing Director Sandip Somany commented that the rise in demand for glass packaging containers from both the non-alcoholic and alcoholic beverage segments and their integrated business model and premium products helped them in delivering sustainable growth for the year. The stock has currently rallied more than 30 per cent in the past five trading sessions itself. Therefore, a lot of positivity around the future of the company has already been factored in the current price, which makes it a risky zone to enter. Our recommendation is to AVOID.

KPIT Technologies is a global technology company with software solutions that will help mobility leapfrog towards autonomous, clean, smart and connected future. With thousands of automobelievers across the globe and specialising in embedded software, AI and digital solutions, On a consolidated basis, the company reported a rise of 38.75 per cent in its net profit at ₹111.07 crore for Q4FY23 as compared to the same quarter last year. During the quarter, revenues stood at ₹1,017.37 crore, a rise of 56.09 per cent as compared to the previous quarter last year. The PBIDT excluding other income of the company increased by 50.17 per cent to ₹182.30 crore for Q4FY23 as compared to ₹121.40 crore for the same quarter the previous year. The company is currently trading at a PE of 63.2 times against the industry PE of 32.2 times. In FY23 the company delivered an ROE and ROCE of 25.9 per cent and 30.6 per cent, respectively. The company is a constituent of Group A stocks and commands a market capitalisation of ₹24,206 crore. It has a debt-to-equity ratio of 0.17 times. KPIT Technologies has ROA of 13.6 per cent which is a good sign for its future performance. The compounded profit growth of the company for three years is 36 per cent, which shows it is leading to better products in the long term. Hence, we recommend HOLD. 

DCB Bank is a new-generation private sector bank. It is a scheduled commercial bank regulated by the Reserve Bank of India. It is professionally managed and governed. DCB Bank has contemporary technology and infrastructure including state-of-the-art internet banking for personal as well as business banking customers. On a standalone basis, the company reported a rise of 25.36 per cent in its net profit at ₹142.21 crore for Q4FY23 as compared to the same quarter last year. During the quarter, revenues stood at ₹1,179.28 crore, a rise of 28.19 per cent as compared to the previous quarter last year. The total interest income of the company increased 28.53 per cent to ₹6,933.30 crore for FY23 as compared to ₹5,394.50 crore for the previous year.

For FY23, bank deposits growth remained strong at 19 per cent YOY while credit growth also witnessed strong growth at 18 per cent. NII grew by 28 per cent YoY while PAT grew by 25 per cent YoY. The cost to income ratio (CI) declined to 60 per cent versus 64 per cent QoQ sequentially. The management has targeted cost to income ratio to reach 55 per cent or below in the near term and the cost to average assets to reach 2.4 per cent. Branch expansion is expected to slow down and guided for an addition of 25-30 addition in the near future.

The bank is currently trading at a PE of 7.46 times as against the industry PE of 12.3 times. In FY23 the bank delivered an ROE and ROCE of 11.5 per cent and 7.26 per cent, respectively. It is a constituent of Group A stocks and commands a market capitalisation of ₹3,474 crore. The debt-to-equity ratio of the bank is 9.58 times. The management is working on increasing frontline capacity and market opportunity which will lead to robust business growth, especially in mortgages, co-lending, construction finance and AIB. According to ratios, the share of this bank is undervalued. The total income growth has been good in the last four quarters and hence we recommend BUY. 

Mold Tek Packaging is a leader in the manufacturing of plastic packaging products including pails. It specialises in both standard and made-to-order packaging solutions for leading brands of paints, lubricants, pharmaceuticals, cosmetics, FMCGs, etc. On a standalone basis, the company reported a rise of 32.79 per cent in its net profit at ₹22.99 crore for Q4FY23, as compared to the same quarter last year. During the quarter, revenues stood at ₹184.71 crore, a rise of 3.81 per cent as compared to the previous quarter last year. The total income of the company increased by 10.85 per cent to ₹178.98 crore for Q4FY23 as compared to ₹161.45 crore for the same quarter the previous year.

For the fiscal year 2022-23, the board of directors has proposed a final dividend of ₹2 per equity share on equity shares with a face value of ₹5 each. At its meeting on April 12, 2023, the directors declared and paid an interim dividend of `4 per equity share with a face value of `5 each. Mold Tek Packaging anticipates strong volume ramp-up in the FF and pharmaceutical sectors as well as high single growth in the paints and lubes area, with total volume increase in the 15-20 per cent range. The company has on the anvil new plants in Lucknow and Daman, as well as capacity extensions in Mysore and Visakhapatnam to suit Asian Paints’ demand.

It has also set up two units to accommodate Grasim Paint’s foray and entry into the pharmaceutical and OTC market. The company is currently trading at a PE of 39.8 times against the industry PE of 28.2 times. In FY23, the company delivered an ROE and ROCE of 16.1 per cent and 19.6 per cent, respectively. The company is a constituent of Group A stocks and commands a market capitalisation of ₹3,202 crore. It has a debt-to-equity ratio of 0.08 times. The future outlook of the company is good and it is consistently generating profit. Although the company is currently having a PE of 39.8 times, it is lower than its sector PE of 63.9 times. Hence, we recommend HOLD.


 

Cigniti Technologies Limited is the world’s leading AI and IP-led digital assurance and digital engineering services company. It has over 4,100 employees who assist multinational corporations in 24 different countries to speed up their digital transformation journey. In Q4FY23 the consolidated revenue from its operations increased more than 23 per cent from last year’s same quarter to ₹424.97 crore. The reported EBITDA level stood at ₹68.37 crore, witnessing a surge of more than 109 per cent from the March 2022 quarter. The net profit of the company zoomed more than 117 per cent from the corresponding quarter last year to ₹49.24 crore.

In its financial report for the fiscal year FY22-23, Cigniti Technologies disclosed impressive numbers, with total revenue amounting to ₹1,647.58 crore, a substantial 32.7 per cent rise from the previous fiscal year. Furthermore, the net profit for the year was ₹168.32 crore, showing a remarkable increase of 83.5 per cent from the previous year. According to the company’s statement, approximately 23 per cent of its total revenues were generated from its top five clients, mainly in the sectors of BFSI, retail and e-commerce, as well as travel and transport. The majority of revenues, about 82.5 per cent, were generated from North America and Canada, while the UK and Europe contributed 8.5 per cent and the rest of the world accounted for 8.9 per cent of the revenue.

As a result, the board has proposed a final dividend of ₹3 per share in addition to a special dividend of ₹2.50 per share to commemorate the company’s 25-year milestone achievement. The stock has witnessed significant buying activity as it has given multibagger returns of more than 180 per cent in just three years. Moreover, the stock has rallied more than 130 per cent over the past one year. The company has good financials and is consistently improving its margin on a quarterly basis. Currently, the company has PE of 14.9 times which is very low compared to the industry PE and thus commands a high chance of giving good returns. Hence, we recommend BUY. 



 

Sona BLW Precision Forgings is an India-based automotive technology company. The company is engaged in designing, manufacturing and supplying engineered automotive systems and components across all vehicle categories. The company has achieved revenue of ₹744 crore, experiencing a 35 per cent year-over-year growth. The company's EBITDA is at ₹201 crore, with a margin of 27.1 per cent and a growth of 49 per cent year-over-year.

Additionally, their PAT is at ₹120 crore with a net profit margin of 16.1 per cent and a growth of 54 per cent year-over-year. Their revenue share from battery electric vehicles (BEV) is at 28 per cent and their BEV revenue has grown by 37 per cent year-over-year. EV programmes have made a significant contribution to the net order book, accounting for 77 per cent of the ₹21,500 crore net order book as of March 31, 2023. The company has achieved its highest quarterly revenue, EBITDA and net profit in Q4FY23, marking a significant milestone. Notably, their BEV revenue has grown by an impressive 37 per cent year-over-year, exceeding ₹200 crore and representing 28 per cent of the overall revenues. The company has closed FY23 with a robust order book, providing confidence in their ability to sustain growth momentum in FY24 and beyond.

Furthermore, the company has made substantial progress on their technology roadmap, developing four new products in FY23. In the last quarter, they have won a new programme from a North American OEM of electric CVs, a major step forward for them in business development and technology. They will supply the final drive differential assembly, intermediate gears and input shafts for electric Class 4 CV, demonstrating their ability to add new and higher-value-added products for their customers. In the last one month the company has shown positive traction as it has gained more than 17 per cent. It is presently trading at a PE of 76.6 times which is higher compared to its industry PE of 24.6 times. Hence, we recommend AVOID.

Apar Industries was founded in 1958 in India. Over 60 years, the company has expanded to over 140 countries as a highly trusted manufacturer and supplier of conductors, a wide range of cables, speciality oils, polymers, and lubricants. The company is gearing up to take on the biggest challenges of the twenty-first century, such as sustainability and fair global business practices. With the government's renewed attention on infrastructure and specific sectors like railways, defence and renewable energy, Apar Industries is poised to reap benefits. In particular, the export-oriented conductors and cables division is expected to experience significant growth due to heightened infrastructure investments in key markets such as Europe and the US. 

Taking into account the company's quarterly performance, on a consolidated basis, it reported strong growth of 76.88 per cent from ₹2,228.83 crore registered in Q3FY22, recording total revenue of ₹3,942.37 crore in Q3FY23. When comparing the net profit for the third quarter of FY23 to the same quarter last year, it skyrocketed 209.13 per cent from ₹54.96 crore to ₹169.90 crore. 

In terms of annual performance, the consolidated net profit of the company surged 59.96 per cent to ₹256.73 crore from ₹160.50 crore the previous year. On the other side, net sales climbed by 45.90 per cent to ₹9,319.99 crore as against ₹6,388.02 crore during the previous year ended on March 2021. 

Shares of Apar Industries experienced a significant rally, more than doubling investors' wealth in the past six months. Over the last year, shares have delivered outstanding returns of more than 350 per cent. Shares were trading on the BSE at a new 52-week high of ₹2,975 at the time of writing. The company's solid profitability position is evident from its impressive RoE and RoCE ratios. In comparison to its competitors and the industry average, it also has a PE ratio that is significantly lower. Therefore, considering the company's potential for growth soon, we recommend BUY. 

IDFC First Bank is a leading private sector bank in India that offers a wide range of financial products and services to its customers. The bank was formed in 2018 through the merger of IDFC Bank and Capital First Limited, a non-banking financial company. The bank caters to the needs of both retail and corporate customers and has a strong presence in both urban and rural areas of India. IDFC First Bank has recently released its Q4FY23 financial report, revealing a remarkable 134 per cent increase in standalone net profit, amounting to ₹803 crore from ₹343 crore in the same period last year. 

The bank's net interest income grew YoY by 35 per cent to ₹3,597 crore, while its core operating profit rose by 61 per cent on YoY basis to ₹1,342 crore. With a diversified customer deposit and loan book, the bank has reported its highest-ever quarterly profit. 

Additionally, IDFC First Bank's gross non-performing assets (NPA) ratio has decreased from 2.96 per cent to 2.51 per cent sequentially, and 3.70 per cent in Q4 FY22. Meanwhile, its net NPA ratio fell to 0.86 per cent from 1.03 per cent QoQ and 1.53 per cent YoY, indicating an improvement in asset quality. The bank experienced strong growth in advances in most segments, as reported. 

Despite the rise in interest rates, disbursements in housing loans remained robust. Additionally, the annual slippage ratio decreased to 2.7 per cent from 4.53 per cent in the same quarter of the previous year. Moreover, the Net Interest Margin (NIM) reached an unprecedented high of 6.4 per cent. This expansion in NIM, combined with treasury gains, exceeded street expectations for profit after tax. The managing director of the bank, V Vaidyanathan, stated that operating leverage has come into effect, with the loan book growing by 24 per cent, while operating profit increased by 67 per cent. Hence, with so many positive indicators, we recommend BUY.