Unite
Buy at CMP - 664, Targets - 750- 880, Time Frame - 3 months to 9 months, SL-615
TRIGGERS:
1) United Sprits has accuired 26% stake in HipBar which is an e-commerce application to boost it sales
The company has subscribed to 4,567,568 equity shares of Hip Bar at Rs 59.11 per equity share, United Spirits Ltd
Hip Bar, which serves the needs of beverage alcohol industry and its consumers through the HipBar Mobile Wallet and delivery app, had a turnover of Rs 8,108 in the financial year ended March 31, 2017. Its net worth was at Rs 3,81,45,431, the filing added. HipBar's platform should provide growth opportunities for its on-line, ecommerce route to market.
2) The company's Q4FY18 net profit was at Rs 211 crore against loss of Rs 104 crore in a year ago period, Bumper Q1FY18 is expected
Revenue from operation rose 6.4 percent at Rs 6900.4 crore on strong growth in the Prestige and above segment as well as the benefit from lapping the impact of demonetization and the highway ban were partially offset by the one - off impact of the operating model changes.The operating profit or EBITDA was at Rs 274 crore and margin was at 12.6 percent.Underlying net sales growth during the quarter was 9 percent largely driven by a strong performance of our prestige and above segment whose underlying net sales were up 14 percent.
United Spirits Ltd is the Second largest spirits company in the world by volume and is a subsidiary of Diageo plc The company is engaged in the business of manufacture, purchase and sale of beverage alcohol (spirits and wines), including through tie-up units/ brand franchises. They operate in two geographic segments: India and outside India. The India segment is engaged in the business of manufacture, purchase and sale of beverage alcohol (spirits and wines), including through tie-up units/ brand franchisees within India. The Outside India segment is engaged in the business of manufacture, purchase and sale of beverage alcohol (spirits and wines), including through tie-up units/brand franchisees outside India. The companys products include whisky, brandy and rum. Their brands include Dalmore, Jura, Whyte and Mackay, Black Dog, Signature, Romanov, Antiquity, Royal Challenge, White Mischief, Bouvet Ladubay and Four Seasons.
UNSP has a portfolio of ~140 brands. Its ‘Prestige and Above’ segment represented 47% of total volumes and 64% of total net sales, while rest was contributed by the ‘Popular’ segment (as of December 2017). The company’s current strategy is focused towards the premium segment brands supported further by Diageo brands. Further, UNSP has developed sales and manufacturing arrangements across each state, which provides it with significant competitive advantage. Additionally, UNSP is looking to franchisee an additional 1-2 states over the next few months and plans to monetise Rs2,000cr of non-core assets over the next 3-4 years.
| Category | No. of shares | Percentage |
|---|---|---|
| Promoters | 5,372,083 | 3.70 |
| Foreign Promoters | 79,612,346 | 54.78 |
| Foreign Institutions | 33,845,902 | 23.29 |
| General Public | 11,408,143 | 7.85 |
| Others | 8,845,380 | 6.09 |
| NBFC and Mutual Funds | 5,957,063 | 4.10 |
| Financial Institutions | 279,305 | 0.19 |
| Central Government | 7,521 | 0.01 |
Indian Bank - INVESTMENT MANTRA
Buy at CMP - 343, Targets - 365- 380, Time Frame - 9 months to 18 months, SL-312
Indian Bank, incorporated in the year 1907, is a banking company (having a market cap of Rs 16572.46 Crore). Indian Bank key Products/Revenue Segments include Interest & Discount on Advances & Bills which contributed Rs 11857.14 Crore to Sales Value (69.28 % of Total Sales), Income From Investment which contributed Rs 5113.15 Crore to Sales Value (29.87 % of Total Sales), Interest On Balances with RBI and Other Inter-Bank Funds which contributed Rs 121.65 Crore to Sales Value (0.71 % of Total Sales) and Interest which contributed Rs 21.71 Crore to Sales Value (0.12 % of Total Sales)for the year ending 31-Mar-2018.
The Bank has reported a Gross Non Performing Assets (Gross NPAs) of Rs 11990.14 Crore (7.37 % of total assets) and Net Non Performing Assets (Net NPAs) of Rs 5959.57 Crore (3.81% of total assets).
For the quarter ended 31-03-2018, the company has reported a Standalone Interest Income of Rs 3097.48 Crore, up 2.25 % from last quarter Interest Income of Rs 3029.46 Crore and up 12.29 % from last year same quarter Interest Income of Rs 2758.57 Crore. The bank has reported net profit after tax of Rs 131.98 Crore in latest quarter.
Warm Regards,
Kalpna
Kalpna