Amara Raja batteies | FY 2018-19 Annual result analysis | Best multibagger stock to buy in India

Share market investment needs careful and extensive research of a share, company, market and share. It is not an easy task to synthesize data, analyze all aspect and then select/reject the share. Researchers at earningfolio does the heavy lifting of analyzing many shares to come up next multibagger share. Please checkout top 5 shares for long term investment.
Amara raja battery is one of the companies which has potential to give very good return in long run. We have also published a detailed analysis of Amara Raja Batteries Ltd and a detailed analysis of June 2019 Q1 result. Must watch those.

Here goes the detailed analysis of FY 2018-19 Annual result and other updates from the company/sector.




The FY 2018-18 Annual Result Analysis covers below are:
- Our 2018-19 forecast for revenue/profit.
- What is the actual performance?
- What is the forecast for 2019-20?
- What next for investing?

What we estimated for FY 2018-19?
For Amara Raja batteries, we estimated 10% growth in revenue (INR 68,562 Mn) in year 2018-19. The profit growth estimate was 5% to stand at INR 4,948.86 Mn
Our EPS estimate for FY 2018-19 was 28.96

What is the actual performance?
The company did fairly well with 9% growth in revenue (INR 62,329.80 in FY2018 vs INR 67,931.10 in FY2019). At the same time, its profit increased by 2.6% (INR 4,713.20 in FY2018 vs INR 64,834.90 in FY2019). The profit growth was approximately 50% less than what we expected!
In FY2018-19 the EPS is reported as INR 28.31. The EPS target was missed by 2.24% vs our estimation.

Other sector/company updates
- With demand in auto sector remain weak, the OEM battery business has suffered significantly. The main revenue for Amara Raja batteries earned by residential and replacement batteries.
- Government focus on electric vehicle is likely to work in favor of Amara Raja Batteries in long run.
- The

Future Prediction (As per annual result)*
For FY2019-20 the revenue of the company should increase by 7% (INR 72686.28 Mn), while profit should grow by 3% (INR 4858.25 Mn).
Our estimated EPS is INR 28.44 for the financial year.

* The estimated numbers may change based on 2019-20 quarterly results. Please refer quarterly result analysis for updates.

Detailed analysis of Amara Raja Batteries Ltd:

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment adviser before investing. Please read the detailed disclaimer below.

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Shree Cement Ltd | FY 2019 Annual Result Analysis | Mulitbagger Stocks India | Investing for beginners

Stock market investing is a research intensive work. Some investor simply search online about "top 10 multibagger shares" or "multibagger stock India" and invest. This can be dangerous and investor might loose money. We have discussed about it in detail in "should you invest in share market"?

The stock analyst at earningfolio do extensive research on sector and stocks before we roll-out detailed analysis on companies. Please checkout 5 shares to invest now for details.

Here is Annual result analysis of an another company, Shree Cement Limited which has a great potential to grow and multiply your money in stocks.

The annual result analysis covers below area:

- Our 2018-19 estimates for revenue/profit.

- What was the actual performance?

- Other updates around the company/sector.

- What next for existing/new investors?

- What is the forecast for 2019-20?

About the company

BSE: 500387

NSE: SHREECEM

ISIN: INE070A01015

SECTOR: Cement (Major)

Shree Cement is primarily an Indian cement manufacturer. It was founded in Beawar in the Ajmer district of Rajasthan in the year 1979 and now headquartered in Kolkata, is one of the biggest cement makers in the Northern India. It also produces and sells power under the name Shree Power and Shree Mega Power.

What we estimated for FY 2018-19

We estimated that in FY 2018-19, the company will post 15% growth in revenue (1,16,834.25 Mn) . Although the profit will increase, it might post a de-growth in profit due to overall slowdown in the housing sector. We estimated that the fall in profit could be around -20% (11,073.44 Mn)

Our EPS estimate was around 317.864.

What is the actual result?

The company posted 23.58% growth in revenue (INR 1,01,595.00 Mn FY108 vs 1,25,546.50 Mn in FY2019) and -26.67% fall in profit (INR 13,841.80 Mn in FY2018 vs INR 10,150.50 Mn in FY2019).

The fall in profit was more than expected, while EPS stand to 288.88. EPS target was missed by 9.12% from our estimate.

The net profit was impacted due to :

- After government ban on PETCO as fuel; which was a cheaper fuel; the company has to look for alternative expensive fuel on urgent basis.

-Loss of 178.13 crore booked in respect of investment in preference shares of IL&FS group. IL&FS group’s rating was downgraded by agencies to junk status.

-Mark-to-Market loss of 134.23 crores on External Commercial Borrowing (ECB) taken by the Company.

Other Sector/market updates.

- Government focus has shifted towards rapid infrastructure project, which will help boost in the company's business.

- Indian cement industry witnessed a remarkable growth of approx. 13% during 2018-19 on the back of 6.3% recorded in 2017-18.

- The company has acquired a foreign company - Union Cement Company and also another company Raipur Handling and Infrastructure Private Limited. These acquisitions will help in expanding it's business.

Our Future Prediction (As per annual result)*

We are expecting 10% growth in revenue (1,38,101.15 Mn) for FY 2019-20 and 5% growth in Net Profit (10,658.025 Mn) for FY 2019-20.

Our estimated EPS for FY 2019-20 stand to INR 303.324.

The estimated numbers may change based on 2019-20 quarterly results. Please refer quarterly result analysis for updates.

What's next for investors?

Shree cement is fundamentally strong company and it is managing its business very well. The risk factor associated with energy and water crisis remains a challenge and we need to see how company is coping up.

With demand of cement increasing, the company should have good business opportunities. At current price, it seems a bit over-priced. At any correction, investors should plan to enter for very long term growth.

Detailed analysis of Shree Cement Ltd Share:

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment adviser before investing. Please read the detailed disclaimer below.

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Why India stock market is falling after 2019 Budget | Stock market for beginners | Share market today

Why Indian stock market is falling after union budget 2019

Still wondering on why Indian stock market crashed after union budget 2019?

Most of the people expected that the share market would go in rally mode after BJP won general elections 2019 with thumping victory. But this did not happen. So where investors should invest? Here are 5  must buy shares in falling market!!

One of the core cause was the Union Budget 2019, which seems to incline towards stringent practice which will make our economy strong in long run. However, for short term, the budget seems taking toll on corporate sector and in general pushing the economy toward a slow sprint.

Here is a detailed analysis on why the budget failed to make share market happier!!

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Havells India Limited | FY 2019 Annual Result Analysis | Stock market investment for beginners

BSE: 517374
NSE: HAVELLS
ISIN: INE176B01034
SECTOR: Electric Equipment

Must check out a detailed analysis of Havells India Ltd.

Here is the detailed 2018-19 Annual Result analysis of Havells India Ltd. You can read more below:

About the company

Havells India Limited is an FMEG (Fast Moving Electrical Goods) Company. It is basically a holding company. The Company is involved in manufacturing Switch-gears, Cable, Lighting and Fixtures, and Electric Consumer Durable. It has a simple strategy to acquire and grow, which is the key to its success.
It is ranked 11th ‘Most Respected Company’ out of the top 100 companies in India- Business World.

Our 2018-19 estimates for revenue/profit

During the earlier analysis of Havells India, we had estimated that the revenue of the company may grow by 15% to reach 94,993.11 Mn; while revenue will grow by 10% to reach 7,837.72 Mn.

The estimates were given purely on the past performance of the company and based on overall sector growth prediction.

We estimated that the EPS will be 317.864.

2018-19 Estimated Revenue: 94,993.11 Mn (15%)

2018-19 Estimated Net Profit: 7,837.72 Mn (10%)
Estimated EPS: 12.5

What is the actual performance?

Below is the actual performance of the company:

	2018	2019	% Growth
Revenue (mn)	82,602.70	100,576.20	21.76%
Net Profit (mn)	7,125.20	7,915.20	11.09%

We can see that the actual growth in both revenue and profit was more than expected.
The actual EPS stands 12.6, which is 0.8% more than our estimate.

Forecast/estimates for 2019-20

For 2019-20, below are our estimates.
2019-20 Expected Revenue: 115,662.63 Mn (15% growth)

2019-20 Expected Net Profit: 8,706.72 Mn (10% growth)

2019-20 Estimated EPS: 13.93

* The estimated numbers may change based on 2019-20
quarterly results. Please refer quarterly result for updates.

Other company/sector updates

- Govt's focus on 100% electrification of rural areas will create demand for this sector. With more electricity in villages, people is more likely to buy electric wires, switches and appliances.

- Recent product lines like Water Purifiers, Personal Grooming, small appliances and water heaters is capturing market share. This is a new segment for Havells India and if it becomes successful in capturing market share in electrical appliances, it would add to both top-line and bottom-line growth of the business.

- Lloyd business is successfully and fully integrated. The key success of any acquisition depends on the brand management and maintain a healthy integration. It seems Havells india has successfully done that with its Lloyd acquisition.

- Internet penetration is creating brand awareness around Havell’s quality. With internet even people at remote locations and villages are getting to know about brand names and this is bound to create benefit for Havells India.

- Management is working on increasing reach to 3000 towns (currently 1000) in 2019-20. Management focus on tier 2 and 3 cities and rural area will strengthen the revenue stream and hence profit.

- Company plans to increase spend on research activities to 2% of total revenue (currently 0.79%). This is a very important decision. Any company investing in research is most likely to produce proprietary products and hence a moat for its business.

What next for the investors?

This share is very good for long term investments. If you are looking for 1 or 2 years, please do not invest in a volatile market. The current slowdown in economy is affecting business of most of the sectors, so only invest if you can hold it for around 4-5 years.
All those investors who has invested around the price suggested in my detailed video, given below , can continue to hold and accumulate more on dips.

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PPAP Automotive Ltd | Auto Ancillaries Sector | 2019 Multibagger shares to invest in Indian Stock Market

Looking for a long term small cap value pick in Auto ancillary sector? PPAP India is one of the small company in this sector which is performing very well. Another good company in Auto ancillary sector analyzed by us is Wabco India Ltd, check it out. Looking for more value companies, please see top 5 Indian shares to invest now!!

Here is a detailed analysis of Wabco India Ltd. You can read more below:

About the company

BSE: 532934

NSE: PPAP
ISIN: INE095I01015
SECTOR: Auto Ancillaries

PPAP Automotive Limited manufactures automotive sealing systems, and interior and exterior automotive parts in India. The Company offers polymer extrusion-based automotive sealing system and injection-molded products.  It has injection molding machines, ranging from 60 tons to 2500 tons. The Company's manufacturing facilities are located in Noida (Uttar Pradesh), Greater Noida (Uttar Pradesh), Chennai (Tamil Nadu) and Pathredi (Rajasthan).

Major products

The Company's automotive sealing system product range includes outer belt molding (black type/bright type), inner belt molding, windshield molding, roof molding, quarter window molding, air spoiler, a-pillar garnish, b-pillar garnish, bodyside protector, skirt air damper and slide rail system. The Company also manufactures interior and exterior Injection molded products, such as door trims, interior pillars, rear parcel shelf, trunk linings, and fender Inner.

Client Engagements

PPAP was started with the production of Maruti and Maruti Suzuki India Limited remains its major client. Other clients are Hyundai Motors India Limited, Ford India Limited, Tata Motors Limited, Mahindra and Mahindra Limited, Honda Cars India Limited, Renault Nissan, and many more.

Positive indicators

• The company's automotive products were used in 72% of total passenger vehicles (PV) produced at 8.87 lacs in India in Q3FY18-19.
• Maruti Suzuki accounts for 49% of its sales.
• Honda accounts for 28% of the company's topline growth.
• 98% of sales from Passenger Vehicle.

Opportunities

• With the growth of the Indian middle class, the passenger vehicle market is bound to show boom. 
• Growth in the auto industry will increase demand for sealing products.
• No matter what kind of changes comes to core Auto technologies, the sealant product will be in demand.

Risk

• Its business is tied with Maruti-Suzuki business as Maruti Suzuki is the largest client of the company. The company should diversify its business.
• It is a very small company and it is important to keep a watch on the management decision on how they expand the business.

The expected range of price

Share bought around INR 220-230 in Q3 2018-2019 should be around INR 450-550 in next 18-24 months.

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment advisor before investing. Please read the detailed disclaimer below.

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Havells India Ltd | Electric Equipment Sector | 2019 Multibagger shares to invest in Indian Stock Market

BSE: 517374
NSE: HAVELLS
ISIN: INE176B01034
SECTOR: Electric Equipment

Here is a detailed analysis of Havells India Ltd. You can read more below:

About the company

Havells India Limited is an FMEG (Fast Moving Electrical Goods ) Company and is basically a holding company. The Company is engaged in manufacturing Switchgears, Cable, Lighting and Fixtures, and Electric Consumer Durables. It has a simple strategy to acquire and grow, which is the key to its success.
It is ranked 11th ‘Most Respected Company’ out of the top 100 companies in India- Business World.

Major products

• Consumer: Havells products for consumer ranges from lighting, switches, electrical circuitry and wiring to home & kitchen appliances, fans, air coolers, and water heaters.
• Industrial: Havell offers a range of industrial electrical solutions from circuit protection and surge protection devices, reactive power solutions, HT & LT cables, induction motors, to professional lighting and heavy-duty fans etc.
• Additional Products under brand LLoyd: Havells India acquired Lloyd brand in 2017 and now has additional products in its portfolio such as Air Conditioner, Washing Machine, LED Television, Chest Freezer.

Positive indicators

• The company has consistently performed in the last 15 years with 29% CAGR growth in revenue and 32% CAGR growth in profit. It is a very good indication.
• The recent acquisition of Lloyd is an indication that the company is looking to expand its business in high-growth consumer electrical appliances.

Opportunities

• With the growth of the Indian middle class and government's focus on 100% electrification of Indian villages, the electric parts and equipment market is bound to grow at a fast pace. 
• Only 3% of Indian household is actively using high-end consumer appliances. With the growth in the Indian middle-class income, more Air Conditioner and home appliances will be used by Indian households.
• Government is focusing on "housing for all" scheme and promoting more real estate activities. This will create demand for electrical switches, wires etc.

Risk

• The economic slowdown and risk related to the real estate market can have an indirect impact on sales.
• Due to non-brand awareness, price competition, and high input cost; penetration to B-Class cities and the rural area remains a challenge for all big brands.

The expected range of price

Share bought around INR 500-550 should be around INR 800-900 in the next 18-24 months.

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment advisor before investing. Please read the detailed disclaimer below.

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WABCO India Ltd | Auto Ancillaries Sector | 2019 Multibagger shares to invest in Indian Stock Market

India is one of the fastest growing economy in the World. This growth cannot happen without core sectors growing. If you are interested, here are top 5 companies which one must invest for long term growth. One of these companies is Wabco India Ltd. This is a gem potential multibagger stock, which should be one of the top Indian stock to buy.

Here is a detailed analysis of Wabco India Ltd. You can read more below:

About the company

BSE: 533023 

NSE: WABCOINDIA 

ISIN: INE342J01019 

SECTOR: AUTO ANCILLARIES

WABCO India is a subsidiary of WABCO Holdings Inc, USA, a leading global supplier of technologies and services that improve the safety, efficiency, and connectivity of commercial vehicles. WABCO Holdings Inc. through WABCO Asia Private Limited, Singapore holds 75% stake in WABCO India (as per the shareholding pattern as on 30 September 2018).

WABCO India operates five manufacturing facilities across India, an advanced technology development center, a vehicle testing facility and a nation-wide aftermarket distribution and services network. Headquartered in Chennai. It is a debt-free company.

Major products

1) Advanced braking systems
2) Conventional braking products and related air assisted technologies and systems. 

Client Engagements

Recently WABCO India has signed an agreement with Escort to support the development of the new automated agricultural tractor concept in India. Apart from that WABCO has signed a multi-year agreement with Mahindra & Mahindra to supply vacuum pumps in 2016. It's customers also includes Ashok Leyland, Tata Motors, Vehicle Factory (Jabalpur), Bharat Earthmovers, Tafe, Volvo, Sutlej, Caterpillar, Eicher Motors, Swaraj Mazda, Force Motors, and Tata Cummins (Engines).

Recent positive indicators

• Recently WABCO India has signed an agreement with Escort to support the development of the new automated agricultural tractor concept in India. 
• Multi-year agreement with Mahindra & Mahindra to supply vacuum pumps in 2016. 
• Prestigious supplier awards :
•   "Best Supply Chain Transformation" award from Cummins India, 
•   "Outstanding contribution to Technology Innovation" award from Volvo Eicher, 
•   "Cost reduction" award from Swaraj Mazda Isuzu. 

Opportunities

• The International Monetary Fund (IMF) is projecting GDP growth to reach 7.8% in 2018-19.
• The Company has also expanded into new segments like off-highway, defense, luxury bus, car and trailers
• Preparing a roadmap for newer technologies like ADAS, Door System, Smart Suspension.
• During 2017-18, the company has expanded its plant at Jamshedpur to support the volume growth. 
• Distributors are continuing to increase their presence in B & C towns and that is resulting in the availability of genuine parts in remote locations

Risk

• Cyclic in nature.
• Increase in raw material price. E.g. Steel, Aluminum

The expected range of price

Share bought around INR 5300-5800 in Q3 2018-2019 should be around INR 8500 to 9000 in the next 18-24 months.

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment advisor before investing. Please read the detailed disclaimer below.

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Amara Raja Batteries Ltd | Battery Sector | 2019 Multibagger shares to invest in Indian Stock Market

How to find a fundamentally strong share? This is the holy grail every investor try to find out. It is not easy to find good quality stocks in India market. It needs deep sector analysis as well as overall share market analysis. We found 5 stocks to invest during election time. One of them is Amara Raja Batteries, for which Annual Result Analysis and Q1 result analysis is also published.

Here is a detailed analysis of Amara Raja Batteries Ltd, a must-watch for all. You can read more below:

About the company

BSE: 50008
NSE: AMARAJABAT
ISIN: INE885A01032
SECTOR: Commercial and Residential Batteries

Amara Raja Batteries Limited (ARBL) is a flagship company of the Amara Raja Group. Galla family holds 28% equity while another 24% is held by a private holding company. Earlier Johnson Controls Inc, USA was one of the major stockholder, which is the technology leader and is one of the largest manufacturers of lead-acid batteries for both industrial and automotive applications in the Indian storage battery industry.

Major products

• Industrial batteries
• Automotive batteries

Client Engagements

ARBL has prestigious original equipment manufacturers like Maruti Suzuki India Limited, Hyundai Motors India Limited, Ford India Limited, Tata Motors Limited, Mahindra and Mahindra Limited, Honda Cars India Limited, Renault Nissan, Honda Motorcycles & Scooters India Private Ltd, Royal Enfield, Bajaj Auto Ltd, and many more as its clients. The Company's Industrial and Automotive batteries are exported to 32 countries across the globe.

Positive indicators

• It has a 24% market share in OEM (Original Equipment Manufacturer) business.
• The company enjoys a 30% market share in the replacement market.

Opportunities

• Introduction of electric vehicles in India is going to create a boom for the overall battery sector.
• Growth in the auto industry will increase demand for automotive batteries.
• Growth in the industrial segment with more industries setting up in India under the Indian government flagship Make-in-India project.
• Growth in renewable energy source like Solar energy needs storage batteries.

Risk

• Very research incentive sector. Constant improvements are required to remain in the market.
• With Lithium ION Batteries:
• It needs 8 hours charging.
• 30% of energy is wasted in charging and discharging.

The expected range of price

Share bought around INR 600-700 in Q3 2018-2019 should be around INR 950-1050 in next 18-24 months.

Disclaimer: This is not an advice or recommendation to buy the stock. The illustration is for educational purpose only. Please check with your investment adviser before investing. Please read the detailed disclaimer below.

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