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

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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

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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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