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The company is on track to its profitable-growth target, working-capital optimisation, de-levered B/S and rising cash flows. Management expects revenue to grow 12-15% (Rs 4000 crorere venue in FY23), driven by network expansion and healthy comparable growth.

With better full-price sales and operating leverage, it expects margins to rise. It will continue to focus on reducing debt and strive to better inventory turns, leading to more cash flows.

(JM Financial)

Gokaldas Exports, in line with near-term demand headwinds, is likely to witness lower revenues/margins during 2H, given high inflationary pressure. Despite near-term headwinds, Gokaldas Exports backed by its strong customer engagement, operational excellence, and superior business infrastructure is likely to fare relatively better than the competition.

The company’s growth capex of Rs 3.7 billion over FY22-24 will ensure strong double-digit growth CAGR in revenues. Increasing scale/ focus on cost optimization will improve margins further.

(JM Financial)

While the stock has run up by nearly 60% in the last 6 months, on the back of steadily improving asset quality and return metrics, we believe sustained delivery on this performance along with a gradual improvement in liability franchise are critical for further rerating of the stock. Given the cyclical benefit of improving microloan collections/growth, we value Ujjivan SFB at 1.8x FY24E BVPS with Mcap of Rs 6,640 crore levels.

(JM Financial)

CPCL has commenced works for setting up of 9 MMTPA grass root refinery projects involving an investment of Rs 31,580 crore at Nagapattinam in Tamil Nadu, through a JV with IOC. The company has received environmental clearance from the Ministry of Environment, Forest and Climate Change. The Tamil Nadu Government has passed an order for the acquisition of 606 acres of land parcel adjoining the existing refinery site.

Procurement and Engineering activities for the project have already commenced and site activities will now gain momentum.

(HDFC Securities)

Zensar has seen margin pressure over the past due to its dependence on lateral hiring for growth amidst rising attrition pressures. The company has now improved its fresher hiring programme, adding more than around 1,000 freshers in H2FY22 and nearly 450 in H1FY23.

The company mentioned margins have bottomed out and are likely to improve hereon, led by levers of improved service mix, optimising employee pyramid, rationalisation of SG&A and hiring costs, and improved utilisation.

(HDFC Securities)

The current order book is around Rs 11,500 crore, providing good revenue visibility for coming years driven by Ganga Expressway sub-contracting EPC job (worth Rs 4,970.9 crore). Recently, it has received a letter from Adani Road Transport regarding the declaration of the appointed date i.e. November 3, 2022, by the authority for the project in Uttar Pradesh.

Margin expectation is at 16% with a diversified project mix and softening in input prices. Management of the company expects the execution of the project to begin with receipt of the appointed date.

(SMC)

Techno Electric Engineering Company is one of the leading power-infrastructure companies engaged in three primary business segments — EPC, renewable power generation and public-private partnership projects in transmission & distribution.
During Q2FY23, the company booked orders worth Rs 400 crore against Rs 500 crore in Q2FY22 and Rs 1,900 crore in Q1FY23. The current order book was at Rs 3,600 crore. For FY23, the management has maintained its order inflow guidance of Rs 3,000 crore across FGD, T&D, smart metering and data centres.

(ICICI Direct)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)