The estimates of Kotak Institutional Equity, ICICI securities and antique stock broking have been taken into consideration.
What he recommended here:
Pat
– Kotak Equality hopes that due to loss of Rs 52 crore in the year ago, the standalone net loss will increase by Rs 309 crore to Rs 52 crore, citing the ongoing loss in weak VSF performance and paints divisions.
– Antique stock broking pegs did net losses for Rs 178 crore.
-Cici Securities has estimated a net loss of Rs 254 crore, inspired by the costs related to margin pressure and expansion. Brokerage stated that bottom-line pressure is likely to remain, mainly due to continuous losses in new businesses and operating benefits in the core vertical. Kotak highlighted a drag from the VSF segment, while ICICI indicates expenses related to B2B and paints as margin eraroders.
Income
– Kotak Equity: Rs. 9,195 crore ( +33% yoy, +3% QOQ)
– Antique Stock Broking: Rs. 9,111 crore ( +32.2% yoy, +2.1% Qoq)
– ICICI Securities: Rs 8,965 crore ( +30% yoy, +0.4% QOQ)
Revenue growth is expected to remain strong throughout the board, which is supported by solid traction in the chemical section and healthy top-line growth in the building material division. Kotak highlighted the growth of 0.5% QOQ in chemical versions, while ICICI paints and B2B contributes Rs 2,200 crore to the e-commerce segment, although gradually flattened.
Ebitda
Earnings before the increase of interest, taxes, depreciation and refinement (Ebitda) remain weak on YOY basis due to low profitability in VSF and frequent startup costs in new enterprises. However, sequential improvements are visible in estimates. The credit for Kotak QoQ benefits is for adaptation and an increase in modest demand in chemicals.
-Cotak Equity: Rs 245 crore (-24.7% yoy, +11% QOQ)
-Neterated Stock Broking: Rs 270 crore (-17% yoy, +22.4% QOQ)
-ICICI Securities: Rs 255 crore (-21.6% Yo, +15.5% Cook)
“We guess that 2.6 BN (-35% YOY, -10.4% QOQ) (1) VSF Ebitda at low prices including 2.4 BN standalone ebitda, (2) Chemicals ebitda of 3.1 bn ( +4.3% yoy, +0.6% Qoq) and in low costs with (3% yoy, +0.6% (2) Qoq) Vikas, “Kotak said in a preview note.
Ebitda margin
– Kotak Equity: 2.7%, Down 206 BPS Yo, Up 19 BPS Cook
– ICICI Securities: 2.8%, below 187 BPS Yoy, 37 BPS Qoq
“For Grassim Industries, Ebitda margin is likely to incite 40bps Qoq (although on a YOY basis, it can still be a drop of 190bps, which is due to the estimated loss for new businesses and the estimated loss for the B2B e-commerce segment) a preview note.
Major monitor
The major monitor has paints and B2B e-commerce, VSF pricing trend and volume recovery, demand speed in chemicals and exhibits for EBITDA contribution from new vertical and margin outlook.
(Disclaimer: recommendations, suggestions, ideas and opinions given by experts are their own. They do not represent the ideas of economic time)