 "Salaam to the super achievers of this year")
It is that time of the year when one needs to say one's salaam to the super achievers of this year, for whom there is always a little more respect than usual, considering their performances were achieved against a backdrop of a struggling gross domestic product (GDP).
Astra Microwave Products
The RF and microwave sub-system manufacturing company reported a profit after tax (PAT) of Rs 13.8 crore in the first half of FY14; the PAT in the corresponding period this year was Rs 42.5 crore even as the equity remained unchanged at Rs 16.4 crore. What I like about this AMP is that much of its profit accretion translated into unencumbered cash (high operating leverage?); interest cover stood at a healthy 18x in the first half of 2014-15. Some company.
Whirlpool of India
You'd never believe that India was passing through a slowdown and that consumers were dithering about making purchases if you went by the performance of this company. What was an Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 95 crore in the first half of FY14 became an Ebitda of Rs 182 crore in the first half of FY15. Other income of Rs 17.7 crore dwarfed its interest outflow of Rs 42 lakh (just!). The company appears to be run on negative working capital. Must meet its CFO on my next visit to Delhi!
Ramkrishna Forgings
Just the kind of company that one switches off from during a slowdown. But wait, the numbers showcase an interesting story. What was a Rs 13 crore Ebitda in the second quarter of FY14 turned to Rs 35 crore in the second quarter of FY15, the fourth successive quarter of a profit increase. What was a Rs 3-crore net profit in the first half of FY14 is Rs 22.4 crore in the first half of FY15. The company once depended largely on Tata Motors; it appears to have reinvented its destiny since. Could this be the next Bharat Forge?
Srikalahasthi Pipes (formerly Lanco Industries)
This once-sick company is now a star. Plug into a curious detail: Sales in the first half of FY15 were lower than in the first half of FY14 by about Rs 9 crore; Ebitda was nearly Rs 25 crore higher! There is something else I like: Interest outflow a quarter has declined from a peak of Rs 17.4 crore in the third quarter of FY14 to Rs 10.8 crore in the second quarter of FY15; the last quarter's Ebitda of Rs 38.44 crore almost matched the equity capital. Excellent water infrastructure play under a credible management (Electrosteel).
Shreyas Shipping and Logistics
The coastal shipping company reported an Ebitda of Rs 16.59 crore in the first quarter of FY15 followed by Rs 28.7 crore in the second. Interest outflow was a mere Rs 2.6 crore. Equity Rs 22 crore. Remember the company actually reported a net loss in FY14!
As in all disclaimers, I shrug the responsibility of the consequences of people buying into any of these stocks based on the prose of this column!
Astra Microwave Products
The RF and microwave sub-system manufacturing company reported a profit after tax (PAT) of Rs 13.8 crore in the first half of FY14; the PAT in the corresponding period this year was Rs 42.5 crore even as the equity remained unchanged at Rs 16.4 crore. What I like about this AMP is that much of its profit accretion translated into unencumbered cash (high operating leverage?); interest cover stood at a healthy 18x in the first half of 2014-15. Some company.
Whirlpool of India
You'd never believe that India was passing through a slowdown and that consumers were dithering about making purchases if you went by the performance of this company. What was an Ebitda (earnings before interest, taxes, depreciation, and amortisation) of Rs 95 crore in the first half of FY14 became an Ebitda of Rs 182 crore in the first half of FY15. Other income of Rs 17.7 crore dwarfed its interest outflow of Rs 42 lakh (just!). The company appears to be run on negative working capital. Must meet its CFO on my next visit to Delhi!
Ramkrishna Forgings
Just the kind of company that one switches off from during a slowdown. But wait, the numbers showcase an interesting story. What was a Rs 13 crore Ebitda in the second quarter of FY14 turned to Rs 35 crore in the second quarter of FY15, the fourth successive quarter of a profit increase. What was a Rs 3-crore net profit in the first half of FY14 is Rs 22.4 crore in the first half of FY15. The company once depended largely on Tata Motors; it appears to have reinvented its destiny since. Could this be the next Bharat Forge?
Srikalahasthi Pipes (formerly Lanco Industries)
This once-sick company is now a star. Plug into a curious detail: Sales in the first half of FY15 were lower than in the first half of FY14 by about Rs 9 crore; Ebitda was nearly Rs 25 crore higher! There is something else I like: Interest outflow a quarter has declined from a peak of Rs 17.4 crore in the third quarter of FY14 to Rs 10.8 crore in the second quarter of FY15; the last quarter's Ebitda of Rs 38.44 crore almost matched the equity capital. Excellent water infrastructure play under a credible management (Electrosteel).
Shreyas Shipping and Logistics
The coastal shipping company reported an Ebitda of Rs 16.59 crore in the first quarter of FY15 followed by Rs 28.7 crore in the second. Interest outflow was a mere Rs 2.6 crore. Equity Rs 22 crore. Remember the company actually reported a net loss in FY14!
As in all disclaimers, I shrug the responsibility of the consequences of people buying into any of these stocks based on the prose of this column!
The author is a stock market writer, tracking corporate earnings and investor psychology to gauge where markets are not headed