In a chat with Anil Singhvi, Varinder Bansal decodes THESE four companies’ Q4 results

In a conversation with Zee Business Managing Editor Anil Singhvi, Founder of Omkara Captial Varinder Bansal decodes the companies’ quarterly results that were released on Thursday. 

According to Bansal, Nilkamal and GSPL have done exceptionally well in their quarter four earnings, while Quess Corp failed to impress and Kovai Medical remained flat. 

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Bansal points out that the home-building stocks in the fourth quarter have done quite well. The analyst is happy with the Nilkamal results, especially its volume growth that surged by 24 per cent on the back of strong sales, which was reported 21 per cent growth year-on-year.  

However, the company’s gross margin fell to 41 per cent from 45 per cent amid rise in the raw material prices, said Bansal, adding further that the valuations of the company looks good, as it has strong balance-sheet, healthy cash flow and it's almost a debt-free company. 

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The stock may or may not consolidate or correct as, the shares of Nilkamal had a run-up couple of days before its quarterly results were scheduled.  

Similarly, Bansal dissects the GSPL’s quarterly results terming it as very good on a standalone basis. He mentions, it is the cheapest stock in PSU (Public Sector Unit), and like a steady rock. 

GSPL’s standalone EBITDA margins grew by 74 per cent as compared to 71 per cent YoY basis, said the analyst adding further the company has run-rate of between Rs 200-250 crore in terms of profit, as for the last few quarters it has been reporting in the same range. 

He added, GSPL annually reports around Rs 800-1000 crore profit and has a market cap of Rs 16000 crores, moreover, the valuations of the company also look good available at 15-16PEx, Bansal said. 

On the other hand, Quess Corp reported bad numbers at every front, as the company was mostly impacted by the second wave of Covid-19, the analyst pointed out.  

He added, the company’s reported EBITDA stood at Rs 40 crores in Q4 as against Rs 150 crore YoY, while its margins fell to 1.3 per cent from 5.5 per cent YoY 

Reporting a neutral result, Kovai medical being flat in quarterly results for many quarters now neither disappoints nor excites, the analyst. He added, the numbers of Kovai is not bad but neither has fireworks as people are expecting,