ICICI Pru Pipe PMS

Question 1

Chalet Hotels

Answer 1

CMP : 582
Market Cap : 11953 Cr
ROCE : 9.22%
ROE : 9.69%

PE : 52.1
Book Value : 82.3

Stocks Price Growth(1,3,5,10) : 58%,61%

Profit Growth(1,3,5,10) : 802%,16%,55%

In the business of hospitality( hotels), commercial, Retail operations and real estate
Properties : JW Mariott, Westin, Novotel, Duke Resort( Lonavala)

Triggers
Demand expansion

Question 2

VRL Logistics

Answer 2

CMP : 683
Market Cap : 5,975 Cr
ROCE : 17.9%
ROE : 39.7%

PE : 36.5
Book Value : 110

Stocks Price Growth(1,3,5,10) : 13%,64%,19%,

Profit Growth(1,3,5,10) : -16%,51%,28%,22%

About the company
Leading player of Road logistics. Fleet of 6000 trucks.
Other business includes Bus operation, transportation through air

Triggers
Business can book truck in parts and hence better pricing
Tie up with petrol pumps, Garages.
Beneficiary of formalization
28.4% CAGR Profit growth of 5 years

Question 3

Sarda Energy & Minerals

Answer 3

CMP : 210
Market Cap : 7396 Cr
ROCE : 19.3%
ROE : 18.7%

PE : 13.3
Book Value : 104

Stocks Price Growth(1,3,5,10) : 156%,96%,48%,35%

Profit Growth(1,3,5,10) : -24%,67%,24%,15%

About the company
Company is engaged in the production of steel, ferro alloys and power.

Triggers
23.8% CAGR Profit growth of 5 years
Co has captive mines and can produce raw material at lower price.
Owns power plant in Chattisgarh run by NTPC

Question 4

Great Eastern Shipping

Answer 4

CMP : 780
Market Cap : 11,131 Cr
ROCE : 20.9%
ROE : 26.8%

PE : 4.39
Book Value : 781

Stocks Price Growth(1,3,5,10) : 42%,52%,21%,11%

Profit Growth(1,3,5,10) : 69%,205%,134%,20%

Major player in Oil Shipping & Oil drilling services Ltd
134% CAGR Profit growth of 5 years
Stock is trading at 1.15 times its book value
After ESG implementation Ship speed was brought down by 40%.
Co has fleet of smaller ships. Demand went up and freight has gone up.
Net profit went up from 90 ccr to 25000 cr. Debt went down from 4000 cr to

Question 5

Sansera Engineering Limited

Answer 5

CMP : 851
Market Cap : 4504 Cr
ROCE : 14.7%
ROE : 13.5%

PE : 28.4
Book Value : 223

Stocks Price Growth(1,3,5,10) : 16%

Profit Growth(1,3,5,10) : 8%,22%,8%

About the company
Sansera Engineering Ltd is an engineering-led manufacturer of complex and critical precision engineered components across automotive and non - automotive sec
The company manufactures and supplies a wide range of precision forged and machined components for the automotive sector and for non - automotive sector it manufactures and supplies a wide range of precision components for aerospace, off-road, agriculture, and other segments

Triggers
Sansera Engineering expects 20% revenue growth in FY24 from its domestic ICE 2W component space, driven by newly launched models. The company also anticipates a recovery in the 2W EV market and aims to achieve 40% revenue growth in exports

The company is investing a part of its margin in new-generation products in the non-auto domain too, on an experimental basis, other than having invested in the radar technology business to tap ADAS system-led revenue going forward

ICICI Direct TP : 1133
10 Year Revenue Growth : 16%, PAT Growth : 20%
CAPEX FY 24 : 300 Cr, CAPEX FY 23 : 244 Crs