Equity MF Performance Summary by HDFC Securities

Prior to FY20, company was engaged in contract manufacturing of Rifamycin S for Lupin. During FY20, management decided to change business model from contract manufacturing to manufacturing and sales model; as a result the company’s operating profitability has significantly improved. Company had reported robust numbers over FY20-22

In Tax Free Bonds, to avail (or retain) the 25bps additional in the coupon rate, Investors should be aware that the total investment in the aggregate face value of Bonds held by the Bondholders in all the Series of Bonds, allotted under the relevant Tranche Issue shall be clubbed and taken together and that should be up to Rs. 10 Lakhs

The chemical industry’s growth is not hostage to any one economic parameter or any one end-user industry. Rising domestic demand and the need to evolve have forced domestic chemical companies to expand their capacities to remain competitive. Our positive stance on the sector is backed by its strong growth, aided by diversity in terms of chemistries and/or technologies

A strong recovery in the out-of-home consumption, rising traction for branded products, aggressive store expansion plans, value proposition through an innovated menu and widening delivery reach will help DIL’s revenues clock a CAGR of 36% over FY22-24E (~23% increase due to store count)

To Sum it up, Lower stock Futures’ Open Interest (compared to all time highs), Lower Open Interest in the Nifty Futures’ as compared to last 17 year average OI of 2.08 Cr shares despite Nifty near all time highs, FIIS long to short ratio in the Index Futures at 3.28 (Aggressive Long build up by FIIS in the Index Futures segment), aggressive Put writing at 18000 levels and strong recovery in the global markets from the recent lows indicates that downside is limited in the Nifty and one should remain optimistic for the December series also.

AXSB finally seems to be on track to deliver steady performance with lower shocks. While the bank is on track to deliver ~14-15% RoE over the next couple of years, we argue that enhanced productivity and gradual exercising of pricing power in chosen segments could drive sustained medium-term RoEs. We argue for a gradual convergence in valuation multiples with ICICIBC

The company plans to monetise four HAM projects at a ~40% premium to book value of INR 3.5bn invested equity by Mar’23. Given robust order inflow and strong execution, we maintain BUY, with an increased TP of INR 1,013 (14x Sep-24E EPS) to factor in a higher level of execution and better EBITDA margin

AGS Transact Technologies Ltd (AGS) is the second largest ATM outsourcing and cash management player in India, with a 15/30% market share. The company has been able to sustain the impact of COVID-19 (ATM transactions declined by ~30%), supported by its strong and sticky relationship with top Indian banks and upward revision in interchange fees by ~14% by the regulator

Aether Industries Ltd has a technology-oriented business model and it sells innovations in chemistries and technologies. Competencies in eight chemistries and eight technologies has enabled the company to successfully build all three of its business verticals—large-scale manufacturing, contract manufacturing and contract research and manufacturing services (CRAMS)—in less than six years of operation. The company is more than doubling its manufacturing capacity by CY23 end. Augmentation of capacity will not only allow it to fulfil the demand of the existing and potential customers for existing products, but also provide an opportunity to launch new products