Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
A director at S H Kelkar & Co Ltd sold 2,000,000 shares at 115.660INR and the significance rating of the trade was 69/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years...
Q3FY20 results S H Kelkar reported revenue and EBITDA in line with est, while PAT (excluding exceptional items) was above est owing to lower tax rate. During Q3FY20,S H kelkar reported 13.8% revenue growth to Rs2.9bn (est Rs2.93bn) led by 14.4% growth in the fragrance division, while the flavours division (10% of total revs) registered 2% growth. Gross margins declined by 250bps to 43. % (est: 42.5%) owing to change in product mix. Cost optimisation measures undertaken by the company, ram...
SH KELKAR: Growth picks up; Raw material pricing eases (SHKL IN, Mkt Cap USD0.2b, CMP INR120, TP INR162, 35% Upside, Buy) SH Kelkar's (SHKL) 3QFY20 operating performance was driven by improved demand in the Fragrances business (~90% of revenue). We expect growth momentum to be driven by demand pick-up in the underlying industry. Albeit the delay in CFF consolidation, we cut our earnings estimates for FY20 and increase estimates for FY21 on account of better demand outlook and easing RM p...
Q2FY20 results During Q2FY20, S H kelkar’s (SHKL) revenues declined by 1.5% to Rs2.8bn (est: Rs2.9bn) owing to high Q2FY19 base (28%yoy growth in Q2FY19) and subdued sentiments in the FMCG segment. Fragrance division reported flat revenue growth to Rs2.5bn,while revenues from the flavours division declined by 25% yoy to Rs212m Gross margins improved by 80bps to 43.3% (est :43%) with stable raw material prices and availability EBITDA growth came at 4.2%yoy to Rs383m, below our est of Rs472...
S H KELKAR AND CO.: Revenue in line; Miss on margins owing to one-time cost (SHKL IN, Mkt Cap USD0.3b, CMP INR128, TP INR154, 20% Upside, Buy) Revenue growth in line: 2QFY20 revenues declined 2% YoY to INR2,793m (v/s est. INR2,873m) on subdued demand in the domestic market. EBIDTA stood at INR383m (v/s est. INR503m), up 1% YoY. EBITDA margins expanded 45bp YoY to 13.7% (v/s est. 17.5%). One-time organizational restructuring cost of INR40m impacted margins. PBT declined 44% YoY to INR186m....
S H KELKAR AND CO.: Growth bounces back but revival to be gradual (SHKL IN, Mkt Cap USD0.3b, CMP INR127, TP INR177, 39% Upside, Buy) Revenue growth beats estimate: Revenue grew 15.6% YoY to INR2,744m (v/s est. INR2,611m), due to new product launches in the domestic FMCG market and healthy demand in international markets. EBIDTA stood at INR464m (v/s est. INR371m), up 37% YoY. EBITDA margins expanded 260bp YoY (+770bp QoQ) to 16.9% (v/s est. 14.2%), largely driven by lower other expenses (...
Q1FY20 results During Q1FY20, S H kelkar (SHKL) reported healthy 15.6% revenue growth to Rs2.74bn (above our est Rs2.54bn) led by 15% growth in the fragrance division, while the flavours division (10% of total revenues) registered 14% growth. Gross margins declined by 120bps to 43.% (est :42.5%) as management had curtailed supply of low margin , high volume products in Q1FY19 in a bid to protect its margins owing to raw material supply disruption Cost optimisation measures undertaken by th...
S H Kelkar and Co.: Earnings volatility continues unabated (SHKL IN, Mkt Cap USD0.3b, CMP INR154, Under Review) Poor offtake impacts performance: Revenue declined 5.4% YoY (our estimate: +4%) to INR2,697m in 4QFY19, which management attributed to a slowdown in demand, mainly in the domestic market. A structural shift toward larger/mid-sized players was evident in the domestic fragrance industry, along with lower demand from smaller customer categories. In line with this trend, SHKL gained...
S H Kelkar and Co.: Weak top-line performance; expect recovery to be gradual (SHKL IN, Mkt Cap USD0.3b, CMP INR161, TP INR207, 28% Upside, Buy) SHKL's revenues de-grew 9.4% YoY to INR2,565m v/s our est. of +13% YoY , mainly due to subdued domestic demand in Dec'18 for both flavors and fragrances segments. The management has attributed the decline in domestic sales to a transitory slowdown in homecare and essence-stick segments due to delays in GST refund (ensuing working capital constrain...
Q3FY19 results S H kelkar reported revenues below our estimates. Revenues declined by 9.7% yoy to Rs2.5bn (est Rs3bn) owing to 20% decline in domestic fragrance business (international fragrance business revenues increased by 13% yoy). Moreover, growth in the flavours business remained soft at 2% yoy to Rs276m Gross margins declined by 60bps yoy (improved by 280bps sequentially) to 45.4% (est: 43.5%) Higher other expenses and employee costs led to 500bps decline in EBITDA margins to 15.1% ...
Q2FY19 results S H Kelkar reported healthy revenue growth of 27.7% yoy to Rs2.83m above our estimates of Rs2.44m led by the fragrance division which registered 30%yoy growth to Rs2.53bn, while growth in the flavours business remained soft at 6% yoy to Rs282m. Gross margins declined sharply by 583bps to 42.5% (EST 44.5%) on raw material availability issues (fire at BASF, fire at a domestic aromatic supplier facility, china slowdown etc) Stable employee costs and other expenses restricted fu...
S H Kelkar and Co.: Regaining momentum, expect sustained recovery in 2HFY19 (SHKL IN, Mkt Cap USD0.4b, CMP INR179, TP INR244, 36% Upside, Buy) Fragrance revenues recover led by FMCG demand: SHKL’s revenue increased 28% YoY (our estimate: +15%) to INR2,845m in 2QFY19, driven by better consumer demand and product launches in the FMCG industry. Revenue was mainly driven by Fragrance business (+31% YoY); Flavors revenue grew by a muted 6% YoY. On a blended basis, EBIDTA increased 13% YoY to I...
S H Kelkar and Co.: Facing transitory issues, expect a recovery in 2HFY19 (SHKL IN, Mkt Cap USD0.4b, CMP INR194, TP INR257, 33% Upside, Buy) Sales rationalization due to RM shortage impacts performance: SHKL’s revenue grew by a muted 1% YoY (v/s our estimate of 16% growth) to INR2,374m in 1QFY19, primarily on account of severe supply side constraints. Fragrances business grew by 5% YoY to INR2,113m (domestic business grew by 13% YoY, while exports declined 11% YoY), although its PBIT marg...
The flavours and fragrance (F&F) industry has been fraught with challenges caused by disruption in raw material supplies. SHK, a key player in India, too was impacted by global headwinds in FY18 and reported muted 4.5% revenue growth and 107bps decline in EBITDA margin to 15.8%. However, improved demand from FMCG customers, normalisation of raw material situation in 2HFY19E and SHK’s 3x3 strategy make us upbeat on the company’s long-term growth prospects. In FY18, SHK bore the brunt of 1) lower ...
Q4FY18 results SHK’s reported revenue growth ahead of our estimates, however EBITDA and PAT was below our estimates. SHK’s reported revenue growth of 22.9% yoy to Rs2.85bn (est: Rs2.84bn) driven by strong performance of fragrance business which registered 18.7% yoy growth. Gross margins declined by 519bps to 39.1% due to disruptions in raw material imports. Moreover higher other expenses (up 175bps) led to further margin contraction. EBITDA margins declined by 544 to 9.5%. EBITDA declined ...
S H Kelkar and Co.: Severe supply side issues result in margin contraction (SHKL IN, Mkt Cap USD0.6b, CMP INR250, TP INR303, 21% Upside, Buy) Revenue growth in-line, margins below estimate: SHKL reported revenues of INR2,851m in 4QFY18, YoY growth of 15% (est.14%). EBIDTA stood at INR271m (est. INR569m), decline of 27% YoY with EBITDA margin contraction of 544 bps to 9.5% YoY (est.18.5%) (includes one-time expense of INR50m). Adj. PAT stood at INR231m (est. INR357m), decline of 35% YoY wi...
Q3FY18 results SHK’s reported revenue growth ahead of our estimates, while PAT was in line with our estimates. SHK’s reported revenue growth of 22.2% yoy to Rs2.8bn (est: Rs2.7bn) driven by strong performance of fragrance business which registered 25.8% yoy growth. Gross margins declined by 240bps to 46.1% due to short-term disruptions in raw material imports. However, positive operating leverage led to 330bps expansion in EBITDA margins to 20.3%. EBITDA increased by 45.6% yoy to Rs576m (e...
S H Kelkar and Co.: Volume recovery leads to a strong quarter (SHKL IN, Mkt Cap USD0.6b, CMP INR289, TP INR343, 19% Upside, Buy) Robust performance led by a recovery in FMCG growth trend: SHKL’s revenue increased 13.5% YoY to INR2,831m (est. of INR2,551m) in 3QFY18 (22% YoY growth post netting off GST from the base quarter). Fragrance business reported growth of 16.5% YoY to INR2,546m, while Flavors business reported de-growth of 8.4% YoY to INR272m. EBITDA rose 46% YoY to INR576m (est. of I...
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