Prime Stock recommendation: An averaging call

1. 

   sanker.v

   August 9, 2022 at 7:42 pm

   After the recent quarterly results (Q1 FY 23) do you really see any chance of improving fundamentals in line with the averaging call made in June ?
   1. 

      sanker.v

      August 9, 2022 at 8:37 pm

      My query pertains to Advanced Enzymes
   2. 

      N V Chandrachoodamani

      August 10, 2022 at 10:49 am

      Welcome your query sir,

      This quarter was sharply lower on profitability even though sales didn’t fall much.
      EBIDTA margin contracted to 26% Vs its own average of 35-40% in the past

      The business in which the Co is engaged is a high margin business with much higher potential than this 26% we are seeing this quarter
      And there is not much change in the tone/confidence of management on the margin recovery

      To give an idea of what is happening in these kind of businesses, there have been some imbalances post Covid. During Covid, it was stocking, then trade disruptions, then steep raw material price increase and recently de-stocking at customer level. All these have been causing lot of volatility in earnings

      Management still maintain their growth guidance with margin recovery in the second half of this financial year. While giving the averaging call post Q4FY22 results, our sense was that we will see stability in this quarter and recovery will following from second quarter.

      But, now it looks like there will be more lag and recovery is expected from third quarter only.

      Thank you
2. 

   Krishnaraj Ved

   July 4, 2022 at 9:17 am

   For articles on GSec.etc.
   Too complicated. Make it simple.
   Also suggest which one to invest.
   1. 

      Bhavana Acharya

      July 7, 2022 at 10:54 am

      We have specific recommendations on which G-Sec to invest in here: https://www.primeinvestor.in/prime-bonds/. – thanks, Bhavana

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