Review of Mool's Analyst Calls

Mool initiated coverage on 24 stocks starting from December 2023. Amongst the 24 ideas, 9 were largecap stocks, 9 were midcap stocks and 6 were smallcap stocks. Out of the 24 ideas, 10 stocks have already achieved their target price. The top performing idea was LT foods which appreciated 58% and our conservative pick Jio Financial Service was up by 12%. We exited the 10 ideas with an average return of around 30% on a time frame of ~7 months, starting from 21st Dec’23 to 5th July 2024. In the same timeframe, The BSE 500 index generated 22%.

At Mool we believe in picking fundamentally sound, fairly valued, well managed companies and themes which we anticipate playing out in the medium term.

Summary of the 10 stock ideas

‍‍Performance Visualization

(Realized Returns)

Target Achievement Rationale

LT Foods (58% up in 4 months)

• Abakkus Asset Management, a renowed AMC acquired 0.98% in the company, totaling ~INR 55 crore. This triggered a positive sentiment and increased investor interest.

• In FY24, there was a 17% increase in the volume of basmati and other specialty rice and a 30% increase in the volume of ready-to-eat food products which positively impacted the stock fundamentals.

Zomato (43% up in 5 months)

• Zomato’s Ecommerce subsidiary, Blinkit added 149 new SKUs in FY24. They aim to add approximately 475 new SKUs in FY25, increasing the total SKU count to around 1,000 by March 2025.

• The company expects the adjusted EBITDA margin to reach 4-5% of GOV in the medium term.

Chemplast Sanmar (39% up in 4 months)

• The management expects normalcy in the input costs in the paste PVC segment which positively impacted investor sentiment.

• The company’s board approved the raising of funds of ~INR 1000 Cr via equity issuance/ warrants.

Data Patterns (32% up in 1 month)

• The defence stocks rallied in anticipation of favourable policies as the previous government is back in office continued positive sentiment

• The company has visibility for a healthy order book of INR 2,000-3,000 Cr.  over the next two years, underpinning its growth prospects.

Amara Raja Energy & Mobility (30% up in 5 months)

• Amara Raja Energies to scale up gigafactory battery capacity by over 50%

• In the Q4FY24, Amara Raja recorded a 61.4 percent increase in net profit year-on-year, amounting to INR 230 Cr. Meanwhile, revenue from operations rose by 19.5 percent to INR 2,908 Cr.

• Election results impacted positively as TDP won in Andhra Pradesh, which positively impacted the investor sentiment.

Eicher Motors (26% up in 5 months)

• The company sold a record 835,000 motorcycles in FY24, which boosted their market share from 7.8% to 8.1% in the domestic motorcycle market (250-750 cc).

• The company also recorded Highest ever revenue from the non-motorcycle business at INR 2,439 Cr.

Mayur Uniquoters (23% up in 6 months)

• Management's positive guidance

  • 20% growth in export OEM

  • 20-25% growth in general export in coming year

• BMW order to commence in July-August 2024

Prestige Estate Projects (20% up in 4 months)

• Record-breaking performance in FY24

  • Highest ever sales of INR 21,000 Cr

  • Highest ever area sold of 20.25 million square feet

• Robust growth prospects

  • INR 60,000 crores worth of launches in pipeline

  • FY '25 sales target of INR 26,000-27,000 crores

Gabriel India (20% up in 5 months)

• Confident outlook on achieving double-digit margins

  • Expecting an input cost reduction in the 2W industry which is experiencing tailwinds

• Expected growth in new segments

  • Sunroof manufacturing capacity is set to double by FY26 to 200,000 units p.a.

  • First mover advantage in the electric 2W suspension segment

Jio Financial Services (12% up in 5 months)

• Expanded joint venture with BlackRock which includes wealth management and broking alongside asset management

• A negative sentiment for the Paytm stock, positively impacted the other payment companies like Jio Financial Services.

Disclaimer:

Mool Capital Limited is a SEBI Registered Research Analyst having registration no. INH000012449. This report has been prepared by Mool Capital Pvt. Ltd. and is solely for information of the recipient only. The report must not be used as a singular basis of any investment decision. The views herein are of a general nature and do not consider the risk appetite or the particular circumstances of an individual investor; readers are requested to take professional advice before investing. This document is not, and should not, be construed as an offer or solicitation of an offer, to buy or sell any securities or other financial instruments. This report should not be construed as an invitation or solicitation to do business with Mool Capital. Mool Capital and its affiliated company(ies), their directors and employees may; (a) from time to time, have a long or short position in, and buy or sell the securities of the company(ies) mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have any other potential conflict of interests with respect to any recommendation and other related information and opinions.