Tit - Bits

Indowind Energy Ltd (Rs.16.50):

🎯 Excellent Q1FY23 results, with an improvement in both net profit and EBITDA.

🎯Indowind Energy Ltd to raise upto Rs.50 crores through rights issue.

🎯The wind power market size is projected to reach $ 214.65 Billion by 2028, with a CAGR of 11.37% from 2021 to 2028 with the annual installation expected to cross 120 GW during the forecast period.

🎯The company offers various services in wind power space, like developing wind farms for sale and generating wind power.

🎯The Centre has made an in-principle decision to drop e-reverse bidding for wind power projects following numerous requests from the industry. Reverse bidding constrained companies from utilising the potential in seven windy states.

🎯According to Indu Shekhar Chaturvedi, secretary for the union ministry of new and renewable energy, the growth of the renewable energy sector has been recognised as a vital sector for self-reliance, because it is intimately tied to the country reaching its net zero objective by 2070.

Zomato Ltd (Rs.59.70: 

🎯Aready positive on cash flow with its adjusted EBITDA losses at Rs.150 crore and other at Rs 170 crore in Q1FY23.

🎯On a consolidated basis, Zomato Ltd had reported a narrowing of net loss to Rs.186 crore in the first quarter ended June 30, 2022, from a net loss of Rs.360.7 crore on Y - o - Y basis.

Its consolidated revenue from operations was at Rs.1,413.9 crore compared to Rs.844.4 crore in the same period last fiscal.

🎯Zomato Ltd is targetting to achieve breakeven in overall business between Q4FY23 and Q1FY23, having cut losses gradually, according to the company's CFO.

Dharani Sugars and Chemicals Ltd (Rs.11.35):

🎯The ongoing festival season is likely to push up the demand for sugar.

🎯It is a matter of pride for India that the country has one of the fastest growing ethanol program in the world. The current ethanol blending has exceeded 10% in India. The sugar industry is bound to gain from increasing ethanol program in the country.

🎯Indian exporters are likely to get better opportunities in the export markets this year as Brazil and Thailand, the two largest sugar exporters in the world, are expected to witness lower production of 7-8 MT each, compared to last year, due to the challenges produced by adverse weather. The shortfall in global sugar production has resulted in a sharp increase in global prices of sugar which experts believe is likely to sustain.

🎯 India is set to allow sugar Exports of 7 to 8 MT,  in two tranches, for the next session beginning in October; in order to strike a balance between the interest of the farmers and consumers.

🎯The sugar season of 2021-22 for India had been exceptionally good with high production and record prices. The country had seen robust export of nearly 100 lakh tonnes of sugar without any government incentive before the Centre put the brakes on exports.

🎯With the 2022-23 sugar season expected to start in October, the industry is hopeful of another good season. Yesterday, sugar stocks climbed to a 3-month high over increasing supply worries. Indian export curbs and bad weather have tightened global supply.

🎯Strong export demand and the introduction of a new biofuel strategy (ethanol blending) have made it possible for the Indian sugar industry to grow. In May 2022, India reached its goal of 10% ethanol blend in gasoline. The sugar industry will experience a significant boost if ethanol is successfully blended into gasoline at a 20% rate by 2025.

Swan Energy Ltd (Rs.209): 

🎯The stock corrected yesterday even though Singapore GRMs rose nearly 48% for the second consecutive day.

🎯“In India, two floating storage and regasification units (FSRUs) based terminals, at Jaigarh and Jafrabad, are currently under development and are expected to start operations in 2022 after pandemic and weather-related delays,” the International Gas Union (IGU) said in its World LNG 2022 report. 

🎯In comparison to traditional onshore regasification plants, FSRUs provide greater flexibility, lower capital expenditure, and a faster method of utilising LNG-sourced natural gas.

🎯In 2022, 45 FSRUs will account for 7% of the active global LNG fleet. Hoegh, Excelerate Energy, and BW continue to operate the largest fleets of active FSRUs, while New Fortress Energy has entered the market by acquiring Golar units.

🎯The LNG Terminal (FSRU) by Swan Energy Ltd (Rs.209), was initially expected to be commissioned in early 2020. However, two cyclones and the pandemic delayed the construction of a breakwater required to ensure that it is an all-weather facility. The facility, which is partially owned by Swan Energy, is expected to come online in the second quarter of 2022.

🎯Swan Energy owns 63% of Swan LNG, while two entities of Gujarat State government together have a 26% share. Mitsui holds11% and is also the technical partner on the project.

🎯In August 2016, India's three largest public sector oil companies, ONGC, IOC, and HPCL, backed Merchant's pet project, the LNG terminal at Gujarat's Jafrabad port. The 3 (three) companies reserved 60% of the terminal's capacity - a floating storage regasification unit, or FSRU. Another Gujarat government company, GSPC, is said to have reserved 1.5 million tonnes of terminal capacity at Swan's proposed terminal. As much as 90% of the 5 MT capacity of the terminal has been booked for usage by state-owned firms. Because of these offtake agreements, Nikhil Merchant's LNG venture is now virtually risk-free.

Interestingly, Nikhil Merchant, MD and executive director, Swan Energy Ltd, the 50-something entrepreneur's proximity to Narendra Modi is an open secret in the upper echelons of the Bharatiya Janata Party and its Delhi government.

BPL Ltd (Rs.71.10): 

It is a consumer electronics company with a market capitalization of Rs.347.72 Cr. It manufactures CFL and LED lighting, consumer electronics, single-sided printed circuit boards (PCBs), etc.

BPL sold well over a million television sets across India at its peak in 2002. The Bengaluru-based electronics company dominated the market throughout the 1990s. Today it's not only selling television sets and refrigerators, but also a variety of other products such as medical equipment, music systems, and home theatres.

The ongoing festival season is positive for consumer electronics stocks.

BPL Ltd reported excellent numbers for Jun-22, when net sales came at Rs 12.14 cr  growing at 103.69 %.  PAT(Q) came at Rs.1.25 Cr growing at 201.6 %. ROCE (HY) was the Highest at 5.33 %. Buy with a target of Rs.87/90.

Simbhali Sugars Ltd (Rs.21.15): 

Buy with a SL of Rs.17, for targets of Rs.29/31.