State of Gujarat Petronet Ltd
Brokerage firm Sharekhan said in a report that “Gujarat State Petronet Limited (GSPL) Q4FY22 standalone operating profit of Rs. 306 crore (down 11.1% yoy and 9% yoy annual) missed our estimates on lower than expected gas transmission volumes of 29 mmscmd (down 13.5% yoy; down 8.3% yoy) offsetting a 4% rise in Implicit net transmission tariff at Rs. 1.39/scm (up 9.2% YoY; up 3.8% YoY). Refinery & Petrochemicals was down 48%/13%/3% from the quarter to 1.1mmscmd/11.3mmscmd/8.2mmscmd, given lower gas demand on the high spot price of LNG, while Fertilizer business volume increased by 8% qoq to 3.4 mmscmd Adjusted PAT of Rs. 202 crore (down 2.8% YoY; down 5.3 % YoY) was slightly lower than our estimate of Rs. 210 crore as the lack of volume is compensated by better transmission rates, lower interest charges, higher other income and 22% lower tax rate .2% (versus 25.3% in Q3FY22). »
“Regulatory tailwinds, potentially higher domestic gas production and proximity to LNG terminals (27.5 MTPA regassing capacity) make GSPL a solid long-term bet on India’s strong gas demand outlook. We emphasize here that GSPL’s core pipeline business is effectively available to investors free of charge, as GSPL’s market capitalization is below the market value of its investment in Gujarat Gas (assuming a 20% discount). on the holding company) Therefore, we are maintaining Buy on GSPL but with a revised price target based on SoTP (PT) of Rs. lower volume growth),” Sharekhan said.
Indian Bank (INBK)
For the quarter ended March 31, 2022, state-owned Indian Bank reported a 42.4% drop in net profit. Net profit for the quarter was Rs 984 crore, down from Rs 1,709 crore the previous year. PAT increased by 31% to Rs 3,945 crore for the whole of FY 2021-22 from Rs 3,005 crore for FY21. For FY22, the bank recommended a dividend of 6.50 rupees per share with a nominal value of 10 rupees.
Following the result, brokerage firm Motilal Oswal said in a report that “INBK recorded a stable 4QFY22, with net profit QoQ up, supported by lower provisions and tax write-off, even though the bank has covered all pension liabilities NIM moderated, while business growth showed healthy traction, led by retail and agriculture lending Bank expects lending growth to improve , led by the Retail, Agriculture and MSME (RAM) segment Asset quality has improved, however high slippages and a higher restructured portfolio (~4.7% of loans ) keep us vigilant on asset quality. We have reduced our FY23/FY24 estimate by around 6% each and estimate that credit costs will remain at 2%/1.7%. We expect the bank to provide a RoA/ FY24 RoE at 0.8% / 13.6% We maintain our Buy rating, with a reduced TP of INR 185 per share (0.5x FY24E ABV).”
Canara Bank (CBK)
Canara Bank recorded net profit of Rs 1,666 Cr in the fourth quarter (FY 2021-22), up 64.90% year on year, and operating profit of Rs 6,202 Cr, up 18.80% over a year. Canara Bank’s net interest income (NII) rose 24.84% year-on-year to Rs 7,005 crore, while gross advances rose 9.77% to Rs 7,41,147 crore . The bank recorded a CASA of Rs 3,68,732 Cr, up 11.52% year on year. The bank recorded a standalone net profit of Rs 5,678.42 crore in FY22 compared to Rs 2,557.58 crore in FY21. For FY 2021-22, the board of directors of the bank has recommended a dividend of Rs 6.50 per share.
Following the bank’s performance, brokerage firm Motilal Oswal said that “CBK reported stable operating performance underpinned by healthy margins, modest loan growth and strong asset quality. While the portfolio of companies saw a slight decline, the bank continued to grow RAM segment at a steady pace with contribution from all segments Despite high slippages, asset quality ratios improved further, supported by recoveries and higher upgrades Lower SMA late payments and restructured portfolio provide additional comfort on asset quality trends We estimate a RoA/RoE of 0.7%/~13% by FY24. We maintain our buy rating with a TP of INR 280 (based on 0.8 x FY24E ABV), implying 28% upside potential.
The stocks were selected from the research report of several brokerage firms. Greynium Information Technologies, the author, and the brokerage are not responsible for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.