Sun TV, Monthly - Breaking out. Numbers have been hit with lower ad spends in the last quarter and also because of last year Q1 having IPL revenues. This year IPL revenues should flow in Q2 and Q3 and so will the ad spends. Their subscription revenues are growing well. Valuations are very attractive at 13x (subdued) earnings and a Div yield of close to 6%.
KNR Cons, Weekly - Breaking out with volumes this week. This is one of the decent players in the infra space. They are into road as well as irrigation projects (Almost 50-50 split). Last quarter numbers were very good with EBITDA growth given the circumstances. Current Order book at almost 3X FY20 Sales and between Q1 and Q2, Order book has almost grown 50% a bulk of it from Irrigation projects. Their WC management is by far the best in the industry and they haven’t even opted for moratorium during these times. I think we are getting into a low interest rate, weak dollar environment which should flood EMs with easy money which should make erstwhile unviable businesses more viable now due to the lower cost of capital - so I am somewhat positive on the Infra and Construction space, especially due to the valuations. This is a theme that can persist for some time and is not specific to KNR alone.
Nocil, Monthly - Anti-dumping duty play. There is a anti-dumping investigation initiated in May against PX-13 dumping (Should make up about 40% of Nocil’s topline). Given the current protectionist environment it is highly likely to play in Nocil’s favor. Attractively valued as well.
Thirumalai Chemicals, Monthly - Similar play as Nocil. Anti-dumping investigation on Phthalic Anhydride dumping from China initiated in May. Very likely given the sentiment to work out in company’s favor.
Disc: Have positions in all of them from sometime this month.