Aether Industries, Greenpanel Industries, CAMS Q4 Results Review: HDFC Securities
CAMS clocked in-line core revenues at Rs 2.5 billion, however, the disappointment stemmed from a sharp rise in other opex.
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HDFC Securities Institutional Equities
Aether Industries - Margins on the rise
We remain positive on Aether Industries Ltd. on the back of-
capacity expansion-led growth,
advanced research and development capabilities,
market leading position in most of its products,
strong product pipeline, and
marquee customer base.
Ebitda/adjusted profit after tax were 24/33% below our estimates, mainly owing to a 23% fall in revenue and higher-than-expected tax outgo.
CAMS - Quest for green shoots continues
Computer Age Management Services Ltd. clocked in-line core revenues at Rs 2.5 billion (up 2.4% QoQ); however, the disappointment stemmed from a sharp rise in other opex (up 16% QoQ) due to higher marketing spends and regulatory audits, driving sequentially flat core income/profit after tax to Rs 0.91 billion/0.74 billion. Continued market leadership in the duopoly Registrar and Transfer agents market, sizeable entry barriers, and high switching costs position CAMS favorably; however, we are wary of SEBI’s ongoing discussion on further TER cuts that could potentially derail RTAs’ medium-term earnings.
Greenpanel Industries - Surge in low-value exports and weak ply dent margin
We like Greenpanel Industries Ltd. for its leadership positioning in the medium density fibre segment, its large retail presence (85% in FY23), superior margin, and working capital profile.
The surge in low realisation MDF export volume (+89% YoY) drove up the total volume by 10% YoY. Higher exports, rising timber prices and increased brand spending pulled down the MDF Ebitda margin by ~400/1300 bps QoQ/YoY to 22%.
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