Coal India, APL Apollo Tubes, CCL Products And More - Top Stock Picks For August By Axis Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Axis Securities Report.Coal India Ltd. - Coal India has a robust financial risk profile with healthy net cash and cash equivalents of Rs 25,870 crore (as of March 2022). Trade receivables have come down to Rs 11,368 crore in FY22 from Rs 19,623 crore in FY21 leading to positive free cash flow in FY22 (post working capital changes). The company has a capex plan of Rs 17,000 cr for FY23, primarily on evacuation infrastructure. Despite the proposed capex and high dividend payout, liquidity will remain robust over the medium term, backed by a robust capital structure and healthy cash accrual.APL Apollo Tubes Ltd. - The capex from internal cash accruals targeting capacity addition (Raipur plant with value added portfolio), value addition at other low margin plants and cost savings augurs well for APL Apollo in our view to maintain its return on capital employed to the north of 30% (FY22 at 34.5% versus 26.5% in FY21) across the steel cycle. Further, to protect its margins in the steel downcycle, the company has maintained capex discipline and lean working capital with efficient inventory management leading to robust free cash flows. CCL Products India Ltd. - We remain positive on CCL Products given-expertise in customised blends;cost-efficient business model;largest manufacturer and exporter of instant coffee; doubling of Vietnam capacity from the current 13,500 million tonne leading to volume growth visibility for the next two years; capacity additions in value-added products (FDC and small packs), and foray into high margin branded retail business (Continental Coffee).We expect CCL Products’ sales/Ebitda/profit after tax to grow at 17%/18%/21% CAGR over FY21-24E. .Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Coal India, APL Apollo Tubes, CCL Products And More - Top Stock Picks For August By Axis Securities

Coal India, APL Apollo Tubes, CCL Products And More - Top Stock Picks For August By Axis Securities

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