NOTE: Numbers rounded off to the nearest integer, except debt/equity (D/E). All financial numbers are in ₹ crore and on consolidated basis, wherever available. Standalone numbers were considered for Supreme Infrastructure. FY13 numbers have been annualised for 23 companies since they were yet to announce their full-year results at the time of compilation. CAGR and RoCE are in%, D/E ratio is in times (X). Stock prices are in ₹ and market cap in ₹ crore. FY13 and YTD returns are in %. YTD returns, m-cap, share price and TTM PE (x) are as of May 3, 2013.
Data: Ace Equity
30. Ramky Infrastructure
The Hyderabad-based company gets over half of its revenues from building roads and bridges. It is also into waste water and water management, and development of commercial and residential real estate. The slowdown in order flow is a concern as the company managed to garner only ₹950 crore in the nine months ended December 2012 compared with the ₹5,800 crore it managed to book in FY12. Despite this, its order-book stands at ₹12,500 crore, which is 3.8 times its 12-month trailing revenues. The company, though, needs to keep a lid on costs, which have begun to eat into profitability.
30 June 2025
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29. Munjal Auto Inds
Munjal Auto primarily supplies exhaust systems and mufflers to group company Hero Motocorp and manufactures fuel tanks for four-wheelers, primarily Tata Nano. Mufflers contribute over 80% of revenue, with wheel rims, fuel tanks and other components making up the balance. Already, 97% of the company’s revenue comes from Hero and that is unlikely to change anytime soon. Given that Hero’s sales have been stagnating (1% growth in FY13) and with the management indicating another weak year in FY14, the outlook for the auto ancillary company is far from rosy.
28. HCL Technologies
India’s fourth-largest tech services provider has been performing better than some of its larger peers. It derives 30% revenues from infrastructure management services, one of the fastest growing IT segments. Its Axon acquisition, in 2008, is helping the company do well in the challenging European market. The company has been in the news for not taking on board all its 2012 campus recruits and has indicated it will not make any campus hires this year. Analysts believe it will continue to outperform as they expect its non-linear strategy to increase productivity gains further.
27. Globus Spirits
It’s the market leader in country liquor with the largest selling brand, Nimboo, in the north. While country liquor fetches 44% of revenues, bulk alcohol accounts for 21% and contract manufacturing fetches 17%. Globus has a couple of IMFL brands that bring 4% of revenues. The company is now eyeing new markets to sell country liquor, and also market low-priced products made by other players. While growth potential remains high — current per capita consumption is 0.97 litres — exposure to low strata rural consumers is cause for concern as poor monsoon could hit rural incomes, thus impacting demand.
26. Relaxo Footwears
The second-largest footwear company in India is known best for its Hawaii slippers brand. While Paragon is a leader down south, Relaxo leads in the north from where it gets 60% revenues. Over the past five years, the launch of premium brands Flite and Sparx has reduced the revenue share of the low-value Hawaii to 35% from 95% in FY04. Besides a network of 46,000 retailers and 700 distributors, Relaxo owns 154 outlets. It is now focusing on the non-metro market, which accounts for 55% of the footwear business, and has strong growth prospects.
25. Core Education & Technologies
It has been a rough patch, of late, for the technology solutions provider in the education space. First, it lost over three-fourths of its m-cap in February on rumours that lenders had sold pledged shares of some investors. The fall subsequently led to the sale of pledged share of promoters. The next blow came when Moody’s downgraded the stock in March over Core’s inability to raise capital for its capex. It will be some time before the storm surrounding Core Education blows over.
24. J Kumar Infraproject
Over 75% of the infra company’s revenues comes from flyovers and roads and it had an order-book of ₹3,900 crore as of Q3FY13. This is over four times its 12-month trailing revenues. However, revenue growth has been muted as some of the income from projects has not been recognised yet. The management is betting on better execution to achieve 30% revenue growth in FY14. The fact that J Kumar is not highly leveraged should work to its advantage, but unless it steps on execution and the order flow momentum is sustained, the next year will be a challenging one.
23. Vinati Organics
This specialty chemical company is the world’s largest producer of IBB (Isobutyl Benzene), a key raw material used for making popular painkiller ibuprofen, and is the second-largest producer of ATBS, a specialty monomer used in oil recovery, water treatment and personal care products. The US-based BASF is a major client for IBB. Currently, ATBS and IBB make up for over 80% revenues. Going ahead, Vinati plans to focus on ATBS and three new specialty chemicals to grow its business. It derives 89% of its revenues through dollar-linked contracts; hence, rupee movement is key to bottomline growth.
22. Swaraj Engines
The company supplies engines to Mahindra & Mahindra, which is not only India’s largest tractor manufacturer with 41% marketshare but also holds 33% stake in Swaraj Engines. It’s been an investors’ favourite, given its consistent dividend payouts, a strong balance sheet with surplus cash and zero debt. The company revved up capacity to 75,000 engines annually in FY13 from 42,000 engines in FY11. However, weakening demand from the tractor industry led to flat revenue and profit in the March 2013 quarter. With no respite seen from the challenging macro-environment, tractor sales are likely to be muted for now, which could reflect on the company’s performance in the coming quarters. However, its strong fundamentals should help Swaraj Engines tide over short-term hiccups.
21. MBL Infrastructures
Yet another company that specialises in highways and roads in the infra space has made the cut but is faced with challenges. There have been delays in execution as some projects await government approvals. MBL’s order-book stands at ₹2,350 crore, which is only 1.9 times its trailing 12-month revenues. A chunk (71%) of the order-book comprises road projects. The good news is MBL is still able to raise funds for its projects. It recently announced financial closure for the Bikaner-Suratgarh BOT road project in Rajasthan.
20. Cera Sanitaryware
India’s second-largest sanitaryware major with a marketshare of 23%, competes with leader Hindustan Sanitaryware & Industries (41% share). High marketing spends have ensured good brand visibility with sales clocking a CAGR of 28% and profits doing over 34% in the past five years. Over 55% of its products are produced in-house. That demand has been robust is evident from the 53% revenue growth Cera clocked in FY13 with operating margins of 15.4%, despite higher raw material costs. It is now foraying into the tiles segment and is eyeing revenues of ₹20 crore in the first year of launch.
19. Titan Industries
It has been a jewel of sorts in the Tata Group’s crown. For Titan, the jewellery business, which brings in 80% of revenues, has been growing 36% on average in the past five years. Watches, which defined the brand in its earlier years, now contribute less than one-fifth of revenues and are seeing muted volume growth. Uncertainty in the regulatory environment owing to changes in government policy and a slump in gold demand could impact both revenue and earnings growth in the coming quarters. However, it remains one of the best branded plays in retail with its strong management team and balance sheet.
18. eClerx Services
It is the only listed BPO, which specialises in KPO services such as data analytics, operations management and audit reconciliation for global banks. eClerx inks multi-year annuity contracts to ensure a steady revenue stream. With a challenging demand environment where clients take longer to commit business, organic growth could be muted. However, its acquisition of US-based KPO Agilyst, which caters to the cable and broadband industry in North America, will help grow revenues faster. Board approval to buy back 10% of the company’s shares should support the stock in the meantime.
17. RS Software (India)
This Kolkata-based company earns 80% of its revenues by selling e-payment solutions to global financial institutions, payment networks and processors in the US. Its services include setting up payment gateways, risk modelling and gift and loyalty management programmes. It also provides data analytics, warehousing and business intelligence solutions. With the share of electronic payments in India rising, thanks to a burgeoning e-commerce market, the payments processing business, estimated at $900 billion, offers ample growth opportunities for RS Software.
16. Opto Circuits (India)
Having grown over the past five years through acquisitions, Opto Circuits is currently grappling with its working capital requirements. The company is looking to restructure debt worth ₹1,065 crore, of which around ₹350 crore will be reallocated to its subsidiaries in the US, Germany, Malaysia and Singapore so that they share the debt burden as well. The promoters will be subscribing to 2 million share warrants at ₹145 per share, to help the company bridge this funding gap. The medical equipment segment, which accounts for 80% of revenues, has seen delayed shipments as demand has softened. Much of the company’s fortunes now hinge on how it tides over its working capital crisis.
15. BS Ltd
Formerly BS Transcomm, the company provides infrastructure to players in the power transmission and distribution, and telecom sectors. Based out of Hyderabad, the company got listed in 2010 when it raised ₹190 crore to fund its expansion plans. Consequently, it has ramped up manufacturing capacity to 240,000 MT per annum with a backward integrated structural steel rolling mill to meet raw material requirements for manufacturing towers. The company has also forayed into mineral resources through its subsidiary with an intention to enter the power sector at a later stage. For now, analysts expect revenues to grow by 16% and earnings by 10% in FY14.
14. Manjushree Technopack
The manufacturer of PET bottles, preforms (semi-finished bottles) and multi-layered packaging serves the packaging needs of leading FMCG companies. Timely capacity expansions have led to its preform capacity going up from 50,000 MT in FY12 to
85,000 MT now. What’s working for the company is that the FMCG sector, from where it derives 80% revenues, continues to grow. In an intensely fragmented industry such as packaging, Manjushree has managed to hold on to its operating margins despite its significant capacity expansion.
13. ICRA
An associate company of Moody’s Investors Service, Icra is the second-largest credit rating agency in India after S&P-owned Crisil. The rating business is seeing more competition with the entry of new home-grown players. So, it’s not surprising rating fees have declined in the past few years. A higher than expected fall in rating fees would act as a dampener on revenues and profitability. A slowdown in the debt market has already impacted the volume of debt ratings: 588 in FY08 to 344 in FY12. Unlike Crisil, Icra is yet to develop a strong vertical outside of its rating business.
12. Anil Ltd
The Gujarat-based, 73-year-old company manufactures starch and specialty starch products used by textiles, food and beverages, pharma, paper and animal feed players. The company has aggressively expanded its geographical markets by stepping up exports to over 35 nations since FY12. Impressively, profits have shown 48% CAGR against 29% CAGR in sales over the past five years. Anil is now investing over ₹200 crore for a majority stake in Gujarat’s first Mega Food Park, which will be a ‘farm to fork’ venture aimed at integrating different aspects of food processing and agri-business supply chain.
11. Page Industries
As more Indians lap up branded clothing, Page Industries, the exclusive licensee of Jockey International in India, has been among the biggest gainers. Jockey now holds 21% share of the men’s and 12% of the women’s innerwear markets. So, Page is best placed to leverage the potential in this market, estimated to grow to ₹43,070 crore in FY20. Its distribution network of over 23,000 retail outlets and planned capacity expansion to 150 million pieces by December 2013 and 196 million by 2017 should help the company meet the growing demand.
10. Technofab Engineering
It began as EPC contractor for power projects (balance of plant) but today has a diversified user base, with its ₹1,050 crore order-book comprising water (42%) power (24%) and electrical distribution (17%). A robust overseas presence contributes 60% of revenues (as of Q3FY13), making it less vulnerable to the slowdown back home. Though its current order-
book is nearly three times its FY12 revenue, and it has the least leverage (₹51 crore) on its books, the management does not expect to grow at the previous pace, given it hasn’t got orders in the past year from the power sector.
9. Godrej Consumer Products
It’s the leader in the ₹1,000-crore hair colour market with 35% share, and is the second-largest player in the ₹900-crore toilet soaps market. Its global acquisitions and focus on Asian, LatAm and African markets have paid off, with international revenues contributing 45% of consolidated revenues. GCPL’s India business, which makes up the rest, grew 18%, driven by hair colour demand and growth in the household insecticides business. While margins were under pressure in Q4FY13 owing to higher marketing and ad spends, GCPL says it sees no signs of a slowdown.
8. TTK Prestige
With 40% market share, it’s one of the leading brands in pressure cookers and non-stick cookware. The dependence on its traditional stronghold in the south for revenues has reduced from 80% in FY08 to 55% in FY13. This has helped TTK Prestige overcome the slump in demand from its key markets (Tamil Nadu and Kerala, which bring 35% of revenues). Regulation on limiting the supply of LPG cylinders should drive growth of induction cooking tops, while increased capacities for pressure cookers (8 million units) and non-stick cookware (12 million units) should help meet the growing demand in new markets.
7. Mayur Uniquoters
This Jaipur-based company has emerged as India’s largest synthetic leather manufacturer. While footwear contributes 50% of revenues, Mayur earned its spurs in the auto market by catering to all major OEMs and to the replacement market. Though auto demand has been losing steam, export revenues have grown rapidly. Ford and Chrysler are its big clients globally, and Mayur is close to tying up with BMW and General Motors. Given that global OEMs buy synthetic leather in excess of ₹500 crore each year, the cash counters should keep ticking for this one.
6. Liberty Phosphate
This fertiliser company was recently in the news when Coromandel International picked up a 56.28% stake at ₹241 per share. Coromandel has made an open offer to acquire an additional 26%, as well. With an installed capacity of 960,000 MT per annum, it is looking to set up a greenfield facility of 132,000 MT in Rae Bareli, Uttar Pradesh. However, delayed monsoons leading to poor demand and consumption of phosphatic fertilisers have impacted performance in the nine months ended December 2012. It remains to be seen how the change in ownership will help Liberty in the near term.
5. Supreme Infra India
The integrated EPC player has emerged as a leading BOT player with 10 road projects worth ₹4,370 crore, spanning over 1,810 km. Unlike its peers, Supreme earns 16-18% margins since it owns quarry mines, crushers, RMC and wet mix plants. Though 85% of its ₹5,400 crore order-book comprises buildings and roads, the company is making inroads into other segments such as water, railways and power. Debt of over ₹1,800 crore is cause for concern, though analysts expect interest costs to fall and operational BOT projects to take care of equity infusion in other road projects.
4. Ushdev International
Initially the company began trading in flat steel products, and later extended its portfolio to include non-ferrous metals. This metals trading company merely acts as an aggregator by placing an order with a supplier only on receiving a firm order from a client, thus avoiding price volatility. By getting the supplier to ship the goods directly to clients, Ushdev International saves on logistics and inventory costs as well. Though sales in FY13 have been robust, rising interest costs owing to high debt is playing spoilsport.
3. Minda Corporation
The flagship of the Ashok Minda (Spark Minda) Group is among the largest suppliers of electronic and mechanical security systems for Indian auto OEMs. It exports 20% of its products to the US, Europe and Asean countries. Besides 19 plants in India, it bought six companies overseas and struck four JVs. While sales and profits have grown at a healthy clip over the past five years, client concentration — 40% revenues from Bajaj Auto between FY08 and FY12 — and weak performance of overseas subsidiaries that bring in 45% of revenue pose a challenge.
2. Jubilant FoodWorks
With 552 Domino’s outlets across 118 cities, Jubilant runs the largest pizza chain in the country with 55% share of the organised pizza market. Besides, it has opened 10 Dunkin’ Donuts stores in FY13 and plans to launch two more by March 2014. The rip-roaring growth seen in the past, though, is cooling off as same store sales (SSS) growth has begun to slow down — 19% in 9MFY13 against 30% in FY12. Analysts expect slowing SSS growth, higher marketing costs, lower profitability of new stores and losses related to new Dunkin’ outlets to pose key downside risks.
1. Kaveri Seeds
The company is among India’s leading producers of hybrid seeds. Kaveri began with corn hybrids and went on to develop a well-diversified portfolio that includes cotton, rice and vegetables. It has one of the biggest collection of germplasm, which deliver more hybrid seeds. The Bengaluru-based company came up with blockbuster cotton hybrid brands such as Jadoo and Jackpot that fetch 60% revenues. Its 15,000 dealers, strong R&D focus and a robust product pipeline should help sustain its position as a frontrunner in the lucrative hybrid seeds business.
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