Bandhan Bank

Pros

• Net profit of Rs 209.27 Crore in latest quarter

• Delivering average RoEs of 14.8% over last 5 years (11.9% over last 3 years)

• Pan-India presence and focus on diversification of its book

• Risk-reward is favourable at current valuations of 1.6x FY24E P/B(current price of share to book value of share),for HDFC bank its above 3

• Stock is somewhat undervalued compared to peers.

Cons

• Total income down by -3.08 % from last quarter.

• Net Profit has declined -63.74 CAGR in the last 3 years.

Verdict: Strong buy at the price level of Rs.240, target price 320

Ambika Cotton Mills Ltd

Pros

• The company has built long-term locked-in clients

• The company is more efficient & profitable than its peers

• The historical growth rate of the company has been steady at 12% in the last 5 years

• The company has been able to maintain a consistent ROE of 15%+ in 5 years

• The company is financially healthy due to good liquidity and no debt

Cons

• Export accounts for more than 60% of turnover, and volatility associated with forex rates

• Cotton availability and price are dependent on monsoon, volatile.

Verdict: Good buy at ~1540, target price 1700

Thirumalai Chemicals Ltd

Pros

• Consistent operation margin of 15% yoy.

• High ROA, close to 18%

• Debt to equity ratio of 0.16

• Reinvestment of profits to expand the market

Cons

• The capex plans are supposed to be debt funded.

• Overseas market is getting stagnanet

• Market is running volatile which could impact its sales.

Verdict: Good buy at ~177, target price 200.