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This is the second post in our quarterly update series for Q4 FY19.

In this post, we’re sharing the latest updates of the stocks from our watchlist. Please don’t treat this as a buy recommendation. We find these businesses interesting and we may build position (or buy more of those that are already in our portfolio) in them in future. The purpose of this post is to bring clarity in our understanding of the businesses we are tracking.  We make our notes on the quarterly results and conference calls. Putting it up here makes it easier for us to refer them at a future date.

You can see the earlier updates here.

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Please click on the read more button for more details on each stock.

Eicher Motors

Eicher Motors Limited has come out with a subdued numbers on volumes of motorcycles sold for Q4FY19. EBITDa margins have also seen a sequential fall from 32% in Q1FY19 to 28% in Q4FY19. Management guides for a better performance for the next year.  Eicher Motors Limited is an Indian manufacturer of motorcycles and commercial vehicles. Eicher is the parent company of Royal Enfield, a manufacturer of middleweight motorcycles. In addition to motorcycles business, Eicher has a joint venture with Sweden’s AB Volvo – Volvo Eicher Commercial Vehicles Limited (VECV).

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Hester Bio Science Ltd

Hester Bio Science Ltd declared a very good set of quarterly and annual numbers. Forward guidance from management is also very optimistic. Hester Biosciences Limited (HBL) is a publicly traded Indian company headquartered in Ahmedabad, Gujarat. Hester is an animal and poultry vaccines manufacturing company with plants situated in Gujarat and Nepal. The company is India’s second largest poultry vaccine manufacturer currently with a 30% market share of the poultry vaccines market in the country.

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Shriram Transport Finance Ltd

Shriram Transport Finance Company (STFC) had an average quarterly performance for Q4FY19. While the asset quality improved, the disbursements in quarter were skewed towards the fag end leading to lower yields. Net Interest margin, however, declined because of higher cash balance maintained given the tight liquidity position in the sector. Shriram Transport Finance is India’s largest player in the commercial vehicle finance sector. It was established in 1979 and has more than 1348 urban and 885 rural centres. It is also one of the largest NBFC in India with specialisation in financing pre-owned trucks for small truck operators.

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Tata Elxsi

Tata Elxsi provides product design and engineering services to the consumer electronics, communications & transportation industries and systems integration and support services for enterprise customers. It also provides digital content creation for media and entertainment industry.  They had muted quarter due to slowdown in auto industries. Going forward, the management guides for reducing their dependence in the automobile industry

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