20-Aug-2019Research Reports

17-Aug-19

KNR Constructions (BUY): Revenue disappoints but beat on margins; growth visibility intact

KNR Constructions’ (KNRC) Q1FY20 revenue dropped 17% YoY to Rs 4.6bn, >20% under estimates due to deferred AD award.

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16-Aug-19

Sadbhav Engineering (BUY): Execution challenges cloud FY20 outlook

Sadbhav Engineering’s (SADE) Q1FY20 revenue underperformed estimates, dropping 8% YoY due to tardy execution of HAM projects and delayed AD award for newer contracts.

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16-Aug-19

Ashoka Buildcon (BUY): Revenue miss; execution to scale up from H2FY20

Ashoka Buildcon’s (ASBL) Q1FY20 revenue grew 28% YoY to Rs 8.8bn, below our estimate of Rs 11.8bn due to delayed execution of power T&D/ railways projects.

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15-Aug-19

Greenply Industries (BUY): Margin expansion continues

Greenply Industries (GIL) reported consolidated Q1FY20 revenue growth of 13%, with India plywood operations growing at 6.2% YoY.

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14-Aug-19

Indraprastha Gas (BUY): Volumes robust, margins improve

Indraprastha Gas’ (IGL) Q1FY20 earnings were in line at Rs 2.2bn (+24% YoY).

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14-Aug-19

PNC Infratech (BUY): Execution par excellence; momentum to pick up further in H2

PNC Infratech’s (PNCL) Q1FY20 revenue surpassed expectations, scaling a new high of Rs 13.2bn (+86% YoY) fuelled by strong execution.

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14-Aug-19

Century Plyboards (BUY): MDF and laminate segments shore up growth

Century Plyboards’ (CPBI) standalone revenue growth for Q1FY20 was better than estimates at 6.8% YoY, aided by the MDF (+32%) and laminate (+17%) divisions.

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14-Aug-19

Container Corp of India (ADD): Annual report analysis: Well-rounded FY19 – raise to ADD

Container Corp (CCRI) posted a well-rounded performance in FY19.

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14-Aug-19

ONGC (BUY): Valuations pricing in the worst case

ONGC’s Q1FY20 earnings outperformed at Rs 59bn (–4% YoY).

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13-Aug-19

Sun Pharma (REDUCE): Adj. EBITDA miss, US base to normalise; retain REDUCE

Q1 EBITDA was in line despite a gross margin miss which was partly set off by low R&D expense (5% of sales vs. 8% guidance).

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13-Aug-19

HG Infra Engineering (BUY): Revenue miss; expect steady growth momentum ahead

HG Infra’s (HGIEL) Q1FY20 revenue grew 17% YoY to Rs 5.3bn but was below estimates due to delayed AD award for the Hapur-Moradabad project.

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13-Aug-19

Finolex Industries (ADD): Profitability drained by lower PVC-EDC delta

Finolex Industries (FNXP) reported above-expected Q1FY20 revenue growth of 14% YoY, aided by 15%/18% higher volumes in PVC resin/PVC pipes.

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13-Aug-19

Bharat Petroleum Corp (SELL): Macro concerns weigh heavy

BPCL’s Q1FY20 EBITDA at Rs 21.8bn (–44% YoY) outperformed estimates on higher GRMs (US$ 2.8/bbl after US$ 0.8/bbl inventory loss).

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13-Aug-19

Alkem Labs (BUY): Good Q1, guiding for better margins ahead; retain BUY

Alkem Labs reported a good Q1FY20 with an 11% EBITDA beat owing to gross margin expansion and better cost control.

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12-Aug-19

Oil India (BUY): Low costs drive earnings, but volumes remain a drag

Oil India’s (OINL) Q1 FY20 earnings at Rs 6.3bn (-11% YoY) was above estimates.

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12-Aug-19

Reliance Industries (BUY): AGM highlights – Deleveraging via stake sale in cash cows

Chairman Mukesh Ambani’s FY19 AGM speech envisages: (a) deleveraging by FY21 through stake sales, (b) enhancing shareholder value, and (c) expanding RJio’s value proposition.

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12-Aug-19

GAIL (BUY): Pricing in the worst case

GAIL’s Q1FY20 PAT/EBITDA surpassed estimates at Rs 13bn/Rs 23bn (+2.2%/flat YoY).

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12-Aug-19

Mphasis (BUY): Analyst meet takeaways: Staying agile amid structural demand shift

Mphasis (MPHL), at its analyst meet, highlighted its constant strategic adaption to stay aligned with the changing technology demands of clients.

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10-Aug-19

Divi's Labs (REDUCE): Lacklustre Q1, normalcy expected from Q3

Q1FY20 saw a lackluster with a revenue/EBITDA miss of 2%/5% led by continued consumption of high-cost RM and a weak product mix (lower CS contribution at 41%, flat QoQ).

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09-Aug-19

Mahanagar Gas (ADD): Margins surge, volumes drag; raise to ADD on positive risk-reward

Mahanagar Gas’s (MAHGL) Q1FY20 PAT was well above estimates at Rs 1.7bn (+20% YoY).

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09-Aug-19

Allcargo Logistics (BUY): In-line quarter

Allcargo Logistics (AGLL) reported an in-line topline of Rs 18bn, up 12% YoY.

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09-Aug-19

Tech Mahindra (REDUCE): Subsidiary troubles afresh; cut to REDUCE

Tech Mahindra (TECHM) subsidiary Pininfarina (PINF) was a harbinger of growth for the company over the past two years, bringing in 16% of incremental FY19 revenue.

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09-Aug-19

Hexaware Technologies (ADD): Strong margin showing

Hexaware’s (HEXW) operating margins outperformed at 14.6% (+90bps QoQ vs. –30bps est.), taking the Jun’19 quarter ahead of expectations.

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08-Aug-19

Lupin (ADD): Adj. EBITDA in line; US base trend to improve

Q1 core EBITDA was in line at Rs 6bn, normalised for a temporary drop in SG&A spends and Ranexa FTF.

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08-Aug-19

HIGH CONVICTION | Petronet LNG (BUY): Margins normalise, volumes improve

Petronet LNG (PLNG) reported a mixed Q1FY20 due to the new Ind-AS 116 lease standards, which led to higher EBITDA (Rs 10.3bn, +10% YoY) but lower PAT (Rs 5.6bn, –4.5% YoY).

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08-Aug-19

Aurobindo Pharma (BUY): Good beat; progress on facility issues & Sandoz are key catalysts

Q1FY20 revenue/EBITDA beat estimates by 8%/10% spurred by strong US sales at US$ 384mn and 260bps gross margin expansion YoY and QoQ.

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08-Aug-19

HCL Technologies (BUY): Organic growth trending up; upgrade to BUY on cheap valuations

A strong revenue beat (+4.2% QoQ CC vs. +1.8% est.) but below-expected margins rounded off an in-line operating performance from HCL Tech (HCLT) for the Jun’19 quarter.

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08-Aug-19

Hindustan Petroleum Corp (SELL): Near-term outlook remains bleak

HPCL’s Q1FY20 earnings at Rs 8.1bn (–52% YoY) came in below estimates, marred by low GRMs (US$ 0.75/bbl, after US$ 2.6/bbl inventory loss).

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07-Aug-19

Cipla (BUY): Core EBITDA miss; recovery ahead

Q1 was subdued and had multiple moving parts: (1) reduction in India GRx business by Rs 2bn, (2) Rs 1.6bn sales deferral in India Rx + EM market, (3) gSensipar sales worth US$40mn, and (4) weak ROW commentary.

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07-Aug-19

Mayur Uniquoters (BUY): Auto demand slump, margin contraction mar Q1

Mayur Uniquoters’ (MUNI) Q1FY20 standalone revenue decreased 9% YoY as a sharp slowdown in footwear and auto sector demand saw volumes drop 9%.

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07-Aug-19

Pidilite Industries (SELL): In-line quarter; cut to SELL on rich valuations

Pidilite Industries (PIDI) reported in-line consolidated Q1FY20 revenue growth of 10% YoY, aided by a 6% rise in consumer & bazaar (CBP) volumes.

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06-Aug-19

Dilip Buildcon (BUY): Delayed appointed dates continue to hurt revenue

Dilip Buildcon (DBL) reported below-expected Q1FY20 revenue at Rs 23bn, down 6% YoY, due to execution constraints from delays in award of appointed dates for HAM projects.

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05-Aug-19

Somany Ceramics (BUY): Decent volume growth but lower margins

Somany Ceramics (SOMC) reported in-line consolidated revenue growth of 3.9% YoY in Q1FY20 to Rs 3.95bn, as tile volumes grew 8% YoY.

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05-Aug-19

Laurus Labs (BUY): High opex offsets formulation positives; expect recovery in Q2

Q1FY20 operational results were in line despite strong gross margin expansion.

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05-Aug-19

V-Mart Retail (REDUCE): Margins continue to disappoint

V-Mart Retail’s (VMART) Q1FY20 revenue growth was in line at 26% YoY, with SSSg of 5.2%.

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03-Aug-19

eClerx Services (SELL): No sign of respite on margins; cut to SELL

eClerx (ECLX) underperformed sharply in the Jun’19 quarter as operating margins continued to sink well below estimates.

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03-Aug-19

Gujarat State Petronet (BUY): Volume surge, low LNG prices buoy outlook – upgrade to BUY

Gujarat State Petronet’s (GUJS) Q1FY20 earnings outperformed estimates at Rs 2.1bn (+43% YoY), bolstered by higher volumes of 38mmscmd (+5% YoY).

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02-Aug-19

Mahindra Logistics (BUY): Disappointing quarter on all fronts

Subdued user industries exacted a heavy toll on Mahindra Logistics’ (MLL) Q1FY20 performance.

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02-Aug-19

Astral Poly Technik (REDUCE): Piping segment aided by Rex acquisition spurs growth

Astral Poly Technik (ASTRA) reported marginally better consolidated revenue growth than expected at 27% YoY in Q1FY20.

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02-Aug-19

State Bank of India (BUY): Dismal quarter

State Bank of India’s (SBIN) Q1FY20 PAT of Rs 23bn was in line with our estimate.

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02-Aug-19

Cera Sanitaryware (BUY): Insipid quarter

Cera Sanitaryware (CRS) reported subpar Q1FY20 standalone revenue of Rs 2.7bn, down 4.8% YoY, with the sanitaryware segment declining 12.7%.

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01-Aug-19

Future Supply Chain Solutions (BUY): Big earnings miss

Future Supply Chain (FSCSL) sharply underperformed our Q1FY20 profit estimates.

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01-Aug-19

ICICI Bank (BUY): 20F filing highlights

ICICI Bank’s (ICICIBC) early delinquency indicators, as disclosed in its 20F filing for FY19, suggest corporate loan stress has been largely dealt with.

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01-Aug-19

Container Corp of India (REDUCE): Volume concerns overshadow otherwise decent quarter

Container Corp (CCRI) reported a healthy operating performance in Q1FY20.

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01-Aug-19

Indian Oil Corp (BUY): GRMs disappoint

IOCL’s Q1FY20 EBITDA at Rs 76.6bn (ex-inventory gains) was marginally below estimates.

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31-Jul-19

TCI Express (BUY): Macro slowdown derails growth

The subdued macro climate weighed on TCI Express’ (TCIEXP) Q1FY20 results.

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31-Jul-19

Tech Mahindra (ADD): Miss on all counts

Tech Mahindra (TECHM) posted a disappointing Q1FY20 as (1) revenue contracted in all verticals except ‘others’, (2) top 5/10/20 client performance flagged, (3) EBIT margins shrank 390bps QoQ, (4) attrition failed to cool off, (5) DSO rose due to high unbilled revenues, and (6) cash generation slumped.

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30-Jul-19

Axis Bank (BUY): Asset quality disappoints

Axis Bank’s (AXSB) Q1FY20 PAT at Rs 13.7bn fell short of our/consensus estimates on high provisions.

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30-Jul-19

Gujarat Gas (BUY): Volumes and margins surge

Gujarat Gas (GUJGA) reported Q1FY20 earnings well above estimates at Rs 2.3bn (+93% YoY, +2x QoQ), backed by strong volumes of 9.15mmscmd (+42% YoY) and expanded EBITDA margins of Rs 5.6/scm (+32% YoY, +29% QoQ).

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30-Jul-19

Greenlam Industries (NOT RATED): Prominent player in India’s laminate market

We attended Greenlam Industries’ (GRLM) analyst meet and outline management’s outlook on growth across business segments.

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30-Jul-19

Transport Corp of India (BUY): Slowdown weighs on topline growth; margin expansion stands out

Transport Corp (TRPC) reported a below-estimated operating performance in Q1FY20 amidst challenging macros.

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29-Jul-19

Dr Reddy's Labs (ADD): Adj. EBITDA in line; upgrade to ADD on reasonable valuations

Q1 reported 18% EBITDA miss impacted by one-offs in gross margins (PSAI & inventory write-offs in US totaling US$20mn, in my view), while adj. EBITDA was in line.

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29-Jul-19

Supreme Industries (ADD): Good volume growth but margins underperform

Supreme Industries (SI) reported below-expected Q1FY20 revenue growth of 6.8% YoY despite a healthy 13.5% rise in volumes.

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29-Jul-19

Reliance Industries (ADD): Diversification now bearing fruit

Reliance Industries’ (RIL) FY19 Annual Report spells out its vision across its diversified businesses.

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27-Jul-19

ICICI Bank (BUY): Stable on most fronts

ICICI Bank’s (ICICIBC) Q1FY20 PAT at Rs 19.1bn was above our estimate due to below-expected provisions.

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27-Jul-19

Mphasis (BUY): In-line operating performance

Mphasis’ (MPHL) Q1FY20 revenue at US$ 297mn met expectations, marked by balanced growth in both direct and DXC/HP channels.

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26-Jul-19

Persistent Systems (REDUCE): Results first cut – Lacklustre quarter

Persistent Systems (PSYS) reported another quarter of subpar operating performance as both revenue and operating margins missed estimates in Q1FY20.

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25-Jul-19

NCC (NOT RATED): Management call takeaways – A tough FY20; better times ahead

We spoke with Y D Murthy, Executive Vice President – Finance, of NCC Ltd (NJCC) for an update on Andhra Pradesh work orders.

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24-Jul-19

NIIT Technologies (BUY): Healthy Q1 despite pockets of weakness in BFS

Adjusted for GIS divestment, NIIT Tech (NITEC) reported organic revenue growth of 4% QoQ CC and EBITDA margins of 16.9% in Q1FY20, marking a better-than-expected operating performance.

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23-Jul-19

Kajaria Ceramics (BUY): Modest Q1; upgrade to BUY on reasonable valuations

Kajaria Ceramics (KJC) posted below-expected Q1FY20 revenue growth of 6.5% YoY, with volumes up 9.6% but realisations down 3.8%.

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21-Jul-19

Reliance Industries (ADD): Concerns on cyclicals

Reliance Industries’ (RIL) Q1 FY20 EBITDA marginally beat estimates at Rs 213bn (+3% YoY, +2.3% QoQ)…

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20-Jul-19

HDFC Bank (ADD): Mixed quarter

HDFC Bank’s (HDFCB) Q1FY20 PAT at Rs 56bn (+21% YoY) was largely in line with our estimates…

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20-Jul-19

L&T Infotech (BUY): Client-specific challenges to hamper growth in FY20

L&T Infotech (LTI) reported a sedate Q1FY20 with 1% QoQ CC revenue growth and 16% EBIT margins…

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18-Jul-19

Wipro (SELL): Another disappointing quarter

Wipro (WPRO) reported another tepid quarter as a wind-down of large projects in the retail & CPG ver

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18-Jul-19

Mindtree (SELL): Painful transition begins; downgrade to SELL

Mindtree’s (MTCL) Q1FY20 reported EBIT missed estimates by 46% as both revenue and operating margins

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17-Jul-19

Yes Bank (SELL): Yet another miss on asset quality

Yes Bank’s (YES) Q1FY20 PAT at Rs 1.1bn beat our/consensus estimates on higher non-interest income a

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