06-Jun-2020Research Reports

05-Jun-20

State Bank of India (ADD): Core operating profitability remains weak – cut to ADD

SBIN’s Q4 PAT at Rs 36bn disappointed on weak NII growth and high provisions.

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05-Jun-20

Alkem Labs (BUY): Buoyant earnings outlook to fuel rerating

Alkem Labs reported in-line Q4 EBITDA; margins were a tad miss at 14.8% as the negative gross margin was offset by lower staff cost.

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05-Jun-20

Gujarat Gas (BUY): Robust margin outlook

Gujarat Gas’ (GUJGA) Q4FY20 earnings beat estimates, surging 115% YoY to Rs 2.5bn.

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04-Jun-20

Transport Corp of India (BUY): Difficult Q4; growth recovery a few quarters away

Transport Corp’s (TRPC) Q4FY20 consolidated revenue/EBITDA declined 10%/ 26% YoY, in line with our estimates.

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04-Jun-20

Aurobindo Pharma (BUY): Strong Q4; upside risk to EPS can support higher multiple

Revenue/EBITDA beat estimates by 2%/9% led by strong sales (ex-US) and gross margin expansion.

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04-Jun-20

Lupin (ADD): Lupin/Mylan win approval for biosimilar Enbrel in Europe

Lupin (LPC) and partner Mylan have secured centralised marketing approval for Nepexto (biosimilar Etanercept) for European markets.

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04-Jun-20

Bharat Petroleum Corp (BUY): Inventory losses sink earnings

BPCL reported a Q4FY20 EBITDA loss of Rs 6.2bn owing to inventory/forex losses of Rs 49bn/Rs 121bn.

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01-Jun-20

V-Mart Retail (REDUCE): Lockdown exacts severe toll on business

V-Mart Retail (VMART) reported a below-expected Q4FY20 as revenue declined 3% YoY to Rs3.3bn and SSSg nosedived 18% due to the lockdown.

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29-May-20

Lupin (ADD): In-line quarter; broader FY21 outlook intact

Lupin’s (LPC) EBITDA was in line at Rs 5.3bn (+22% QoQ) despite a slight miss on sales.

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28-May-20

TVS Motor (REDUCE): Solid performance; valuations cap upside

TVS Motor’s (TVSL) adj. Q4 EBITDA beat estimates by ~20% led by a healthy jump in ASP and impressive opex control.

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28-May-20

Federal Bank (ADD): Expect profitability to come under pressure; cut to ADD

Federal Bank’s (FB) Q4 PAT declined 21% YoY to Rs 3bn given higher credit-, Covid- and wage-related provisions, partly cushioned by treasury gains.

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27-May-20

Sun Pharma (REDUCE): Q4 miss; near-term outlook subdued – REDUCE

Sun Pharma (SUNP) posted a 6% EBITDA miss on in-line sales, driven by higher staff cost (+7% QoQ), lower gross margins (–115bps QoQ) and lower R&D cost (6.4% of sales).

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26-May-20

Astral Poly Technik (REDUCE): Volumes hit due to lockdown, maintain REDUCE

Astral Poly Technik’s (ASTRA) Q4FY20 performance was disappointing, with consolidated revenue dropping 19% YoY and pipe volumes down 13%.

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23-May-20

DCB Bank (ADD): Continued overhang on asset quality

DCB Bank’s (DCBB) Q4FY20 PAT at Rs 0.7bn declined 29% YoY on slower NII growth (8%) and a spike in provisions.

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23-May-20

IDFC First Bank (ADD): Retailisation trend continues

IDFC First Bank’s (IDFCFB) Q4FY20 PAT at Rs 715mn was driven by 40% YoY growth in NII.

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23-May-20

UPL (BUY): Margin miss but resilient outlook in tough environment

UPL’s Q4 EBITDA was below our estimate at Rs 19bn as stronger revenue growth was offset by gross margin pressure and higher forex loss.

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22-May-20

Supreme Industries (ADD): Lockdown erodes volumes; cut to ADD on limited upside

Supreme Industries (SI) reported below-estimated Q4FY20 revenues (–7% YoY) due to a 9% lockdown-led volume decline.

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21-May-20

Mahindra Logistics (BUY): Insipid quarter all around

Mahindra Logistics’ (MLL) Q4FY20 print was weak on account of the national lockdown and auto industry slowdown.

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21-May-20

Bajaj Auto (ADD): Strong operational performance

Bajaj Auto’s (BJAUT) Q4 operating performance was well ahead of estimates.

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21-May-20

L&T Infotech (BUY): Impressive show despite challenging times

L&T Infotech (LTI) reported 4.7% QoQ CC revenue growth in Q4FY20, well ahead of estimates.

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20-May-20

Ajanta Pharma (BUY): Near-term growth concerns but demand outlook intact

Ajanta Pharma (AJP) posted strong Q4 revenue/EBITDA growth of 32%/31% YoY to Rs 6.8bn/Rs 1.7bn.

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20-May-20

Dr Reddy's Labs (ADD): EBITDA miss; risk-reward fair – TP raised to Rs 4,210

Q4 EBITDA of Rs 9.4bn (–8% QoQ) was a miss despite a strong beat in the US and Europe, cost control, and net forex benefits.

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16-May-20

Cipla (BUY): Adj. EBITDA in line; multiple stock catalysts – BUY

Cipla reported in-line revenue but a 14% EBITDA miss in Q4.

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15-May-20

Nippon Life India Asset Management (SELL): Levers for opex control have peaked

Nippon Life Asset Management (NAM) reported a Rs 360bn sequential AUM decline in Q4FY20, largely due to the mark-to-market effect.

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15-May-20

Manappuram Finance (BUY): Gold finance on steady wicket, MFI to face Covid-19 overhang

Manappuram Finance’s (MGFL) gold AUM surged 31% YoY to Rs 170bn in Q4FY20.

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14-May-20

Mphasis (SELL): HP-DXC business losing steam; downgrade to SELL

Mphasis (MPHL) reported a satisfactory Q4 on the back of (1) 1.5% QoQ/11.1% YoY CC revenue growth, (2) stable 16.3% EBIT margins, and (3) healthy deal wins.

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13-May-20

Maruti Suzuki (BUY): Near-team outlook hazy; maintain faith on solid franchise

Maruti’s (MSIL) Q4FY20 operating performance missed estimates due to a sequential dip in ASP and negative operating leverage.

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13-May-20

Kotak Mahindra Bank (BUY): Liability franchise remains strong

Kotak Bank’s (KMB) Q4FY20 PAT at Rs 12.7bn (–10% YoY) missed estimates as the bank made Covid-related general provisions of Rs 6.5bn.

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11-May-20

TCI Express (BUY): Solid fundamentals to help navigate turbulent waters

TCI Express (TCIEXP) reported a weak Q4FY20 as the economic lockdown since mid-March disrupted operations.

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10-May-20

HDFC Asset Management Company (BUY): In-line results, FY21-FY22 equity flows to be subdued

HDFC Asset Management (HDFCAMC) reported a ~Rs 500bn sequential AUM decline in Q4FY20, largely due to the mark-to-market effect.

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09-May-20

ICICI Bank (BUY): Upfronting provisions to brace for impact

ICICI Bank’s (ICICIBC) Q4FY20 PAT at Rs 12bn (+26% YoY) missed estimates as the bank made Covid-related provisions of Rs 27bn.

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08-May-20

Dr Reddy's Labs (ADD): EIR for Srikakulam (CTO-VI) API unit

Dr Reddy's Labs (DRRD) announced that it has received an EIR (establishment inspection report) from the USFDA for its Srikakulam (CTO-VI) API facility.

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08-May-20

Reliance Industries (ADD): RJio spearheads deleveraging

Reliance Industries' (RIL) deleveraging initiatives have accelerated in the last three weeks, with ~Rs 610bn raised from a ~13.5% stake sale in RJio.

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07-May-20

HCL Technologies (BUY): First among equals

HCL Tech (HCLT) ended FY20 on a strong note with 0.8% QoQ CC and 13.4% YoY CC topline growth and five-year-high EBIT margins of 20.9% in Q4FY20.

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07-May-20

RBL Bank (ADD): Operational beat but Covid-19 poses risks

RBL Bank’s (RBK) Q4FY20 PAT at Rs 1.1bn (–54% YoY) was ahead of estimates due to an NII beat.

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06-May-20

Persistent Systems (REDUCE): IP business spoils the show yet again

Persistent Systems (PSYS) reported a weak Q4FY20 as revenue declined 1.8% QoQ to US$ 127mn due to a 24% drop in IP revenue.

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06-May-20

NIIT Technologies (ADD): Good quarter with confident commentary – upgrade to ADD

NIIT Tech (NITEC) reported a strong Q4FY20 with 3% QoQ CC revenue growth and resilient operating margins.

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02-May-20

Reliance Industries (ADD): RJio, Retail drive earnings; cut to ADD on limited upside

Key highlights from Reliance Industries’ (RIL) Q4FY20 results.

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01-May-20

Tech Mahindra (REDUCE): Miss on all counts

Tech Mahindra (TECHM) posted a 4.3% QoQ dollar revenue decline and 200bps EBITDA margin contraction to round off a disappointing Q4FY20 performance.

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30-Apr-20

Laurus Labs (BUY): Good beat; firm FY21 outlook – target raised to Rs 630

Laurus Labs reported a strong operational beat of 8%/20%/41% on sales/EBITDA/ PBT in Q4.

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30-Apr-20

Hexaware Technologies (ADD): Cloudy near-term outlook; cut to ADD

Challenged related to Covid-19 marred Hexaware’s (HEXW) Q1CY20 operating performance (revenue down 1.1% QoQ CC) and are expected to worsen in Q2, making for a gloomy near-term outlook.

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28-Apr-20

Axis Bank (BUY): Fortifying the balance sheet

Axis Bank (AXSB) reported a loss of ~Rs 14bn in Q4FY20 as it built added provisions of Rs 35bn towards Covid-19.

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27-Apr-20

IndusInd Bank (BUY): No respite from asset quality challenges

IndusInd Bank’s (IIB) Q4FY20 PAT at Rs 3bn (–16% YoY) was ahead of estimates due to an NII beat.

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25-Apr-20

Mindtree (REDUCE): Upbeat quarter; upgrade a notch to REDUCE

Mindtree (MTCL) reported an upbeat Q4 operating performance with 1.9% QoQ CC growth and swift margin recovery.

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23-Apr-20

Alembic Pharma (BUY): Consecutive beat – we raise FY21/FY22 EPS by 11-17%

Alembic Pharma (ALPM) reported a 31% EBITDA beat in Q4.

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22-Apr-20

Reliance Industries (BUY): RJio creates India profile for Facebook

Reliance Industries’ (RIL) deleveraging plans appears back on track with a 9.99% stake sale in RJio to Facebook for US$ 5.8bn (valuing RJio at ~US$ 61bn).

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22-Apr-20

Kotak Mahindra Bank (BUY): Quality franchise; capital raising adds buffer – reiterate BUY

Kotak Mahindra Bank (KMB) has received board approval to raise ~Rs 75bn in capital which will bolster CAR by ~300bps, reduce promoter stake to 29% and build buffers against contingencies.

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21-Apr-20

Infosys (ADD): Subpar operating performance, annual guidance suspended

Infosys (INFO) reported a lacklustre Q4FY20 operating performance marked by a miss on both revenue and margins.

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18-Apr-20

HDFC Bank (BUY): Turning to wholesale for growth

HDFC Bank’s (HDFCB) Q4FY20 PAT at Rs 69bn (+18% YoY) was lower estimates as the bank created Rs 15.5bn Covid-related contingent provisions.

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17-Apr-20

VRL Logistics (BUY): Correction offers attractive entry point

Covid-19 is likely to have a sharper near-term impact on VRL Logistics (VRLL) vs. logistics peers due to its high operating leverage and focus on the hard-hit trucking space.

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17-Apr-20

Container Corp of India (ADD): Trade slowdown, ICD land purchase to remain overhangs

The unprecedented trade slowdown triggered by Covid-19 clouds Container Corp’s (CCRI) near-term prospects and has fuelled a 4% YoY drop in Q4FY20 volumes.

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17-Apr-20

Tata Consultancy Services (ADD): Prelude to darker Q1FY21

Despite only a partial impact in the last two weeks of March, Covid-19 fuelled 1.2% QoQ CC revenue contraction at TCS in Q4FY20, missing consensus estimates.

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16-Apr-20

Wipro (SELL): Weak quarter; guidance and dividends suspended

Wipro (WPRO) reported a subpar Q4FY20 with a miss on both revenue and operating margins.

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15-Apr-20

Petronet LNG (BUY): Resilient earnings from long-term contracts

Our recent interaction with the Petronet LNG (PLNG) management deepens confidence in our core investment thesis.

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15-Apr-20

Transport Corp of India (BUY): Fundamentals intact, valuations compelling

Covid-19 has severely disrupted Transport Corp’s (TRPC) operations across verticals.

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13-Apr-20

Gujarat Gas (BUY): Resilient in the face of near-term headwinds

Our recent interaction with the Gujarat Gas (GUJGA) management reinforces our core investment thesis.

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08-Apr-20

Bajaj Finance (BUY): Covid-19 to hurt loan growth; recovery only in H2FY22

We expect the Covid-19 crisis to disrupt credit growth in FY21 as lenders turn cautious and customers pare discretionary spends.

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03-Apr-20

Muthoot Finance (BUY): Return of pricing power

We delved into the operating metrics of three large gold financiers – Muthoot Finance (MUTH), Manappuram Finance (MGFL) and Muthoot Fincorp (MFIN) – and found that MUTH has a wider reach and is a better paymaster, aiding higher productivity.

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02-Apr-20

Aurobindo Pharma (BUY): Sandoz deal called off; upgrade to BUY

Aurobindo Pharma (ARBP) announced that the deal to buy Sandoz’s US generic oral solids and dermatology business has been mutually called off.

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01-Apr-20

ONGC (BUY): Riding the storm

Key takeaways from our recent interaction with the ONGC management.

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31-Mar-20

Hero MotoCorp (BUY): Valuations attractive – upgrade to BUY

At Hero MotoCorp’s (HMCL) investor call today, senior management stated that proactive steps have been taken to ensure business continuity.

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31-Mar-20

IndusInd Bank (BUY): Concerns priced in

IndusInd Bank (IIB) hosted an analyst call to address the implications of Covid-19 on its portfolio.

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30-Mar-20

Sun Pharma (REDUCE): USFDA classifies Halol site as OAI

The USFDA has classified Sun Pharma's (SUNP) key formulation site Halol under OAI (official action indicated).

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27-Mar-20

TCI Express (BUY): Equipped to weather the Covid-19 storm; upgrade to BUY

Our recent interaction with the TCI Express (TCIEXP) management indicates severe pressure on near-term operational performance stemming from the Covid-19 outbreak.

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24-Mar-20

Cera Sanitaryware (BUY): Demand environment anaemic but margins steady

We present key takeaways from our meeting with the management of Cera Sanitaryware (CRS).

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16-Mar-20

Bajaj Finance (BUY): Management meet takeaways – Business prospects robust

We present key takeaways from our meeting with the Bajaj Finance (BAF) management.

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16-Mar-20

[Initiation] UPL (BUY): Deleveraging to aid potential rerating – initiate with BUY

We explore UPL’s stock potential under three scenarios and find a convincing case for +100%/200% returns in our base/bull case over the next three years.

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12-Mar-20

[Initiation] Info Edge (SELL): On a slippery slope – initiate with SELL

We begin coverage on Info Edge (INFOE) with SELL and a Mar’21 TP of Rs 2,080.

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02-Mar-20

Balrampur Chini (NOT RATED): Higher ethanol sales to support profitability

Key takeaways from our recent meeting with the management of Balrampur Chini Mills (BRCM).

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28-Feb-20

IndusInd Bank (BUY): Leadership overhang recedes

As per a press release on the exchanges, IndusInd Bank (IIB) has received RBI approval to appoint Sumant Kathpalia as MD & CEO for three years beginning 24 March.

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22-Feb-20

Aurobindo Pharma (ADD): USFDA error on Unit IV to erase recent stock gains

Aurobindo Pharma (ARBP) has received further communication from the USFDA on its Unit IV injectable plant stating that the inspection is still open and under review.

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20-Feb-20

Hero MotoCorp (REDUCE): Visit to HMCL’s R&D centre – key takeaways

We visited Hero Moto’s (HMCL) R&D centre and attended its investor meet.

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20-Feb-20

Greenply Industries (BUY): Demand slows but margins resilient

Key takeaways from our roadshow with the management of Greenply Industries (GIL).

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19-Feb-20

Aurobindo Pharma (ADD): EIR received for Unit IV – a key sentiment booster

Aurobindo Pharma (ARBP) has received an establishment inspection report (EIR) from the USFDA for its Unit IV injectable plant, with the observations classified as voluntary action indicated (VAI).

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18-Feb-20

Greenpanel Industries (BUY): MDF traction to continue

Key takeaways from our roadshow with the management of Greenpanel Industries (GREENP).

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17-Feb-20

Ashok Leyland (SELL): Weak Q3FY20; recovery still some time away

Ashok Leyland’s (AL) Q3FY20 EBITDA missed estimates by 14% as weak demand and BS-IV inventory de-stocking hurt gross margins.

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15-Feb-20

Sadbhav Engineering (BUY): Q3 disappoints as tight liquidity impedes execution

Sadbhav Engineering’s (SADE) Q3FY20 standalone revenue plunged 52% YoY as prolonged monsoons and tight liquidity slowed execution.

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15-Feb-20

KNR Constructions (BUY): Healthy quarter; execution to pick up from Q4

KNR Constructions’ (KNRC) Q3FY20 core revenue ex-arbitral awards grew 23% YoY to Rs 5.5bn and core EBITDA margin beat estimates at 22% (+170bps YoY).

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14-Feb-20

Muthoot Finance (BUY): Rate increase, better resource mobilisation buoy margins

Muthoot Finance’s (MUTH) gold AUM increased 19% YoY to Rs 377bn in Q3FY20 due to better resource mobilisation.

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14-Feb-20

ONGC (BUY): Earnings miss, pricing in the worst

ONGC’s Q3FY20 earnings underperformed at Rs 41bn (–50% YoY).

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14-Feb-20

Allcargo Logistics (ADD): Soft quarter; downgrade to ADD on limited upside

Allcargo Logistics’ (AGLL) Q3FY20 consolidated revenue fell 1% YoY marred by a decline across segments.

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14-Feb-20

Mayur Uniquoters (BUY): Slow quarter but demand outlook improving

Mayur Uniquoters’ (MUNI) Q3FY20 standalone revenue declined 23% YoY (volume down 21% YoY) due to continued slowdown in user industries (footwear, auto).

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14-Feb-20

Bharat Petroleum Corp (REDUCE): Pricing in stake sale

BPCL’s Q3FY20 EBITDA at Rs 27bn (up 3.6x YoY) outperformed estimates on higher GRMs (US$ 2.2/bbl ex-inventory).

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13-Feb-20

Gujarat State Petronet (BUY): EBITDA underperforms; volume outlook improving

Gujarat State Petronet’s (GUJS) Q3FY20 EBITDA underperformed estimates at Rs 3.8bn (+7.6% YoY) due to lower volumes (37mmscmd, –5.7% QoQ).

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13-Feb-20

Finolex Industries (BUY): Better PVC-EDC delta aids profitability – upgrade to BUY

Finolex Industries’ (FNXP) revenue declined 8% YoY, with an 11% drop in PVC pipe and resin volumes.

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12-Feb-20

Astral Poly Technik (REDUCE): Pipe segment continues to lead growth

Astral Poly Technik’s (ASTRA) Q3FY20 consolidated revenue grew 5.4% YoY, aided by pipe segment volume growth of 15% (~6.5% ex-Rex).

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12-Feb-20

Greenply Industries (BUY): Gabon operations disappoint

Greenply Industries’ (GIL) consolidated Q3FY20 revenue slipped 1% YoY, coming in below estimates.

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11-Feb-20

Ashoka Buildcon (BUY): Disappointing quarter; execution to ramp up from FY21

Hampered by the prolonged monsoons and delayed AD in HAM projects, Ashoka Buildcon’s (ASBL) Q3FY20 revenue declined 8% YoY.

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11-Feb-20

Hexaware Technologies (BUY): Client-specific challenges receding; upgrade to BUY

An above-expected furlough impact and challenges at a large secondary-mortgage client marred revenue performance in Q4CY19.

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11-Feb-20

Mahindra & Mahindra (ADD): Healthy core performance; subsidiaries a drag again

M&M’s (MM) Q3 EBITDA at Rs 17.9bn (+5% YoY) beat estimates by ~5% on a strong margin uptick led by cost control and a richer auto model mix.

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11-Feb-20

Petronet LNG (BUY): Margins improve, volumes underperform

Petronet LNG’s (PLNG) Q3FY20 EBITDA surged to Rs 11bn (+31% YoY) on account of higher marketing margins on spot LNG.

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11-Feb-20

Somany Ceramics (BUY): Revenues in line, margins lower

Somany Ceramics (SOMC) reported in-line consolidated revenue growth of 2.5% YoY to Rs 4.4bn in Q3FY20, aided by a 4% uptick in tile volumes.

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11-Feb-20

Oil India (BUY): Volumes remain a drag

Oil India’s (OINL) Q3FY20 earnings disappointed at Rs 4bn (–67% YoY).

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11-Feb-20

Dilip Buildcon (BUY): Lacklustre quarter; order inflows key to watch

Dilip Buildcon’s (DBL) Q3FY20 standalone revenue fell 4% YoY to Rs 23.8bn (Rs 25bn est.) due to the extended monsoon and delayed appointed dates.

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10-Feb-20

GAIL (BUY): Operationally robust; demerger uncertainty priced in

GAIL’s Q3FY20 PAT was in line at Rs 10.2bn (–40% YoY).

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10-Feb-20

Container Corp of India (ADD): Weak quarter; DFC trigger awaited

Container Corp’s (CCRI IN) standalone Q3FY20 revenue declined 3% YoY on lower volumes and realisations.

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10-Feb-20

Kajaria Ceramics (ADD): All round miss

Kajaria Ceramics (KJC) posted a below-expected Q3FY20 with revenue down 2% YoY due to flat volumes (+0.5% YoY) and lower realisations (–4.1% YoY).

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10-Feb-20

VRL Logistics (BUY): Soft quarter as macro challenges continue

VRL Logistics’ (VRLL) Q3FY20 revenue grew at a tepid 1% YoY, with the goods/people transport segments growing at +3%/–8% YoY as the macro slowdown continued to take a toll.

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10-Feb-20

Future Supply Chain Solutions (REDUCE): Limited growth visibility; cut to REDUCE

Future Supply Chain (FSCSL) reported yet another weak quarter as standalone Q3FY20 revenue/EBITDA declined 5%/15% YoY (adj. for Ind-AS 116), causing a 59% drop in adj. PAT.

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07-Feb-20

Mahanagar Gas (SELL): Volumes drag and margins peak out

Mahanagar Gas’s (MAHGL) Q3FY20 PAT was in line at Rs 1.86bn (+25.4% YoY).

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07-Feb-20

Alkem Labs (BUY): Solid beat – moving to street-high TP of Rs 2,870

Alkem Labs reported a 24% EBITDA beat in Q3 driven by better gross margins (product mix, soft RM prices).

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07-Feb-20

Mphasis (ADD): Cloudy DXC/HP visibility overshadows strong operating beat

Mphasis (MPHL) reported a beat on both revenue and margins in Q3FY20.

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07-Feb-20

Aurobindo Pharma (ADD): Q3 in line; facility resolution, Sandoz key stock catalysts

Aurobindo’s (ARBP) operating results were in line, with above-expected US sales of US$ 418mn (volume-led) but subdued gross margins at 56.5% (down 120bps QoQ) due to a higher ARV mix.

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07-Feb-20

Hero MotoCorp (REDUCE): Decent Q3 but outlook challenging

Hero Moto (HMCL) posted an operational beat in Q3FY20 led by healthy gross margins.

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07-Feb-20

Eicher Motors (BUY): Steady operational performance

Eicher Motors’ (EIM) consolidated Q3FY20 EBITDA at Rs 5.9bn (–14% YoY) was in line with estimates.

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07-Feb-20

Sun Pharma (REDUCE): Q3 a tad lower – US (ex-Taro) ramp-up subdued; REDUCE

Sun Pharma (SUNP) reported a 6% EBITDA miss, largely driven by higher other expense (up 8% QoQ) and despite better gross margins (up 110bps QoQ) & lower R&D (6.4% of sales).

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07-Feb-20

PNC Infratech (BUY): Strong execution; order inflows holds key for growth beyond FY21

PNC Infratech’s (PNCL) Q3FY20 revenue grew 68% YoY.

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06-Feb-20

Lupin (ADD): Weak result; healthy FY21 outlook

Lupin (LPC) reported a 40% miss on Q3 EBITDA while one-offs dented PAT (incl. US$ 222mn Gavis impairment).

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06-Feb-20

Greenpanel Industries (BUY): Strong performance marred by forex losses

Greenpanel Industries’ (GREENP) Q3FY20 consolidated revenue grew 46% YoY aided by an 85%/37% increase in the plywood/MDF segments.

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06-Feb-20

Indraprastha Gas (BUY): Margins expand, volume growth stable

Indraprastha Gas’ (IGL) Q3FY20 EBITDA was in line at Rs 3.9bn (+23% YoY, Rs 6.4/scm).

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06-Feb-20

V-Mart Retail (REDUCE): Margins surprise positively

V-Mart Retail (VMART) reported below-expected Q3FY20 revenue growth of 21% YoY to Rs 5.6bn, with SSSg of 1%.

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06-Feb-20

Cera Sanitaryware (BUY): Q3 marginally better than estimates

Cera Sanitaryware (CRS) reported a dull Q3FY20 with standalone revenue growth of 1% YoY to Rs 3.2bn, as the sanitaryware segment declined ~11%.

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06-Feb-20

Gujarat Gas (BUY): Volumes and margins robust

Gujarat Gas (GUJGA) reported Q3FY20 earnings above estimates at Rs 1.96bn (+26% YoY).

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05-Feb-20

Divi's Labs (ADD): Earnings miss but expect recovery from Q4

Divi’s Labs (DIVI) reported a Q3FY20 revenue/EBITDA miss of 8-10% as multiple regulatory inspections restricted full production.

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05-Feb-20

Hindustan Petroleum Corp (BUY): Earnings muted but largely priced in

HPCL’s Q3FY20 PAT was below estimates due to subdued marketing business earnings of Rs 22bn (+12% YoY ex-inventory).

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05-Feb-20

Mahindra Logistics (BUY): Auto weakness persists, non-auto on steady footing

Mahindra Logistics’ (MLL) Q3FY20 consolidated revenue/EBITDA declined 7%/20% YoY (adj. for Ind-AS 116), marginally below estimates.

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05-Feb-20

Cipla (BUY): EBITDA a tad lower but India/US deliver a good beat; retain BUY

Cipla’s adj. EBITDA missed estimates by 3% due to lower gross margins which saw a 120bps one-off impact.

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05-Feb-20

TVS Motor (REDUCE): Margins resilient; outlook challenging

TVS Motor’s (TVSL) Q3 EBITDA beat estimates by ~11% led by resilient margins at 8.8% (+70bps YoY, flat QoQ), despite a sharp 17% YoY drop in volumes.

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04-Feb-20

Century Plyboards (BUY): In-line quarter

Century Plyboards’ (CPBI) standalone Q3FY20 revenue growth was in line with estimates at 2.9% YoY, aided by 9.5% growth in the MDF segment.

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31-Jan-20

Tech Mahindra (REDUCE): Good quarter buoyed by communications vertical

Tech Mahindra’s (TECHM) swift ramp-up of the AT&T deal aided a Q3 revenue beat (up 4.3% QoQ CC to US$ 1.4bn vs. 3% estimated).

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31-Jan-20

State Bank of India (BUY): Recoveries aid earnings growth

State Bank of India’s (SBIN) Q3FY20 PAT at Rs 56bn was driven by strong NII growth and lower provisions, but a one-time DTA charge shaved Rs 13bn off earnings.

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31-Jan-20

Indian Oil Corp (BUY): Uncertainties abound but look priced in

IOCL’s Q3FY20 EBITDA at Rs 66bn (+84% YoY) was well above estimates.

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31-Jan-20

Laurus Labs (BUY): Another good beat – TP raised to Rs 510

Laurus Labs reported a consecutive beat with best-ever Q3 EBITDA, led by strong operating leverage in formulations and higher gross margins.

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31-Jan-20

Tata Motors (ADD): Underwhelming Q3 print; outlook better on cost control efforts

JLR’s Q3 EBIT margin at 3.3% was below estimates largely due to forex headwinds.

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31-Jan-20

eClerx Services (SELL): Good show but repeat act unlikely – downgrade to SELL

A mix of favourable yet transient dynamics saw eClerx (ECLX) staging a surprising operational beat in Q3FY20 (revenue up 3% QoQ, EBIT margin up 590bps).

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30-Jan-20

Bajaj Auto (ADD): Strong operational performance

Bajaj Auto’s (BJAUT) Q3 EBITDA rose 18% YoY led by 17.9% margins (seven-quarter high) and beat estimates by ~10%.

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30-Jan-20

Pidilite Industries (SELL): Margins surprise positively, CBP volumes disappoint

Pidilite Industries (PIDI) reported below-expected Q3FY20 consolidated revenue growth of 4% YoY – CBP volumes grew just 2% while industrial volumes rose 13% YoY.

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30-Jan-20

Transport Corp of India (BUY): Topline disappoints, margin resilient

Transport Corp’s (TRPC) consolidated Q3FY20 revenue (–0.6% YoY) was a miss due to lower SCS (–6.8%) and seaways (–1.3%) revenue, while freight grew at a decent clip (+4.5%).

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30-Jan-20

Kotak Mahindra Bank (BUY): Promoter holding dispute resolved at last

KMB has received in-principle approval from RBI to cap its promoters' voting rights in the bank from ~30% currently to 20% of paid-up voting equity share capital (PUVESC) until Mar'20, and thereafter reduce this to 15%.

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30-Jan-20

NIIT Technologies (SELL): Risk-reward unfavourable; cut to SELL

NIIT Tech’s (NITEC) Q3FY20 performance was mixed with a miss on operating margins (–20bps QoQ to 18.1%) but healthy deal wins.

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30-Jan-20

Bajaj Finance (BUY): Healthy performance in secular slowdown

Bajaj Finance (BAF) reported healthy 35% YoY growth in AUM in Q3FY20.

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29-Jan-20

HG Infra Engineering (BUY): Subdued execution; order inflow and AD award hold key

HG Infra’s (HGIEL) Q3FY20 earnings (+18% YoY) were below estimates due to softer revenue and higher interest cost and taxes.

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29-Jan-20

Manappuram Finance (BUY): Steady growth in gold and microfinance businesses

Manappuram Finance’s (MGFL) gold AUM surged 30% YoY to Rs 162bn in Q3FY20.

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29-Jan-20

Maruti Suzuki (BUY): Operational miss largely led by transient impact

Maruti’s (MSIL) Q3FY20 operating performance missed estimates, largely due to the exaggerated impact of discounts and higher fixed cost appropriation.

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28-Jan-20

TCI Express (ADD): Growth lacklustre but margin beat yields in-line EBITDA

TCI Express (TCIEXP) reported an in-line operating performance in Q3FY20 as solid gross margin expansion (+310bps YoY) compensated for muted topline growth (+2%).

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27-Jan-20

Dr Reddy's Labs (ADD): Margin beat to sustain; TP raised to Rs 3,350

Strong cost control and operating leverage led to a Q3 EBITDA beat of 5%.

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25-Jan-20

ICICI Bank (BUY): Core profitability remains strong

ICICI Bank’s (ICICIBC) Q3FY20 PAT at Rs 41bn was driven by 24% YoY growth in NII and lower provisions.

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24-Jan-20

Supreme Industries (ADD): Margins surprise positively, volumes disappoint

Supreme Industries (SI) reported below-estimated Q3FY20 revenue (–2.6% YoY) owing to flat volumes.

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24-Jan-20

[Initiation] Bajaj Finance (BUY): BAF 2.0 – Revamped growth engine; initiate with BUY

We initiate coverage on Bajaj Finance (BAF) with BUY and a Mar’21 TP of Rs 5,000.

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22-Jan-20

Axis Bank (BUY): Stressed book still elevated

Axis Bank’s (AXSB) Q3FY20 PAT at ~Rs 18bn missed estimates due to above-expected provisions.

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22-Jan-20

Alembic Pharma (BUY): Good beat – we raise EPS estimates by 5-7%

Alembic Pharma (ALPM) reported a 15% EBITDA beat in Q3 driven by a sales beat and stable opex despite an additional expense hit from Aleor-Derma unit commercialisation.

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20-Jan-20

Kotak Mahindra Bank (BUY): Growth slips while credit cost spikes

Kotak Mahindra Bank’s (KMB) Q3FY20 PAT at Rs 16bn was below estimates due to weak NII growth and high provisions.

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19-Jan-20

Reliance Industries (BUY): RJio and Retail drive earnings; cyclicals struggle

Key highlights from Reliance Industries’ (RIL) Q3 financials: (a) Cyclicals under-performed on low GRMs (US$9.2/bbl, Vs US$10.7 ests); and tepid petchem margins (US$100/MT EBITDA, -23% QoQ)); (b) higher than expected earnings from retail – Rs27 bn (+62% YoY, 6% margins) and (c) lower than estimates earnings from RJIO – Rs58 bn (+9.6% YoY).

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18-Jan-20

HDFC Bank (BUY): Better retail asset quality trends

HDFC Bank’s (HDFCB) Q3FY20 PAT at Rs 74bn (+33% YoY) was ahead of our estimates largely due to strong non-interest income.

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18-Jan-20

HCL Technologies (BUY): IP business drives robust Q3

HCL Tech (HCLT) reported an above-expected operating performance in Q3FY20, supported by a modest beat on both revenue and margins.

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18-Jan-20

Tata Consultancy Services (ADD): Margins resilient

TCS reported a mixed Q3FY20 as revenue missed the mark for the third quarter in a row but EBIT margins staged a strong beat.

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16-Jan-20

Greenpanel Industries (BUY): Firmer pricing, MDF plant ramp-up to boost margins

Our interactions with dealers and industry participants suggest that demand for MDF remains strong.

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15-Jan-20

L&T Infotech (BUY): Stellar show

L&T Infotech (LTI) reported 8.3% QoQ CC revenue growth in Q3FY20, well ahead of estimates.

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15-Jan-20

Wipro (SELL): Tepid performance; soft outlook

Wipro (WPRO) reported an in-line operating performance in Q3FY20 with 1.8% QoQ CC revenue growth and 18.4% IT services EBIT margins.

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14-Jan-20

Mindtree (SELL): Impressive margin show but growth grounds weak ahead

Mindtree’s (MTCL) Q3FY20 operating performance was buoyed by operating margin beat as revenue fell short on expectations.

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14-Jan-20

IndusInd Bank (BUY): Asset quality amiss

IndusInd Bank’s (IIB) Q3FY20 PAT grew 33% YoY to Rs 13bn, largely due to 34% YoY growth in NII and 5bps QoQ NIM expansion to 4.15%.

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11-Jan-20

Infosys (ADD): Commentary lack new growth impetus

Infosys (INFO)’s Q3FY20 operating performance fell tad short on expectations led by operating margin miss (EBIT margins at 21.9% V/s our est. of 22.4%).

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01-Jan-20

Reliance Industries (BUY): RJio and Retail neutralise uncertainty over cyclicals

In this report, we present key highlights from our recent meeting with Reliance Industries (RIL).

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31-Dec-19

Gujarat State Petronet (BUY): Power demand could be a dark horse

Our interaction with the Gujarat State Petronet (GSPL) management reinforces our core investment thesis.

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30-Dec-19

Gujarat Gas (BUY): Improving outlook on volumes

At our recent meeting, GUJGA’s management assured robust outlook on volumes driven by (a) implementation of anti-pollution measures by the state government (new CNG state buses), and (b) relatively low LNG prices.

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24-Dec-19

HG Infra Engineering (BUY): Gurgaon-Sohna site visit indicates steady execution progress

We visited HG Infra’s (HGIEL) Gurgaon-Sohna NHAI HAM project site and also met CMD Harendra Singh.

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23-Dec-19

Cera Sanitaryware (BUY): Near-term demand outlook remains challenging

We recently hosted investor meetings with the Cera Sanitaryware (CRS) management.

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19-Dec-19

Transport Corp of India (BUY): NDR takeaways

We hosted the senior management of Transport Corp of India (TRPC) for investor meetings.

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18-Dec-19

Tech Mahindra (REDUCE): Analyst meet takeaways

We attended Tech Mahindra’s (TECHM) recent analyst meet and present the key takeaways.

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12-Dec-19

Allcargo Logistics (BUY): Gati acquisition – deriving synergies an uphill task

Allcargo Logistics (AGLL) recently announced the acquisition of a 45% controlling stake in Gati (GTIC) for ~Rs 4.2bn (13.6x TTM H1FY20 EV/EBITDA).

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11-Dec-19

L&T Infotech (BUY): Analyst meet takeaways

L&T Infotech’s (LTI) analyst meet reassured us that its strong sales engine and efficient delivery will continue to drive profitable growth.

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09-Dec-19

[INITIATION] Alembic Pharma (BUY): Entering into new multi-year earnings cycle – initiate with BUY

Alembic Pharma (ALPM) has underperformed the midcap and Sensex indices since 2015 due to subdued earnings. This cycle should reverse in the next 3-4 years.

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06-Dec-19

[INITIATION] Kotak Mahindra Bank (BUY): In a league of its own – initiate with BUY

Kotak Mahindra Bank (KMB) has forged a powerful banking franchise backed by a formidable liability profile.

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28-Nov-19

Laurus Labs (BUY): NDR takeaways

We recently hosted the management of Laurus Labs with investors. Overall, we found management's tone confident yet realistic.

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28-Nov-19

[INITIATION] VRL Logistics (BUY): Robust model, formidable moats – initiate with BUY

We initiate coverage on VRL Logistics (VRLL) with BUY and a Mar’21 TP of Rs 330, set at 22x FY22E P/E.

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27-Nov-19

Greenply Industries (BUY): Upbeat margin guidance

We attended Greenply Industries’ (GIL) analyst meet.

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18-Nov-19

Sadbhav Engineering (BUY): Execution challenges continue to cloud growth

Sadbhav Engineering’s (SADE) Q2FY20 revenue missed estimates, dropping 18% YoY as the heavy monsoons hindered execution at key EPC projects and as AD award was delayed for newer contracts.

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17-Nov-19

PNC Infratech (BUY): Strong quarter, momentum to continue

PNC Infratech’s (PNCL) Q2FY20 core revenue ex-arbitral awards grew 92% YoY.

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17-Nov-19

KNR Constructions (BUY): Strong quarter; revenue guidance cut on project delays

KNR Constructions’ (KNRC) Q2FY20 core revenue ex-arbitral awards grew 26% YoY and core EBITDA margin beat estimates at 20.6% (+60bps YoY).

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16-Nov-19

Ashoka Buildcon (BUY): Subdued execution, growth to pick up in H2

Ashoka Buildcon’s (ASBL) Q2FY20 execution remained muted due to the extended monsoons, with revenue growth at 7.6% YoY.

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15-Nov-19

Mphasis (ADD): Cut to ADD on HP/DXC channel uncertainty

Mphasis’ (MPHL) Q2FY20 revenue at US$ 306mn met estimates, marked by strong traction in the direct channel business.

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15-Nov-19

Dilip Buildcon (BUY): Subdued execution drives guidance cut

Dilip Buildcon’s (DBL) Q2FY20 standalone revenue was in line at Rs 18.1bn (+11% YoY), but PAT (–31% YoY) missed estimates on higher depreciation and taxes.

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15-Nov-19

ONGC (BUY): Low costs drive profitability

ONGC’s Q2FY20 earnings outperformed at Rs 62.6bn (–24% YoY).

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14-Nov-19

Pidilite Industries (SELL): Volumes and margins disappoint

Pidilite Industries (PIDI) reported below-expected consolidated Q2FY20 revenue growth of 2.8% YoY as CBP volumes dipped 0.9%, offsetting industrial volume growth of 12.6%.

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14-Nov-19

Cera Sanitaryware (BUY): Weak product mix crimps margins

Cera Sanitaryware (CRS) reported tepid Q2FY20 standalone revenue of Rs 3.3bn (–1.1% YoY), with the sanitaryware segment contracting 9% YoY.

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13-Nov-19

Muthoot Finance (BUY): Demand uptick to offset lower liability mobilisation

Muthoot Finance’s (MUTH) gold AUM increased 11% YoY to Rs 357bn in Q2FY20, the slowest growth in the last five quarters as the company calibrated LTV to 68%.

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13-Nov-19

Mayur Uniquoters (BUY): Demand slowdown deepens

Mayur Uniquoters’ (MUNI) Q2FY20 standalone revenue declined 16% YoY amid a continued slowdown in user industries (footwear, auto) where volumes dropped 20% YoY.

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13-Nov-19

Finolex Industries (ADD): Lower PVC-EDC delta hurts profitability

Finolex Industries (FNXP) reported above-expected Q2FY20 revenue growth of 6.3% YoY, aided by a 6% increase in PVC pipe volumes while PVC resins declined 4.7%.

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13-Nov-19

Aurobindo Pharma (ADD): Q2 beat; facility resolution, Sandoz key stock triggers

Sequential improvement in US sales to US$ 405mn and stable gross margins led to a modest beat overall in Q2.

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12-Nov-19

Mahanagar Gas (SELL): Volumes drag and margins peak out – downgrade to SELL

Mahanagar Gas’s (MAHGL) Q2FY20 adj. PAT underperformed estimates at Rs 2.1bn (+57% YoY).

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12-Nov-19

Lupin (ADD): Kyowa divestment – good value unlocking

Lupin (LPC) has signed a definitive agreement with financial investor Unison to sell its entire 99.8% stake in Kyowa for an EV of US$ 520mn.

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11-Nov-19

HG Infra Engineering (BUY): Solid quarter; growth momentum to pick up in H2

HG Infra’s (HGIEL) Q2FY20 PAT grew ahead of estimates at 57% YoY, led by gross margin expansion, softer interest cost and a lower tax rate.

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11-Nov-19

Somany Ceramics (BUY): Margins surprise positively

Somany Ceramics (SOMC) reported in-line consolidated revenue growth of 7.9% YoY in Q2FY20 to Rs 4.2bn, aided by a 4.8% uptick in tile volumes.

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11-Nov-19

Alkem Labs (BUY): Good Q2, tax cut drives EPS upgrade; retain BUY

Alkem reported an 11% EBITDA beat in Q2 driven by a sales beat and better cost control.

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11-Nov-19

Allcargo Logistics (BUY): CFS, P&E segments drag down profitability

Allcargo Logistics’ (AGLL) Q2FY20 performance was below our estimates.

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11-Nov-19

Century Plyboards (BUY): Laminates and MDF perform well; plywood disappoints

Century Plyboards’ (CPBI) standalone revenue growth for Q2FY20 was in line with estimates at 4.4% YoY, aided by the MDF (+27%) and laminate (+22%) segments.

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10-Nov-19

Oil India (BUY): Operationally strong

Oil India’s (OINL) Q2 FY20 earnings at Rs 6.2bn (-27% YoY) was below estimates.

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09-Nov-19

Gujarat State Petronet (BUY): EBITDA above estimates; volume outlook improving

Gujarat State Petronet’s (GUJS) Q2FY20 EBITDA outperformed estimates at Rs 4.4bn (–15% YoY), backed by higher margins of Rs 1.2/scm (Rs 1.1/scm estimated).

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09-Nov-19

GAIL (BUY): Trading earnings slump

GAIL’s Q2FY20 PAT was well below estimates at Rs 10.6bn (–42% YoY).

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08-Nov-19

Greenply Industries (BUY): Modest quarter, margin expansion continues

Greenply Industries (GIL) reported consolidated Q2FY20 revenue growth of 5% YoY.

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08-Nov-19

eClerx Services (REDUCE): Cost control saves margins; no respite from structural challenges

eClerx (ECLX) reported a margin beat for Q2FY20 (EBIT margin at 16.9%), albeit backed largely by marketing cuts, while dollar revenue was a miss (–1.6% QoQ).

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07-Nov-19

Sun Pharma (REDUCE): Headline beat on low R&D, US base ex-Taro weaker; REDUCE

Sun Pharma (SUNP) delivered a 10% EBITDA beat largely driven by lower R&D (6% of sales vs. 8-9% guided).

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07-Nov-19

Greenpanel Industries (BUY): Healthy quarter; better capacity utilisation to fuel growth

Greenpanel Industries (GREENP), the newly demerged entity of Greenply Industries, reported consolidated revenue growth of 44% YoY in Q2FY20 aided by a 53%/40% upswing in the plywood/MDF segments.

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07-Nov-19

Indraprastha Gas (BUY): Margins expand, volume growth robust

Indraprastha Gas’ (IGL) Q2FY20 EBITDA was above estimates at Rs 3.9bn (+27.5% YoY; Rs 6.5/scm).

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07-Nov-19

Manappuram Finance (BUY): Healthy growth in gold and microfinance businesses

Manappuram Finance’s (MGFL) gold AUM surged 20% YoY to Rs 152bn in Q2FY20, clocking the highest growth rate in the past 11 quarters.

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07-Nov-19

Lupin (ADD): Q2 a slight miss; US to improve in H2

Core Q2 EBITDA, normalised for licensing income, was a 5% miss at Rs 6bn (flat QoQ).

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06-Nov-19

Cipla (BUY): All-round beat – India drives 6-11% EPS upgrade; retain BUY

Cipla reported a strong quarter with an EBITDA beat of 30%/11% on our/ consensus estimates due to a surprise recovery in India sales (up 29% QoQ), 100bps sequential improvement in core margins, and better growth across EM/ EU/US.

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06-Nov-19

Transport Corp of India (BUY): Growth subdued across segments

Transport Corp (TRPC) saw muted consolidated revenue/EBITDA growth of 1%/2% YoY in Q2FY20 as the weak demand climate weighed on segmental performance.

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06-Nov-19

Tech Mahindra (REDUCE): Enterprise business stage surprising growth

Tech Mahindra reported better than expected Q2FY20 operating performance led by beat on both revenues and operating margins.

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05-Nov-19

Mahindra Logistics (BUY): Auto weakness mask strength in other verticals

Mahindra Logistics (MLL) reported below expected performance in Q2FY20, with consolidated revenue/EBITDA (adj. for IND-AS 116) declining 8%/28% YoY.

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05-Nov-19

Divi's Labs (ADD): Good Q2 beat; FY20 margin guidance cut is negative

Overall Revenue/EBITDA were 13% ahead of our estimates but largely in-line with consensus.

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05-Nov-19

Gujarat Gas (BUY): Margins decline, robust volumes

Gujarat Gas (GUJGA) reported Q2 FY20 earnings below estimates at Rs 2.2bn (Adjusted for Rs 2.9 bn tax write-back; +5.3x YoY).

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05-Nov-19

TCI Express (ADD): In line quarter; downgrade to ADD on limited upside

TCI Express (TCIEXP) posted in line operating performance in Q2, with revenue/EBITDA growth of 9%13% YoY.

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04-Nov-19

V-Mart Retail (REDUCE): Higher expenses drive operating loss

V-Mart Retail (VMART) reported below-expected revenue growth of 20% YoY to Rs 3.1bn in Q2FY20, with SSSg of 1% (volumes –8%).

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03-Nov-19

Future Supply Chain Solutions (BUY): Dull Q2 as demand slowdown deepens

Future Supply Chain’s (FSCSL) Q2FY20 standalone earnings nosedived 64% YoY (ex. Ind-AS 116), dented by lower EBITDA (–13% YoY) and higher depreciation (+61%) & interest costs (+332%).

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01-Nov-19

Yes Bank (SELL): No respite from asset quality woes

Yes Bank (YES) reported a Rs 6bn loss due to a one-time DTA impact of Rs 7.1bn.

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01-Nov-19

Dr Reddy's Labs (ADD): Multiple one-offs – US to recover from Q3

Q2 headline EBITDA of Rs 14bn (Rs 8.5bn est.) had multiple one-time impacts: (1) licensing income of Rs 6.84bn net of cost, (2) sales hit in the US ($10mn-15mn in our view) from Ranitidine recall & logistic issues, and (3) Rs 1bn in SG&A. Adj. EBITDA was a 3% miss.

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01-Nov-19

Laurus Labs (BUY): All-round beat – formulations turn EBITDA positive; BUY

Laurus Labs reported its best-ever EBITDA in Q2FY20 with a good topline beat, led by strong operating leverage in the formulation business and gross margin expansion.

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01-Nov-19

Indian Oil Corp (BUY): GRMs remain a drag, other segments outperform

IOCL’s Q2FY20 EBITDA at Rs 36bn (–47% YoY) was well below estimates.

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31-Oct-19

Container Corp of India (ADD): Decent operating performance in tough demand climate

Container Corp (CCRI) reported an in-line operating performance in Q2FY20.

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30-Oct-19

Petronet LNG (BUY): Volumes and margins surge

Petronet LNG’s (PLNG) Q2FY20 EBITDA surged to Rs 11.6bn (+31% YoY), as volumes rose to 250tbtu (+15% YoY, +11% QoQ).

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25-Oct-19

Supreme Industries (ADD): Healthy volume growth

Supreme Industries’ (SI) Q2FY20 revenue grew 2.5% YoY (adj. for property sale last year), coming in slightly below estimates despite a healthy 12% YoY rise in volumes.

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25-Oct-19

Astral Poly Technik (REDUCE): Operational performance in line

Astral Poly Technik’s (ASTRA) consolidated revenue grew 8.5% YoY in Q2FY20, aided by piping segment volume growth of 27% (~17% ex-Rex Poly).

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25-Oct-19

State Bank of India (BUY): Slippages abate but stressed book remains high

State Bank of India’s (SBIN) Q2FY20 PAT of Rs 30bn beat consensus estimates due to 17% YoY NII growth.

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24-Oct-19

HCL Technologies (BUY): Organic growth trending higher

HCL Tech (HCLT) reported an above-expected operating performance in Q2FY20 supported by a margin beat (EBIT margin up 290bps QoQ to 20%).

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24-Oct-19

NIIT Technologies (ADD): Solid Q2; cut to ADD on full valuations

NIIT Tech (NITEC) reported organic revenue growth of 4.1% QoQ CC and EBITDA margins of 18.3% in Q2FY20, marking a better-than-expected operating performance.

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24-Oct-19

Hexaware Technologies (ADD): In-line operating show; near-term outlook cloudy

Hexaware (HEXW) reported in-line dollar revenue growth of 11.7% QoQ and EBIT margins of 13.9% in Q3CY19.

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24-Oct-19

Kajaria Ceramics (ADD): Tepid quarter; upsides capped – downgrade to ADD

Kajaria Ceramics (KJC) posted a below-expected Q2FY20 with revenue down 1.5% YoY (volumes +1.1%, realisations –3.5%).

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21-Oct-19

Reliance Industries (BUY): Cyclicals a mixed bag, RJio and Retail surge ahead

Reliance Industries’ (RIL) Q2FY20 EBITDA marginally beat estimates at Rs 221bn (+5% YoY, +4% QoQ).

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18-Oct-19

Ather Energy (NOT LISTED): Key call takeaways

We hosted a call with Karan Punjabi, Head of Finance at electric scooter manufacturer Ather Energy (Ather).

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18-Oct-19

L&T Infotech (BUY): On course for a rebound

L&T Infotech (LTI) did better than expected in Q2FY20, posting 2.4% QoQ CC revenue growth despite client-specific challenges.

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16-Oct-19

Mindtree (SELL): High attrition, hazy outlook worrying – reiterate SELL

Mindtree’s (MTCL) Q2FY20 operating performance was in line (3.2% QoQ CC revenue growth), with a broad-based uptick across verticals.

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16-Oct-19

Wipro (REDUCE): Puzzling margin beat; unlikely to hold up

Wipro (WPRO) reported in-line revenue growth of 1.1% QoQ CC, but a surprising beat on operating margins (18.1%, +10bps QoQ vs. –60bps est.) that materialised despite the impact of compensation revision.

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12-Oct-19

Infosys (ADD): Guidance signals industrywide growth headwinds

Infosys (INFO) met expectations with 3.3% QoQ CC revenue growth and 21.7% EBIT margins, delivering a better performance than TCS in Q2FY20.

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12-Oct-19

Cipla (BUY): Goa 483s – no data integrity concerns but many procedurals; BUY

Cipla has received 12 observation from the USFDA’s inspection of its Goa facility over 16-27 Sep.

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11-Oct-19

TCS (ADD): Disappoints for second consecutive quarter

TCS reported a dull Q2FY20 operating performance with both revenues (+1.6% QoQ CC) and EBIT margins (flat at 24%) disappointing for the second straight quarter.

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10-Oct-19

IndusInd Bank (BUY): Asset quality blip, loan growth drops

IndusInd Bank’s (IIB) Q2FY20 PAT grew 52% YoY to Rs 14bn, largely due to 32% YoY growth in NII and 5bps QoQ NIM expansion to 4.1%.

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08-Oct-19

Aurobindo Pharma (ADD): Form 483 for Unit 7: Warning letter risk largely priced in

ARBP’s stock corrected 20% on 7th Oct following 483 details on Unit 7 (oral formulation unit).

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27-Sep-19

Greenply Industries (BUY): India business steady; Gabon to lend growth impetus

In our recent meeting, Greenply Industries’ (GIL) management outlined the following targets for FY20: (1) India plywood business to grow 8-10% despite a challenging market, (2) India operating margins to expand 100-150bps to 10.5-11%, and (3) Gabon operations to ramp up substantially to ~Rs 2bn in revenues (+60% YoY) with ~18% (+200bps) operating margins.

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26-Sep-19

Mahindra Logistics (BUY): Meeting takeaways: Reiterates growth plan; technology to the fore

We interacted with Mahindra Logistics' (MLL) CEO designate Rampraveen Swaminathan who will assume the role of CEO from Oct 1.

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23-Sep-19

Petronet LNG (BUY): Concerns seem overstated on investments in Tellurian

We hosted an investor call with the Petronet LNG (PLNG) management to discuss its proposed investment in Tellurian Inc's Driftwood LNG project.

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20-Sep-19

Future Supply Chain Solutions (BUY): Minority stake sale to strategic investor

Future Supply Chain (FSCSL) today announced plans to sell a 22% minority stake to Nippon Express, a Japanese logistics company.

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18-Sep-19

Cera Sanitaryware (BUY): Margins resilient despite soft demand

We recently met the management of Cera Sanitaryware (CRS) and present our key key takeaways.

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11-Sep-19

ONGC (BUY): Oil production targets ambitious

In a recent meeting, ONGC’s management highlighted (a) its unchanged domestic gas production guidance at ~3mmscmd/year over FY20-FY25, and (b) expectations of sustained long-term growth in OVL production through added stake in the Vankor fields and start-up of the Mozambique project (by 2024-25).

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09-Sep-19

HIGH CONVICTION | Petronet LNG (BUY): Earnings outlook upbeat

Our recent meeting with the Petronet LNG (PLNG) management has reinforced our core investment thesis.

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07-Sep-19

Dilip Buildcon (BUY): Successful stake sale to Cube; another deal in the offing

Dilip Buildcon (DBL) has entered into a SPA with Cube Highways (Cube) for 100% stake sale in five under-construction NHAI HAM projects for a pre-tax equity consideration of ~Rs 7bn, against a total equity requirement of Rs 5.7bn.

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23-Aug-19

Mindtree (SELL): CEO interaction takeaways: Navigating rough waters

We attended a call hosted by the CEO and senior management at Mindtree (MTCL) to discuss the company’s growth strategy post takeover by L&T.

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21-Aug-19

Blue Dart Express (NOT RATED): Buffeted by headwinds

We recently met the management of Blue Dart Express (BDE) and present the key takeaways in this report.

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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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