Research Reports

20-Dec-24

Accenture (NOT RATED): Raises FY25 growth guidance but no big read through

Organic growth raised by 100bps to 2.5% on better 1QFY25 (AUG YE) which in turn was driven by strong large order wins in FY24

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17-Dec-24

Greenpanel Industries (HOLD): MDF – Weak near-term outlook; positive medium-term outlook

MDF industry margin to remain under pressure in the near future on supply-side pressure and steep rise in timber prices

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16-Dec-24

Lupin (BUY): Reduction in in-licence portfolio to increase margins

LPC’s domestic region in-licence portfolio fell from 15% in Q2FY24 to 12% in Q2FY25 and is expected to reduce further to ~10% by FY26

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13-Dec-24

Cera Sanitaryware (BUY): Management meet key takeaways

The bathware industry slowed down from Q3FY24, but the company expects gradual pick-up in demand from H2FY25 onwards

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12-Dec-24

Dalmia Bharat (SELL): Excess supply to impact performance; downgrade to SELL

DALBHARA’s presence in East and South India may be hit by excess supply; we factor in 1% price hikes in FY26/FY27 after a dent in FY25

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12-Dec-24

Godrej Consumer Products (HOLD): Headwinds – Inflation, innovation from competition, and weather

Extreme weather patterns impacted sales of Household Insecticides. Soap volumes were soft on destocking due to price rises

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11-Dec-24

Ajanta Pharma (SELL): No incremental triggers; valuation expensive

At our virtual conference AJP said it is not looking to venture into newer therapies in India in the next 1-2 years due to hefty valuations

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02-Dec-24

Hindustan Unilever (BUY): Premiumisation may be ahead of its time.

HUVR’s outlook of stable demand trends for FY25 appears conservative as the building blocks for rural demand remain favourable

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18-Nov-24

Orient Cement (COVERAGE DROP): Await growth strategy from acquirer - drop active coverage

Q2 reported revenue declined 25%/22% YoY/QoQ to ~Rs 5.44bn, driven by double-digit dip in volume. Realisation fell YoY

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18-Nov-24

Century Plyboards (HOLD): Weak Q2FY25 on sharp margin pressure

CPBI’s topline beat; EBITDA missed our estimates sharply on margin pressure across segments except plywood

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15-Nov-24

Hero Motocorp (HOLD): Strong festive momentum; sustainability is the key

Q2 revenue grew by ~11% YoY to Rs 104.6bn, driven by a mix of steady volume gain of ~7% YoY and realisation gain of 3% YoY

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15-Nov-24

Crompton Greaves (BUY): In-line Q2, margins to sustain due to prompt pricing actions

Decent Q2 topline from strong B2B lighting and pump sales, and gross margin expansion of 140bps driven by strategic pricing actions

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15-Nov-24

IRM Energy (NOT RATED): Management meet takeaways post Q2FY25 results

Q2 EBITDA decline on margin contraction amid continuing high opex; impact of APM deallocation covered with NWG gas and price hikes

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14-Nov-24

Eicher Motors (HOLD): Steady show; launch pipeline healthy; key growth driver

Q2 revenue increased ~7% YoY (flat QoQ) to Rs 42.1bn, driven by realisation gain of 8% YoY to Rs 184.5k/motorcycle (small dip QoQ)

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14-Nov-24

Alkem Labs (BUY): In-line Q2, margins expected to sustain due to cost efficiencies

Q2 reported in-line numbers, where sales/EBITDA were 4% below our estimates. However, PAT was 1% above our estimate

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14-Nov-24

Hindware Home Innovation (BUY): Another dismal quarter; muted guidance for H2FY25

Dull Q2 on weak performance across segments due to cost inflation pressure in a weak demand environment and sales force rationalisation

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13-Nov-24

Cera Sanitaryware (BUY): Q2 demand slow, management guides for stronger H2FY25

CRS posted strong faucet revenue growth (+23% YoY) in a weak demand environment

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12-Nov-24

Britannia Industries (BUY): Inflation offsets being put in place just in time

Compared to Bloomberg consensus, sales were 2% lower, EBITDA 12% lower as margin came in 200bps below expectations. Volumes +8.5%

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12-Nov-24

Shree Cement (HOLD): Relatively better placed to face tough challenges; retain HOLD

Realisation dent drags revenue growth by a steep 19%/23% in Q2FY25, partially offset by relatively lower volume decline of 7% YoY

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12-Nov-24

The Ramco Cements (SELL): No respite from challenges; maintain SELL

Q2 revenue declined ~13% due to tepid volume growth and pricing pressures affecting realisations (down by 10%/5% YoY/QoQ)

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12-Nov-24

Star Cement (HOLD): Clinker unit stabilisation issues impact performance in Q2

Revenue rose 10% backed by healthy 9% volume gains and realisations remained flat YoY/QoQ at Rs 6,560/t with improved regional mix

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11-Nov-24

Zydus Wellness (HOLD): Broad-based sales growth is a positive or a concern?

Underlying EBITDA +62% YoY. Sales was +12% with EBITDA margin expanding 20bps to 4.0%

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11-Nov-24

Aurobindo Pharma (BUY): The worst is over for Eugia plant

2QFY25 earnings were marginally below our estimates due to supply issues from Eugia plant affecting Global Specialty/Injectable sales

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11-Nov-24

SAIL (HOLD): Volatile profitability despite structural improvements

While Q2 benefitted from prior-period rail revenue, underlying profitability was weak and lagged peers

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10-Nov-24

Divi's Labs (SELL): Healthy Q2; rich valuations

DIVI reported healthy 2QFY25 earnings which was a beat on our estimates. Exports contributed 87% of sales and the US 71%

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09-Nov-24

Gujarat State Petronet (HOLD): Group reorganisation and GUJGA CGD are key value drivers

Q2 EBITDA declined 54% YoY primarily on sharp tariff cut from May’24; GIGL called on GUJS for cash deficit support under sponsor agreement

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09-Nov-24

Ashok Leyland (BUY): Cost respite aids steady show; recovery in sight. Retain BUY

Q2FY25 revenue grew 9% YoY to Rs 87.6bn (up 2% QoQ), helped by flat realisations YoY while volume fell by 9%

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09-Nov-24

Lupin (BUY): In-line quarter; EBITDAM guidance increased to 25%

LPC’s earnings were in line with our estimates but beat street’s estimates. EBITDA margin was 23% in Q2FY25

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09-Nov-24

JK Lakshmi Cement (SELL): Challenges galore leading to weak show; maintain SELL

Q2 revenue fell sharply by 21% YoY/QoQ each dragged by low volume growth, down 14%/20%, and weak realisations that fell by 9% YoY

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08-Nov-24

Prince Pipes & Fittings (BUY): Mixed Q2FY25; market share gain at the cost of inferior margin

PRINCPIP appears to have gained market share in Q2FY25 even after tightening the credit period for its dealers

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08-Nov-24

Escorts Kubota (SELL): No major respite from weakness; maintain SELL

Q2 tractors volume fell by 1% YoY (combined volume from JV partners post amalgamation) despite healthy industry growth

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08-Nov-24

Tata Steel (BUY): Look beyond transient issues, upgrade to BUY

Q2 call highlighted transient issues like delay in break-even at TSK, weaker margin outlook extending to Q3 and lower profitability at TSN

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08-Nov-24

Mahindra & Mahindra (BUY): Auto and Farm segments on healthy trajectory; maintain BUY

Automotive segment grew by ~9% YoY and tractor volume at 3% YoY in the monsoon quarter; festive season sales were encouraging

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07-Nov-24

Alembic Pharma (BUY): The worst is over; H2FY25 to be better than H1FY25

Q2FY25 results were below our estimates on all fronts; however, ALPM expects H2 to be better than H1FY25 driven by healthy product mix

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07-Nov-24

Astral (HOLD): Weak quarter; guidance downgrade yet again

Misses estimates on weak pipe volumes (-2.5% YoY) and continued subdued performance of SEAL IT & paints business

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07-Nov-24

Blue Star (BUY): Strong EMP growth & RAC performance amid soft quarter

Topline jumps 20.4% in Q2, with gross margin rising 170bps due to better product mix and material cost reductions

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07-Nov-24

Jindal Steel & Power (HOLD): Delivery on expansion and further growth visibility key triggers

Q2 results beat our weak expectations; EBITDA margin resilience reflect benefit of captive coal and HSM ramp-up

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07-Nov-24

eClerx Services (NOT RATED): Strong 2Q. Reiterates top quartile revenue growth in FY25

5.7% CC QoQ revenue growth and 480bps EBIT margin expansion was ahead of estimate driven by financial markets vertical and top clients

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06-Nov-24

Dr Reddy's Labs (HOLD): Healthy Q2; margins post gRevlimid LOE to remain wary

Revenue/EBITDA earnings above our and street estimates. APAT ~46% above estimates. Estimates adjusted for JV and impairment cost

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05-Nov-24

VST Tillers Tractors (SELL): Only minor respite from weak show; maintain SELL

Q2 revenue was flat YoY at Rs 2.8bn, dragged by lower realisations of Rs 0.2mn down by ~1.3% YoY (13% MoM)

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31-Oct-24

Cipla (HOLD): Conditional launch of gAbraxane likely in FY25

Goa plant receiving VAI likely to speed up gAbraxane launch in FY25E. In its 2QFY25 earnings call CIPLA said this would be delayed to H1FY27

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31-Oct-24

Indraprastha Gas (HOLD): Lower headroom to avert growth slowdown

IGL indicated near-term increase of Rs 5-6/kg due to loss of APM gas allocation for CNG segment and confirms need for price increase

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31-Oct-24

Dabur India (BUY): Macro and weather tailwinds vs carbonated soft drinks

Sales were in line with consensus and our estimates. EBITDA was 4% below consensus and 1% above our estimates

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30-Oct-24

V-Guard Industries (HOLD): Broad-based growth drives topline

Topline surged 14% YoY, driven by steady gains across Electronics, Electricals, and ECD segments, while Sunflame sales held steady

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30-Oct-24

Voltas (HOLD): In-line revenue; margins on the rise

Topline grew 14% YoY in Q2; EBITDA margin expanded 310bps YoY, fueled by better cost efficiencies

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30-Oct-24

Greenlam Industries (HOLD): Weak quarter; quick ramp up of new projects a key monitorable

Weak Q2 on lower-than-expected laminate volume and slow ramp-up of plywood segment

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30-Oct-24

Maruti Suzuki (BUY): Steady performance; upgrade to BUY on reasonable valuations

Q2FY25 revenue was flat YoY (+5% QoQ) in a challenging quarter, realisation improved by 2%/1% YoY/QoQ

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30-Oct-24

JK Cement (HOLD): Steady performance despite challenges; maintain HOLD

Grey cement volumes at 3.8mt (excluding clinker volumes) fell by ~3% YoY (-12% QoQ) owing to weak demand impacted by seasonality

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30-Oct-24

Marico (HOLD): Urban stable, rural growing

Versus consensus, sales miss 1%, EBITDA miss 2% on 15bps lower-than-expected margins. Parachute volumes +4% vs retail offtake +8%

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30-Oct-24

Cipla (SELL): No meaningful incremental triggers until Goa plant clearance

Earnings in line with our estimates on all fronts. However, US sales was down and 5% lower than our estimates in rupee terms

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29-Oct-24

Somany Ceramics (BUY): Guidance lowered on weak H1; positive medium-term outlook

Topline broadly in line; but EBITDA missed on margin contraction due to low absorption of fixed-cost overhead

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29-Oct-24

Greenply Industries (HOLD): Weak Q2 result on MDF margin pressure

Topline broadly in line; but sharp miss on EBITDA due to steep sequential contraction in MDF margin (-487bps QoQ to 11.8%)

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29-Oct-24

Greenpanel Industries (HOLD): Dismal Q2; MDF margin bottoms out, but recovery to take time

Sharp contraction in GREENP EBITDA (-57% YoY) for eight straight quarters on supply overhang in MDF industry

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29-Oct-24

Sun Pharma (HOLD): All positives built into current valuations

SUNP reported 11% domestic sales growth led by 5% volume growth from ~14,000 MRs; leads in Rx count across 13 doctor categories

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29-Oct-24

Ambuja Cements (HOLD): Steady 2Q show, gearing for demand revival; retain HOLD

Volume-driven revenue growth as realisation weakens by 6.0% YoY due to weak demand in key markets

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29-Oct-24

Firstsource Solutions (NOT RATED): Significant upgrade to revenue guidance

Big upgrade to revenue growth guidance with possibly more on the anvil in 2HFY25

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29-Oct-24

Ajanta Pharma (SELL): Lower growth forecast in multiple geographies

Mixed quarter with revenue/EBITDA beat of 4%/3%; however, PAT reported 1% and EBITDA margin was 30bps lower than our estimate

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28-Oct-24

Syrma SGS (HOLD): Modest revenue growth; margins to revive

Modest topline growth of 17%; EBITDA margin expanded 160bps due to better product mix

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28-Oct-24

ACC (HOLD): 1H below expectations, headroom for improvement

Q2FY25 revenue grew 4% YoY as 15% uptick in volume (supported by inorganic growth) was offset by realisation drop of 6%

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28-Oct-24

Apollo Pipes (HOLD): Dismal performance for fourth consecutive quarter

Weak Q2FY25 due to continued loss of market share and sharp margin contraction

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28-Oct-24

Marico (HOLD): Bangladesh update: Start of something good?

Marico Bangladesh (MB), ~22% of Marico’s Consolidated (MC) EBITDA, reported 2QFY25 sales +8%, est EBITDA +10%. Dividend payout 97%

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28-Oct-24

JSW Steel (HOLD): Poised for H2 recovery but risk-reward unfavourable

Q2 results was better than weak expectations, supported by lower loss on iron ore and inventory valuation. Imports had a significant impact

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26-Oct-24

Mahanagar Gas (HOLD): Resetting margin expectations, reiterate HOLD

Q2 results were broadly in line with our forecasts. Factoring in stronger growth momentum, we raise FY24-27E volume CAGR to 8.4% from 7.5%

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26-Oct-24

Orient Electric (BUY): Strong topline; margins in line. Upgrade to BUY

Decent 16% revenue surge with 210bps gross margin boost from smart cost cuts and strategic price hikes

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26-Oct-24

Finolex Industries (HOLD): Dismal performance on sharp margin contraction

Gained market share in pipe segment in a difficult environment, but still missed our EBITDA estimates by 90% due to sharp margin contraction

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26-Oct-24

Eris Lifesciences (BUY): Fully vertically integrated biologics segment; maintain BUY

Q2 revenue/PAT above our estimates due to better traction in both base and acquired businesses

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25-Oct-24

ITC (BUY): Managing inflation

Sales were 12% higher vs consensus likely due to the volatile, pass-through-based Agri Business segment. EBITDA was in line

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25-Oct-24

Petronet LNG (HOLD): Visibility on Dahej utilisation is key; upgrade to HOLD

Q2 underlying EBITDA broadly in line factoring in UOP adjustments; Dahej utilisation can hold up in Q3 if LNG prices remain range bound

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25-Oct-24

Godrej Consumer Products (HOLD): Partial pass-through impacting margins near term

Compared to Bloomberg consensus, sales were 1% higher but EBITDA beat was 4% as margins came in 60bps above expectations

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25-Oct-24

Dixon Technologies (HOLD): Strong performance; elevated valuations prompt HOLD

Q2 revenue jumped 133% YoY, driven by Mobile and EMS growth; EBITDA margin slid 30bps on change in business mix

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25-Oct-24

Laurus Labs (SELL): Another weak quarter

Earnings miss for 2Q on our and street estimates on all fronts. Revenue/PAT came short of consensus estimates by -5%/39%

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24-Oct-24

Tata Consumer Products (BUY): Share price correction is overdone – BUY

Tata Consumer share price corrected ~7% post 2QFY25 result on Tea inflation and sales challenges in NourishCo. Correction is overdone

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24-Oct-24

Hindustan Unilever (BUY): Managing inflation; FMCG remains rational

2QFY25 sales were 1% above consensus while EBITDA was 2% higher as margins came in 15bps above expectations

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24-Oct-24

Birlasoft (NOT RATED): Pains of trying to match Industry growth

Birlasoft is trying to pivot to address both annuity and transformation deals to remain on the growth path with decent margins

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24-Oct-24

TVS Motor (HOLD): Gearing for structural strength; valuations rich, maintain HOLD

Q2 revenue grew in double digits at 13%/10% YoY/QoQ to Rs 92.3bn

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24-Oct-24

Amber Enterprises (HOLD): Healthy growth to continue

Q2 achieved 82% YoY topline growth with 30bps EBITDAM expansion, although gains were tempered by the shift in product mix

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23-Oct-24

Coforge (NOT RATED): More bullish than peers on demand conditions

Unlike peers who have been tentative on demand, Coforge CEO sounded confident that demand had returned convincingly

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23-Oct-24

Zensar Technologies (NOT RATED): Unseasonal furloughs in TMT clients impacts revenue growth

Weak QoQ growth due to client specific issues in TMT vertical whereas BFSI and HLS show good traction.

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22-Oct-24

Persistent Systems (NOT RATED): Strong quarter both on revenue and margins

Met revenue estimate. But a beat on EBIT margin. Strong 1H and ACV should mean high teen revenue growth with flat EBIT margin vs FY24

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22-Oct-24

Kajaria Ceramics (HOLD): Miss estimates on sharp margin contraction; maintain HOLD

Weak Q2 on sharp margin contraction due to high share of outsourced sales volume and high overhead costs of new commissioned units

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22-Oct-24

Supreme Industries (BUY): Weak Q2; upgrade to BUY on reasonable valuations

Weak Q2 on destocking of pipe inventories in the channel in a falling resin price environment, and MTM inventory loss

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22-Oct-24

Ultratech Cement (BUY): Geared up for short-term challenges; maintain BUY

Steady 3% volume growth aids marginal fall in topline despite dent in realisations in a challenging Q2; capacity utilisation at ~68%

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22-Oct-24

Dalmia Bharat (HOLD): Challenging phase for Dalmia; valuations factored in

Revenue declined by 2%/15% YoY/QoQ to ~Rs 31bn in Q2FY25 as focus returned to volume growth over guarding against declining realisations

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19-Oct-24

Tech Mahindra (NOT RATED): Beats modest expectations; Steady move toward FY27 targets

A beat on revenue, margins and TCV against low expectations. Steadily moving to achieve its FY27 targets. Momentum to continue in 2H.

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19-Oct-24

Tata Consumer Products (BUY): Focus on market share; weathering the tea dynamics

Compared to consensus, sales came in 3% lower while EBITDA was in line

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18-Oct-24

Wipro (NOT RATED): Beats low expectations. Margin & large deal TCV key positives

2QFY25 street expectations were low due to weak performance over the last many quarters. Wipro delivered a modest beat on those

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18-Oct-24

Polycab India (HOLD): Strong run continues

Healthy revenue growth at 30% YoY; EBITDA falls on high competition and high ad spends

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18-Oct-24

LTIMindtree (NOT RATED): Softer revenue and TCV. Efficiency pivot should help

Softer than expected but broad-based growth. TCV numbers have been in a narrow range for many quarters now.

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18-Oct-24

Infosys (NOT RATED): Broadly inline quarter: Revenue guidance and TCV underwhelm

Broad-based growth with European auto the only weak spot. Discretionary spending still restricted to US financial services.

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18-Oct-24

Havells India (HOLD): Q2 margins miss; growth on the way

Q2 grew ~17% on improvement in consumer demand trends. High A&P spends and high staff cost hurt margins

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17-Oct-24

Nestle India (HOLD): Margins remain a priority; HOLD

Sales came in 4% below consensus while EBITDA was 10% lower due to margin being 152bps below expectations

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17-Oct-24

Mphasis (NOT RATED): In line quarter. Steady improvement indicated.

Revenue and EBIT margin broadly in line. TCV a tad soft – deals getting pushed back on greater scrutiny on spending by clients on AI projects.

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17-Oct-24

KEI Industries (BUY): Sustaining growth with stability

KEII reported a 17% YoY rise in Q2 revenue, but margins declined due to raw material price volatility and lower share of EHV sales and exports

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17-Oct-24

Bajaj Auto (HOLD): Well balanced growth strategy; valuations priced in

BJAUT’s Q2FY25 revenue jumped 22%/10% YoY/QoQ to Rs 131bn aided by volume growth of 16% and favourable mix aiding faster growth

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15-Oct-24

Shree Cement (HOLD): Focus on growth to continue; maintain HOLD

Maintaining market share will be the key priority in the supply glut market situation, though capacity utilisation may hover ~70%

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15-Oct-24

Reliance Industries (BUY): Earnings bottomed out but softness may persist near term

Q2 results were broadly in line with muted expectations, earnings likely bottomed out but softness may persist for couple of quarters

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15-Oct-24

HCL Technologies (NOT RATED): Modest beat. Guidance broadly maintained

Broad-based and better-than-expected growth. Guidance is broadly left unchanged. HCLT does not want to extrapolate strong 2Q into 2H

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11-Oct-24

Tata Consultancy Services (NOT RATED): BSNL margin pain pops up

1.1% CC QoQ revenue growth was in line. Margin pain of BSNL order, not visible thus far, showed up

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07-Oct-24

Marico (HOLD): Marico Bangladesh operationally fine; 2QFY25 miss

MB’s 1QFY25 DPS is paid out, bringing trailing 12M payout ratio to 76%. Two cash repatriations were executed within a 30-day period

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03-Oct-24

Dabur India (BUY): 2QFY25 sales, EBITDA miss – Est sales rural +2%, urban -16%

Sales and EBITDA miss on 2QFY25. Estimated sales miss of 11% and EBITDA miss of 25%

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27-Sep-24

Accenture (NOT RATED): Guidance conservative if macro holds up

1.5% LC organic revenue growth at the midpoint FY25 (YE August) is conservative if the US soft landing plays out.

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26-Sep-24

Marico (SELL): The Remittance Test: Dividend payout from Marico Bangladesh

Marico Bangladesh’s 1QFY25 DPS of BDT100 was recorded on 25 Aug’24. This equates to ~30% of MB’s cash/share on balance sheet

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25-Sep-24

Accenture (NOT RATED): A peek into FY26 prospects for Indian players

We see downside risk to current Accenture’s consensus organic growth estimate of 3.5% for FY25. Assuming 2% inorganic.

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23-Sep-24

Polycab India (HOLD): Management meet takeaways – Steady growth on the horizon

W&C on robust growth trajectory, fueled by government infrastructure investments & rising real estate demand; 2HFY25 to exceed 1HFY25

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16-Sep-24

Tata Consumer Products (BUY): Meeting with management – Medium- to long-term targets intact

Medium- to long-term growth prospects remain intact with TCPL targeting double-digit topline growth driven by growth businesses

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04-Sep-24

Havells India (HOLD): Strategic capacity expansion to propel growth

Wires & cables accounted for 34% of HAVL’s FY24 revenue, with capacity expansion to increase from 3.29mn km to 4.58mn km by 2026

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02-Sep-24

Gujarat State Petronet (HOLD): Reorganisation to unlock investment value; maintain HOLD

GSPL stock’s driver to be value of GUJGA and GTL post transaction with a specified swap ratio of 10+3.33 to 13 shares

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30-Aug-24

Marico (SELL): Cash repatriation debate is building up in Bangladesh

Similar to Marico, Indian power companies along with global MNCs are facing increased challenges in cash transfers from Bangladesh

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30-Aug-24

Hindustan Unilever (BUY): Management meeting: Mid/long term prospects remain positive

Volumes were subdued for the past couple of years but trends are improving

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29-Aug-24

Reliance Industries (BUY): Key takeaways from the FY24 AGM

Key positives include announcement of bonus issue, high-growth targets for consumer business, and comfort in working with deep-tech

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29-Aug-24

HCL Technologies (NOT RATED): Wants to deliver industry leading TSR in the future too

Did not change its near-term commentary while being bullish on the medium-term outlook

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23-Aug-24

MOIL (NOT RATED): Marathon run ahead after a sprint in FY24

With moderation of prices, production growth is likely to be the main driver

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17-Aug-24

IRM Energy (NOT RATED): Management meet takeaways – Focus on volume continues

Q1 EBITDA recovered 34% sequentially on recovery in EBITDA margin, but still 28% lower YoY on higher opex

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16-Aug-24

Voltas (HOLD): Strong revenue – UCP leads; EMP turns around

Topline surged 46.5% YoY in Q1; EBITDA margin expanded 310bps YoY, boosted by nationwide heatwave

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15-Aug-24

Marico (SELL): Back in play, but exposure is high and cash remains stuck. Sell

Marico Bangladesh (MB) facility has resumed operations at its usual run rate. Bulk of the sales and distribution team is back to work

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15-Aug-24

Hero Motocorp (HOLD): Gaining momentum; pace likely to accelerate. Maintain HOLD

Q1 revenue grew by ~16% YoY to Rs 101.4bn, driven by strong volume gains of ~14% YoY and realisations gains of 2% YoY

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13-Aug-24

VST Tillers Tractors (SELL): Weakness persists; downgrade to SELL

Q1 revenue fell ~23% YoY to Rs 1.9bn, dragged by lower volume at 7.38k units and down by ~30% YoY due to weak overall activity

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13-Aug-24

Cera Sanitaryware (SELL): Another lacklustre quarter on soft demand

Dull Q1 due to weak demand environment on account of the extreme heatwave and impact of general elections across India

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12-Aug-24

Star Cement (HOLD): Weak quarter; but performance to improve in medium term

Revenue stayed flat as volume fell marginally, and realisations remained flat YoY/QoQ at Rs 6,508/t

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12-Aug-24

JSW Steel (HOLD): Access to prime coking coal in Australia at an attractive price

JSTL acquired access to Illawarra prime hard coking coal, equivalent to 7-9% of its hard coking coal requirements today for the next 14 years

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12-Aug-24

Hindware Home Innovation (BUY): Dismal quarter on muted demand and sales force rationalisation

Dull Q1 on weak bathware performance due to muted demand environment and impact of sales force rationalisation

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10-Aug-24

Gujarat State Petronet (HOLD): Transmission volume pick up not value accretive

Q1 EBITDA was in line with consensus. Factoring in beat to our Q1 estimate and gas consumption pick up, we raise our FY25-26 estimates

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10-Aug-24

SAIL (SELL): Discount to peers is not unjustified

While SAIL clocked sequential improvement in 1Q, the performance fell short of consensus and our expectations

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09-Aug-24

Astral (HOLD): Weak quarter; guidance downgrade across segment

Strong pipe volume growth of 16.4% YoY in Q1FY25, but still lags closest peer SI for the tenth straight quarter

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09-Aug-24

Eicher Motors (HOLD): Steady performance; new launches to drive growth momentum

Q1 revenue increased ~9% YoY to Rs 42.3bn, driven by realisation gains of 9.3% YoY to Rs 187.2k per motorcycle

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08-Aug-24

Godrej Consumer Products (HOLD): Sales miss but margin beat

GCPL missed on sales and EBITDA but business is commoditised and volume growth was in line with high single digits guidance

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08-Aug-24

Reliance Industries (BUY): Quick pointers from FY24 Annual Report

Retail market share at ~3.5% and targeting growth rate double that of market; Digital Services positioned to lead in FWAs and 5G

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07-Aug-24

Shree Cement (HOLD): Performance weak though current valuations capture the same

Realisation dent drags revenue growth by 3%5% in Q1FY25, partially offset by healthy volume growth of 8%/1% YoY/QoQ

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07-Aug-24

Century Plyboards (HOLD): Near-term pain to persist; positive medium-term outlook

CPBI’s topline came broadly in line; EBITDA sharply missed our estimates in Q1 due to loss incurred on newly commissioned AP units

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07-Aug-24

Blue Star (BUY): Strong quarter; outlook bright

Topline jumps 28.7% in Q1, with gross margin rising 140bps and EBITDA margin 180bps

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07-Aug-24

TVS Motor (HOLD): No challenges in performance; valuations gain pace

Q1 revenue increased by 16% YoY driven by volume growth of 14.1% YoY to ~1.1mn units

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06-Aug-24

Orient Cement (SELL): No major performance triggers; valuations stretched

Q1 reported revenue declined 16% YoY to Rs 1.35mn/t, impacted by ~15% YoY fall in volumes

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06-Aug-24

Marico (SELL): Downgrade to SELL on Bangladesh – 22% EBITDA contribution

Marico Bangladesh (MB), operating in Household and Personal Care, accounts for 11% of MRCO’s consolidated sales

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06-Aug-24

Syrma SGS (HOLD): Robust revenue; drag on margins apparent

Strong Q1 topline growth was offset by GM contraction due to higher RM costs; dip in EBITDA margin caused by unfavourable product mix

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06-Aug-24

Marico (HOLD): Focus on long term

Compared to consensus, sales were in line and EBITDA 1% higher. Volumes were +4%, an acceleration vs +2% in the Mar’24 quarter

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06-Aug-24

Britannia Industries (BUY): Leading by example – Topline focus amidst macro tailwinds

Sales were 2% higher, EBITDA 3% lower vs Bloomberg consensus. Volumes +8% along with rise in both EBITDA margins and A&P

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05-Aug-24

State Bank Of India (BUY): Strong performance aided by operational efficiencies

PAT declined on subdued topline and higher credit cost, while operational efficiency offset some of its adverse impact

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03-Aug-24

JK Lakshmi Cement (SELL): Changed dynamics lead to challenges; maintain SELL

Q1 revenue fell 11.5% YoY on the back of low volume growth, down 8%, and weak realisations that fell by 4.6% YoY

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03-Aug-24

Zydus Wellness (HOLD): 1QFY25 result review: Risk from La Nina

Sales (+20%) were 7% higher on heatwave but EBITDA was in line with Bloomberg consensus. We forecast +13% sales growth in FY25

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03-Aug-24

Prince Pipes & Fittings (BUY): In-line Q1; focus on market share gain and better cash flow

PRINCPIP’s Q1 result came broadly in line with our estimate; gained market share even after tightening credit period in Q1

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03-Aug-24

Somany Ceramics (BUY): Near-term pain, medium-term outlook positive

Misses our revenue/EBITDA estimate by 2%/8% mainly due to lower-than-expected tiles volume

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03-Aug-24

Escorts Kubota (SELL): Weakness persists, maintain SELL

Q1 tractors volume dipped 3.2% YoY as weakness persisted in export markets and domestic market lost market share

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03-Aug-24

Maruti Suzuki (HOLD): Healthy show continues; maintain HOLD on elevated valuations

Q1 revenue grew 10% YoY driven by demand in SUVs and realisations which improved 5%/4% YoY/QoQ

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02-Aug-24

Mahindra & Mahindra (BUY): Healthy performance to continue; upgrade to BUY

Automotive segment grew by ~14% YoY and tractor volume an encouraging 5% YoY in a dull quarter

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02-Aug-24

Orient Electric (HOLD): Modest quarter; Hyderabad facility gears up for growth

Modest 7% topline growth with 240bps gross margin boost; EBITDA hit by rising staff costs

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02-Aug-24

Ambuja Cements (HOLD): Weak present but promising future; retain HOLD

Volume-driven revenue growth as realisation weakens by 6.5% YoY owing to weak demand in key markets

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02-Aug-24

ITC (BUY): 1QFY25 earnings review

Hotels and Agri segments drove sales with subdued performances in FMCG and cigarettes

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02-Aug-24

Tata Steel (HOLD): Project delivery and transition to support earnings growth

Q1 results confirmed a rebound in Netherlands for recovery from losses in Europe and stable profitability in India operations

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02-Aug-24

Dabur India (BUY): Rural recovery, potential upside from intense/extended winters

1QFY25 underlying result was broadly in line with consensus with in-line sales but 1% lower EBITDA and EPS

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01-Aug-24

ACC (HOLD): 1Q below expectations, but leaves room for improvement

Q1FY25 revenue stayed flat YoY as 8.5% uptick in volume was offset by realisation drop of 8.3%

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01-Aug-24

Birlasoft (NOT RATED): Among the weakest performers this quarter

Big miss on revenue and margins. Significant shifts in cost items on a QoQ basis help prevent collapse in margins

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01-Aug-24

Indian Oil Corp (SELL): Visibility on growth delivery low, downgrade to SELL

IOCL’s Q1 reflected weaker core refining margin and impact of LPG under-recovery, although it had healthy fuel marketing margins

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01-Aug-24

Crompton Greaves (BUY): Strong quarter; healthy outlook

Strong Q1 topline from higher fan, B2B lighting and pump sales, and GM expansion of 110bps driven by strategic pricing actions

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31-Jul-24

Greenply Industries (HOLD): Strong Q1; upbeat outlook in a challenging environment

Strong Q1 due to better-than-expected plywood volume and sharp improvement in MDF segment margin on better product mix

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31-Jul-24

IDFC First Bank (BUY): Business performance in line with guidance

Management maintained its strong business growth target with major focus on operational leverage to improve return, C/I Ratio <65% by 2027

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31-Jul-24

Hindustan Petroleum Corp (BUY): Growth delivery remains on track, maintain BUY

Q1 results was below consensus. However, underlying margins show benefit of progress at Vizag and healthy fuel margins

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31-Jul-24

Tata Consumer Products (BUY): 1QFY25 results review – Above expectations

TATACONS reported sales and EBITDA beat on improved margins in the unbranded business and M&A

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31-Jul-24

Dixon Technologies (BUY): Beats estimates; mobile dials growth

Q1 revenue jumped 101% YoY, driven by mobile and EMS growth; EBITDA margin slid 20bps on input cost hike

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30-Jul-24

Greenpanel Industries (HOLD): Dismal Q1; MDF margin bottoms out, but recovery to take time

Sharp contraction in GREENP EBITDA (-45% YoY) for seventh straight quarter on supply overhang in MDF industry and rising timber prices

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30-Jul-24

KEI Industries (HOLD): In-line quarter; guidance retained

KEII’s Q1 revenue jumped 16% YoY with 40bps EBITDA margin expansion, and driven by robust infrastructure and real estate demand

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30-Jul-24

Apollo Pipes (HOLD): Weak Q1FY25; return ratio to remain weak over medium term

Weak Q1FY25 as APOLP continued to lose market share even after selling its products at a discount to its peers

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29-Jul-24

Canara Bank (BUY): Despite seasonality performance remained almost stable

Stable business growth coupled with change in credit mix likely aided margin. CBK targets NIM of 2.9-3.0% and opex of 47% over FY25

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29-Jul-24

Finolex Industries (HOLD): Mixed Q1FY25; market share loss on capacity constraints

Topline miss driven by market share loss in pipe segment on capacity constraints; EBITDA beat on improved pipe margin

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29-Jul-24

Bandhan Bank (BUY): Strong business growth across segments aided PAT growth

Strong business growth despite seasonality led healthy NII growth, while lower provision on high base aided PAT growth of 47% YoY

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29-Jul-24

ICICI Bank (HOLD): Modest business; other income increases aid PAT

Moderate business growth led to subdued NII (2%/7% QoQ/YoY), while PAT grew 3%/15% QoQ/YoY aided by higher other income (24% QoQ)

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29-Jul-24

IndusInd Bank (BUY): Stable performance

Business growth moderate on seasonality with credit/deposit growth of 15%16% YoY vs. target 18-23% (guidance intact) leading to flat QoQ NII

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29-Jul-24

Mphasis (NOT RATED): Weak quarter but bullish commentary

Weak quarter despite talk of BFSI bottoming out. Significant TCV uptick QoQ from a very weak base. Much discussion on expanded pipelines

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27-Jul-24

Amber Enterprises (HOLD): Strong quarter; margin expansion sustainable

Q1 sees 41% YoY topline growth and 140bps EBITDA margin expansion from improved product mix

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27-Jul-24

Indraprastha Gas (HOLD): Getting back on track but needs time; downgrade to HOLD

IGL’s Q1 recovery was ahead of our forecasts with a sharper reduction in gas purchase costs partly due to opportune use of cheaper spot gas

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27-Jul-24

Mahanagar Gas (HOLD): Recent run-up raises bar on growth, downgrade to HOLD

MAHGL breaks out of modest growth history, clocking 12% YoY volume growth over past six months

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27-Jul-24

Ashok Leyland (BUY): Good show in a challenging quarter; retain BUY

Q1FY25 revenue grew 5% YoY to Rs 85.9bn, despite a challenging quarter, aided by 6% volume growth

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26-Jul-24

Federal Bank (BUY): Higher other income supports PAT growth

Continued strong (20% YoY) business growth momentum; NII/PAT grew 20%/18% YoY on higher other income and lower opex

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26-Jul-24

Axis Bank (HOLD): Moderate business growth; higher provision dragged PAT

Seasonally weak quarter with moderate business growth coupled with higher stress dragged profitability. PAT declined 15% QoQ, up 4% YoY

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26-Jul-24

Tech Mahindra (NOT RATED): On track with its FY27 objectives

1QFY25 was broadly along expected lines and the first positive but modest step in achieving its FY27 objectives

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26-Jul-24

The Ramco Cements (SELL): Challenges resurface; downgrade to SELL

Q1 revenue showed degrowth of 7% due to weak volume growth amid extreme weather and elections; pricing pressures affected realisations

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25-Jul-24

Nestle India (HOLD): Weak sales growth profile over the next 12 months

Compared to Bloomberg consensus, NEST’s sales were 6% lower and EBITDA 10% lower

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25-Jul-24

V-Guard Industries (HOLD): Summer products drive revenue

Q1 saw a 22% YoY increase in topline, driven by CD and Electronics, fuelled by nationwide demand for cooling products amid a heatwave

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25-Jul-24

Petronet LNG (SELL): Volume growth ahead but watch for downside factors

Q1 underlying EBITDA was up 19% QoQ on 12% volume growth and Rs 0.6bn of trading gain

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25-Jul-24

Jindal Steel & Power (HOLD): Expansion to deliver material growth even after delays

Q1 result was ahead of consensus. Company announced another 6-9 months delay of Angul expansion project

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24-Jul-24

Greenlam Industries (HOLD): Soft quarter; margin pressure to persist in near future

Weak Q1 on sharp margin compression in laminate segment and slow ramp-up of plywood and veneer segments

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24-Jul-24

Coforge (NOT RATED): CEO indicates demand bottoming out. Tepid recovery

CEO believes demand has bottomed out. Industry demand commentary turns positive for the first time in the current cycle

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24-Jul-24

Zensar Technologies (NOT RATED): Starts FY25 well on revenue. But challenges ahead?

1Q growth was better than expected though margins were weak because of one-off client bankruptcy

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24-Jul-24

Hindustan Unilever (BUY): Sales growth in line; expect rebound in 2H

Sales growth of 2% YoY was in line with Bloomberg consensus. Underlying volumes rose 4% on Home Care & Personal Care (Hair Care)

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23-Jul-24

Kajaria Ceramics (HOLD): In-line Q1; downgrade to HOLD on expensive valuations

Q1 operating profit came broadly in line with our estimates, but missed our APAT estimate by 11.5% on lower other income and higher tax rate

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23-Jul-24

RBL Bank (BUY): Healthy loan growth, stable asset quality; maintain BUY

Healthy loan growth led NII to grow 6%20% QoQ/YoY. Lower provision aided PAT growth of 5%/29% QoQ/YoY

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23-Jul-24

Kotak Mahindra Bank (BUY): Healthy business despite higher CoF/provision dragging PAT

Healthy credit growth driven by corporate; deposits remained muted due to slowdown in low-cost deposit mobilisation

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23-Jul-24

JK Cement (HOLD): Valuations run up faster than earnings; downgrade to HOLD

Grey cement volumes at 4.3mt (excluding clinker volumes) grew by ~6% YoY (-7% QoQ) owing to listless demand

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22-Jul-24

Supreme Industries (HOLD): Misses estimates on destocking of pipe channel inventory

Q1 misses our estimates on lower-than-expected pipe performance due to destocking of pipe inventories in the channel in the month of Jun’24

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22-Jul-24

JSW Steel (HOLD): Higher volume growth is priced in

Q1 EBITDA was below consensus and down sequentially on lower volumes and flat margins despite lower coking coal costs

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21-Jul-24

HDFC Bank (BUY): Continued focus on business realignment impedes growth

NII growth remained healthy, while fall in other income was offset by lower opex, provision, and adj PAT. NIM increased 3bps QoQ to 3.7%

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21-Jul-24

Bharat Petroleum Corp (HOLD): Growth hiatus, downgrade to HOLD

Q1 normalisation in line with consensus. Underlying fuel margin surprised on upside. Timing of compensation for LPG loss uncertain

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20-Jul-24

Ultratech Cement (BUY): Firmly on growth path; maintain BUY

Higher single digit volume growth with 80%+ capacity utilisation aids UTCEM’s revenue growth despite realisation dent in a challenging Q1

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20-Jul-24

Reliance Industries (BUY): Structural position to tide over near-term hiccups

RIL missed consensus; while slowdown was anticipated in Retail and O2C, the extent was bit higher

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20-Jul-24

Wipro (NOT RATED): Disappointing outlier

Underwhelming 1Q revenue performance and 2Q guidance. Cautious demand commentary compared to peers

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20-Jul-24

Dalmia Bharat (HOLD): Growth setback in the shorter term; downgrade to HOLD

Volume growth takes a back seat as focus shifts to tackling steep fall in realisation, which leads to flat revenue growth. EBITDA up by 10%

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19-Jul-24

Persistent Systems (NOT RATED): Worry around true underlying margin

Good revenue growth QoQ. Partly helped by passthrough items and delivery shift to onsite

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19-Jul-24

Polycab India (HOLD): Decent quarter across; eyes on project LEAP revisions

Revenue growth reasonable at 21% YoY, but EBITDA margin falls on lower exports and change in business mix

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19-Jul-24

Infosys (NOT RATED): Better-than-expected showing

Revenue comes in 100bps higher than expected as US BFS surprised positively. INFO sees volume growth for the first time in many quarters

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18-Jul-24

Havells India (HOLD): Capacity expansion fuels growth

Robust 20% topline growth with a 160bps EBITDA margin expansion in Q1, despite ongoing raw material price volatility

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18-Jul-24

LTIMindtree (NOT RATED): Current momentum could put FY25 growth a bit ahead of FY24

Better-than-expected revenue growth in 1QFY25. Indicates growth momentum to sustain in 2QFY25. Did not offer its view on 2HFY25

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17-Jul-24

Bajaj Auto (HOLD): Driving a strong path with favourable portfolio mix

BJAUT’s Q1FY25 revenue jumped 16% YoY (4% QoQ) to Rs 119bn aided by volume growth of 7% and favourable mix aiding faster growth

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13-Jul-24

HCL Technologies (NOT RATED): 1QFY25 broadly in line. No material change in demand

1QFY25 revenue and margins were broadly along expected lines. Full-year revenue and growth guidance maintained

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12-Jul-24

Tata Consultancy Services (NOT RATED): Modest growth improvement in FY25 over FY24 likely

Results were better than expected, more so on margins. Broad-based growth seen. However, international growth was much weaker

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08-Jul-24

Marico (HOLD): Business update – Distributor response to Project SETU

Marico noted continued improving demand trend with likely further acceleration through FY25. Volume trend improved despite destocking

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08-Jul-24

Dabur India (BUY): 1QFY25 business update – Slightly improving domestic demand

Dabur’s 1QFY25 business update showed improving trends in sales (+MSD to HSD) and earnings growth slightly ahead of sales

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04-Jul-24

Patanjali Foods (NOT RATED): Home and Personal Care – Rising competition on the horizon

Patanjali Foods acquired Patanjali Ayurved’s HPC business for Rs 11bn. It expects to close the transaction by 15 Aug 2024

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01-Jul-24

Polycab India (HOLD): Annual report analysis – Maintained market leadership

Remains market leader in core wires & cables business; market share expanded 2-3% to reach 25-26% of India’s organised market in FY24

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28-Jun-24

Reliance Industries (BUY): Jio delivers on tariff hike; reiterate BUY

Jio delivers on our expectation of a tariff increase a quarter earlier. We now factor in 9%/11% tariff hikes over FY25/FY26

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24-Jun-24

Canara Bank (BUY): Consistent recovery in business performance

Stable business growth coupled with change in credit mix likely to aid margin. CBK targets NIM of 2.9-3.0% and opex of 47% over FY25

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21-Jun-24

Mahindra & Mahindra (HOLD): Investor day takeaways – Poised to tap growth opportunities

Shifts gears to tap auto segment growth with planned capex to increase capacity by 3.5x in FY26 (vs FY20) with focus on SUVs (ICE + EV)

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21-Jun-24

Voltas (HOLD): Annual report analysis – Beko to fuel growth

Despite denting market share, VOLT notched sales of more than 2mn AC units

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14-Jun-24

Cipla (HOLD): Valuations fully priced in; downgrade to HOLD

Strong traction in North America business and consistent performance in One-India; South Africa and Global Access business stabilising

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13-Jun-24

360 One (HOLD): ET Money acquisition – beneficial in long term

360 One acquired ET Money for a total payment of Rs 3.7bn, partially paid in cash and partly through shares

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05-Jun-24

Havells India (HOLD): Annual report analysis – Product innovation driving growth

Healthy FY24 performance; EBITDA margin expansion of 40bps YoY; Lloyd turns profitable in Q4

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01-Jun-24

Tata Steel (HOLD): Stock price largely captures transition; downgrade to HOLD

Q4 results ahead of consensus on beat in India operations and lower losses in Europe partly due to carbon credits in the UK

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29-May-24

Alkem Labs (SELL): Misses estimates; steep sequential margin decline

ALKEM reported a weak fourth quarter with EBITDA/PAT missing Bloomberg consensus by 9%/16% to Rs 4.0bn/2.9bn

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29-May-24

Hindware Home Innovation (BUY): In-line quarter; upbeat outlook across segments

Beat our EBITDA estimate by 4.5% mainly due to better-than-expected plastic pipe sales volume

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29-May-24

Greenlam Industries (HOLD): Soft quarter; particleboard project cost revised up again

Missed our EBITDA estimates by 4% for Q4FY24 on weak laminates demand from export market

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29-May-24

JK Lakshmi Cement (SELL): Margins gain, volume flat; no major respite, retain SELL

Q4 volumes fell 5% YoY as capacity constraints restricted volume even to cater to steady demand; realisations flat YoY despite weak volumes

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28-May-24

LIC (BUY): Decent quarter; upgrade to BUY

APE and net premium grew 11% and 16% YoY respectively in Q4; EV grew 25% YoY in FY24

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27-May-24

Century Plyboards (HOLD): In-line quarter; weak near-term outlook

CPBI’s Q4 broadly in line; EBITDA fell by 9.4% YoY in Q4 due to weak performance across segments

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27-May-24

Aurobindo Pharma (HOLD): Strong quarter; OAI at Eugia-III an overhang

ARBP reported strong Q4 with EBITDA/Adj. PAT beat of 10%/23%. Exceptional expense of Rs 1.2bn reduced reported PAT beat to 8%

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25-May-24

Star Cement (HOLD): Steady show in a trying quarter; growth intact

Steady 11% growth in a challenging quarter assisted by 12% YoY volume increase; realisations softens

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25-May-24

Divi's Labs (SELL): Strong quarter; rich valuations

DIVI delivered a strong quarter with all round beat. EBITDA/PAT beat Bloomberg consensus estimate by 20% each

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25-May-24

Petronet LNG (SELL): Volume growth visibility still low, downgrade to SELL

Q4 EBITDA missed consensus on provisions for delayed TOP recovery and inventory loss; provisions to muddle EBITDA reporting till FY26

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25-May-24

Ashok Leyland (BUY): Healthy show, all set to continue momentum; retain BUY

Healthy base keeps revenue growth listless in Q4, strong growth of 22% QoQ; volume grew a sturdy ~20% YoY/QoQ

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23-May-24

The Ramco Cements (HOLD): Steady quarter, aggressive capex plans; upgrade to HOLD

Q4 revenue growth muted at 4% YoY as weak demand in key operating regions continues; pricing pressure dampens realisations

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23-May-24

Sun Pharma (HOLD): Gearing for higher R&D spend

SUNP missed consensus EBITDA estimate by 4% as higher R&D spend offset gross margin gains; higher other income & low tax aided PAT

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22-May-24

Shree Cement (HOLD): Cost savings key driver of performance; valuations pricey

Q4 revenue growth of 7% YoY backed entirely by steady 7% volume as realisations stay listless

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22-May-24

Greenply Industries (BUY): Misses estimate on weak plywood margin; upbeat outlook

MTLM missed our EBITDA estimate by 16% in Q4 on sharper-than-expected contraction in plywood margin on high timber prices

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22-May-24

Eris Lifesciences (BUY): Strong revenue growth; integration ongoing

ERIS posted strong revenue performance in Q4 with a beat of 8%, but EBITDA came below BBG consensus due to higher opex and one-offs

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22-May-24

Bandhan Bank (BUY): In line with recovery plan

Healthy business growth, improved asset quality and higher other income supported topline; increased provision dragged PAT

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22-May-24

JK Cement (BUY): Focused on growth; earnings intact; upgrade to BUY

Q4 revenue grew 10% YoY to Rs 29.4bn as grey cement volumes gained 13% YoY/QoQ; realisation resilient YoY with 1% drop

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21-May-24

Astral (HOLD): Weak quarter, strong outlook

EBITDA miss by 6% compared to our estimate on continued weak performance of paints and adhesives segment

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21-May-24

Apollo Pipes (HOLD): Another disappointing quarter on all fronts

Weak Q4 performance on loss of market share due to rise in competitive intensity in the sector

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18-May-24

Mahindra & Mahindra (HOLD): Growth trajectory captured in the valuations

Q4 revenue grew 11% YoY, led by 7% blended realisation gains and 4% volume growth (flat QoQ)

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18-May-24

Amber Enterprises (SELL): Ongoing challenges; maintain SELL

Subdued Q4 topline with EBITDA margin expansion of 110bps on better product mix

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18-May-24

V-Guard Industries (HOLD): Early summer sparks a robust quarter

Q4 topline up 18% YoY, fuelled by Consumer Durables segment, as the early onset of summer boosts overall performance

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17-May-24

Prince Pipes & Fittings (HOLD): Mixed Q4FY24; positive demand outlook

Beats our revenue estimate by 3% on strong volume, but misses our EBITDA estimate by 6% on pricing pressure in the sector

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17-May-24

Eicher Motors (HOLD): Powering growth momentum with new launches

Q4 revenue grew ~9% YoY driven by realisations higher by 5% due to better product mix, and 4% volume growth

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16-May-24

Crompton Greaves (BUY): Healthy quarter, growth ahead

Q4 standalone topline growth ex-BGAL at 12% YoY in Q4, gross margin expanded 130bps and EBITDA margin 30bps ex-BGAL

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16-May-24

Dixon Technologies (BUY): Backward integration to fuel growth; maintain BUY

Q4 revenue jumped 52% YoY, driven by mobile and EMS growth; EBITDA margin down 120bps on input cost hike

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15-May-24

VST Tillers Tractors (HOLD): Tepid performance; no major stress in the medium term

Q4 revenue down 15% YoY driven by 19% volume decline due to slower-than-estimated rural demand recovery

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15-May-24

Somany Ceramics (BUY): Strong show in a challenging environment

Beats our revenue/EBITDA estimate by 5%/14% due to better-than-expected tiles volume and improved margin

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15-May-24

Siemens India (BUY): Robust quarter, fresh capex announced

Topline growth strong at 18.4% in Q2, with gross margin expanding 100bps and EBITDAM 250bps YoY

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14-May-24

Escorts (SELL): Weakness persists and likely to continue – maintain SELL

Q4 tractor volumes dipped 14% YoY, with domestic share recovered but overall market share recovery weak as exports volume declined

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14-May-24

Indraprastha Gas (BUY): Growth focus improving, reiterate BUY

While Q4 EBITDA missed consensus on higher expense booking in a quarter, IGL gained traction in industrials, commercials and households

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14-May-24

Cera Sanitaryware (HOLD): Another lacklustre quarter on soft demand

Sharp contraction in gross margin in Q4FY24 on higher discounts offered to dealers to push volumes in a weak demand environment

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14-May-24

AIA Engineering (HOLD): Uneventful quarter; capacities lined up

Q4 revenue down 9.7% YoY with gross margin expanding 160bps and EBITDA margin 220bps

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13-May-24

ERRATA: State Bank Of India (BUY): Continued strong performance across segment

Strong PAT growth was led by one-off gain in other income and lower operational cost

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13-May-24

Finolex Industries (HOLD): Broadly in-line Q4FY24; positive outlook

Strong pipe performance in Q4FY24, driven by healthy volume growth of 23% YoY as well as sharp margin improvement

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13-May-24

Syrma SGS (HOLD): Strong topline, but margins remain subpar

Robust topline growth in Q4, but EBITDA margin dipped due to product mix

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13-May-24

TVS Motor (BUY): Cruising on the right track; maintain BUY

ICE 2-wheeler volume grew 18% YoY, supporting 24% revenue growth in Q4. FY24 growth was 19% YoY vs. industry’s 13%

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13-May-24

ABB India (HOLD): Margins swell; outlook strong

Strong topline growth of 27.8% with gross margin above 40% after 6 years; EBITDA margin expands 650bps YoY to 18.3% in Q1

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10-May-24

Polycab India (BUY): Strong quarter, strong outlook

Strong topline growth of 27.9% in FY24, with gross and EBIT margin expansion of 90bps and 70bps respectively

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10-May-24

Godrej Consumer Products (HOLD): Strong volume-led growth across markets

India business remains on strong footing; international markets too registered strong volume growth with improvement in margins

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10-May-24

Orient Electric (HOLD): Strong revenue; profitability falters

Healthy 20% topline growth with gross margin expansion of 250bps in Q4; EBITDA lower on EPR provisioning

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09-May-24

Hero Motocorp (HOLD): Healthy performance; await further clarity; maintain HOLD

Q4 revenue grew 15% YoY supported by double-digit volume gains YoY and realisation adding ~5%

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09-May-24

Alembic Pharma (HOLD): Strong margins; positives priced in

ALPM reported strong margin gains in Q4 on account of better utilisation of new facilities and traction in the US business

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09-May-24

Marico (BUY): Volume growth to pick up on improving demand scenario

Stable performance in domestic markets with consistent improvement in gross margins

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09-May-24

Kajaria Ceramics (BUY): Weak quarter on margin pressure, upbeat outlook

Q4 revenue/PAT short of our estimates by 3%/13% on intense competition from Morbi players in a weak demand environment

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09-May-24

HCL Technologies (HOLD): Weak guidance leads to subdued outlook

Revenue growth guidance of 3-5% for FY25, likely to be similar to FY24

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09-May-24

Dr Reddy's Labs (HOLD): Driven by North America; India continues to underperform

DRRD reported largely in-line revenue/EBITDA, but higher tax aided in PAT beat

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08-May-24

Voltas (HOLD): Margins falter; domestic business promising

Healthy topline growth of 42.1% in Q4 as summer sets in, but EBITDA margin contracted 280bps in Q4 and 220bps in FY24

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08-May-24

Ambuja Cements (HOLD): Cost savings key driver; upside priced in, retain HOLD

Standalone Q4 revenue grew 12% YoY backed by strong volume gains of 17%, partially offsetting weak realisations

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08-May-24

Lupin (HOLD): Stable margins; higher tax weighs on PAT

LPC delivered a healthy operational performance in Q4 with largely in-line revenue/PAT; higher tax impacted net profit

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08-May-24

KEC International (BUY): Good quarter, T&D to pull topline and margins; upgrade to BUY

Strong quarter with highest quarterly revenues of Rs 61.6bn, +11.6% YoY; management guides for 15% revenue growth in FY25

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08-May-24

Britannia Industries (BUY): Expect strong volume growth ahead

Subdued growth in Q4 and FY24; however, volume recovery seen in second half of FY25

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08-May-24

Mphasis (HOLD): Modest growth; BFSI yet to pick up

Regional banks and mortgages business will continue to draw down the overall BFSI segment

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07-May-24

Kotak Mahindra Bank (BUY): Healthy business growth; other income supports rise in PAT

Healthy business growth in Q4, deposits outpaced credit growth driven by TDs, NIIs remained modest while boost in other income aided PPOP

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07-May-24

Persistent Systems (HOLD): A discretionary push to drive the growth trajectory

Cost take-out projects and vendor consolidation to be the prime growth driver for PSYS in FY25

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04-May-24

ACC (HOLD): Healthy performance largely priced in; maintain HOLD

Q4 revenue growth of 13% YoY boosted by 22% uptick in volumes (unadjusted to MSA) while realisations moderated ~7%

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03-May-24

Dabur India (BUY): Steady performance during the quarter

Rural markets continue to grow ahead of urban owing to increased penetration and improved product portfolio

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03-May-24

KEI Industries (HOLD): Addressing capacity limitations; maintain HOLD

Q4 revenue jumps 19% YoY with 10bps EBITDA margin boost. FY24 revenue up 17%, driven by robust infrastructure and real estate demand

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03-May-24

Blue Star (BUY): UCP growth strong, margin outlook healthy

Topline growth of 21.4% achieved in FY24, with gross margin expanding 120bps and EBITDA margin 70bps

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03-May-24

Ajanta Pharma (BUY): Strong margins; growth momentum to continue

Strong quarter with EBITDA/PAT beat of 8% each, led by reduction in API prices, logistics costs and reduced intensity of US price erosion

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03-May-24

Orient Cement (SELL): Listless show; no major performance triggers

Q4 revenue growth subdued at 1% YoY as volumes stay flat YoY, guarding realisations a challenge

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02-May-24

Greenpanel Industries (HOLD): Dismal quarter; not out of the woods yet

Sharp contraction in operating profit (-33% YoY) for sixth consecutive quarter on supply overhang in MDF industry and higher timber prices

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02-May-24

ICICI Bank (HOLD): Higher operational efficiency/lower provision aid PAT

NII grew 2%/8% QoQ/YoY due to moderation in credit growth, while PAT grew 4%/17% QoQ /YoY supported by lower opex and provision

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30-Apr-24

Ultratech Cement (BUY): Strong growth; cost savings drive margins; maintain BUY

Strong volume gains of ~11% YoY push revenue growth of 9% even though realisation falls by 3.5%

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30-Apr-24

Havells India (HOLD): Healthy quarter; high valuations – downgrade to HOLD

Healthy 12% topline growth with EBITDA margin expansion of 90bps in Q4; though raw material prices have started inching up

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30-Apr-24

Gujarat State Petronet (HOLD): Downgrade to Hold, decoding HP Gas grid tariff order

Sharp tariff cut due to recognition of higher volumes, adjustment of past excess revenue and extension of pipeline’s economic life

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29-Apr-24

Indusind Bank (BUY): Stable performance

Healthy business growth supported by CFD aided 16% YoY rise in Q4 income, while higher opex led to flat PPOP (1% QoQ)

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29-Apr-24

Aditya Birla Sun Life AMC (HOLD): Better quarter

QAAUM grew 21% YoY to Rs 3.3tn in Q4 with equity assets rising even faster at 31%; however, market share declined

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29-Apr-24

SBI Card (HOLD): Trend of lower NIM, higher credit cost persists

Credit cost soared 50% YoY to Rs 9.4bn (7.9% of loans) in Q4; stress expected to continue in FY25 as well

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29-Apr-24

Axis Bank (HOLD): Moderate business growth; PAT supported by other income

NII growth remained subdued at 11% YoY on higher cost of funds in line with moderate business growth; credit/deposit grew 14%/13% YoY

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27-Apr-24

SBI Life (BUY): Expect market dominance to continue

FY24 APE growth strong at 17% YoY with ULIPs forming 60% of total; continues to lead the market with 23.3% share in individual APE

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27-Apr-24

UTI AMC (HOLD): Core profit in line; maintain HOLD

Q4 QAAUM grew 22% YoY to Rs 2.9tn, but equity and hybrid schemes combined saw sustained outflows

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27-Apr-24

Maruti Suzuki (HOLD): Steady performance, but steep valuations; downgrade to HOLD

Q4 volumes grew 13% YoY driven by healthy demand for SUVs; rural demand for lower-end segment shows no signs of revival

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27-Apr-24

Supreme Industries (HOLD): In-line Q4FY24; pipe volume guided to grow at healthy rate in FY25

Q4 broadly in line with our estimates as strong pipe volume offset the impact of weak pipe margin

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26-Apr-24

Hindustan Unilever (BUY): Subdued performance; expect gradual recovery

Volume growth remained at 2%; revenue growth flat owing to pricing action in key portfolios

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26-Apr-24

Bajaj Finance (BUY): Obstacles for a powerful player on a protracted journey

Rising cost of funds dent NIM; we factor in a further 43bps/13bps YoY decline in FY25/FY26

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26-Apr-24

Glenmark Life Sciences (HOLD): Weak quarter; maintain HOLD

Lower-than-expected 4Q due to Red Sea disruptions. EBITDA/PAT were 17% below consensus estimates

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26-Apr-24

Dalmia Bharat (BUY): Disappointments all over; but paving the way for growth

Q4 revenue grew at a steady 10% YoY supported by ~19% volume growth while realisations weakened 7% YoY/QoQ

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25-Apr-24

Nestle India (HOLD): Robust growth across portfolio

Strong growth witnessed across geographies driven by sustained growth in domestic markets and healthy double-digit growth in exports

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25-Apr-24

Reliance Industries (BUY): Aligned with India growth story through energy/consumer biz

Company delivered 26% EBITDA CAGR over FY21-FY24 clocking 29% CAGR in cyclical business and 22% in consumer businesses

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25-Apr-24

Infosys (HOLD): Muted performance; weak discretionary delays recovery

Cost optimisation/vendor consolidation to be the prime growth driver for Infosys in FY25

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25-Apr-24

Nippon Life India AMC (BUY): Onward and upward; upgrade to BUY

QAAUM growth robust at 47% YoY to Rs 4.3tn at end Q4 led by a strong equity segment (+63% YoY) constituting 49% of the total

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25-Apr-24

360 One (HOLD): Strong quarter, but price runup limits the upside

ARR AUM and ARR revenue grew 36% and 28% YoY respectively in Q4; strong commentary for growth in the medium term

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24-Apr-24

Tata Consumer Products (BUY): Strong performance in international markets

Growth businesses continue to maintain high growth trajectory; new acquisitions to fuel growth going ahead

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24-Apr-24

ICICI Prudential Life (HOLD): Strong growth but VNB margin dwindles

APE grew 10% YoY in Q4 (+5% YoY in FY24) beating our estimate; market share gain in individual APE is a key positive

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22-Apr-24

HDFC Bank (BUY): Realigning business dynamics in 4Q to improve profitability

Recovery in deposit mobilisation led to lower C/D ratio while better yield on asset helped NIM (R) stabilise; asset quality remains stable

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20-Apr-24

HDFC AMC (HOLD): Another robust quarter but rich valuation caps upside

Higher equity share drove strong overall QAAUM growth of 36% YoY in FY24; expansion in equity QAAUM market share a key positive

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19-Apr-24

Bajaj Auto (SELL): Spotless performance priced in by rich valuations

Q4 revenue grew 29% YoY backed by healthy domestic 2W volume growth and decent realisation gains. Export volume was steady

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18-Apr-24

HDFC Life (BUY): Subdued quarter

HDFC Life’s APE growth muted in FY24 despite traction in Tier-2/-3 cities; cut our estimates by 8% each for FY25/FY26

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16-Apr-24

Tata Consultancy Services (HOLD): Strong deal flow but near-term softness to continue

TCS gained market share through vendor consolidation/cost optimisation programmes

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28-Mar-24

Pricol (NOT RATED): Management meet note – Balancing margins and growth

PRICOL is a global-level manufacturer of instrument clusters and fuel-level sensors for 2/3W with ~70% of its revenue from cluster segment

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28-Mar-24

Dalmia Bharat (BUY): All set for healthy growth; upgrade to BUY

DBL gears up for healthy business growth backed by 20% clinker capacity addition by FY26 across its operations

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27-Mar-24

Jai Balaji Industries (NOT RATED): Management meet takeaways – Jai Balaji’s new avatar

JBIL turned around operations improving plant utilisation and efficiency, and restored its balance sheet by restructuring debt

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27-Mar-24

Crompton Greaves (BUY): Crompton 2.0 on track

ECD segment expected to do well on the back of a strong summer and fans premiumisation; solar pumps a big opportunity

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26-Mar-24

Prince Pipes & Fittings (HOLD): Faucetware acquisition to accelerate bathware growth engine

PRINCPIP acquired the faucetware brand Aquel and the manufacturing facility from Klaus Waren Fixtures for Rs 600mn

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21-Mar-24

Rushil Decor (NOT RATED): Management meet takeaways – Aggressive growth plan

RDL maintained its guidance of trebling revenue over the next five years by increasing its presence across wood panel segments

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20-Mar-24

ICICI Prudential Life (HOLD): Green shoots of growth

Individual APE market share grew to 10%/12.4% in Jan/Feb’24 from 8.7% in 9MFY24 – a positive surprise

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11-Mar-24

IDFC First Bank (BUY): Ambitious growth outlook

Management targets credit/deposit CAGR of 20%/25% over FY24-FY29; NIM to stabilise at current mark with upward bias (6.4% in Q3FY24)

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26-Feb-24

Greenlam Industries (HOLD): Management meet – Topline to strengthen post capex drive

Greenfield laminate plant in Andhra Pradesh to aid market share gains for GRLM in both export and domestic markets

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21-Feb-24

ABB India (HOLD): Ends the year on a high note

Healthy Q4 led by growth across segments; order inflows swelled 35% YoY and backlog held strong at Rs 84bn

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19-Feb-24

JK Lakshmi Cement (SELL): Volumes slow, headwinds continue – retain SELL

Q3 volumes grew only 2% YoY due to cold weather and construction halt in northern markets; realisations only steady despite weak volume

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16-Feb-24

IRM Energy (NOT RATED): Management meet takeaways – Volume growth potential

Potential to double volumes to close to 1mmscmd in FY25 and grow to 1.5mmscmd in FY27, as per management

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15-Feb-24

Mahindra & Mahindra (BUY): Healthy volume-led growth

Q3 revenue grew 17% YoY led by 11% blended volume growth and supported by 5% higher realisations

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15-Feb-24

Crompton Greaves (BUY): Slowdown at BGAL weighs on quarter

Strong Q3 topline from higher fan, lighting and pump sales, but EBITDA margin fell 120bps YoY on ad expenses and weakness in BGAL

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13-Feb-24

Eicher Motors (HOLD): Launch momentum continues

Q3 revenue grew 13% YoY driven by 10% higher realisations from a better product mix; volume growth muted

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13-Feb-24

Hindware Home Innovation (BUY): Tough quarter but outlook healthy

EBITDA fell 35% short of our estimate due to tepid demand climate and steep margin compression across segments

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13-Feb-24

Cera Sanitaryware (HOLD): Weak quarter on soft demand, marketing expense

Q3 EBITDA fell 18% YoY and missed our estimate by 28% on subdued demand and higher brand & sales promotion expense

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13-Feb-24

Aurobindo Pharma (HOLD): Strong margin uptick

Q3 EBITDA/PAT surged 68%/90% YoY led by growth in US/EM revenue and ~700bps jump in operating margin

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13-Feb-24

Siemens India (BUY): Strong topline, margins waver

Robust December quarter order flows and revenue, though margins contracted due to weakness in digital industries segment

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12-Feb-24

Bandhan Bank (BUY): Recovery on track

Healthy business growth drives 21% YoY rise in Q3 NII, though muted other income induces 14% fall in PPOP

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12-Feb-24

Indraprastha Gas (BUY): Legacy UP, new GAs can offset slowdown, reiterate BUY

Factoring in faster e-transition for DTC buses and passenger vehicles in Delhi, we lower FY23-FY26 volume growth to 5.9% from 8.4%

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12-Feb-24

Zydus Wellness (HOLD): Seasonally weak quarter

Q3 revenue dipped 3% YoY owing to dismal performance in food & nutrition segment

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12-Feb-24

Amber Enterprises (SELL): Persistent near-term challenges; cut to SELL

Q3 a muted quarter with net loss of Rs 5mn due to lower revenue and higher interest and depreciation costs

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12-Feb-24

Thermax (HOLD): Improving order outlook; maintain HOLD

Q3 operating performance stable with EBITDA margin inching up 20bps YoY despite a Rs 100mn hit from cost overruns

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12-Feb-24

Hero Motocorp (HOLD): Healthy quarter but positives priced in

Q3 revenue grew 21% YoY steered by 17% growth in motorcycle volumes and 22% in scooters; realisations up 3%

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10-Feb-24

Divi's Labs (SELL): Healthy margin recovery, heady valuations

Q3 revenue grew 9% YoY on 25% rise in custom synthesis business; API and nutraceuticals stayed soft

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10-Feb-24

Alkem Labs (SELL): Good quarter; cut to SELL on stretched valuations

Revenue grew 9% YoY in Q3 backed by strong India and ROW growth that offset lower US business

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10-Feb-24

The Ramco Cements (SELL): Tepid quarter, high capex overhang – retain SELL

Q3 revenue growth muted at 6% YoY due to poor demand; pricing pressure dampens realisations

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09-Feb-24

Power Grid Corp (BUY): In-line quarter, FY25 capex hiked; maintain BUY

Q3 PAT met estimates at Rs 40bn; 20% bump-up in FY25 capex target to Rs 150bn a key positive

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09-Feb-24

Tata Consumer Products (BUY): Strong run continues

Sustained revenue growth (+ 9% YoY) and margin expansion in Q3, propelled by robust India business

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09-Feb-24

LIC (HOLD): Solid quarter; valuations overdone – cut to HOLD

VNB margin improved 200bps YoY to 16.6% at end-9M, leading us to increase our FY24-FY26 estimates by 100-150bps

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09-Feb-24

Torrent Power (HOLD): Dull quarter; high valuations – maintain HOLD

Q3 topline flattish with PAT contraction on lower RLNG trading gains; bright spots from higher PLFs and lower T&D losses

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09-Feb-24

Escorts (SELL): Weakness persists – maintain SELL

Q3 tractor volumes dipped 7% YoY, with loss of domestic share as fall was higher than industry decline

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09-Feb-24

Lupin (HOLD): All-round beat; margins sustain – raise to HOLD

Strong Q3 with EBITDA/PAT of Rs 10.2bn/Rs 6.1bn, beating consensus by 17%/42%

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08-Feb-24

Star Cement (HOLD): Cost savings commendable, growth intact

Steady growth in a challenging quarter aided by 7% YoY volume pickup; realisations softened

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08-Feb-24

Nestle India (BUY): Broad-based growth across product categories

Domestic sales continue to underpin growth, rising 8.9% YoY in the December quarter on better pricing, volumes and product mix

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08-Feb-24

Cummins India (BUY): Powering ahead; maintain BUY

Strong Q3 topline growth of 16% YoY despite lower exports, along with 330bps gross margin expansion as input costs eased

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07-Feb-24

Britannia Industries (BUY): Faster volume growth to boost profitability

Urban markets grew ahead of rural centres largely driven by premium portfolio; volume growth revived to ~5.5% YoY in Q3

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07-Feb-24

AIA Engineering (HOLD): Soft quarter, volume growth uncertain; cut to HOLD

Q3 topline and margins contracted due to change in product mix; FY24 volume guidance cut from 310,000t to 300,000t

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07-Feb-24

Syrma SGS (HOLD): Margin slide continues; retain HOLD

Q3 topline growth strong at 38% YoY but EBITDA margin shrank 380bps to 5.5% on weak product mix

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06-Feb-24

Orient Cement (SELL): Topline muted as volumes decline

Q3 revenue growth subdued at 3% YoY as volumes fell 3% amid state elections and festive season

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06-Feb-24

ERRATA: State Bank Of India (BUY): Pension one-off hurts profitability

Strong business growth in Q3 but one-off pension and ex-gratia provision of Rs 71bn saw net profit drop 36% YoY

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06-Feb-24

Ashok Leyland (BUY): Margins continue to improve, maintain BUY

Q3 revenue grew 3% YoY to Rs 92.7bn in a challenging quarter, aided by 3% higher realisation

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06-Feb-24

Prince Pipes & Fittings (HOLD): Lacklustre quarter on sustained market share loss

Q3 PAT came in 36% below our estimate on continued market share bleed and margin pressure

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06-Feb-24

Greenlam Industries (HOLD): Soft quarter on tepid demand environment

Q3 PAT missed our estimate by 31% on weak laminate volumes and sharp increase in capital charge

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05-Feb-24

VST Tillers Tractors (HOLD): Poor demand dampens performance

Q3 revenue down 20% YoY on steep 33% volume decline due to anaemic rural demand

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05-Feb-24

Alembic Pharma (HOLD): Healthy quarter; PAT beat on low tax rate

Q3 EBITDA ahead of consensus by 4% on healthy margins but strong PAT beat of 22% came from lower tax rate

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05-Feb-24

Century Plyboards (HOLD): Margin stress across segments

Weak Q3 came as a big negative surprise considering management’s upbeat outlook in last earnings call

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05-Feb-24

Ambuja Cements (HOLD): Healthy quarter, sustainability key; retain HOLD

Standalone Q3 revenue grew 7% YoY as volumes increased 7%, ushioning flattish realisations

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05-Feb-24

JSW Steel (HOLD): Progressing on expansion but valuations fair

Q3 below consensus and also weaker than peers amid higher competitive pressure from imports and lower exports

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03-Feb-24

Shree Cement (HOLD): Healthy quarter, expensive valuations

Q3 revenue growth of 20% YoY backed by sharp 11% volume uptick to 8.9mt

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03-Feb-24

Somany Ceramics (BUY): Lacklustre demand dulls performance

Q3 EBITDA miss of 7% on tepid demand environment and rise in competitive intensity from Morbi players

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03-Feb-24

Jindal Steel & Power (HOLD): Valuations overdone; downgrade to HOLD

Q3 results ahead on higher per unit EBITDA margin; first coil from HSM represents next milestone on Angul growth project

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02-Feb-24

Godrej Consumer Products (HOLD): Consistent volume growth; cut to HOLD post rally

Sustained quarterly performance amid macro headwinds in domestic markets and currency devaluation in select global markets

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02-Feb-24

Greenply Industries (BUY): Strong performance on fast ramp-up of MDF plant

EBITDA beat estimates (+6%) in Q3 on quick ramp-up of MDF plant in a challenging environment

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02-Feb-24

V-Guard Industries (HOLD): In-line quarter

Q3 topline up 19% YoY on low base but consumer demand still soft; margins expand on lower input prices

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02-Feb-24

Orient Electric (HOLD): Slow quarter; Hyderabad plant to spur growth

Topline flattish YoY due to high base and soft demand for fans; EBITDA margin lower on advertising expenses

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02-Feb-24

ACC (HOLD): Strong margins; cut to HOLD on full valuations

Q3 revenue growth of 8% YoY bolstered by 16% uptick in volumes while realisations moderated 5%

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01-Feb-24

Greenpanel Industries (HOLD): Dismal Q3FY24; No sigh of relief for MDF in near-future

Sharp contraction in operating profit (-34% YoY) for fifth consecutive quarter owing to supply-side pressure in MDF industry

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01-Feb-24

Dabur India (BUY): Steady growth across portfolios

Consistent performance across segments and markets with 7% YoY revenue growth despite delayed winter and macro headwinds

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01-Feb-24

Sun Pharma (HOLD): Strong quarter driven by specialty business

Strong quarter with revenue/EBITDA in line and reported PAT 4% ahead of Bloomberg consensus

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01-Feb-24

Dixon Technologies (BUY): Mobile business dials up growth; maintain BUY

Q3 revenue up 2x YoY led by robust growth in mobile & EMS segment; EBITDA margin dips 80bps on higher input costs

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31-Jan-24

Maruti Suzuki (BUY): Healthy all-round performance – raise to BUY

Q3 volumes grew 8% YoY driven by continued demand surge for SUVs; we expect sustained outperformance

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31-Jan-24

Kajaria Ceramics (HOLD): Soft demand, intense competition mar quarter

Q3 revenue/PAT short of our estimates by 4%/13% on tepid demand climate and intense competition from Morbi players

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31-Jan-24

Voltas (HOLD): UCP improving, Qatar business a dampener

Q3 revenue growth strong at 31% YoY but challenges in international EMP business cause net loss of Rs 304mn

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31-Jan-24

KEC International (HOLD): Pipeline robust, margin improvement delayed

Strong Q3 led by T&D and civil businesses, though rail revenue was subdued due to increasing competition

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31-Jan-24

Dr Reddy's Labs (HOLD): Buoyant US sales drive performance

Healthy quarter with revenue/PAT coming in 3%/4% ahead of consensus; US sales a positive surprise, rising 6% QoQ

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31-Jan-24

Blue Star (BUY): Purple patch continues; maintain BUY

Strong topline growth of 25% YoY in Q3 aided by festive season sales; margin expansion continues

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31-Jan-24

Aditya Birla Sun Life AMC (HOLD): Double-digit growth but market share bleed continues

QAAUM grew 11% YoY to Rs 3.1tn in Q3 with equity assets rising even faster at 13%; however, market share inched down

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30-Jan-24

Larsen & Toubro (BUY): Order inflow guidance raised; maintain BUY

Q3 order inflows and topline strong but margins declined due to legacy orders in the mix

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30-Jan-24

Astral (HOLD): Mixed quarter, guidance broadly intact

Topline in line at Rs 13.7bn; miss at EBITDA level on one-off expense and MTM inventory loss

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30-Jan-24

Marico (BUY): Domestic business still lacklustre

Dull Q3 performance in domestic as well as international markets amid a challenging operating environment

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30-Jan-24

Nippon Life India AMC (HOLD): Strong growth but upside capped – cut to HOLD

QAAUM growth robust at 29% YoY in Q3 fuelled by 10%+ share of industry-wide net equity flows (ex-arbitrage and index)

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30-Jan-24

NTPC (BUY): Normal quarter, aggressive expansion; maintain BUY

Q3 power generation grew 14% YoY with bump-up in PAT to Rs 45.7bn due to movement in regulatory deferral balance

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30-Jan-24

ITC (BUY): Cigarette and paperboard businesses disappoint

Cigarette business had a soft quarter while FMCG-others remained resilient, and hotels posted its best quarter on a high base

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30-Jan-24

Apollo Pipes (SELL): Disappointing result on all fronts

Weak Q3 performance on rise in competitive intensity in a tepid demand environment

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30-Jan-24

UTI AMC (HOLD): Core earnings miss estimates

Q3 AUM growth in line at 13% YoY to Rs 2.7tn, but equity and hybrid schemes combined saw sustained outflows

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29-Jan-24

Bajaj Finance (BUY): Mixed quarter; maintain BUY

Rural B2C business remains a sore point with overall credit costs climbing 15bps YoY in Q3 to 1.7%

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29-Jan-24

Tata Steel (BUY): UK transition and TSK2 to bolster growth; maintain BUY

Q4 results broadly in line; India beat our estimates with higher margins on leaner coking coal blend and benefit of inventory swing

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29-Jan-24

Dalmia Bharat (HOLD): Soft prices constrain growth

Q3 revenue grew at a slow 7% YoY supported by 8% volume growth while realisations stayed flat

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27-Jan-24

TVS Motor (BUY): On a fast track – raise to BUY

ICE 2W volume growth beats industry at 33% YoY, supporting 26% revenue growth in Q3

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27-Jan-24

Bajaj Auto (SELL): Healthy revival but priced in; downgrade to SELL

Q3 revenue grew 30% YoY backed by healthy domestic 2W volume growth and revival in exports

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27-Jan-24

Mahanagar Gas (BUY): Volume growth accelerating, reiterate BUY

Q3 beats consensus with sharp uptick in volume growth and stable margins despite lower APM gas allocation

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27-Jan-24

SBI Card (HOLD): Asset quality concerns persist; downgrade to HOLD

Credit cost soared 66% YoY to Rs 8.8bn in Q3 amid industry-wide stress in unsecured loans; uncertainty persists

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27-Jan-24

SBI Life (BUY): ULIP-led growth; maintains market leadership

9MFY24 APE growth strong at 17% YoY with ULIPs forming 61% of total; continues to lead the market with 26.5% share in individual APE

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25-Jan-24

Cipla (BUY): Healthy revenue growth, strong margins

Q3 strong with EBITDA beat of 9% over consensus, though impairment charges of Rs 1.9bn limited PAT outperformance vs consensus

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25-Jan-24

DCB Bank (BUY): NII sequentially flat on high interest cost

NII flat QoQ (6%YoY) in Q3 on higher interest expenses; treasury gains and moderate opex aided 9% YoY PPOP growth

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25-Jan-24

Laurus Labs (SELL): Challenges galore – cut to SELL

Fourth straight quarterly miss with upsets on all fronts; Q3 revenue/ EBITDA well short of Bloomberg consensus by 13%/79%

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24-Jan-24

JK Cement (HOLD): Healthy performance but priced in

Q3 revenue grew 22% YoY to Rs 27.8bn as new grey cement capacities aided 17% volume growth and realisation improved 5%

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24-Jan-24

Axis Bank (BUY): Profits subdued despite strong business growth

NII growth subdued at 9% YoY despite credit/deposit growth of 22%/18%, due to a high cost of funds

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24-Jan-24

Hitachi Energy (SELL): In-line quarter but valuations overdone; cut to SELL

Q3 EBITDA margin rose 150bps YoY to 5.3% as chip constraints eased, leading to 5x jump in PAT off a low base

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24-Jan-24

Glenmark Life Sciences (HOLD): Strong margins make up for subdued revenue growth

Q3 revenue growth a miss at 6% YoY but robust 670bps expansion in gross margin helped mitigate the impact on bottomline

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24-Jan-24

Kotak Mahindra Bank (BUY): NIM intact QoQ; higher provisions dull profit

Business growth held strong in Q3, but treasury losses and higher provisions weighed on PAT (-6% QoQ)

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24-Jan-24

KEI Industries (HOLD): Decent quarter; maintain HOLD

Q3 revenue grew 16% YoY with 30bps EBITDA margin expansion; order book up 11% on strong domestic demand

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24-Jan-24

Havells India (BUY): Slow quarter but summer could bring cheer; maintain BUY

Q3 revenue grew just 7% YoY on subdued demand; high A&P spend hurt margins even as Lloyd’s cash burn continued

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23-Jan-24

ICICI Bank (BUY): Temporary blip; maintain BUY

Q3 PAT up 24% YoY but flat QoQ due to higher provisions and modest growth in NII

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23-Jan-24

RBL Bank (BUY): Healthy business growth, stable asset quality; raise to BUY

Healthy business growth led to 35% YoY (+5% QoQ) rise in Q3 PPOP; PAT grew 11% YoY but fell 21% sequentially on higher provisions

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23-Jan-24

Reliance Industries (BUY): Jio 2.0 acceleration vital for next wave of growth

Q3 EBITDA broadly in line at segment level supported by sharp growth in retail, oil and gas, and resilience in oil-to-chemicals

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22-Jan-24

Ultratech Cement (BUY): Cost efficiencies in focus; raise to BUY

Cost savings of 3% YoY boosted Q3 earnings despite slow volumes (+5%) and flat realisations

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22-Jan-24

Supreme Industries (HOLD): Results broadly in line; guidance upgraded on strong pipe demand

Q3 broadly in line with our estimates; strong pipe performance for the eighth consecutive quarter

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20-Jan-24

Hindustan Unilever (BUY): Volume growth subdued in a challenging environment

Delayed rural recovery and elevated competition from regional players impacted volume recovery in Q3

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19-Jan-24

IndusInd Bank (BUY): Stable performance

Strong business growth aided a 10% YoY rise in Q3 PPOP despite higher opex; PAT increased 17% to Rs 23bn

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19-Jan-24

360 One (BUY): Steady quarter; raise to BUY post correction

ARR AUM and total revenue grew 33% and 14% YoY respectively in Q3; flows also stayed strong at Rs 89bn

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19-Jan-24

Finolex Industries (HOLD): Weak quarter on slow recovery in agri pipe demand

Missed our Q3 EBITDA estimate by 16% on slow recovery in agri pipe demand

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19-Jan-24

Polycab India (BUY): Fair quarter but I-T search clouds multiples

Revenue growth reasonable at 17% YoY, but EBITDA margin falls on lower exports and higher advertising expenses

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18-Jan-24

Federal Bank (BUY): Higher other income supports PAT growth

Business growth healthy in Q3 despite deposit mobilisation challenges; PAT grew 25% YoY on higher other income

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18-Jan-24

ICICI Prudential Life (HOLD): Subdued growth

9MFY24 VNB margin contracted 500bps YoY to 26.7% owing to a change in product mix and cost pressures

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17-Jan-24

HDFC Bank (BUY): Margin pressure dampens performance

Operationally weak December quarter due to elevated cost of funds and increased provisions

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12-Jan-24

HDFC Life (BUY): Muted quarter; clear growth roadmap a positive

9MFY24 growth low but management’s clear roadmap for growth raises confidence on medium-term prospects

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11-Jan-24

HDFC AMC (HOLD): Ticks most boxes but upside potential limited

Actively managed equity QAAUM grew 40% YoY, driving 24% AUM growth in Q3; topline growth strong at 23%

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02-Jan-24

LT Foods (NOT RATED): Appetite for growth

Leading domestic player in basmati rice with strong presence in export markets and popular brands, including Daawat, Royal and Ecolife

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22-Dec-23

Siemens India (BUY): Positive outlook continues; Maintain BUY

SIEM ended FY23 on a strong note in terms of order inflows, backlog, revenues, profitability, and cash flows

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15-Dec-23

Thermax (HOLD): Focus on energy transition

Energy transition identified as focus for next five years, especially areas of coal gasification, biomass, bio-CNG and green hydrogen

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14-Dec-23

Nippon Life India AMC (BUY): Management call – MF industry to grow at smart clip

Management expects India’s MF industry to grow 15% in medium term assuming 10% rise in annual inflows

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14-Dec-23

ITC (BUY): Analyst meet takeaways – Multiple levers for growth

Management is guiding for 80-100bps EBITDA margin expansion every year from cost cuts, scale and premiumisation

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12-Dec-23

Bandhan Bank (BUY): Thrust on secured business to aid asset health

Expect 19% credit and deposit CAGR over FY23-FY25 on retail-led growth and targeted increase in secured book

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04-Dec-23

Polycab India (BUY): Management meet takeaways – Brand refresh underway

New brand identity is aimed at driving demand and spurring FMEG business; EHV capacity addition on track

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30-Nov-23

TTK Prestige (NOT RATED): Management call – Sustained leadership in key categories

Management confident of robust demand recovery through H2FY24 as festive and wedding seasons coincide

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29-Nov-23

Siemens India (BUY): Strong quarter, positive outlook – raise to BUY

Q4 revenue grew at robust 25% YoY with 100bps EBITDA margin expansion and 50% rise in PAT to Rs 5.7bn

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29-Nov-23

LT Foods (NOT RATED): Analyst meet takeaways – Eyeing market share gains

Leading basmati rice player with a strong presence in India (30% market share) and exports to 80+ countries

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24-Nov-23

Axis Bank (BUY): Analyst meet takeaways – Balancing growth and returns

Focused on balancing growth ambitions and risk-adjusted returns; loan book guided to log an 18% CAGR over FY23-FY25

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17-Nov-23

SAIL (HOLD): Profit outlook restrained; maintain HOLD

Q2 results flattered by prior-period rail revenue recovery; underlying EBITDA margin flattish sequentially while volume recovered

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16-Nov-23

Bajaj Finance (BUY): Impact of RBI strictures likely to be marginal

RBI has instructed BAF to stop disbursing loans under two digital products, the ‘Insta EMI Card’ and ‘eCOM

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15-Nov-23

Tata Steel (BUY): India growth to take centre stage; maintain BUY

Profit has likely bottomed in Q2 as operations in Netherlands return to breakeven and India’s H2 demand outlook looks up

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13-Nov-23

Eicher Motors (HOLD): Solid quarter; striving to fend off competition

Q2 revenue grew 16% YoY backed by double-digit volume uptick (+11%) and 5% higher realisations

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13-Nov-23

Mahindra & Mahindra (BUY): Auto segment continues to rev up

Net blended realisation per vehicle grew 6% YoY in Q2 and volumes increased 11%

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11-Nov-23

Lupin (SELL): Positive surprise from gSpiriva; valuations rich

Q2 EBITDA/PAT overtook consensus by 16%/25% backed by strong US business from gSpiriva launch and robust margins

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11-Nov-23

LIC (BUY): Weak quarter; focus on recouping market share

H1FY24 APE declined 10% YoY due to flat individual APE (up 20% ex-non-par) and a 25% drop in group business

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11-Nov-23

Ashok Leyland (BUY): On a winning wicket

Q2 net realisation per vehicle grew at healthy 6% to Rs 1,933k on price hikes of 1-2% in CVs

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10-Nov-23

Torrent Power (HOLD): Gas trading tapers

Q2 revenue and PBT flattish YoY as gas trading and power sales in the short-term market tapered

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10-Nov-23

Orient Cement (SELL): Volumes pick up; valuations still expensive

Q2 volumes recovered 15% YoY (-10% QoQ) to 1.4mt helped by below-normal rainfall and higher western region sales

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10-Nov-23

Star Cement (HOLD): Cost relief in an otherwise weak quarter

Monsoon impact in northeast markets kept Q2 volumes flat YoY at 0.9mt while realisation slipped 2%

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09-Nov-23

The Ramco Cements (SELL): Quarterly respite, challenges may continue

New capacities buoyed Q2 volumes by 39% YoY but realisations slipped 5%

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09-Nov-23

ABB India (HOLD): Sprinting along

Robust quarter with revenue up 31% YoY and 590bps EBITDA margin expansion aided by the robotics and robotics segments

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09-Nov-23

Power Grid Corp (BUY): In-line quarter; FY24 capex ramped up

Q2 revenue/PAT in line at Rs 104bn/Rs 38bn; ramp up of FY24 capex target to Rs 100bn from Rs 88bn a key positive

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09-Nov-23

Shree Cement (HOLD): Subpar quarter; earnings chasing valuations

Q2 volume growth of 10% YoY could have been higher but for a pursuit of realisation gains (+10%)

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08-Nov-23

VST Tillers Tractors (HOLD): Healthy performance across segments

Q2 revenue grew 19% YoY as volumes climbed 16% and realisation moved up 3%

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08-Nov-23

Alembic Pharma (HOLD): Higher opex from new facilities to keep a lid on margins

Q2 revenue ticked up 8% YoY as healthy sales in international markets supported by modest India business

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08-Nov-23

Cummins India (BUY): Strong operating performance; maintain BUY

Q2 gross/EBITDA margins expand 500bps/320bps YoY on lower input costs, sustained pricing and better product mix

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08-Nov-23

JK Cement (HOLD): Healthy performance; positive outlook

Q2 revenue grew 20% YoY to Rs 25.7bn as grey cement volumes surged 22% to 3.9mt

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08-Nov-23

Alkem Labs (HOLD): Sizeable margin gains; tax guided to reduce – raise to HOLD

Q2 EBITDA/PAT outstripped consensus by 44%/54% on higher margins, strong US growth and low taxes

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07-Nov-23

JK Lakshmi Cement (SELL): Some respite but challenges continue

Q2 topline grew 12% YoY led by ~10% volume growth; realisation flat due to price hikes in eastern region

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07-Nov-23

Zydus Wellness (HOLD): Subdued growth in a seasonally weak quarter

Flattish volume growth in Q2 owing to muted performance in glucose and sweetener categories

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06-Nov-23

Escorts (SELL): No major positive surprises; maintain SELL

Q2 tractor volumes dipped 7% YoY as sales flagged towards the quarter’s end after an initial pickup

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06-Nov-23

Hitachi Energy (HOLD): Chip constraints receding

Q2 EBITDA margin rose sequentially to 5.3% as chip constraints eased but PAT still down 33% YoY

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06-Nov-23

AIA Engineering (BUY): Volume spillover to FY25

Q2 sales flat YoY but operating leverage enables EBIDTA margin gains of 600bps to 29.5%

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06-Nov-23

Divi's Labs (SELL): Growth remains elusive; cut to SELL

Dull Q2 with EBITDA/PAT plunging 21%/29% YoY, missing consensus by a wide margin

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06-Nov-23

State Bank Of India (BUY): Wage provisions weigh on profits

Q2 PPOP growth dropped 23% QoQ owing to one-time wage revision provisions

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06-Nov-23

Jindal Steel & Power (BUY): Last leg of streamlining, reiterate BUY

Management revises expansion capex to factor in the addition of more downstream and project components to temper risk profile

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06-Nov-23

Thermax (HOLD): Sound operations, measured commentary

Q2 operating performance strong with 210bps YoY margin expansion, half of which management believes is sustainable

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06-Nov-23

Crompton Greaves (BUY): ECD robust; lighting and kitchen appliances falter

ECD revenue growth ahead of peers but lighting segment declines in Q2

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04-Nov-23

Dabur India (BUY): Steady growth and market share gains

Strong growth across categories except beverages which declined 10% YoY in Q2 due to uneven rainfall in North India

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04-Nov-23

Ambuja Cements (HOLD): Relatively weak show

Standalone Q2 revenue grew just 8% YoY (-16% QoQ) as net volumes dropped 9% (-18% QoQ)

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03-Nov-23

Hero Motocorp (HOLD): Poised for growth but upside capped

Q2 revenue grew 4% YoY driven by realisation gains as volumes stayed flat at 1.4mn units.

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03-Nov-23

360 One (BUY): Yields weak but outlook robust; maintain BUY

ARR AUM and revenue grew 31% and 10% YoY respectively, but ARR yield (calc.) slipped 13bps YoY to 63bps

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03-Nov-23

Orient Electric (HOLD): ECD-led growth; working capital rises on festive inventory

Q2 topline up 11% YoY as ECD grew 17%, gross margin up 400bps; working capital cycle doubles due to festive stocking

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03-Nov-23

Godrej Consumer Products (BUY): Strong, sustained volume-led growth in India business

Volume-led growth continues in India business at 11% YoY in Q2; margin expands despite elevated media spend

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03-Nov-23

ACC (BUY): Cost savings boost margin; upgrade to BUY

Q2 volumes flat YoY (-15% QoQ) at 6.9mt due to flood impact in key markets

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02-Nov-23

Syrma SGS (HOLD): Miss on margins; downgrade to HOLD

Q2 topline growth robust at 52% YoY but lower share of ODM business drove gross margin down 690bps

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02-Nov-23

Britannia Industries (BUY): Margin expands despite muted growth

Another soft quarter from BRIT (revenue up just 1% YoY), though EBITDA margin expanded due to lower input cost and savings

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02-Nov-23

KEC International (HOLD): Interest cost mars quarter; strong pipeline for H2

Q2 saw in-line margins but PAT was impacted by high interest cost; margins expected to improve in H2

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02-Nov-23

Sun Pharma (HOLD): Healthy quarter; better mix supports gross margin

Q2 revenue/PAT grew 11%/5% YoY to Rs 122bn/Rs 24bn, largely in line with consensus

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02-Nov-23

Petronet Lng (HOLD): PDHPP project unlikely to be value accretive

PLNG has approved the PDHPP project at a capital intensity of US$ 3,000-3,650/t

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01-Nov-23

V-Guard Industries (HOLD): Average topline, margins improve

Q2 topline up 15% YoY with gross margin expansion of 460bps; markets outside South India grew 11%

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01-Nov-23

DCB Bank (BUY): Steady growth

Q2 advances grew 19% YoY led by agri and inclusive banking (AIB) and co-lending; NIM dipped 13bs QoQ on deposit repricing

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01-Nov-23

Tata Consumer Products (BUY): Strong performance; outlook positive

Q2 topline grew 11% YoY and EBITDA margin rose 150bps on sustained domestic growth and strategic international pricing

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01-Nov-23

KEI Industries (HOLD): Capacity addition to spur growth

Middling Q2 performance with easing capacity constraints; cables revenue healthy but margin lagged peers

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31-Oct-23

Larsen & Toubro (BUY): Strong run continues; maintain BUY

Strong show in Q2 led by highest ever order inflows of Rs 892bn (exit book of Rs 4.5tn), robust execution and working capital efficiency

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31-Oct-23

Ajanta Pharma (BUY): Buoyant margins but higher tax weighs on PAT

Strong Q2 gross/EBITDA margins at 75%/28% drove a 7% EBITDA beat, though higher tax pulled PAT 2% below consensus

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31-Oct-23

TVS Motor (HOLD): Continues to deliver

Q2 volume growth beats industry at 3.1%/13% YoY/QoQ with a focus on high-end products such as Apache and Raider

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31-Oct-23

Blue Star (BUY): On a purple patch

Sustained, strong performance marked by above-industry growth of 39% YoY in UCP segment along with higher margins in Q2

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31-Oct-23

Mahanagar Gas (BUY): Focus on volume growth a positive, upgrade to BUY

Q2 results in line but margin remains above the cycle average; we raise FY24 EBITDA by 11% factoring in a strong H1

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30-Oct-23

Marico (BUY): Muted revenue growth; margins expanded

Q2 revenue flattish YoY owing to a subdued demand environment and regional competition in select categories

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30-Oct-23

Nippon Life India AMC (BUY): Strong show continues

QAAUM growth robust at 23% YoY in Q2 fuelled by 11% share of industry-wide net equity flows (ex-arbitrage and index)

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30-Oct-23

Dr Reddy's Labs (HOLD): One-offs fuel PAT beat; India business still soft

Q2 revenue in line but PAT outdid consensus by 22% on account of PLI benefits, litigation settlement and interest income

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30-Oct-23

Aditya Birla Sun Life AMC (HOLD): Mixed set of numbers; maintain HOLD

QAAUM grew 10% YoY to Rs 3.1tn in Q2 with equity assets rising 9%; however, market share inched down

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30-Oct-23

Reliance Industries (BUY): Jio 2.0 key to growth momentum

Q2 results broadly in line, with continuing structural growth in both consumer businesses and resilience in cyclical energy businesses

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28-Oct-23

NTPC (BUY): No surprises; maintain BUY

Q2 a normal quarter with a flat topline of Rs 409bn and healthy PAT of Rs 39bn

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28-Oct-23

Maruti Suzuki (HOLD): Robust quarter but positives priced in

Q2 volume growth of ~7% YoY continued to beat the industry (~5%); we expect sustained outperformance

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28-Oct-23

Cipla (BUY): Beat on all fronts

Q2 EBITDA/PAT 14%/15% ahead of consensus underpinned by strong growth in US and India businesses

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28-Oct-23

SBI Card (BUY): Challenges persist despite spending frenzy

Credit card spends climbed 27% YoY to a record high of Rs 792bn in Q2; debut on UPI platform promising

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28-Oct-23

SBI Life (BUY): Strong showing

H1 APE growth strong at 21% YoY led by a rebound in ULIP and protection business during Q2

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27-Oct-23

Axis Bank (BUY): Steady growth but costs elevated

Q2 NII up 19% YoY led by strong business growth, aiding a 10% rise in PAT despite a spike in opex due to card-related costs

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26-Oct-23

Dixon Technologies (BUY): Strong quarter, even stronger outlook – upgrade to BUY

Q2 sales up 28% YoY led by a 77% upswing in mobiles & EMS business which offset slow lighting sales

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26-Oct-23

Nestle India (BUY): Analyst meet – Broader footprint lifting volume growth

Innovation and market penetration-led volume growth remain strategic focus areas; growing emphasis on rural markets

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25-Oct-23

RBL Bank (HOLD): Strong growth but priced in

Q2 credit growth rises 21% YoY led by the high-yielding retail book and recovery in deposit mobilisation to 13%

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25-Oct-23

Kotak Mahindra Bank (BUY): Mixed Q2; raise to BUY on low valuation, succession clarity

Strong business growth in Q2 but NIM down 35bps QoQ on higher deposit cost and liquidity buffer; other income muted

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23-Oct-23

ICICI Bank (BUY): Sustained outperformance; raise to BUY

Q2 NII grew 24% YoY despite higher deposit cost, while dividends from subsidiaries offset absence of treasury gains

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23-Oct-23

Hindustan Unilever (BUY): Soft topline but strong margin expansion

Q2 volume and value growth weak YoY owing to delayed rural recovery and heightened competition from regional players

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23-Oct-23

Amber Enterprises (HOLD): Healthy topline; RAC outlook still soft

Q2 topline up 23% YoY with better margins due to dry weather in an otherwise unseasonal quarter for cooling products

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23-Oct-23

JSW Steel (HOLD): Volume momentum from expansion but near-full valuation

Q2 result beat estimates on higher cost savings in standalone operations beyond coking coal reduction

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21-Oct-23

Glenmark Life Sciences (HOLD): Revenue in line but higher opex dampens margins

Q2 revenue in line at Rs 6bn but EBITDA/PAT 3%/6% below our estimates due to higher opex and a product mix change

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21-Oct-23

Voltas (HOLD): UCP upbeat but EMP plays spoilsport

Q2 mixed with UCP performing well (+ 15% YoY) but EMP continuing to post losses due to collection disputes

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21-Oct-23

Dalmia Bharat (HOLD): Cost respite in an otherwise muted quarter

Q2 volume growth slowed to single digits (7% YoY) owing to fierce competition in key operating regions

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20-Oct-23

Ultratech Cement (HOLD): Steady performance with no big surprises

Q2 revenue up 15% YoY backed by 16% rise in dispatches; realisations resilient despite volume push in a monsoon quarter

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20-Oct-23

ITC (BUY): FMCG and hotels continue to shine

FMCG business delivered strong topline (+8% YoY) growth in Q2 led by steady portfolio expansion

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20-Oct-23

IndusInd Bank (BUY): Strong growth with stable margins and asset quality

Despite higher opex, Q2 PAT increased 22% YoY to Rs 22bn driven by steady business growth

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20-Oct-23

Havells India (BUY): Q2 a miss but expect improvement ahead

Mixed quarter with 5% YoY declines in ECD and flat lighting but 8% growth in cable & wires and 9% in switches

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19-Oct-23

UTI AMC (HOLD): Equity flows yet to pick up

Q2 AUM grew 14% YoY to Rs 2.7tn but equity and hybrid schemes saw cumulative outflows for the fourth straight quarter

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19-Oct-23

Bajaj Auto (HOLD): On firm ground

Healthy product mix in 2Ws and buoyancy in 3Ws aid 6% YoY increase in Q2 revenue

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19-Oct-23

Nestle India (BUY): Strong all-round performance

Domestic business posted double-digit growth in Q3 with continued margin expansion

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19-Oct-23

Polycab India (BUY): Impressive run continues

Strong Q2 powered by 29% YoY growth in wires & cables business; FMEG set to improve gradually

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19-Oct-23

Federal Bank (BUY): Strong growth with improving return

Continued healthy business momentum in Q2, with reported PAT rising 35% YoY on lower provisions

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18-Oct-23

ICICI Prudential Life (HOLD): Growth subdued; raise to HOLD post correction

Q2 APE growth muted at 3% YoY due to a 15% drop in the ICICIBC channel; ULIP and protection businesses showed traction

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18-Oct-23

HDFC Bank (BUY): PAT strong despite margin compression

Q2 PAT grew 51% YoY supported by healthy other income and a lower tax rate

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17-Oct-23

Bajaj Finance (BUY): On a strong wicket; maintain BUY

Robust, broad-based AUM growth of 33% YoY to Rs 2.9tn at end-H1FY24; we raise our FY24/FY25 AUM forecast by 3%/4%

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17-Oct-23

Jio Financial Services (NOT RATED): Q2 earnings highlights – Fast-tracking growth

Multi-faceted business model backed by aggressive growth plans in lending, insurance broking and payments

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13-Oct-23

HDFC Life (HOLD): Mixed quarter; maintain HOLD

Q2 slightly short of our estimates; management expects a stronger H2 on new launches, growth in tier-2&3 markets and in bancassurance

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12-Oct-23

HDFC AMC (HOLD): Robust quarter but upside limited

Higher equity share drove robust QAAUM growth of 22% YoY in Q2; topline growth strong at 18%

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11-Oct-23

ERRATA: BOBCAPS Research | Bigbloc Construction (NOT RATED): Plant visit – Ramping up AAC capacity

Autoclaved aerated concrete (AAC) block production targeted to reach 0.5mn cbm per annum by end-FY24 at Wada plant

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11-Oct-23

Siemens India (HOLD): Innovation Day – Digitalisation key for manufacturing takeoff

SIEM has identified three broad trends in India: high public spending on infrastructure, pent-up private capex and rising decarbonisation

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04-Oct-23

Bajaj Finance (BUY): Making strides

Early data from BAF shows 33% YoY growth in H1 AUM, tracking above the full-year guided range of 29-31%

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28-Sep-23

DCB Bank (BUY): Improving prospects; BUY

Expect a strong 18% credit CAGR over FY23-FY25 (1.4x industry growth), supported by a better portfolio mix

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26-Sep-23

Elecon Engineering (NOT RATED): Plant visit – Focusing on value addition

ELCN has ~40% share in gearbox and components, catering to industries such as sugar, power, steel, cement, rubber and fertilisers

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26-Sep-23

Petronet LNG (HOLD): Cloudy medium-term demand visibility; HOLD

Volume revival surprised in H1FY24 but further upside constrained by higher availability of domestic gas in the near term

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25-Sep-23

Tata Steel (BUY): UK transition to dispel overhang, reiterate BUY

Decarbonisation of UK operation can sharpen competitiveness and add potential value of Rs 6-7/sh for TATA

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20-Sep-23

Orient Cement (SELL): Expansion woes, lofty valuations – cut to SELL

Expansion snags due to plant relocation to hamper medium-term growth as utilisation likely breaches 80% in FY25

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13-Sep-23

Avalon Technologies (NOT RATED): Export-focused EMS player

Electronics, engineering and design manufacturer largely catering to export markets; US a key geography at ~55% of revenue (FY23)

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13-Sep-23

RBL Bank (HOLD): Upside capped; HOLD

Expect pickup in retail loans and newer products to aid a 19% credit CAGR over FY23-FY25, with deposit CAGR of 15%

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08-Sep-23

JK Lakshmi Cement (SELL): AGM takeaways – Challenges persist; maintain SELL

Borrowing limit raised to Rs 70bn at AGM but resolution to hike inter-corporate transaction limit 4x to Rs 100bn rejected

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06-Sep-23

TTK Prestige (NOT RATED): Management call: Confident of demand recovery in H2

Management optimistic on festive-led demand revival in H2FY24; foresees no pricing action as commodity prices have eased

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01-Sep-23

Bajaj Finance (BUY): From strength to strength – initiate with BUY

Momentum across consumer, commercial, SME and mortgage lending to propel a 28% AUM CAGR over FY23-FY25E

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29-Aug-23

Reliance Industries (BUY): AGM takeaways – Long growth runway, reiterate BUY

Pivoted towards consumption and new-age technology in India and beyond for sustainable growth

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23-Aug-23

Crompton Greaves (BUY): Analyst meet – A full revamp

Lighting division moving to a new corporate structure, eyeing commercial orders, and pruning prices to spur volumes

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16-Aug-23

ITC (BUY): Robust growth and margins

Cigarettes business delivered sustained volume growth in Q1 at ~10% YoY; innovation remains in focus

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15-Aug-23

Aurobindo Pharma (HOLD): Broad-based growth; lower to HOLD post rally

Q1 revenue/EBITDA beat consensus by 4%/9% with adj. PAT (ex-one-off charge) running 15% ahead

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14-Aug-23

The Ramco Cements (SELL): Pressure on operational efficiencies to continue

New capacities (+2mt YoY) aid a 28% jump in Q1 volumes but pursuit of growth impacts realisations

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14-Aug-23

Crompton Greaves (BUY): Mixed quarter

ECD revenue growth at par with industry but lighting segment lagged peers in Q1

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12-Aug-23

SAIL (HOLD): Leverage remains an overhang; maintain HOLD

Q1 EBITDA/t drops 42% YoY to Rs 4.2k/t, reflecting the impact of high operating leverage

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12-Aug-23

Voltas (HOLD): UCP growth above industry, EMP losses continue

Q1 a mixed bag with UCP performing well (+ 16% YoY) while losses continued in the EMP segment

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11-Aug-23

ABB India (HOLD): Strong quarter, margins shine

Robust Q2 with revenue up 22% YoY and 420bps EBITDA margin expansion aided by the robotics and electrification segments

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11-Aug-23

Reliance Industries (BUY): FY23 annual report takeaways – Propelling growth

Key AR takeaways: an improving narrative for digital, missing granularity for retail and approaching target dates for new energy business

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11-Aug-23

Ambuja Cements (HOLD): Stepping on the pedal but growth priced in

Q1 consolidated topline grew 9% YoY as volumes increased 9% while realisations stayed flat

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11-Aug-23

LIC (BUY): Mixed quarter; maintain BUY

Q1FY24 individual APE declined 8% YoY but non-par business grew 22% (constituting 10.2% of individual APE vs. 7.8% in Q1FY23)

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10-Aug-23

Alkem Labs (SELL): International sales fuel growth; margin recovery positive

Q1 revenue/EBITDA a beat as international business outperformed; adj. PAT growth in line with consensus at 65% QoQ

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10-Aug-23

V-Guard Industries (HOLD): Strong quarter all through

All-round growth in Q1 led by non-South India markets that grew at 17% YoY

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09-Aug-23

ACC (HOLD): Synergies with Ambuja propel volumes

Robust volume-led performance in Q1 spurred by the MSA agreement between ACC and parent ACEM

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09-Aug-23

Siemens India (HOLD): All-round growth; clarity awaited on LV motors hive-off

Strong execution-led revenue growth of 14% YoY together with 190bps EBITDA margin expansion in Q3

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08-Aug-23

Dalmia Bharat (HOLD): Slow start; expected to catch up in H2

Q1 muted as DBL restricted supply to safeguard prices but still failed to stave off a decline in realisations (-3% YoY)

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08-Aug-23

Godrej Consumer Products (BUY): Strong volume-led growth with margin expansion

Volume-led growth continues in India business at 12% YoY in Q1; margin expansion seen across geographies

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08-Aug-23

360 One (BUY): Annual report analysis – Forging ahead

Shift from commission to recurring revenue model (ARR) paying off – the latter now contributes 61% of AUM and 67% of revenue at end-FY23

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07-Aug-23

Eris Lifesciences (BUY): In-line quarter; margins moving back on track

Q1 revenue/PAT in line but operating margin ahead of consensus at 36.4% (+395bps YoY)

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07-Aug-23

Mahanagar Gas (HOLD): Walking a tightrope; retain HOLD

Q1 ahead of consensus on margin surprise but soft CNG volumes for the third straight quarter worrying

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07-Aug-23

State Bank Of India (BUY): PAT surges on higher other income and cost control

Treasury gains buoyed the topline and together with lower opex and provisioning lifted Q1 PAT 178% YoY

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07-Aug-23

Britannia Industries (BUY): Increased regional competition hurts growth

Relatively soft quarter (revenue up just 8% YoY) due to stiffer local competition and sluggish rural growth

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07-Aug-23

Affle (India) (HOLD): Growth momentum to continue

Q1 revenue up 14% QoQ; device addition tepid but converted user base saw a sizeable ramp-up

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05-Aug-23

Lupin (SELL): Improvements visible; runup behind downgrade

Q1 a beat with revenue/EBITDA running 8%/25% ahead of consensus; gross margin improves to 65.9% (64.4 ex-licensing income)

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04-Aug-23

Orient Electric (HOLD): Reasonably healthy quarter

Q1 topline grew 14% YoY led by ECD, with gross margin up 290bps though EBITDA margin was flat on higher wages

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04-Aug-23

Blue Star (BUY): In-line numbers, steady growth ahead

Q1 UCP revenue beat the industry, rising 7% YoY on the back of B2B sales; EMP order book robust

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04-Aug-23

Zydus Wellness (HOLD): Poor showing in a seasonally strong quarter

Flattish revenue growth in Q1 largely driven by a subdued performance in Glucon-D and Complan

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04-Aug-23

Cummins India (BUY): Strong quarter; primed for rating transition

Domestic pre-buying buoys quarter; new emission norms delayed but KKC well positioned to manage the transition

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04-Aug-23

KEC International (HOLD): Healthy inflows, margin improvement ahead

Good Q1 with 28% YoY topline growth and 70bps EBITDA margin gains to 5.8%; management sees “improving trajectory of profitability”

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04-Aug-23

Dabur India (BUY): Volume growth visible in rural markets

Q1 revenue grew 11% YoY aided by strong growth across categories, except beverages that saw the impact of unseasonal rains

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03-Aug-23

Sun Pharma (HOLD): gRevlimid buoys performance; upside capped – cut to HOLD

Q1 revenue/EBITDA beat consensus by 2%/11%, but reported PAT missed estimates by 6% due to exceptional items

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02-Aug-23

AIA Engineering (BUY): Strong quarter, guidance maintained.

All-round beat with Q1 topline up 15% YoY, EBITDA margin expansion of 480bps and PAT up 43%

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02-Aug-23

Syrma SGS (BUY): Margin miss an aberration; guidance intact

Q1 topline growth robust at 54% YoY but margins falter on lower healthcare business

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02-Aug-23

Thermax (HOLD): Good quarter, healthy order flows

Good Q1 performance though legacy orders continue to weigh on infrastructure margins

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01-Aug-23

JK Lakshmi Cement (SELL): Another slow quarter; maintain SELL

Tepid volume growth of 5% YoY with little support from realisations kept Q1 revenue growth muted

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01-Aug-23

KEI Industries (HOLD): Capacity constraints mar quarter; lower to HOLD post runup

Core cables and wires business hampered by lack of capacity; likely to be addressed in coming quarters

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31-Jul-23

Marico (BUY): Soft performance; outlook remains strong

Q1 revenue dipped 3% YoY owing to destocking and trade scheme rationalisation

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29-Jul-23

Indraprastha Gas (BUY): Volume outlook soft near-term but healthy medium-term

Q1 results benefitted from uptick in margin above long-term guidance, but volumes were soft (+4% YoY)

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29-Jul-23

Ashok Leyland (BUY): Healthy growth trajectory; maintain BUY

Q1 revenue up 13% YoY despite weak seasonality, led by a mix of volume growth (+5%) and realisation gains (+8%)

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29-Jul-23

BOBCAPS Research | SBI Card (BUY): Higher provisions dent net profit

Q1 credit cost climbed 130bps YoY to 7.1% of loans (calc.) owing to stress from customers acquired in CY19, inducing a 5% fall in net profit

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28-Jul-23

Ajanta Pharma (BUY): Q1 beat sparked by sharp margin recovery

Strong Q1 beat with EBITDA/PAT of Rs 2.7bn/Rs 2.1bn coming in 17%/ 39% ahead of consensus due to margin recovery

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28-Jul-23

Nestle India (BUY): Healthy growth backed by market penetration

Q2 revenue up 15% YoY led by strong growth across categories and geographies; margins remained healthy

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28-Jul-23

Nippon Life India AMC (BUY): On a firm footing

QAAUM growth strong at 12% YoY in Q1 fuelled by 20% share of industry-wide net equity flows (ex-arbitrage and index)

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27-Jul-23

Tata Steel (BUY): Thrust on expansion capex, Europe breakeven key positives

Q1 EBITDA broadly in line as standalone operations continued to clock a high EBITDA margin of Rs 14k/t

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27-Jul-23

Axis Bank (BUY): Steady growth but costs elevated

Q1 PAT up 41% YoY supported by strong NII (+27%), fee income and treasury gains

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27-Jul-23

Aditya Birla Sun Life AMC (HOLD): Healthy quarter

QAAUM grew 5% YoY to Rs 2.9tn in Q1; market share inched up to 6.9% after a prolonged decline

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27-Jul-23

Tata Consumer Products (BUY): Momentum continues; outlook positive

Improved demand in core markets led to robust 16% YoY uptick in India business; rural recovery visible but still below pre-Covid levels

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27-Jul-23

Tech Mahindra (HOLD): Toughest quarter in recent times

CME a drag (-9% QoQ) in Q1 mainly due to lower network service and discretionary spends together with deal deferrals

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27-Jul-23

Cipla (BUY): Strong growth coupled with margin expansion

Q1 EBITDA/PAT beat estimates by 7%/16% on the back of growth in North America and One India

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27-Jul-23

Ultratech Cement (HOLD): On a strong pitch but positives priced in; revised to HOLD

Grey cement volumes grew 20% YoY to 28.6mt in Q1; utilisation healthy at ~86%

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26-Jul-23

UTI AMC (HOLD): Equity flows lacklustre; valuations full – downgrade to HOLD

MTM gains boosted Q1 net profit growth to ~150% YoY whereas core net profit fell 25% YoY

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26-Jul-23

Amber Enterprises (HOLD): Topline wavers, margins progressing

Q1 revenue weak given the “worst of bad seasons”, though margins improved on a better product mix

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26-Jul-23

Larsen & Toubro (BUY): Stellar quarter; solid outlook

Stellar Q1 led by inflows, execution and working capital efficiency; closed the quarter with a record Rs 4.1tn order book

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26-Jul-23

SBI Life (BUY): Mixed quarter; robust FY24 outlook maintained

Q1 APE growth softened to 4% YoY as non-par business slowed; management optimistic of a rebound

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26-Jul-23

Dixon Technologies (HOLD): Good quarter; cut to HOLD on limited upside

Q1 topline strong at Rs 32.7bn (+15% YoY) with improved margins; new customer additions provide healthy visibility

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25-Jul-23

JSW Steel (HOLD): Limited upside despite exciting growth ahead

Q1 ahead of consensus with Indian operations limiting the decline in margin and overseas business seeing improvement

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25-Jul-23

Hitachi Energy (HOLD): Supply side constraints persist; cut to HOLD

Q1 EBITDA margin at just 3.2% as supply chain constraints hampered profitability; chip shortage guided to recede gradually

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25-Jul-23

Kotak Mahindra Bank (HOLD): Non-core income drives up profitability

Strong core and non-core revenue supported Q1 net income growth of 50% YoY though NIM contracted 15bps sequentially

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25-Jul-23

HDFC AMC (HOLD): Strong quarter but upsides capped; maintain HOLD

Q1 AUM growth robust at 17% YoY with debt seeing inflows after several quarters of outflow; revenue and EBITDA impressive

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24-Jul-23

ICICI Bank (HOLD): High core income and lower provisions buoy PAT

NII growth of 38% YoY along with moderate provisioning aided 40% PAT growth in Q1

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24-Jul-23

Persistent Systems (HOLD): Resilient quarter but growth guided to soften near term

Top BFS client the driving force behind Q1 growth, but management expects weakness in the vertical for the next few quarters

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24-Jul-23

Reliance Industries (BUY): Steady she goes

Q1 results broadly in line as the energy business optimised operations and consumer business continued momentum

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23-Jul-23

Glenmark Life Sciences (HOLD): Another good quarter; cut to HOLD post rally

Strong Q1 with EBITDA/PAT beat of 10%/6% despite slight miss on revenue

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22-Jul-23

HDFC Life (HOLD): Healthy quarter but positives priced in; maintain HOLD

Key overhang dispelled with consummation of HDFC-HDFC Bank merger and parent’s stake raise to >50%

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22-Jul-23

Mphasis (HOLD): Tepid Q1; cut to HOLD post runup

Q1 missed estimates as dollar revenue slipped 3.4% QoQ following a slowdown in both direct business and DXC

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21-Jul-23

360 One (BUY): Strong set of numbers

ARR robust at Rs 130bn net flows in Q1, forming 80% of revenue from operations and 65% of AUM

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21-Jul-23

Hindustan Unilever (BUY): Modest quarter but improvement ahead

Q1 volume and value growth moderated; margins improved sequentially as inflation eased

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21-Jul-23

Coforge (HOLD): Miss on margins; deal momentum strong

Q1 revenue in line at US$ 272mn led by BFSI but EBIT margin at 10% fell short of estimates

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21-Jul-23

Infosys (BUY): Guidance cut a temporary blip

FY24 revenue growth guidance slashed from 4-7% to 1-3.5%, implying continued uncertainty – a sector-wide phenomenon

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20-Jul-23

Havells India (BUY): Margins falter

Q1 a miss due to soft EBIT margins in ECD (-220bps YoY to 10.9%) and lighting (-210bps to 14.3%)

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20-Jul-23

IndusInd Bank (BUY): Strong NII and lower provisions drive PAT

Q1 PAT growth robust at 30% YoY to Rs 21.2bn on NII growth and lower provisions which offset elevated opex

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19-Jul-23

Polycab India (BUY): Strong momentum continues

Impressive Q1 fuelled by 47% YoY growth in wires & cables business; FMEG set to improve

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19-Jul-23

HDFC Bank (BUY): Strong PAT on lower provisions

Q1 PAT grew 30% YoY backed by a strong topline and lower provisions. Deposits outpaced loan growth at 19% YoY

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18-Jul-23

ICICI Prudential Life (SELL): Some hits, some misses; maintain SELL

APE down 4% YoY to Rs 14.6bn in Q1 but up 4% ex-ICICIBC despite a soft demand environment

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14-Jul-23

Federal Bank (BUY): Strong business growth but margins under pressure

High-yield retail assets drove 42% YoY PAT growth; NIM (calc) dipped 13bps QoQ to 3.1% on a higher cost of funds

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14-Jul-23

Wipro (HOLD): Another muted quarter; BFSI the biggest drag

Q1 weaker than peers due to a higher mix of consulting services (Capco, Rizing), especially in BFSI and telecom

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13-Jul-23

HCL Technologies (HOLD): Weak Q1 but full-year guidance retained – a tall order

Q1 revenue missed estimates largely due to a slowdown in ER&D services and the telecom & media vertical

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13-Jul-23

Tata Consultancy Services (HOLD): Strong deal flow but near-term softness to continue

Management echoed Accenture’s commentary on temporary weakness due to project delays in the near term

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10-Jul-23

Reliance Industries (BUY): Consumer and new energy businesses key catalysts

Reliance Retail exit offer targeted at minority shareholders and does not reflect full retail business value

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30-Jun-23

Ashok Leyland (BUY): Analyst meet takeaways – Pursuing market share gains

Targeting ~35% MHCV market share in FY24 by growing to 50% of the southern market (vs. 40%) and holding at 35% in North/Central India

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28-Jun-23

Hero Motocorp (HOLD): Management meet takeaways: Climbing on the premium bandwagon

Upcoming launch of high-end 125cc motorcycle to help shore up market share (21% currently)

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28-Jun-23

ICICI Prudential Life (SELL): Stock runup unwarranted; cut to SELL

NBP and individual APE CAGR the lowest in the listed private space for FY17-FY23; underperformance continued in 2MFY24

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22-Jun-23

Gujarat State Petronet (BUY): Discount on standalone business excessive

Standalone business trading at FY24E P/B of 0.4x after adjusting for GUJGA stake at market value minus 30% holding discount

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18-Jun-23

ERRATA: RPG Life Sciences (NOT RATED): Investor day takeaways – Foundation in place; now targeting scale

FY23 a milestone year with revenue/EBITDA of Rs 5bn/1bn; Naprosyn brand crossed Rs 500mn

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15-Jun-23

KEC International (HOLD): Management meet takeaways – Guidance maintained

Management reiterated its FY24 order inflow (+15% YoY), revenue and EBITDA margin (~7%) guidance

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15-Jun-23

TTK Prestige (NOT RATED): Navigating troubled times with confidence

Management optimistic of strong demand recovery in H2FY24; foresees no requirement for price hikes in near term

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15-Jun-23

HDFC AMC (HOLD): Annual report analysis – Stable FY23; focus on growth

Product launches, top-tier scheme outperformance and phygital delivery channels remain key growth levers

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15-Jun-23

Crompton Greaves (BUY): Annual report analysis – Difficult year

New energy labelling norms hit the fans business and subdued demand dimmed lighting sales in FY23

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14-Jun-23

Voltas (HOLD): Management meet takeaways – Trying times

Q1FY24 growth likely to fall short of expectations as unseasonal showers dampened summer demand

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13-Jun-23

Tata Consultancy Services (HOLD): Annual report analysis – Macro headwinds cloud outlook

Key spending areas for FY23 included AI/ML, data & network services, cloud and managed security services

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13-Jun-23

Polycab India (BUY): Annual report analysis – Project Leap well on track

Remains market leader in core wires & cables business; FMEG segment tepid in FY23 but guided to return to form in FY24

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12-Jun-23

Infosys (BUY): Annual report analysis – Sentiments weak; Cobalt to drive growth

Key spending areas in FY23 included cloud, generative AI, cybersecurity, IoT, and immersive technologies

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08-Jun-23

Havells India (BUY): Annual report analysis – Continuity of strategy

Market share growth in Lloyd, rural markets and manufacturing remain strategic focus areas

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06-Jun-23

Voltas (HOLD): Annual report analysis – A challenging year

FY23 saw competition denting margins in VOLT’s AC business and provisioning losses in the projects business

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06-Jun-23

JK Cement (HOLD): Outlook intact; downgrade to HOLD on rich valuations

Volume growth healthy including contribution from the new Panna unit that has attained 60% capacity utilisation

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05-Jun-23

Hindustan Unilever (BUY): Annual report analysis – Weathering the storm

Growth momentum continues with 16% YoY topline growth in FY23 and market share gains in >75% of the portfolio

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31-May-23

V-Guard Industries (HOLD): Sunflame key for FY24

Flat quarter despite growth in non-core markets; Q4 gross margin improved but EBITDA margin still under pressure

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30-May-23

Sun Pharma (BUY): gRevlimid yields margin surprise; raise to BUY post correction

Q4 revenue in line but adj. PAT 9% above consensus at Rs 21.8bn (+46% YoY) on account of strong margins

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30-May-23

Mahindra & Mahindra (BUY): Healthy performance; strong show to continue

Robust Q4 volume growth of 22% YoY despite slow tractor sales; prudent product mix aids realisation gains of 13%

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29-May-23

SAIL (HOLD): Production gains momentum, higher debt a concern

Buildup of production momentum in Q4 but slower pickup in profitability on higher employee costs

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29-May-23

Tata Consumer Products (BUY): Annual report analysis: On a strong wicket

Strong FY23 performance with revenue/PAT up 11%/29%, underpinned by innovation, premiumisation and distribution

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29-May-23

Mphasis (BUY): Dull quarter; sequential recovery guided from Q2

Weak Q4 revenue print (-4.1% QoQ); DR and DXC remained a drag on growth

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29-May-23

LIC (BUY): Focused on profitable products

APE grew 12.5% YoY in FY23 led by strong 36% growth in non-par products; non-par constituted 8.9% of APE vs. 7.1% in FY22

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27-May-23

Ashok Leyland (BUY): Healthy performance continues

Q4 volumes grew 23% YoY with realisations up 9%, aiding 33% topline growth to Rs 116bn

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25-May-23

JK Lakshmi Cement (SELL): Challenging road ahead

Realisations led growth in Q4 while capacity constraints restricted volume gains (to 1% YoY)

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25-May-23

AIA Engineering (BUY): Robust performance

Q4 EBITDA margin expands to 24.8% on a better revenue mix; stronger margin coupled with higher other income aids a beat on PAT

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25-May-23

Cummins India (BUY): From strength to strength; upgrade to BUY

Operationally strong Q4 despite supply chain constraints, with EBITDA and PAT each up ~60% YoY; exports resilient

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25-May-23

Star Cement (BUY): Moving in the right direction

Q4 volume gains steady at 7% YoY; realisation gains at 3%, indicating healthy demand in key areas

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25-May-23

Hitachi Energy (BUY): Improving outlook

Q4 sequentially stronger as supply chain constraints eased; chip shortage guided to recede fully in next two quarters

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24-May-23

Shree Cement (HOLD): High-cost fuel inventory weighs on margins

Healthy Q4 revenue gains driven by both volumes (+10% YoY) and realisations (+6%)

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23-May-23

Dixon Technologies (BUY): In-line quarter; strong guidance reiterated

Q4 topline of Rs 30.7bn in line with our estimate while improved ODM contribution aided a margin beat

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23-May-23

Zydus Wellness (HOLD): Price-led growth in Q4; HFD category a concern

Q4 revenue grew 11.4% YoY on the back of continuous price hikes; volume growth muted at 4%

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22-May-23

Crompton Greaves (BUY): Mixed quarter

Q4 topline grew 16% YoY aided by a good ECD performance; lighting continues to disappoint

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20-May-23

The Ramco Cements (SELL): Strong volume push but pricing pressure persists

New capacities (+2mt YoY) aided 45% jump in Q4 volumes (28% net of added capacities)

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20-May-23

Alkem Labs (SELL): Margin improvement key for revival

Q4 EBITDA/PAT of Rs 3.5bn/Rs 710mn well short of consensus by 21%/ 79% primarily due to higher operating costs

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19-May-23

State Bank Of India (BUY): Sustaining growth and profitability

Lower provisioning supported robust 83% YoY PAT growth in Q4, though PPOP declined sequentially on higher opex

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19-May-23

Syrma SGS (BUY): Strong show; positive outlook intact

Q4 topline/PAT up 83%/160% YoY spurred by strong growth in the auto and consumer segments

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19-May-23

Siemens India (HOLD): Low-voltage deal appears unfavourable; cut to HOLD

Low-voltage and geared motors business divested to parent for Rs 22bn (2.1x revenue)

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19-May-23

ITC (BUY): Strong performance amid macro headwinds

Growth momentum continues with 330bps YoY EBITDA margin expansion; we expect 12% topline growth in FY24

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18-May-23

Thermax (HOLD): Cautious outlook continues

Order book has flattened with a lack of big orders in the pipeline; management outlook on FY24 cautious

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18-May-23

Eris Lifesciences (BUY): Integration costs weigh on quarter

Consolidated Q4 revenue/EBITDA growth of 32%/23% YoY missed consensus by 3%/10%

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18-May-23

Affle (India) (BUY): Seasonality impacts Q4; outlook remains healthy

Device addition remained tepid during the quarter but strong additions in converted users

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17-May-23

Jindal Steel & Power (BUY): Streamlining painful but useful, maintain BUY

Streamlining of operations by the new management led to Rs 94bn of impairments over H2 but is helping wipe the slate clean

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17-May-23

Amber Enterprises (HOLD): Strong performance on new client and capacity addition

Q4 a beat as all segments posted strong growth, led by electronics (+69% YoY) and RAC & components (+55%)

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16-May-23

VST Tillers Tractors (BUY): Solid quarter

Q4 volume gains of 32% YoY helped by preponement of festive season and tiller & other non-tractor sales

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15-May-23

Eicher Motors (HOLD): Overall healthy performance

Launches aided Q4 volume growth of 18% YoY and healthy revenue gains; both Hunter and Bullet pushed up realisations

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15-May-23

Polycab India (BUY): Cables business resilient

Wires & cables shore up growth in Q4 while FMEG business struggles; international sales at a record high

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15-May-23

Orient Electric (HOLD): Weak end to a challenging FY23

Growth in lighting & switchgears (+12% YoY) offset by decline in ECD business (-20%) as fans business underperformed in Q4

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13-May-23

Cipla (BUY): Key launches at least a year away

Q4 EBITDA/PAT grew 57%/45% YoY but missed consensus by 5%/30% on higher R&D spend, field force expansion and other costs

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12-May-23

Marico (BUY): Healthy volume-led growth; improved visibility

Q4 volume growth of 5% YoY in domestic markets backed by diversification and market development

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12-May-23

Escorts (SELL): Medium-term pain to continue

Unseasonal rains dented volumes (-12% QoQ) towards the end of Q4, offsetting momentum seen in the first half

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12-May-23

Coforge (BUY): Stellar quarter; buoyant outlook

Robust Q4 revenue of US$ 264mn (+4.7% QoQ CC) with US$ 1bn milestone reached in FY23

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12-May-23

Siemens India (BUY): Strong momentum continues

Robust execution and margins in Q2 led by smart infrastructure and mobility segments; base order inflow at Rs 57bn

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11-May-23

Godrej Consumer Products (BUY): Home and personal care segments perform well

Robust volume-led growth aided 12% YoY rise in India revenue; Indonesia business saw strong recovery

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11-May-23

Dr Reddy's Labs (HOLD): Core business remains sluggish

Q4 broadly in line as revenue/EBITDA grew 16%/35% YoY (-7%/-23% QoQ), albeit aided by one-offs

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11-May-23

Larsen & Toubro (BUY): Strong finish; robust outlook for FY24

Q4 in line; FY23 order inflow and revenue beat guidance while margins were on par and order book soared to a record Rs 4tn

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10-May-23

Mahanagar Gas (HOLD): Slow long-term growth prospects; cut to HOLD

Q4 beat consensus as EBITDA margin improved sharply by Rs 4.6/scm QoQ on limited passthrough of lower gas purchase costs

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08-May-23

Alembic Pharma (HOLD): No respite yet

ALPM reported in-line Q4 revenue at Rs 14bn (flat YoY), though negative tax and lower R&D expense resulted in a PAT beat

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08-May-23

Federal Bank (BUY): Strong PAT on higher other income and lower provisions

Higher other income plus lower provisions aided 67% YoY PAT growth in Q4; NIM contracted due to deposit repricing

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06-May-23

Ajanta Pharma (BUY): Margins appear to have bottomed out; raise to BUY

Strong India and US growth in Q4 (17% YoY each) offset by declines in other businesses

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06-May-23

Blue Star (BUY): Momentum continues; outlook bright

UCP business shines in Q4, delivering 20% YoY growth and an 8.4% EBIT margin

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06-May-23

Britannia Industries (BUY): Impressive all-around performance

Strong 13% YoY topline growth in Q4 fuelled by pricing, enhanced distribution reach and market share gains

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06-May-23

ABB India (HOLD): Strong showing but priced in

Robust Q1 with revenue up 23% YoY and EBITDA margin expansion of 230bps aided by the robotics and electrification segments

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05-May-23

Hero Motocorp (HOLD): Improved performance; sustainability to be seen

Q4 revenue grew 12% YoY backed by 5% higher net realisation per vehicle and volume gains of 7%

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05-May-23

360 One (BUY): Tough quarter

Q4 AUM/PAT 6%/10% below our expectations at Rs 2.7tn/Rs 1.6bn; ARR focus continues

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05-May-23

TVS Motor (HOLD): Steady quarter; fresh triggers awaited

Price pass thru availability helps realisation gains in Q4, taking revenue up 19% YoY (flattish QoQ) despite tepid volume growth

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05-May-23

Dabur India (BUY): Steady growth; improving demand visibility

Broad-based growth across categories in Q4, barring healthcare which is navigating the high Covid base

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04-May-23

Orient Cement (HOLD): Listless performance

Focus on realisation gains curbed Q4 volume growth at 5% YoY, indicating lacklustre demand in key areas

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04-May-23

KEC International (HOLD): Standalone margin remains weak

Q4 revenue/PAT ahead of estimates at Rs 55bn/Rs 722mn; revenue growth guidance of 15%+ for FY24 on strong order inflow

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04-May-23

Tata Steel (BUY): Project visibility improving, maintain BUY

Q4 demonstrated a strong comeback from a low point in India; Europe likely to recover gradually from Q2FY24

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04-May-23

Ambuja Cements (HOLD): Soft realisations weigh on margins

Q4 revenue growth muted at 8% YoY on tepid realisations and limited volumes owing to a labour strike

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03-May-23

Havells India (BUY): Moderate quarter; in-line performance

Q4 revenue up 10% YoY to Rs 48.6bn anchored by strong switchgear sales and consistent performance in cables & wires

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03-May-23

KEI Industries (BUY): Momentum continues; capacity addition to spur growth

Traction in cable business buoyed Q4 topline growth; EHV set to bounce back in FY24

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03-May-23

ACC (HOLD): Realisations soft; stock lacks strong triggers

Volume-led topline growth truncated by muted realisations (+1% YoY) in Q4, an indication of market share pressure

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02-May-23

Kotak Mahindra Bank (HOLD): Healthy quarter but positives priced in

Q4 PAT grew 26% YoY backed by a strong topline and lower opex; provisions stayed flat

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29-Apr-23

Ultratech Cement (BUY): On a strong pitch, Near term challenges fading away

Q4 revenue grew 20% YoY and QoQ aided by strong double-digit volume gains and supportive pricing

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29-Apr-23

Dalmia Bharat (HOLD): Volumes rise but realisations weak

Q4 revenue grew 16% YoY to Rs 39bn buoyed by higher volumes (+12% YoY); realisations up just 3%

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29-Apr-23

Maruti Suzuki (HOLD): Short-term pricing blip

Q4 volume growth soft due to an unfavourable mix; order book strong at 412k units (vs. 363k units in Q3FY23)

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29-Apr-23

SBI Card (BUY): Positive surprise; maintain BUY

Q4 PAT beat our estimate by 10% due to robust revenue (+32% YoY), partially offset by higher credit cost (+60% YoY)

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29-Apr-23

Glenmark Life Sciences (BUY): All-round beat

Q4 revenue of Rs 6.2bn (+21% YoY) beat our estimate by 14% driven by recovery in CDMO and growth in API

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28-Apr-23

Aditya Birla Sun Life AMC (HOLD): Soft numbers; weakness persists, maintain HOLD

QAAUM declined 7% YoY to Rs 2.8tn at end-FY23 with continued market share bleed

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28-Apr-23

Axis Bank (BUY): Valuations to play catch up

Lower provisioning aids strong Q4 PAT growth of 64% YoY (ex-one-off charge of Rs 125bn towards Citi deal

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28-Apr-23

Laurus Labs (HOLD): Dismal quarter

Q4 a miss on all fronts – revenue/EBITDA/PAT below consensus by 16%/35%/55%

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28-Apr-23

UTI AMC (BUY): Weak set of numbers

Equity outflows coupled with softer yields dampened Q4; core PAT flat YoY at Rs 571mn, well below our estimate

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28-Apr-23

Tech Mahindra (HOLD): Weak performance; near-term outlook cloudy

Q4 revenue flattish at US$ 1.7bn (+0.3% QoQ CC) with 10% growth in FY23 to US$ 6.6bn

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27-Apr-23

Wipro (HOLD): Consulting business likely to dampen near-term growth

Q4 revenue grew 0.6% QoQ CC to US$ 2.8bn due to a drag in technology consumer and communication verticals

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27-Apr-23

SBI Life (BUY): Strong FY23; maintain BUY

Strong performance in FY23 with gross premium up 15% YoY and APE growth of 18%

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27-Apr-23

Hindustan Unilever (BUY): Fair performance in a challenging environment

Underlying pricing growth tapered down in Q4 due to softening input cost; volume growth at 4% YoY

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27-Apr-23

Voltas (HOLD): EMP underperformance overshadows resilient cooling business

UCP EBIT margin returns to double digits in Q4 after languishing at 7-8% over the first three quarters

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27-Apr-23

Bajaj Auto (HOLD): Rural economy revival key for growth; Maintain HOLD

Despite 13% lower volumes YoY, realisations steered topline growth of 12% in Q4 on the back of a better product mix

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26-Apr-23

HDFC Life (HOLD): Strong quarter

Robust growth momentum in gross premium to Rs 196bn in Q4; NBP market share climbs to 22.9%

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26-Apr-23

Tata Consumer Products (BUY): Strategic initiatives in place; outlook upbeat

Strong 14% YoY revenue growth in Q4 as key businesses continued to outperform

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26-Apr-23

Nippon Life India AMC (BUY): MTM losses mar quarter

MTM loss on other income led to 7% sequential decline in Q4 total income and 10% drop in pre-tax profit

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26-Apr-23

Persistent Systems (BUY): Growth resilient

Q4 revenue up 3.9% QoQ CC to US$ 275mn, backed by services and top-client business

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25-Apr-23

HDFC AMC (HOLD): Q4 disappoints; cut to HOLD on multiple headwinds

Q4 net profit missed our estimate by 7% owing to below-expected revenue of Rs 6.4bn and QAAUM of Rs 4.5tn

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25-Apr-23

IndusInd Bank (BUY): Gearing up for the next leg of growth

Q4 PAT growth strong at 46% YoY backed by robust business growth that offset lower other income and higher opex

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25-Apr-23

Nestle India (BUY): Stellar performance; beats estimate

Highest quarterly growth in the last decade supported by a strong performance across product segments in Q1CY23

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24-Apr-23

Reliance Industries (BUY): Capital discipline targets positive; maintain BUY

Q4 beat led by O2C business; investor concerns appeased by introduction of a capital discipline target of 1x net debt/EBITDA

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24-Apr-23

HDFC Bank (BUY): RBI clears pitch for merger with HDFC

Central bank permits leeway on PSL norms post-merger which will aid HDFCB’s margins and asset quality in the immediate term

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24-Apr-23

ICICI Bank (HOLD): Strong NII and lower provisions aid healthy PAT

Growth across asset classes coupled with higher NIM led to strong NII in Q4, but the absence of treasury gains muted other income

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21-Apr-23

ICICI Prudential Life (HOLD): FY23 ends on a high note; cut to HOLD post rally

Strong Q4 growth lifts overall FY23 numbers; sustainability of growth and ability to arrest NBP market share loss key monitorables

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20-Apr-23

HCL Technologies (BUY): Software seasonality dampens dollar revenue growth

Q4 revenue down 0.3% QoQ CC, below our estimates

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18-Apr-23

Reliance Industries (BUY): Capex ramp-up likely in sync with structural growth

EBITDA momentum likely to continue in Q4 propelled by both cyclical and consumer engines

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17-Apr-23

HDFC Bank (BUY): Q4 healthy despite higher opex

Deposits outpaced loan growth YoY while a higher cost of funds led to 14bps contraction in NIM to 4.2% in Q4; FY24 NIM guided at 4.1%

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13-Apr-23

Infosys (BUY): All-round miss; sentiments worsening but Cobalt to drive growth

Q4 revenue declined 2.3% QoQ CC, weighed down by project cancellations

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12-Apr-23

Tata Consultancy Services (HOLD): Steady quarter but macro headwinds cloud outlook

Q4 dollar revenue growth of 1.7% QoQ in line with our estimate and broad-based across verticals

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12-Apr-23

ABB India (HOLD): Annual report highlights – Agile business model

CY22 order inflows strong at Rs 100bn (+31% YoY) and revenue growth robust at 24% YoY

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12-Apr-23

HDFC Bank (BUY): Q4 likely to see sustained growth momentum

Expect a healthy March quarter with deposits outpacing loan growth (196bps QoQ decline in CD ratio)

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06-Apr-23

[Initiation] LIC (BUY): Behemoth at a bargain; initiate with BUY

Extensive presence, brand equity and leadership in group life business serve as strong moats, supporting NBP market share of over 60%

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31-Mar-23

Nestle India (BUY): Annual report highlights – Stellar performance in a difficult year

Highest domestic revenue growth in a decade, at 14.8% in CY22, led by both volumes and pricing

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22-Mar-23

Bikaji Foods International (NOT RATED): Appetite for growth

Largest manufacturer of Bikaneri Bhujiya (crispy snack) and third-largest maker of traditional Indian snacks

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16-Mar-23

Kaynes Technology (NOT RATED): Expanding footprint

Budding electronics manufacturer that is expanding capacity to tap into India’s EMS boom

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01-Mar-23

Tech Mahindra (HOLD): Sandstorm a potential game changer

TECHM launches Sandstorm, a network monitoring service that allows clients to remotely measure customer experiences across devices

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28-Feb-23

Infosys (BUY): Private 5G-as-a-Service to see multiyear tailwinds

Private 5G expected to be a key enabler for the digital transformation of enterprises

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20-Feb-23

SAIL (HOLD): Higher production positive but legacy issues linger

Q3 marks recovery in line with peers; production uptick helped SAIL partly bridge the gap with existing capacity

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20-Feb-23

TVS Motor (HOLD): Steady performance; healthy outlook

Realisation-led performance aids ~70bps YoY rise in Q3FY23 EBITDA margin; judicious product mix behind better pricing

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16-Feb-23

Nestle India (BUY): Investing for growth

CY22 revenue increased 14.5% YoY with broad-based growth across categories

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16-Feb-23

Maruti Suzuki (HOLD): Focus shifts to high-margin segment

Q3 gross margin stays healthy at 27% (25% in Q3FY22) due to softer raw material cost and better synergies; realisations drive sales

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15-Feb-23

PI Industries (BUY): Strong quarter spurred by custom synthesis business

Q3 robust with EBITDA/PAT growth of 40%/58% YoY on the back of margin improvement, low tax and higher other income

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15-Feb-23

CESC (BUY): Stable performance; DF circles disappoint

Stable Q3 with 4% YoY revenue growth to Rs 19bn and flattish net profit at Rs 1.9bn

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15-Feb-23

Siemens India (BUY): Stellar quarter

Strong Q1 beat aided by margin expansion across segments. C&S Electric turns a corner

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14-Feb-23

JK Lakshmi Cement (SELL): Cost overruns remain a concern

Q3 volumes surged 16% YoY on a weak base with realisations up 8%, aiding healthy topline growth

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13-Feb-23

LIC (NOT RATED): Strong 9MFY23 growth but margins moderate

9MFY23 net premium grew 21% YoY to Rs 3.4tn, lifting NBP market share 400bps YoY to 65.4%

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13-Feb-23

Thermax (HOLD): Scaling back on large project bids

Transitioning to smaller orders in a bid to eliminate lumpiness in large projects and lift profitability

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13-Feb-23

ABB India (HOLD): Q4 beat; retain HOLD on full valuations

Q4CY22 robust with revenue up 16% YoY and margins buoyed by motion and industrial automation businesses

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13-Feb-23

Alkem Labs (SELL): Quarter buoyed by seasonal tailwinds

Q3 revenue grew 16% YoY to Rs 30bn led by double-digit growth across markets; flu season drove US sales of US$ 92mn

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11-Feb-23

Shree Cement (HOLD): Cost efficiencies to aid performance

Volume-led (+23%) revenue growth of 15% YoY in Q3 as realisations fell due to weak pricing in key regions

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11-Feb-23

Ambuja Cement (HOLD): Steady growth continues, maintain HOLD

Q4 revenue growth of 11% YoY contributed by volume gains of 8% with realisations up 3%

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11-Feb-23

Aurobindo Pharma (BUY): Modest Q3; no respite on margin front

Q3 revenue up 7% YoY to Rs 64bn led by growth in the US and EMs along with recovery in ARV business

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11-Feb-23

Voltas (HOLD): Subpar quarter as EMP losses deepen

UCP revenue up 11% YoY but EBIT margin band seems to have softened to 7-9% from 12-14% earlier

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10-Feb-23

JK Cement (BUY): Steep costs likely to soften in Q4; maintain BUY

Grey cement volumes grew 23% YoY in Q3 backed by capacity addition in Central India and presence in remunerative areas guarding prices

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09-Feb-23

Cummins India (HOLD): Robust quarter; positives in the price

Q3 strong with revenue up 25% YoY despite supply chain constraints, as infrastructure-led demand improved; exports grew 23%

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09-Feb-23

Syrma SGS (BUY): Strong topline but margins soften

Q3 topline growth robust at 70% YoY led by resilient domestic demand; order book expands further to Rs 21bn

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08-Feb-23

Tata Steel (BUY): Weaker Q3 does not disrupt upcoming growth, maintain BUY

Q3 below consensus with softer recovery in India operations and acute losses in Europe

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08-Feb-23

The Ramco Cements (SELL): Performance driven by new capacity addition

Q3 revenue rose 29% YoY as utilisation improved to 69%; realisation gain of 9% came as a positive surprise

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07-Feb-23

Dalmia Bharat (HOLD): Strong quarter; capacity addition on track

Q3 revenue up 23% YoY backed by double-digit volume growth (11%) and equally strong realisation gains

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07-Feb-23

Hitachi Energy (BUY): Chip shortage takes a toll

Q3 revenue down 8% YoY due to the persistent chip shortage; EBITDA margin under pressure at 3.8%

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06-Feb-23

Star Cement (BUY): In-line performance; maintain BUY

Q3 volumes up 5% YoY to 0.9mt backed by healthy realisation gains; price hike impact to reflect fully in Q4

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06-Feb-23

ITC (BUY): Stellar show continues; outlook bright

Q3 revenue grew 3.5% YoY and gross margin expanded 700bps driven by a strong performance across categories

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05-Feb-23

Mahanagar Gas (BUY): Growth set to accelerate in medium term; maintain BUY

Q3 marginally ahead; priority HP-HT allocation to bridge APM gas shortfall and cap on APM gas price to improve competitiveness

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04-Feb-23

Tata Power (BUY): Growth aided by coal profits again

Q3 net profit jumped 2x YoY to Rs 9.5bn backed by high coal profits and strong power demand

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04-Feb-23

Divi's Labs (HOLD): Big miss on revenue and margins

Q3 disappoints as revenue/PAT of Rs 17bn/Rs 3bn missed consensus by 12%/38%

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03-Feb-23

Jindal Steel & Power (BUY): Streamlining management processes a positive; BUY

Q3 recovered in line with street estimates and revival set to continue in Q4 on policy support in China and India

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03-Feb-23

Tata Consumer Products (BUY): Subdued quarter; long-term story remains intact

Q3 revenue grew 8% YoY (3% QoQ), but margins contracted due to inflationary pressure and lag in pricing

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03-Feb-23

V-Guard Industries (HOLD): Topline intact while margin pressure persists

EBITDA margin deteriorated further to 6.7% in Q3; recovery on the anvil as high-cost inventory nearly exhausted

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03-Feb-23

Crompton Greaves (BUY): Weak lighting business dims performance

Lighting (-20% YoY) saw tepid demand and volatile pricing in Q3 amid stiff competition; pumps fell 10%

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02-Feb-23

Power Grid Corp (BUY): Steady quarter; upgrade to BUY post correction

Steady Q3 performance with 11% YoY growth each in revenue and net profit

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02-Feb-23

UTI AMC (BUY): Dull quarter on MTM losses; maintain BUY

MTM loss from subsidiary UTI International coupled with softer yields dampens Q3; core MF business market share intact at ~6%

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02-Feb-23

Britannia Industries (BUY): Strong performance in a challenging environment

Q3 revenue grew 17% YoY to Rs 42bn driven by price hikes, with adj. PAT up 50%

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01-Feb-23

KEC International (HOLD): Disappointing quarter – cut to HOLD

EBITDA margin muted for the second consecutive quarter at 4.6% in Q3, dragged down by muted profitability in standalone business

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01-Feb-23

Godrej Consumer Products (BUY): Broad-based growth; strong margin recovery

Q3 sales grew 9% INR and 15% CC YoY; underlying volume growth stood at 1%

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01-Feb-23

Blue Star (BUY): Buoyant performance; UCP margin expansion continues

UCP EBIT margin expands further to 7.4% (+100bps YoY) in Q3; outlook remains positive for Q4

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31-Jan-23

Orient Electric (HOLD): Back on track with Q3 rebound

Topline boosted by better ECD performance; profitability turns positive with sequential margin expansion

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31-Jan-23

Larsen & Toubro (BUY): Revenue beat; commentary optimistic

Q3 revenue ahead of estimates at Rs 464bn (+17% YoY); LT confident of exceeding 13-15% revenue and order growth guidance for FY23

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30-Jan-23

Tech Mahindra (HOLD): Weak performance; expect a muted FY23

Q3 revenue growth subdued at 0.2% QoQ CC, though marginally above our estimate vs street’s estimate of 0.4%QoQ CC

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30-Jan-23

Indraprastha Gas (BUY): Dull quarter; focus shifting to non-bus CNG volumes

Q3 results weak but in line with consensus; capping of APM gas price could help restore margins and reboot structural growth

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30-Jan-23

Nippon Life India AMC (BUY): Healthy quarter; retain BUY

Market share intact at ~7% with Q3 QAAUM up 4% YoY to Rs 2.9tn; competitive edge in ETFs maintained

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30-Jan-23

NTPC (BUY): Another strong quarter

Q3 revenue (+43% YoY) a beat and PAT in line; on track for 18GW capacity addition over 3Y at projected Rs 750bn capex

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28-Jan-23

Aditya Birla Sun Life AMC (HOLD): Challenges persist, maintain HOLD

Market share declines to 7% as Q3 QAAUM falls 6% YoY to Rs 2.8tn vs. 5% growth for the industry

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27-Jan-23

Glenmark Life Sciences (BUY): Sequential recovery in API business

Q3 revenue up 6% QoQ to Rs 5.4bn supported by sequential recovery in API business to parent and PLI benefits

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27-Jan-23

AIA Engineering (BUY): Stellar quarter despite challenging macro

Strong all-round beat; Q3 EBITDA margin boosted to 29.8% by a better mix and one-offs, with 20-22% levels seen as sustainable

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26-Jan-23

Dr Reddy's Labs (HOLD): Strong US sales; recovery in EM and PSAI businesses

Q3 revenue growth strong at 27% YoY to Rs 67.7bn, supported by US contribution and launches

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26-Jan-23

Cipla (BUY): US-led growth; margins strong

Q3 revenue grew 6% YoY to Rs 58bn (11% ex-Covid sales last year) driven by US business and despite a sharp decline in SAGA

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25-Jan-23

Dixon Technologies (BUY): Dull Q3 as mobiles business dials down

Q3 topline down 22% YoY with weakness across key segments; however, EBITDA margin a beat at 4.6%

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25-Jan-23

HDFC AMC (BUY): Muted growth; raise to BUY on price correction

Q3 net profit growth muted at 3% YoY owing to weak revenue pickup and higher operating expense

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25-Jan-23

SBI Card (BUY): Higher costs continue to dent profitability

Q3 PAT missed our estimate by 8% due to increased funding costs and high operating expenses

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24-Jan-23

JSW Steel (HOLD): Exciting growth but unfavourable risk-reward; maintain HOLD

Q3 EBITDA recovered ahead-of consensus expectations but net income was a miss on impact of higher net debt

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24-Jan-23

Amber Enterprises (HOLD): Strong topline but margins remain muted

Q3 topline grew 38% YoY but EBITDA margin disappoints at 5.8% (6.2% est.), dragging PAT well below expectations

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24-Jan-23

KEI Industries (BUY): Upbeat numbers

Strong performance in cables aids Q3 topline growth of 14% YoY; EHV drag transient

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24-Jan-23

Siemens India (BUY): Annual report highlights – Primed for accelerated growth

Well positioned to benefit from emerging opportunities in digitalisation and sustainable solutions

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24-Jan-23

Reliance Industries (BUY): Entry opportunity; upgrade to BUY

Q3 EBITDA recovers with capture of higher refining margin upside and improved natural gas realisation

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23-Jan-23

SBI Life (BUY): Upbeat quarter; maintain BUY

Strong 15% YoY growth in 9M gross premium with an in-line Q3; APE clocks robust 20% increase

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20-Jan-23

HDFC Life (BUY): Strong growth momentum; maintain BUY

Robust momentum in gross premium to Rs 146bn in Q3; NBP market share climbs to 20.9%

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20-Jan-23

360 One (BUY): Resilient model; high ROE – maintain BUY

ROAE up 160bps YoY and 60bps QoQ to 23.5% in Q3, showing a consistent expansion trend

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20-Jan-23

Polycab India (BUY): Buoyant quarter

Upbeat performance in wires & cables aided Q3 topline growth of 10% YoY despite a higher base

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19-Jan-23

Havells India (BUY): Modest performance amid a challenging environment

Middling Q3 revenue growth of 13% YoY owing to soft B2C demand; growth led purely by volumes as no price hikes undertaken on QoQ

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19-Jan-23

Hindustan Unilever (BUY): Growth momentum continues; margins improve sequentially

Q3 revenue grew 16% YoY with volume growth of 5%; EBITDA margin improved sequentially by 70bps

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19-Jan-23

IndusInd Bank (BUY): Recovery plan in play

Q3 PAT growth strong at 58% YoY backed by healthy core income coupled with stable opex and lower provisions

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18-Jan-23

Mahanagar Gas (BUY): Healthy medium-term outlook

Management aims to double the annual growth run-rate to 6% in the medium term by accelerating network buildout

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18-Jan-23

Eris Lifesciences (BUY): Oaknet continues to drive revenue growth

Q3 consolidated revenue grew 27% YoY led by Oaknet, but standalone growth modest at 9%

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18-Jan-23

ICICI Prudential Life (BUY): VNB strong but premium growth disappoints

9MFY23 VNB grew 23% YoY to Rs 17.1bn with margin profile strong at 32%

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16-Jan-23

HDFC Bank (BUY): Steady earnings growth

Q3 PAT grew 19% YoY (16% QoQ) to Rs 122.6bn aided by strong interest & other income and lower provisions

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13-Jan-23

Wipro (HOLD): Consulting business likely to dampen growth in the near term

Q3 revenue grew at a meagre 0.2% QoQ, underperforming our estimate

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12-Jan-23

Chemplast Sanmar (NOT RATED): Uptick in PVC prices could aid margin recovery

Management expects to see benefit of PVC price recovery from Q4 after a muted Q3

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12-Jan-23

HCL Technologies (BUY): Profit beat in seasonally weak quarter

Q3 revenue growth at 5% QoQ CC beat consensus as well as our estimates

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12-Jan-23

Infosys (BUY): Cobalt to drive near-term growth

Q3 revenue growth in line at 2.4% QoQ CC, supported by vendor consolidation

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09-Jan-23

Tata Consultancy Services (HOLD): Demand drivers intact with some pockets of slowdown

Q3 revenue growth of 2.9% QoQ CC beat consensus and came in higher than our estimate

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27-Dec-22

Indraprastha Gas (BUY): Growth levers intact despite EV

IGL targets 10% volume growth over FY23-25E, aims to offset loss from electric vehicles

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23-Dec-22

Solar Industries (NOT RATED): Growth focused

Dominant player in explosives, both in India and overseas, focused on expanding its competencies in defence

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20-Dec-22

JSW Steel (HOLD): Dolvi another growth milestone

Successful delivery of 5mtpa Dolvi expansion with operational stability achieved within a year of startup

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20-Dec-22

Syrma SGS (BUY): Capacity expansion on course

Capacity addition on track to meet expected EMS demand boom, with a total of five SMT lines to be added by end-FY23

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12-Dec-22

Voltas (HOLD): Competition weighing on margins

Management does not anticipate return to double-digit RAC EBIT margins in medium term amid rising competition

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09-Dec-22

Siemens India (BUY): Buoyant outlook

Q4 in line; management now focused on aggressive growth, in a shift from consolidation

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08-Dec-22

Syrma SGS (BUY): Niche ODM player – initiate with BUY

Niche EMS-ODM player capable of servicing diverse sectors across the electronics product value chain, yielding best-in-class margins

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06-Dec-22

Greenpanel Industries (BUY): Long runway before takeoff

Increase in MDF imports could pose a threat to domestic price realisation, if not curbed

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01-Dec-22

NLC India (NOT RATED): Capacity addition largely on track

Higher capacities in power as well as mining to boost profitability and capitalise on the country’s strong power demand

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29-Nov-22

Mahindra & Mahindra (BUY): Performance to strengthen

Q2 net sales of Rs 208bn (+6% QoQ) driven entirely by realisation gains with NRPV at Rs 763k (+6% QoQ)

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28-Nov-22

TTK Prestige (NOT RATED): Banking on brand value to blunt competition

Demand for premium products buoyant but entry-level segment remains distressed

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21-Nov-22

Eicher Motors (HOLD): Volume gains encouraging; ASP revival key

Q2 revenue up 5% QoQ to Rs 33bn backed by 11% volume growth (MoM run-rate of 60k units), partly offset by 7% fall in ASP

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17-Nov-22

BOBCAPS Research | Ashok Leyland (BUY): Healthy performance all round

Q2 topline healthy at Rs 83bn backed by volume growth of 15% QoQ to 45.3k vehicles (+65% YoY on a weak base)

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14-Nov-22

TVS Motor (HOLD): Strong quarter but positives in the price

Q2 revenue at Rs 72bn (+29% YoY) backed by higher ASP (Rs 69.3k, +13%) and volumes (+14%)

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14-Nov-22

Aurobindo Pharma (BUY): Margin slippage continues; launches key for growth

Q2 revenue dipped 3% YoY (-8% QoQ) to Rs 57bn as decline in US/ Europe outweighed growth in other businesses

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14-Nov-22

LIC (NOT RATED): Strong growth; focused on raising persistency

Net premium grew 24% YoY to Rs 2.3tn in H1FY23, lifting NBP market share from 64.5% to 68.3%

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14-Nov-22

Alembic Pharma (HOLD): Broad-based growth; margin crunch persists

Q2 revenue increased 14% YoY supported by growth across businesses; commissioning of new facilities in Q4 to further propel topline

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14-Nov-22

Alkem Labs (SELL): Near-term outlook weak – cut to SELL

Revenue grew 10% YoY to Rs 31bn in Q2 led by India business, but US price erosion continued to weigh on margins

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11-Nov-22

Hero Motocorp (HOLD): Efforts on to capture premium market

Q2 revenue grew 7% YoY backed by realisation gains of 8%, which offset flat volumes on a weak base

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11-Nov-22

Astral (HOLD): Inventory loss, one-off expenses drag margin

Consolidated Q2 revenue declined 2% YoY with plumbing down 11% but paints & adhesives up 27%; pipe volumes dipped 4%

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11-Nov-22

Lupin (HOLD): Return to double-digit margins

Q2 revenue grew 11% QoQ (+1% YoY) with recovery in US business and continued momentum in India

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10-Nov-22

Somany Ceramics (BUY): Gas prices continue to weigh on margins

Q2 revenue growth at 9% YoY due to 24.5% increase in blended realisation (+13% QoQ); however, tile volumes declined 2% YoY

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10-Nov-22

Pidilite Industries (SELL): Margin expansion ahead but valuations lofty; reiterate SELL

Consolidated Q2 net revenue increased 15% YoY to Rs 30bn as the C&B/B2B segments grew 14%/17%

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10-Nov-22

Zydus Wellness (BUY): High commodity prices play spoilsport

Q2 revenue grew 12% YoY (-38% QoQ) to Rs 4.3bn aided by 5% volume growth

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09-Nov-22

VST Tillers Tractors (BUY): Gaining momentum slowly but surely

Q2 net revenue per vehicle grew ~5% YoY to Rs 0.22mn though volumes fell 4% due to poor tractor sales

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09-Nov-22

Cera Sanitaryware (HOLD): Steady demand trends

Consolidated Q2 revenue grew 3% YoY aided by demand from home renovation and upgrade projects

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09-Nov-22

Greenpanel Industries (BUY): Domestic demand remains healthy

Q2 revenue increased 8% YoY to Rs 4.6bn led by 14% growth in MDF, though plywood business was down 17%

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09-Nov-22

Divi's Labs (HOLD): Disappointing quarter

Q2 revenue fell 7% YoY to Rs 18.5bn, weighed down by a decline in custom synthesis business

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08-Nov-22

Greenply Industries (BUY): Stable quarter but margins disappoint

Consolidated Q2 revenue grew 14% YoY on a 7% increase in volumes and 6% higher realisations in India plywood operations

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05-Nov-22

Maruti Suzuki (HOLD): Healthy performance

Q2 gross margin improved to 27% (25% in Q1) due to softer raw material cost and better synergies; volumes up 11% QoQ on festive sales

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05-Nov-22

Cipla (BUY): Robust US and India sales

Q2 revenue up 6% YoY as US/India sales offset decline in other markets; growth at 12% YoY ex-Covid sales in base quarter

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04-Nov-22

Orient Electric (HOLD): One-offs mar performance

Q2 in the red as fans business remained a drag, marked by transition to new energy norms and one-time distribution exercise

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04-Nov-22

Blue Star (HOLD): Best Q2 performer among AC pack

Q2 unitary product margin up 110bps YoY to 6.2%; management commentary positive, unlike tepid outlook from peers

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04-Nov-22

Ajanta Pharma (HOLD): No respite from margin pressure; cut to HOLD

Q2 revenue growth muted at 6% YoY as lower Africa/US sales offset a strong uptick in India/Asia business

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02-Nov-22

Kajaria Ceramics (BUY): Demand sluggish; high gas cost weakens margins

Q2 revenue grew 11% YoY aided by a 10% rise in tile realisations while volume growth stayed flat at ~25msm

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02-Nov-22

Voltas (HOLD): Dismal Q2; UCP margins at decadal low

UCP EBIT margin at 10Y low of 7.3% with flat revenue; exit market share at 23% in Aug’22 vs. 24% in Jun’22

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01-Nov-22

Sun Pharma (HOLD): Strong Q2 but valuations full – cut to HOLD

Brisk Q2 revenue growth at 14% YoY to Rs 110bn backed by ramp-up in global specialty business and healthy India/EM sales

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01-Nov-22

Tata Steel (BUY): Integrated Indian operations to weather downturn

Weak Q2 results as cost adjustments lagged prices; European operations saw a sharper pullback from a stronger Q1

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31-Oct-22

Supreme Industries (HOLD): Muted quarter but H2 revival on track

Q2 revenue grew 8% YoY led by a 9% volume uptick despite seasonal weakness

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29-Oct-22

Dr Reddy's Labs (HOLD): US launch of gRevlimid buoys quarter

Q2 revenue up 9% YoY on sales of gRevlimid in the US; gross margin expansion aids EBITDA growth of 42% YoY

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28-Oct-22

JSW Steel (HOLD): Aggressive growth policy fuels earnings volatility

Q2 results weak as cost adjustment lagged price declines; we cut FY23E EBITDA by 20% as we now expect margin stabilisation in FY24

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28-Oct-22

V-Guard Industries (HOLD): Margin pressure dampens performance

Q2 subdued as EBITDA margin slid 310bps YoY to 7.4% amid absorption of high-cost inventory; RM recovery guided by Q4

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28-Oct-22

SBI Card (BUY): Dull quarter on high opex and credit costs

Operating expenses rose 33% YoY in Q2 on higher client acquisition cost; credit cost also moved up

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28-Oct-22

Reliance Industries (HOLD): Windfall tax limits cyclical upside; consumer business shines

Q2 EBITDA normalised with pullback in O2C profits from record levels; consumer business continued to deliver strong YoY growth

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28-Oct-22

Crompton Greaves (BUY): Q2 a minor blip; expect swift recovery

Q2 EBITDA margin subdued at 11.4% (-410bps YoY) despite in-line revenue; BGAL’s revenue back on track with double-digit margins

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25-Oct-22

Finolex Industries (HOLD): Revival slipped to Q4

Q2 revenue decreased 13% YoY as realisations in PVC resin/PVC pipes & fittings dropped 29%/17%

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22-Oct-22

Laurus Labs (HOLD): CDMO scale-up masks otherwise dismal Q2; cut to HOLD

Q2 revenue grew 31% YoY (+2% QoQ) led by synthesis division and other APIs; FDF revenue at record-low of Rs 1.5bn

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22-Oct-22

Amber Enterprises (HOLD): Structural growth overhang persists

Q2 topline meets estimates but bottomline disappoints with net loss of Rs 30mn owing to higher finance/forex cost

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22-Oct-22

SBI Life (BUY): Strong margin trajectory; better H2 expected

VNB growth strong with margin at 31% in H1FY23, leading us to raise margin estimates through FY25

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22-Oct-22

Glenmark Life Sciences (BUY): Slowdown in parent-led business weakens revenue

Q2 revenue fell 9% YoY led by a 10% decline in API business owing to lower sales to parent Glenmark Pharma (-33% YoY)

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21-Oct-22

HDFC Life (BUY): Merger with Exide Life completed; focus on growth

H1 gross premium grew 13% YoY; however, Q2 gross premium missed our estimate by 7%

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21-Oct-22

Dixon Technologies (BUY): Buoyant numbers, bright prospects

Strong Q2 beat with topline up 38% YoY to Rs 39bn and PAT 15% ahead of our estimates at Rs 777mn

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20-Oct-22

Havells India (BUY): Margins hit trough; expect recovery in H2

Muted margins in Q2 owing to poor profitability in both ECD and cables along with wider losses at Lloyd

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20-Oct-22

IIFL Wealth (BUY): Guidance maintained despite slower flows

Q2 AUM grew 5% YoY to Rs 2.7tn with flows muted at Rs 61bn; however, earlier profit guidance remains intact

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19-Oct-22

Bajaj Auto (HOLD): Steady performance in a challenging environment

Q2 revenue growth (16%) driven by realisation gains as volumes stayed flat YoY. Costs dented meaningful margin gains (17% vs. 16% YoY)

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19-Oct-22

Polycab India (BUY): Beat on all fronts

Strong performance in wires & cables boosts Q2 topline by 11% YoY to Rs 33bn; exports up 75%

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19-Oct-22

V-Mart Retail (BUY): LimeRoad deal positive but profitability could suffer

Value fashion marketplace LimeRoad.com acquired for Rs 0.7bn in a bid to strengthen online presence

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15-Oct-22

ICICI Prudential Life (BUY): Some hits, some misses – maintain BUY

H1FY23 VNB grew 25% YoY to Rs 10.9bn with margin profile strong at 31%; on course to double VNB by end-FY23 vs. FY19

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24-Sep-22

Tata Steel (BUY): Merger to simplify group structure

Proposed merger with 7 group entities will simplify the group structure and enable more efficient funding of NINL and mining expansions

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22-Sep-22

Syrma SGS Tech (NOT RATED): Niche player in EMS

Leading EMS player with best-in-class EBITDA margins of 11-13% vs. 4-8% for listed peers

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16-Sep-22

RPG Life Sciences (NOT RATED): Investor day takeaways – Chronic and specialty launch focus

EBITDA margin up 10ppt from FY19 levels to ~20% in FY22 as efforts to improve operational efficiency pay off

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15-Sep-22

IIFL Wealth (BUY): Annual report analysis: Recurring model bears fruit

Slew of fund launches by IIFL AMC a positive; AMC along with IIFL One remain focus segments, with the lens on up-and-coming tier-2/3 markets

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14-Sep-22

KEC International (NOT RATED): Analyst meet takeaways – Headwinds abating

FY23 order inflow (+15% YoY) and margin guidance remains broadly unchanged

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08-Sep-22

Greenpanel Industries (BUY): Structural tailwinds intact

Plans to expand MDF capacity by adding 231,000cbm at a capex of Rs 6bn, for commercial production in Q2FY25

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02-Sep-22

IIFL Wealth (BUY): NDR takeaways – Spotlight on recurring revenue and new clients

Management focused on driving recurring income and net fund flows to scale the business and curb cyclicality

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30-Aug-22

Reliance Industries (HOLD): AGM takeaways – Growth contours defined

Positives from the AGM include a clear succession plan, supercharged 5G rollout, restart of O2C investments, and targets in new energy

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30-Aug-22

SAIL (HOLD): Plodding quest for growth

Expect full benefits of Rs 600bn expansion to flow by FY25; doubling of capacity needed to align employee cost with peers

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25-Aug-22

Zydus Wellness (BUY): Management meet takeaways – Primed for growth

Product innovation, distribution expansion and international footprint expected to aid brisk PAT CAGR of 20% over FY22-FY24, in our view

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13-Aug-22

Divi's Labs (HOLD): No respite in sight for margins

Q1 revenue broadly in line with consensus at Rs 22.5bn (+15% YoY/-10% QoQ), but EBITDA 10% below

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12-Aug-22

Astral (HOLD): Good performance amid challenges; cut to HOLD post rally

Consolidated Q1 revenue grew 73% YoY with plumbing/paints & adhesives up 74%/72%; pipe volumes increased 49%

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12-Aug-22

Aurobindo Pharma (BUY): Healthy growth but margin pressure persists

Q1 revenue of Rs 62bn came in 5% above consensus as US business outperformed; however, EBITDA margin slid 570bps YoY to 15.5%

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11-Aug-22

Pidilite Industries (SELL): Sound business but valuations lofty; reiterate SELL

Consolidated Q1 net revenue increased 60% YoY to Rs 31bn as the C&B/B2B segments grew 64%/50%

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10-Aug-22

Somany Ceramics (BUY): Good quarter; long term outlook remains positive

Q1 revenue growth at 67% YoY due to 42% increase in tile volumes (+20% vs Q1FY20) &15.5% rise in blended realisation (+17% vs Q1FY20)

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10-Aug-22

Amber Enterprises (HOLD): Mixed quarter; challenges ahead

Q1 EBITDA margin down 100bps QoQ to 5.4% and adj. PAT below estimates at Rs 429mn

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09-Aug-22

V-Mart Retail (BUY): Growth off low base but yet to retrace to pre-Covid levels

Q1 revenue grew 230% YoY to Rs 5.9bn (80% from VMART, 20% from Unlimited stores); 3.8% growth (ex-Unlimited) vs. Q1FY20

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08-Aug-22

Greenply Industries (BUY): New capacities to form next leg of growth

Consolidated Q1 revenue grew 74% YoY backed by a 79% increase in plywood volumes and 3% rise in price realisation for India operations

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06-Aug-22

Alkem Labs (HOLD): Higher expenses and forex loss dent margins; cut to HOLD

Q1 revenue declined 6% YoY (+4% QoQ) to Rs 25.7bn on a high base, and EBITDA dropped 66% on weak margins

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05-Aug-22

Glenmark Life Sciences (BUY): Margins improve despite revenue decline

Q1 revenue fell 7% YoY on a high base (+6.5% ex-Covid portfolio) with CDMO/ API down 38%/7%; RM relief and PLI incentives boosted gross margin

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05-Aug-22

Blue Star (HOLD): Commendable margin performance

Q1 EBIT margin in cooling business relatively strong at 8.1%, outperforming peers

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05-Aug-22

Cera Sanitaryware (HOLD): Strong Q1; upside capped post rally – cut to HOLD

Consolidated Q1 revenue grew 74% YoY backed by high demand from home renovation projects, real estate launches and price hikes

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04-Aug-22

Voltas (HOLD): Competitive edge appears blunted; downgrade to HOLD

Subpar Q1 on double whammy of lower cooling business margins and provisioning-led losses in projects business

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04-Aug-22

ERRATUM: Tata Steel (BUY): Preferred pick as we look beyond volatility

TATA exposed to slower pickup in China but we expect Chinese demand to stabilise over H2, providing support to regional margins

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04-Aug-22

Dixon Technologies (BUY): Annual report analysis: Targeting higher EMS share

Key initiatives taken in FY22 to bolster business in electronic manufacturing services (EMS), including PLI initiatives

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29-Jul-22

Ajanta Pharma (BUY): Margin stress continues despite strong revenue growth

Q1 revenue growth robust at 27% YoY (13% ahead of consensus), supported by a low base in Asia/Africa and momentum in India

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29-Jul-22

Zydus Wellness (BUY): First normal quarter post-Covid; retain BUY

Q1 revenue grew 17% YoY (9% QoQ) to Rs 6.9bn aided by price hikes and 10.3% volume growth

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29-Jul-22

SBI Life (BUY): Standout performance by the market leader; BUY

Stellar growth as Q1 gross premium increased 35% YoY with NBP up 67% and renewal premium up 14%

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29-Jul-22

V-Guard Industries (HOLD): Margin blip in Q1

Q1 EBITDA margin hit by A&P spend and write-offs; ECD/electronics margins guided to recover to ~7%/16% in FY23

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28-Jul-22

SBI Card (BUY): Ticks most boxes; maintain BUY

Q1 credit card spends grew 79% YoY and cards in force 19% YoY, with strong asset quality

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28-Jul-22

Laurus Labs (BUY): Synthesis business saves the day

Q1 revenue/EBITDA came in 5%/8% above consensus and grew 20%/ 15% YoY to Rs 15.4bn/Rs 4.5bn

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27-Jul-22

Dixon Technologies (BUY): Strong Q1 topline; remains the best PLI play

Mobiles segment drove Q1 topline growth; calibrated pricing action and cost-saving initiatives helped improve margins sequentially

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27-Jul-22

Reliance Industries (HOLD): Refining upside capped; roadmap for new energy next catalyst

RIL captured upsides in refining margin and gas prices in Q1, but an increase in tax rate and Jio depreciation resulted in a miss on net income

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26-Jul-22

IIFL Wealth (BUY): Decent set of numbers considering headwinds; Maintain ‘BUY’

Focus on expanding trail-based ARR model; recurring revenue constituted 68% share in Q1 and recurring AUM 57%

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26-Jul-22

Orient Electric (HOLD): Headwinds in core portfolio, maintain HOLD

Q1 gross margin maintained but EBITDA margin drained by higher A&P spend (+108% YoY) and logistics & warranty expense (+87% YoY)

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26-Jul-22

JSW Steel (HOLD): Aggressive growth policy a risk – cut to HOLD

With a weaker outlook for steel margins in H1, JSTL lowers capex plan for FY23 to manage leverage but maintains Rs 480bn plan over 3 years

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26-Jul-22

Supreme Industries (HOLD): Healthy topline but margins soft; downgrade to HOLD

Q1 revenue grew 64% YoY led by increased realisations (+8%) and volume recovery (+53%) on a soft base

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26-Jul-22

Finolex Industries (HOLD): Near-term pain ahead; downgrade to HOLD

Q1 revenue increased 23% YoY as volumes/realisations rose 29%/4% in PVC pipes & fittings and 25%/0.2% in PVC resin

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25-Jul-22

Crompton Greaves (BUY): Temporary margin miss; expect swift recovery

Q1 miss on margins due to one-time costs; expect margins to course correct in 9MFY23 against backdrop of lower commodity costs

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22-Jul-22

Greenpanel Industries (BUY): MDF remains in the driver’s seat

Q1 revenue climbed 51% YoY to Rs 4.6bn led by growth of 50%/57% YoY (-1.6%/0.4% QoQ) in MDF/plywood

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21-Jul-22

Kajaria Ceramics (BUY): Margins healthy despite cost inflation; retain BUY

Q1 revenue grew 80% YoY (-8.5% QoQ) spurred by a 15% (+2% QoQ) rise in tile realisations and 53% (-10% QoQ) volume growth

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21-Jul-22

Havells India (BUY): Short-term margin blip, better road ahead

Q1 EBITDA margin hit by absence of price hikes, while falling commodity prices hurt profitability in key cables and wires segment

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21-Jul-22

Century Plyboards (BUY): Impressive sequential performance

Q1 revenue/PAT came in at Rs 8.8bn/Rs 0.9bn led by healthy price realisations across segments (ex-plywood)

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20-Jul-22

Polycab India (BUY): Resilient margins offset moderation in revenue

Pricing action, cost-cutting initiatives and premiumization all helped to keep margins intact in Q1

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19-Jul-22

HDFC Life (BUY): Sustainable growth, high visibility – BUY

Q1 gross premium increased 23% YoY with NBP up 27% and renewal premium up 19%

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18-Jul-22

Jindal Steel & Power (BUY): Q1 beats estimates; look beyond uncertainty – BUY

Q1 results ahead of consensus but net debt reduction muted with higher working capital build

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18-Jul-22

ICICI Prudential Life (BUY): Strong APE growth and high margins but low premium growth

Q1 APE grew 25% YoY to Rs 15.2bn led by the savings segment at 25% and protection at 22%

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15-Jul-22

Larsen & Toubro (NOT RATED): Annual report analysis – In a good place

Strategic growth plan ‘Lakshya’ targets revenue of Rs 2.7tn and ROE of 18%+ by FY26

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12-Jul-22

[Initiation] IIFL Wealth (BUY): Juggernaut rolling; initiate with BUY

Sustainable model with diverse product offerings in HNI/UHNI category and focus on expanding trail-based recurring revenue streams

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04-Jul-22

Orient Electric (HOLD): Annual report analysis – Strategic initiatives paying off

Targeting key growth drivers such as greater reach in South India, channel diversification and innovation-led product development

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01-Jul-22

Cera Sanitaryware (BUY): Consistent Performer

We expect CRS to clock revenue CAGR of ~16.5% during FY22-24E aided by growth in sanitaryware and faucetware segments

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01-Jul-22

Crompton Greaves (BUY): Annual Report Analysis – Fortifying its market position

Leadership maintained in fans and pumps, while being a top player in lighting. BGAL acquisition to strengthen adjacency offerings

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30-Jun-22

Calcom Vision (NOT RATED): An upcoming ODM player in LEDs and fans

Calcom Vision Ltd, an ODM player, specializes in LED manufacturing and is expanding its competencies in BLDC fans

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29-Jun-22

Zydus Wellness (BUY): In a sweet spot !!!

Accelerated launch of innovative products, growing international footprint, and expanding customer base augur well for the company

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22-Jun-22

Dr Reddy's Labs (HOLD): Investor Day – Peek into the future

DRRD unveiled a framework to make its business future ready

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20-Jun-22

V-Mart Retail (BUY): Near-term pain gets accentuated

Due to disruptions in UP and Bihar, which form 65-70% of the top-line, the sale is expected to be adversely impacted in Q1FY23

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20-Jun-22

[Initiation] Glenmark Life Sciences (BUY): Niche API player with superior margins – initiate with BUY

Pure-play API company with robust market share in key high-value, low-volume chronic therapies, alongside budding CDMO business

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10-Jun-22

Havells India (BUY): Annual report analysis: Product innovation focus paying off

Management optimistic about margin recovery on the back of strong underlying demand across segments

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09-Jun-22

Greenpanel Industries (BUY): On a strong MDF-led growth trajectory – raise to BUY

Well placed to capitalise on near-term MDF demand traction, with strong guidance of 15-18%/15% volume growth in FY23/FY24

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08-Jun-22

Polycab India (BUY): Annual report analysis – W&C well capitalised; FMEG remains key

Maintains leadership in wires & cables with ~23% market share; growth momentum in FMEG business sustained in FY22 (5Y CAGR of 30%)

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06-Jun-22

Voltas (BUY): Market share partly recouped in April

Claws back ~200bps of market share in April over March, taking share to 21.6%

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06-Jun-22

[Initiation] SBI Card (BUY): A play on India’s cashless revolution – initiate with BUY

Major player in credit card domain with vast growth potential due to partnership with parent SBIN and customised offerings

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31-May-22

Aurobindo Pharma (BUY): Launch momentum to gather pace; valuations attractive

Q4 EBITDA margin stable QoQ at 16.8% but down 450bps YoY with 335bps YoY contraction in gross margin

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31-May-22

Sun Pharma (BUY): Strong India growth; cost normalisation impacts margins

Q4 EBITDA/adj. PAT declined 17%/28% QoQ (+6%/-5% YoY) due to 350bps QoQ contraction in operating margin

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31-May-22

Astral (BUY): Emerging as a one-stop building materials player; raise to BUY

Consolidated Q4 revenue grew 23% YoY with pipe/adhesive segments up 22%/27%; pipe volumes increased 11%

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30-May-22

Dixon Technologies (BUY): A play on PLI

Mobiles segment drove 40% YoY Q4 topline growth; calibrated pricing action and cost-saving initiatives helped improve margins sequentially

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30-May-22

Crompton Greaves (BUY): Prudent cost management aids Q4

Q4 margin well maintained led by key initiatives of brand building, fortifying the distribution network and cost cutting

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30-May-22

Blue Star (HOLD): AC industry growth to double amid ‘golden era’

Management expects AC market to clock 20% CAGR over five years (vs. 7-10% historically) buoyed by increased affordability and reach

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30-May-22

Voltas (BUY): Annual report analysis: Reinforcing its #1 position

Retains leadership in RAC segment with 23.4% market share; bolstering supply chain through JV with Highly

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26-May-22

V-Mart Retail (BUY): Festive demand drives growth

Q4 revenue grew 30% YoY to Rs 4.6bn, with 84% coming from VMART and 16% from Unlimited stores

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23-May-22

Divi's Labs (HOLD): Strong all-round beat but growth unsustainable – cut to HOLD

Robust standalone Q4 revenue/EBITDA growth of 45%/57% YoY, ahead of consensus by 11%/17%

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22-May-22

Lupin (SELL): Operationally poor quarter; further weighed down by one-offs

LPC booked a loss of Rs. 5.2 bn in Q4 with weak operating performance and contraction in margins, EBITDA was ~50% below consensus

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20-May-22

V-Guard Industries (HOLD): Margin pressure continues

Q4 revenue growth strong at 24% YoY on the back of higher sales in electrical and consumer durables segments, but margins remain stressed

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20-May-22

Dr Reddy's Labs (HOLD): Operating performance in line; impairment weighs down profit

India, Russia, US and one-off opportunities drove 15% YoY sales growth in Q4; non-core brands divested in Russia and India

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20-May-22

Somany Ceramics (BUY): Another quarter of weak performance

Q4 revenue growth muted at 9.7% YoY due to a 5% decline in tile volumes, though blended realisation rose 14% to Rs 333/msm

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19-May-22

Pidilite Industries (SELL): Earnings miss, unabated cost inflation; downgrade to SELL

Consolidated Q4 net revenue increased 12% YoY to Rs 25bn as the C&B/B2B segments grew 11%/21%

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19-May-22

Finolex Industries (BUY): Higher volumes drive topline but PVC price volatility persists

Q4 revenue increased 28% YoY as volumes/realisations rose 4%/9% in PVC pipes & fittings and 32%/8% in PVC resin

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19-May-22

PI Industries (BUY): Healthy quarter

Q4 revenue growth healthy at 17% YoY driven by a 47%/11% increase in the AgChem/CSM segments

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18-May-22

Zydus Wellness (BUY): Revival underway; retain BUY

Q4 revenue grew 5.6% YoY (65% QoQ) to Rs 6.4bn aided by price hikes; volumes muted

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17-May-22

Kajaria Ceramics (BUY): Muted volume growth and higher gas prices play spoilsport

Q4 revenue grew 16% YoY (+3% QoQ) spurred by a 13% rise in tile realisations; volume growth was subdued at 2%

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17-May-22

Century Plyboards (BUY): Strong quarter; raise to BUY post correction

Q4 revenue/PAT came in at Rs 8.9bn/Rs 0.9bn led by robust price realisations across segments (ex-plywood)

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16-May-22

Greenply Industries (BUY): Steady revenue; new capacities to form next leg of growth

Consolidated Q4 revenue grew 13% YoY backed by an 8% rise in plywood volumes and 7% rise in price realisation for India operations

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14-May-22

Alkem Labs (BUY): Q4 revenue in line; margin guidance weak

Q4 revenue of Rs 24.8bn broadly in line with our estimate; PAT reduced 55% to Rs 1.1bn on account of prior years’ tax

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13-May-22

Amber Enterprises (HOLD): Components business remains in focus

Q4 topline strong but higher RM and operating costs dent margins and bottomline

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13-May-22

Tech Mahindra (BUY): In-line performance; Communication TCV strong

Q4 revenue growth in line at 4.9% QoQ USD, spearheaded by the enterprise segment; TCV robust at US$ 1.01bn

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12-May-22

Voltas (BUY): Strong strategy for southern market holds the key

Analysis of AC/cooler ownership shows higher product penetration in North India while the South lags

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11-May-22

Cera Sanitaryware (BUY): Highest-ever EBITDA margin with healthy demand outlook

Consolidated Q4 revenue up 7% YoY ex-one-offs of Anjani Tiles divestment and Ind AS-105 application; amounted to Rs 525mn

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11-May-22

Polycab India (BUY): Wired for growth

Strong quarter with the core cable and wire business performing well on revenue and margins, beside maintaining market leadership

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11-May-22

Cipla (BUY): Strong India and US growth marred by lower margins

Slight miss on Q4 revenue but EBITDA underperformed our estimate by 32% due to lower margins (incl. one-time charge of Rs 2bn)

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11-May-22

Orient Electric (HOLD): Premiumisation is key

ECD weakness hurt Q4 topline growth; aggressive price hikes helped to sustain gross margin despite RM cost pressure

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11-May-22

Ajanta Pharma (BUY): Margin stress continues

Q4 revenue 6% ahead of our estimate but margins disappointed with gross/EBITDA margin contraction of 530bps/1050bps YoY to ~72%/24%

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10-May-22

Reliance Industries (HOLD): Margin uptick in cyclicals; consumer business to drive growth

Q4 results in line with consensus – O2C and digital services performed well; we raise FY23/FY24 EBITDA by 8%/4%

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09-May-22

Voltas (BUY): Structural story intact

Below-expected quarter but strong portfolio and distribution coupled with low market penetration remain key structural drivers

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06-May-22

Greenpanel Industries (HOLD): Strong margin expansion despite lower MDF & plywood volumes

Q4 revenue climbed 21% YoY to Rs 4.7bn led by 31% growth in MDF but plywood revenue declined by 15%

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06-May-22

Blue Star (HOLD): Gunning for market share

Good quarter with strong room AC sales due to harsh summer and pent-up demand in target markets, aided by its broad product portfolio

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05-May-22

Tata Steel (BUY): Results in line; growth allocation to improve – BUY

Q4 results in line with consensus, dividend payout raised to 15% with improved gearing, and 10:1 stock split announced

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05-May-22

Havells India (BUY): Plenty of positives – BUY

Strong Q4 topline aided by Lloyd and the wires & cables business, though RM inflation remained a drag on margins

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04-May-22

Eris Lifesciences (BUY): Launch investments cramp margins; forays into derma

Q4 sales/EBITDA contracted 8%/20% QoQ (up 10%/3% YoY) due to structural decline in the cardiometabolic segment

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02-May-22

Alembic Pharma (HOLD): Mixed quarter; cut to HOLD amid rising margin pressure

Q4 revenue growth at 11% YoY led by broad-based domestic uptick and 17% growth in the US; ROW declined 19% YoY

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02-May-22

LIC (SUBSCRIBE): Insurance colossus with sharp growth focus – SUBSCRIBE

Steadfastly retains >60% market share despite stiff competition and is well positioned to capture opportunities in a growing industry

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29-Apr-22

Wipro (BUY): In-line performance; maintain BUY

Q4 revenue growth slightly ahead of estimates at 3.1% QoQ USD driven by manufacturing, retail and BFSI

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29-Apr-22

Supreme Industries (BUY): Healthy volumes but margins soft; raise to BUY post correction

Q4 revenue grew 23% YoY led by increased realisations (+6%) and volume recovery (+16%)

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29-Apr-22

Laurus Labs (HOLD): Mixed Q4; non-ARV business guided to drive $1bn in sales

Q4 topline growth 14% ahead of consensus as healthy CDMO, FDF and non-ARV API sales offset decline in ARV business

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28-Apr-22

Persistent Systems (HOLD): Stellar, all-round performance

Q4 revenue growth of 9.1% QoQ USD outperformed estimates led by services business; TCV at US$ 361mn rose 8% QoQ

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21-Apr-22

HCL Technologies (BUY): Growth muted; TCV and guidance robust

Q4 revenue growth of 0.5% QoQ USD underperformed our estimate owing to a double-digit slowdown in Mode-3 business

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20-Apr-22

L&T Infotech (BUY): Soft growth; maintain BUY on strong TCV

Q4 revenue growth of 3.6% QoQ CC below our estimate of 5%; however, net new TCV robust at US$ 80mn, up 21% YoY

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18-Apr-22

Mindtree (BUY): In-line quarter; robust TCV a key positive

Q4 revenue growth at 4.8% QoQ USD was largely in line with our estimate, driven by travel and BFSI verticals; manufacturing and retail slowed

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13-Apr-22

Infosys (BUY): Subpar quarter; FY23 guidance robust

Q4 revenue growth muted at 0.7% QoQ USD, below our (4.1%) and street estimates. TCV robust at US$ 2.3bn

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12-Apr-22

Tata Consultancy Services (BUY): Resilient margins

Q4 revenue growth at 3.2% QoQ CC beat consensus expectations of 2.3% but came in a tad lower than our estimate

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29-Mar-22

Aurobindo Pharma (BUY): Acquisition of Veritaz Healthcare marks India formulations

ARBP acquired Veritaz Healthcare at 1x FY22E sales (9.8x EBITDA), marking its foray into domestic formulations

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14-Mar-22

[Initiation] Zydus Wellness (BUY): Robust health and wellness portfolio – initiate with BUY

Product innovation, distribution expansion and Heinz India merger synergies expected to aid brisk PAT CAGR of 11% for FY21-FY24

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04-Mar-22

Greenpanel Industries (BUY): On a strong growth trajectory

GREENP well placed to capitalise on near-term MDF opportunity with management guiding for 15% volume growth in FY23E

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24-Feb-22

Sun Pharma (BUY): Alchemee acquisition to expand global branded derma portfolio

SUNP, through subsidiary Taro Pharma, to acquire Galderma’s skincare arm Alchemee in US$ 90mn all-cash deal

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18-Feb-22

Butterfly Gandhimathi Appliances (NOT RATED): Fast-growing, pan-India branded play

One of the fastest growing kitchen appliance companies in India with leadership in steel LPG stoves and tabletop wet grinders

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18-Feb-22

Oil & Gas: Expert call - Refining and shipping outlook

Current refining demand growth expectations may prove conservative, keeping refining and product markets tight

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18-Feb-22

Affle (India) (BUY): Limited impact from Google’s new privacy measures

Google plans to adopt new privacy initiatives (termed Privacy Sandbox) to curtail tracking across apps on Android smartphones

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15-Feb-22

Greenply Industries (BUY): New capacities to cater the growing demand

Consolidated Q3 revenue grew 24% YoY backed by 11% increase in plywood volumes and 7% rise in price realisation for India operations

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14-Feb-22

Reliance Industries (HOLD): Derisking the O2C business

RIL plans to restructure a part of its O2C business to address climate risks and open up new opportunities for value addition

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11-Feb-22

Divi's Labs (BUY): Remarkable quarter; upgrade to BUY

Q3 surpassed expectations on all fronts with revenue/EBITDA growth at 49%/62% YoY, ahead of consensus by 15%/26%

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11-Feb-22

V-Mart Retail (BUY): Well placed to capture value fashion opportunity; raise to BUY

Q3 revenue growth at 47% YoY to Rs 6.9bn, with 83% coming from VMART and 17% from Unlimited stores

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11-Feb-22

Alembic Pharma (BUY): US business weak but showing signs of stabilising

Q3 revenue dipped 3% YoY on a steep decline in US (-23%) and API (-8%) business, despite growth in India (+17%) and ROW (+13%)

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10-Feb-22

Aurobindo Pharma (BUY): Headwinds continue; Plans India formulations foray

Q3 revenue declined 6% YoY despite 48% growth in APIs as US (-13%) and ARV (-65%) business contracted

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07-Feb-22

Affle (India) (BUY): Record revenue growth aided by JAMPP

Q3 revenue growth at 24% QoQ and 126% YoY – the highest ever in AFFLE’s history led by rise in CPCU and user volumes

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05-Feb-22

Lupin (SELL): Major benefits remain back ended, 3Q disappoints

Q3 revenue growth modest at 4% YoY (+2% QoQ) despite strong US and India formulation business, as API revenue declined 25%

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05-Feb-22

Alkem Labs (HOLD): Strong domestic growth; weak margins

Robust traction in India formulations (+20% YoY) during Q3, partly offset by a 7% decline in US generic revenue

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05-Feb-22

Astral (HOLD): Decent quarter; FY24 outlook bright

Consolidated Q3 revenue grew ~23% YoY with pipe/adhesive segments up 25%/16%; pipe volumes dipped 4% due to dealer destocking

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02-Feb-22

eClerx Services (BUY): All-round outperformance; maintain BUY

Q3 revenue growth at 5.9% QoQ USD beat our estimate led by a sharp increase in offshoring

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01-Feb-22

Tech Mahindra (BUY): Mixed bag – growth outperforms, margin disappoints

Q3 revenue growth robust at 4.1% QoQ USD, outperforming our estimate of 3.6%, driven by the CME vertical

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01-Feb-22

Ajanta Pharma (BUY): Strong revenue growth but margins contract

Q3 revenue up 12% YoY spurred by branded formulations business in India and Africa; US sales down 14% QoQ to US$ 22mn

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01-Feb-22

Sun Pharma (BUY): Broad based growth; steady margins

Strong Q3 with YoY growth across geographies; flat sequential growth in domestic/ROW markets due to lower Covid portfolio contribution

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31-Jan-22

Info Edge (BUY): Impressive growth led by recruitment business

Q3 revenue growth of 14.7% QoQ and 48% YoY was INFOE’s highest in over a decade, led by its recruitment business

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31-Jan-22

Century Plyboards (BUY): Strong quarter but margin disappoints; raise to BUY post correction

Q3 revenue/PAT came in at Rs 8.5bn/Rs 0.9bn led by robust price realisations across segments (except plywood)

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31-Jan-22

Dr Reddy's Labs (HOLD): Stable quarter, US price erosion continues; cut to HOLD

Growth in Q3 driven by product launches and higher volumes, partly offset by US price erosion

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29-Jan-22

Eris Lifesciences (BUY): Cardio-metabolic segment headwinds hamper growth

Industry-wide slowdown in cardiometabolic segment (59% revenue share for ERIS) affected Q3 growth

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29-Jan-22

Laurus Labs (HOLD): PAT declines 44% on negative operating leverage

Inventory destocking in ARV API/FDF led to 20% YoY decline in revenue; guided to normalise from Q4

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28-Jan-22

Reliance Industries (HOLD): Broader growth canvas; raise to HOLD

Q3 results a mixed bag – retail and oil & gas performed well but digital services and O2C delivered muted sequential growth

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27-Jan-22

Coforge (BUY): Robust quarter – beat on margins

Q3 revenue grew 4.2% QoQ USD, roughly in line with estimate. Growth was driven by the BFS vertical with a modest uptick in travel

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27-Jan-22

Pidilite Industries (HOLD): Broad-based growth but sharp RM headwinds a drag

Consolidated Q3 net revenue up 24% YoY to Rs 28.5bn as C&B/B2B segments grew 23%/30%

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27-Jan-22

Finolex Industries (HOLD): Tepid earnings outlook; PVC prices volatile

Q3 revenue declined 6% YoY as volumes fell 15% in PVC pipes & fittings and 36% in PVC resin

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26-Jan-22

Cipla (BUY): Growth led by India business

Q3 sales growth modest at 6% YoY led by US and India formulations. API sales declined due to slowdown in orders from developed markets

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25-Jan-22

IndiaMart InterMesh (BUY): Below-expected Q3; retain BUY on deferred revenue growth

Q3 revenue up 3% QoQ, short of our estimates due to weak ARPU growth

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25-Jan-22

Cera Sanitaryware (BUY): Healthy demand traction with positive outlook

Q3 consolidated revenue grew 28% YoY with the sanitaryware/faucet segments increasing 51%/60%

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25-Jan-22

ICICI Bank (HOLD): Gaining traction; cut to HOLD on fair valuations

Augmented risk architecture to enhance overall performance with total CAR estimated at robust 19-20% levels, enabling growth

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25-Jan-22

Supreme Industries (BUY): Disappointing quarter; structural story intact

Q3 revenue grew 5.5% YoY led by high realisations (+31%) though volumes declined 18%

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24-Jan-22

Greenpanel Industries (BUY): Excellent quarter despite lower MDF volumes

Q3 revenue climbed 34% YoY to Rs 4.2bn led by 40% growth in MDF and 8% in plywood segment

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24-Jan-22

JSW Steel (BUY): Upgrade to BUY on favourable risk-reward

Q3 results broadly in line; we raise our earnings forecasts on consolidation of BPSL

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21-Jan-22

Kajaria Ceramics (BUY): Robust volume growth reflects strong demand; raise to BUY

Q3 revenue grew 27% YoY (+10% QoQ) driven by 14% volume growth to 25.6msm – the highest-ever volumes for KJC

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21-Jan-22

Persistent Systems (HOLD): Stellar quarter

Above-expected Q3 with revenue growth of 9.2% QoQ USD led by IP business

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21-Jan-22

Mphasis (HOLD): Strong growth, lukewarm margins

Q3 revenue growth robust at 7.6% QoQ USD, ahead of our estimate, driven by direct business, BCM and communications

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20-Jan-22

Just Dial (BUY): Disappointing Q3; Maintain BUY on RRVL led synergy potential

Just Dial (JUST) reported revenue growth of mere 1.9% QoQ-far below estimates, dragged by impact on SMEs from covid waves

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19-Jan-22

L&T Infotech (BUY): Growth spree continues; outperformance on all counts

L&T Infotech (LTI) reported strong growth beat with 8.7% QoQ USD growth. EBIT margin at 17.9% was up 70bps QoQ, was above estimates

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19-Jan-22

Errata: HDFC Bank (BUY): Balanced Growth

Bank remains reasonably stable during turbulence

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14-Jan-22

HCL Technologies (BUY): Major growth beat; mode-3 drives momentum

HCL Tech (HCLT) reported stellar growth of 6.7% QoQ USD, beating our estimate of 3.5%

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13-Jan-22

Mindtree (BUY): Margin beat despite supply constraints; upgrade to BUY

Mindtree (MTCL) reported growth of 4.7% QoQ USD, in-line with estimates. Momentum was driven by travel, CMT and BFSI

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21-Dec-21

Prataap Snacks (NOT RATED): Emerging contender in booming snacks business

Fast-growing player in savoury packaged snacks. Strengthening of processes (to stabilise RM cost) and distribution channels to spur growth

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16-Dec-21

AMI Organics (NOT RATED): Emerging pharma intermediate play; riding on Chinese import substitution

Company benefits from the best of two domains in chemical industry: Pharma intermediates and specialty chemicals

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06-Dec-21

Eris Lifesciences (BUY): Foray into India’s insulin market

ERIS enters ten-year, 70:30 JV with MJ Biopharm for marketing rh-insulin, insulin analogues, GLP1 agonists and biosimilars

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03-Dec-21

Tata Power (SELL): Stock rally too high, too fast

TPWR’s ~70% run-up in two months stems from power demand growth, international coal price rally and possible renewables business IPO

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22-Nov-21

Wipro (BUY): Transformed model paying off

WPRO’s analyst meet focused on highlighting results of a transformed business model and reiterating a “bold” strategy

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15-Nov-21

Info Edge (BUY): Strong real estate and recruitment business pickup

Q2 revenue grew 37% YoY, outperforming consensus, with broad-based uptick across Naukri, 99acres and other verticals

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12-Nov-21

Affle (India) (BUY): Growth shines aided by stellar JAMPP performance

Q2 revenue surged 104% YoY aided by above-expected rebound at JAMPP and strong native business growth

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12-Nov-21

Somany Ceramics (BUY): Strong recovery, positive outlook

Consolidated Q2 revenue grew 32% YoY to Rs 5.6bn with tile volumes up 25% and blended realisation up 6% YoY to Rs 306/msm

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12-Nov-21

Pidilite Industries (SELL): Broad-based growth but sharp RM headwinds a drag

Consolidated Q2 net revenue up 40% YoY to Rs 26.3bn. Like-to-like growth at 33% (ex-PAPL)

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12-Nov-21

Tech Mahindra (BUY): Positive commentary instils confidence; 5G outlook optimistic

TECHM’s analyst meet today focused on the 3Ps – Purpose, People and Performance

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11-Nov-21

CESC (HOLD): Fairly priced but upside if distribution is delicensed

Despite steady 8% YoY growth in Q2 pretax income, consolidated net income fell 11% due to lower tax rate in comparable quarter

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10-Nov-21

V-Mart Retail (HOLD): Well placed to capture value fashion opportunity; raise to HOLD

Q2FY22 revenue grew 93% YoY to Rs 3.4bn, marking 107% recovery vs. pre-Covid (Q2FY20) levels on consolidation of 74 ‘Unlimited’ stores

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10-Nov-21

Power Grid Corp (HOLD): Steady but limited growth drivers

Steady 1.9% YoY growth in Q2 pretax income and appreciable decline in outstanding payments

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10-Nov-21

IndiaMart InterMesh (BUY): Correction offers a good opportunity; upgrade to BUY

Stock looks attractive following ~25% correction from its Oct’21 peak – upgrade from HOLD to BUY with unchanged TP of Rs 8,430

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03-Nov-21

Century Plyboards (HOLD): Best quarter ever but valuations full

Q2 revenue/PAT came in at Rs 8.1bn/Rs 1bn led by robust price realisations across segments

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03-Nov-21

eClerx Services (BUY): Stellar Q2FY22 performance; upbeat demand environment

Q2 revenue grew 7.1% QoQ USD, delivering a strong beat. EBIT margin missed our estimate but outperformed consensus expectations

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02-Nov-21

VRL Logistics (BUY): Recovery, expansion and new customers driving growth

Q2 PAT increased 60% YoY as revenue grew 45% due to strong recovery in goods transport and bus service volumes

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01-Nov-21

Finolex Industries (HOLD): Strong realisation and volume growth aid profitability

Q2 revenue growth robust at 85% YoY as PVC realisations surged 63% and pipe volumes grew 27% YoY

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28-Oct-21

Greenpanel Industries (HOLD): Strong quarter led by MDF; cut to HOLD on limited upside

Q2 revenue climbed ~88% YoY to Rs 4.2bn led by ~103% growth in MDF and ~38% in plywood

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27-Oct-21

Cera Sanitaryware (HOLD): Healthy demand traction but priced in

Q2 consolidated revenue grew 24% YoY with the sanitaryware/faucet segments increasing 30%/63%

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27-Oct-21

Persistent Systems (HOLD): Growth outperformance continues

Stellar Q2 print with revenue growth of 9.3% QoQ USD (incl. Capiot) driven by BFSI and healthcare

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27-Oct-21

Cipla (BUY): Results better than expected; EBITDA margin resilient

Q2 revenue/EBITDA grew 10%/4% YoY to Rs 55bn/Rs 12bn, beating our estimates by 6%/4%

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26-Oct-21

Tech Mahindra (BUY): Growth outperforms; 5G demand outlook robust

Q2 revenue growth beat estimates at 6.4% QoQ USD on 6.3%/6.7% enterprise/communications business growth

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25-Oct-21

Coforge (BUY): Strong Q2 performance coupled with large deals

Robust Q2 revenue growth of 6.6% QoQ USD led by BFSI; EBIT margin in line at 14.8% (+230bps QoQ)

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25-Oct-21

Kajaria Ceramics (HOLD): Robust volume growth reflects strong underlying demand

Q2 revenue grew 37% YoY (+73% QoQ) driven by 25% volume growth to 24.8msm

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23-Oct-21

Supreme Industries (BUY): Long-term structural story intact; OPM disappoints

Strong Q2 revenue growth led by high realisations (+38% YoY) and healthy volumes in plastics (+9% YoY)

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23-Oct-21

IndiaMart InterMesh (HOLD): In-line results; on course for growth recovery

Q2 performance in line as sales grew 12% YoY and EBITDA margin stood at 46%

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23-Oct-21

TCI Express (HOLD): Strong volume-led growth

Robust volume growth in Q2 a reflection of improving macros. Network expansion and new sorting centre to sustain growth

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22-Oct-21

Mphasis (HOLD): Mixed bag

Q2 revenue grew 6.4% QoQ USD, outperforming our (4.9%) and street estimates; EBIT margin a miss at 15.1%

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21-Oct-21

Just Dial (BUY): Strategic refresh post Reliance takeover awaited

Disappointing Q2 with revenue contracting 6.9% YoY and miss on margins

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19-Oct-21

L&T Infotech (BUY): Outperformance on all counts

Best revenue growth ever at 8.3% QoQ USD in Q2, aided by secular uptick across verticals, clients, service lines and geographies

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15-Oct-21

HCL Technologies (BUY): Product business a drag on performance

Q2 a miss with subdued revenue growth of 2.6% QoQ USD due to 8.4% contraction in product business

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14-Oct-21

Infosys (BUY): Operational beat coupled with revenue guidance upgrade

Stellar Q2 with revenue growth at 5.7% USD QoQ vs. 4.2% estimated and resilient operating margin

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14-Oct-21

Wipro (BUY): Strong growth and confident commentary; upgrade to BUY

Q2 revenue growth beat estimates at 6.9% USD/8.1% CC QoQ and surpassed guided range of 5-7% CC QoQ

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14-Oct-21

Mindtree (SELL): Upbeat Q2 but valuations lofty

Strong Q2 beat led by significant revenue surprise and resilient operating margin

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12-Oct-21

IndiaMart InterMesh (HOLD): Takeaways from INMART management interaction

Pandemic-led boost to INMART’s outsourced client acquisition model (DSA-based) has improved sales engine efficiency

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09-Oct-21

Tata Consultancy Services (BUY): Management confident of strong medium-term demand

Q2 revenue grew 2.9% QoQ USD, in line with our estimate of 3%; TCV was healthy at US$ 7.6bn

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07-Sep-21

Affle (India) (BUY): Annual report analysis – Sustained R&D focus

Ecosystem-level partnerships fortify AFFLE’s defense against data/ privacy risk

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17-Aug-21

Info Edge (BUY): Naukri poised for accelerated growth; upgrade to BUY

In-line Q1 with revenue up 14% YoY (deferred revenue up 36%) and EBITDA margin at 31.2%

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14-Aug-21

eClerx Services (BUY): In-line quarter; robust outlook

Q1 revenue growth at 1.4% QoQ USD, roughly in line with our estimate of 1.7% QoQ USD

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13-Aug-21

Hero MotoCorp (HOLD): Lacklustre quarter

Q1 revenue fell 37% QoQ on reduced volumes and ASP. High RM cost and lower operating efficiency further dampened PAT

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13-Aug-21

Ashok Leyland (SELL): Margin stress ahead; maintain SELL

Q1 revenue and gross margin beat our estimates but lower operating efficiency crimped profitability

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12-Aug-21

Pidilite Industries (SELL): Raw material pressure hurts gross margin

Consolidated Q1 revenue grew 121% YoY, rebounding from a tepid base

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12-Aug-21

Eicher Motors (SELL): Dull quarter as volumes trend down; maintain SELL

Q1 revenue declined 35% QoQ on weak volumes (-40%). Lower operating efficiency further pulled down profitability

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11-Aug-21

Century Plyboards (HOLD): In-line quarter

Q1 standalone revenue growth robust at 124% YoY off a low base, with strong growth across segments

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09-Aug-21

Astral (SELL): Pipe volumes muted; valuations rich

Consolidated Q1 revenue grew 73% YoY with pipes/adhesives rising 63%/107% due to a low base; pipe volumes grew just 13%

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09-Aug-21

MRF (SELL): Margins to remain under pressure

Q1 revenue fell 13% QoQ, EBITDA margin shrank 400bps on gross margin pressure and adj. PAT fell 49% QoQ to Rs 1.6bn

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09-Aug-21

Affle (India) (BUY): Stellar quarter

Q1 revenue increased 70% YoY driven by 89% growth in CPCU business, with a broad-based uptick across E, F, G, H verticals

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09-Aug-21

VRL Logistics (BUY): Lower losses; volume recovery and price increase to drive growth

Q1 losses fell to below 10% of last year but declined from strong profits in Q4FY21 as volumes slowed and bus operations continued to bleed

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07-Aug-21

Cipla (BUY): Strong quarter

Q1 revenue/EBITDA grew 27%/28% YoY, beating consensus estimates by 7%/19%

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06-Aug-21

Somany Ceramics (BUY): In-line quarter; outlook stronger

Consolidated Q1 revenue grew 95% YoY with tile volumes up 94% due to a low base.

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06-Aug-21

Tata Power (BUY): Strong Q1 led by solar business; transmission reentry announced

Strong results driven by growth in solar products, award to CGPL under APTEL order and uptick in coal mining associates

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06-Aug-21

Balkrishna Industries (SELL): Valuations rich, maintain SELL

Q1 revenue beat our estimate at Rs 18.1bn but EBITDA margin dropped to 28.3% on lower gross margin and higher other expense

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06-Aug-21

JK Tyre & Industries (SELL): Weak Q1; maintain SELL

Q1 revenue in line but gross margin fell short of our estimate, denting operating performance. Adj. PAT a miss at Rs 567mn

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06-Aug-21

TVS Srichakra (SELL): Poor demand and high input cost hit profitability

Q1 revenue in line at Rs 4.8bn but EBITDA margin disappoints at 5.1% due to poor operating efficiency

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06-Aug-21

Cera Sanitaryware (HOLD): Growth picks up off a low base

Q1 consolidated revenue grew 56% YoY due to a low base effect with the sanitaryware/faucet segments increasing 54%/66%

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06-Aug-21

Greenply Industries (HOLD): Low base aids Q1; MDF foray to be beneficial in long run

Consolidated Q1 revenue grew 97% YoY backed by a 98% upswing in India business

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05-Aug-21

Mayur Uniquoters (BUY): Demand trends improving; upgrade to BUY

Standalone Q1 revenue tripled YoY as volumes surged 217% aided by a low base

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05-Aug-21

Hindustan Petroleum Corp (BUY): Q1 muted, project completion the key driver

Q1 reflects weak benchmark refining margin and impact of planned shutdowns but robust marketing margin

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05-Aug-21

Apollo Tyres (SELL): Dull quarter; maintain SELL

Q1 revenue in line but EBITDA margin disappoints at 12.4% due to gross margin pressure and lower operating efficiency

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03-Aug-21

Kajaria Ceramics (HOLD): In-line quarter

Consolidated Q1 revenue grew 102% YoY as tile volumes doubled, aided by a soft lockdown-hit base quarter

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02-Aug-21

Indian Oil Corp (BUY): Q1 muted but core refining earnings have bottomed out

Q1 earnings reflect a muted refining performance but recovery in marketing margin

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02-Aug-21

Finolex Industries (HOLD): Higher PVC resin prices aid profitability

Q1FY22 revenue growth robust at 72% YoY as PVC realisations surged 93% YoY

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31-Jul-21

Ajanta Pharma (BUY): Strong earnings growth; reiterate BUY

Q1 PAT robust at Rs 1.7bn, up 17% YoY. Sales grew 12% YoY while EBITDA declined 2%

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30-Jul-21

Eris Lifesciences (HOLD): Strong quarter; cut to HOLD post recent rally

Q1 EBITDA/PAT growth strong at 22%/20% YoY to Rs 1.3bn/Rs 1.1bn, meeting street estimates

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29-Jul-21

Tech Mahindra (BUY): Positive 5G-led traction in large deals

Q1 dollar revenue growth beat our estimate at 4.1% QoQ on 4.7% enterprise business growth and 3.2% recovery in communications

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29-Jul-21

TVS Motor (SELL): Dull quarter; maintain SELL

Q1 revenue met our estimate but EBITDA margin fell short at 7% and adj. PAT declined 70% QoQ to Rs 833mn

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29-Jul-21

Coforge (BUY): Yet another positive surprise; maintain BUY

Q1 strong with 16% QoQ USD revenue growth led by BFSI. EBIT margin in line at 12.6% (-107bps QoQ)

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28-Jul-21

Greenpanel Industries (BUY): MDF continues to witness strong growth

Q1 consolidated revenue growth robust at 242% YoY with 272%/132% rebound in MDF/plywood segments off a soft base

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28-Jul-21

Maruti Suzuki (HOLD): Weak Q1, volume outlook healthy; cut to HOLD on limited upside

MSIL’s Q1 revenue fell 26% QoQ while lower gross margin and higher staff cost capped EBITDA margin at 4.6%. Adj. PAT declined 62% QoQ

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28-Jul-21

Mahindra Logistics (BUY): Recovery in net income; focus on warehousing

Strong Q1 operating income of Rs 164mn in a challenging quarter vs. a loss of Rs 206mn in Q1FY21

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27-Jul-21

Alembic Pharma (HOLD): US disappoints; acute-led recovery in domestic business

ALPM reported a 42% YoY decline in Q1 EBITDA due to weak US sales led by increased competition in key molecules and launch delays

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26-Jul-21

GNA Axles (HOLD): Healthy Q1 but recent rally limits upside; maintain HOLD

GNA’s Q1 revenue grew 6% QoQ. Better operating efficiency offset a below-expected gross margin, aiding EBITDA margin of 16.6%

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24-Jul-21

Persistent Systems (HOLD): An all-round growth beat; upgrade to HOLD

PSYS reported stellar Q1FY22 numbers with dollar revenue growth of 9.1% QoQ (incl. Capiot) driven by BFSI and healthcare

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23-Jul-21

IndiaMart Intermesh (HOLD): Resilient showing in Covid-hit Q1

INMART reported a decent Q1FY22 performance with 20% YoY revenue growth and a 50% EBITDA margin

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23-Jul-21

Mphasis (HOLD): Direct business growth negates shortfall in DXC – raise to HOLD

MPHL grew 6.3% QoQ USD in Q1, outperforming our (4%) and street estimates. EBIT margin was a miss at 15.9% due to the pandemic impact

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22-Jul-21

Bajaj Auto (SELL): Input cost headwinds weaken margins

BJAUT’s Q1 revenue declined 14% QoQ on lower volumes (-14%) and flat ASP. High RM cost further pulled down profitability

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22-Jul-21

Ceat (SELL): Gross margin pressure and poor demand hit profitability

CEAT’s Q1 revenue fell below projections at Rs 19bn and gross margin declined, weakening EBITDA margin to 8.7%. Adj. PAT was at Rs 199mn

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21-Jul-21

Supreme Industries (HOLD): Volumes hit by lower agricultural pipe sales

SI’s Q1 volumes slipped 22% YoY as agri pipe demand slowed, but pass-along of higher RM prices aided consolidated revenue growth of 27% YoY

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19-Jul-21

HCL Technologies (BUY): Second Covid wave hinders growth

HCLT reported 0.9% QoQ dollar revenue growth in Q1FY22, underperforming our estimate of 1.5% due to the Covid2.0 impact

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19-Jul-21

Swaraj Engines (SELL): Healthy Q1; cut to SELL on recent stock rally

Above-expected volumes and higher ASP supported healthy revenue growth in Q1FY22 while limited RM cost impact further drove adj. PAT

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17-Jul-21

Just Dial (BUY): Reliance Retail to acquire controlling stake; BUY

RRVL’s Rs21.6bn capital infusion to acquire 25% of JUST DIAL (JUST) to drive revenue growth was the key positive development

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16-Jul-21

L&T Infotech (BUY): Strong start to FY22

LTI’s Q1FY22 revenue grew 5.1% QoQ USD, its best first-quarter growth ever, due to an uptick in hi-tech and BFS

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16-Jul-21

Wipro (HOLD): Simplified operating model pays off

WPRO posted an upbeat QoQ performance in Q1FY22 with 12% CC revenue growth, ahead of our (8.9%) and street estimates

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14-Jul-21

Infosys (BUY): Strong start to FY22 fortifies growth leadership; upgrade to BUY

INFO’s Q1FY22 revenue growth of 4.8% CC QoQ outperformed our estimate of 3.8% CC and street expectations of 3.8% USD

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13-Jul-21

Mindtree (SELL): Demand robust; margin weighed down by supply constraints

Mindtree (MTCL) reported a strong Q1FY22 performance with revenue growth of 7.7% QoQ USD, ahead of our (5.4%) and street estimates

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09-Jul-21

Tata Consultancy Services (BUY): India contraction plays spoilsport; core market growth intact

TCS reported 2.4% QoQ cc growth (vs. est. of 3.5%), impacted by contraction in India geography. Core market growth was intact at 4.1%

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07-Jul-21

Deepak Fertilisers (NOT RATED): Takeaways from company interaction

DPFCL’s FY21 performance was best ever for the company with EBITDA/PAT jump of 2.1x/4.6x YoY

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01-Jul-21

Spicejet (SELL): Liquidity crisis, rising fuel cost dampen outlook; SELL

SJET’s Q4FY21 revenue plunged 35% YoY and it reported an adjusted net loss of Rs 2.4bn, translating to negative EPS of Rs 3.9

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28-Jun-21

Finolex Industries (HOLD): Higher PVC prices boost profitability

FNXP reported strong Q4FY21 revenue growth of 63% YoY as PVC prices surged 68% YoY, driving up realisations

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24-Jun-21

Cera Sanitaryware (HOLD): Near-term headwinds but outlook improving

CRS’s management expects unlocking to rejuvenate demand led by tier-2-and-below cities and targets 17-18% revenue growth for FY22

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21-Jun-21

Info Edge (SELL): Higher momentum in other verticals to weigh on profitability

INFOE reported below-expected Q4FY21 numbers with revenue down 10% YoY (-6.5% est.) and EBITDA margin at 18% (29% est.)

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21-Jun-21

NTPC (HOLD): Renewables target doubled but not giving up on coal yet

NTPC reported strong 31% YoY growth in Q4FY21 net income driven by capacity expansion

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21-Jun-21

Vst Tillers Tractors (HOLD): Limited upside; cut to HOLD

VSTT’s Q4 operating performance was in line. EBITDA margin fell 220bps QoQ on higher RM cost and adj. PAT declined 14% to Rs 264mn

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18-Jun-21

RPG Life Sciences (NOT RATED): Annual investor conference takeaways

RPGL reported revenue growth, margin expansion and debt reduction in FY21 despite Covid-led disruptions in the acute portfolio

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17-Jun-21

Somany Ceramics (BUY): Strong operational performance, BUY remains

SOMC reported consolidated Q4FY21 revenue growth of 59% YoY with tile volumes up 52% off a low base due to the national lockdown last year

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17-Jun-21

Ceat (SELL): Endeavouring to gain market share in non-core segments

At its annual investor event, CEAT outlined plans for market share gains and capacity adds underpinned by an upbeat long-term demand outlook

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15-Jun-21

Greenply Industries (ADD): Decent quarter; cut to ADD on limited upside

GIL reported Q4FY21 consolidated revenue growth of 15% YoY backed by a 21% uptick in India business

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15-Jun-21

Kajaria Ceramics (REDUCE): Strong quarter; maintain REDUCE due to rich valuations

KJC reported consolidated Q4FY21 revenue growth of 46% YoY as tile volumes grew 39%, aided by a soft lockdown-hit base quarter

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13-Jun-21

Mayur Uniquoters (ADD): Stellar quarter; recent rally caps upside – downgrade to ADD

MUNI’s standalone Q4FY21 revenue grew 35% YoY as volumes increased 26% aided by a low base

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11-Jun-21

Century Plyboards (SELL): Strong quarter; downgrade to SELL on rich valuations

CPBI reported robust standalone revenue growth of 41% YoY off a soft base, with the plywood/MDF/laminate segments growing 43%/41%/44%

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11-Jun-21

Cera Sanitaryware (REDUCE): Good quarter; cut to REDUCE on limited upside

CRS reported Q4FY21 consolidated revenue growth of 47% YoY off a tepid base, with the sanitaryware/faucet segments increasing 47%/62%

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10-Jun-21

eClerx Services (BUY): Upbeat FY22 outlook; upgrade to BUY

ECLX reported Q4FY21 revenue growth of 19.3% CC QoQ, including 6.3% organic growth and the balance from its Personiv acquisition

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09-Jun-21

InterGlobe Aviation (ADD): Strong balance sheet, leadership premium – upgrade to ADD

IndiGo’s Q4FY21 RASK came in at Rs 3.3, EBITDAR at Rs 7.3bn was hit by rising fuel costs and the company suffered a Rs 11.6bn net loss

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07-Jun-21

MRF (SELL): Margin headwinds to persist; maintain SELL

MRF’s Q4 revenue grew 4% QoQ to Rs 47bn, EBITDA margin shrank 530bps on gross margin pressure and adj. PAT fell 38% QoQ to Rs 3.2bn

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01-Jun-21

V-Mart Retail (SELL): Anaemic quarter, near-term outlook remains bleak – SELL

Despite a soft base, V-Mart Retail (VMART) reported weak 6% YoY Q4FY21 revenue growth due to sustained Covid-19 headwinds.

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28-May-21

Mahindra & Mahindra (SELL): Adverse sales mix and rising input cost to hurt earnings

M&M’s (MM) Q4FY21 revenue was in line at Rs 133.4bn (–5% QoQ).

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28-May-21

Eicher Motors (SELL): In-line quarter; maintain SELL

Eicher Motors (EIM) reported in-line Q4FY21 standalone revenue of Rs 29bn, a 22% EBITDA margin and adj. PAT of Rs 4.7bn.

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26-May-21

Alkem Labs (BUY): Poor US sales and inventory provision affect Q4

Alkem Labs reported a below-expected Q4FY21 with +7%/–4% YoY sales/EBITDA growth.

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26-May-21

Greenpanel Industries (BUY): Lockdown to subdue near-term demand but outlook upbeat

We present key takeaways from our interaction with the management of Greenpanel Industries (GREENP).

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25-May-21

TVS Srichakra (SELL): Bleak volume and margin outlook; SELL

TVS Srichakra (TVSS) posted a 5% QoQ increase in Q4FY21 revenue, with an above-expected EBITDA margin of 13.3% (11.2% est.).

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21-May-21

State Bank Of India (BUY): Strong show on asset quality – retain BUY

State Bank of India’s (SBIN) Q4FY21 PAT of Rs 64.5bn was backed by 19% YoY NII growth and strong non-interest income from a lumpy NPA recovery worth Rs 40bn.

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21-May-21

JK Tyre & Industries (SELL): Balance sheet concerns, margin headwinds ahead; maintain SELL

JK Tyre’s (JKI) Q4FY21 revenue increased 6% QoQ to Rs 29bn while operating margin contracted 260bps QoQ to 15.5%, albeit beating our estimate of 13.8% due to an above-expected gross margin.

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21-May-21

Torrent Power (ADD): Good results; hopeful on DNH, selective on renewable bids

Torrent Power (ADD): Good results; hopeful on DNH, selective on renewable bids

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19-May-21

Astral (SELL): Good performance but valuations lofty – SELL

Astral’s (ASTRA) Q4FY21 consolidated revenue grew 79% YoY, with 80%/78% growth in pipes/adhesives.

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19-May-21

Canara Bank (ADD): Operating performance stable

Canara Bank (CBK) reported Q4FY21 PAT of Rs 10bn aided by 6% QoQ growth in operating profit.

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19-May-21

Minda Corporation (BUY): Healthy Q4; upgrade to BUY

Minda Corp’s (MDA) Q4FY21 topline increased 7% QoQ to Rs 7.9bn.

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17-May-21

Federal Bank (BUY): Balance sheet resilient – upgrade to BUY

Federal Bank’s (FB) Q4FY21 PAT at Rs 4.8bn beat our/consensus estimates on below-expected provisions.

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15-May-21

Balkrishna Industries (SELL): Valuations rich; maintain SELL

Balkrishna Industries (BIL) posted healthy Q4FY21 volume growth of 17% YoY to 68k MT, 15% ahead of our projections.

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14-May-21

Greenpanel Industries (BUY): Stellar performance, maintain BUY

Greenpanel Industries’ (GREENP) consolidated Q4FY21 revenue grew 64% YoY aided by a 63%/65% increase in the MDF/plywood segments.

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14-May-21

Escorts (BUY): Fundamentals in place; valuations attractive – upgrade to BUY

Escorts (ESC) reported Q4FY21 revenue of Rs 22bn (+60% YoY) with above-expected ASP.

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14-May-21

Mphasis (SELL): DXC drag to continue; cut to SELL

Mphasis (MPHL) reported dollar revenue growth of 1.8% QoQ in Q4FY21, underperforming our estimate.

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13-May-21

Pidilite Industries (SELL): Higher RM cost to crimp margins; maintain SELL

Pidilite Industries (PIDI) reported consolidated Q4FY21 revenue growth of 45% YoY on a tepid base, with a 45%/26% rise in standalone C&B/B2B volumes.

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13-May-21

Apollo Tyres (SELL): Margin headwinds ahead; maintain SELL

Apollo Tyres (APTY) delivered an operational beat in Q4FY21 led by better margins in European operation.

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10-May-21

DCB Bank (ADD): Recoveries to improve gradually – upgrade to ADD

DCB Bank’s (DCBB) Q4FY21 PAT of Rs 0.8bn (+13% YoY) beat our estimate on below-expected provisions.

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08-May-21

Bandhan Bank (ADD): Aggressive write-offs prop up asset quality

Bandhan Bank (Bandhan) reported Q4FY21 PAT of Rs 1bn (–80% YoY), much below our and consensus estimates owing to a spike in provisions.

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07-May-21

Hero MotoCorp (REDUCE): Near-term headwinds; REDUCE

Hero MotoCorp’s (HMCL) Q4FY21 operating performance was marginally ahead of our estimates due to an above-expected gross margin.

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06-May-21

CEAT (SELL): Rising raw material costs to impact earnings; SELL

CEAT’s revenue was 8% ahead of our estimate at Rs 23bn in Q4FY21.

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06-May-21

Coforge (BUY): Bumper FY22 guidance; reiterate BUY

Coforge reported a strong Q4FY21 with 7.1% QoQ USD revenue growth led by the ‘other’ vertical, though EBIT margin underperformed at 13.6% (+63bps QoQ).

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05-May-21

L&T Infotech (BUY): Market-leading growth in FY21

L&T Infotech’s (LTI) Q4FY21 revenue growth was strong at 4.4% QoQ CC due to an uptick in the hi-tech, manufacturing and BFS verticals.

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04-May-21

RBL Bank (ADD): Heading in the right direction – upgrade to ADD

RBL Bank’s (RBK) Q4FY21 PAT of Rs 0.8bn declined 34% YoY due to an 11% fall in NII and accelerated provisions.

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03-May-21

Supreme Industries (SELL): Profit boosted by inventory gains, maintain SELL

Supreme Industries’ (SI) Q4FY21 revenue grew 46% YoY, aided by an 8% rise in volumes off a tepid base.

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03-May-21

Kotak Mahindra Bank (BUY): Q4 in line; well capitalised for growth

Kotak Bank’s (KMB) Q4FY21 PAT at Rs 16.8bn (+33% YoY) was largely in line with our estimates.

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03-May-21

Ajanta Pharma (BUY): Another good quarter

Ajanta Pharma (AJP) reported strong Q4FY21 revenue/EBITDA growth of 11%/56% YoY to Rs 7.6bn/Rs 2.6bn, surpassing consensus estimates by 3%/23%.

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01-May-21

Laurus Labs (BUY): Solid margins despite higher API mix

Laurus Labs reported yet another strong quarter on the back of high growth in the API (esp. ARV) and formulation segments.

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01-May-21

AU Small Finance Bank (BUY): Miss on asset quality

AU Small Finance Bank (AUBANK) reported below-estimated Q4FY21 PAT of Rs 1.7bn due to slower NII growth and one-off employee cost.

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01-May-21

IndusInd Bank (BUY): Steady operating performance; growth to pick up

IndusInd Bank (IIB) reported in-line Q4FY21 PAT of Rs 9.3bn with a steady operating performance marked by 9%/10% YoY growth in NII/operating profit.

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30-Apr-21

Mahindra Logistics (BUY): Earnings call takeaways – Management upbeat on growth

In its Q4FY21 earnings call, Mahindra Logistics’ (MLL) management spoke about its vision to triple revenue by FY26, driven by formalisation, auto recovery, service expansion and integrated solutions to customers.

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30-Apr-21

Persistent Systems (SELL): Good execution despite IP seasonality

Persistent Systems (PSYS) reported in-line Q4FY21 numbers, with dollar revenue growth at 4.6% QoQ.

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29-Apr-21

Mahindra Logistics (BUY): Strong quarter as SCM continues to deliver

Mahindra Logistics’ (MLL) Q4FY21 net income increased 58% YoY on 28% revenue growth in the SCM segment, even as the enterprise mobility business remained weak.

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29-Apr-21

BOBCAPS Research | Bajaj Auto (SELL): In-line Q4; maintain SELL

Bajaj Auto’s Q4FY21 revenue was ahead of estimates at Rs 86bn.

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28-Apr-21

TVS Motor (SELL): Upgrade estimates; maintain SELL on rich valuations

TVS Motor (TVSL) posted a Q4FY21 beat on all counts.

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27-Apr-21

Axis Bank (BUY): Good show on asset quality

Axis Bank (AXSB) delivered strong Q4FY21 PAT of Rs 27bn (+2.4x QoQ) on 17% YoY growth in operating profit.

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27-Apr-21

Maruti Suzuki (BUY): Strong growth outlook, attractive valuations – upgrade to BUY

Maruti (MSIL) posted in-line Q4FY21 revenue, but an adverse sales mix, higher input costs and lower other income pulled PAT down 10% YoY.

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26-Apr-21

Tech Mahindra (BUY): Subdued Q4; deal win acceleration lends visibility

Tech Mahindra (TECHM) posted below-estimated Q4FY21 dollar revenue growth of 1.6% QoQ.

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24-Apr-21

ICICI Bank (BUY): No negative pandemic surprises

ICICI Bank (ICICIBC) reported Q4FY21 PAT of Rs 44bn on 17% YoY growth in NII and 14% loan growth.

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23-Apr-21

HCL Technologies (BUY): Q4 in line; deal wins gain momentum

HCL Tech (HCLT) reported 3% QoQ dollar revenue growth in Q4FY21, in line with our estimate.

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23-Apr-21

GNA Axles (ADD): In-line operating performance; ADD

GNA Axles’ (GNA) Q4FY21 revenue was 10% ahead of estimates at Rs 3.1bn (+72% YoY), led by healthy volumes.

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20-Apr-21

Swaraj Engines (ADD): Better sales mix to aid earnings; upgrade to ADD

Swaraj Engines’ (SWE) Q4FY21 revenue was below estimates on lower volumes.

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17-Apr-21

HDFC Bank (BUY): Asset quality stable despite NPA recognition

HDFC Bank’s (HDFCB) Q4FY21 PAT was in line at Rs 82bn (+18% YoY) and asset quality was stable with GNPA ratio at ~1.3% despite the SC vacating its stay on NPA recognition.

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16-Apr-21

Mindtree (ADD): Continued recovery in travel; TCV robust

Mindtree (MTCL) reported a strong Q4FY21 performance with dollar revenue growth of 5.2% QoQ, ahead of estimates.

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15-Apr-21

Wipro (ADD): Good execution; FY22 guidance robust

Wipro (WPRO) delivered an upbeat QoQ performance in Q4FY21 with 3% CC revenue growth, ahead of our estimate of 2.6%.

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15-Apr-21

Infosys (ADD): FY22 guidance in line; first signs of supply pressure

Infosys’ (INFO) Q4FY21 revenue growth of 2% CC QoQ was in line with our estimate of 1.9%, with the company also posting robust TCV of US$ 2.1bn.

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13-Apr-21

Coforge (BUY): SLK Global acquisition to derisk travel business

Coforge has acquired 60% stake in SLK Global Solutions – a BPM and digital solutions company for the financial services industry.

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13-Apr-21

[Initiation] Bandhan Bank (ADD): Near-term headwinds cloud prospects – initiate with ADD

We initiate coverage on Bandhan Bank (Bandhan) with ADD and a Mar’22 TP of Rs 375 based on 2.4x FY23E P/BV.

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12-Apr-21

Tata Consultancy Services (BUY): Strong contract wins lend a head start for FY22

TCS’s Q4FY21 revenue growth of 4.2% QoQ CC was broadly in line with our optimistic estimates in a seasonally weak quarter.

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07-Apr-21

[Initiation] AU Small Finance Bank (BUY): A budding, high-quality franchise – initiate with BUY

We expect AU Small Finance Bank’s (AUBANK) longstanding expertise in vehicle finance and successful extension into secured business loans to aid a 22% loan CAGR over FY20-FY23.

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25-Mar-21

Greenpanel Industries (BUY): MDF demand remains robust

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

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19-Mar-21

Greenply Industries (BUY): Demand trends strong

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

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12-Mar-21

Balrampur Chini (NOT RATED): Sugar prices subdued; ethanol sales to support profitability

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

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05-Mar-21

Wipro (ADD): Bold Capco acquisition

The Capco acquisition, Wipro’s (WPRO) largest to date, for a cash consideration of US$ 1.45bn is another of CEO Thierry’s bold moves to achieve industry-leading growth.

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05-Mar-21

Eris Lifesciences (BUY): NDR takeaways – Execution on track

We hosted virtual investor meetings with V Krishnakumar, COO of Eris Lifesciences (ERIS).

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01-Mar-21

Greenpanel Industries (BUY): MDF demand trends robust

Domestic MDF demand remains strong in Q4FY21 backed by higher purchases of readymade furniture, a shift away from low-end plywood and continued slowdown in imports (25-30% of the total market).

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15-Feb-21

Info Edge (SELL): Core businesses fail to revive

Info Edge (INFOE) reported a 15% YoY sales decline in Q3FY21.

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15-Feb-21

Mayur Uniquoters (BUY): All-round beat – upgrade to BUY

Mayur Uniquoters’ (MUNI) Q3FY21 standalone revenue swelled 31% YoY to a record Rs 1.6bn.

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15-Feb-21

ONGC (BUY): Q3 weak; rising oil prices offer respite

ONGC’s Q3FY21 EBITDA at Rs 65bn (–47% YoY) underperformed estimates owing to higher operating costs.

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12-Feb-21

Ashok Leyland (SELL): Lacklustre quarter – maintain SELL

Ashok Leyland (AL) reported a weak Q3FY21 as revenue at Rs 48.1bn fell 5% short of our estimate.

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12-Feb-21

Petronet LNG (BUY): Valuations disconnected from fundamentals – maintain BUY

Petronet LNG’s (PLNG) Q3FY21 EBITDA outperformed estimates at Rs 13.4bn (+21% YoY).

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11-Feb-21

Greenply Industries (BUY): Q3 beat as demand gains traction

Greenply Industries’ (GIL) consolidated Q3FY21 revenue dipped 2% YoY, bettering our estimate of a 6% drop.

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11-Feb-21

MRF (SELL): Near-term headwinds persist; maintain SELL

MRF delivered Q3FY21 revenue as per projections but above-expected gross margins led to a beat on both EBITDA (+58% YoY to Rs 9.6bn) and operating margins (21.1% vs. 16.2% estimated).

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10-Feb-21

SpiceJet (SELL): Lower yields amidst rising fuel costs; maintain SELL

SpiceJet’s (SJET) Q3FY21 revenue plunged 54% YoY to Rs 16.9bn.

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10-Feb-21

Century Plyboards (ADD): Strong operational performance; MDF expansion to spur growth

Century Plyboards’ (CPBI) standalone revenue rose 10% YoY in Q3FY21, with plywood/MDF up 11%/21% YoY.

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10-Feb-21

GAIL (BUY): Cyclicals bolster earnings

GAIL’s Q3FY21 PAT was in line at Rs 14.9bn (+24% YoY) aided by an improved operating performance across segments (ex-trading).

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10-Feb-21

TCI Express (BUY): Operating excellence continues to offset volume weakness

TCI Express’s (TCIEXP) Q3FY21 revenue missed estimates (–2% YoY vs. +5% est.) but strong EBITDA margin gains (+450bps YoY) yielded a solid earnings beat (+32% YoY vs. +9% est.).

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10-Feb-21

Eicher Motors (SELL): In-line quarter; maintain SELL

Eicher Motors (EIM) reported in-line Q3FY21 revenue and a slight beat on EBITDA margins (23.5% vs. 21.4% estimated), led by better operating efficiencies.

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09-Feb-21

Balkrishna Industries (SELL): Healthy Q3 but margin headwinds ahead – maintain SELL

Balkrishna Industries (BIL) posted healthy volume growth of 17% YoY to 59.8k MT in Q3FY21, 8% ahead of our projections.

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08-Feb-21

VRL Logistics (BUY): Earnings momentum gathering pace

VRL Logistics’ (VRLL) Q3FY21 print had many positives – (1) strong EBITDA growth (+24% YoY), (2) sustained GT realisations despite muted volumes, and (3) buyback of Rs 600mn.

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06-Feb-21

Gujarat Gas (BUY): Volumes ahead of estimates

Gujarat Gas’ (GUJGA) Q3FY21 performance sustained the traction seen in Q2, with adj. PAT doubling YoY to Rs 3.9bn.

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06-Feb-21

Container Corp of India (SELL): Earnings in line; LLF remains a key monitorable

Container Corp’s (CCRI) Q3FY21 revenue was a beat but EBITDA met our estimates.

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05-Feb-21

Alkem Labs (BUY): Q3 in line; strong free cash to support rerating

Alkem Labs’ Q3FY21 was in line, with sales/EBITDA growth at 6%/17% YoY.

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05-Feb-21

Mahindra & Mahindra (SELL): Healthy Q3, valuations expensive – maintain SELL

M&M’s (MM) Q3FY21 revenue was in line at Rs 140.6bn (+16% YoY).

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05-Feb-21

Hero MotoCorp (SELL): Optimism priced in – maintain SELL

Hero MotoCorp’s (HMCL) Q3FY21 operating performance beat estimates due to above-expected gross margins.

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04-Feb-21

Somany Ceramics (BUY): Strong operational performance, outlook improving

Somany Ceramics’ (SOMC) consolidated revenue grew 13% YoY to Rs 4.9bn in Q3FY21 as tile volumes grew 12%.

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04-Feb-21

State Bank of India (BUY): Asset quality outlook remains upbeat

State Bank of India’s (SBIN) Q3FY21 PAT declined 7% YoY to Rs 52bn on a 5% dip in operating profit.

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04-Feb-21

Inox Leisure (BUY): Light at the end of the tunnel

A lack of fresh content weighed on Inox Leisure’s (INOL) footfalls in Q3FY21, yielding paltry revenue Rs 149mn.

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04-Feb-21

Apollo Tyres (SELL): Positives priced in; maintain SELL

Apollo Tyres (APTY) delivered an operational beat in Q3FY21.

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04-Feb-21

Transport Corp of India (BUY): A lot to like

Transport Corp’s (TRPC) Q3FY21 print beat estimates on all fronts.

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03-Feb-21

Astral Poly Technik (SELL): Good quarter but valuations rich – downgrade to SELL

Astral Poly Technik’s (ASTRA) consolidated revenue grew 35% YoY in Q3FY21, backed by 42% growth in the adhesives segment and a 33% uptick in pipes.

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03-Feb-21

PI Industries (BUY): Q3 above estimates on better execution; robust outlook intact

PI Industries’ (PI) revenue/EBITDA growth of 37%/48% YoY beat estimates by 13%/9%.

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03-Feb-21

Minda Corporation (ADD): Q3 results in line; upside limited – downgrade to ADD

With higher revenue growth in the mechatronics & aftermarket division, Minda Corp’s (MDA) Q3FY21 topline increased 7% YoY to Rs 7.2bn.

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03-Feb-21

Cera Sanitaryware (BUY): Supply disruptions hit Q3 but demand outlook strong – raise to BUY

Cera Sanitaryware (CRS) reported a 3% YoY decline in consolidated revenue for Q3FY21, with the sanitaryware segment down 5% due to production issues.

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02-Feb-21

Finolex Industries (ADD): Higher PVC prices aid profitability

Finolex Industries’ (FNXP) Q3FY21 revenue grew 53% YoY, aided by a 15% rise in PVC resin volumes while pipe volumes increased 5%.

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02-Feb-21

Ajanta Pharma (BUY): Another good quarter; resilient outlook to drive stock upside

Ajanta Pharma (AJP) reported yet another excellent quarter with Q3 revenue/ EBITDA growth of 15%/30% YoY to Rs 7.5bn/Rs 2.4bn, surpassing our estimates by 11%/14%.

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02-Feb-21

Escorts (SELL): Management cautious on margins; maintain SELL

Escorts (ESC) reported Q3FY21 revenue at Rs 20bn (+24% YoY) and above-estimated operating margins at 18%.

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30-Jan-21

ICICI Bank (BUY): Stress manageable and provisioning comfortable

ICICI Bank’s (ICICIBC) Q3FY21 PAT at Rs 49.3bn (+19% YoY) beat estimates on strong 17% growth in operating profit.

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30-Jan-21

UPL (BUY): Mixed Q3; LATAM sales pushed to Q4 – growth tailwinds strong

UPL reported a mixed Q3 with in-line EBITDA and a 9% sales miss.

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30-Jan-21

Mahindra Logistics (BUY): Topline growth makes a stellar comeback

Mahindra Logistics’ (MLL) Q3FY21 consolidated revenue grew by a strong 15% YoY led by SCM (+24%) while the mobility segment lagged (–60%).

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30-Jan-21

Dr Reddy's Labs (ADD): US sales weak; gVascepa and margin recovery near-term triggers

Dr Reddy’s (DRRD) reported a Q3 operational miss after a strong H1.

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30-Jan-21

Tech Mahindra (BUY): Communication leads growth driven by large 5G deal win

Tech Mahindra (TECHM) posted 2.8% QoQ CC revenue growth and 150bps EBITDA margin expansion, bettering our estimates for Q3FY21.

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30-Jan-21

Sun Pharma (ADD): EBITDA beat ex-Taro; sustaining specialty recovery is key

Sun Pharma (SUNP) reported a healthy ex-Taro EBITDA beat of 5% in Q3FY21.

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29-Jan-21

Cipla (BUY): All-round beat; India delivers key surprise

Cipla reported a Q3 sales/EBITDA beat of 8%/14% steered by (1) India (Rx up 25% YoY), EU & ROW sales, and (2) cost control (–10% YoY, flat QoQ).

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29-Jan-21

IndusInd Bank (BUY): Gearing for growth; asset quality outlook improving

IndusInd Bank (IIB) reported higher PAT of Rs 8.3bn (Rs 6.1bn est.) on below-estimated provisions.

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29-Jan-21

eClerx Services (REDUCE): Upbeat quarter led by organic growth

eClerx (ECLX) reported a substantial topline beat in Q3FY21 backed partly by Personiv revenues flowing in and robust CLX business.

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29-Jan-21

Pidilite Industries (SELL): Margin headwinds expected in the near future

Pidilite Industries (PIDI) reported healthy Q3FY21 consolidated revenue growth of 19% YoY, supported by a 22%/12% rise in standalone C&B/B2B volumes.

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29-Jan-21

Persistent Systems (SELL): IP business seasonality bolsters growth

Persistent Systems (PSYS) reported a surprisingly strong set of numbers in Q3FY21, with dollar revenue growth at 7.4% QoQ.

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29-Jan-21

Laurus Labs (BUY): Solid margins despite higher API mix – TP raised to Rs 480

Laurus Labs reported another solid beat in Q3FY21 fuelled by strong growth in the API and synthesis segments.

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29-Jan-21

Lupin (ADD): In-line Q3; several near-term catalysts

Lupin’s (LPC) EBITDA was boosted by one-time licensing income (Rs 700mn est.).

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28-Jan-21

RBL Bank (SELL): Weak asset quality; elevated provisions – maintain SELL

RBL Bank’s (RBK) PAT was largely in line at Rs 1.5bn.

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28-Jan-21

Eris Lifesciences (BUY): Healthy Q3; chronic franchise and FCF growth to unlock value

Eris Lifesciences (ERIS) reported a healthy Q3 with a 3% revenue beat led by superior execution on the core cardio-metabolic and VMN portfolios (~78% of sales).

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28-Jan-21

Coforge (BUY): Travel recovery and BFS drive growth

Coforge reported a robust Q3FY21 performance, marked by 3.3% QoQ CC revenue growth led by the BFS and travel verticals.

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28-Jan-21

TVS Motor (SELL): Valuations rich; maintain SELL

TVS Motor’s (TVSL) Q3FY21 revenue was marginally better than estimated due to above-expected ASP.

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28-Jan-21

InterGlobe Aviation (SELL): Rising fuel costs to burn earnings; cut to SELL

InterGlobe Aviation’s (IndiGo) Q3FY21 RASK stood at Rs 3.2.

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28-Jan-21

Maruti Suzuki (SELL): Operational performance along expected lines; maintain SELL

Maruti (MSIL) reported Q3FY21 earnings of Rs 19bn backed by higher other income and a lower tax rate.

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28-Jan-21

Canara Bank (ADD): Earnings beat but asset quality risks persist

Canara Bank’s (CBK) Q3 PAT of Rs 7bn beat our estimate on strong 47% YoY growth in operating profit.

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27-Jan-21

Axis Bank (BUY): Prudent provisioning dampens earnings but fortifies balance sheet

Axis Bank’s (AXSB) Q3FY21 PAT of Rs 11.2bn (–36% YoY) was marred by high provisions.

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27-Jan-21

Greenpanel Industries (BUY): Significant all-round beat, outlook bright

Greenpanel Industries’ (GREENP) Q3FY21 consolidated revenue grew 34.5% YoY aided by a 44% increase in the MDF segment.

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25-Jan-21

Supreme Industries (SELL): Inventory gains aid higher profitability

Supreme Industries’ (SI) Q3FY21 revenue grew 34% YoY, aided by a 10% rise in volumes.

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25-Jan-21

V-Mart Retail (SELL): Demand remains lacklustre

While the third quarter is typically its best season, V-Mart Retail (VMART) reported a Q3FY21 revenue decline of 16% YoY to Rs 4.7bn due to continued Covid-19 headwinds.

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25-Jan-21

Kotak Mahindra Bank (BUY): Manageable stress formation in Q3 – maintain BUY

Kotak Bank’s (KMB) Q3FY21 PAT of Rs 18.5bn (+16% YoY) was backed by strong 29% growth in operating profit.

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24-Jan-21

Reliance Industries (REDUCE): Oil-to-Chemicals outlook remains cloudy

Q3FY21 highlights: (a) RIL’s EBITDA was in line with estimates at Rs 216bn (–5% YoY, +14% QoQ) as Oil-to-Chemicals (O2C) and RJio met expectations while retail outperformed.

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24-Jan-21

DCB Bank (SELL): Growth remains subdued

DCB Bank’s (DCBB) Q3FY21 PAT of ~Rs 1bn beat estimates on higher treasury income and contained opex.

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22-Jan-21

Mphasis (REDUCE): DXC revenue contracts further; BFS growth slows

Mphasis (MPHL) reported dollar revenue growth of 2% QoQ in Q3FY21, in line with estimates but lagging behind peers.

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21-Jan-21

Kajaria Ceramics (REDUCE): Margins surprise positively

Kajaria Ceramics (KJC) posted an above-expected Q3FY21 with 13% YoY revenue growth and volumes up 11%.

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21-Jan-21

JK Tyre & Industries (SELL): Good Q3 but rising RM cost and poor sales mix to hurt margins

JK Tyre (JKI) surprised positively on both revenue and earnings in Q3FY21, led by strong replacement demand as well as above-expected gross margins which could stem from low-cost inventory.

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21-Jan-21

Bajaj Auto (SELL): Operating performance healthy but unsustainable

Bajaj Auto’s (BJAUT) Q3FY21 revenue was in line with projections.

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20-Jan-21

L&T Infotech (BUY): Large deals accelerate; margins shine

L&T Infotech’s (LTI) Q3FY21 dollar revenue growth was strong at 5.8% QoQ due to an uptick in the manufacturing and BFS verticals.

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20-Jan-21

Federal Bank (ADD): Operating performance remains strong

Federal Bank (FB) reported above-estimated PAT of ~Rs 4bn (–8% YoY) on lower provisioning than forecast.

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20-Jan-21

CEAT (SELL): Healthy Q3 but long-term woes remain; maintain SELL

CEAT surprised positively on both revenue and earnings in Q3FY21, led by strong replacement demand and above-expected gross margins which could be a function of low-cost inventory.

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19-Jan-21

Alembic Pharma (BUY): Q3 misses estimates but India beat looks sustainable

Alembic Pharma (ALPM) reported a 12% EBITDA miss due to weak sales.

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18-Jan-21

Mindtree (ADD): Good growth; onset of a positive cycle

Mindtree (MTCL) reported a strong Q3FY21 performance with dollar revenue growth of 5% QoQ and EBIT margin at an all-time high of 19.6% (+230bps QoQ).

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16-Jan-21

HDFC Bank (BUY): Sailing steady in a storm

HDFC Bank’s (HDFCB) Q3FY21 PAT of Rs 88bn (+18% YoY) was led by strong 17% growth in operating profit.

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16-Jan-21

PVR (REDUCE): Improving content pipeline, cost control measures key positives

PVR (PVRL) reported paltry revenue of Rs 454mn (–95% YoY) in Q3FY21 as a lack of content and the 50% capacity cap weighed on footfalls.

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15-Jan-21

HCL Technologies (BUY): Growth streak continues; guidance raised

HCL Tech (HCLT) reported 4.4% QoQ dollar revenue growth in Q3FY21, outperforming our 3.2% estimate.

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13-Jan-21

Wipro (SELL): Growth outperforms estimate, but lags behind peers

Wipro (WPRO) delivered an upbeat QoQ performance in Q3FY21 with 3.4% CC revenue growth, ahead of our estimate of 2.7%.

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13-Jan-21

Infosys (ADD): Guidance upgraded on strong growth

Infosys’ (INFO) Q3FY21 dollar revenue growth of 6.2% QoQ beat our estimate of 3.5%, with the company also posting its highest-ever TCV of US$ 7.1bn.

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11-Jan-21

GNA Axles (BUY): Strong Q3; estimates upgraded

GNA Axles (GNA) posted a strong set of results in Q3FY21 with revenue up 29% YoY.

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08-Jan-21

Tata Consultancy Services (BUY): Strongest Q3 in nine years – growth and margins outperform

TCS’s QoQ dollar revenue growth of 5.1% beat street estimates (~3.1%) in a seasonally weak quarter.

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04-Jan-21

Greenpanel Industries (BUY): Strong showing in MDF to continue – we raise estimates

Demand for MDF has bettered expectations since unlocking of the economy in Q3FY21 as the pandemic has boosted consumption of readymade furniture.

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29-Dec-20

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

We recently interacted with the management of Balrampur Chini Mills (BRCM).

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23-Dec-20

TCI Express (BUY): Demand on the mend

We recently interacted with the management of TCI Express.

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21-Dec-20

PVR (REDUCE): Capital raise to bolster liquidity, new content sparks revival hopes

PVR’s (PVRL) board has recently approved a capital raising plan of upto Rs 8bn, through equity issuance, quasi-equity instruments, or debt instruments.

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21-Dec-20

Petronet LNG (BUY): At an inflection point

Key takeaways from our recent interaction with the Petronet LNG (PLNG) management.

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16-Dec-20

eClerx Services (REDUCE): Sizeable like-to-like acquisition to fuel inorganic growth

eClerx (ECLX) has acquired Personiv – an IT services firm with capabilities in the digital, back office and customer contact domains – for a cash consideration of US$ 34mn.

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15-Dec-20

TVS Srichakra (SELL): Upsides capped; downgrade to SELL

Having aggressively penetrated the OEM segment, TVS Srichakra (TVSS) now intends to focus on the aftermarket through an elaborate brand building exercise.

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14-Dec-20

SpiceJet (SELL): Valuations full – downgrade to SELL

Easing of Covid restrictions (incl. international travel) and likely reinstatement of Boeing 737s into the fleet will remain growth catalysts for SpiceJet (SJET), though rising crude prices could impede earnings.

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14-Dec-20

[Initiation] Eris Lifesciences (BUY): Chronic franchise, FCF growth underappreciated; initiate with BUY

Eris Lifesciences’ (ERIS) earnings are at inflection point and we expect a 16% EBITDA CAGR over FY21-FY24 (vs. 8%, FY18-FY21).

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12-Dec-20

Cipla (BUY): Revlimid settlement – Cipla gains but limited NPV loss for Dr Reddy’s

In our view, the gRevlimid settlement is positive for Cipla’s stock given the market was not factoring in potential upside sooner from this opportunity.

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11-Dec-20

L&T Infotech (BUY): Strong pipeline to carry the momentum

L&T Infotech’s (LTI) analyst meet focused on cloud and data products which are expected to be the new growth engines.

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10-Dec-20

UPL (BUY): Old whistleblower complaint – steep correction unwarranted

UPL’s stock corrected over 15% today after a report by ET Prime cited a whistleblower complaint alleging that promoter Jaidev Shroff along with family members has siphoned off money.

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08-Dec-20

Greenply Industries (BUY): Plywood demand recovering steadily

We outline key highlights from our interaction with the management of Greenply Industries (GIL).

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07-Dec-20

V-Mart Retail (SELL): Early onset of winter boosting sales

We present key takeaways from our recent interaction with the V-Mart Retail management (VMART).

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04-Dec-20

Mindtree (ADD): Analyst meet takeaways – 4×4×4 strategy laid out

Mindtree (MTCL) is optimistic about achieving above-industry growth, aided by a new three-year ‘4×4×4’ strategy aimed at narrowing its focus on four verticals, service lines and markets each.

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03-Dec-20

Indraprastha Gas (BUY): Expect volume recovery from FY22

We present key takeaways from our recent interaction with the Indraprastha Gas (IGL) management.

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02-Dec-20

MRF (SELL): Rising input cost a key concern amid rich valuations; cut to SELL

MRF Tyres (MRF) has rallied ~30% in the last three months and is currently trading at 25x Sep’22E EPS.

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01-Dec-20

Tech Mahindra (BUY): Analyst meet takeaways – Growth acceleration ahead

In its analyst meet today, Tech Mahindra (TECHM) emphasised its focus on reviving growth and appeared optimistic about demand traction and margins.

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27-Nov-20

Greenpanel Industries (BUY): MDF growth holds strong

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

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24-Nov-20

Apollo Tyres (SELL): Positives priced in; downgrade to SELL

Apollo Tyres (APTY) delivered a Q2FY21 beat and has rallied 40% in the last three months due to domestic volume visibility, a better Europe performance and steady margin outlook.

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19-Nov-20

Wipro (SELL): Sweeping structural changes to simplify business model

Wipro’s (WPRO) analyst meet was focused on a slew of strategic changes being implemented by its new CEO.

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17-Nov-20

ONGC (BUY): Worst appears priced in

ONGC’s Q2FY21 EBITDA at Rs 84bn (–36% YoY) outperformed estimates on account of lower operating costs.

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13-Nov-20

Mahanagar Gas (SELL): Margins surge but volume recovery lags peers

Mahanagar Gas’s (MAHGL) Q2FY21 PAT outperformed at Rs 1.4bn (–46% YoY, +3x QoQ).

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12-Nov-20

Eicher Motors (SELL): Q2 in line; maintain SELL

Eicher Motors (EIM) reported in-line Q2FY21 revenue and a slight beat on EBITDA margins (22.8% vs. 21.4% est.), led by better operating efficiencies.

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12-Nov-20

TVS Srichakra (BUY): Q2 along expected lines; maintain BUY

TVS Srichakra’s (TVSS) Q2FY21 revenue was marginally below expectations at Rs 5.4bn, but a sharp 25% YoY drop in other expenses led to superior operating margins at 15.9% (13.9% est.).

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12-Nov-20

Petronet LNG (BUY): Margins buoyant, volumes normalise

Petronet LNG’s (PLNG) Q2FY21 EBITDA outperformed our estimates at Rs 13.6bn (+17.5% YoY).

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12-Nov-20

Aurobindo Pharma (BUY): Q2 beat; growing balance sheet comfort merits higher multiple

Aurobindo Pharma’s (ARBP) Q2 EBITDA was 13% above estimates, led by an all-round sales beat of 7% and multiyear-high gross margins of 61.2%.

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12-Nov-20

Mayur Uniquoters (ADD): Good performance, outlook improving

Mayur Uniquoters’ (MUNI) Q2FY21 standalone revenue declined 11% YoY and volumes dropped 5% amid a continued slowdown in user industries (footwear, auto), albeit less pronounced than expected.

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12-Nov-20

Century Plyboards (ADD): Healthy quarter; upside limited – cut to ADD

Century Plyboards’ (CPBI) standalone revenue decreased 12% YoY in Q2FY21, in line with estimates.

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11-Nov-20

Cera Sanitaryware (ADD): Decent performance in a tough environment

Cera Sanitaryware (CRS) reported a 1.6% decline in consolidated revenue for Q2FY21, with the sanitaryware segment being flat YoY.

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11-Nov-20

Info Edge (SELL): Real estate and recruitment business remain sluggish

Info Edge (INFOE) reported a 19% YoY sales decline.

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11-Nov-20

SpiceJet (BUY): Q2 better than expected; maintain BUY

SpiceJet’s (SJET) Q2FY21 revenue came in at Rs 10.6bn.

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11-Nov-20

Gujarat State Petronet (BUY): Upbeat volume outlook; tariff risks appear priced in

Gujarat State Petronet’s (GUJS) Q2FY21 EBITDA outperformed at Rs 3.8bn (–13% YoY) on better margins.

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11-Nov-20

Indraprastha Gas (BUY): Margin surge leads earnings beat – upgrade to BUY

Indraprastha Gas’ (IGL) Q2FY21 earnings were well above estimates at Rs 3.1bn (–19% YoY).

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11-Nov-20

V-Mart Retail (SELL): Seasonal weakness exacerbated by pandemic

V-Mart Retail (VMART) reported a Q2FY21 revenue decline of 44% YoY to Rs 1.8bn in a seasonally dull quarter compounded by the lockdown.

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10-Nov-20

VST Tillers Tractors (BUY): Strong Q2; price target revised upwards

VST Tillers’ (VSTT) Q2FY21 results beat estimates – revenue surged 37% YoY to Rs 2.2bn and EBITDA margin came in at 17.1% (11.3% est.).

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10-Nov-20

Mahindra & Mahindra (SELL): Tractor sales upbeat; valuations expensive – maintain SELL

M&M’s (MM) Q2FY21 revenue grew 6% YoY to Rs 115.9bn and EBITDA margin was above our estimate at 17.8%.

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10-Nov-20

GAIL (BUY): Operating parameters return to normalcy

GAIL’s Q2FY21 PAT was in line at Rs 12.4bn (+17% YoY), driven by an improved operating performance across segments (except trading).

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10-Nov-20

Oil India (BUY): Concerns priced in – raise to BUY

Oil India (OINL) reported Q2FY21 earnings of Rs 2.4bn, well above our estimates.

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09-Nov-20

Allcargo Logistics (ADD): MTO segment spurs robust operating performance

Allcargo Logistics’ (AGLL) Q2FY21 consolidated revenue rose 25% YoY, ahead of our estimate of 15%, augmented by consolidation of Gati (4% ex-Gati) and growth in the MTO segment (+9%).

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09-Nov-20

Ashok Leyland (SELL): Weak macros, rich valuations – maintain SELL

Ashok Leyland’s (AL) Q2FY21 revenue and earnings were broadly in line with our estimates.

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09-Nov-20

VRL Logistics (BUY): Strong quarter; volume growth slated to revive in H2

VRL Logistics’ (VRLL) Q2FY21 print beat our estimates on all fronts.

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07-Nov-20

Divi's Labs (ADD): Flawless execution drives Q2 beat – upgrade to ADD

Divi’s Labs (DIVI) retained its strong execution in Q2, reporting an 18% EBITDA beat.

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07-Nov-20

Astral Poly Technik (REDUCE): Reasonably good quarter; outlook improving

Astral Poly Technik’s (ASTRA) consolidated revenue grew 10% YoY in Q2FY21, aided by 31% growth in the adhesives segment whereas pipes grew 4% (volumes up 2%).

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07-Nov-20

Inox Leisure (BUY): Cost control mitigates Q2 losses; content push awaited

A tight leash on operating cost and rent waivers helped Inox Leisure (INOL) mitigate its operating/net loss to Rs 318mn/Rs 679mn, in the absence of any revenue in Q2.

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07-Nov-20

Balkrishna Industries (ADD): Upbeat volume outlook – upgrade to ADD

Balkrishna Industries (BIL) posted strong volume growth of 36% YoY to 61.2k MT in Q2FY21, ahead of our projections.

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07-Nov-20

Cipla (BUY): Comprehensive Q2 beat; India drives good surprise

Cipla reported a Q2 sales/EBITDA beat of 13%/17% led by (1) outperformance in India (Covid portfolio contributed ~5% sales/EBITDA) and CGA sales, and (2) cost control (–13% YoY).

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06-Nov-20

Pidilite Industries (SELL): Margin gains to be neutralised by hardening RM prices

Pidilite Industries (PIDI) reported in-line consolidated Q2FY21 revenue growth of 4% YoY, led by a 7% increase in C&B volumes.

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06-Nov-20

Alkem Labs (BUY): H1 gross margin beat sustainable; FCF to support rerating

Alkem Labs posted a Q2 EBITDA beat of 12% led by lower SGA spends (–29% YoY) while sales were in line.

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06-Nov-20

Somany Ceramics (BUY): Good operational performance; sharp balance sheet improvement

Somany Ceramics (SOMC) reported above-expected consolidated revenue of Rs 4.2bn (flat YoY) in Q2FY21, aided by a 3% uptick in tile volumes.

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06-Nov-20

MRF (ADD): Strong Q2; earnings estimates raised

MRF delivered a positive surprise on Q2FY21 revenue and earnings, led by strong replacement demand in Indian markets and above-expected operating efficiency.

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06-Nov-20

Container Corp of India (SELL): Licensing fee jolt eclipses revival in operating performance

Container Corp’s (CCRI) Q2FY21 print was in line with our estimates.

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05-Nov-20

Lupin (ADD): Muted Q2; multiple near-term catalysts

Lupin’s (LPC) Q2 EBITDA was 5% below estimates.

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05-Nov-20

Gujarat Gas (BUY): Strong beat on margins and volumes; upgrade to BUY

Gujarat Gas’ (GUJGA) Q2FY21 earnings were above estimates, surging 8x QoQ to Rs 4.8bn.

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05-Nov-20

Apollo Tyres (ADD): Strong Q2; earnings estimates upgraded

Apollo Tyres (APTY) surprised positively on both revenue and earnings in Q2FY21, led by strong replacement demand in Indian markets, better Europe operations and above-expected operating efficiency.

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05-Nov-20

eClerx Services (SELL): Strong growth driven by sharp CLX recovery

eClerx (ECLX) reported a surprising growth and margin beat in Q2FY21 backed by CLX recovery and aggressive cost cuts.

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05-Nov-20

Hindustan Petroleum Corp (BUY): GRMs recover, marketing margins remain elevated

HPCL’s Q2FY21 earnings remained robust at Rs 24.7bn (+2.4x YoY).

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05-Nov-20

Greenply Industries (BUY): Results in line; balance sheet improves significantly

Greenply Industries’ (GIL) consolidated Q2FY21 revenue slipped 22% YoY, but still bettered estimates.

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04-Nov-20

Transport Corp of India (BUY): Healthy show continues

Transport Corp (TRPC) reported a solid Q2FY21 performance for the second successive quarter, surpassing our expectations on all fronts.

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04-Nov-20

State Bank of India (BUY): Stress disclosures reassuring – upgrade to BUY

State Bank of India’s (SBIN) Q2FY21 PAT at Rs 45.7bn grew 52% YoY on 15% NII growth while operating profit (ex-one offs) grew 12%.

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04-Nov-20

PVR (REDUCE): Another washout quarter; content availability key for turnaround

With screens being shut, PVR (PVRL) did not report any meaningful revenue in Q2FY21.

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04-Nov-20

Ajanta Pharma (BUY): Exceptional Q2 beat; H2 momentum to moderate

Ajanta Pharma (AJP) posted Q2 revenue/EBITDA growth of 11%/54% YoY to Rs 7.2bn/Rs 2.7bn.

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04-Nov-20

Sun Pharma (ADD): Q2 beat led by specialty sales; margin beat not fully sustainable

Sun Pharma (SUNP) reported a healthy Q2 beat: 6% on sales, 32% on EBITDA.

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03-Nov-20

TCI Express (BUY): Stellar operational performance amid weak externalities

An effective asset-light model, price hikes and efficiency gains enabled TCI Express (TCIEXP) to deliver a strong EBITDA margin beat (15.3% vs. 11.5% est.), negating a 21% YoY topline fall (est. –15%).

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02-Nov-20

Mahindra Logistics (BUY): Strong recovery in non-auto SCM drives operational beat

Buoyed by traction in key client segments – e-commerce, consumer, pharma, tractors – Mahindra Logistics’ (MLL) topline decline eased to 2% YoY, ahead of our estimate of a 14% drop.

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02-Nov-20

Escorts (SELL): Strong Q2; optimism priced in – SELL

Escorts (ESC) reported strong Q2FY21 revenue at Rs 16.4bn (+24% YoY) with sharp 880bps operating margin expansion to 18.4%.

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02-Nov-20

Indian Oil Corp (BUY): Valuations at a disconnect to earnings resilience

IOCL’s Q2FY21 EBITDA of Rs 94bn (2.6x YoY) was above estimates.

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02-Nov-20

Greenpanel Industries (BUY): Strong performance; margin traction to continue

Greenpanel Industries (GREENP) reported above-expected Q2FY21 revenue growth of 17% YoY (consolidated), aided by a 26% increase in the MDF segment.

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31-Oct-20

DCB Bank (SELL): Earnings in line but growth remains weak

DCB Bank’s (DCBB) Q2FY21 PAT at Rs 0.8bn was in line with estimates.

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31-Oct-20

ICICI Bank (BUY): Solid provisioning buffer

ICICI Bank (ICICIBC) reported healthy Q2 PAT of Rs 43bn led by 20% YoY growth in operating profit.

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31-Oct-20

Reliance Industries (REDUCE): Earnings traction lagging multiple expansion

Q2FY21 highlights: (a) RIL’s EBITDA beat estimates at Rs 189bn (–14.5% YoY, +12% QoQ) led by better retail and petchem EBITDA of Rs 20bn (–13.5% YoY) and Rs 60bn (–33% YoY) respectively.

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31-Oct-20

IndusInd Bank (BUY): Credit buffer buildup nearly complete; growth in focus next

IndusInd Bank’s (IIB) Q2FY21 PAT at Rs 6.6bn (–53% YoY) saw the impact of elevated provisions, as expected.

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30-Oct-20

UPL (BUY): In-line Q2 led by strong volume growth; FY21 guidance retained

UPL’s Q2FY21 results were broadly in line with 14%/15% YoY growth in revenue/ EBITDA.

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30-Oct-20

[Initiation] GNA Axles (BUY): Undisputed market leader in rear axles; initiate with BUY

GNA Axles (GNA) is India’s leading rear axle shaft manufacturer with >50% market share.

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30-Oct-20

Bharat Petroleum Corp (BUY): Robust fundamentals

BPCL’s Q2FY21 earnings were in line, driven by recovery in core GRMs (US$ 1.56/bbl, ex-inventory gains) and robust marketing margins.

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30-Oct-20

Laurus Labs (BUY): Beat continues; expect a better H2 – TP raised to Rs 410

Laurus Labs reported yet another record beat in Q2FY21 with no major one-offs.

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29-Oct-20

InterGlobe Aviation (BUY): Weak Q2 as expected; macro uptick to support growth

InterGlobe Aviation’s (IndiGo) Q2FY21 RASK was in line at Rs 3.1.

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29-Oct-20

TVS Motor (SELL): Valuations rich; maintain SELL

TVS Motor’s (TVSL) Q2FY21 revenue was marginally better than estimated due to above-expected ASP.

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29-Oct-20

Maruti Suzuki (SELL): Q2 along expected lines; upside limited – downgrade to SELL

Maruti (MSIL) reported in-line Q2FY21 earnings of Rs 13.7bn.

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29-Oct-20

PI Industries (BUY): Q2 beat; management retains healthy CSM outlook

PI Industries (PI) reported a good Q2 beat. Revenue/EBITDA grew 28%/46% YoY, ahead of our estimates by 7%/13%.

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29-Oct-20

Hero MotoCorp (SELL): Optimism priced in – downgrade to SELL

Hero MotoCorp’s (HMCL) Q2FY21 operating performance beat estimates due to above-expected ASP.

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29-Oct-20

Axis Bank (BUY): Positive readthrough on asset quality parameters

Axis Bank’s (AXSB) Q2FY21 PAT was healthy at Rs 17bn driven by 20% YoY growth in NII and a 16% uptick in operating profit.

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28-Oct-20

RBL Bank (SELL): Asset quality aided by loan classification standstill

RBL Bank’s (RBK) Q2FY21 operating performance remained weak as NII growth slowed to 7% YoY and provisions stayed high.

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28-Oct-20

Dr Reddy's Labs (ADD): All-round beat; H2 catalysts tracking well

Dr Reddy’s (DRRD) reported a Q2 EBITDA beat of 13% led by better operating leverage across markets.

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28-Oct-20

CEAT (SELL): Healthy Q2 but long-term woes remain; cut to SELL

CEAT surprised positively on both revenue and earnings in Q2FY21, led by strong replacement demand and above-expected operating efficiency.

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28-Oct-20

Supreme Industries (SELL): Margin expansion largely inventory-led; cut to SELL

Supreme Industries’ (SI) Q2FY21 revenue grew 8% YoY, aided by a 1% rise in volumes.

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27-Oct-20

Finolex Industries (ADD): Higher PVC resin prices aid profits; valuations fair – cut to ADD

Finolex Industries’ (FNXP) Q2FY21 revenue grew 2% YoY, aided by a 15% rise in PVC resin volumes while pipes declined 9%.

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26-Oct-20

Kotak Mahindra Bank (BUY): Above-expected quarter

Kotak Bank’s (KMB) Q2FY21 PAT at Rs 21.8bn (+27% YoY) beat estimates given strong 31% YoY operating profit growth and lower provisions.

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26-Oct-20

Persistent Systems (SELL): IP revenues volatile; retain SELL

Persistent Systems (PSYS) reported 3.9% QoQ dollar revenue growth, led by the services segment (+5.4% QoQ).

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23-Oct-20

Tech Mahindra (BUY): Communication vertical recovers; TCV robust

Tech Mahindra (TECHM) posted 2.9% QoQ CC revenue growth and stellar 390bps EBITDA margin expansion, bettering our estimates for Q2FY21.

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23-Oct-20

JK Tyre & Industries (BUY): Strong Q2FY21; focus on debt reduction continues

JK Tyre (JKI) surprised positively on both revenue and earnings in Q2FY21, led by strong replacement demand and above-expected operating efficiencies.

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23-Oct-20

Mphasis (REDUCE): DXC remains soft but pipeline healthy – raise to REDUCE

Mphasis (MPHL) reported strong Q2FY21 revenue and margins.

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22-Oct-20

Alembic Pharma (BUY): Good beat (ex-US) fuels earnings upgrade

Alembic Pharma (ALPM) reported a 12% EBITDA beat, with strong growth in ROW, API and India while US sales were in line.

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22-Oct-20

Coforge (ADD): Executable order book hits record high

Coforge (erstwhile NIIT Tech) reported a robust Q2FY21 performance, marked by 8.1% QoQ CC revenue growth that was broad-based across verticals.

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22-Oct-20

Bajaj Auto (SELL): Hazy near-term 2W outlook, 3Ws continue to lag

Bajaj Auto’s (BJAUT) Q2FY21 operating performance was in line with our estimates, but adj. PAT fell short (–19% YoY to Rs 11.4bn) owing to below-expected other income.

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21-Oct-20

L&T Infotech (BUY): Robust growth and pipeline; margin shines

L&T Infotech’s (LTI) Q2FY21 revenue beat estimates, with 2.3% QoQ CC growth due to an uptick in the manufacturing and BFS verticals.

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20-Oct-20

Kajaria Ceramics (REDUCE): Good performance but in the price – downgrade to REDUCE

Kajaria Ceramics (KJC) posted an above-expected Q2FY21 with stable YoY revenue and volumes, aided by better traction in tier-2 cities and below.

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17-Oct-20

HDFC Bank (BUY): Resilient quarter; confident commentary

HDFC Bank reported a commendable Q2FY21 with 18% YoY growth in operating profit and PAT.

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16-Oct-20

HCL Technologies (BUY): Guidance raised on robust, broad-based performance

HCL Tech (HCLT) reported 6.4% QoQ USD growth coming from mid-high single digit recovery across verticals.

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16-Oct-20

Federal Bank (ADD): Strong operating performance

Despite robust growth in operating profit (40% YoY), Federal Bank’s (FB) Q2FY21 PAT declined 26% YoY to Rs 3.1bn as the standard asset provision buffer was raised to ~0.5% of loans (vs. ~0.2% in Q1).

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15-Oct-20

Mindtree (ADD): Robust margin visibility

Mindtree (MTCL) reported a strong Q2FY21 operational performance, with dollar revenue up 3.1% QoQ and EBIT margin at a 20-quarter high of 17.3% (+360bps QoQ).

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14-Oct-20

Infosys (ADD): Stellar recovery based on strong TCV

Infosys’ (INFO) Q2 topline grew ahead of estimates at 4% QoQ CC and it also posted its highest ever TCV of US$ 3.15bn.

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13-Oct-20

Wipro (SELL): Upbeat Q2 but mid-term growth outlook weak

Wipro (WPRO) delivered an upbeat QoQ performance in Q2FY21 with 2% CC revenue growth, ahead of our estimate of 1%.

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08-Oct-20

Tata Consultancy Services (BUY): Demand recovery drives outperformance

TCS’ growth of 7.2% USD outperformed street’s estimates.

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25-Sep-20

[Initiation] Swaraj Engines (SELL): Healthy prospects but valuations full – initiate with SELL

Swaraj Engines (SWE) is the sole supplier of engines for M&M-owned Swaraj tractors which command ~12% market share in the 800,000-unit p.a. tractor industry.

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24-Sep-20

Cera Sanitaryware (ADD): Demand trends improving

Key takeaways from our interaction with the management of Cera Sanitaryware (CRS).

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21-Sep-20

HCL Technologies (BUY): Acquisition spree on; DWS to expand footprint in Australia

HCL Technologies (HCLT) acquired Australian IT firm DWS for US$115.8mn.

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21-Sep-20

Ajanta Pharma (BUY): NDR takeaways – Earnings drivers tracking well

We hosted investor meetings with the management of Ajanta Pharma (AJP).

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18-Sep-20

Allcargo Logistics (ADD): Multiple one-offs, Gati consolidation boosts performance

Amid a tumultuous demand climate, Allcargo Logistics (AGLL) reported strong 14% YoY revenue growth in Q1FY21 led by consolidation of the newly acquired Gati (5.4% ex-Gati) and healthy topline growth in the MTO (+9%) and CFS (+8%) segments.

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17-Sep-20

Dr Reddy's Labs (ADD): US Revlimid settlement – low competition can boost NPV

Dr Reddy's (DRRD) has announced a key settlement of the patent litigation with Celgene for US Revlimid (lenalidomide capsules) used to treat multiple myeloma.

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17-Sep-20

Greenply Industries (BUY): Demand conditions improving gradually

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

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16-Sep-20

[Initiation] Shriram Transport Finance (BUY): Limited pandemic headwinds – initiate with BUY

Over the last four decades, Shriram Transport Finance (SHTF) has built a pan-India network in a fragmented used-CV market (~16% CV market share).

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15-Sep-20

PVR (REDUCE): Cost control only positive in washout quarter; cut to REDUCE

In a washout first quarter with no meaningful revenue, PVR (PVRL) reported operating and net losses of Rs 1.2bn and Rs 2.3bn respectively.

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15-Sep-20

[Initiation] SpiceJet (BUY): Deep value BUY despite steep discount to market leader

SpiceJet (SJET) ranks second in the domestic aviation industry with ~17% share.

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14-Sep-20

HCL Technologies (BUY): Favourable quarter ahead; earnings upgraded

HCL Technologies (HCLT) provided a surprising mid-quarter update today, guiding for above-expected revenue growth of at least 3.5% QoQ CC and operating margin in the range of 20.5-21% for Q2FY21.

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10-Sep-20

Container Corp of India (SELL): Annual report analysis – FY20 a mixed bag

Container Corp’s (CCRI) FY20 annual report reveals a mixed year with some hits and some misses.

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10-Sep-20

Best Agrolife (NOT RATED): Up-and-coming agrochem player

Best Agrolife (BAL, Not Rated) is a midsized crop-protection chemical company (FY20 sales Rs 6.1bn), with diversified products across insecticides, fungicides and herbicides, a strong pack-to-pack (P2P) presence and fast-growing brand business.

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08-Sep-20

Info Edge (SELL): Lower billings a cause for concern

Info Edge (INFOE) posted weak Q1FY21 revenues with a 10% YoY decline, weighed down by a 25% slump in 99acres.com revenues.

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08-Sep-20

V-Mart Retail (SELL): Revival hopes pinned on Q3 festive season

Key takeaways from our recent interaction with the V-Mart Retail management (VMART).

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07-Sep-20

[Initiation] InterGlobe Aviation (BUY): Market leader advantage – initiate with BUY

We believe InterGlobe Aviation (IndiGo) is poised for strong growth given its market leadership (over 50% market share), ready capacity, strong balance sheet and the vulnerability of most of its peers in the domestic aviation industry.

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07-Sep-20

Greenpanel Industries (BUY): MDF segment in strong recovery mode

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

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02-Sep-20

Finolex Industries (BUY): Demand situation steadily improving

Key takeaways from our interaction with the management of Finolex Industries (FNXP).

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02-Sep-20

ONGC (BUY): Pricing in the worst – upgrade to BUY

ONGC’s Q1FY21 earnings at Rs 5bn (–90% YoY) outperformed estimates on lower operating costs.

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30-Aug-20

Reliance Industries (SELL): Expanding footprint in retail

RIL’s retail business subsidiary – RRVL - announced ~Rs247 bn investment in Future enterprises (FEL).

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28-Aug-20

DCB Bank (SELL): Clarity on asset quality by Q3FY21

Key takeaways from our recent interaction with the DCB Bank (DCBB) management.

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26-Aug-20

Indraprastha Gas (REDUCE): Volumes slump; raise to REDUCE post correction

Indraprastha Gas’ (IGL) Q1FY21 EBITDA was a tad below estimates at Rs 0.8bn (–77% YoY).

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22-Aug-20

Oil India (REDUCE): Muted volumes

Oil India (OINL) reported a loss of Rs 2.5bn for Q1FY21, impacted by one-off expenses to contain a blowout at one of its oilfields in Assam.

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19-Aug-20

Muthoot Finance (ADD): Opex levers played out, valuations hit peak – cut to ADD

Muthoot Finance’s (MUTH) Q1FY21 gold AUM increased 15% YoY to Rs 413bn due to higher productivity.

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18-Aug-20

Petronet LNG (BUY): Margins improve, volume outlook brightens

Petronet LNG’s (PLNG) Q1FY20 EBITDA was in line at Rs 9bn (–11% YoY), with low volumes (–16% YoY) being compensated by higher EBITDA/ mmbtu at Rs 48 (+5.7% YoY).

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17-Aug-20

Greenply Industries (BUY): Q1 revenues slump; outlook improving

Greenply Industries’ (GIL) consolidated Q1FY21 revenue declined 62% YoY as India sales dropped 65% due to the lockdown and Gabon subsidiary revenue fell 43%.

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17-Aug-20

VRL Logistics (BUY): Insipid Q1 but steady recovery bodes well

Lockdown-induced disruptions catalysed a steep 70% YoY decline in VRL Logistics’ (VRLL) Q1FY21 topline to Rs 1.6bn.

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14-Aug-20

Mayur Uniquoters (ADD): Tepid quarter, upside limited; downgrade to ADD

Mayur Uniquoters’ (MUNI) Q1FY21 volumes nosedived 74% YoY as the lockdown hit demand, leading to a standalone revenue decline of 70% and an operating margin loss of Rs 5mn.

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14-Aug-20

Bharat Petroleum Corp (BUY): GRMs outperform but marketing to aid earnings growth

BPCL’s Q1FY21 earnings beat estimates driven by higher GRMs (US$ 1.9/bbl) and a surge in marketing margins.

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14-Aug-20

Hero MotoCorp (REDUCE): Optimism priced in – maintain REDUCE

Hero MotoCorp (HMCL) delivered a Q1FY21 revenue beat but disappointed on earnings due to lower operating efficiencies.

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13-Aug-20

Eicher Motors (SELL): Downtrading could dent volumes – cut to SELL

Eicher Motors (EIM) reported in-line Q1FY21 revenue but dismal operating margins at 0.2%, primarily due to higher input costs and lower operating efficiencies.

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13-Aug-20

Century Plyboards (BUY): Tough quarter, potential normalcy by Q4

Century Plyboards’ (CPBI) standalone Q1FY21 revenues contracted 65% YoY, with all major product segments declining by over 60%.

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13-Aug-20

Transport Corp of India (BUY): Multi-modal capabilities to the fore

Notwithstanding strong industry headwinds, Transport Corp (TRPC) reported a sturdy Q1FY21 print, underscoring the strength of its business model.

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13-Aug-20

GAIL (BUY): Marketing losses sink earnings

GAIL’s Q1FY21 PAT was below estimates at Rs 2.6bn (–80% YoY).

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13-Aug-20

Ashok Leyland (SELL): Weak macros, rich valuations – maintain SELL

Ashok Leyland’s (AL) Q1FY21 performance was disappointing despite a strong boost to blended average realisations from BS-VI price upgrades.

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13-Aug-20

Aurobindo Pharma (BUY): In-line Q1; earnings, balance sheet comfort merit higher multiple

Q1 revenue/EBITDA were in line backed by strong US sales and sustained gross margins.

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13-Aug-20

eClerx Services (REDUCE): Aggressive cost management saves the day

eClerx (ECLX) reported a surprising operating margin beat in Q1FY21 backed by aggressive cost cuts.

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12-Aug-20

Somany Ceramics (BUY): Recovery expected in Q2; upgrade to BUY on cheap valuations

Somany Ceramics (SOMC) reported a dull Q1FY21 as consolidated revenue shrank 57% YoY to Rs 1.7bn, with tile volumes down 56% YoY.

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11-Aug-20

V-Mart Retail (SELL): Lockdown blues; near-term outlook remains murky

V-Mart Retail (VMART) reported a below-expected Q1FY21 – revenue plunged 83% YoY to Rs 781mn as SSSg dropped 85% in a lockdown-hit quarter.

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11-Aug-20

[Initiation] V.S.T Tillers Tractors (BUY): Power tillers to steer growth – initiate with BUY

We believe VST Tillers Tractors (VSTT) is poised for strong growth given its market leadership in power tillers (~50% market share), ready capacity, focused growth in tractors and debt-free status.

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10-Aug-20

Container Corp of India (SELL): Increased land licence fee a massive blow; downgrade to SELL

Container Corp’s (CCRI) Q1FY21 revenue/EBITDA dropped 27%/61% YoY, in line with estimates.

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10-Aug-20

Mahanagar Gas (SELL): Muted volume outlook

Mahanagar Gas’s (MAHGL) Q1FY21 PAT underperformed at Rs 0.45bn (–73% YoY).

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10-Aug-20

Finolex Industries (BUY): Tough quarter but outlook healthy; raise to BUY on low valuations

Finolex Industries’ (FNXP) Q1 revenue declined 40% YoY, with volumes sliding 42% in both PVC pipe and resin segments amid the lockdown.

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10-Aug-20

Persistent Systems (SELL): CEO resigns after short stint; reiterate SELL

In a surprising development, Persistent System's (PSYS) CEO Christopher O'Connor has resigned after a short stint of 1.5 years.

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08-Aug-20

DCB Bank (SELL): Profit below estimates; need for higher Covid provision buffer

DCB Bank’s (DCBB) Q1FY21 PAT at Rs 0.8bn (–2% YoY) was hit by muted NII growth and a 29% QoQ drop in non-interest income.

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08-Aug-20

Divi's Labs (REDUCE): Q1 beat due to lumpiness – retain REDUCE on full valuations

Strong execution in Q1 drove a sharp 39% EBITDA beat for Divi’s Labs (DIVI).

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08-Aug-20

Kajaria Ceramics (ADD): Tepid quarter but ahead of estimates

Kajaria Ceramics (KJC) posted a consolidated Q1FY21 revenue decline of 60% YoY – albeit bettering our estimates – as tile volumes fell 61% due to the lockdown.

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08-Aug-20

Mahindra & Mahindra (SELL): Tractors save the day; valuations rich – maintain SELL

M&M’s (MM) Q1FY21 revenues dropped 56% YoY to Rs 56bn, EBITDA declined 68% to Rs 5.7bn and PAT nosedived 96% to Rs 389mn.

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08-Aug-20

Cipla (BUY): Strong Q1 beat; stock catalysts intact – BUY

Cipla reported a Q1 EBITDA beat of 42%/30% on our/consensus estimates, led by (1) Albuterol stocking in the US, (2) chronic/trade generic sales in India, and (3) cost control (–27% YoY), partly non-recurring.

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08-Aug-20

Alkem Labs (BUY): Gross margin beat sustainable; stronger FCF to support rerating

Alkem Labs posted a solid Q1 EBITDA beat led partly by one-offs.

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08-Aug-20

Lupin (ADD): Weak quarter; multiple near-term catalysts

Lupin’s (LPC) Q1 revenue/EBITDA were 12%/14% below estimates.

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07-Aug-20

Hindustan Petroleum Corp (BUY): Marketing margins bolster earnings

HPCL’s Q1FY21 PAT outperformed at Rs 28bn as marketing margins surged to historical highs – a trend which reaffirms our preference for the OMC business model.

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07-Aug-20

Pidilite Industries (SELL): Business slumps amid lockdown

Pidilite Industries’ (PIDI) consolidated Q1FY21 revenue contracted 57% YoY as the lockdown induced a 59% slump in domestic consumer & bazaar (CBP) segment volumes.

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07-Aug-20

Greenpanel Industries (BUY): Lockdown mars quarter

Greenpanel Industries’ (GREENP) Q1FY21 consolidated revenue dropped 57% YoY due to the Covid-19 lockdown, with the plywood/MDF segments declining by 62%/56% YoY – in line with estimates.

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07-Aug-20

Canara Bank (ADD): Strong operating performance

Canara Bank (CBK) reported PAT of Rs 4bn backed by 21% YoY growth in NII and a 32% increase in operating profit.

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06-Aug-20

Gujarat State Petronet (BUY): Swiftly returning to normal

Gujarat State Petronet’s (GUJS) Q1FY20 EBITDA was in line at Rs 3.5bn (–14% YoY).

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06-Aug-20

Cera Sanitaryware (ADD): Weak Q1 due to lockdown, but ahead of estimates

Cera Sanitaryware’s (CRS) Q1FY21 consolidated revenue declined 46% YoY, bettering our estimate of a 62% drop.

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06-Aug-20

PI Industries (BUY): Q1 beat; Growing CSM mix can drive rerating – raise to BUY

PI Industries (PI) reported a strong beat in Q1FY21 with sharp QoQ EBITDA recovery.

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05-Aug-20

Astral Poly Technik (REDUCE): Lockdown-hit quarter

Astral Poly Technik’s (ASTRA) Q1FY21 consolidated revenue declined at a slower pace than expected, posting 33% YoY contraction as the lockdown induced a 31% drop in pipe volumes.

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04-Aug-20

Indian Oil Corp (BUY): Improved outlook on marketing margins

IOCL’s Q1FY21 EBITDA at Rs 55bn (–34% YoY) was above estimates.

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04-Aug-20

Gujarat Gas (ADD): Muted Q1 but volumes have normalised; cut to ADD on low upside

Gujarat Gas’ (GUJGA) Q1FY21 earnings were well below estimates, plunging 75% YoY to Rs 0.5bn.

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04-Aug-20

HDFC Bank (BUY): Elevation of Sashi Jagdishan as MD & CEO a big positive

As per a press release on the exchanges, HDFC Bank (HDFCB) has received RBI approval to appoint Sashidhar Jagdishan as Managing Director and CEO for three years.

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01-Aug-20

UPL (BUY): Mixed results; FY21 growth guidance healthy

UPL’s Q1FY21 EBITDA was an 11% beat despite an 8% sales miss.

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01-Aug-20

Sun Pharma (REDUCE): Mixed Q1; margin beat unlikely to sustain – REDUCE

Sun Pharma (SUNP) posted an 11% EBITDA beat but an 8% miss on sales.

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31-Jul-20

State Bank of India (ADD): Stable on most fronts

SBIN’s Q1FY21 PAT at Rs 42bn (+81% YoY) was backed by 16% NII growth and gains worth Rs 15bn from the SBI Life stake sale.

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31-Jul-20

Mahindra Logistics (BUY): Weak headline numbers mask encouraging underlying trends

Though Mahindra Logistics’ (MLL) headline numbers were expectedly weak – consolidated revenue fell 54% YoY with EBITDA loss at Rs 22mn – a closer look at the Q1FY21 print reveals several positives.

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31-Jul-20

Cholamandalam Investment (BUY): Business activity picking up in pockets

Cholamandalam Investment (CIFC) reported 10% YoY growth in AUM to Rs 635bn in Q1FY21, led by low repayment rates.

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31-Jul-20

Laurus Labs (BUY): All-round beat; multiple positives spur big upgrade – TP Rs 1,200

Laurus Labs reported a record Q1 beat with no major one-offs.

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31-Jul-20

[Initiation] Escorts (SELL): Growth levers priced in; initiate with SELL

Escorts (ESC) is the third largest tractor manufacturer in India, commanding ~11% market share in the ~800,000-unit p.a. tractor industry.

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31-Jul-20

Reliance Industries (SELL): Cyclicals and retail sink; RJio saves the day – downgrade to SELL

Key highlights from Reliance Industries’ (RIL) Q1FY21 results: (a) EBITDA below estimates at Rs 169bn (–21% YoY), (b) cyclicals mixed – GRM at US$ 6.3/bbl outperformed estimates while petchem EBITDA at Rs 44bn (–50% YoY) fell short, (c) retail EBITDA underperformed at Rs 10.8bn (–47% YoY) whereas RJio EBITDA was higher at Rs 78bn (+59% YoY) on better ARPU.

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30-Jul-20

Ajanta Pharma (BUY): Solid beat on margins – set to normalise in coming quarters

Ajanta Pharma (AJP) posted Q1 revenue/EBITDA growth of 9%/33% YoY to Rs 6.7bn/Rs 2.2bn.

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29-Jul-20

Yes Bank: Challenges galore – we drop coverage

Yes Bank (YES) reported Q1FY21 PAT of ~Rs 0.5bn on a 50% QoQ increase in NII and 78% QoQ decline in provisions.

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29-Jul-20

Dr Reddy's Labs (ADD): Good beat but ETR increase caps earnings upgrade – ADD

Dr Reddy’s (DRRD) reported a Q1 EBITDA beat of 21% despite a marginal surprise on sales.

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29-Jul-20

TVS Motor (SELL): Rich valuations; maintain SELL

TVS Motor’s (TVSL) Q1FY21 revenue beat estimates at Rs 14.3bn.

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29-Jul-20

Manappuram Finance (ADD): MFI and vehicle finance to see incremental stress – cut to ADD

Manappuram Finance’s (MGFL) gold AUM surged 33% YoY to Rs 177bn in Q1FY21.

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29-Jul-20

Maruti Suzuki (ADD): Weak Q1; upsides limited – downgrade to ADD

Maruti (MSIL) reported a disappointing Q1FY21.

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29-Jul-20

IDFC First Bank (SELL): High moratorium in corporate portfolio a risk – cut to SELL

IDFC First Bank’s (IDFCFB) Q1FY21 PAT at Rs 0.9bn was aided by 38% YoY growth in NII, stable non-interest income and lower opex QoQ.

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29-Jul-20

RBL Bank (SELL): Potential stress to keep ROE subdued – cut to SELL

RBL Bank’s (RBK) Q1FY21 PAT at Rs 1.4bn was below our estimate as non-interest income fell 30% YoY due to lower credit offtake, a conservative approach and reduced credit card income.

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29-Jul-20

NIIT Technologies (ADD): Strong guidance despite weak quarterly performance

NIIT Tech (NITEC) reported a poor Q1FY21 performance marked by a 9.8% QoQ USD revenue decline due to weakness in the travel and transportation vertical.

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28-Jul-20

IndusInd Bank (BUY): Profit beats estimates; moratorium share drops

IndusInd Bank’s (IIB) Q1FY21 PAT of Rs 5.1bn beat our estimate of Rs 3.8bn on better NII growth, stable NIMs and higher treasury gains.

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28-Jul-20

Hexaware Technologies (ADD): Results outperform of estimates

Hexaware (HEXW) reported a resilient Q2CY20 with a dollar revenue decline of just 1.4% QoQ.

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28-Jul-20

Tech Mahindra (BUY): Performance surpasses expectations

Tech Mahindra (TECHM) posted a 6.8% QoQ dollar revenue decline and 10bps EBITDA margin expansion, bettering our estimates for Q1FY21.

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28-Jul-20

Persistent Systems (SELL): Good quarter but valuations rich; downgrade to SELL

Persistent Systems (PSYS) reported a surprisingly strong set of numbers, with Q1 dollar revenue growth at 3.1% QoQ.

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28-Jul-20

Nippon Life India Asset Management (SELL): Margins contract as opex normalises

Nippon Life Asset Management (NAM) reported a Rs 250bn sequential increase in Q1FY21 AUM, largely due to the MTM effect.

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27-Jul-20

TCI Express (BUY): Asset-light model fortifies margins

Though TCI Express’s (TCIEXP) topline nosedived 65% YoY in Q1FY21 amidst challenging externalities, it posted a remarkable 715bps YoY expansion in gross margin to 35%, underpinning the strength of its asset-light business model.

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27-Jul-20

Kotak Mahindra Bank (BUY): Moratorium share dips; asset quality slips on prudent measures

Kotak Bank’s (KMB) PAT at Rs 12.4bn declined 8.5% YoY given a 33% drop in fee income and higher Covid-related provisions worth Rs 6.2bn.

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27-Jul-20

Supreme Industries (REDUCE): Demand uncertainty persists; downgrade to REDUCE

Supreme Industries (SI) reported above-expected revenue of Rs 10.5bn (–27% YoY) in Q1FY21, with a 19% lockdown-led drop in volumes.

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25-Jul-20

ICICI Bank (BUY): Prudent provisions reassuring

ICICI Bank’s (ICICIBC) Q1FY21 PAT at Rs 26bn was supported by 20% YoY growth in NII and strong core operating profits (+15% YoY).

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24-Jul-20

Mphasis (SELL): Strong deal wins; DXC remains soft

Mphasis (MPHL) reported weak revenue but an operating margin beat in Q1FY21.

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23-Jul-20

HDFC Asset Management Company (BUY): Equity flows remain subdued

HDFC Asset Management (HDFCAMC) reported a ~Rs 400bn sequential AUM increase in Q1FY21, largely due to the MTM effect.

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22-Jul-20

Bajaj Auto (SELL): Margin disappoints; 3Ws worst hit after CVs – cut to SELL

Bajaj Auto’s (BJAUT) Q1FY21 EBITDA margin disappointed, coming in at 13.3% vs. ~17% expected, despite better gross margins.

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22-Jul-20

Alembic Pharma (BUY): Strong beat (ex-India) drives earnings upgrade

Alembic Pharma (ALPM) reported another strong quarter with a 36% EBITDA beat.

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22-Jul-20

[Initiation] Minda Corp (BUY): Key beneficiary of BSVI implementation – initiate with BUY

Minda Corp (MDA) is a leading manufacturer of auto components with a diverse product slate.

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22-Jul-20

Bajaj Finance (BUY): Opex control a positive surprise, liquidity buffers strong

Bajaj Finance (BAF) reported 7% YoY AUM growth in Q1FY21.

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22-Jul-20

Axis Bank (BUY): Balance sheet continues to strengthen

Axis Bank’s (AXSB) Q1FY21 PAT declined 19% YoY to Rs 11bn owing to weak fee income (–38% YoY/–44% QoQ) and accounting policy changes (~Rs 5bn hit).

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21-Jul-20

V-Mart Retail (SELL): Tough times ahead – downgrade to SELL

The renewed lockdown in V-Mart Retail’s (VMART) key markets of Bihar and UP (56% of total stores) will retard demand recovery.

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20-Jul-20

Mahindra & Mahindra Fin Svcs (BUY): Buoyant rural activity, fund raising brighten outlook – raise to BUY

Mahindra & Mahindra Financial Services (MMFS) reported strong 120% YoY growth in Q1FY21 PAT to Rs 1.5bn due to robust opex control and spread expansion.

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18-Jul-20

HDFC Bank (BUY): Strong enough to weather the storm

HDFC Bank’s (HDFCB) Q1FY21 PAT at ~Rs 67bn was driven by 18% YoY growth in NII and a decline in operating expenses.

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17-Jul-20

HCL Technologies (BUY): Upbeat margin outlook

HCL Tech (HCLT) reported a sharp 7.2% QoQ CC topline decline but resilient EBIT margins of 20.5% in Q1FY21.

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16-Jul-20

L&T Infotech (BUY): Resilient show in a challenging quarter

L&T Infotech’s (LTI) Q1FY21 revenue was in line with estimates, with a 4.7% QoQ CC decline due to a drop in the manufacturing and energy/utilities verticals.

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15-Jul-20

Infosys (ADD): Guidance reinstated backed by strong deal pipeline

Infosys (INFO) posted the strongest set of results yet versus peers in Q1FY21, outperforming our revenue and margin estimates.

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15-Jul-20

Reliance Industries (REDUCE): AGM highlights – Expanding lateral offerings

Chairman Mukesh Ambani in his 43rd AGM speech expounded on his vision of expanding lateral offerings across business verticals.

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15-Jul-20

Federal Bank (ADD): Stable operating performance

Federal Bank’s (FB) Q1FY21 PAT at Rs 4bn was driven by 12% YoY growth in NII and lower operating expenses.

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15-Jul-20

Greenply Industries (BUY): Management meet takeaways – Demand yet to pick up

We present key takeaways from our recent interaction with the management of Greenply Industries (GIL).

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15-Jul-20

Wipro (SELL): Strong operational performance despite all odds

Despite a sharp US dollar revenue decline of 7.3% QoQ, Wipro (WPRO) delivered a strong Q1 operational performance with EBIT margins rising 150bps QoQ.

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15-Jul-20

Mindtree (REDUCE): Cloudy revenue visibility

Mindtree (MTCL) reported an operational beat in Q1FY21 led by above-expected margins.

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10-Jul-20

Reliance Industries (REDUCE): Earnings yet to justify rerating – cut to REDUCE

Reliance Industries’ (RIL) diversification edge has shone during the pandemic as it grapples with a difficult environment for its cyclical and retail businesses, while enhancing RJio’s earnings outlook (across verticals).

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10-Jul-20

Tata Consultancy Services (ADD): Dull quarter with few bright spots

TCS’s Q1FY21 performance was a mixed bag with a miss on operating performance but healthy deal wins.

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08-Jul-20

Finolex Industries (ADD): Demand traction for agri pipes improved in May-June

Key takeaways from our recent interaction with the management of Finolex Industries (FNXP): (1) FNXP witnessed healthy demand for agricultural pipes in May and June following easing of the nationwide lockdown.

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06-Jul-20

eClerx Services (REDUCE): Announces Rs 1.09bn buyback – a transient trigger

eClerx (ECLX) has announced a buyback worth Rs 1.09bn through the tender offer route at a maximum price of Rs 550/sh (16.7% premium over the last closing price before the board meeting intimation) – this translates into 1.99mn shares or ~5.5% of total paid-up equity shares.

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06-Jul-20

Allcargo Logistics (ADD): Robust MTO show offset by insipid CFS & P&E segments

Allcargo Logistics’ (AGLL) Q4FY20 consolidated revenue grew at a steady 8% YoY led by the MTO segment (+10%).

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02-Jul-20

Axis Bank (BUY): Capital raising to fortify balance sheet

Axis Bank’s (AXSB) board today approved a proposal to raise funds not exceeding Rs 150bn – this is equivalent to 12.5% of current market capital and 17.6% of Mar’20 net worth.

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01-Jul-20

Cera Sanitaryware (ADD): Lockdown blues – downgrade to ADD

Cera Sanitaryware (CRS) reported below-expected Q4FY20 results as the lockdown derailed standalone revenue growth (–29% YoY).

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01-Jul-20

ONGC (ADD): Concerns abound – cut to ADD

ONGC posted a surprising Q4 loss of Rs 31bn (Rs 66bn on consolidated basis) owing to impairment charges derived from low oil price expectations.

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30-Jun-20

Mayur Uniquoters (BUY): Margin expansion aided by exports

Mayur Uniquoters’ (MUNI) Q4FY20 standalone revenue increased 13% YoY, aided by 58% growth in exports.

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30-Jun-20

Petronet LNG (BUY): Margins outperform ex. one-offs

Petronet LNG’s (PLNG) Q4FY20 EBITDA underperformed at Rs 7bn (+11% YoY) due to ~Rs 3bn in one-offs and low volumes (219tbtu, +7% YoY).

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29-Jun-20

Century Plyboards (BUY): Core business declines but MDF, laminates prop up margins

Century Plyboards’ (CPBI) standalone Q4FY20 revenue growth disappointed with a 10% YoY drop, marked by 14% declines in the plywood/laminate segments.

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29-Jun-20

Oil India (REDUCE): Gloomy outlook – cut to REDUCE

Oil India’s (OINL) Q4FY20 earnings at Rs 9.2bn were boosted by one-off tax writebacks and refunds.

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29-Jun-20

Greenply Industries (BUY): Lockdown saps Q4 performance

Greenply Industries’ (GIL) consolidated Q4FY20 revenue declined 12% YoY, with India sales dropping 13.6% (volumes down 14.6%) due to the lockdown, whereas Gabon subsidiary revenue was flat YoY.

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29-Jun-20

BOB Economics | Macro Daily

India’s forex reserves declined by US$ 2.1bn to US$ 505.6bn for the week ending 19 Jun 2020.

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27-Jun-20

V-Mart Retail (REDUCE): Management meet takeaways – lower footfalls, higher purchases

We discussed consumptions trends in the wake of Covid-19 with the management of V-Mart Retail (VMART).

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27-Jun-20

Kajaria Ceramics (ADD): Lockdown hits hard – downgrade to ADD

Kajaria Ceramics (KJC) posted a below-expected Q4FY20 with revenue down 20% YoY as tile volumes fell 19%.

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26-Jun-20

Somany Ceramics (ADD): Disappointing performance – downgrade to ADD

Somany Ceramics (SOMC) reported a dull Q4FY20 as consolidated revenue contracted 31% YoY to Rs 3.6bn, with tile volumes down 28% YoY.

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26-Jun-20

Container Corp of India (REDUCE): Decent quarter but headwinds ahead – downgrade to REDUCE

Container Corp’s (CCRI) Q4 topline plunged 10% YoY as volumes/realisation fell 4%/7%.

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26-Jun-20

Ashok Leyland (SELL): Weak macros, rich valuations – downgrade to SELL

AL’s Q4FY20 performance was lacklustre despite the boost to blended average realisations from BS-VI price upgrades.

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25-Jun-20

Indian Oil Corp (BUY): Upbeat operating performance

IOCL reported a loss in Q4 due to an inventory hit of Rs 184bn and a Rs 27bn exchange loss.

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25-Jun-20

GAIL (BUY): Trading margins surprise

GAIL’s Q4FY20 PAT was well above estimates at Rs 29bn (+266% YoY).

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25-Jun-20

Canara Bank (ADD): Core operating performance remains weak

Canara Bank (CBK) reported a Rs 32.6bn loss as the bank consciously made higher wage and NPA-related provisions due to amalgamation.

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24-Jun-20

Finolex Industries (ADD): Lockdown dents performance – cut to ADD

Finolex Industries’ (FNXP) Q4 revenue declined 21% YoY, with a 23%/22% drop in PVC pipe/resin volumes due to the lockdown.

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24-Jun-20

Info Edge (SELL): Bleak outlook for core businesses

Info Edge (INFOE) posted muted YoY revenue growth of 10% in Q4FY20, the lowest in the last 12 quarters.

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22-Jun-20

VRL Logistics (BUY): Insipid quarter

VRL Logistics’ (VRLL) Q4FY20 print was weak.

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19-Jun-20

Greenpanel Industries (BUY): Strong operational performance marred by MTM losses

Greenpanel Industries’ (GREENP) Q4FY20 consolidated revenue grew 36% YoY aided by a 23%/40% increase in the plywood/MDF segments.

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18-Jun-20

Pidilite Industries (SELL): Lockdown weighs on growth

Pidilite Industries’ (PIDI) consolidated Q4FY20 revenue declined 6% YoY as volumes slipped 3% in the domestic consumer & bazaar (CBP) segment.

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18-Jun-20

Indraprastha Gas (SELL): Volume concerns worsen – downgrade to SELL

Indraprastha Gas’ (IGL) Q4FY20 EBITDA was in line at Rs 3.8bn (+13.7% YoY).

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18-Jun-20

Muthoot Finance (BUY): All that glitters is gold

Muthoot Finance’s (MUTH) gold AUM increased 22% YoY to Rs 416bn in Q4FY20 due to robust gold loan demand.

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17-Jun-20

Hindustan Petroleum Corp (BUY): Marketing advantage in challenging times

HPCL’s Q4FY20 PAT was battered by Rs 41bn in inventory losses.

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15-Jun-20

Sun Pharma (REDUCE): Ilumya out-licensed to Hikma for MENA region

Sun Pharma (SUNP) and Hikma today entered into an exclusive licensing and distribution agreement for Ilumya for the MENA region.

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13-Jun-20

Eicher Motors (ADD): Downtrading fears could dent volumes – cut to ADD

Eicher Motors (EIM) reported in-line Q4FY20 revenue but disappointing operating margins at 20.8%, the lowest in the last eight quarters.

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11-Jun-20

Mahanagar Gas (SELL): Margins expand but volume outlook weak – cut to SELL

Mahanagar Gas’s (MAHGL) Q4FY20 PAT underperformed at Rs 1.7bn (+25% YoY).

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11-Jun-20

DCB Bank (SELL): Potential capital raise entails high dilution – cut to SELL

DCB Bank’s (DCBB) board today passed a resolution to raise equity capital of up to Rs 5bn.

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10-Jun-20

Hero MotoCorp (REDUCE): Optimism priced in – downgrade to REDUCE

Hero MotoCorp (HMCL) posted an operationally weak Q4FY20 performance led by poor gross margins and one-off dealer support via discounts.

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09-Jun-20

BOBCAPS Research | eClerx Services (REDUCE): Valuation inexpensive but lacks catalysts

eClerx’s (ECLX) Q4FY20 dollar revenue declined by a sharp 7.9% QoQ owing to onsite revenue contraction of 15%.

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08-Jun-20

Gujarat State Petronet (BUY): Volumes buoyant

Gujarat State Petronet’s (GUJS) Q4FY20 EBITDA underperformed estimates at Rs 3.6bn (+8% YoY) due to higher expenses.

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08-Jun-20

PI Industries (ADD): Stable outlook; stretched valuation limits stock upside

PI Industries’ (PI) Q4FY20 results were disrupted by Covid-19 but we expect gradual recovery.

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06-Jun-20

Divi's Labs (REDUCE): Q4 disappoints – downgrade to REDUCE

Divi’s Labs (DIVI) saw a steep 19% EBITDA miss as high gross margins (+200bps QoQ) were negated by staff/SGA cost, leading to subpar Q4 operating margins.

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06-Jun-20

Indian Oil Corp (BUY): Covid-19 update – operations fast returning to normal

IOCL announced that domestic petroleum product demand improved in May as staggered easing of the lockdown stemmed the decline in consumption to 30% YoY (from 46% YoY in April).

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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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