26-Jul-2021Research Reports

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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%

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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.)

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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%

View Reports PDF

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%

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

19-May-21

Minda Corporation (BUY): Healthy Q4; upgrade to BUY

Minda Corp’s (MDA) Q4FY21 topline increased 7% QoQ to Rs 7.9bn.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

28-Apr-21

TVS Motor (SELL): Upgrade estimates; maintain SELL on rich valuations

TVS Motor (TVSL) posted a Q4FY21 beat on all counts.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

25-Mar-21

Greenpanel Industries (BUY): MDF demand remains robust

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

View Reports PDF

19-Mar-21

Greenply Industries (BUY): Demand trends strong

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

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

05-Mar-21

Eris Lifesciences (BUY): NDR takeaways – Execution on track

We hosted virtual investor meetings with V Krishnakumar, COO of Eris Lifesciences (ERIS).

View Reports PDF

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).

View Reports PDF

15-Feb-21

Info Edge (SELL): Core businesses fail to revive

Info Edge (INFOE) reported a 15% YoY sales decline in Q3FY21.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

04-Feb-21

Apollo Tyres (SELL): Positives priced in; maintain SELL

Apollo Tyres (APTY) delivered an operational beat in Q3FY21.

View Reports PDF

04-Feb-21

Transport Corp of India (BUY): A lot to like

Transport Corp’s (TRPC) Q3FY21 print beat estimates on all fronts.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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%.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

21-Jan-21

Bajaj Auto (SELL): Operating performance healthy but unsustainable

Bajaj Auto’s (BJAUT) Q3FY21 revenue was in line with projections.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

29-Dec-20

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

We recently interacted with the management of Balrampur Chini Mills (BRCM).

View Reports PDF

23-Dec-20

TCI Express (BUY): Demand on the mend

We recently interacted with the management of TCI Express.

View Reports PDF

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.

View Reports PDF

21-Dec-20

Petronet LNG (BUY): At an inflection point

Key takeaways from our recent interaction with the Petronet LNG (PLNG) management.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

08-Dec-20

Greenply Industries (BUY): Plywood demand recovering steadily

We outline key highlights from our interaction with the management of Greenply Industries (GIL).

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

27-Nov-20

Greenpanel Industries (BUY): MDF growth holds strong

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.).

View Reports PDF

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).

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

11-Nov-20

Info Edge (SELL): Real estate and recruitment business remain sluggish

Info Edge (INFOE) reported a 19% YoY sales decline.

View Reports PDF

11-Nov-20

SpiceJet (BUY): Q2 better than expected; maintain BUY

SpiceJet’s (SJET) Q2FY21 revenue came in at Rs 10.6bn.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.).

View Reports PDF

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%.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

05-Nov-20

Lupin (ADD): Muted Q2; multiple near-term catalysts

Lupin’s (LPC) Q2 EBITDA was 5% below estimates.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

23-Oct-20

Mphasis (REDUCE): DXC remains soft but pipeline healthy – raise to REDUCE

Mphasis (MPHL) reported strong Q2FY21 revenue and margins.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

08-Oct-20

Tata Consultancy Services (BUY): Demand recovery drives outperformance

TCS’ growth of 7.2% USD outperformed street’s estimates.

View Reports PDF

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.

View Reports PDF

24-Sep-20

Cera Sanitaryware (ADD): Demand trends improving

Key takeaways from our interaction with the management of Cera Sanitaryware (CRS).

View Reports PDF

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.

View Reports PDF

21-Sep-20

Ajanta Pharma (BUY): NDR takeaways – Earnings drivers tracking well

We hosted investor meetings with the management of Ajanta Pharma (AJP).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

17-Sep-20

Greenply Industries (BUY): Demand conditions improving gradually

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

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

02-Sep-20

Finolex Industries (BUY): Demand situation steadily improving

Key takeaways from our interaction with the management of Finolex Industries (FNXP).

View Reports PDF

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.

View Reports PDF

30-Aug-20

Reliance Industries (SELL): Expanding footprint in retail

RIL’s retail business subsidiary – RRVL - announced ~Rs247 bn investment in Future enterprises (FEL).

View Reports PDF

28-Aug-20

DCB Bank (SELL): Clarity on asset quality by Q3FY21

Key takeaways from our recent interaction with the DCB Bank (DCBB) management.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

13-Aug-20

GAIL (BUY): Marketing losses sink earnings

GAIL’s Q1FY21 PAT was below estimates at Rs 2.6bn (–80% YoY).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

10-Aug-20

Mahanagar Gas (SELL): Muted volume outlook

Mahanagar Gas’s (MAHGL) Q1FY21 PAT underperformed at Rs 0.45bn (–73% YoY).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

08-Aug-20

Lupin (ADD): Weak quarter; multiple near-term catalysts

Lupin’s (LPC) Q1 revenue/EBITDA were 12%/14% below estimates.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

04-Aug-20

Indian Oil Corp (BUY): Improved outlook on marketing margins

IOCL’s Q1FY21 EBITDA at Rs 55bn (–34% YoY) was above estimates.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

01-Aug-20

UPL (BUY): Mixed results; FY21 growth guidance healthy

UPL’s Q1FY21 EBITDA was an 11% beat despite an 8% sales miss.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

29-Jul-20

TVS Motor (SELL): Rich valuations; maintain SELL

TVS Motor’s (TVSL) Q1FY21 revenue beat estimates at Rs 14.3bn.

View Reports PDF

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.

View Reports PDF

29-Jul-20

Maruti Suzuki (ADD): Weak Q1; upsides limited – downgrade to ADD

Maruti (MSIL) reported a disappointing Q1FY21.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

24-Jul-20

Mphasis (SELL): Strong deal wins; DXC remains soft

Mphasis (MPHL) reported weak revenue but an operating margin beat in Q1FY21.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

22-Jul-20

Bajaj Finance (BUY): Opex control a positive surprise, liquidity buffers strong

Bajaj Finance (BAF) reported 7% YoY AUM growth in Q1FY21.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

15-Jul-20

Mindtree (REDUCE): Cloudy revenue visibility

Mindtree (MTCL) reported an operational beat in Q1FY21 led by above-expected margins.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

25-Jun-20

GAIL (BUY): Trading margins surprise

GAIL’s Q4FY20 PAT was well above estimates at Rs 29bn (+266% YoY).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

22-Jun-20

VRL Logistics (BUY): Insipid quarter

VRL Logistics’ (VRLL) Q4FY20 print was weak.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

17-Jun-20

Hindustan Petroleum Corp (BUY): Marketing advantage in challenging times

HPCL’s Q4FY20 PAT was battered by Rs 41bn in inventory losses.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

05-Jun-20

Gujarat Gas (BUY): Robust margin outlook

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

21-May-20

Bajaj Auto (ADD): Strong operational performance

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

02-May-20

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

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

15-Apr-20

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

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

01-Apr-20

ONGC (BUY): Riding the storm

Key takeaways from our recent interaction with the ONGC management.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

20-Feb-20

Greenply Industries (BUY): Demand slows but margins resilient

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

View Reports PDF

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).

View Reports PDF

18-Feb-20

Greenpanel Industries (BUY): MDF traction to continue

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

14-Feb-20

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

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

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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).

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

12-Feb-20

Greenply Industries (BUY): Gabon operations disappoint

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

11-Feb-20

Oil India (BUY): Volumes remain a drag

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

View Reports PDF

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.

View Reports PDF

10-Feb-20

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

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

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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%.

View Reports PDF

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%.

View Reports PDF

06-Feb-20

Gujarat Gas (BUY): Volumes and margins robust

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

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

30-Jan-20

Bajaj Finance (BUY): Healthy performance in secular slowdown

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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%).

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

23-Dec-19

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

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

View Reports PDF

19-Dec-19

Transport Corp of India (BUY): NDR takeaways

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

View Reports PDF

18-Dec-19

Tech Mahindra (REDUCE): Analyst meet takeaways

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

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

27-Nov-19

Greenply Industries (BUY): Upbeat margin guidance

We attended Greenply Industries’ (GIL) analyst meet.

View Reports PDF

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.

View Reports PDF

17-Nov-19

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

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

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

15-Nov-19

ONGC (BUY): Low costs drive profitability

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

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

11-Nov-19

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

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

View Reports PDF

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.

View Reports PDF

10-Nov-19

Oil India (BUY): Operationally strong

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

View Reports PDF

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).

View Reports PDF

09-Nov-19

GAIL (BUY): Trading earnings slump

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

View Reports PDF

08-Nov-19

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

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

View Reports PDF

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).

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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%).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%).

View Reports PDF

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).

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

14-Aug-19

Indraprastha Gas (BUY): Volumes robust, margins improve

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

14-Aug-19

ONGC (BUY): Valuations pricing in the worst case

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

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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).

View Reports PDF

09-Aug-19

Allcargo Logistics (BUY): In-line quarter

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

02-Aug-19

Mahindra Logistics (BUY): Disappointing quarter on all fronts

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

01-Aug-19

Future Supply Chain Solutions (BUY): Big earnings miss

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

View Reports PDF

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.

View Reports PDF

01-Aug-19

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

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

View Reports PDF

01-Aug-19

Indian Oil Corp (BUY): GRMs disappoint

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

View Reports PDF

31-Jul-19

TCI Express (BUY): Macro slowdown derails growth

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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).

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

29-Jul-19

Reliance Industries (ADD): Diversification now bearing fruit

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

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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.

View Reports PDF

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%.

View Reports PDF

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)…

View Reports PDF

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…

View Reports PDF

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…

View Reports PDF

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

View Reports PDF

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

View Reports PDF

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

View Reports PDF