Alembic Pharmaceuticals Ltd. is principally engaged in the manufacturing and selling of APIs and Formulations. With an emphasis on innovation and technology, the company has established a state-of-the-art research facility - Alembic Research Centre (ARC)-including formulation research and 150-bed bioequivalence facility at Vadodara, Gujarat. Additionally, APL has recently invested in ultra-mode
Core performance supported by Telecom and Consultancy
Visibility of ~15% earnings CAGR over FY17-20E; Upgrade TP
PWGR reported another strong quarter, with PAT increasing 14% YoY to INR20.5b, which, however, was lower than our estimate of INR21.8b due to employee wage hike provision and non-uniform capitalization. The wage hi
Disappointing quarter; Cut to HOLD
* Entertainment Network India (ENIL) underperformed peers in Q1FY18 in terms of revenue growth, which the management attributed to macro factors like spill-over impact of demonetization, RERA and GST. Impact of yield increase strategy resulted in lower volume.
* Legacy stations registered a decline of 15% yo
We initiate our BUY recommendation on BSE Ltd
BSE owns and operate the first stock exchange in Asia, which was formed in 1875. At the end of August 2017, BSE was the world's largest exchange by number of listed securities (5,794 securities), and India's largest and the world's 10th largest exchange by market capitalization.
BSE operates in three primary lines of
We analysed Century Plyboards’ (CPBI) FY17 Annual Report and key takeaways are:
* CPBI posted revenue/EBITDA/PAT growth of 11%/13%/13% for FY17 led by higher contribution from commercial veneer and laminate divisions, even as the plywood division posted flat growth due to demonetization and subdued real estate activity during FY17.
* Plywood sale volu
Stronger-than-expected performance on higher realizations
* Revenue came in better than expected at Rs28bn (+65% yoy/-1% qoq) on the back of both, higher volume and better realization. Sales volume stood at 9.21mt (+19% yoy/-6% qoq) while realization increased 40% yoy to Rs3,068/tn (+6% qoq).
* EBITDA rose by 83% yoy (60% qoq) to Rs14.95bn. C
* Deferment of deliveries impacted overall performance:
Triveni Turbine’s Q1FY2018 reported a decline in revenues by 25% YoY to Rs122crore. The slide in revenues was on account of rescheduling of the orders by customers, due to deferment of deliveries on account of GST, a malware attack in gl
Below estimates; Performance marred by state specific issues; Cut EPS by 4-8%
* Repco Home Finance (REPCO) reported 1QFY18 PAT of INR452m, 6% below our estimate, driven by sluggish loan growth, a drop in yields and poor asset quality performance.
* Sanctions and disbursements were down 9% YoY. Due to some confusion on the High Court order lif
Demand uptick, innovative offerings to drive growth
Garware Wall Ropes Ltd (GWRL) reported impressive numbers for Q1FY18 with net revenue and PAT growth of 11.8% & 31.2% YoY respectively. EBITDA margin gains of 127bps YoY (15.3%) was encouraging. We remain positive on GWRL's long term growth prospects, given its niche presence in fast growing t
Steady shift to secured products; at PAR delinquencies in MF up marginally
* Equitas reported PAT growth of 126% QoQ (-75% YoY) to INR156m (15% miss). PPoP exceeded estimate by 31%, helped by lumpy PSLC fees and largely in-line NII. Other income of INR820m (1.6x beat) included INR600m of PSLC fees. However, provisions of INR441m (above est. of INR250m
* Revenue of Rs6.8bn was 19% higher than estimate owing to higher than expected contracting revenue of Rs5.0bn which led to EBITDA of Rs1.2bn that was 12% higher than estimate and APAT of Rs470mn vs. estimated Rs450mn.
* Sobha clocked Q1FY18 sales volume of 0.82msf (up 13% QoQ) wort
Shankara Building Products Ltd (Shankara Buildpro) was founded by Mr Sukumar Srinivas, a first generation entrepreneur, having 33 years of experience in the building products industry. It is one of the leading organized retailers of home improvement and building products in South India based on number of stores, operating under the trade name Shankara BuildPro. Company has emerged as a one-stop
Multiple Growth Drivers in Place
Increasing premiumisation, higher share of organised industry post-GST roll-out, operating leverage and asset light expansion model will be the key growth drivers for Somany Ceramics (SCL), going forward. Expecting SCL to report revenue and earnings CAGR of 13.8% and 24.6%, respectively through FY17-19E coupled with att
4Ws now command high aspirational value among India‟s rising middle class. This along with low 4W penetration in the country should keep industry growth close to double digits over the next five years. Maruti Suzuki India Limited (MSIL) is best placed in this scenario due to its large sales network, lower service cost and higher resale value. Through NEXA, ARENA and revamped True Value format
Weak performance in the run-up to GST rollout
* Volume growth impacted: Prism Cement’s (PRSC) standalone 1QFY18 revenue increased 3% YoY (-7% QoQ) to INR13.2b (est. of INR14.6b), led by a 3% YoY decline in cement volumes. Cement realizations increased ~3% QoQ (~+11% YoY) to INR4,620 (est. of INR4,659) due to improved pricing in i
Weak revenue, strong margins
* ITD Cementation India (ITCE) reported weak Q2CY17 consolidated revenue of Rs4.9bn that was 25% below estimate. However, improved EBITDA margin of 11.2% vs. estimated 10% and no JV losses lead to improved profitability on YoY basis.
* With execution being weak in H1CY
* Weak operational performance, PAT slightly ahead of estimates:
During the quarter, Union Bank of India’s (UBI) net interest income grew by 6.7% YoY, slightly lower considering the loan growth (up 9.9% YoY gross basis). The low growth can mainly be attributed to interest reversals amounting
Beat-and-raise as revenue momentum continues
* Revenue momentum intact: HEXW continued its strong revenue momentum in 2QCY17 (USD152.6m; 2.3pp beat). In constant currency terms, revenue grew 4.9% QoQ and 18.2% YoY to USD151.8m. EBITDA margin, including ESOP charges, shrunk 70bp QoQ to 16.2%, marginally below our estimate, due to eleva
In-line results; maintain HOLD
* Ramco Cements’ Q1FY18 operating performance was in line with our estimate, with EBITDA of Rs2.5bn against our estimate of Rs2.6bn while EBITDA/tn came in at Rs1,173 against our estimate of Rs1,161. The beat in profit was driven by higher operating income and lower interest expense.
* Sales volume grew by
Value unlocking in demerger
CESC has in May 2017 announced the much expected restructuring of its business into four distinct parts—distribution (Kolkata and franchisee assets), generation (Kolkata, Chandrapur and Haldia), retail (Spencers and Music World) and other ventures (First Source and Quest
NESCO's 1QFY18 revenue/EBIDTA stood at Rs 649mn/Rs 452mn, up 10%/2% yoy and +1%/-6% vs. EE. Robust growth in the exhibition business (+21% yoy) drove revenues during the quarter. EBIDTA however fell short of estimates owing to higher operating expenses due to refurbishments in three exhibition halls. Overall, 1QFY18 numbers were largely in line with EE. Our recent meeting with management ha
Rebound in print advertisement revenue is key
* Jagran Prakashan expectedly reported single-digit Print Advertisement revenue growth due to spill-over impact of demonetization and transitional impact of GST implementation. Revenue growth from Circulation was affected by price cut in UP and Bihar markets due to heightened competitive intensity.<
In-line; JPL delivers strong operating performance
Steel margins are inching up
Jindal Steel and Power’s (JSP) 1QFY18 consolidated EBITDA grew 37% YoY (-13% QoQ) to INR13.5b (in-line). Interest cost rose 4% QoQ to INR9b due to an increase in Libor. Cash profit was INR5.4b (v/s cash loss of INR3.2b in 1QFY17). Net debt w
* Lower operating cost and provisions aid bottom line:
During Q1FY2018, Bank of India (BOI) posted weak operating performance as net interest income (NII) declined by 8.7% YoY on account of flat loan book growth and contraction in net interest margin (NIM). Margin during Q1FY2018 declined by 40BPS
Operating performance above expectations; Maintain Neutral
* Performance aided by strong execution: Sales rose 41% YoY to INR12.1b in 1QFY18, meaningfully above our estimate of INR9.5b, led by strong execution of projects in hand. Adj. EBITDA stood at INR1.1b v/s INR21m (one-time tax provision of INR1.8b) in 1QFY17, with the margin ex