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Edelweiss Housing Finance and Standard Chartered Bank partner for Co-lending of Loan against Property (LAP) Edelweiss Housing Finance Limited (EHFL), a part of the Edelweiss group has announced a strategic co-lending partnership with Standard Chartered Bank, for extending loans against property (LAP) to our prospective customers especially MSMEs. Definitive agreements as per RBI’s Co- Lending Model (CLM) have been executed between EHFL and Standard Chartered Bank. This business partnership model will combine Standard Chartered Bank’s expertise in this segment with Edelweiss’ reach...
Edelweiss Housing Finance and Standard Chartered Bank partner for Co-lending of Loan against Property (LAP)
Edelweiss Housing Finance and Standard Chartered Bank partner for Co-lending of Loan against Property (LAP)
Source: PR Agency
4/09/2023 12:47:31 PM
TVS Supply Chain Solutions gets SEBI`s go-ahead to raise funds via IPO TVS Supply Chain Solutions, part of TVS Mobility Group, has received the Securities and Exchange Board of India’s (SEBI's) approval to float an initial public offering (IPO). The IPO comprises a fresh issue of equity shares aggregating up to Rs 750 crore and an Offer for Sale (OFS) of over 2 crore equity shares by promoters and existing shareholders. Proceeds from the fresh issue will be utilised for payment of debt availed by the company and its subsidiaries -- TVS LI UK and TVS...
TVS Supply Chain Solutions gets SEBI`s go-ahead to raise funds via IPO
TVS Supply Chain Solutions gets SEBI`s go-ahead to raise funds via IPO
Source: Accord Fintech
26/07/2023 3:06:37 PM
Jupiter Life Line Hospitals files IPO papers with SEBI Jupiter Life Line Hospitals has filed draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). The IPO comprises fresh issue of equity shares worth Rs 615 crore and an offer for sale (OFS) of 44.5 lakh equity shares by promoter group entities and other shareholders. Proceeds of the fresh issue to the tune of Rs 464 crore will be utilized to retire debt. Besides, funds will be used fo...
Jupiter Life Line Hospitals files IPO papers with SEBI
Jupiter Life Line Hospitals files IPO papers with SEBI
Source: Accord Fintech
12/05/2023 4:42:01 PM
Go Digit General Insurance re-files DRHP with SEBI for IPO Go Digit General Insurance has refilled draft red herring prospectus (DRHP) with Securities and Exchange Board of India (SEBI) for its initial public offering (IPO) after making certain changes to its employee stock appreciation rights scheme. This came after SEBI returned Go Digit's draft IPO papers on January 30 and asked the company to refile the documents with certain updates. The company had first filed the DRHP with Sebi in August 2022 to raise funds through an initial share sale. ...
Go Digit General Insurance re-files DRHP with SEBI for IPO
Go Digit General Insurance re-files DRHP with SEBI for IPO
Source: Accord Fintech
12/04/2023 11:02:18 AM
Edelweiss Financial Services soars on getting nod to raise funds up to Rs 1,500 crore via NCDs Edelweiss Financial Services is currently trading at Rs. 53.55, up by 2.14 points or 4.16% from its previous closing of Rs. 51.41 on the BSE. The scrip opened at Rs. 51.30 and has touched a high and low of Rs. 53.99 and Rs. 51.30 respectively. So far 111866 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 77.40 on 18-Jan-2023 and a 52 week low of Rs. 49.40 on 20-Jun-2022. Last one week high and low of the scrip s...
Edelweiss Financial Services soars on getting nod to raise funds up to Rs 1,500 crore via NCDs
Edelweiss Financial Services soars on getting nod to raise funds up to Rs 1,500 crore via NCDs
Source: Accord Fintech
31/03/2023 12:03:25 PM
Edelweiss Financial Services moves up on planning to raise Rs 400 crore through public issue of NCDs Edelweiss Financial Services is currently trading at Rs. 64.70, up by 0.70 points or 1.09% from its previous closing of Rs. 64.00 on the BSE. The scrip opened at Rs. 64.00 and has touched a high and low of Rs. 65.50 and Rs. 64.00 respectively. So far 55924 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 77.50 on 03-Jan-2022 and a 52 week low of Rs. 49.40 on 20-Jun-2022. Last one week high and low of the scrip st...
Edelweiss Financial Services moves up on planning to raise Rs 400 crore through public issue of NCDs
Edelweiss Financial Services moves up on planning to raise Rs 400 crore through public issue of NCDs
Source: Accord Fintech
3/01/2023 12:09:24 PM
Edelweiss Financial Services to raise funds via public issue Edelweiss Financial Services plans to raise at least 2 billion rupees ($24.19 million) through the public issue of non-convertible debentures, according to a term sheet. The company's public issue will open for subscription on Tuesday and will close on Jan. 23. The issue also has a greenshoe option to retain an additional 2 billion rupees. The company is offering bonds maturing in two years, three years, five years and 10 years at an annual coupon in the 9.00%-10.45% range for inves...
Edelweiss Financial Services to raise funds via public issue
Edelweiss Financial Services to raise funds via public issue
Source: Reuters
2/01/2023 2:53:17 PM
FirstMeridian Business Services gets SEBI`s nod to raise Rs 800 crore via IPO FirstMeridian Business Services has received the Securities and Exchange Board of India’s (SEBI) approval to raise Rs 800 crore through an initial public offering (IPO). The equity shares will be listed on the BSE and NSE. The company, which filed the draft red herring prospectus with the SEBI in May 2022, got the regulator’s approval on October 18, 2022. The company would utilise the proceeds from the issue towards funding the repayment and/or prepayment of all or a certain po...
FirstMeridian Business Services gets SEBI`s nod to raise Rs 800 crore via IPO
FirstMeridian Business Services gets SEBI`s nod to raise Rs 800 crore via IPO
Source: Accord Fintech
9/11/2022 10:09:58 AM
Indiabulls Housing Finance to raise up to Rs 1,000 cr via public issue of bonds  Indiabulls Housing Finance Ltd plans to raise up to Rs 1,000 crore, which includes Rs 900 crore through issue of public issue bonds. The Tranche II Issue offers various series of NCDs for subscription with coupon rates ranging from 8.33 per cent to 9.55 per cent per annum. The Issue will open for subscription on Monday, September 5 and closes on September 22. The NCDs under the Tranche II Issue have tenures of 24 months (Series I, II, III), 36 months (Series IV, V, VI), and 60 ...
Indiabulls Housing Finance to raise up to Rs 1,000 cr via public issue of bonds
Indiabulls Housing Finance to raise up to Rs 1,000 cr via public issue of bonds
Source: IANS
5/09/2022 2:35:19 PM
MPC surprises bond market by front-loading of rate hikes By Edelweiss Financial MPC surprises bond market by front-loading of rate hikes In an off-cycle policy meeting, the monetary policy committee (MPC) surprised market participants by announcing the following: • Repo Rate hiked by 40 bp to 4.4% with immediate effect • Cash Reserve Ratio increased by 50 bp to 4.5% from May 21, 2022. This should reduce banking system liquidity by ~Rs. 85,000 crores The RBI governor attributed these measures to the evolving growth-inflation dynamic and decided to ma...
MPC surprises bond market by front-loading of rate hikes By Edelweiss Financial
MPC surprises bond market by front-loading of rate hikes By Edelweiss Financial
Source: Edelweiss Financial Services Ltd
5/05/2022 9:41:49 AM
Buy Vesuvius India Ltd For Target Rs.1,242 - Edelweiss Financial Services Sales in line; margins under pressure Vesuvius India (VIL) posted Q4CY21 sales growth of 10% YoY (5% above estimate; steel production growth of 5% YoY). EBITDA fell 19% YoY (20% below estimate) owing to cost headwinds. For CY21, sales shot up by 32% YoY (steel production growth of 16.8% for industry). The company is building in escalation clauses with major customers, which should aid margin expansion hereon. Capacity expansion of 50% led by the Viso segment in Kolkata and land purchase...
Buy Vesuvius India Ltd For Target Rs.1,242 - Edelweiss Financial Services
Buy Vesuvius India Ltd For Target Rs.1,242 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
2/03/2022 1:18:29 PM
Reduce Biocon Ltd For Target Rs.315 - Edelweiss Financial Services Viatris deal: Necessary but at a huge cost Biocon Biologics Limited, a subsidiary of Biocon, plans to acquire Viatris’s biosimilars assets for USD3.335bn. The deal – valued at ~16.7x CY22 EBITDA – includes cash of up to USD2.335bn and Compulsorily Convertible Preference Shares (CCPS) in BBL, valued at USD1bn. With this acquisition, Biocon gains the entire suite of economic interests and sales force, but without any major pipeline assets(except bEylea, where Biocon has ...
Reduce Biocon Ltd For Target Rs.315 - Edelweiss Financial Services
Reduce Biocon Ltd For Target Rs.315 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
2/03/2022 1:05:22 PM
Industry slows sharply By Edelweiss Financial Services Industry slows sharply Q3FY22 real GDP slowed sharply to 5.4% (vs. 8.5% in Q2FY22), missing estimates by 100bp. Key highlights are: i) Industry and capex were weak (0-2% YoY) despite strong exports reflecting weak domestic demand. ii) Unlocking aided services momentum. iii) India’s manufacturing GDP is now outpacing listed companies. iv) Nominal recovery remains strong, aiding tax collections and corporate profits. We are marking down FY22 real GDP forecast by 60bp to 8.9% owing to a...
Industry slows sharply By Edelweiss Financial Services
Industry slows sharply By Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
2/03/2022 12:21:58 PM
LIC IPO: Can the elephant dance? - Edelweiss Financial Services LIC’s upcoming IPO is possibly India’s biggest and, in this backdrop, we look at the insurer—synonymous with insurance in the country. The behemoth’s decades of dominance is seen in: i) market share: 66% by NBP, 3x next largest; ii) largest asset manager: 80% market share, >15x next largest; iii) agency channel: >7x of private and most efficient (>3x of private); and iv) deep reach: 75% market share on policy basis. Even as its embedded value (EV) has shot ...
LIC IPO: Can the elephant dance? - Edelweiss Financial Services
LIC IPO: Can the elephant dance? - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
2/03/2022 11:52:58 AM
Buy Nestle India Ltd For Target Rs.22,100 - Edelweiss Financial Services EBITDA margins expand Nestle’s Q4CY21 revenue (up 8.4% YoY) came in line with estimates, while EBITDA (up 12.4% YoY) and adjusted PAT (up 16.6% YoY) came ahead of our estimates. Domestic sales (up 9.2% YoY) sustained good growth, largely driven by volume and mix. Nestle reported industry leading 8% YoY domestic volume and mix growth on a base of 7.8%. Sanand factory in Gujarat is now operational. Key raw materials continue to witness high inflation, with many of them at 10-year high ...
Buy Nestle India Ltd For Target Rs.22,100 - Edelweiss Financial Services
Buy Nestle India Ltd For Target Rs.22,100 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
22/02/2022 10:51:23 AM
Retail Sector Update - Robust showing on expected lines by Edelweiss Financial Services Robust showing on expected lines Q3FY22, on expected lines, was a record quarter for some (Titan, Page and Trent), with a full recovery for others (apparel retailers). Overall, revenues were up 30% YoY. Key highlights: i) Jewellery continued its outperformance. We believe, while growth ahead may moderate, it will remain robust. ii) Apparel retail saw the highest beat, driven by Trent and ABFRL as festive and marriage seasonsturned in better than expected. Trent sustained its outperformance...
Retail Sector Update - Robust showing on expected lines by Edelweiss Financial Services
Retail Sector Update - Robust showing on expected lines by Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
21/02/2022 2:02:02 PM
Buy Coal India Ltd For Target Rs.200 - Edelweiss Financial Services Good showing; wage, price hike awaited Coal India (CIL) posted Q3FY22 EBITDA of INR68.3bn (up 32% YoY/73% QoQ), ahead of our and Street’s estimates. Key points: i) Volume uptick and improved e-auction premium led to earnings growth. ii) FSA volume shot up 23% QoQ to 144.6mt as the company concentrated on regulated sector. iii) Provisioning of INR1bn/month towards wage hike. iv) Receivables down to INR150bn at Dec-21-end. Going ahead, we expect robust e-auction premium and improving v...
Buy Coal India Ltd For Target Rs.200 - Edelweiss Financial Services
Buy Coal India Ltd For Target Rs.200 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
21/02/2022 12:55:29 PM
Buy PNC Infratech Ltd For Target Rs.395 - Edelweiss Financial Services Focus on order intake PNC Infratech (PNC) posted Q3FY22 revenue growth of 15% YoY; it provided ~INR390mn for impairment of investments which led to PAT declining 22% YoY. The company has an order book of ~INR144bn (book-to-bill of ~2.4x) and needs to shore this up to enhance revenue visibility. Balance sheet remains healthy while toll collection improved 3% YoY during the quarter. PNC’s increasing exposure to the water segment (34% of the order book) is positive in light of muted inc...
Buy PNC Infratech Ltd For Target Rs.395 - Edelweiss Financial Services
Buy PNC Infratech Ltd For Target Rs.395 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
21/02/2022 10:26:13 AM
Buy Schaeffler India Ltd For Target Rs.2,110 - Edelweiss Financial Services Strong performance despite headwinds Schaeffler India (SCHFL) reported strong Q4CY21 sales growth of 20% YoY/ 2% QoQ, 17% ahead of estimates, driven by outperformance across domestic segments, strong exports and commodity cost passthrough. This led to EBITDA growth of ~25% YoY (35% above estimate) and an uptick of 90bp YoY/110bp QoQ in EBITDA margin to 18.8%. SCHFL has embarked on capex of INR10bn to be incurred over three years focusing on conventional, hybrid as well as rising localisati...
Buy Schaeffler India Ltd For Target Rs.2,110 - Edelweiss Financial Services
Buy Schaeffler India Ltd For Target Rs.2,110 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
21/02/2022 10:19:05 AM
Buy Ipca Laboratories Ltd For Target Rs.1,220 - Edelweiss Financial Services Subdued quarter on expected lines Ipca’s (IPCA) Q3FY22 revenue/EBITDA was 2%/3% below consensus estimate. Weak API and generic exports partly offset by 23% YoY India growth. EBITDA margin at 21.7% hit by power and freight increase. While we accept near-term challenges like slow recovery in UK, shrinking API margins, higher raw material and power and freight cost, Ipca’s domestic strength, API leadership, vertically integrated model and cost optimization are likely to lead to...
Buy Ipca Laboratories Ltd For Target Rs.1,220 - Edelweiss Financial Services
Buy Ipca Laboratories Ltd For Target Rs.1,220 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
17/02/2022 12:16:30 PM
Buy Grasim Industries Ltd For Target Rs.2,043 - Edelweiss Financial Services Good going; acceleration ahead Grasim Industries’ (Grasim) Q3FY22 EBITDA at INR9.2bn (up 43% YoY and 15% QoQ) stood in line with our estimate. We retain our earnings estimates given: i) completion of capacity expansion in VSF. ii) Expected recovery in global VSF prices tracking the rising cotton prices. iii) Capex for chemicals being largely on track. iv) Firm caustic prices. Grasim’s Environment Clearance for two of its plants, identified to foray into the paint business, a...
Buy Grasim Industries Ltd For Target Rs.2,043 - Edelweiss Financial Services
Buy Grasim Industries Ltd For Target Rs.2,043 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
17/02/2022 12:00:37 PM
When will upcoming IPO of LIC get a seat in major passive indices? - Edelweiss Life Insurance Corporation of India (LIC) has filed a draft red herring prospectus (DRHP) and as per a media article, they have commenced formal roadshows seeking their participation in the country’s largest public issue to date. As per chatters the IPO will commence in mid-March and get listed in the same month. As per the offer document, government will sell 5% in the public issue and around 316 million shares are to be sold in total. Even if we safely consider lower end of th...
When will upcoming IPO of LIC get a seat in major passive indices? - Edelweiss
When will upcoming IPO of LIC get a seat in major passive indices? - Edelweiss
Source: Edelweiss Financial Services Ltd
16/02/2022 12:24:48 PM
CPI Inflation : Low base lifts CPI; easing likely ahead By Edelweiss Financial Services Low base lifts CPI; easing likely ahead January CPI rose 30bp to 6%, broadly in line with estimates. Key trends: i) Food inflation jumped 110bp to 5.6%, entirely led by falling base; the underlying trend is very benign – cereal and milk inflation is quite contained while pulses, oils and meat/fish inflation is slowing. ii) core inflation, however, remained sticky at ~6% with goods and energy related inflation being high (>6%), reflecting higher commodity prices, while services rem...
CPI Inflation : Low base lifts CPI; easing likely ahead By Edelweiss Financial Services
CPI Inflation : Low base lifts CPI; easing likely ahead By Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
15/02/2022 2:19:09 PM
Buy eClerx Services Ltd For Target Rs.3,069 - Edelweiss Financial Services Outperformance on all counts eClerx reported robust revenue of INR5.6bn in Q3FY22, beating our and Street’s estimates—both INR5.3bn. EBITDA margin edged up 60bp YoY to 32.3%, outpacing our and Street’s estimate of 30.7% and 30.5%, respectively. PAT at INR1,066mn, up 5.8% QoQ, too came in higher than our estimate of INR993mn and Street’s INR1,010mn. Management believes demand environment remains healthy and that it is expected to remain robust in the near future. ...
Buy eClerx Services Ltd For Target Rs.3,069 - Edelweiss Financial Services
Buy eClerx Services Ltd For Target Rs.3,069 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
15/02/2022 11:54:43 AM
Hold Mahindra & Mahindra Financial Services Ltd For Target Rs.182 - Edelweiss Financial Services Beat on PAT in Q3, but loss likely in Q4 PAT of INR8.9bn in Q3FY22 beat consensus forecast by 60% driven by strong bad loan recovery feeding into provision write-backs. However, high slippage, elevated stage-2 and severe impact of RBI regulations are concerning. Unlike others, MMFS has not made provisions towards the new RBI norms. Based on the new norms, reported NPLs of 11.3% would have been higher by ~7pp, which is the most severe impact among NBFCs we track. Management guided for provi...
Hold Mahindra & Mahindra Financial Services Ltd For Target Rs.182 - Edelweiss Financial Services
Hold Mahindra & Mahindra Financial Services Ltd For Target Rs.182 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
15/02/2022 11:47:56 AM
IT Sector Update - Amazon: Cloud continues to accelerate By Edelweiss Financial Services Amazon: Cloud continues to accelerate Amazon posted strong Q4FY21 numbers: revenue grew 9% YoY to USD137.4bn – in line with management guidance and Street’s estimate. The company has consistently topped USD100bn for the past five quarters. Operating income declined by 50% YoY to USD3.5bn. EPS at USD27.75 topped Street’s USD3.77 estimate. Revenue growth was driven by AWS, up 40% YoY as enterprises and developers continue to look to AWS for critical innovative cloud solu...
IT Sector Update - Amazon: Cloud continues to accelerate By Edelweiss Financial Services
IT Sector Update - Amazon: Cloud continues to accelerate By Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
11/02/2022 11:48:33 AM
Infrastructure Sector Update - January: Road awarding remains muted By Edelweiss Financial Services January: Road awarding remains muted NHAI awarding activity remained subdued in January 2022 with LoA for only project spanning ~15kms issued during the month. YTD FY22 award stands at 2,583km, spanning 92 projects. Post H1FY22, awarding has slowed, only ~600kms were awarded since September 2021. The pace of award needs to pick up substantially over FebruaryMarch 2022 to match FY21’s ~4,800km project awarded figure. The 2022 Union Budget (refer to, Union Budget – A mixed bag...
Infrastructure Sector Update - January: Road awarding remains muted By Edelweiss Financial Services
Infrastructure Sector Update - January: Road awarding remains muted By Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
8/02/2022 12:16:56 PM
Engineering and Capital Goods Sector Update - Play on exciting industry transitions By Edelweiss Financial Services Play on exciting industry transitions… In this edition, we present our proprietary work on market sizing and TAM across key players and conventional-emerging segments. We also delve deeper into the electrification value chain, looking at: i) industrial capex, which is revving up led by PLI, while infra focus is giving a cyclical boost; ii) emerging trends led by sustainability, driving significant scale in the electric vehicles (EV) value chain; and iii) data centres, MRTS, etc addi...
Engineering and Capital Goods Sector Update - Play on exciting industry transitions By Edelweiss Financial Services
Engineering and Capital Goods Sector Update - Play on exciting industry transitions By Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
8/02/2022 11:28:24 AM
Hold AIA Engineering Ltd For Target Rs.2,052 - Edelweiss Financial Services Short term bumpy; growth awaited AIA Engineering (AIA) reported Q3FY22 sales growth of 21% YoY, 6% ahead of estimates, led by a sharp jump in realisation (36% YoY) on the back of raw material price pass-through. Volumes however, missed estimates with dip of 11% YoY/16% QoQ. Separately, high shipping costs eroded EBITDA (down 6% YoY) in-line with our estimates. While bulk of the raw material costs have been passed to customers, the freight cost pass-through is expected to be gradual. Whi...
Hold AIA Engineering Ltd For Target Rs.2,052 - Edelweiss Financial Services
Hold AIA Engineering Ltd For Target Rs.2,052 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
8/02/2022 10:53:32 AM
Reduce Bharat Heavy Electricals Ltd For Target Rs.44 - Edelweiss Financial Services Provisions led beat; challenges stay BHEL reported in line top-line versus consensus, however, managed to report EBITDA/PAT turnaround versus loss expectation. This was led by significant provision reversal and cost focus. For 9M, BHELs top-line stayed lower at ~70% of FY19-20 average levels. BHEL continues suffering from significant underutilisation, given limited thermal pipeline closure impacting both GMs (competitive pressure) and impact of adverse operating leverage. Management com...
Reduce Bharat Heavy Electricals Ltd For Target Rs.44 - Edelweiss Financial Services
Reduce Bharat Heavy Electricals Ltd For Target Rs.44 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
8/02/2022 9:51:47 AM
Buy Coforge Ltd For Target Rs.7,357 - Edelweiss Financial Services Topline growth; margin expansion Coforge reported Q3FY22 numbers: revenue grew 4.2% QoQ to USD221.6mn, missing our and Street’s estimates of USD224mn and USD225.3mn, respectively. EBITDA margin expanded 90bps QoQ to 19.5%, lower than our estimate of 20.2% but higher than Street’s estimates 18.8%. Net profit rose 25.2% QoQ to INR1.8bn. Organic revenue increased 5.7% QoQ in CC. Management highlighted that it is trying to deliver stronger growth and equally committed to expandi...
Buy Coforge Ltd For Target Rs.7,357 - Edelweiss Financial Services
Buy Coforge Ltd For Target Rs.7,357 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
8/02/2022 9:27:44 AM
Update On Yes Bank Ltd By Edelweiss Financial Services Steady, but underlying portend volatility Yes Bank reported better-than-consensus Q3FY22 PAT of INR2.7bn, but underlying remains vulnerable—indicating the situation is far from being stable. Despite better business traction, asset quality remains a problem of a large magnitude. Highlights: i) Deposits grew 4% QoQ and advances grew 2% QoQ. ii) Though PCR is 65%-plus, a high stressed pool and an uncertain environment do not portend an easy resolution. There are some initial signs of...
Update On Yes Bank Ltd By Edelweiss Financial Services
Update On Yes Bank Ltd By Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
7/02/2022 3:28:25 PM
IT Sector Update - Netflix: Competition affecting growth By Edelweiss Financial Services Netflix: Competition affecting growth Netflix posted decent Q4CY21 numbers—revenue grew 3% QoQ/16% YoY to USD7.71bn, in line with Street’s estimate and its own guidance. Margin contracted 620bp YoY to 8.2%, nevertheless beating Street’s estimate of 7.3%. Subscriber additions at 8.28mn missed the guidance of 8.5mn slightly and came in lower than 8.51mn in Q4CY20. EPS at USD1.33 topped Street’s USD0.82 estimate. Management highlighted that the business was healthy,...
IT Sector Update - Netflix: Competition affecting growth By Edelweiss Financial Services
IT Sector Update - Netflix: Competition affecting growth By Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
4/02/2022 2:03:07 PM
Hold Colgate Palmolive Ltd For Target Rs.1,570 - Edelweiss Financial Services In-line performance Colgate Palmolive’s (Colgate) Q3FY22 revenue (up 3.9% YoY) was in line with our estimate, while EBITDA (up 2.7% YoY) and PAT (up 1.6% YoY) came in ahead of our estimates. Colgate delivered double digit 11.9% revenue and 20.4% EBITDA growth on a two-year basis. Overall, volume grew by about 3% YoY on a base of 5%. Gross margins compressed 316bps due to inflation, while EBITDA margin compressed only 36bps YoY due to cost initiatives and cut in ad spends. Overall,...
Hold Colgate Palmolive Ltd For Target Rs.1,570 - Edelweiss Financial Services
Hold Colgate Palmolive Ltd For Target Rs.1,570 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
4/02/2022 10:12:36 AM
Buy Deepak Nitrite Ltd For Target Rs.3,030 - Edelweiss Financial Services Phenol dented overall profitability Deepak Nitrite (DN) Q3FY22 results came broadly in line with our estimates. DN delivered healthy top-line growth of 39% YoY, driven by pricing gains. However, margins remained under pressure amidst sharp escalation in raw material prices. Higher power cost, logistic challenges and inadequate availability of raw material restricted EBITDA growth to 5%. We recently initiated coverage on DN with BUY (Deepak Nitrite-IC). We believe DN is on solid growth p...
Buy Deepak Nitrite Ltd For Target Rs.3,030 - Edelweiss Financial Services
Buy Deepak Nitrite Ltd For Target Rs.3,030 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
3/02/2022 12:34:24 PM
Buy Macrotech Developers Ltd For Target Rs.1,428 - Edelweiss Financial Services Robust quarter Lodha Developers (Macrotech) posted Q3FY22 pre-sales of ~INR26bn (up 40% YoY/30% QoQ)—its best in past 12 quarters. The company signed six JDA projects with a GDV of ~INR100bn during the quarter. Despite the third wave, it has retained ~INR90bn in pre-sales guidance for FY22. It took an aggregate price hike of ~5% in 9MFY22, and expects the overall price increase in FY22 to be ~6%. The company expects the UK business to repatriate surplus funds over four–six quar...
Buy Macrotech Developers Ltd For Target Rs.1,428 - Edelweiss Financial Services
Buy Macrotech Developers Ltd For Target Rs.1,428 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
3/02/2022 9:37:33 AM
Buy Larsen & Toubro Ltd For Target Rs.2,330 - Edelweiss Financial Services Slow but stable at core; future ready L&T met consensus forecast on top line/EBITDA led by stable core E&C execution, support from non-core profitability, etc. The key highlight was robust INR380bn-plus core order intake, a stable NWC profile and better Q4 prospects—for both business and balance-sheet. 9M results at core E&C reflect ~90% (slow) of FY20 revenue levels with a better recurring EBIT margin profile given job mix/cost focus by L&T at core. Management hig...
Buy Larsen & Toubro Ltd For Target Rs.2,330 - Edelweiss Financial Services
Buy Larsen & Toubro Ltd For Target Rs.2,330 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
2/02/2022 9:36:58 AM
Buy Kotak Mahindra Bank Ltd For Target Rs.2,540 - Edelweiss Financial Services Coming good on growth, sustenance key Kotak Mahindra Bank (KMB) delivered an impressive set of Q3FY22 numbers, reinforcing our view that its earnings momentum would sustain despite the challenging environment. Q3FY22 was marked by sustained strong growth in bank, 8% QoQ; with KMB confident of sustaining the momentum. Asset quality has persistently been better than peers, with controlled stress addition vindicating the bank’s strict risk polices. Performance of other businesses also i...
Buy Kotak Mahindra Bank Ltd For Target Rs.2,540 - Edelweiss Financial Services
Buy Kotak Mahindra Bank Ltd For Target Rs.2,540 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
2/02/2022 9:19:25 AM
Buy Brigade Enterprises Ltd For Target Rs.572 - Edelweiss Financial Services On a strong footing Our interaction with management of Brigade Enterprises (BEL) reinforces our bullish stance on the company. Management indicated that housing demand remains robust, and it is targeting a double-digit sales CAGR for the next few years. BEL has raised prices by ~5% over the last year. It has a conservative stance regarding its annuity business capex (office/retail/hospitality) with focus on cash flow improvement rather than portfolio expansion. With the housing cycle li...
Buy Brigade Enterprises Ltd For Target Rs.572 - Edelweiss Financial Services
Buy Brigade Enterprises Ltd For Target Rs.572 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
1/02/2022 10:39:04 AM
Buy Bharti Airtel Ltd For Target Rs.866 - Edelweiss Financial Services Google deal: Positive but short on details Bharti Airtel (Bharti) has inked a USD1bn deal with Google, wherein Google will acquire 1.28% of equity in Bharti for USD700mn at INR734 share apiece. Google will also invest up to USD300mn towards implementing commercial agreements aimed at accelerating access and digital inclusion across India’s digital ecosystem. Although equity infusion helps reduce debt, the amount isn’t big enough in the overall scheme of things. Strategically...
Buy Bharti Airtel Ltd For Target Rs.866 - Edelweiss Financial Services
Buy Bharti Airtel Ltd For Target Rs.866 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
1/02/2022 10:13:39 AM
Metal and Mining Sector Update - Regaining ground By Edelweiss Financial Services Regaining ground Domestic HRC prices (in traders’ market) after three months of delirium rose by an impressive 2% WoW. Exports realisation also jumped 8% WoW to USD780/t. Longs market continued to witness traction. In Europe, ArcelorMittal is contemplating a hike of EUR50/t for spot HRC price, while Nippon steel has announced a hike of USD100/t for HRC exports in February. In China, we might see the market balance tightening, post the lunar holidays, as strict production restricti...
Metal and Mining Sector Update - Regaining ground By Edelweiss Financial Services
Metal and Mining Sector Update - Regaining ground By Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
31/01/2022 3:15:54 PM
Reduce United Spirits Ltd For Target Rs.815 - Edelweiss Financial Services Right strategy but stiff competition United Spirits’ (USL) Q3FY22 revenue (up 15.9% YoY) came in below our estimates, while EBITDA (up 27.9% YoY) and PAT (up 26.6% YoY) came in ahead of our estimates. As we had highlighted, ad spends are up sharply (up 26.3% YoY) on the back of rising competitive intensity. Overall volume growth was 3.7% YoY. The P&A volumes grew 7.9% YoY (up 4.2% on 2-year CAGR basis). Overall, we like USL’s new strategic direction; however intensifying...
Reduce United Spirits Ltd For Target Rs.815 - Edelweiss Financial Services
Reduce United Spirits Ltd For Target Rs.815 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
31/01/2022 9:53:12 AM
Buy SRF Ltd For Target Rs.2,744 - Edelweiss Financial Services Chemical segment boosts earnings SRF posted strong results in Q3FY22 (revenue/EBITDA/PAT up by 56% YoY each), driven by outperformance in all the segments. Higher prices in refrigerant gases and chloromethane boosted overall margins in the chemical business (EBIT margins up 840bps YoY to 29.4%) while packaging film and technical textile margins were stable. Management shared an encouraging outlook for Q4FY22, driven by strong demand in refrigerant gases and robust growth in speciality c...
Buy SRF Ltd For Target Rs.2,744 - Edelweiss Financial Services
Buy SRF Ltd For Target Rs.2,744 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
31/01/2022 9:19:22 AM
IT Sector Update - Microsoft: Giant delivers robust growth By Edelweiss Financial Services Microsoft: Giant delivers robust growth Microsoft delivered robust Q2FY22 numbers, yet again – revenue grew 20% YoY to USD51.7bn, well ahead of Street’s estimate of USD50.9bn. Operating income grew 24% YoY to USD22.2bn. EPS at USD2.48 also surpassed Street’s expectation of USD2.3 per share. The company’s CEO stated that since tech as a percentage of global GDP continues to increase, Microsoft is innovating and investing across diverse and growing markets. It is v...
IT Sector Update - Microsoft: Giant delivers robust growth By Edelweiss Financial Services
IT Sector Update - Microsoft: Giant delivers robust growth By Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
29/01/2022 11:30:05 AM
Buy Pidilite Industries Ltd For Target Rs.2,980 - Edelweiss Financial Services Margins under severe pressure Pidilite Industries (PIDI) posted Q3FY22 consolidated revenue (up 24% YoY) and EBITDA (down 14.3% YoY) ahead of our estimates. On a twoyear basis, consolidated revenue and EBITDA were up 48% and 18.5%, respectively. Overall volume and mix grew 9.4% YoY. Consumer and bazaar sales grew 22.5% YoY (volume and mix up 9% YoY), led by growth across all categories. B2B segment grew 30.2% YoY, led by 13% volume growth. Gross and EBITDA margin saw 1117bps YoY and 861bps...
Buy Pidilite Industries Ltd For Target Rs.2,980 - Edelweiss Financial Services
Buy Pidilite Industries Ltd For Target Rs.2,980 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
29/01/2022 11:01:37 AM
Hold Devyani International Ltd For Target Rs.187 - Edelweiss Financial Services A unique combo serving Devyani International (DIL) is the largest operator of KFC (~60% of revenues) and Pizza Hut (PH) (~30%) in India. Post consolidating territories/rights for KFC and PH, DIL is revamping these brands to realize full potential via i) improving store economics; ii) increasing delivery share and iii) scaling-up in store addition, something the formats had missed over FY15-20. Signs of these initiatives have been visible over the last one year, with DIL outpacing its pe...
Hold Devyani International Ltd For Target Rs.187 - Edelweiss Financial Services
Hold Devyani International Ltd For Target Rs.187 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
29/01/2022 10:19:34 AM
Buy Finolex Industries Ltd For Target Rs.258 - Edelweiss Financial Services Weak results on volatile PVC prices * Finolex Industries (FIL) reported weak set of numbers in Q3FY22. This could be attributed to decline in volumes resulting from destocking at the dealer/distributor level due to fluctuation in PVC resin prices and COVID’s 3rd wave as well as extended rainfall-impacted agri pipe demand. FIL’s revenue/EBITDA/PAT declined by ~6%/30%/32% YoY, as expected. Revenue/EBITDA/PAT were lower than our estimates by ~3%/8%/9%, respectively. * Gross Mar...
Buy Finolex Industries Ltd For Target Rs.258 - Edelweiss Financial Services
Buy Finolex Industries Ltd For Target Rs.258 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
29/01/2022 9:38:52 AM
Hold CEAT Ltd For Target Rs.1,214 - Edelweiss Financial Services Weak replacement behind big miss CEAT reported Q3FY22 EBITDA of INR1.3bn, 51% below estimate. This was driven by weaker-than-expected replacement demand. Persistent raw material pressure also impacted the performance. We believe the weakness in replacement demand is also due to base catching up industry-wide. This, in our view, would have impact on FY23 mix as OEM volumes recover across segments Accordingly, we are slashing FY23E EPS by 23% to INR83, factoring in lower volume and an adv...
Hold CEAT Ltd For Target Rs.1,214 - Edelweiss Financial Services
Hold CEAT Ltd For Target Rs.1,214 - Edelweiss Financial Services
Source: Edelweiss Financial Services Ltd
26/01/2022 10:49:06 AM