Crompton Greaves. Institutional Equities. 4QFY15 Result Update ACCUMULATE. Overseas Losses Continue; More Business Exits Likely
|
|
- Emery Potter
- 5 years ago
- Views:
Transcription
1 4QFY15 Result Update Crompton Greaves 29 May 2015 Reuters: CROM.BO; Bloomberg: CRG IN Overseas Losses Continue; More Business Exits Likely The 4QFY15 performance of Crompton Greaves (CGL) was below expectation on the profitability front owing to sustained losses at overseas operations. However, close on the heels of sale of consumer products business, CGL announced that it has received non-binding proposals from reputed international entities to acquire its European, North American and Indonesian business in power systems segment. CGL will evaluate these proposals, but has clarified that it is in line with strategic intent of focusing on profitable India operations as well as global automation business. CGL has been unable to turn around its international power systems segment in the past four years (see Exhibit 5) and exiting it may aid overall financial health of the company. However, we will reserve our verdict until the details of the transaction are disclosed (as only a part of the international business will be hived off), future business continuity plans are announced (as the product portfolio of CGL has technological dependence on international operations, especially European) and valuation of the deal is known (divestment of consumer products business took place at a lower-than-expected valuation). We have retained Accumulate rating and a target price of Rs184 on CGL, valuing its consumer entity at Rs93/share and non-consumer business at Rs91/share. 4QFY15 result overview: CGL posted consolidated revenue of Rs38bn, in line with estimate. Top-line was driven by a healthy 19% YoY rise in revenue of consumer products business (24% of total revenue). EBITDA fell 22% YoY to Rs1.5bn as international power systems business (41% of total revenue) posted an operating loss of 2.8%. With lower other income, core PAT stood at only Rs412mn, below our/bloomberg consensus estimate of Rs755mn/Rs802mn, respectively. However, impacted by MTM (mark-to-market) forex loss of Rs448mn as well as several exceptional items (project costs write-offs, litigation and warranty claims), CGL reported a net loss of Rs2bn for the quarter. Order book moderates: Consolidated order inflow rose 4% YoY to Rs26bn in 4QFY15, with India accounting for 56% of the order inflow, while international markets accounted for a 44% share. Power systems segment registered order inflow of Rs20.5bn (79% of total order inflow) while industrial systems segment accounted for the balance Rs5.5bn. Order backlog fell 18% YoY to Rs76bn, the lowest in the past 14 quarters, partly impacted by euro depreciation. The order backlog-to-ttm sales ratio was weak at 0.54x. India accounted for 46% of its order book, while overseas markets contributed 54%. Key margin drivers: Domestic power systems (driven by exports and EHV transmission) and consumer products segment (revenue from fans up 17% and pumps up 13% YoY) continues to be key margin drivers, with EBIT margin of 8.3% and 13.4%, respectively. Collectively, both the segments constituted 44% of total consolidated revenue. Domestic industrial systems margin was maintained at 10.1%. However, international power system and industrial system business continued to suffer losses with EBIT margin of (2.8)% and (0.7%), respectively. ACCUMULATE Sector: Capital Goods CMP: Rs166 Target Price: Rs184 Upside: 11% Chirag Muchhala chirag.muchhala@nirmalbang.com Key Data Current Shares O/S (mn) Mkt Cap (Rsbn/US$bn) 103.9/ Wk H / L (Rs) 231/145 Daily Vol. (3M NSE Avg.) 3,049,721 Price Performance (%) 1 M 6 M 1 Yr Crompton Greaves (1.0) (13.1) (11.2) Nifty Index 0.4 (3.1) 13.5 Source: Bloomberg Y/E March (Rsmn) (consolidated) 4QFY14 3QFY15 4QFY15 YoY (%) QoQ (%) FY14 FY15 YoY (%) Revenue (net) 38,061 33,332 38, , , Raw material costs 25,282 22,918 25, ,353 95, Staff costs 5,079 4,838 5,042 (0.7) ,521 19, Other expenses 5,821 4,055 5,598 (3.8) ,322 18,466 (4.4) EBITDA 1,880 1,522 1,469 (21.8) (3.5) 6,120 6, EBITDAM (%) Depreciation (12.7) (6.4) 2,621 2,620 - Interest costs (2.3) , Other income (77.5) (22.8) 1,491 1,274 (14.5) PBT 1, (56.7) (10.2) 4,023 4, Tax (62.6) (56.1) 2,361 2,220 (6.0) Share from associates & minority interest (177) (143) 30 - Exceptional items 1 2,671 (2,397) Reported net profit 638 2,743 (1,986) (411.1) (172.4) 2,443 2,093 (14.3) Reported NPM (%) (5.2) Reported EPS (Rs) (3.2) (412.3) (172.4) (14.0) Source: Company, Nirmal Bang Research Please refer to the disclaimer towards the end of the document.
2 1QFY10 2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 4QFY14 1QFY15 2QFY15 3QFY15 4QFY15 Exhibit 1: Financial summary (consolidated) Net sales 120, , , , ,475 EBITDA 3,832 6,120 6,424 9,183 11,065 Adjusted net profit 846 2,443 2,093 4,691 6,074 Adjusted EPS (Rs) EPS growth (%) (77.4) (14.3) EBITDA margin (%) P/E (x) P/BV (x) EV/EBITDA (x) Dividend yield (%) RoCE (%) RoE (%) Source: Company, Nirmal Bang Research Exhibit 2: Segment-wise snapshot (consolidated) Y/E March 4QFY14 3QFY15 4QFY15 YoY (%) QoQ (%) FY14 FY15 YoY (%) Revenue (Rsmn) Power systems 25,181 20,666 23,503 (6.7) ,361 85, Consumer products 7,599 7,232 9, ,985 32, Industrial systems 4,590 4,544 4, ,574 18,409 (0.9) Revenue mix (%) Power systems Consumer products Industrial systems EBIT (Rsmn) Power systems 1, (81.5) (32.2) 2,341 1,349 (42.4) Consumer products , ,375 4, Industrial systems ,282 1, EBIT margin (%) Power systems Consumer products Industrial systems Source: Company, Nirmal Bang Research Exhibit 3: Consolidated order inflow, earnings visibility (Rsbn) (x) Order intake (Rsbn) (LHS) Order backlog to TTM sales (RHS) Source: Company, Nirmal Bang Research 2 Crompton Greaves
3 1QFY12 2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14 2QFY14 3QFY14 Apr-06 4QFY14 Oct-06 1QFY15 Apr-07 2QFY15 Oct-07 3QFY15 Apr-08 4QFY15 Oct-08 Apr-09 Oct-09 1QFY11 2QFY11 Apr-10 3QFY11 Oct-10 4QFY11 1QFY12 Apr-11 2QFY12 Oct-11 3QFY12 Apr-12 4QFY12 1QFY13 Oct-12 2QFY13 May-13 3QFY13 4QFY13 Nov-13 1QFY14 May-14 2QFY14 3QFY14 Nov-14 4QFY14 May-15 1QFY15 2QFY15 3QFY15 4QFY15 Exhibit 4: Segment-wise quarterly EBIT margin trend (%) Exhibit 5: EBIT margin of international power system business (%) (5) 3 (10) (15) Domestic power systems Industrial systems Consumer products Source: Company, Nirmal Bang Research Source: Company, Nirmal Bang Research Exhibit 6: Actual performance versus our estimates, Bloomberg consensus estimates 4QFY15 (Rsmn) Actual Our estimate Deviation (%) Bloomberg cons. est. Deviation (%) Revenue 38,081 37, ,531 (1.2) EBITDA 1,469 1,916 (23.3) 2,039 (27.9) Reported PAT (1,986) 755 NA 802 NA Adjusted PAT* (45.5) 802 (48.7) * Note Adjusted PAT excludes exceptional items Source: Company, Bloomberg, Nirmal Bang Research Exhibit 7: Change in our earnings estimates (consolidated) (Rsmn) Old New Variation (%) Y/E March FY16E FY17E FY16E FY17E FY16E FY17E Revenue 155, , , ,475 (3.4) (4.0) EBITDA 9,209 11,203 9,183 11,065 (0.3) (1.2) PAT 4,740 6,071 4,691 6,074 (1.0) 0.1 Source: Nirmal Bang Research Exhibit 8: P/E trend (x) Median P/E = 19.8x 0 P/E Source: Company, Nirmal Bang Research Median P/E 3 Crompton Greaves
4 Financial statements (consolidated) Exhibit 9: Income statement Net sales 120, , , , ,475 % growth Raw material costs 83,461 91,353 95,305 99, ,875 Staff costs 17,401 19,521 19,936 21,742 23,994 Other overheads 16,252 19,322 18,466 19,307 20,541 Total expenditure 117, , , , ,410 EBITDA 3,832 6,120 6,424 9,183 11,065 % growth (52.3) EBITDA margin (%) Other income 1,000 2,415 1,526 1,799 2,236 Interest costs ,047 1,101 1,079 Depreciation 2,029 2,621 2,620 2,881 3,156 Profit before tax 1,848 4,947 4,283 7,001 9,066 Tax 1,009 2,361 2,220 2,310 2,992 Minority interest (11) (7) (14) - - Profit from associates (4) (150) Adjusted / Core PAT 846 2,443 2,093 4,691 6,074 Extra-ordinary items (1,207) Reported net profit (361) 2,443 2,093 4,691 6,074 Adjusted PAT margin (%) Adjusted EPS (Rs) % growth (77.4) (14.3) Source: Company, Nirmal Bang Research Exhibit 11: Balance sheet Share capital 1,283 1,253 1,253 1,253 1,253 Reserves 34,332 35,192 36,906 40,282 45,042 Net worth 35,615 36,446 38,159 41,536 46,296 Minority interest Short-term loans 2,965 5,608 6,226 6,226 6,226 Long-term loans 15,550 16,323 19,039 18,539 18,039 Total loans 18,515 21,930 25,265 24,765 24,265 Deferred tax liability (1,681) (1,532) (1,110) (1,110) (1,110) Total liabilities 52,544 56,962 62,517 65,393 69,653 Gross block 40,851 47,644 48,379 53,379 58,379 Depreciation 22,292 26,825 29,445 32,326 35,482 Net block 18,559 20,820 18,933 21,053 22,897 Capital work-in-progress 2,313 2,184 1,500 1,500 1,500 Goodwill 9,792 11,588 9,468 9,468 9,468 Investments 7,908 2,989 4,414 4,414 4,414 Inventories 16,367 16,714 14,552 16,433 18,134 Debtors 31,605 35,913 37,318 40,671 45,336 Cash 5,834 8,150 6,893 5,254 6,906 Other current assets 6,002 8,395 13,722 14,603 16,095 Total current assets 59,807 69,171 72,485 76,960 86,471 Creditors 24,618 27,737 25,281 27,319 31,608 Other current liabilities & provisions 21,216 22,053 19,002 20,682 23,488 Total current liabilities 45,834 49,790 44,283 48,001 55,096 Net current assets 13,973 19,381 28,202 28,959 31,375 Total assets 52,544 56,962 62,517 65,393 69,653 Source: Company, Nirmal Bang Research Exhibit 3: Exhibit 10: Cash flow EBIT 1,802 3,499 3,804 6,302 7,909 (Inc.)/dec. in working capital 2,047 (3,093) (10,077) (2,396) (764) Cash flow from operations 3, (6,273) 3,906 7,145 Other income 1,000 2,415 1,526 1,799 2,236 Depreciation 2,029 2,621 2,620 2,881 3,156 Interest paid (-) (955) (967) (1,047) (1,101) (1,079) Tax paid (-) (2,177) (2,211) (1,799) (2,310) (2,992) Dividends paid (-) (897) (876) (584) (1,314) (1,314) Net cash from operations 2,850 1,389 (5,556) 3,861 7,152 Capital expenditure (-) (10,117) (6,549) 2,070 (5,000) (5,000) Net cash after capex (7,268) (5,161) (3,486) (1,139) 2,152 Inc./(dec.) in short-term borrowing (721) 2, Inc./(dec.) in long-term borrowing 9, ,717 (500) (500) Inc./(dec.) in total borrowings 8,666 3,415 3,335 (500) (500) Inc./(dec.) in investments (44) 4,919 (1,425) - - Minority interest (62) Equity issue/(buyback) - (30) Cash from financial activities 8,561 8,328 1,995 (500) (500) Others (435) (851) Opening cash balance 4,976 5,834 8,150 6,893 5,254 Closing cash balance 5,834 8,150 6,893 5,254 6,906 Change in cash balance 858 2,316 (1,257) (1,639) 1,652 Source: Company, Nirmal Bang Research Exhibit 4: Exhibit 12: Key ratios Y/E March FY13 FY14 FY15 FY16E FY17E Per share (Rs) EPS Book value Valuation (x) P/E P/BV EV/EBITDA EV/sales Return ratios (%) RoCE RoE RoIC Profitability ratios (%) EBITDA margin EBIT margin PAT margin Turnover ratios Total asset turnover ratio (x) Debtor days Inventory days Creditor days Solvency ratios (x) Debt-equity Interest coverage Source: Company, Nirmal Bang Research 4 Crompton Greaves
5 Rating track Date Rating Market price (Rs) Target price (Rs) 27 January 2012 Sell January 2012 Sell February 2012 Sell April 2012 Sell May 2012 Buy July 2012 Sell July 2012 Hold October 2012 Hold November 2012 Sell January 2013 Sell January 2013 Sell January 2013 Sell May 2013 Hold June 2013 Buy July 2013 Buy August 2013 Buy October 2013 Buy November 2013 Sell January 2014 Sell January 2014 Buy June 2014 Hold July 2014 Accumulate July 2014 Accumulate August 2014 Accumulate October 2014 Accumulate October 2014 Accumulate January 2015 Accumulate February 2015 Accumulate April 2015 Accumulate April 2015 Accumulate Crompton Greaves
6 Disclaimer Stock Ratings Absolute Returns BUY > 15% ACCUMULATE -5% to15% SELL < -5% This report is published by Nirmal Bang s Research desk. Nirmal Bang has other business units with independent research teams separated by Chinese walls, and therefore may, at times, have different or contrary views on stocks and markets. This report is for the personal information of the authorised recipient and is not for public distribution. This should not be reproduced or redistributed to any other person or in any form. This report is for the general information for the clients of Nirmal Bang Equities Pvt. Ltd., a division of Nirmal Bang, and should not be construed as an offer or solicitation of an offer to buy/sell any securities. We have exercised due diligence in checking the correctness and authenticity of the information contained herein, so far as it relates to current and historical information, but do not guarantee its accuracy or completeness. The opinions expressed are our current opinions as of the date appearing in the material and may be subject to change from time to time without notice. Nirmal Bang or any persons connected with it do not accept any liability arising from the use of this document or the information contained therein. The recipients of this material should rely on their own judgment and take their own professional advice before acting on this information. Nirmal Bang or any of its connected persons including its directors or subsidiaries or associates or employees or agents shall not be in any way responsible for any loss or damage that may arise to any person/s from any inadvertent error in the information contained, views and opinions expressed in this publication. Nirmal Bang Equities Private Limited (hereinafter referred to as NBEPL ) is a registered Member of National Stock Exchange of India Limited, Bombay Stock Exchange Limited. NBEPL is in the process of making an application with SEBI for registering as a Research Entity in terms of SEBI (Research Analyst) Regulations, NBEPL or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in the company covered by Analyst. NBEPL or its associates/analyst has not received any compensation from the company covered by Analyst during the past twelve months. NBEPL /analyst has not served as an officer, director or employee of company covered by Analyst and has not been engaged in market-making activity of the company covered by Analyst. The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision. Access all our reports on Bloomberg, Thomson Reuters and Factset. Team Details: Name Id Direct Line Rahul Arora CEO rahul.arora@nirmalbang.com - Girish Pai Head of Research girish.pai@nirmalbang.com / 18 Dealing Ravi Jagtiani Dealing Desk ravi.jagtiani@nirmalbang.com , Pradeep Kasat Dealing Desk pradeep.kasat@nirmalbang.com /8101, Michael Pillai Dealing Desk michael.pillai@nirmalbang.com /8103, Umesh Bharadia Dealing Desk umesh.bharadia@nirmalbang.com Nirmal Bang Equities Pvt. Ltd. Correspondence Address B-2, 301/302, Marathon Innova, Nr. Peninsula Corporate Park, Lower Parel (W), Mumbai Board No. : /1; Fax. : Crompton Greaves
Bajaj Electricals. Institutional Equities. 3QFY15 Result Update
3QFY15 Result Update Institutional Equities Bajaj Electricals 13 February 2015 Reuters: BJEL.BO; Bloomberg: BJE IN Final Phase Of Transition Pain; Retain Buy Bajaj Electricals (BJE) posted 3QFY15 revenue
More informationPower Mech Projects. Institutional Equities. 2QFY18 Result Update BUY. Strong Business Scalability Likely; Retain Buy
2QFY18 Result Update Power Mech Projects 23 November 217 Reuters: POMP.BO; Bloomberg: POWM IN Strong Business Scalability Likely; Retain Buy Power Mech Projects (PMPL) posted 2QFY18 consolidated revenues
More informationInstitutional Equities
3QFY15 Result Update Institutional Equities GlaxoSmithKline Consumer Healthcare Reuters: GLSM.BO; Bloomberg: SKB IN 4 February 2015 Price Hike Leads To Sales Growth Glaxo SmithKline Consumer Healthcare
More informationTimken India. Institutional Equities. 4QFY16 Result Update BUY. Margin Expansion Leads To Huge Growth In Profit; Retain Buy
4QFY16 Result Update Institutional Equities Timken India 23 May 2016 Reuters: TMKN.BO; Bloomberg: TIMK IN Margin Expansion Leads To Huge Growth In Profit; Retain Buy Timken India (TIL), the leading manufacturer
More informationInstitutional Equities
2QFY18 Result Update Institutional Equities KCP 5 December 2017 Reuters: KCP.BO; Bloomberg: KCPL IN Other Income Drives PAT; High International Coal Price Is Cause For Concern KCP reported a weak set of
More informationCadila Healthcare. Institutional Equities. 3QFY15 Result Update UNDER REVIEW. Stable Performance. Sector: Pharmaceuticals CMP: Rs1,514
3QFY15 Result Update Institutional Equities Cadila Healthcare 11 February 2015 Reuters: CADI.BO; Bloomberg: CDH IN Stable Performance Cadila Healthcare s (CHL) 3QFY15 earnings were in line with our expectations
More informationSwaraj Engines. Institutional Equities. 2QFY18 Result Update ACCUMULATE
2QFY18 Result Update Institutional Equities Swaraj Engines 13 November 2017 Reuters: SWAR.BO; Bloomberg: SWE IN Strong Realisation Drives Earnings Growth Swaraj Engines (SEL) 2QFY18 earnings were 5% above
More informationCrisil. Institutional Equities. 3QCY17 Result Update ACCUMULATE. Weak SME Rating Revenues & Currency Movement Play Spoilsport
3QCY17 Result Update Institutional Equities Crisil 18 October 2017 Reuters: CRSL.BO; Bloomberg: CRISIL IN Weak SME Rating Revenues & Currency Movement Play Spoilsport Crisil s 3QCY17 performance was below
More informationPunjab National Bank
4QFY15 Result Update Institutional Equities Punjab National Bank 11 May 2015 Reuters: PNB.BO; Bloomberg: PNB IN Asset Quality Disappointment Continues Punjab National Bank (PNB) posted dismal 4QFY15 performance,
More informationE&P To Stay Strong; Consumer Segment To Revive
Management Meet Update Institutional Equities Bajaj Electricals 30 August 2017 Reuters: BJEL.BO; Bloomberg: BJE IN E&P To Stay Strong; Consumer Segment To Revive We had a meeting with the management of
More informationPunjab National Bank
1QFY16 Result Update Institutional Equities Punjab National Bank 29 July 2015 Reuters: PNB.BO; Bloomberg: PNB IN Some Respite On Asset Quality Front Punjab National Bank (PNB) reported moderate 1QFY16
More informationThermax. Institutional Equities. 3QFY18 Result Update. Healthy Execution, But Margins Disappoint SELL
3QFY18 Result Update Institutional Equities Thermax 8 February 2018 Reuters: THMX.BO; Bloomberg: TMX IN Healthy Execution, But Margins Disappoint Thermax posted healthy execution in 3QFY18 with standalone
More informationCARE Ratings. Institutional Equities. 2QFY18 Result Update BUY
2QFY18 Result Update Institutional Equities CARE Ratings 17 November 217 Reuters: CREI.BO; Bloomberg: CARE IN Mixed Performance CARE Ratings (CARE) reported an increase of 12.3% in revenues for 2QFY18
More informationPower Mech Projects. Institutional Equities. 2QFY19 Result Update BUY. Strong Order Book Drives Robust Execution
2QFY19 Result Update Power Mech Projects 21 November 218 Reuters: POMP.BO; Bloomberg: POWM IN Strong Order Book Drives Robust Execution Power Mech Projects (PMPL) posted 2QFY19 consolidated revenues of
More informationVoltas. Institutional Equities. 1QFY19 Result Update. EMPS Shines, UCP Proves Its Mettle Again ACCUMULATE
1QFY19 Result Update Voltas 13 August 218 Reuters: VOLT.BO; Bloomberg: VOLT IN EMPS Shines, UCP Proves Its Mettle Again Voltas reported consolidated revenues of Rs21.5bn for 1QFY19, up 11% YoY and 5%/6%
More information9,251 7,812 8, NIM
4QFY15 Result Update Institutional Equities IndusInd Bank 17 April 2015 Reuters: INBK.BO; Bloomberg: IIB IN Yet Another Robust Performance IndusInd Bank s 4QFY15 profit beat our estimate by 12%. Its bottom-line
More informationInstitutional Equities
Company Update Institutional Equities Dr. Reddy s Laboratories 5 September 2017 Reuters: REDY.BO; Bloomberg: DRRD IN Suboxone Generic Opportunity To Be Lucrative, Can Sustain For Longer Time The district
More informationInstitutional Equities
Management Meet Update Institutional Equities Kaya Reuters: KAYA.NS; Bloomberg: KAYA IN We interacted with the management of Kaya at an investor conference held by us recently. Following are the key takeaways:
More information9,807 8,007 9, NIM
1QFY16 Result Update Institutional Equities IndusInd Bank Reuters: INBK.BO; Bloomberg: IIB IN Yet Another Stellar Performance IndusInd Bank s 1QFY16 profit beat our estimate by 4%. Its bottom-line grew
More informationEBITDA 5,019 4,211 5, EBITDA
Result Update Institutional Equities Dalmia Bharat Reuters: DALA.BO; Bloomberg: DBEL IN Outperformance Likely To Continue Dalmia Bharat (DBL) reported a good set of numbers for, given the challenging environment
More information3,746 2,551 3, NIM
4QFY17 Result Update Institutional Equities Capital First 11 May 2017 Reuters: CAPF.BO; Bloomberg: CAFL IN Net Interest Income Up, But Offset By Elevated Credit Costs Although the net interest income or
More informationGillette India. Institutional Equities. 1QFY18 Result Update
1QFY18 Result Update Institutional Equities Gillette India 14 November 2017 Reuters: GILE.NS; Bloomberg: GILL IN Robust Growth In Operating Margin Gillette India s or GIL s overall top-line performance
More informationMuthoot Finance. Institutional Equities. 2QFY18 Result Update BUY
2QFY18 Result Update Institutional Equities Muthoot Finance 10 November 2017 Reuters: MUTT.BO; Bloomberg: MUTH IN Gold Loan Business Really Glitters Strong profitability numbers of Muthoot Finance (MFL)
More informationVoltas. Institutional Equities. Management Meet Update ACCUMULATE. Sector: Capital Goods CMP: Rs309 Target Price: Rs325 Upside: 5% 23 December 2016
Management Meet Update Institutional Equities Voltas Reuters: VOLT.BO; Bloomberg: VOLT IN We had a meeting with the management of Voltas recently to get the latest business update. While the management
More informationGillette India. Institutional Equities. 2QFY19 Result Update BUY. Marketing Investments Mask Improved Top-line Performance
2QFY19 Result Update Gillette India 13 February 2019 Reuters: GILE.NS; Bloomberg: GILL IN Marketing Investments Mask Improved Top-line Performance Gillette India s (GILL) 2QFY19 operating and net earnings
More informationInstitutional Equities
4QFY18 Result Update Institutional Equities Atul Auto 30 May 2018 Reuters: ATUL.BO; Bloomberg: ATUL IN Higher Expenses Mar Profitability Atul Auto s (AAL) 4QFY18 earnings missed our expectations on account
More informationSwiss Glascoat Equipments
Management Meet Update Institutional Equities Swiss Glascoat Equipments 28 December 17 Reuters: SWGE.BO; Bloomberg: SWGE IN We had a meeting with the management of Swiss Glascoat Equipments (SGEL) recently
More informationLa Opala RG. Institutional Equities. 4QFY17 Result Update UNDER REVIEW. Revenues Soar, But Margins Take A Hit. Sector: Tableware CMP: Rs536
4QFY17 Result Update La Opala RG 11 May 217 Reuters: LAOP.BO; Bloomberg: LOG IN Revenues Soar, But Margins Take A Hit La Opala RG (LORL) reported revenues of Rs761mn for 4QFY17, up 41% YoY. The stellar
More informationJamna Auto Industries
2QFY19 Result Update Institutional Equities Jamna Auto Industries Reuters: JMNA.NS; Bloomberg: JMNA IN Performance Below Expectations; Retain Buy Due To Strong Outlook Jamna Auto s 2QFY19 earnings were
More informationV-Guard Industries. Institutional Equities. Conference-call Update BUY. Sector: White Goods CMP: Rs914 Target Price: Rs1,109 Upside: 21%
Conference-call Update Institutional Equities V-Guard Industries 7 November 214 Reuters: VGUA.NS; Bloomberg: VGRD IN We hosted the conference-call of V-Guard Industries (VIL) on 5 November 214 to discuss
More informationInstitutional Equities
2QFY13 Result Update Institutional Equities Reliance Infrastructure 7 November 2012 Reuters: RELIN.BO; Bloomberg: RELI IN Project Execution On Track Reliance Infrastructure reported revenue decline of
More informationColgate-Palmolive (India)
Result Update Colgate-Palmolive (India) 27 July 218 Reuters: COLG.BO; Bloomberg: CLGT IN Tough Times Continue Colgate-Palmolive (India) or CLGT reported a mixed earnings performance in. Volume and revenue
More informationTD Power Systems. Institutional Equities. Company Update BUY
Company Update Institutional Equities TD Power Systems 1 September 215 Reuters: TDPS.BO; Bloomberg: TDPS IN On The Cusp Of A Turnaround; Reiterate Buy We believe TD Power Systems (TDPS) is on the cusp
More informationSun Pharmaceutical Industries
Event Update Institutional Equities Sun Pharmaceutical Industries Reuters: SUN.BO; Bloomberg: SUNP IN Surprise Audit Of Halol Unit By USFDA - Outcome Is Key As per a report in the Business Standard newspaper
More informationIndian Oil Corporation
3QFY18 Result Update Institutional Equities Indian Oil Corporation 1 February 2018 Reuters: IOC.BO; Bloomberg: IOCL IN Earnings Outperformance On Account Of Inventory Gains Indian Oil Corporation (IOCL)
More informationMuthoot Finance. Institutional Equities. 1QFY18 Result Update. Gold Loan Business Continues To Glitter BUY. 10 August 2017
1QFY18 Result Update Institutional Equities Muthoot Finance 10 August 2017 Reuters: MUTT.BO; Bloomberg: MUTH IN Gold Loan Business Continues To Glitter Strong profitability numbers of Muthoot Finance (MFL)
More informationKEC International. Institutional Equities. Management Meet Update BUY. On Course Towards Recovery In Operating Margin
Management Meet Update Institutional Equities KEC International Reuters: KECL.BO; Bloomberg: KECI IN On Course Towards Recovery In Operating Margin We had a meeting with the management of KEC International
More information93,707 77,814 90, NIM
1QFY18 Result Update Institutional Equities HDFC Bank Reuters: HDBK.BO; Bloomberg: HDFCB IN Higher Fee Income Offsets Higher Provisioning HDFC Bank s net interest income or NII grew 20% in 1QFY18 driven
More informationBata India. Institutional Equities. Management Meet Update. On Right Track ACCUMULATE. Sector: Retail CMP: Rs692 Target Price: 696 Upside: 1%
Management Meet Update Bata India Reuters: BATA.BO; Bloomberg: BATA IN On Right Track We had a meeting recently with Mr. R. K. Gupta, Chief Financial Officer (CFO) of Bata India (BIL) to understand recent
More informationSanofi India. Institutional Equities. 3QCY18 Result Update. Robust Performance BUY
3QCY18 Result Update Institutional Equities Sanofi India Reuters: SANO.BO; Bloomberg: SANL IN Robust Performance Sanofi India s revenues in 3QCY18 stood at Rs7,438mn which were above our/consensus estimate
More informationJBF Industries. Institutional Equities. 1QFY16 Result Update BUY. Healthy Gross Profit Growth, But Other Costs Higher; Retain Buy
1QFY16 Result Update Institutional Equities JBF Industries 12 August 215 Reuters: JBFI.BO; Bloomberg: JBF IN Healthy Gross Profit Growth, But Other Costs Higher; Retain Buy Following the decline in crude
More informationDalmia Bharat Enterprises
Result Update Dalmia Bharat Enterprises 1 November 218 Reuters: DALA.BO; Bloomberg: DBEL IN Performance In Line; Stock Under Review Post Odisha Cement Amalgamation Dalmia Bharat Enterprises (DBEL) reported
More informationITC. Institutional Equities. 4QFY18 Result Update. Tracking Expectations ACCUMULATE. Sector: FMCG CMP: Rs286 Target Price: Rs290 Upside: 1%
4QFY18 Result Update Institutional Equities ITC 17 May 2018 Reuters: ITC.NS; Bloomberg: ITC IN Tracking Expectations ITC s growth in 4QFY18 was modest and in line with expectations. On the revenue side,
More informationKEC International. Institutional Equities. Management Meet Update. Healthy Order Inflow Traction Expected To Continue BUY
Management Meet Update Institutional Equities KEC International Reuters: KECL.BO; Bloomberg: KECI IN Healthy Order Inflow Traction Expected To Continue We had a meeting with the management of KEC International
More informationAtul Auto. Institutional Equities. Management Meet Update ACCUMULATE. Sector: Automobile CMP: Rs445 Target Price: Rs489 Upside: 10% 23 August 2017
Management Meet Update Atul Auto 23 August 2017 Reuters: ATUL.BO; Bloomberg: ATUL IN We had a meeting with the management of Atul Auto (AAL) recently to gauge its performance in the aftermath of a relatively
More informationManappuram Finance. Institutional Equities. 3QFY17 Result Update BUY
3QFY17 Result Update Institutional Equities Manappuram Finance 9 February 2017 Reuters: MNFL.BO; Bloomberg: MGFL IN Profitability Beats Expectations Amid Some Spike In Loan Delinquency Strong Profit &
More information26 October 2018 Reuters: MRTI.BO; Bloomberg: MSIL IN
2QFY19 Result Update Maruti Suzuki India 26 October 2018 Reuters: MRTI.BO; Bloomberg: MSIL IN Better-than-expected Margins; Retain Buy Maruti Suzuki India (MSIL) s 2QFY19 earnings were 18% above our estimate
More informationIndian Oil Corporation
4QFY18 Result Update Institutional Equities Indian Oil Corporation 24 May 2018 Reuters: IOC.BO; Bloomberg: IOCL IN Subdued Earnings Because Of Lower GRM and Higher Expenses Indian Oil Corporation (IOCL)
More informationPunjab National Bank
1QFY18 Result Update Institutional Equities Punjab National Bank 3 August 2017 Reuters: PNB.BO; Bloomberg: PNB IN Asset Quality Continues To Disappoint Punjab National Bank s (PNB) annualised loan slippage
More informationBharat Heavy Electricals
4QFY16 Result Update Bharat Heavy Electricals 30 May 2016 Reuters: BHEL.BO; Bloomberg: BHEL IN Structural Headwinds Persist; Retain Sell Bharat Heavy Electricals (BHEL) posted 4QFY16 revenues of Rs100bn,
More informationEBITDA 5,076 3, , EBITDA
Result Update Ambuja Cements 21 February 218 Reuters: ABUJ.BO; Bloomberg: ACEM IN Healthy Volume Growth, Operating Costs Under Control Ambuja Cements (ACEM) reported a good set of numbers for owing to
More informationLa Opala RG. Institutional Equities. 1QFY18 Result Update
1QFY18 Result Update La Opala RG 31 August 2017 Reuters: LAOP.BO; Bloomberg: LOG IN Flattish YoY Performance La Opala RG (LORL) reported revenues of Rs475mn for 1QFY18, up 0.6% YoY, but significantly below
More informationNestle India. Institutional Equities. 1QCY18 Result Update. Resurgence Continues BUY. Sector: FMCG CMP: Rs8,981 Target Price: Rs10,700 Upside: 19%
1QCY18 Result Update Institutional Equities Nestle India 11 May 218 Reuters: NEST.BO; Bloomberg: NEST IN Resurgence Continues Nestle India (NEST) reported strong overall performance during 1QCY18 driven
More informationInstitutional Equities
1QFY19 Result Update Institutional Equities Aurobindo Pharma 13 August 2018 Reuters: ARBP.NS; Bloomberg: ARBP IN One-offs Impact Margin Aurobindo Pharma (APL) reported 1QFY19 revenues of Rs42,503mn which
More informationFY11 FY12 FY13E FY14E
Plant Visit Note Institutional Equities JBF Industries 10 October 2012 Reuters: JBFI.BO; Bloomberg: JBF IN We paid a visit to the plants of JBF Industries at Silvassa, Dadra & Nagar Haveli and also at
More informationApar Industries. Institutional Equities. Management Meet Update. In Turnaround Mode; Retain Buy BUY
Management Meet Update Institutional Equities Apar Industries Reuters: APAR.BO; Bloomberg: APR IN In Turnaround Mode; Retain Buy We had a meeting with the management of Apar Industries (Apar) recently
More informationIFB Industries. Institutional Equities. 3QFY18 Result Update. Healthy Revenues, Strong Gross Margin; Retain Buy BUY.
3QFY18 Result Update Institutional Equities IFB Industries Reuters: IFBI.BO; Bloomberg: IFBI IN Healthy Revenues, Strong Gross Margin; Retain Buy IFB Industries (IFB) posted a healthy 17% YoY rise in net
More informationState Bank of India. Institutional Equities. 1QFY18 Result Update
1QFY18 Result Update Institutional Equities State Bank of India 14 August 2017 Reuters: SBI.BO; Bloomberg: SBIN IN Merger With Associate Banks Accentuates The Pain State Bank of India s (SBI) annualised
More informationBata India. Institutional Equities. 1QFY19 Result Update BUY
1QFY19 Result Update Institutional Equities Bata India 23 July 2018 Reuters: BATA.BO; Bloomberg: BATA IN Strong Margin Improvement To Drive Consensus EPS Upgrade Bata India s (BIL) YoY net sales growth
More informationBharat Heavy Electricals
2QFY16 Result Update Bharat Heavy Electricals 9 November 2015 Reuters: BHEL.BO; Bloomberg: BHEL IN Losses Mount, Structural Headwinds Persist; Retain Sell Bharat Heavy Electricals (BHEL) posted 2QFY16
More informationInstitutional Equities
1QFY19 Result Update Institutional Equities Dr. Reddy s Laboratories 27 July 2018 Reuters: REDY.BO; Bloomberg: DRRD IN Drug Pipeline In Place, But Regulatory Hurdles Testing Patience Dr. Reddy s Laboratories
More informationNESCO. Institutional Equities. Event Update. Revenues From Bombay Exhibition Centre May Take A Hit BUY
Event Update Institutional Equities NESCO 27 August 2018 Reuters: NSEN.NS; Bloomberg: NSE IN Revenues From Bombay Exhibition Centre May Take A Hit This event update relates to an application made on 14
More informationInstitutional Equities
3QFY18 Result Update Institutional Equities Atul Auto 15 February 2018 Reuters: ATUL.BO; Bloomberg: ATUL IN Higher Expenses Drag Profitability Atul Auto s (AAL) 3QFY18 earnings missed our expectations
More informationInstitutional Equities
1QFY18 Result Update Institutional Equities Cipla 14 August 2017 Reuters: CIPL.NS; Bloomberg: CIPLA IN Gross Margin Improvement Is A Positive Surprise Cipla s revenues in 1QFY18 stood at Rs35,251mn, showing
More informationBharat Heavy Electricals
FY16 (Provisional) Result Update Institutional Equities Bharat Heavy Electricals 8 April 2016 Reuters: BHEL.BO; Bloomberg: BHEL IN Structural Headwinds Persist; Retain Sell The FY16 provisional results
More informationTVS Motor Company. Institutional Equities. 3QFY19 Result Update SELL
3QFY19 Result Update TVS Motor Company 23 January 2019 Reuters: TVSM.BO; Bloomberg: TVSL IN Better-Than-Expected Margins TVS Motor Company s 3QFY19 performance was above our expectations as it reported
More informationEBITDA 6,223 6,511 (4.4) 5, EBITDA
Result Update Institutional Equities Ambuja Cements 26 July 218 Reuters: ABUJ.BO; Bloomberg: ACEM IN Performance Beats Expectations, Sustainability Is Key Challenge Ambuja Cements (ACEM) reported steady
More informationEBITDA 2,503 2,904 (13.8) 2,722 (8.0) EBITDA
1QFY19 Result Update The Ramco Cements 3 August 218 Reuters: TRCE.BO; Bloomberg: TRCL IN Challenging Business Environment Aptly Handled The Ramco Cements (TRCL) reported a stable operating performance
More informationPersistent Systems. Institutional Equities. Management Meet Update SELL. Watson IOT Bet Risk/Reward More Muted Than Anticipated
Management Meet Update Institutional Equities Persistent Systems 22 June 2016 Reuters: PERS.BO; Bloomberg: PSYS IN Watson IOT Bet Risk/Reward More Muted Than Anticipated We had a meeting with Persistent
More informationTata Consultancy Services
4QFY15 Result Update Institutional Equities Tata Consultancy Services Reuters: TCS.BO; Bloomberg: TCS IN 17 April 215 Standalone P/E to crunch; P/E premium will depend on peers Tata Consultancy Services
More informationDabur India. Institutional Equities. 4QFY18 Result Update. Growth Volatility Is Still Fairly High ACCUMULATE
4QFY18 Result Update Institutional Equities Dabur India 3 May 2018 Reuters: DABU.NS; Bloomberg: DABUR IN Growth Volatility Is Still Fairly High Dabur India s (DABUR) consolidated top-line performance in
More informationHindustan Unilever. Institutional Equities. 4QFY18 Result Update
4QFY18 Result Update Institutional Equities Hindustan Unilever 15 May 2018 Reuters: HLL.BO; Bloomberg: HUVR IN Reaping Rewards Of Consistency 4QFY18 was the third consecutive quarter wherein Hindustan
More informationPunjab National Bank
4QFY18 Result Update Institutional Equities Punjab National Bank 16 May 2018 Reuters: PNB.BO; Bloomberg: PNB IN Prompt Corrective Action Looms Punjab National Bank (PNB) reported its 4QFY18 results with
More informationHindustan Unilever. Institutional Equities. 1QFY19 Result Update
1QFY19 Result Update Institutional Equities Hindustan Unilever 17 July 218 Reuters: HLL.BO; Bloomberg: HUVR IN Breakout Growth Hindustan Unilever (HUVR) has delivered strong volume led top-line growth
More informationEicher Motors. Institutional Equities. Management Meet Update BUY. Reuters: EICH.NS; Bloomberg: EIM IN
Management Meet Update Institutional Equities Eicher Motors 17 July 2018 Reuters: EICH.NS; Bloomberg: EIM IN We had a meeting with the management of Eicher Motors (EML) recently. Following are the key
More informationEBITDA 1,548 1,814 (14.7) 1,561 (0.8) EBITDA
Result Update The India Cements 12 November 218 Reuters: ICMN.BO; Bloomberg: ICEM IN Lackluster Performance The India Cements (ICEM) reported a listless operating performance in because of the sustained
More informationDabur India. Institutional Equities. 1QFY19 Result Update
1QFY19 Result Update Institutional Equities Dabur India 2 August 2018 Reuters: DABU.NS; Bloomberg: DABUR IN Consistency Is Key To The Game Dabur India s (DABUR) operating performance in 1QFY19 was better
More informationMangalam Cement. Institutional Equities. 3QFY18 Result Update. Higher Operating costs Hurt Performance BUY
Result Update Mangalam Cement 16 February 2018 Reuters: MGLC.BO; Bloomberg: MGC IN Higher Operating costs Hurt Performance Mangalam Cement (MGC) reported a weak performance for on account of higher operating
More informationHuhtamaki PPL. Institutional Equities. Management Meet Update NOT RATED. CMP: Rs186 Sector: Packaging. 16 September 2014
Management Meet Update Institutional Equities Reuters: HUHT.BO; Bloomberg: HPPL IN We met the management of (formerly Paper Products). After announcement of the acquisition of Positive Packaging by two
More informationDalmia Bharat Enterprises
Result Update Institutional Equities Dalmia Bharat Enterprises Reuters: DALA.BO; Bloomberg: DBEL IN 14 August 218 Listless Performance, But Valuation Premium Continues Dalmia Bharat Enterprises (DBEL)
More informationArvind. Institutional Equities. Event Update BUY
Event Update Institutional Equities Arvind 3 July 2015 Reuters: ARVN.BO; Bloomberg: ARVND IN Arvind Lifestyle Inks Licencing Pact with US-based Aeropostale Arvind s subsidiary, Arvind Lifestyle Brands
More informationSouth Indian Bank. Institutional Equities. 4QFY18 Result Update. Asset Quality Pain To Ease Hereafter BUY. 15 May 2018
4QFY18 Result Update Institutional Equities South Indian Bank 15 May 2018 Reuters: SIBK.BO; Bloomberg: SIB IN Asset Quality Pain To Ease Hereafter South Indian Bank (SBL) reported 4QFY18 results with the
More informationDalmia Bharat Enterprises
Result Update Dalmia Bharat Enterprises Reuters: DALA.BO; Bloomberg: DBEL IN 22 May 218 Healthy Performance Led By Good Volume Growth Dalmia Bharat Enterprises (DBEL) reported a healthy performance for
More informationMold-Tek Packaging. Institutional Equities. Conference Update. Promising Growth Outlook BUY
Conference Update Institutional Equities Mold-Tek Packaging 20 August 2018 Reuters: MOLT.BO; Bloomberg: MTEP IN Promising Growth Outlook We recently interacted with the management of Mold-Tek Packaging
More informationPunjab National Bank
Company Update Punjab National Bank 19 September 2018 Reuters: PNB.BO; Bloomberg: PNB IN Concerns Remain; Assign Accumulate We take Punjab National Bank (PNB) out from Under Review and assign an Accumulate
More informationNatco Pharma. Institutional Equities. 3QFY15 Result Update
3QFY15 Result Update Institutional Equities Natco Pharma 12 February 2015 Reuters: NATP.BO; Bloomberg: NTCPH IN Weak Performance Natco Pharma s (NPL) 3QFY15 performance was below expectations with reported
More informationEBITDA 1,585 1,917 (17.3) 1,673 (5.2) EBITDA
Result Update Institutional Equities The India Cements 28 May 218 Reuters: ICMN.BO; Bloomberg: ICEM IN Fall In Realisation, Higher Operating Costs Hurt Performance The India Cements (ICEM) reported a weak
More informationThe Ramco Cements. Institutional Equities. Event Update BUY
Event Update The Ramco Cements 21 December 2018 Reuters: TRCE.BO; Bloomberg: TRCL IN Capacity Expansion To Boost Its Presence In Andhra & Telangana The Ramco Cements (TRCL) has announced 3.15mt cement
More informationWhirlpool of India. Institutional Equities. Analyst Meet Update. Aims To Sustain Strong Growth Trajectory; Retain Buy BUY
Analyst Meet Update Whirlpool of India Reuters: WHIR.BO; Bloomberg: WHIRL IN Aims To Sustain Strong Growth Trajectory; Retain Buy We attended the analyst meet held by Whirlpool of India (WIL) recently.
More informationSequent Scientific. Institutional Equities. 1QFY19 Result Update BUY
1QFY19 Result Update Sequent Scientific 13 August 2018 Reuters: SEQU.BO; Bloomberg: SEQ IN Regulatory Changes And Adverse Forex Movement Dampens Momentum Sequent Scientific or SSL s revenues at Rs2,369mn
More information2,09,057 1,85,859 2,17, (4.1) NIM
2QFY19 Result Update Institutional Equities State Bank of India 6 November 2018 Reuters: SBI.BO; Bloomberg: SBIN IN Domestic Credit Growth Improves Materially State Bank of India (SBI) reported its 2QFY19
More informationKarnataka Bank. Institutional Equities. 4QFY18 Result Update. Plucky Bank And Low Hanging Fruit BUY. 17 May Reuters: KBNK.NS; Bloomberg: KBL IN
4QFY18 Result Update Institutional Equities Karnataka Bank 17 May 2018 Reuters: KBNK.NS; Bloomberg: KBL IN Plucky Bank And Low Hanging Fruit Karnataka Bank (KBL) reported 4QFY18 results with the key strategic
More informationACC. Institutional Equities. Event Update. Capacity Expansion To Consolidate Presence In Central India ACCUMULATE
Event Update Institutional Equities ACC 19 December 218 Reuters: ACC.BO; Bloomberg: ACC IN Capacity Expansion To Consolidate Presence In Central India ACC has announced 5.9mt capacity expansion by adding
More informationHindustan Unilever. Institutional Equities. 3QFY18 Result Update BUY
3QFY18 Result Update Institutional Equities Hindustan Unilever 18 January 2018 Reuters: HLL.BO; Bloomberg: HUVR IN Robust Performance Maintained Hindustan Unilever or HUL reported a robust set of numbers
More informationHindustan Unilever. Institutional Equities. 2QFY19 Result Update
2QFY19 Result Update Institutional Equities Hindustan Unilever 15 October 2018 Reuters: HLL.BO; Bloomberg: HUVR IN Best Proxy In A VUCA World Hindustan Unilever s (HUVR) overall performance in 2QFY19 was
More informationPNB Housing Finance. Institutional Equities. 4QFY18 Result Update BUY. Continued Display of Embedded Scalability. 4 May 2018
4QFY18 Result Update Institutional Equities PNB Housing Finance 4 May 2018 Reuters: PNBH.NS; Bloomberg: PNBHOUSI IN Continued Display of Embedded Scalability PNB Housing Finance (PNBHF) reported 4QFY18
More informationBharat Heavy Electricals
Company Update Bharat Heavy Electricals 29 December 2014 Reuters: BHEL.BO; Bloomberg: BHEL IN Macro Headwinds Unlikely To Ease; Retain Sell We expect Bharat Heavy Electricals (BHEL) to continue to face
More informationInstitutional Equities
Event Update Institutional Equities Aurobindo Pharma 10 September 2018 Reuters: ARBP.NS; Bloomberg: ARBP IN Acquires Dermatology and Oral Solids Businesses Of Sandoz Aurobindo Pharma s (APL) acquisition
More informationTech Mahindra. Institutional Equities. Company Interaction & Event Update SELL
Company Interaction & Event Update Institutional Equities Tech Mahindra 7 March 2017 Reuters: TEML.BO; Bloomberg: TECHM IN Broadly Maintain Our Outlook On Organic Growth And Margins We interacted with
More informationMuthoot Finance. Institutional Equities. 3QFY18 Result Update. Funding Cost Decline Combines With Operating Leverage BUY.
3QFY18 Result Update Institutional Equities Muthoot Finance 12 February 2018 Reuters: MUTT.BO; Bloomberg: MUTH IN Funding Cost Decline Combines With Operating Leverage Muthoot Finance (MFL) reported its
More information