E&P To Stay Strong; Consumer Segment To Revive
|
|
- Gary Morris
- 5 years ago
- Views:
Transcription
1 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 Bajaj Electricals (BJE) recently to get the latest business update. The management is optimistic about revival in profitability and resumption of volume growth in the consumer products segment post completion of RREP roll-out. In the engineering & projects (E&P) segment, healthy growth momentum is likely to sustain driven by execution of healthy order book while capital efficiency and margin profile are likely to improve. We have retained Buy rating on BJE with a target price of Rs400. We have assigned a P/E of 23x FY19E EPS to BJE s consumer products business (peers are trading at 30x) and 15x to E&P business. Following are key takeaways from the meeting: Consumer product segment in transition phase: The performance of BJE in the consumer product segment has been below industry standards over the past couple of years as it is in a transition phase of altering its distribution strategy by eliminating the wholesale channel. Under the RREP model, the new sales channel will be BJE => distributor => retailer compared to the earlier channel where the wholesaler was an intermediary between BJE and the distributor. BJE has undertaken a bold reform by eliminating the wholesale channel as it was the largest pie of its sales, traditionally accounting for 50%-60% of total sales. Raising incentives for distributors and retailers: BJE intends to improve the incentives it gives to distributors and retailers compared to the earlier structure as well as industry standards. The benefits for distributors are multifold under RREP like: (a) Uniform pricing for all distributors. (b) A sharp increase in RoI from 15% earlier to 40% now. (c) Channel finance at a competitive sub-9% rate. To further incentivise retailers, BJE intends to hike their margin by 2% to 3% by redistributing the commission which was previously paid to the wholesalers. Considering the higher incentives than the industry, BJE intends to have a large share of exclusive distributors as well as a much enhanced network of retailers. Over the past three years, BJE has increased its retail presence from 45,000 outlets to 85,000 outlets. In the next three years, it plans to increase it further to 1,60,000 outlets. Currently, under RREP, BJE has 460 distributors while it aims to have 800 distributors over the next few years. Net revenues 42,625 45,903 42,617 48,165 54,895 EBITDA 884 2,642 2,428 2,979 3,821 PAT (140) 1,103 1,077 1,519 2,160 EPS (Rs) (1.4) EPS growth (%) NA NA (2.4) EBITDA margin (%) P/E (x) NA P/BV (x) EV/EBITDA (x) Dividend yield (%) RoCE (%) RoE (%) (2.0) We are participating in AsiaMoney s Brokers Poll We would be pleased if you vote for us as the feedback helps us align our equity research offerings to meet your requirements. Click Here BUY Sector: Capital Goods CMP: Rs337 Target Price: Rs400 Upside: 19% Chirag Muchhala Research Analyst chirag.muchhala@nirmalbang.com Key Data Current Shares O/S (mn) Mkt Cap (Rsbn/US$mn) 34.2/ Wk H / L (Rs) 388/202 Daily Vol. (3M NSE Avg.) 241,173 One-Year Indexed Stock Performance Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Price Performance (%) BAJAJ ELECTRICAL Nifty 50 1 M 6 M 1 Yr Bajaj Electricals Nifty Index (2.2) Source: Bloomberg
2 Future outlook of growth and margin in consumer segment Owing to the transition phase of distribution network under the RREP model, BJE s primary sales are impacted and as a result it reported 11% YoY decline in revenues to Rs23.1bn in FY17. Even in 1QFY18, the sales fell 14% YoY to Rs4.7bn, partly also impacted by GST-destocking (15% impact on sales). The management expects to resume volume growth from 2HFY18 driven by cities where RREP is already rolled out. Currently, RREP covers 236 districts in 26 cities which comprise 60% of turnover value-wise. The target of RREP roll-out by end-fy18 is 500 districts which will be 80% of the turnover value-wise. Once the RREP roll-out is complete, BJE management hopes to scale up its profitability with EBIT margin at 9%-10% level, in a couple of years post the roll-out, compared to the FY17 EBIT margin of 4.3%. The management believes that the sharp reduction in capital employed in the consumer products segment offers initial indication that RREP is working. The total capital employed reduced sharply to Rs1.3bn as of 1QFY18-end, down 55% YoY from Rs3bn. Working capital cycle of consumer products has come down considerably to 17 days. Strong order book of E&P segment provides healthy visibility The E&P segment has seen healthy transformation over the past couple of years (FY16 and FY17) achieving EBIT margin above 7% compared to the losses sustained in the three preceding years (FY13 to FY15) because of legacy projects. Owing to strong focus of the government on improving power T&D infrastructure, the sector is witnessing healthy order placement activity. BJE has a strong order book currently amounting to Rs33.8bn as of 1QFY18 (1.7x FY17 sales); driven by segments such as power distribution (Rs26.2bn), power transmission (Rs5.9bn) and high masts (Rs1.7bn). In the power distribution (rural electrification) space, BJE is undertaking EPC projects predominantly in Bihar and Madhya Pradesh while orders for supply of materials are taken from other states as well. With plenty of opportunities, BJE is being selective about choosing the right project on the basis of relative certainty of execution and is not looking at diversifying in any other sectors such as railways. The rural electrification and transmission line business has an execution cycle of 24 to 36 months. While BJE has an in-house tower manufacturing capacity of 30,000MT, it outsources other components like conductors, transformers, cables, electronics etc. The high mast is a short cycle business with an execution timeframe of three to six months. Focus on improving capital efficiency and margin profile BJE s current focus is on reducing its cash conversion cycle and improving current margin profile. The E&P segment s capital employed stands at Rs10.2bn as of 1QFY18, up 13% YoY, which it intends to reduce further to an ideal level of 3 to 3.5 months. BJE s debt has reduced from Rs8.2bn in FY16 to Rs5.4bn in FY17, while the management aims to reduce it further by Rs2bn over the next year. The industry norm of payment structure for an E&P project is 70% payment on supply of material, 20% on erection and 10% retention money. The retention money is released after six months of defect liability period. BJE has not faced any issues with receivables in rural electrification projects so far. Out of its total receivables worth Rs14bn in the E&P segment, only Rs3bn is due for more than a year. With strong capex outlay planned in the T&D segment and improving fiscal discipline of states under the UDAY scheme, the prospects of healthy and profitable order inflow remain bright. The management has given guidance of 20% YoY growth in FY18 with a margin range of 7%-8% in the E&P segment. We are factoring in 18% revenue growth (to Rs23.4bn) and 30bps YoY rise in EBIT margin to 7.4% in FY18 driven by execution of strong order book. Outlook and valuation Over FY17-FY19E, we expect BJE to post 13.5% revenue CAGR. However, revival in profitability in consumer product segment is likely to lead to 130bps expansion in EBITDA margin to 7% in FY19E. Further, moderating interest cost and rising other income is likely to lead to 42% earnings CAGR over FY17-FY19E on a suppressed base. Considering healthy rise in return ratios (RoCE likely to rise from 15% in FY17 to 22.6% in FY19E) and strong earnings growth, the stock is available at a reasonable valuation of 16x FY19E EPS. We have a Buy rating on the stock with a target price of Rs400 providing 19% upside from CMP. We have assigned a P/E of 23x FY19E EPS to BJE s consumer products business (peers are trading at 30x) and 15x to E&P business (in line with peers). 2 Bajaj Electricals
3 Exhibit 1: Segment-wise break-up of E&P order book as of 1QFY18 Power transmission 17% High masts 5% Power distribution 78% Exhibit 2: Consumer product segment Revenue and EBIT margin trend (Rsmn) (%) 30, , ,000 15,000 10, , FY16 FY17 FY18E FY19E Revenue EBIT margin 0 Exhibit 3: E&P segment Revenue and EBIT margin trend (Rsmn) (%) , , , ,000 10,000 5,000 - FY16 FY17 FY18E FY19E Revenue EBIT margin Bajaj Electricals
4 Exhibit 4: Peer comparison Peer comparison Net sales (Rsmn) EBITDA margin (%) PAT (Rsmn) CAGR FY17-FY19E FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E Sales EBITDA PAT Bajaj Electricals 42,617 48,165 54, ,077 1,519 2, Crompton Consumer 39,759 43,956 50, ,907 3,576 4, Havells India 61,353 87, , ,969 7,288 9, V-Guard Industries 21,506 24,218 28, ,518 1,705 2, KEC International 85,844 98, , ,048 3,966 5, Peer comparison P/E (X) EV/EBITDA (X) P/BV (X) RoE (%) RoCE (%) FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E FY17 FY18E FY19E Bajaj Electricals Crompton Consumer Havells India V-Guard Industries KEC International Source: Nirmal Bang Institutional Equities Research 4 Bajaj Electricals
5 Financial statements Exhibit 5: Income statement Net sales 42,625 45,903 42,617 48,165 54,895 % growth (7.2) Raw material costs 32,820 33,837 30,511 34,342 38,975 Staff costs 2,263 2,851 3,289 3,757 4,282 Other overheads 6,658 6,573 6,390 7,087 7,817 Total expenditure 41,742 43,260 40,190 45,186 51,074 EBITDA 884 2,642 2,428 2,979 3,821 % growth (8.1) EBITDA margin (%) Other income Interest costs 1,044 1, Depreciation Profit before tax (208) 1,769 1,680 2,301 3,272 Tax (69) ,113 Net profit (140) 1,103 1,077 1,519 2,160 PAT margin (%) (0.3) EPS (Rs) (1.4) % growth NA NA (2.4) Exhibit 7: Balance sheet Share capital Reserves 6,668 7,361 8,512 9,522 10,955 Net worth 6,870 7,563 8,714 9,724 11,157 Short-term loans 2,150 7,251 5,286 4,286 3,986 Long-term loans 1, Total loans 3,859 8,209 5,455 4,455 4,155 Total liabilities 10,729 15,772 14,170 14,179 15,312 Gross block 4,326 4,537 5,172 5,701 6,201 Depreciation 1,549 1,773 2,072 2,409 2,766 Net block 2,777 2,764 3,100 3,292 3,435 Capital work-in-progress Investments Inventories 4,746 5,067 5,712 5,928 6,300 Debtors 12,896 16,711 16,538 18,078 19,852 Cash ,294 Other current assets 6,314 3,002 3,361 3,661 4,446 Total current assets 24,332 25,335 26,264 28,571 31,893 Creditors 11,674 5,714 6,304 7,527 8,756 Other current liabilities & provisions 5,820 8,109 10,332 11,570 12,672 Total current liabilities 17,494 13,823 16,635 19,096 21,429 Net current assets 6,838 11,512 9,628 9,475 10,465 Deferred tax asset (net) Total assets 10,729 15,772 14,170 14,179 15,312 Note: FY15 financials as per IGAAP while FY16 and FY17 financials are as per Ind-AS. Our forecasts (FY18 & FY19) are as per Ind-AS. Exhibit 6: Cash flow EBIT 593 2,369 2,129 2,642 3,464 (Inc.)/dec. in working capital 91 (4,496) 1, (600) Cash flow from operations 684 (2,127) 4,110 3,048 2,863 Other income Depreciation Tax paid (-) 69 (665) (604) (782) (1,113) Net cash from operations 1,286 (2,037) 4,161 3,005 2,562 Capital expenditure (-) (581) (436) (507) (500) (500) Net cash after capex 705 (2,474) 3,654 2,505 2,062 Interest paid (-) (1,044) (1,081) (804) (743) (646) Dividends paid (-) (182) (340) (341) (509) (727) Inc./(dec.) in short-term borrowing 13 5,100 (1,965) (1,000) (300) Inc./(dec.) in long-term borrowing 403 (751) (789) - - Inc./(dec.) in total borrowings 416 4,350 (2,754) (1,000) (300) Inc./(dec.) in investments 79 (203) (7) - - Cash from financial activities (730) 2,726 (3,906) (2,252) (1,673) Others (142) (75) Opening cash balance Closing cash balance ,294 Change in cash balance (166) Exhibit 8: Key ratios Y/E March FY15 FY16 FY17 FY18E FY19E Per share (Rs) EPS (1.4) Book value Valuation (x) P/E NA P/BV EV/EBITDA EV/sales Return ratios (%) RoCE RoE (2.0) RoIC Profitability ratios (%) EBITDA margin EBIT margin PAT margin (0.3) Turnover ratios Total asset turnover ratio (x) Debtor days Inventory days Creditor days Solvency ratios (x) Debt-equity Interest coverage Bajaj Electricals
6 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Institutional Equities Rating track Date Rating Market price (Rs) Target price (Rs) 7 May 2014 Buy May 2014 Buy August 2014 Buy October 2014 Buy November 2014 Buy December 2014 Buy January 2015 Buy February 2015 Buy April 2015 Buy May 2015 Buy July 2015 Buy August 2015 Buy October 2015 Buy November 2015 Buy January 2016 Buy February 2016 Buy April 2016 Buy May 2016 Buy July 2016 Buy August 2016 Buy October 2016 Buy November 2016 Buy January 2017 Buy February 2017 Buy April 2017 Buy June 2017 Buy July 2017 Buy August 2017 Buy August 2017 Buy Rating track graph Not Covered Covered 6 Bajaj Electricals
7 Disclaimer Stock Ratings Absolute Returns BUY > 15% ACCUMULATE -5% to15% SELL < -5% This report is published by Nirmal Bang s Institutional Equities Research desk. Nirmal Bang group 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. Reports based on technical and derivative analysis may not match with reports based on a company's fundamental analysis. 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 has registered with SEBI as a Research Entity in terms of SEBI (Research Analyst) Regulations, (Registration No: INH to ). 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, Atul Vitha Dealing Desk atul.vitha@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. : Bajaj Electricals
Power 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 informationBajaj 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 informationCrompton Greaves. Institutional Equities. 4QFY15 Result Update ACCUMULATE. Overseas Losses Continue; More Business Exits Likely
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
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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 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 informationBharat Financial Inclusion
3QFY18 Result Update Bharat Financial Inclusion Reuters: BHAF.NS; Bloomberg: BHAFIN IN 31 January 2018 Customer Acquisition Accelerates Meaningfully Bharat Financial Inclusion (BFIL) reported its 3QFY18
More informationManappuram Finance. Institutional Equities. 3QFY18 Result Update. The Glitter Is Back In Gold Loans BUY. 9 February 2018
3QFY18 Result Update Institutional Equities Manappuram Finance 9 February 2018 Reuters: MNFL.BO; Bloomberg: MGFL IN The Glitter Is Back In Gold Loans Manappuram Finance (MFL) reported its 3QFY18 results
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 information