For 2QFY2016, Competent Auto (Competent) reported a decent set of numbers. The top-line for the quarter grew by 12.2% yoy to Rs220cr, which is slightly lower than our estimate of Rs226cr. The revenue growth is in-line with growth reported by Maruti Suzuki in 2QFY2016, where its top-line grew by 13.1% yoy largely owing to 10% volume growth. The EBIDTA for the quarter came in at Rs6cr as against Rs5cr in the corresponding quarter a year ago. The EBIDTA margin for the quarter improved by 9bp yoy to 2.7% as against 2.6% in 2QFY2015. The interest expense for the quarter grew by 40% yoy to Rs1.6cr as against Rs1.2cr in 2QFY2015. Consequently, the net profit came in at Rs2.6cr, growing by 21.6% on a yoy basis. Proxy play on Marutis growth: The top-line performance of the company is closely linked to the performance of Maruti Suzuki (MSIL). We expect MSIL to post robust volume growth in the domestic market going ahead on back of new launches which will be replicated by Competent. Also, we expect the market share of the company to remain stable/improve, as entry of a new dealer seems to be commercially unviable with property prices having soared significantly...