D P Abhushan (DPAL) surprised positively on profitability front in H1FY21, led by sharp improvement in margins. However, revenue of the company de-grew by 37% YoY, largely due to Covid related lockdown which led shutdown of the stores. Company's practice of averaging gold price, kept material cost lower leading to gross margin expansion of 565 bps YoY to 13.9% during H1FY21. Consequently, EBITDA margin expanded sharply by 451 bps YoY to 8.7%. Profit during H1FY21 grew strongly by 53% YoY to Rs 103 mn. We maintain our Buy rating on the...