RITES Limited, incorporated in 1974, is a Miniratna (Category I) Schedule A' Public Sector Enterprise. It is a leading player in the transport consultancy and engineering sector in India with diversified services and geographical reach under one roof.

We recently met the management of Century Plyboards (CPBI) for insights into the company's FY20 growth outlook. Key takeaways: (1) MDF segment to log 80-90% capacity utilisation, (2) plywood/laminate businesses to grow ~10%/15%, (3) blended margin to improve backed by margin gains across the MDF, plywood and laminate segments, albeit partly offset by competitive pressures in CFS. Maintain BUY on reasonable valuations of 15.9x FY21E...

UPL fell 5.22% last week and is down 8.26% from a month ago, although up 46.29% YoY. The sharp fall last week has been attributed to concerns over potential demand slow down, financial leverage and potential increase in tax payout. We believe that some of these concerns are either premature or unsubstantiated at this stage and in any case largely priced in, following the above correction in the stock. The more pertinent concerns are related to accounting, earnings and cashflows from the Arysta business. We maintain our forecasts and upgrade our rating on the stock from Accumulate to Buy based on...

The PPA is for the remaining life of the plant of 19 years. The annual fixed charge (AFC) is approved at the lower of CERC determined tariff or INR2.28b. The AFC approved by CERC is INR3.46b in FY19, but TPW has offered a discount as part of negotiation in the interest of consumers. The approved AFC equals to INR1.1/kWh (@ 85% PLF). Variable cost will be a pass-through. According to the tariff order, the PPA is subject to the purchase cost from UnoSugen (gas cost + fixed charges) not being more than the cost of medium-term power. The implied landed cost of power (incl. transmission) based on the recent medium-term contract will be ~INR5/kWh. This becomes the ceiling price for TPW. The company will have to enter into medium-term LNG contracts which are subject to the movement in crude oil prices (i.e.

RITES Limited, incorporated in 1974, is a Miniratna (Category I) Schedule A' Public Sector Enterprise. It is a leading player in the transport consultancy and engineering sector in India with diversified services and geographical reach under one roof.

Strangled by no imperceptible slowdown in Indian CV industry, most prominently the stalwart M&HCV; - stark change in volumes not invisible as MHCV dispatches tumbled not indiscernibly by 5.5% (yoy) in the second half of last fiscal compared to 48.1% growth in the first half Jamna's revenue from operations slid 3.4% in the second half of last fiscal. The condition got no better in Q4 as Jamna reported 9% drop in revenues...

At CMP, the stock is trading at 16.4/10.2x FY20/21E EPS, a ~30% discount to the sector-avg. We assign a fair value of Rs 650 (15x FY21E EPS). In light of environmental issues in China, the API market place is likely to present an enormous opportunity for established Indian API manufacturers. The global API market is close to US$ 160bn with China having a 30%+ market share, while India is at 8-10%. Solara is one of the leading API manufacturers in India having the capability to benefit from this opportunity due to a large API portfolio of 50+ molecules.

Maintain BUY with SOTP value of Rs 895 (2.8x FY21E ABV of Rs 309 + Rs 30 for subs). Over FY19, AXSB has demonstrated meaningful improvement in performance metrics. Profitability improved for the retail and wholesale businesses (loss in FY17 & 18). After growing briskly over FY17-18, SA traction slowed for the bank and system. With moderating slippages and LLPs, AXSB changed course over FY19 towards normalised earnings and RoAAs. Improving asset quality (with rising coverage), better risk practices, focus on high yielding retail products and cost consciousness will drive earnings.

Sector: Agrichemical /Small-Cap | Earnings Update 4QFY19 Background: PI Industries' is one of the leading players in the Crop protection industry. Company largely operates under two main segments a) agriculture inputs, b) custom synthesis and contract manufacturing. Company has a niche portfolio of 45 products, which includes 5 in-licensed products and 7 co-marketing products in tie up with MNCs such as Bayer, BASF & Kumiai chemicals. Company currently operates three manufacturing sites in Gujarat, having three formulation units and 8 multiproduct plants for manufacturing, active ingredients and intermediates. PI has a strong distribution network of 10,000 dealers / distributors; 40,000 retailers and 30 stock points....

IPO NOTE

IndiaMART (IML) is India's largest online B2B marketplace for business products and services with approximately 60% market share of the online B2B classifieds space in India. IML primarily operates in product and supplier discovery marketplace i.e. www.indiamart.com or IndiaMART. IML earns revenues from the sale of subscription packages, from the sale of request for quote or RFQ credits, advertising from IndiaMART desktop, mobile optimised platforms and revenue from payment facilitation services. As of March 31, 2018, IML had 59.81mn registered buyers, and 4.72mn supplier storefronts in India. These Indian supplier store fronts had listed 50.13mn products, of which 75% of goods comprised products and 25% were...

We recently met Container Corp of India's (CCRI) management in Delhi. Key takeaways: (1) revenue target of Rs 250bn by FY25/FY26 (Rs 7bn in FY19), (2) IR's advance freight scheme likely to be EPS-accretive, (3) completion of Rewari-Palanpur stretch of WDFC now expected by end-FY20, (4) coastal shipping operations to be launched on the east coast, and (5) warehousing area...

Demand remains sluggish: As per management, demand for logistics services has been sluggish over the past few months due to the general economic slowdown and election-related uncertainty. TRPC believes the...

Aurobindo Pharma has received a warning letter from the USFDA for Unit XI, API manufacturing facility in Srikakulam district, Andhra Pradesh. This action follows the earlier inspection of the site by the USFDA and issuance of Form 483 with three observations in February 2019. Post inspection, USFDA had classified this plant as Official Action Indicated (OAI). Apart from Unit XI, the company has OAI status on Unit I (API facility) and Unit IX (Intermediate facility). Unit XI is the largest API plant of the company followed by Unit I. According to the management, there are just ~15...

About Q4 results, excluding one-off inventory adjustment in Sun Pharma's domestic business, Q4 results were better than I-direct estimates on all fronts led by robust growth in US and efficient cost control measures. Adjusted revenues of I-direct pharma universe grew 14.9% YoY to | 46359 crore. Overall US pie reported one of the best results in the recent past driven by 1) volume gains, 2) mitigating base business price erosion, 3) new launches and 4) certain one-time sales besides currency tailwinds. Indian formulations also reported decent growth despite soft season in acute...

GMM Pfaudler Ltd (GMM) in Q4FY19 posted revenues of Rs. 121 Cr. (up 37% Y-o-Y, up 14% Q-o-Q) due to the excellent growth shown by non-Glass Line Equipment (non-GLE) segment. EBITDA for the quarter stood at Rs. 17 Cr. (up 18% Y-o-Y, down 1% Q-o-Q)

In Q4FY19, Aarti Industries reported std. revenue of Rs. 1,211 Cr (up 18% Y-o-Y, down 4% Q-o-Q), EBITDA of Rs. 238 Cr (up 31% Y-o-Y, down 4% Q-o-Q). PAT for the quarter stood at Rs. 125 cr (up 47% Y-o-Y, down 6% Q-o-Q).

CIL has provided a FY20 guidance of 10-15% YoY for its domestic operations, while its guidance for the export market is weak. Weak global cues may continue to put pressure on the overall earnings of the company. Therefore, we revise our rating to Hold and value CIL at...

Revenue target of Rs 250bn: CCRI has set itself an ambitious revenue target of Rs 250bn by FY25/FY26 (Rs 7bn in FY19), factoring in the paradigm shift expected post DFC commissioning and material revenue...