Despite the adverse impact on off-take of its Specialty portfolio due to COVID, SUNPs market share remained intact and gradual recovery is expected over the near-to-medium term. Maintain SUNPs 1QFY21 sales were down 10% YoY to INR75.7b (v/s est. Accordingly, we have raised our price target to INR635 (from INR525 earlier) on We believe SUNPs RoE is at a trough and would improve with 19% earnings CAGR over FY20-22E, led by improving traction in the Specialty portfolio, enhanced MR efforts in DF, and better operating leverage. Considering that market share remains intact, SUNP is continuing its efforts to build more traction in its Specialty portfolio. We expect US sales to show moderate growth SUNP delivered 3% YoY growth in 1QFY21 despite challenging market conditions on account of COVID. We expect 9% sales CAGR over FY20-22E in this segment, led by increased traction in DF outperformance (v/s industry) coupled with recovery from COVID related disruptions and gradual improvement in the Specialty portfolio segment.

However, the COVID-19 pandemic and Auto sector slowdown impacted Technical Textiles and Refrigerant segments. Factoring in the estimate beat, we have increased FY21/FY22E earnings by 1QFY21 revenue declined 12% YoY to INR15.5b (v/s est. Significant impact in white goods and automobile revenue declined 3% YoY to INR6.8b with margin expansion of 11.8pp YoY to 32.6% (EBIT grew 52% YoY). Margin expansion was due to higher spreads, led by supply-demand mismatch and higher share of value- added products, resulting in higher value realizations across revenue plunged 63% YoY to INR1.4b due to significant slowdown in demand from tyre majors. SRF already has 95kMT capacity, which is Performance in 1QFY21 was impacted due to the COVID-19 pandemic and auto slowdown. While sluggishness in autos dented performance of the Technical Textiles business, the slowdown in white goods/auto impacted the Refrigerants However, strong margin expansion was witnessed in Packaging Film segment due to demand-supply mismatch and higher share of value-added products.

The bank further built COVID-19 provisions of INR18.4b, taking the total COVID related provisions to INR30b (15% on SMA accounts overdue on 29 NII grew 16% YoY (+17% QoQ) to INR266b with domestic NIMs improving by Other income grew 18% YoY, led by stake sale gains of INR15.4b in SBILIFE while opex growth moderated to 2% YoY (11% QoQ decline), and thus, C/I ratio improved to 50% (v/s 52.5% in 4QFY20). Total slippages declined to INR39.1b (0.7% annualized), facilitating a 13%/18% QoQ decline in GNPLs/NNPLs. PCR improved ~190bp QoQ to 67% Overall, 90.5% of term loans have paid two or more EMIs while the rest have paid less than two EMIs these include 4.2% in retail and SME, 3.3% in private corporates and the rest 2.0% are AAA or AA rated companies. Furthermore, moratorium availed in corporate accounts is much lower than expected while total COVID-19 provisions of INR30b and lower SMA book of INR17.5 (0.1% of loans) provides comfort.

1 August 2020 Laurus Labs (LAURUS) delivered all-time high quarterly PAT at INR1.7b. It is more than average of annual PAT over FY17-20. The company expects this to be sustainable on the back of diversified portfolio, increased customer base, addition of capacity for API/formulation and supported with better operating leverage. After a long wait, the efforts towards product development/building manufacturing base are reflected in the phenomenal financial performance. In fact, 1QFY21 redefines the earnings assessment over near to medium term. Our target PE remains unchanged and target price of INR1,215 at 17x 12M forward earnings factors just the earnings upgrade. Sustainability of growth momentum in FY22 can drive further re-rating. Reiterate Buy. LAURUS 1QFY21 revenues grew at a robust rate of 77% YoY to INR9.7b INR3.5b v/s INR1.1b YoY, Other API (14% of sales) revenue of INR1.3b v/s INR440m YoY, 37% YoY growth in CDMO (10% of sales), and 19% YoY growth in Anti-Viral API (35% of sales).

1 August 2020 JSW Energy (JSWE)s results reflected the impact of lower merchant sales volumes due to lower power demand and merchant prices. At a consolidated level, EBITDA was down 8% YoY to INR7.5b. Debt reduction continues, with net debt (incl. acceptances) declining ~INR1.6b during the quarter. Interest cost also decreased by 11% YoY. Furthermore, FCF generation would continue to be strong given ~80% of JSWEs capacity is under long-term PPAs. account of lower short-term sales. Short-term sales volumes declined 83% YoY to 123MU. Interest cost fell 11% YoY to INR2.5b given the debt reduction. Other income was up 58% YoY to INR0.8b, led by write-backs of INR0.3b.

Despite challenging times, the company gained market share in general staffing business (added 78 accounts) in Q1FY21, helping TLS to register 14.5% fall in volumes vs. expected 18-20% dip. Going forward, we expect an economic recovery and market share gains to boost the topline. This coupled with traction in NETAP due to some improvement in manufacturing & auto will further give impetus to general staffing revenues. Also, we expect a revival in demand from BFSI, logistic, healthcare and FMCG to lead to healthy growth in general staffing. Hence, we assume 10.5% CAGR in FY2022E in general staffing. In specialised staffing, we expect revenues to...

Europe, EAP regions revenue growth drive topline On the geography front, East Asia Pacific region (mainly China), Europe revenue grew strongly by 46%, 30% YoY, respectively, in Q1FY21 led by strong performance of new product category, addition of new clients. America's revenue grew ~11% YoY mainly due to ~31% YoY growth in personal care segment. Africa, Middle East, South Asia (AMESA) region mainly India, Egypt, reported ~3% revenue decline due sluggish demand of personal care products amid pandemic related lockdown. We model ~12%...

MSP hike, export subsidy to perk up earnings, cash flows The government is expected to increase minimum selling price (MSP) of sugar by | 2 /kg in consideration of higher cost of production (CoP) for a benchmark non-integrated sugar mill. In conjunction with a hike in sugar floor price, sugarcane price is also expected to increase by | 10/quintal, leading to | 0.85/kg increase in CoP. This move would increase gross margins for sugar mills by | 1.15/kg, which ultimately flow to PBT. Further, to manage higher sugar inventory [11.5 million tonnes (MT) by September...

RIL reported standalone EBITDA/PAT of INR 71/98bn, -48/+18% YoY. During the quarter, (1) INR 44bn was received from British Petroleum (BP) as part consideration for the sale of 49% stake in RIL's Petro Retail Marketing business (disclosed as an exceptional item), (2) INR 16bn worth of tax credit was availed, which arose out of the planned restructuring of the Oil to Chemicals business. Ex-adjustments, PAT was INR 38bn (-55% YoY), which was 19% below estimates owing to 10/11% lower-than-anticipated petchem production and per ton EBITDA Our ADD rating on RIL with a price target of INR 1,992/sh is premised on (1) induction of Facebook, Google, Intel and Qualcomm as partners in Jio Platform, which should enable the company to accelerate the growth of digital connectivity and create value in the digital ecosystem through technology offerings, (2) recovery in refining and petchem businesses in FY22E, (3) a clear path to a stronger balance sheet, (4) potential stake sale in Reliance Retail.

State Bank of India (SBI) posted encouraging results with asset-quality improvement on a sequential basis, even as operational performance came mixed, aided by one-time gain of stake sale benefit of Rs. 1,539 crore from the subsidiary. However, weak other income and higher provisions expenses resulted in PPOP and PAT missing estimates. Net interest income (NII) came at Rs. 26,642 crore, up 16.1% y-o-y and 17% q-o-q, in line with estimates. Non-interest income came at Rs. 7,957 crore, flat y-o-y but was down by 40% q-o-q, mainly as the quarter saw impact of fee and charge waivers amidst pandemic. However, the key is the balance sheet strength and asset quality, on which parameters the bank fares well....