New Research Reports

30 July 2020 MSILs 1QFY21 revenues declined 79% to ~INR41b; EBITDA/PAT loss was reported at ~INR8.6b/INR2.5b. MSILs domestic PV market share declined sharply by 430bp YoY (700bp While MSILs 1QFY21 performance was insignificant as normal operations were there only for two weeks in 1Q, commentary on demand recovery is positive. However, commentary on demand recovery is positive. Management has not given any demand outlook as the situation in dynamic and operating environment is changing frequently. We upgrad our FY21/FY22E EPS by ~13%/5% to factor in for cost cutting initiatives, higher other income and lower depreciation. Maintain QoQ) to 47.3% in 1QFY21 due to supply side challenges. Net realization saw steep increase of 9.3% QoQ (+13.2% YoY) to ~INR536k (v/s est. ~INR471k) as non-vehicular revenue contribution was very high, though vehicle ASP were stable. Gross margin contracted ~120bp QoQ (140bp YoY) due to sharp decline in inventory levels (impact of INR1.1b or 3.

Despite challenging times, the US remains a key driver for the company, contributing ~37% to total revenues as of FY20. The company has a strong pending pipeline comprising 99 ANDAs (54 Para IV filings, 28 FTFs) and two NDAs under 505 (b) (2) route. We expect US sales to grow at a CAGR of...

With minimal social gatherings and people preferring to work from home, discretionary spending on categories such as jeans and shirts were significantly hit during the quarter. While the company has over the years gradually diversified its product portfolio from jeans towards other categories (share of jeans down from ~70% in Q1FY17 to 60% currently), still majority of revenues are derived from the jeans category. We expect the near term pain to sustain and the recovery to be elongated given the challenging scenario. We note that in the previous quarter (Q4FY20),...

Margin trajectory is seen improving, going forward. Courtesy its early switchover to BS-VI norms and demonstrated acceptance for those products, pricing environment is largely stable for the company. The management said discounting levels are lower QoQ thus far, and thus would support gross margins. Also, enhanced focus on cost controls (material and...

In the last five years, CPIL has lost market share in toothpaste category with consumer preferences shifting toward Ayurveda & Natural brands. Though market share has stabilised after launch of Ved Shakti, we believe gaining market share would not be easy given overall toothpaste category has been growing at a snail's pace. The company has been putting efforts to drive growth through large scale campaigns & innovations. It has launched Palmolive hand sanitisers & Colgate gentle toothbrushes in Q1. We believe the company would be only able to drive volume through Colgate Vedshakti...

As guided in Q4FY20, IndusInd's deposit growth improved sequentially (up 5% QoQ). We see this will address concerns of the street on liability management of the bank. NII grew by 16% YoY led by improvement in margins; however non-interest income declined by 9% YoY (down 14% QoQ) due to lower retail disbursements. Consolidated PAT decline by 68% YoY due to higher provisions (up 424% YoY) including floating provisions of Rs.9.2bn on Covid-19. GNPA increased slightly to 2.53% vs 2.45% QoQ; however in absolute terms GNPA declined sequentially (down 1% QoQ). Moratorium book declined from 50% (April'20) to 16% as of June'20. We largely maintain our estimates for FY21/22E. We retain our BUY rating with a new TP of Rs.650 (earlier...

We downgrade DRRD to HOLD (earlier Accumulate) due to limited upside potential at current valuation. We retain our earnings estimates and TP of Rs4,326 (PE 24x FY22E). DRRD continues to be one of the best companies in large cap pharma space structurally, though there is limited headroom for further upgrade in earnings estimate and PE expansion. However re-rating in...

TVSL's reported mixed set of results where revenues came in marginally lower at Rs14.3bn (-68% YoY, PLe Rs15b). Gross margins too came in lower at 24% (-90bp YoY/QoQ), PLe 27%). However, led by tight cost control, EBITDA loss restricted at Rs488m (PLe loss of Rs649m) while net loss at...

Led by lower volumes due to COVID, MSIL reported an EBITDA/PAT loss. Operationally gross margins were lower at 28.5% (PLe 30.5%, flat YoY) led by impact of inventory ramp down to an extent Rs1.1bn (which will normalise in...

medium term, IndiGo is focused on optimizing costs and enhance liquidity by 1) Exploring new networks and revenue model (Charter, Cargo etc) 2) Reducing unit costs by cutting down all possible discretionary expenses 3) efficient utilization of fleet 4) 30% reduction in employee bill through mix of salary cuts, leave without pay and layoffs and 5) Monetizing owned aircrafts through SLB. Through these initiatives, the management aims to generate liquidity to the tune of Rs50-60bn over the year. IndiGo's plan of returning 123 less efficient A320ceos over the next 2 years while continuing to induct fuelefficient A320neo family will further help reduce unit costs. We expect FY21...