Strong Performance across verticals : Maintain BUY GMM Pfaudler Ltd (GMM), for Q1FY19, reported a strong set of numbers. Revenue grew at 35.4% YoY to Rs 932mn (est Rs 925mn). EBITDA showed growth of 93.4% YoY to Rs 153mn (est Rs146mn) with 494bps YoY increase in margin from 11.4% in Q1FY18 to 16.4% in Q1FY19 due to higher export revenue and lower power cost. Net profit inclined by 63.9% to Rs 91mn (est. Rs 88mn) due to operationally strong performance. During the quarter, export accounted for 10% of revenue compared to the...

mainly due to favorable PAN/OX spread. During Q1FY19, production of PAN volume has shown 8.1% growth on the sequential basis from 37,000 in Q4FY18 to 40,000 in Q1.On a sequential basis EBITDA margin shown solid improvement (20.4% in Q4FY18) due to the higher gross margin of 35.5% com- Sector Outlook...

CreditAccess Grameen Ltd (CAGL) (formely Grameen Koota), founded in 1991 is the second largest Issue Details rural focused MFI-NBFC and the third largest MFI-NBFC in India. The company's promoter Offer Period CreditAccess Asia N.V operates in 4 countries across Asia through its subsidiaries, specializing in MSE financing. The company focuses on providing micro loans to women in rural areas and has a customer base of 2.2 Mn with gross loan portfolio outstanding of INR 49.75 Bn as of FY18.CAGL Price Band operates across eight states spanning Karnataka, Maharashtra, Tamil Nadu, Madhya Pradesh, Goa, Kerala & Odisha. The company has a presence across 132 districts in these states served through...

Established in 1999,HDFC AMC is a joint venture between HDFC and Standard life investments Limited.SLI is part of Standard Life Aberdeen plc., a global leading investment company. HDFC Offer Period AMC is the largest AMC in India in terms of equity AUM and amongst the top 2 in terms of total AUM, standing at INR 2.9 trillion as of FY18.The company has a diverse product base that has Price Band helped in targeting a large amount of individual customers with a total of 133 schemes as of FY18.The company remains the most profitable AMC in terms of net profits. HDFC AMC also provides portfolio management and individual account services on a discretionary as well as non discreBid Lot...

The company design, manufacture, market and retail a wide portfolio of women's branded apparel across multiple brands. The company sells their products across India and through multiple distribution channels. As of March 31, 2018, they sold their products through 465 Exclusive Brand outlets, Price Band 1,469 Large Format Store Outlets and 1,522 Multi-Brand Outlets, located in 31 States and Union Territories in India. Over the years, they have expanded their brand portfolio to 3 brands (W, Wishful Bid Lot...

We expect the companies under our coverage to report double digit growth in Q1FY19, aided by low base in domestic market due to GST . However, we believe US business continue to witness pricing pressure in the base business mainly due to channel consolidation and increased competition. Few interesting launches in US generic market will help few Indian players to report better performance in Q1. On domestic market front, we expect most of the companies report healthy performance in Q1FY19 due to low base last year same quarter. Overall structural trends in the sector do not give any long-term comfort, however overall earnings decline is expected to bottom out in the near term. Moreover, several companies with significant USFDA-related regulatory issues appear to be coming...

GMM's GL sales volume in FY17 was ~1400 vessels with capacity utilization of 75%. GMM is undertaken a debottlenecking exercise and aims to achieve 2,100 GL capacity volume in FY19. During Q4FY18 capacity utilization level was at 80% level given the strong order book (8 months), for full year FY18 GL volume stood at 1500 vessels (80% utilization), Management targeting to achieve 1800 vessels in by the end of FY19 (20% volume growth from FY18). The Company's GL business grew at 10% CAGR during FY14-17. We estimate the same growth to continue going forward on the back of >10% growth in end-user industries ( Pharma 10-12 %, Chemicals 12-14%; Most of the chemical players are in capacity expansion mode). Revenue contribution from pharmaceutical industry restricted to 30% during Q4FY18 compared to more than half of GL revenue due to the challenging environment in the sector and increased order from chemicals sector. Management expects in FY19, recovery in the pharmaceutical sector as capex cycle to get the better pace. Currently, The Company had 5 furnaces...

Stable volume growth in specialty chemical segment Specialty chemical volumes in Q4FY18 were marginally affected due to subdued demand from the Agrochemical sector. However the management foresees the trend to reverse in FY19 and expects demand from Agrochemical sector to rebound. During the quarter production of nitrochlorobenzene stood at 17,800 tons compare to 16,500 tons in Q4FY17 and 68,800 tons for FY18, implying a capacity utilization of 92% for full year. AIL's nitrotoluene facility reached 40% utilization level since its commissioning in Sep2017 during Q4FY18, which the management expects to be ramped up to at least 80% by FY20.The management expects speciality chemicals volume to grow at 12-15% in FY19 on...

Lemon Tree Hotels is largest mid scale hotel chain by owned rooms in India. It is managed by Mr. Patanjali G. Keswani, who is chairman and managing director of the company and has 30 years of experience in hotel and hospitality industry. The business operations are spread across value chain from owing, leasing, developing, managing and marketing of hotels. It operates in mid priced hotel sector consisting of upper-midscale, midscale and economy hotel segments to carter large middle class population of India. As on 31st January 2018, Hotel portfolio comprises of 19 owned hotels, three owned hotels located on leased or licensed land, five leased hotels and 18 managed hotels, while 28...

Incorporated in 1995, ICICI Securities (a subsidiary of ICICI Bank) is headquartered in Mumbai and has its operations across India, United States, Singapore and Oman. It operates through its 200 own branches along with 2600 branches of ICICI Bank and also associated with 4600 sub brokers, authorised persons, independent financial associates and independent associates across 500 cities. It is a leading technology-based securities company in India that offers a wide range of financial services such as distributing various 3rd party financial products which includes mutual funds, insurance products, loans, and pension products, the advisory services which includes financial planning, equity portfolio advisory, access to alternate investments, retirement planning and estate planning, brokerage services and also capital markets services which include management of public equity offerings, share buybacks, tender offers and equity private placements. It has also ventured into investment banking business and offers equity capital markets services and other financial advisory services to corporate...

Incorporated on Oct 19, 1987, Sandhar Technologies Ltd (STL) commenced operations as a supplier to Hero for sheet metal components promoted by a first-generation entrepreneur, Mr. Jayant Davar, Co-Chairman and MD who has 30 years experience in the Original Equipment Manufacturer (OEM) component manufacturing industry. Currently, the company's main business includes manufacturing 21 categories of products and components including locks, mirror assembly, wheel assembly, sheet metals and aluminum components. They cater their products to various industries mainly focused on the automobile industry. Having headquartered in Haryana, Gurugram, operating through its 4 subsidiaries and joint ventures, the manufacturing units are located mostly in North, South and West India in close proximity to its 79 costumers including Hero, TVS and Royal Enfield. Till date, the company has...

Incorporated in 1963, Hindustan Aeronautics Limited (HAL) is engaged in the design, development, manufacture, repair, overhaul, upgrade and servicing of a wide range of products including, aircraft, helicopters, aero-engines, avionics, accessories and aerospace structures. It is a NAVRATNA company and largest Defense Public Sector Undertaking (DPSU) in terms of value of production and 39th largest aerospace company in the world in terms of revenue. Its operations are operated in five complexes, which includes 20 production divisions and 11 research and design centers (R&D; centers) located across India. It relies on strong indigenous research, technology transfers and license agreements to deliver products and services that fulfill customer requirements. To achieve self reliance and become a significant global player in the aerospace industry, HAL has entered into 13 commercial joint ventures with several global companies. The order book of company stands at Rs. 633.3 billion, which includes products and services to be manufactured and delivered and excludes anticipated revenues...

The erstwhile Bandhan Financial Services Pvt. Ltd. (BFSL) was the largest non-banking finance company micro-finance institution (NBFC-MFI) in India and the first entity to receive an in-principle universal banking licence from the Reserve Bank of India. Following the transfer of BFSL's business to the bank, Bandhan Bank Limited (BBL) commenced operations in August 2015. It has a banking license that permits it to provide banking services pan-India across customer segments. It has an experienced senior team headed by Mr. Chandra Shekhar Ghosh, Managing Director and Chief Executive Officer. He has 37 years of experience in Indian microfinance industry. BBL is a commercial bank focusing on serving under banked and underpenetrated markets in India. Current asset products consist of retail loans including a substantial portfolio of micro loans, as well as micro, small and medium enterprise (SME) loans and small enterprise loans. It offers a variety of asset and liability products and services designed for micro banking and general banking, as well as other banking products and...