Mahindra Logistics Ltd. (MLL) is an integrated third-party logistics (3PL) service provider, specializing in supply chain management and people transport solutions. MLL serves over 300 corporate customers across various industries like Automobile, engineering, consumer goods and e-commerce. The company pursues an asset-light business model, providing customized and technology enabled solutions that span across the supply chain and people transport operations. It also allows scalability of services as well as the flexibility to develop and offer customized logistics solutions across a diverse set of industries....
Axis Bank Ltd. (AxisB) Q4FY18 performance was adversely impacted by high NPA provisions. Slippage increased by over 3x QoQ due to the RBI's revised guidelines for resolution of stressed assets and thereby GNPA rose by 149 bps QoQ to 6.8% in the reported quarter. We drive comfort from aggressively recognition of NPAs as bulk of stress has now been recognized and watch list at Rs4,280 mn was reduced to 0.1% of advances by Q4FY18. Credit growth at 18% YoY remained healthy and share of low cost deposits base increased to 54%. Recent capital infusion has improved the capital position with CAR at 16.6% which we think is sufficient to...
During the quarter, the company reported a 11.6% Y-o-Y rise in the operating revenue to Rs. 454.4mn. This was mainly due to the new production line which started its operation from March & August 2017. Operating expenditure increased at a high pace of 14% as compared to topline, as a result EBITDA decreased by 5.8% Y-o-Y to Rs. 46.7mn. EBITDA margin contracted by around 141 bps to 12.49% in Q3 FY18. This was mainly...
At CMP of Rs. 2652.2, the company is trading at a P/E multiple of 10.x, which is at a discount to the peer average P/E multiple of 32.1x Moreover, it is trading at 0.28x to the market value of its equity investment as compared to five years average of 0.35x. As against a book value of 720 per share, NAV of the investments was 6,498 per share as on 31 December 2017. Thus considering the future outlook and fair...
Indostar Capital Finance Limited (ICFL), established in 2009, is a Recommendation leading NBFC lending to mid-to-large sized corporates in manufacturing, services and infrastructure industries and real estate Price Band (per share) Rs570-572 developers of residential and commercial building projects....
HDFC Bank Ltd. (HDFCB) posted stellar performance for Q4FY18 which came in line with our estimates. While NII growth remained healthy on the back of strong interest income, robust fee income, low C/I led to above 20% growth in profit. There was positive surprise on assets quality front with low slippage at Rs27.9 bn (Rs45.9 bn in Q3FY18) and stable GNPA at 1.3%. While, wholesale advances growth remained subdued at 11.8% YoY due to higher base effect in Q4FY18, overall advances growth at 18.7% YoY remained satisfactory bolstered by sturdy growth momentum in retail credit. HDFCB is the market leader in retail loan segment, the...
Trident Ltd. is the flagship company of the Punjab-based conglomerate, Trident Group. It manufactures textile products (bed and bath linen and various types of cotton yarn), paper (wheat straw-based ), chemical and energy. The textiles...
Another stellar performance reported by Indusind Bank (IndusB) on both financial and operational fronts for Q4FY18, in line with our expectations. Strong NII growth at 20.4% YoY, healthy NIM (at ~4.0%) and controlled OPEX helped to maintain over 25% growth in the bottom line. IndusB reported divergence of Rs13,500 mn, however adjusting for repayment, NPA classification and ARC sale, the net impact remained at ~Rs1,860 mn which was recognized as NPA during the reporting quarter. Overall, GNPA stood at 1.17% v/s 1.16% in previous quarter even after considering the impact of divergence showed persistence of strong assets quality...
Valuation: At CMP of Rs. 993, HCLT Ltd is trading at a P/E multiple of 15.4(x) compared to the industry peer of 19.7(x). The company has an upside potential of 25% to 30% in the next 12 to 18 months. We arrive at a target price in range of...
Business continued to grow at higher pace: CIFL is one of the major player in the vehicles finance in the country. Heavy and light commercial vehicles finance accounts for around 40% of the vehicles finance AUM. Over the last four quarters, disbursements to vehicles finance segment witnessed a strong traction in line with the improving commercial vehicles (CV) sales growth in India. M&HCV; production growth in the last seven months (Sep-Mar) increased at avg. 26.1% YoY mainly driven by the infrastructure activity. Loan growth from this particular segment is likely to remain strong over the near to medium term...
