Asset Quality declined sharply as GNPA increased by 67bps QoQ to 1.52% and NNPA remained increased by 52bps to 0.81% in 4QFY17. The bank had to recognize one large account in cement sector worth INR 9.1bn as NPA based on the RBI audit which pushed the credit cost higher to 19bps for the quarter as against 8bps in 3QFY17. However, the bank expects to recover the same in 1HFY18. The bank sold assets (3 accounts) worth INR 8.7bn (INR 7bn received as SR) to ARCs...
Background: DCB Bank Limited (formerly Development Credit Bank Limited) is the smallest listed private sector lender. DCB has a deposit base of INR 193bn and advances of INR158bn at the end 4QFY17, making it the smallest bank in the listed private sector space, including both new and old generation private sector banks. Promoter group the Aga Khan Fund for Economic Development (AKFED) & Platinum Jubilee Investments holds ~16.19% stake. DCB services entails Corporate Banking - 16%, SME -12%, Agriculture 18%, Mortgages 43%. As on 4QFY17, the bank has a...
Background: Repco Home Finance Limited (RHFL) is a low to medium ticket size home loan financing company predominately based in tier II / III cities of southern India. Promoted by the State-owned Repco Bank Ltd in 2000, RHFL presently has 121 branches and 32 satellite centers of which ~87% are located in the southern market. Repco has shown robust growth in its loan book clocking 29% CAGR (FY12-FY16) and stood at INR ~86.6bn at the end 3QFY17. RHFL average loan per unit is...
Background: Greaves Cotton (GCL) is one of the largest manufacturers (primarily) single cylinder (diesel, gasoline engines) and dual cylinder engines, which find application in running 3-W vehicles and 4-W small commercial vehicles (SCVs). Over the years, GCL has been able to command an overall 3W auto segment share at about 35% in FY08-14, second only to Bajaj Auto (that has in-house engine manufacturing). In the 3W goods segment (sub 1-tonne category), GCL commands a dominating position of 80-90% share (as of FY13) as the market leader OEM i.e. Piaggio (single largest client of GCL) sells the highest 3W goods carrier in the...
Established in 1975, Motherson Sumi Systems Limited (MSSL), a JV between Samvardhana Motherson Group (36.9% stake) and Sumitomo Wiring Systems, Japan (25.6%), is India's biggest supplier of wiring harness and one of the largest manufacturers of rear view mirrors in the world. With a strong workforce of over 60,000 qualified professionals and 140 manufacturing units spread across 25 countries, MSSL caters to major global OEMs such as Volkswagen group, BMW, Daimler, Renault Nissan, Ford, Volvo, Maruti Suzuki, Tata Motors, Honda, Toyota etc. In terms of revenue mix as of FY16, of its standalone revenue, wiring harness accounts for...
Total automobile sales at 1,719,699 units, across all vehicle segments in February 2017, point to flat growth (0.94% YoY) but an improvement over January 2017 (1,620,045 units, -4.71% YoY), December 2016 (1,221,929 units, -18.66% YoY) and November 2016 (1,563,665 units, -5.48% YoY). Sales in October 2016 (2,201,571 units, +8.14% YoY) and September 2016 (2,260,992 units, 20.16%...
Background: Berger Paints is the second largest decorative paint company. Company has seven manufacturing facilities spread across India, besides four overseas manufacturing facilities. The company has second largest distribution network of ~11,500 active dealers and ~12,000 tinting machines. Berger has a strong presence in East and North India, which accounts for 60% of its distribution network while South & West India accounts 40% of distribution network. Company derives ~80% of revenue from decorative paints and the rest from industrial paints of which Automotives accounts for 8%, powder coating accounts for 2% and other industries accounts...
JK Cements is one of the largest cement players in North India. It manufactures grey cement, white cement and white cement based wall putty. Currently the grey cement capacity is 10.5MTPA. Domestic white cement capacity is 0.4MTPA (second only to UltraTech, which has capacity of 0.55MTPA). The company also manufacturers putty and has an installed capacity of 0.3MTPA. The company has also installed a grey cum white cement plant with an installed capacity of 0.6MTPA (white cement) and 1.02MTPA (grey cement) in Fujairah (UAE) in a 90:10 JV with the Government of Fujairah. It has also expanded its grey...
Background: Lumax Industries, part of DK Jain group, is the largest automotive lighting company in India. It manufactures Head lamps, Tail lamps, Sundry & Auxiliary lamps. Lumax has technological & financial collaboration with Stanley Electric of Japan. Stanley holds 37.5% in Lumax Industries and is its largest shareholder. Lumax provides high quality automotive lighting solutions for four wheelers, two wheelers, CVs & Tractors. It has 9...
