Chola Wealth Direct Broker Research reports

Background: Amongst the largest Pharma companies in domestic market with Net Sales of INR 171.2bn with a strong brand portfolio. R&D; cost is in excess of 13% of Sales. Exports account for 73% with Developed Markets (DM) at 58% and EM at 15%. Sales Mix: API - 10%, Domestic Formulations - 25%, DM Formulations - 56%, EM Formulations - 9%. Historically strong in anti-TB segment, has built expertise in fermentation based products and segments like...

Deposits registered a stable growth (7.2%YoY, -2.5%QoQ) to INR 537bn, driven by CASA NII grew steadily by 22.7%YoY to INR 5.8bn lead by lower interest expense (-4.9%YoY) on account of fall in cost of funds. Increase in share of CASA aided NIM expansion as it increased by 49bps YoY to 4.04% amidst drop in cost of funds by 85bps YoY to 6.03% and...

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: JK Lakshmi Cements (JKLC) is a north Indian Cement player, established in 1982. JKLC has clinker units in Sirohi, Rajasthan and grinding units in Rajasthan, Gujarat and Haryana. The current clinker capacity is 6.2 MTPA and cement capacity is 8.3 MTPA. JKLC derives sales volume from the northern and western regions. The company has 5.3% share of dispatches in the northern and western regions. JKLC is on the spree of capacity expansion;...

Background: Bajaj Finance, a subsidiary of Bajaj Finserv is a leading NBFC with INR 602bn Assets under Management. The AUM is diversified with 2-3 Consumer Finance 45.1%, SME business 36.7%, Commercial-13.1% & Rural- 5.1%. Asset Quality is strong with Gross NPA - 1.68% & Net NPA - 0.44% with Prov Coverage at 74%. On liabilities, Banks, Money market and retail deposits for 35%, 57% & 8% respectively. Return ratios are very healthy in 4QFY17 with ROA at 0.8% & ROE at...

Background: South Indian Bank (SIB), among the mid-sized banks in the private sector space, operates a network of about 850 branches and about 1,320 ATMs. The bank's business is largely skewed towards the Southern state with half of its branches located in Kerala. SIB has established a strong brand recall among the Keralite-NRI Diaspora. With no identifiable promoters SIB is run by a team of professionals. As of 4QFY17 the bank had deposits of ~INR 661bn and...

Background: Vinati Organics Limited (VOL) was established in 1989 to manufacture specialty organic chemicals. It has since grown to become the world's largest manufacturer of IBB and second largest manufacturer of ATBS. The company's products are exported to customers in countries across Europe, America and Asia. Competitive edge in niche specialty chemicals Cost leadership & scale economies in IBB and technological entry barrier in ATBS. The company started with a small capacity of 1,000 TPA and gradually expanded to 26,000 TPA today for its ATBS production, capturing 45% of the market share. The company also command more...