Dolat Capital Broker Research reports

View: Another bad quarter, recovery in FY21E; maintain Buy NCC reported lower than expected numbers on all fronts. NCC posted weak set of numbers with 44.2%/ 36.2%/ 82.7% YoY degrowth in Revenue/ EBITDA/ APAT to `17.3 bn/ `2.3 bn/ `300 mn due to lower execution coupled with higher depreciation + interest cost...

Relaxo's revenue surged 14.5% YoY to ` 6.2bn in Q2FY20 - came in line with our estimates. The company exhibited tenth consecutive quarter of strong double digit revenue growth. Growth was driven mainly by...

Robust quarter, revises guidance 100bps+, OPM reversal ensures rerating HCL Tech reported strong performance in Q2 with a 6% CC terms QoQ growth in revenues, despite lower-than-expected inorganic addition. OPM rebounds by 290bps QoQ at 20% against our expectation of...

KNR has entered into share purchase agreement with Cube highways for 4 HAM projects wherein KNR will receive `3.58 bn against its equity investment of `2.0 bn (51% share). The average deal valuation works out at 1.8x P/B. Cube Highways will be investing 49% equity (1.9 bn) out of total requirement of 3.9 bn during construction period. On achieving CoD, Cube Highways will acquire 25% equity stake out of 51% from KNR and will acquire remaining 26% after expiry of lock in period (~2 years) post CoD. Thus, acquiring 100% stake from KNR....

Though the global economic growth declined from 3.8% in 2017 to 3.6% in 2018, the Indian economy remained relatively steadfast. Growth in activity and capital inflows was witnessed in the Indian Construction Sector driven mainly by Government Capex. The EPC segment regained its growth momentum in 2018 due to positive developments in the economy, investments in transport infrastructure, energy and housing projects as stated in Construction in India' by Global Data. Private corporate Capex...

Jamna Auto reported weak set of numbers in Q1FY20. The revenue was ` 4.2bn (-25% YoY on a high base), due to slowdown in CV sales along with weaker product mix (affected by a shift in demand towards lower tonnage vehicles, a lower revenue from parabolic springs & lift axle and muted aftermarket sale). However, the company is maintaining its dominance in the domestic OEM segment with 71% market share in leaf springs and focused on widening its distribution network (through tie-ups with retailers and garage personnel in aftermarket segment). The management has also...

View: Spike in execution in H2FY20E, maintain Buy KNR's revenue is down 16.5% YoY to 4.6 bn in Q1FY20 (33.5% below estimates), due to delay in receiving appointed date for HAM projects coupled with 400-500 mn worth of execution not billed in Q1FY20. The EBITDA margin fell 37 bps YoY to 19.4% (287 bps above estimates), due to higher construction and employee cost which was partially offset by lower other expense. EBITDA margins are on the higher side led by lower sub contraction cost and various irrigation projects are on the verge of...

Strong quarter; Working capital improves; Upgrade back to Accumulate The Q1FY20 results were more than our estimates, and both EBDITA margins and working capital improved, due to strong performance in the consumer electronics segment. Management expects this improvement to continue. As WC improves, debt fell from `1bn to Rs700mn. We expect EPS to grow at a CAGR of 26% over FY19-21E, given strong traction with key customers in its TV and lighting business. The mobile segment should also grow with addition of new customers. Given the better-than-expected Q1...

Despite the challenging environment LATL reported 3% YoY growth in revenue to ` 2.87bn supported by strong growth in sheet metal (led by decent volume of Bajaj Auto in 1Q) and aftermarket division. EBIDTA margin remain flat QoQ to 8.7% (in line estimates) while APAT de-grew by 19% YoY to `113mn led by higher depreciation and interest cost. During the quarter, the company has won new business for supplying Gear shifter for Scorpio(M&M;) and exhaust system for Hector (MG Motors). The company has guided for single digit growth in revenue for FY20(excluding...

Decent show amid tough environment, growth levers intact Subros 1QFY20, revenue beat estimate to ` 5.7bn (+7% YoY) led by wining new business (HVAC for new Wagon R and AC kit for Renault Nissan for Brazil facility) and incremental revenue from Home AC business (` 620mn). EBIDTA margin contracted by 111bpsYoY to 9.6 % on account of weaker product mix (low margin in home AC). Despite the slowdown in PVs segment Subros' core PV AC business managed to grew in single digit in 1Q led by shift in demand towards petrol variants plus rising wallet share...