Dolat Capital Broker Research reports

Pro forma NPAs were sharply higher at 5.88% (up 60 bps QoQ), led by slippages of Rs140bn or 2.5%. Over 60% of these came from the agri portfolio. However, ~Rs.60bn of these have been already upgraded in...

We expect healthy revenue/ APAT CAGR of 13.9%/ 16.8% over FY2023E. Moreover, revenue/ APAT growth slows down to 1.2%/ -8.1% in FY21E due to lockdown impact and jumps back to revenue/ APAT growth of 22.4%/ 38.7% in FY22E driven by stabilization of labour and supply chain issues coupled with execution from 4 HAM/ 2 EPC/ 1 Irrigation project where AD is expected between Dec'20/ Jan'21 and 1 water supply project in Q3FY21E. The current core construction valuations of 10.5x/ 7.6x FY21E/ FY22E EPS are attractive. Thus, we...

Management estimates ~1.2% of customer assets (~Rs75bn) to be restructured, 2/3 of which is expected to come from corporate portfolio and rest from retail/SME. The bank has provided ~20% against this (part of the 1.9% above). Of the corporate restructuring, over half is likely to...

Canara bank reported better than expected NII and PPoP growth of 29% and 32% YoY respectively on an amalgamated basis, driven by improved spreads, healthy growth in fee income, elevated treasury gains, and high recoveries from w/off accounts. Collection efficiency stood at 92-95% for the month of Sep, including past arrears. Management estimates ~Rs130bn or 2% of loans to be...

Results above estimates on revenue front as there was an overall revival seen in volumes across segments. Gross margins expanded by 425 bps YoY driven by higher realizations, better product mix and...

Cadila reported an in-line 2Q driven by strong growth across India, US and the API segment offsetting the muted growth in consumer segment. Revenue grew 16% YoY, an improved product mix (double digit growth in India formulations and US sales at $230mn, up $13mn QoQ) led to healthy gross margins at 64.9%. Impact of MEIS offset lower marketing spends, thereby, restricting EBITDA margins at 22.6%. Adjusting for the one-time charge of Rs1.3bn, for NCD purchase and forex loss, PAT grew 63% YoY at Rs6.2bn. Cadila strengthened its balance sheet by reducing debt of Rs27bn...

Escorts (ESC) reported strong all-round performance in Q2FY21. EBITDA jumped 137% YoY to Rs 3bn with significant margin expansion at 18.3% (+878bps YoY; +708bps QoQ) on account of better mix (2/3rd...

We expect 9.3%/ 16.2%/ 15.8% revenue/ EBITDA/ PAT CAGR over FY20-23E led by -8.8%/ 17.0%/ 10.0% volume growth and 11.2%/ 0.0%/ 0.5% realization growth in FY21E/ FY22E/ FY23E. We introduce FY23E. We increase our revenue estimates by 5.5%/ 5.2% and EBITDA estimates by 37.2%/ 26.3% for FY21E/ FY22E factoring H1FY21 results. Accordingly, we increase our PAT estimates by 64.9%/ 42.3% for FY21E/ FY22E. We like TRCL for its strong distribution (supports its industry leading volume growth) and healthy profitability metrics...

OFSS reported inline results with a revenue growth of 3% YoY at Rs 11.9bn (below DE at Rs12.5bn). OPM for the quarter stood at 46% up 360bps YoY (down on QoQ basis), as cost efficiency gets further deep. EBIT and PAT were in line at Rs 5.5bn (DE Rs5.5) and Rs3.9bn (DE 3.9bn). OFSS signed new Licences worth US$13.4mn in line with our estimates ($12mn in Q2FY20) that included 13 new deals across including 4 in developed markets (refer Exhibit 6) and also witnessed 18 go-lives in Q2. Improved deal momentum led by Digital acceleration theme (Banks...

Zee's Q2FY21 operating performance was in-line with revenue / EBITDA / APAT decline of 19/43/51% YoY. As company promised upon improvement in 5Gs (governance, granularity, growth, goodwill, and gusto) in Q1FY21, the sudden pop-up of failure of related party viz. Siti Networks to meets banks obligations was a key-negative surprise that wasn't called out by company. Zee provided for balance outstanding receivables from Siti of Rs 0.8bn (Rs 1.2bn provided earlier). It also provided Rs 0.97bn (Rs 2.07bn o/s)...