Dolat Capital Broker Research reports

Muthoot reported a healthy quarter with 6.5% QoQ/28% YoY growth in gold book along with slight sequential improvement in spreads (+10 bps) driven by higher yields and contained opex aiding PAT growth of 26% YoY despite higher provisions from GL/PL delinquencies.

Coforge reported a miss on CC Rev growth of 1.6% QoQ (DE:1.9%) due to decline in BFS (-4%). Adj. EBITDA margin down 111bps QoQ to 17.9% (DE:18.1%) due to visa & onsite ramp-up (wage hike moved to Q2).

Traditionally a Par player, MAXLIFE has significantly diversified its product mix and has made significant strides to capture the protection and non-par segment. MAXF has been able to build a strong franchise with a profitable agency channel. AXIS bank transaction will also give more comfort to the renewal on the bancassurance tie-up which is due to expire in September 2021. MAXF has already delivered strong growth thus far and we believe stock price largely reflects the positives from the AXIS deal as well as top-line growth. As most positives are already...

EIM consol results exceeded our estimates as Revenue/EBITDA/PAT were higher by 4%/22%/10%. This was led by, 1) better margins at RE at 22% (PLe 18.7%, -260bp YoY) and VECV at 6.9% (PLe 5%, +150bp YoY). We expect ~50bp contraction in margins in 2H as higher RM cost will be partially diluted...

Process underway for divestment of steel plant NMDC reported Q2FY21 EBITDA missed our estimates by 5% while it is 4% above consensus estimates. Miss was largely due to lower than expected realisations, partially offset by lower costs. Unlike past, NMDC has been forthcoming this time in undertaking price hikes in tandem with strong global prices and shortage in domestic market....

CAPA completed for Unit-I, IX, VII and XI. We increase our earnings estimate by 5% for FY21E and FY22E on the back of early normalization of Auromedics (Gx-Injectable) in US. The 2Q earnings were higher than our estimate due to much higher growth in EM and ARV....

Consol capex guidance at Rs4.5bn for FY21. Expect no major capex in 2H. to 40.8k (PLe 44.6k). The sharp decline in volumes was led by ~33%/44% YoY there has been some initial pickup in class 8 trucks (~19% of S/A revenues) along with ramp-up in PVs, the outlook for industrial remain weak with no...

Stake sale in KNR Walayar BOT to Cube Highways concluded at equity value of Rs3.85bn and company received first tranche of Rs3.1bn. KNR Constructions posted a strong set of numbers with revenues (up 10% YoY) and margins above our and street estimates. Labour availability and operational efficiency across project sites have been recovering gradually,...

Shree cement (SRCM) reported Q2FY21 EBITDA above our/consensus estimates (CE) by 7%/20% at Rs9.9bn, up 17% YoY. The beat was largely led by better than expected realisations. SRCM has evolved as a mature player over last couple of years with discipline on both volumes and prices in its North markets (constitutes 2/3rd of its volumes). This is reflected in highest ever margins since FY09. However,...

Next leg of Aarti's growth will ride on long-term contracts worth Rs110bn, which has been delayed and will start from Q1FY22E. We tweak our FY21 estimates to factor delay in commissioning of long term contract and make other changes. AIL's near term growth trajectory will face...

returned to normalcy (96.2% in Oct'20) and is likely to emerge stronger from and 49.8% YoY) 2) lower competition as several smaller players have gone out of business 3) closure of dine in focused 105 stores which will be replaced...

Given strong bid pipeline for BOT projects, management guided Rs60-70bn order inflows in FY21E. Order book stands at Rs121.6bn (2.9x TTM revenues) IRB reported decent quarterly performance in line with our estimates led by...

OB at ~Rs119.2bn as on 2QFY21 (~5x TTM revenues); further bagged Rs11.4bn project in Oct'20 and is L-1 in orders worth ~Rs5bn. ITD cementation reported operational losses during the quarter despite healthy execution as the company made provisions of expected losses on...

Negotiations restarted for SBI Macquarie stake sale with prospective buyers and deal progressing in right direction as per management. ASBL reported decent quarterly performance with execution ramping up (6% YoY growth) across its project sites led by rise in labour availability. Margins...

With all approvals in place, stake sale in Ahmedabad Ring Road (Rs3.4bn) expected to conclude and proceeds are likely to be received by Dec'20. Sadbhav Engineering posted a decent set of numbers with revenues in line with our estimates while margins remain healthy at 12.1%, beating our and...

We cut our FY21E EPS estimates by 50% given the uncertainty in timeline regarding complete resumption of rail services. However, our FY22E/FY23E estimates are broadly intact as 1) resumption of Tejas Express from 17 th Oct and 2) increase in convenience revenue to ~25% of the pre-COVID levels in...

Lowest tariffs, superb pipeline network and well-entrenched reach in the domestic LNG markets to help PLNG compete with new terminals. We increase our FY21E estimates by 9% to factor in strong H1 performance, delay in commissioning of the Kochi-Mangalore pipeline and make other...

Management raised its revenue guidance for FY21 to Rs22bn (vs earlier guidance of Rs20bn), with EBITDA margins in the range of 13-14%. JKIL reported a healthy operational performance with revenues coming in above our and street estimates and margins showing resilience through...

We increase our FY21 earnings estimate by 9.8% to factor in higher margins and make other changes. IGL remains an enviable business model with high volume growth due to geographical expansion and addition of new buses and taxis. Also, shift to private vehicle ownership post Covid pandemic to drive CNG volumes. IGL remains a play on rising pollution concerns as ban on...