ICICI Securities Limited Broker Research reports

The company has historically seen higher debtor days that has led to high working capital requirement and even equity dilution. However, Intellect has now modified its incentive structure to improve collections. The same is visible in Q1FY21 results (debtor days is down to 126 days from 150 days). Lower working capital requirement, improving margins may boost operating...

Credit growth remained muted with advances at | 65170 crore, down 4% YoY, corporate book de-grew ~18% YoY to | 23461 crore. J&K; book grew 10.3% YoY to | 44277 crore while ROI book was down 14.1% YoY to | 26615 crore. Deposit traction remained healthy at 12.1% YoY to | 99691 crore, mainly driven by growth of 22.1% in savings deposit partially offset by decelerated in term deposits at 4.1%. CASA continued to remain strong with ~357 bps YoY improvement in CASA ratio at 53.57%. Amid uncertainty, credit cost continued to remain higher at | 266 crore, of...

Healthcare expansion moderates; focus on asset sweating Notwithstanding short-term fluctuations stemming from Covid, rapid expansion, maturity of older hospitals have kept overall growth tempo at 1214% per annum. After an intense capex cycle, especially in FY14-18, the company is focusing on profitability, return ratios with calculated capex moderation. This reflected in a marked improvement in both EBITDA margins, RoCE. The new hospitals and ventures are turning profitable ahead of schedule on the back of a judicious case mix besides better occupancy and other matrix. We expect healthcare sales to grow at ~8% CAGR in FY2022E to | 7544 crore mainly due to growth at new hospitals, AHLL....

PVR (with industry association) is in consistent dialogue with the government but there has been no confirmation on reopening yet. It remains hopeful of getting permission to reopen cinemas in Unlock 5 phase i.e. October. Capex plans have been put on hold currently and will be reviewed when the situation normalises. They indicated 30 screens are in the pipeline for FY21E while another 28 screens are under fit out phase with total capex of | 115 crore. We bake in 20 screens addition for FY21E and 65 screens addition in FY22E. Consequently, we build in marginal footfalls growth of...

Gradual demand recovery post ease in lockdown restrictions While the Q1FY21 performance was largely hit by lockdowns, dealers also shied away from building inventory in the wake of various uncertainties. However, according to market leader in the plastic furniture space, JulyAugust saw ~85% demand recovery post ease in lockdown restrictions. We believe demand was largely driven by tier II, tier III cities where impact of pandemic was limited. We also believe, backed by strong supply chain management, organised players like WPL would have gained market share from regional/unorganised players as latter's business activities were...

FY21 order intake likely to be ~| 700-750 crore.. During FY21, the management expects order intake to the tune of ~| 700750 crore. In the current fiscal year, majority of order intake would be from the defence segment. Of the cumulative order intake of ~ | 700-750 crore in FY21, ~70% is likely from the defence segment (including the aerospace). During FY20, Midhani booked orders (order intake) to the tune of | 786 crore. Of the orders booked during FY20, ~| 506 crore was from the space segment, | 229 crore was from the defence segment, | 28 crore was from...

Global brands in textile, apparel are exploring competitive sourcing alternatives to China. India, owing to its competence due to abundant availability of raw material (cotton, manmade yarn/fabric), strong pool of skilled labour at competitive wages can garner a higher share of global garmenting business. Global brands have shown higher preference for vertically integrated garment manufacturers who have control over quality, delivery timelines. KPR, with a vertically integrated model from yarn to garmenting seems well set to benefit from shift in demand from China to other...

Historically revenues have grown at a CAGR of 6% in FY17-20 mainly led by 6% CAGR in pricing. However, the company's paid subscribers have remained flat mainly due to high pricing and focus on metro cities. Nevertheless, over the years, increase in online penetration has led to subscriber growth across tiers. Hence, the company is now focusing on Tier II and Tier III cities to drive subscriber growth. In addition, it is now focusing on increasing market share in the north (that we believe is equally distributed among competitors) and increasing conversion of active (that has grown at...