ICICI Securities Limited Broker Research reports

Deferral of key projects impacts order inflows During Q1FY21, order inflow was at | 1485 crore, down 62% YoY, (| 982 crore from power segment, | 442 crore from industrial segment, | 61 crore from exports segment). Bhel's order backlog as on Q1FY21 was at | 108126 crore (| 86603 crore in power, | 13447 crore in industrial, | 8073 crore in exports). Of total order backlog, executable orders were at 87967 crore. It is favourably placed in orders like Talcher power plant. However, few power projects including Lara, Singrauli and Pench power plants are getting...

We value AAL at | 215 i.e. 9x P/E on FY20 EPS of | 24 and assign BUY rating. Although the 3-W segment is one of the hardest hit due to social distancing norms amid Covid-19, it is also difficult to catch the bottom of the cycle. Hence, at the CMP, AAL provides an attractive risk-reward opportunity with inexpensive valuations, healthy balance sheet and sound capital efficiency....

Near term headwinds, long term revenue trend robust Covid-19 impacted revenue growth in Naukri. Revenues from the recruitment business declined 8.8% YoY vs. sustained double digit growth. Billings also dipped 44.3% YoY in Q1FY21 led by lockdown. However, the company is witnessing improving traffic share across segments (including recruitment). We expect revenues to return to pre-Covid levels in Q3FY21E. In addition, opening of economy and recovery in IT sector will further boost revenues at recruitment business. In 99acres, continued pressure in real...

In the last two years, the usual cycle in sugar sector has been done away with by implementation of sugar MSP, export subsidy & sugar sacrifice for B heavy ethanol. This has led to sustainable earnings for sector. Industry wide sugar inventory would be down to 10.6 million tonnes (MT) from 14.7 MT last year due to 5.8 MT of exports and 0.8 MT of sugar sacrifice for B heavy ethanol. BCML has strengthened its balance sheet with aggressive exports and production of B heavy ethanol. We expect the company to sacrifice 1.2 lt for B heavy ethanol next season, which would keep inventory...

The KV Kamath Committee has submitted its recommendations on financial parameters to be factored in for restructuring of Covid-19 corporate stress. The report indicates sector specific leverage and debt servicing metrics to be gauged by lenders in lieu of restructured accounts by FY22, FY23E. The committee will also validate resolution...

Route Mobile Ltd (RML) provides cloud-communication platform as a service (CPaaS) to enterprises, over-the-top (OTT) players and mobile network operators (MNOs). The company's enterprise solution comprises two primary components front-end that provides an interface for enterprises to integrate with and a back-end that is directly integrated with over 240 MNOs and provides access to over 800 MNOs globally, enabling it to leverage their SMS and voice channels for digital communication (Super Network). The company's total income & EBITDA has grown at a CAGR of...

YTD, both production, offtake remain lower YoY In the current fiscal (YTD), the company witnessed a muted trend in both production and offtake volumes. During April-August 2020 (YTD), CIL reported production of 195.5 MT (down 7.0% YoY) while offtake during the period was at 208.4 MT (down 13.4% YoY). During the current fiscal, August 2020 is the only month where the company was able to report growth in production and offtake on a YoY basis. For August 2020, CIL's coal production increased 7.1% YoY to 37.2 MT (34.7 MT in August 2019) while...

With the reduction of debt, the company would see strong earnings growth in FY20-22E. We expect 51.7% CAGR adjusted earnings growth in FY20-22E (FY20 base was impacted by exceptional expense of | 40 crore related to acquisition & earnings were also negatively impacted by Covid related disruption). Though return ratios would remain in single digits for the next three to four years, we see potential growth opportunities in its brand through increasing penetration & new launches (smaller SKUs & variants). The stock is available at 24.5x FY22E earnings. We value the stock at 35x...

As on date, 96% of EBOs (742), 90% of large format stores (1928 stores) and 80% of multi branded outlets (54000+ touch points) are operational. The company is currently operating at 85% capacity utilisation. E-commerce channels have seen significant growth with both own website and outside e-com platform revenue share increasing. In the offline space, recovery in LFS has been sluggish owing to lower footfalls in malls. The management indicated healthy recovery especially in the athleisure segment from July. Also, primary sales in August have almost reached 100% of pre-Covid level...

Amid Covid-19 ARC business reported healthy AUM growth of 53.5% QoQ at | 66300 crore and recoveries at | 470 crore. For AMC business, AUM was at | 29400 crore with gross revenue at | 25 crore (yield at 0.08%). Higher operating costs marred EAML's PAT growth and led it to come in at | 2 crore....