ICICI Securities Limited Broker Research reports

Rapid ageing, greater life expectancy, lack of exercise and altered lifestyles are driving incidences of osteoarthritis among Indians. Knee replacement surgery in India has been growing in double digits over the years. It is expected to emerge as fourth most common cause of physical disability in India in the next decade. Shalby is a market leader in procedure of arthroplasty (source: F&S; Report). It has ~15% market share of all joint replacement surgeries conducted by organised private corporate hospitals in India. It has performed more than one lakh joint replacements till date....

The US (select pack) portfolio is expected to grow ~7% YoY to | 12808 crore due to 1) YoY strengthening of US$ vs. rupee (3.6%), 2) new launches (Dr Reddy's) and 3) increased traction/recovery in specialty, injectable portfolios (Albuterol Cipla, Lupin, Insulin Biocon, Injectables - Aurobindo). Domestic formulations (select pack) are expected to grow ~10% to | 9908 crore. Europe is expected to grow ~15% YoY driven by new launches, ramp-up in existing products and currency benefits. API segment is also expected to post strong ~16% YoY growth on the back of a low base effect and shortterm opportunities amid Covid. On the hospitals front, continued QoQ...

In our coverage universe, EIH Ltd is best placed on the B/S front. The recent fund raising of | 350 crore thorough rights issue would improve debt/equity mix to 0.1x from 0.2x. While Indian Hotels has a strong promoter backing, its debt/equity is 0.7x, which combined with capex requirement could lead to further rise in D/E to 0.9x if current Covid issue persists for a longer period. Lemon Tree Hotels, being on a capex mode, is...

During Q3FY21, there was a sequential improvement in base metal prices. During the quarter, average zinc prices on the LME were at US$2628/tonne, up 12% QoQ & 10% YoY while average lead prices were at US$1902/tonne, up 2% QoQ, albeit down 7% YoY. Similarly, average aluminium prices on LME were at US$1917/tonne, up 12% QoQ, 9% YoY while average copper prices on the LME were at US$7178/tonne, up 10% QoQ and 22% YoY. Movement of base metal prices on LME...

In Q3FY21, we expect construction companies to return to topline growth driven by near optimum labour availability, pick-up in execution. For real estate companies, key highlight will be strong residential sales volumes growth led by factors like pent up demand, benign interest rates, measures like stamp duty cut in Maharashtra. However, financial numbers of real estate companies will look optically weak due to rental waiver in retail...

In Q3FY21, we expect construction companies to return to topline growth driven by near optimum labour availability, pick-up in execution. For real estate companies, key highlight will be strong residential sales volumes growth led by factors like pent up demand, benign interest rates, measures like stamp duty cut in Maharashtra. However, financial numbers of real estate companies will look optically weak due to rental waiver in retail...

Double digit revenue growth expected in coming years We believe growing virtualisation of business is driving multi-year growth in IT spends. We believe IT companies will be key beneficiaries of this multiyear technology transformation phase. In the current phase, enterprises are building a cloud-based foundation that will serve as a resilient, secure and scalable digital core. In subsequent phases, enterprises will see new age technologies developed around cloud and will lead to new business models & differentiated customer experiences. TCS' investments in building deep expertise on these platforms, in research & development spends and in...

Average diesel prices are up ~10% YoY, which will lead to a rise in freight cost by | 55/tonne. Also, petcoke prices inched up 26% QoQ (up 35% YoY). However, players switching to coal would help restrict its impact to ~1214%. This would lead to another cost impact of | 90-100/tonne during the quarter. On the other hand, we expect cost rationalisation drive initiated during H1 to keep overall cost of production under check. Also, cement prices despite QoQ correction are up 5.1% YoY. This is expected to lead to...

Recent RBI data suggests that credit growth has shown a gradual improvement since unlocking of the economy. Large private banks, HDFC Bank (provisional loan book at | 1082000 crore, up 16% YoY for Q3FY21) and Axis Bank, report relatively better credit growth. Disbursement to corporate sector would stay muted amid uncertainty on capex led by capacity utilisation still below pre-Covid level, though some green-shoots are visible. MSME segment may see marginal uptick in disbursement owing to continuation of ECLGS scheme. Retail advances are expected to witness a gradual pick-up...