Karvy Broker Research reports

Credit Tracker - Stabilises at Low Levels: Credit offtake in the economy continues to remain subdued despite availability of ample liquidity with banks.

Gross Margins - A Positive Surprise: Revenue for Q2FY21 was 7.4percent lower on YoY basis but EBITDA was up significantly,at 21.2percent on account of higher gross margins and good cost control measures.Gross margins were higher by 505 bps on account of lower inventory, tradedgoods and commodity prices.

October Auto Volumes - Growth Picks up Due to Festive Demand: Auto companies continue to push ahead with robust growth in wholesale sales volumesin passenger vehicles (PVs) and two-wheelers (2W) in the month of October 2020 as growth picks up due to festive demand.

Focus is on Building Provision Buffers:Indusind Bank (IIB) reported slightly subdued set of numbers. NII growth at 13percent was below normal run rate due to lower advances growth and fall in NIM.

Volumes Surprise Positively: Yarn, Fabric and garment volumes surprised positively.

Valuation and Risks: We believe KMB is ready to grow as it has shifted its focus to asset side withemphasis on customer acquisition through organic or inorganic route by keepingan eye on risk.

Outlook and Valuation: HDFCB continued to report steady and in-line performance amid challenging environment.

Valuation and Risks: Despite concerns over near-term asset quality risks and impact of high credit costs on earnings, we believe all negatives and concerns are adequately priced incurrently as the stock is trading at historically low valuations.

September Auto Volumes - Festive Cheer Creeps in: Auto companies continue to push ahead with robust growth in sales volumes in passenger vehicles (PVs) and two-wheelers (2W) ahead of festive season.

Credit Growth - Subdued Pace Continues: Credit off take in the economy continues to remain subdued despite availability of ample liquidity with banks.