Karvy Broker Research reports

Outlook and Valuation: We upgrade our revenue estimates for FY21E / FY22E by 10% / 10.1% to Rs. 66.3 Bn / Rs. 79.7 Bn due to upgrade in Customs Synthesis, Generics business and Nutraceuticals.

Outlook & Valuation: We downgrade our revenue estimates by 1% for FY21E to Rs. 168 Bn on account of downgrade in India and other key markets while we upgrade by 0.4% to Rs. 187 Bn on account of upgrade in key markets.

Outlook and Valuation: We continue to bank on Relaxo in the medium to long term as the best placed stock in the space on account of a good rural and urban mix and excellent track record of the management, coupled with good financial stability.

Outlook & Valuation: We reduce our Revenues for FY21E/FY22E by 1.4%/1.5% in FY21E/FY22E due to downgrade in domestic formulations and Consumer Wellness.

Valuation and Outlook: We have valued the stock based on 3.2x forward P/EV and 36.3x forward P/VNB with a premium of 1.02x and has arrived at a price target of Rs. 988 with a potentialupside of 13%. We rate the stock as HOLD'.

Rates Left Unchaged, One-time Debt Recast Announced: RBI's monetary policy committee has left all policy rates unchanged on expected lines while retaining the accommodative stance.

Valuation and Risks: Since its listing in Nov 2016, VBL has historically traded consistently within its avg1 year forward PE of 47x. Given the pandemic and economic downturn, we factor in the risk regarding longevity of the economic troubles and value the stock at a discount of ~ 10% (40x) from its 1 year forward PE since listing on CY21E EPS of Rs. 20.8 and recommend BUY'.

Outlook & Valuation: We downgrade our revenues by 4%/2% to Rs 348 Bn/Rs 385Bn for FY21E/FY22E on account of downgrade in Domestic formulations, US/Taro and other businesses.

Key Pointers: yyOn a year-on-year (y-o-y) basis, non-food bank credit growth at 6.7 per cent in June 2020 was nearly the same as in May 2020 but lower than the growth of 11.1 per cent in June 2019. This was due to subdued economic activity because of mini lockdowns and risk aversion at banks.

Indian auto companies have exhibited a sustained trend of reporting month-on-month improvement in volumes.