At 90%, India recycles one of the highest percentages of PET waste in the world, which is more than many advanced economies such as Europe and Japan. Increasing adoption of products made from PET waste will drive demand for PET recycling solutions. Growing consumption of packaged food and beverages will ensure adequate PET waste supply for players in the recycling value chain. India...

Increasing prevalence of zoonotic diseases will drive demand for veterinary API products globally. Increasing awareness about preventive animal healthcare and judicious...

A branded retail play in the vast mid-premium segment of the apparels market, Cantabil has developed a scalable business model and looks to capture the huge market opportunity by expanding aggressively. Cantabil's strategy of using a combination of own and outsourced facilities in manufacturing and retailing allows it to operate an asset-light model while expanding rapidly and effectively managing inventory. With a revamp of business model, aggressive target for average sales per store looks achievable while brand loyalty, increasing footfall...

MT Educare's (MT's) FY19 core operating results are line with our estimates. The company reported a profit at the operating and net levels after registering losses in FY18 on account of one-time expected credit loss (ECL) provisions relating to Aryan Foundation, Sri Gayatri Educational Trust, certain government projects, and other debtors. While operating revenue came in marginally lower than our expectation, EBITDA was in line, leading to 50 bps higher EBITDA margin (12.5%). PAT was higher than our estimate due to higher-than-expected other income....

Gujarat-based Jiya Eco Products Limited (JEPL) manufactures bio briquettes, bio pellets and processed agro waste. Biomass pellets and briquettes are made from agricultural, forest and other bio wastes. With abundant availability of waste, biomass presents a sustainable economic opportunity across the value chain. Demand for biomass fuel will increase going forward, driven by its lower cost, high energy content, concern for the environment, and emerging opportunities such as biomass co-firing at thermal power plants....

MT is a strong player in school and higher secondary science coaching in Maharashtra. It also has a good presence in Karnataka where it manages pre-university colleges in partnership with Aryan Foundation. MT's key strengths include 3 decades' experience, top-ranking students, and strong brands. The company's strategy to collaborate with local partners in new markets and exploring different models to expand should enable it to accelerate growth going forward. The company's government projects vertical is expected to contribute...

Filatex India Limited (FIL), a polyester yarn and chips manufacturer with production facilities in Dahej (Gujarat) and Dadra, is one of India's top five polyester filament yarn manufacturers. FIL's state-of-the-art manufacturing facilities with stringent quality control, diversified product mix, a pan-India client base, and a healthy share of export income will enable the company to achieve industryleading growth going forward. Slowdown in the Chinese polyester yarn industry due to the government's clampdown, driven by environmental concerns, and a...

We expect KCL to record strong revenue growth over FY19 and FY20, aided by execution of ongoing and planned projects, and a growing Nashik real estate market. The company is currently in the process of executing 11 projects while 3 further projects are planned. The project pipeline provides strong revenue and cash flow visibility. We expect margins to improve from FY18 levels, driven by increased operating efficiency as well as lower finance cost as a percentage of revenues. Consequently we expect healthy EPS growth in spite of the dilutive impact of equity capital infusion via the IPO....

KCL has a strong project pipeline of 13 ongoing and 3 planned projects with an aggregate carpet area of approximately 17.6 lakh sq ft. Further, its experience in affordable housing puts it at an advantageous position...

The marginal improvement in EBITDA margins comes on the back of 220 bps sequential increase in 1Q FY18, mainly contributedbyreducedpowercost.Thisreducedpowercostis attributable to the commissioning of a solar power plant at Khopoli. According to management, this had helped the...

Libas is uniquely positioned in the mid-segment of Indias ethnic designer clothes market where there are not many organized players. While the company specializes in customized offerings and boasts of having celebrities in its clientele, it is looking to expand its ready-towear line. Libass wholesale business has some marquee corporate clients such as JW Marriot, Novotel, Armani Hotel Dubai, Atlantis The Palm Dubai, BMW, Skoda Auto, the Emaar Group and the Indian Premier League. Growth in the companys retail business will be driven by its aggressive...

Sun Pharmaceuticals Ltd. (Sun Pharma) total income increased 7.1% q-o-q but decreased 19.4% y-o-y to Rs 66,503 mn in 2Q FY18, falling short of our expectations for the quarter mainly due to loss in business from US market due to...

Rajoo Engineers Ltd (Rajoo or the Company) reported tepid financial result for 2Q FY18. The total revenue of the Company was flat at Rs 274 mn Y-o-Y (Rs 272 mn), whereas Q-o-Q the revenue increased more than 2 fold (Rs 126 mn). The revenue was low for 1Q FY18 due to GST impact. The sales have picked up since then and the management foresee substantial potential. The Company has robust order book, executable in next 9 to 12 months. EBITDA for the quarter increased by 22.8% Y-o-Y to Rs 45 mn (Rs 37...

Aurobindos revenues grew 20.1% q-o-q and 17.5% y-o-y to Rs 44,462 mn in 2Q FY18 exceeding our expectations. Revenue growth was driven by 9.9% y-o-y growth in US and 38.6% y-o-y growth in Europe during the quarter. API business also revived during the quarter and grew at a modest 5.0% y-o-y. Adjusted EBITDA increased 30.6% q-o-q and 20.3% y-o-y to Rs 11,276 mn during 2Q FY18. Adjusted EBITDA margin increased 202 bps q-o-q and 58 bps y-o-y to 25.4% in 2Q FY18, exceeding our expectations, mainly due to lower than expected Cost of Goods Sold as percentage of revenues during the quarter....

Rama Steel Tubes Ltd (RST) reported a better than expected financial performance for Q1 FY18. During the quarter, net sales increased 11% y/y to Rs 729m. Q1 FY18 EBITDA increased 23% to Rs 67m (Rs 55m a year ago) while the EBITDA margin came at 7.4%. Improvement in EBITDA Margins was mainly contributed by reduced power cost. The commission of solar plant at Khopoli has reaped the benefit for the Company and has reduced its power cost. As...

Cipla's total income remained flat q-o-q but decreased 3.4% y-o-y to Rs 35,251 mn in 1Q FY18 falling short of our expectation. Cipla's domestic business recorded 12% y-o-y decline during the quarter mainly due to destocking in lieu of implementation of GST. EBITDA increased 27.7% q-o-q and 5.8% y-o-y to Rs 6,465 mn in 1Q FY18. EBITDA margin increased 421 bps q-o-q and 159 bps y-o-y to 18.3% in-line...