Resumption of new product launches to drive growth ahead While the EV threat together with the supply constraints due to semiconductor shortage have made MSIL underperform the NIFTY massively during the last one year, we believe that its new launch cycle aided by its massive scale and network advantage makes risk-reward favourable....
FY'21 saw the adverse impact of the Pandemic & Lockdowns which resulted in losses due to lower absorption of manufacturing costs. We believe the situation has improved since June this year with states opening up along with increased pace of vaccinations....
ENDURANCE TECHNOLOGIES | Auto & Auto Components .... Multiple drivers in place! Endurance Technologies (Endurance) has a track record of outperforming the underlying industry growth on the back of increasing content supplied to existing customers and adding new customers. Its order wins in the last 3 years (25bn in India and EUR130mn in Europe) should drive good growth in FY22E and FY23E. We expect 21%/24%/31% CAGR in Revenue/...
Non-interest income to drive growth; ROA/ROE improvement by FY23E Indian Bank with its healthy liability franchise, low cost of funds and compelling valuations has now begun to witness synergies post its merger with Allahabad Bank. The Bank offers a wide range of services including foreign currency banking and specialised overseas branches in Chennai, Bangalore and Mumbai exclusively handing foreign exchange transactions. The bank has different...
Recovery in Ad revenues, new movie releases remain key to performance in ensuing quarters Sun TV's Q1 FY22 numbers came slightly below our expectations as Ad revenues declined by 22.5% qoq, while growing 93.7% yoy on an extremely low base of last year same quarter. The sequential fall was on the back of re-emergence of Covid Wave#2 in the quarter as advertisers reduced their ad spends. Even due to absence of any movie releases, the advertising revenues...
Losses in Q1, but demand recovery may lead to a strong bounce back in H2 FY22 and FY23 Ashok Leyland (AL) reported losses in Q1 at 2.8 bn, which were lower as compared to losses of 3.9 bn reported in the base quarter. The realizations were down by 4% yoy and up by 3% qoq on price hikes taken during the quarter sequentially. The company's market share more or less remained stable at 27% despite the southern markets getting impacted. LCV market share saw a...
segment as well with increasing market share yoy. In the executive bikes segment as well their 1 Year Avg. Dly Traded Volume (in lakh) bikes are performing well. In the premium bikes segment, the company attained market share of 5% on the back of X-treme 150 R and X-Pulse bikes. Additionally, in exports markets the company...
crystallizing into NPLs in coming quarters. However, the provisioning expense of 14.3bn (7.7bn in 4QFY21) has translated into substantial improvement in PCR to 76.3%. Moreover, the covid provisioning (6.5bn) stood 114bps of net advances. The Bank witnessed 19bps improvement in NIMs to 4.36% because of healthy YoA (11.6% v/s 11.2% sequentially) and reduction in CoF (5.27% v/s 5.45% sequentially). As expected, the bank reported a credit de-growth of 3.6 % sequentially. We estimate the growth to remain tepid for FY22E but adequate provision is likely to give comfort to the balance sheet. Factoring the in-expensive valuation (0.9x PBV) and a stable...
LIC Housing Finance (LICHF) is one of the largest deposit taking Housing Finance Company (NBFC HFCs) in India. It has different product verticals of LAP and Developer Loans. Given its healthy liability franchise, low cost of funds, stable return ratios and promoter backing, we believe LICHF shall emerge stronger by the end of FY22. Meaningful pent-up demand in Metros & Tier 1/2 cities...
Raymond witnessed a strong performance on a yoy basis owing to multiple measures taken during the previous year and also due to a lower base effect. However, sequential growth was impacted due to the onset of 2nd covid wave beginning from April and seasonality. The quarter witnessed localized lockdowns in the form of restricted hours of operations during weekdays,...
