Monarch Networth Capital Limited Broker Research reports

PAP: Valiant is currently producing PAP in small quantities (~100MT/m) and is working towards continuous PAP production as the same would result in reduction in overheads. Going forward, the management highlighted that they should be able...

We retain BUY on CRISIL with TP revised upwards to Rs3,700. The upward revision to our TP follows visibility for a superior revenue/earnings growth over CY21-23E (also evident from consecutive quarters of robust growth) as each of the revenue segments are set to fire on all fronts. Our affirmative stance is backed by the favorable macro's that bodes well for the rating business, and synergies/leverage benefit from the acquisition, products, and solutions services, that will aid in robust growth for the research division. Diversified revenue mix, levers for margin expansion, and solid return ratios have seen CRISIL's valuation multiplies stay at a premium and to its peers. With...

Is maintain our BUY rating with a revised target price of Rs.375 (Rs. 300), the upward revision in price target is on back robust growth in the current quarter and a strong outlook for the future. Borosil posted its best quarterly performance, led by a strong uptick in both Consumer and Scientific divisions. While Q2FY21 was impacted by the pandemic, the company's performance was better than the normalized quarter (+27% compared to Q2FY20). The consumer division continues to gain momentum, with sales in Opalware, Hydra glassware and Appliance gaining traction, this optimism is further backed by positive feedback from channel partners. The Scientific division continues to perform well, despite...

Outlook: Due to the second lockdown, 1QFY22 was a dampener for the entire auto industry. Post that, we feel that Fiem is now leveraging its diversified client base and leveraging old relations to cater to export markets too. The lamp development for foreign models (Yamaha & Harley Davidson) and domestic development (Hero Motocorp & TVS) should continue to create more visibility for Fiem. We maintain that...

We revise our Fair Value to Rs1,480 (earlier Rs1,420) with revisions in our FY22/FY23 estimates driven by strong growth visibility and high demand witnessed across segments. The company posted impressive revenue growth of 10% QoQ (+32% YoY) driven by increasing share of digital services coupled with buoyancy in specialised testing services (led by early investments in next-gen services as highlighted in our recent note) and we believe that this strong revenue growth should sustain going forward. The company's margin profile witnessed expansion sequentially despite persisting supply issues and we believe margins are likely to further expand from current levels. Given the company's focus on digital...

Valuation and risks: We expect Mayur's revenue/EBITDA/Adj PAT to grow at a CAGR of 20%/18%/19% over FY21-23E. We have marginally revised our estimates due to continued high RM pressure and lower PU sales given the current run rate. Owing to the operating leverage visibility, we maintain 18x P/E multiple and maintain our existing fair value at Rs610. Our DCF fair value base TP stands at Rs570 (Bull/Bear TP of Rs740/340). Risks include slower-than-expected recovery in global...

Alembic Pharmaceuticals Ltd (ALPM') reported in-line numbers for Q2FY22 on the back of strong momentum in domestic business and better gross margins (~74% vs ~71% in Q1FY22). US business continued to remain under pressure on the back of pricing pressure in the base business and full impact of Theophylline competition in Q2FY22. Domestic business (ex Azithromycin) grew >30% YoY as per the management which was led both by margins and price hikes. On Rhizen, TG Therapeutics have guided USD 50mn sales for Ukoniq over next year which would entail higher royalty revenues. While the management has withdrawn its FY22 EPS guidance, higher launch rate, faster remediation of Injectable unit and approval for CLL indication remains key positive triggers for the medium term.We maintain BUY on the stock, with a March-23 TP of Rs1,200, thus an upside of 51% over the CMP. ALPM is currently trading ~18x / ~13x PE for FY22E / FY23E. Delay in Remediation of F3 (New Injectable Facility), USFDA action in Panelav F1 and domestic...

We maintain a BUY rating with an unchanged TP of Rs.2,830. Sundaram witnessed sharp improvement in its disbursements, further reiterating our stance on the revival in the CV cycle. We expect the growth momentum to accelerate further given the positive high frequency indicators (Oct 21 GST collections at second highest), pick-up in CV sales etc that hint to strong tailwinds. While restructuring came in higher at 7.17% (prudent approach being implemented), Stage 3 remains comfortable (declined QoQ) and best-inclass reflecting strong underwriting. AUM growth acceleration, improving credit costs, and margin expansion augur well for core RoEs at 17-18%. We...

Shalby Ltd (Shalby') came out with its Q2FY22 results which reported sequential margin degrowth on the back of implants businesses losses and reduced covid related tailwinds (16.2% vs 25.5% for Q2FY21 vs 20% for Q1FY22). Implant business reported USD 1mn revenue in Q2FY22, guidance for FY22E and FY23E at INR 50crs and INR 100crs respectively. First Ortho Franchise started in Udaipur, expected to open 50 franchises across India over medium term. The newer hospitals (892 beds) reported ~12% EBITDA margins with 37% revenue contribution while mature hospitals (228 beds) reported ~37% EBITDA margins with 29% revenue contribution. Ramp-up of occupancy in newer hospitals will improve the overall EBITDA margin profile. Key optionalities including the Implants business and the franchisee business are yet to play out. We retain a BUY on Shalby with a target price of Rs280, which is 81% upside on CMP. At...

Valuation and rating: We value La Opala on Sept.23 EPS of Rs.12.4 (Rs.11.8) leading to a target price of Rs.425 (Rs.400) an upside of 21% from current levels. Change in target price is due to an upward revision in earnings by 9.6% and 6.2% for FY23E and FY24E respectively. La Opala reported the highest-ever quarterly revenue and we expect a similar kind of buoyancy to continue going forward, with growing demand for Opalware products. Channel checks have indicated strong demand trends and we believe La Opala is well-positioned to capitalize on this. With new Opalware capacity expected to come on...