Monarch Networth Capital Limited Broker Research reports

Tata Steel Long Products (TSLP) is a leading long steel (bars and wire-rods) manufacturer with client base in high value-added sectors (Automotive, Industrial products), backed by best-in-class backward integrated plants. TSLP has seen massive cost improvements in last 18 months after integration of acquired facilities of Usha Martin and is all set to see massive earnings growth going ahead led by i) low-cost operations with backward integrated facilities, ii) increased forward integration and higher value-added finished steel sales and iii) massive reduction in leverage leading to lower interest costs. TSLP also announced its proposed merger with Tata Metaliks (TML) in Nov'20 which is expected to...

Outlook: With a normal monsoon expected this year too, we think that low reservoir levels in Northern and Eastern India should not pose a challenge thus, keeping the rural water supply in check. While all the auto segments are facing a semiconductor shortage, we feel that tractors should not be affected by this much. With a high base of FY21, we...

We initiate coverage on CRISIL with BUY and target price of Rs2,260. This best-in-class industry leader delivers a diversified revenue mix, superior margins, solid return ratios, and free-cash-flow yield, unique to very few companies. Flight to quality has seen investors/borrowers prefer CRISIL, propelling it to be the best play in an otherwise crowded rating space. Led by new products and solutions, and acquisitions, CY20 saw the research segment report 20%+ YoY growth, highest since CY12. With improving macros, market share gains, cost rationalization, and synergies from acquisitions, we see CRISIL's revenue/earnings growth rates accelerate over CY20-22E. As a result, we...

Leading suppliers of engines to auto OEMs with high market share in 3W segment. As on 3QFY21, the company derives its revenue from: engines (47%), aftermarkets (25%), E-mobility (13%)and others (15%). Clients: Tata Motors, Piaggio, TVS, M&M;, Atul Auto We feel a P/E range of 20x-25x should be justified for Greaves which leads to a fair value range of ~Rs160200, translating into upside range of ~19%-49%. High wallet share with key 3W OEMs...

We recently interacted with Borosil, a household name in the consumer houseware industry, which primarily operates its Consumer Products Division (CPD) and Scientific and Industrial Products Division (SIP). In its kitchenware segment, the company is rapidly expanding to cater to entire kitchen requirements beyond its traditional glass and opal. In the SIP division, the company is expanding its product portfolio from Lab Glassware, where it has 60% market share to lab equipment and pharma packaging. A brief consumer and dealer survey that we carried out also...

INDIA l Institutional Research l BFSI l 05 April 2021 Manappuram Finance l BUY l TP: 255 The Gold' that is set to glitter We initiate coverage on Manappuram Finance (MGFL) with a BUY and target price (TP) of Rs255. We believe, despite this thinly covered stock sporting an appealing combination of diversified product offerings, strong revenue/earnings growth, and respectable return ratios, it is grossly undervalued. Our concerted deep dive analysis reveals a business well-architected to combat external shocks, even as MGFL operates...

We initiate coverage on Jubilant Ingrevia (Ingrevia) with a BUY rating on the stock. Ingrevia has demerged from Jubilant life Sciences limited , effective February 1st, 2021 and to be listed tomorrow (March 19th, 2021). We expect revenues to grow by double-digit in the near-term on the back of stabilization in pricing & demand for Acetic Anhydride, favourable price dynamics in Vitamin B3 and tailwinds in the Specialty segment. Over medium term, we expect new Capex initiatives (INR 950crs) towards key growth areas likely to drive overall business and margin profile. Further, Ingrevia is now less fragile to external shocks on account of de-risking initiatives and forward integrating into value added products. We thus value Ingrevia at 10x EV/EBITDA on FY23E, deriving a base case fair value of INR 420. Our Bull case & Bear case fair value stand at INR 660 and INR 200 respectively....

CMP: Rs265, MCap: Rs9.5 bn l Fair Value: Rs600 Coming of Age and ready to re-rate IFGL Refractories is a well-established player in a hard to master refractories business and has marquee client relationships with a track record spanning 4 decades. The company has come of age in last few years and is likely to re-rate materially led by the following: Blowout Earnings growth after 4-5 years of consolidation IFGL is expected to deliver blowout earnings growth with Consolidated EBITDA expected to double to Rs180-200cr (in FY22-23E) vs Rs90-100cr range of last 3-4 years. This is led by i.) several proactive steps taken by the management (capacity expansion at all domestic plants of Kandla/Orissa/Vizag and recruitment of industry veterans from peers at key positions), ii) gain in market share in...

Company has been ranked 28th in the IPM, has increased its position by 4 ranks in the last 12 months JB Domestic branded generic growth has outpaced the market by ~500bp/yr...

We have revised our TP upwards to Rs190 and retain a BUY rating as we remain confident of Lumax Auto Technologies' (LATL) diversified products and strong aftermarket presence. With a new diversified order book of Rs4bn (~35% of FY20 revenue), we feel that LATL is well poised to cater to a wide array of clients and display its product expertise. A market leadership position in gear shifters should benefit LATL as the shift from manual to automatic cars picks up pace. New BS-VI led products like Urea Tank have started showing solid progress and we maintain our view (IC Link) that the new age products (oxygen sensor, telematics, antennas, and gear shift towers) will further elongate its growth path....