Phillip Capital Broker Research reports

risk to our FY18 export volume growth of 17%. While we increase our EPS estimates marginally (by 3%) for FY18, we up our target multiple by 10% from 16x based on improved exports business outlook and a revival in the 2W (twowheeler) industry in...

Consolidated revenue grew by 12% yoy to Rs 3bn, higher than estimates of Rs 2.8bn. Systems&projectsincreasedby40;%yoytoRs680mndrivenbygrowthfromrailwayorders. Steel products revenue was supported by contribution from high grade special steel production(~800tonnepermonth)startedsinceQ4FY16.Tubesrevenuegrewby17%yoy toRs398mnwith33%revenuecontributionfromhighvalueCDWtubesvs26%inQ1FY16. EBITDA grew by 40% yoy to Rs 362mn, 26% higher than estimates of Rs 287mn. Margins improved by 230bps to 11.8% higher than estimates of 10.2%. The company had tax provision of 43.5% vs estimates of 36% due to higher deferred tax associated with capex....

Topline at Rs 3bn (+77% yoy) was significantly ahead of expectations (Rs 2.5bn). EBITDA margins at 14.4% were inline with expectations of 14.5%. EBITDA at Rs 437mn (+77% yoy) was ahead of estimates of Rs 320mn. PAT of Rs302mn (+87% yoy) boosted by beat at topline was significantly ahead of our (Rs 178mn) and consensus (Rs 207mn) expectations. Order book at Rs 42.6bn is a robust 4.2x book-to-sales. However, including Rs 6.7bn of order received during July 2016, the orderbook stands at Rs 49.3bn (4.8x book-to-sales) providing high revenue visibility....

8 Margin pressure in Ethos with lower sales, increased competitive pressure and investmentsinIT,marketing&brandinginitiatives; 9 Sequentialrecoveryinmanufacturingbusiness,highgrowthinprecisionengineering...

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Sharp rise in food and fuel inflation; stability anticipated: Annual rise in primary article prices was highest in 31 months; inflation sharply higher for last four months led by food and non food. Food inflation up (+2.4% mom), nonfood inflation (+2.3%), and minerals (+5.0%mom).Higherpriceswereseeninvegetables(+9%mom),fibre(+9%),pulses(+8%, onaveryhighbase),cereal(rice&wheatonthehigherside;),fruits(+6%),andminerals. Mutedriseinmanufacturinginflation:Thiswasup30bpsmomledbydropincommodity prices.8/12(vs.7/12lastmonth)industriesrecordedhigherprices.Higherpriceswereseen in food products, textiles, paper & paper products, leather & leather products, rubber &...

Top takeaways from Q1FY17 : The much awaited price strategy realignment is here. 16% qoq realisation jump is huge (inclusive of subsidies of ~Rs350mn). Given that peer realisations have grown 7-9%, Shree Cement has realigned its pricing strategy and bridged it's realisation gap with peers. This is good news for the sector in our opinion. Resultantly, EBITDA is 28%. 19% higher than our/consensus estimates.

We have raised our realisation estimates for FY17 by 6% and hence upped our earnings estimates. Volume growth at 19% yoy though lower than estimated is still robust (4% qoq, 5% vs. our estimates). However, volume sacrifice has paid off well. Given rich valuations of US$ 280 EV/tonne (~2x replacement cost), the stock will remain rangebound. However,expect limited rerating to US$300?330/tonne if Shree Cement delivers no negative surprises to its price strategy.

JKLC’s operating performance was better than expected driven by better realisations. Exit from capex mode also visible and all capacities likely to be on stream by end of H1FY18. Given that realisation improvement sustains, possibilities of upgrades cannot be ruled out.At the price target, the stock will trade at a valuation of ~US$ 90/tonne. Fundamentals appear strong and if cement prices sustain, potential for recovery in earnings upgrade exists.

9 Asset quality performance was better than expectation due to sharp moderation in slippage. However the bank maintained its stressed assets watchlist position at Rs 313bn(2.1%ofloanbook).StandardrestructureddeclinedtoRs365bnVsRs390bnqoq. 9 At the preprovision level results surpassed our expectation, led by strong 44% yoy growthinnoninterestincomedrivenbytreasurygain.HigherprovisionsonNPAdueto...

Key highlights: Revenues were 3% below our estimates to Rs 19.43bn (+18% yoy). While US sales of US$ 104mn (+24% yoy) was in line of our estimates and Domestic formulations outpaced industry growth, the weak show by Latin America markets led to miss in sales estimates. Visible pricing pressure in US & higher employee cost caused 270bps negative surprise in operating margin at 19.5% (estimated 22.2%) that resulted in 15% below expected EBITDA at Rs 3.79bn. Thanks to forex gain of Rs700mn that supported PAT at Rs 2.18bn (10% below estimated). However, the tax rate was higher at 35% (vs 25% normal). The core earnings (adjusted forex gain and abnormal taxes) were 18% below expectation.Phillip Capital now value GNP at Rs 1000 i.e.19x FY18 EPS, implying 18% potential upside. Re?iterate BUY with a lowered TP of Rs 1000.