earnings which were broadly in-line with our estimates. PAT for the quarter higher at Rs42/36bn during the quarter. Management has maintained its capitalisation guidance of Rs220250bn, subject to commissioning the...

We have modelled revenue/PAT to grow at CAGR of 12.3/17% over next two years. The stock is currently trading at attractive valuations of 10/9x FY20/21E. Voltamp Transformers (reported good set of number for 2QFY20 given challenging environment. Revenue for the quarter was up moderate 3% YoY led by 9% YoY dip in volumes and ~13% YoY increase in realization due to change in mix. PBT for the quarter grew 22.8% YoY due to (1) 70bps YoY expansion in EBITDA margin at 10.8%, and (2) 62% YoY rise in other income. The 2QFY20 order inflow stood at Rs2.7 bn (+~7% YoY), taking current order...

the industry and gain market share as it continues to 1) Refresh product portfolio 2) Increase distribution and brand investments 3) increased focus on emerging categories like water purifier, AC and Kitchen Hoods and Hobs and 4) capacity expansion across categories. WHIRL is focused on profitable growth and expects demand to bounce back led by 1) low penetration level across categories 2) rising electrification and 3) increasing consumer affordability. WHIRL is investing to create next legs of growth by increasing presence in Air Conditioners/Water Purifiers/Elica JV. We believe new...

We cut our PAT estimates by 37.4%/23.4% for FY20E/21E as 1) national advertisers continue to remain apprehensive due to weak macro-economic environment 2) government, the largest category, is witnessing unprecedented cut/delay in ad spends with no signs of revival at least in the near term and 3) there was no visible uptick in ad volumes in the festive season that just culminated. In the top 15 markets, all categories except for auto and finance have reported a de-growth in ad volumes during 1HFY20. Despite such challenging environment RADIOCIT IN maintained its share of...

AL's performance disappointed with twenty quarter low EBITDA margins at 5.8% (PLe 8.8%). We think the outlook for CV industry to remain uncertain with factors such as a) uncertainty around pre-buy ahead of BS6, b) lower freight availability and c) higher discounts. However, the benefit of softening commodity prices and accelerated cost control initiatives to partially negate prevailing heavy discounting in the industry. We believe, these challenges are largely priced-in. We estimate EBITDA/PAT CAGR of -7/-12% in FY19-22,...

Motherson Sumi Systems (MSS) Q2FY20 consolidated margins were above estimates at 8.3% (PLe: 7.2%) however, standalone results were in-line. Ramp-up at Kecskemet/Tuscaloosa and efficiencies at other plant resulted in sharp improvement in SMP margins at 4.2% (+160bp QoQ, PLe: 3.2%). Going ahead with further ramp-up of both these plants, healthy order book at Eur18.4b (as of Sep-19 including new orders of Eur3.8b in 1HFY20) and SOP...

NMDC reported Q2FY20 EBITDA in line with our estimates; missed consensus estimates (CE) by 6%. On PAT level, it missed our estimates by 13% (CE:21%) due to status quo on tax rates as we believe that company is waiting for tax treatment on capitalization of its steel plant. Street is excited on expectation of fast clearance of NMDC's Donimalai iron ore mines with the...

Tax rate fell by 1100bps to 28% as its five subsidiaries adopted new rate Coal India (COAL) reported Q2FY20 EBITDA above our estimates by 9% on the back of better than expected FSA realisations. Though the performance on volumes remained disappointing, company succeeded to offset the impact partially by enhancing FSA realisations through improvement in grades and higher realisations on auction of linkages in non-power segment. Admittedly, volume growth would hold the key as the performance stands unjustified in light of two major rail lines (loading incremental 20mtpa or 3.5% growth over...

Novelis delivered strong quarter with record margins (with EBITDA/t at US$448) and healthy volume growth of 3%. However, headwinds on margins are clearly visible due to accentuating competition and contracting scrap spreads. Incrementally, impending acquisition of Aleris would deteriorate earnings and B/S quality due to its cyclical portfolio, peaked-out margins and...

YoY to Rs39 mn. Company reported net adjusted loss of Rs205 mn during the quarter against PAT of Rs396 mn in 2QFY19. Order inflow during 2QFY20/1HFY20 was down 5%/17% YoY. While many Green Energy Corridor (GEC) orders were tendered out during the quarter, most of them are under final negotiations and expected to be awarded in 2HFY20. The Bangladesh HVDC project has been put on hold in order to ascertain measures to further reduce the project cost. With ongoing liquidity crisis, company raised debt...

Q2FY20 GDP growth washout, moderate Q3 recovery- 2QFY20 GDP is expected to remain weak given 1) low government capex 2) Continued slowdown in automobiles & real estate segments 3) Poor performance of high-frequency...

recently moved up for insurance companies and slower growth which has to Source: Life Insurance Council, PL be closely watched may lead for some correction. We do retain our preference for the sector but we have downgraded our rating for HDFC Life/IPru Life to Hold from BUY post results and have seen TP achieved for SBI Life as well....

Company is seeing softness in prices in North American markets due to increasing competition from Non-Chinese players. However, management expects to offset the weakness through internal efficiencies and cost rationalization. Europe witnessed signs of improved demand, especially in beverage cans. Management expects scrap spreads to sustain at current levels in North America due to strong availability. While, spreads in Asia and South America has come off from the levels of 1HFY20. Novelis consistently delivered across the parameters with consistent...

We attended Infosys analyst meet in Bangalore & came convinced with management long term strategy for driving shareholder returns. Infosys leadership team has done some major changes in last 2 years (investments...

HCLT is unlikely to do any large product acquisitions in near-to-medium term & they want to focus on the existing acquired products & establish credentials in the market. HCLT management expects double digit IRR (12-15% base...

maintaining annual margin guidance at 11%. MEP segment shall continue to focus on domestic projects in Urban Infra and Rural Electrification. With Voltas Beko JV to remain in an investment phase over the next 2-3 years, we expect the JV to drag profitability in the medium term and report a loss of Rs1.5bn/Rs1.2bn in FY20/21. We estimate 18% EPS CAGR over FY19-22 and value the stock at 28x Sept21 EPS. Maintain Hold with a target price of Rs662. Sales flat at Rs14.2bn; Adj PAT up by 8.8%: Revenues were flat YoY at Rs14.2bn as gains from UCP segment were offset by fall in EMPS segment. Benign...

Order inflow up 22% YoY at Rs24.9 bn, mainly driven T&D; business. YTD order inflow stands at Rs49.4 bn (FY20 guidance of Rs100 bn). L1 of position of ~Rs20 bn, mainly T&D; business. Kalpataru Power Transmission Ltd (KPTL) reported strong set of numbers for...

We cut our EPS estimates by 8.8%/8.7% for FY20E/FY21E given aggravating concerns on growth amid slowdown in discretionary spends. All channels except for e-com have struggled but a diversified mix has helped VIP tackle slowdown concerns better. Despite subdued top-line growth, gross margin expanded 250bps YoY to 53.3% amid improved negotiation with Chinese vendors who are saddled with excess capacity after increase in import duty by the US. The gross margin advantage got nullified at the operating level due to 19% YoY increase in employee expenses due to addition of manpower and...

Triveni Turbine Ltd (TRIV) reported good set of numbers with revenue up 14% YoY mainly driven by traction in domestic market. However, exports continue to be weak with de-growth for third consecutive quarter. Order inflow (OI) declined 3% YoY mainly on account of de-growth in exports market due to postponement of order finalization. Hence, order backlog (OB) was down 11% YoY at Rs6.9 bn, which management is confident of higher year end number on the back of healthy enquiry pipeline. In the export market, the renewable sector is driving demand mainly Biomass & Waste-to-Energy and Pulp &...

IMO2020 rules to support marketing and refining margins going forward. We lower our earnings for FY20/21 to factor in lower refining margins. During Q2, core performance for HPCL was hit by lower than expected refining profits. However, benign crude prices and recovery in refining margins is positive for the OMCs and we expect recovery in H2FY20. OMCs are also likely to benefit from implementation of IMO2020 effective January given...