Religare Broker Research reports

Wim Plast Ltd. is the third largest player in moulded plastic segment with market share of around 15%. Recently it expanded into air cooler segment with the aim to diversify its business segment and gain market share. The company has shown decent revenue and PAT growth of 7% & 8% respectively on a CAGR basis over FY14-18.

Going forward, in the near term, considering that the Nifty has rallied 9% in the last 2-months and 15.5% in the last 5-months, some amount of consolidation and / or profit-booking at the current levels cannot be ruled out. Moreover, with crude oil prices again firming up and weakness in the rupee continues, coupled with the fact that both MF and FII inflows into equities were tepid in August, the market taking a breather may be on the cards. However, notwithstanding short-term market pullbacks, we continue to strongly advocate a buy-on-dips' strategy with a stock-selective approach in the backdrop of an improving corporate earnings trajectory and also a strengthening economy, which have been important pillars of this rally.

Nifty futures has rolled around 68% vs 74% with respect to last month, the open interest for the new September contract is more compared to last month by 29lkh. Fresh long buildup in index can trigger follow-up buying. The range for Nifty might be at 11550-11900 and Banknifty at 27000-28600 for first fortnight of September series.

Eicher Motors reported healthy set of numbers which were in line with our estimates. Its consolidated net revenue and net profit grew by 27.3% and 22.4% yoy respectively. The company sold 2,25,361 units of RE in Q1FY19 up by 22% yoy. Also the performance of its JV with Volvo group (VE commercial vehicles) reported strong growth with total volumes up 40.9% yoy and improvement in profitability.

APL Apollo Tubes (APT) reported strong set of numbers in Q1FY19 led by robust growth in volumes. Net revenue for the quarter grew by 45.1% yoy on the back of 14% volume growth and ~28% increase in realizations. However, net profit growth was restricted to 21% due to subpar operational performance, lower other income and higher interest cost.

Minda Corp reported strong set of numbers, which was marginally ahead of our estimates. Its consolidated net revenue and PAT grew by 33.8% and 63.3% yoy. The growth was led by robust growth witnessed across all three verticals and improved operational performance.

Kajaria Ceramics Ltd (KCL) reported disappointing numbers for Q1FY19, below our estimates on all parameters. Its consolidated revenue grew by 4.6% YoY. While volume growth stood healthy at 8.7% YoY, poor realizations in the Tiles segment impacted the overall revenue growth. Besides pricing pressure, high power & fuel cost resulted in 187bps YoY contraction in EBITDA margins.

Century Plyboards (India) Ltd's (CPIL) standalone Q1FY19 numbers were in line with our estimates. Net revenue increased by 22.5% YoY, led by incremental sales from MDF division and healthy growth in the Laminates segment. EBITDA & PAT margins expanded by 219bps & 67bps YoY respectively, aided by margin improvement in Plywood & CFS segment and a sharp decline in the depreciation cost.

Symphony Ltd's Q1FY19 standalone numbers were disappointing and significantly below our estimates on all parameters. Weak summer impacted the domestic Air Coolers business sharply and resulted in 39.2% YoY decline in revenue growth. Significantly higher A&P spends and operating de-leverage resulted in a sharp contraction of 1412bps YoY in EBITDA margins. PAT de-grew by 79.2%.

TeamLease Services Ltd. (TEAM) reported decent set of numbers wherein Net sales grew by 19.7% in line with our estimates. However, EBITDA margins came in marginally lower than our estimates at 2%, up 50bps yoy. Net profit growth stood at 33.1% yoy. We expect TEAM's performance to continue due to increased preference for organized players and its strong growth momentum in high margin business. Recommend Buy.