SPA Research Broker Research reports

Shree Pushkar Chemicals & Fertilizers (SPCF) reported strong ~35%/39% YoY growth in Q3FY18 revenue/PAT driven by increased contribution of dyestuff segment (~26% of revenue). Additional dyestuff capacity of 3000 MTPA has been commissioned in Q3FY18. Recent acquisition of Kisan Phosphates business will help in expanding geographical presence...

GSFC reported ~39% YoY growth in net sales in Q3FY18 to INR 15375mn on account of strong growth (~49% YoY) in fertilizer segment. Capro-Benzene spread at $1000/ton in February would help EBITDA margins in coming quarters. GSFC expects payment of balance INR 7 bn AS subsidy in 1-2 quarters. Melamine plant capex is expected to be commissioned by September...

Ashok Leyland Ltd. (ASHLEY) reported ~57.5% YoY jump in net sales in 3QFY18 to INR 71132 mn due to 41.2%/44.6% growth in M&HCV; and SCV volume. EBITDA has grown by 101.9% to INR 7882 mn, while EBITDAM improved by 244 bps despite increase in RM cost. PAT for the quarter stood at INR 4497 mn (Up 178% YoY). We expect ASHLEY to register M&HCV; Volume/Revenue/PAT growth of 10.6%/ 18%/19.8%. At CMP of INR 127, the stock is trading at EV/EBITDA of 11.5x. We have valued standalone business at 12x FY19 EBITDA and...

Navkar Corporation Ltd. (Navkar) continued to deliver a decent performance in 3QFY18. Panvel revenue improved ~0.8% YoY while consolidated revenue increased 16.2%. Vapi volumes grew ~20.9% QoQ to 10,571 TEUs led by volumes handled at Hazira due to partial shift in marble volumes from JNPT. Realisation at Panvel were flat while the same in Vapi grew 11% YoY to INR 19,013/TEU. Consolidated EBITDA increased by 13.9% YoY to INR 376 mn. Direct-To-Port Delivery (DPD) led impact was stable QoQ, we expect limited impact from DPD going ahead. Management expects final clearance for Vapi's rail siding shortly. Ramp-up at Vapi facility is expected to start meaningfully contributing to NCL's overall sales in subsequent quarters. Hence, we maintain our BUY recommendation with a TP of INR 310, 25x FY19E EPS of INR 12.4 on expected...

Adlabs Entertainment Ltd. (AEL) reported mixed set of numbers with higher than expected footfalls in Theme Park and Water Park which was partly offset by fall in ARPU. EBITDA margin in the quarter improved on the back of various cost cutting measures. The company's plan to monetize excess land and selling of Novotel business is on track, we expect the...

Canara bank reported higher NII of INR 36.8bn (52% y-o-y & 32% q-o-q) as there was a onetime income on interest on income tax refund of INR 7.4bn. Net total Income of INR 52.4bn (25% y-o-y & 11% q-o-q) & total opex of INR 24.1bn (9% y-o-y & 8% q-o-q) resulted in lower cost to income ratio of ~46% (-686bps y-o-y & -143 q-o-q). Elevated provisions of INR 26.7bn (80% y-o-y & 24% q-o-q) resulted in lower PAT of INR 1.25bn (-61% y-o-y & -52% q-o-q). Loan book stood at INR 3.73tn (13% y-o-y & 4% q-o-q) for the quarter. GNPA in absolute terms remained stable at INR 403bn (3% q-o-q) as both...

Cyient is a leader in Engineering Services with presence in diverse sectors such as Aerospace, Communications, Railways, Semi conductors etc. Inspite of seasonally weak quarter, company reported 4.4% constant currency growth in services (~90% of revenue) in Q3FY17. Management guided for double digit growth in services and DLM segment backed by strong pipeline and order backlog. We recommend hold rating with TP of INR598 (15x FY19E EPS). Strong growth in services revenue Cyient reported consolidated revenue growth of 7.6% YoY and 2% QoQ to INR 9833mn (US$ 152mn) in Q3FY18. Core services business continued with its strong performance and reported...

Ajanta Pharma reported a 10% YoY growth in revenues for the quarter driven by ~80% YoY growth in Asian sales to INR 1610 million. The US sales saw a growth of ~20% YoY during the quarter to INR 710 million. The company believes the severity of the pricing pressure to have reduced substantially in the US. The company maintained its EBITDA margins YoY at 33.6%,...

BOB reported improved operational performance with higher NII growth (9% y-o-y & q-o-q) and controlled opex (5% y-o-y & q-o-q) leading to PPOP growth of 13% y-o-y & 15% q-o-q. Loan book growth was 9% y-o-y & 3% q-o-q to INR 3.9tn on a lower base. Highlight for the quarter was lower slippages of INR 25.9bn vs. 37.6bn (average fresh slippages for last 5 quarters). Credit cost continued to be higher (30% y-o-y & -1.6% q-o-q) due to ageing provisions which resulted in a PAT of INR 3.6bn (-36% y-o-y & 75% q-o-q). We recommend a HOLD on the stock with a TP of INR 175 in 16 months, implying...

Canara bank reported better NIMs at 2.60% (25bps y-o-y & 4bps q-o-q) led by improvement in C/D ratio 72.2% (462bps y-o-y & 161bps q-o-q). Non-interest income grew 9% y-o-y & -8% q-o-q led by recovery in w/off a/c's to INR19.3bn. GNPA in absolute terms grew marginally (4% q-o-q) led by reduction in slippages (39% q-o-q) and higher recoveries (55% q-o-q). Controlled opex (8% y-o-y) resulted in higher PPOP (16% y-o-y). However, elevated provisions (36% y-o-y) resulted in lower PAT of 2.6mn (-27% y-o-y)....