Sharekhan Broker Research reports

Among mid-tier companies, PSL clocked strongest revenue growth given its exposure to less-impacted verticals such as BFSI, technology and healthcare Growth momentum in technology services would continue beyond FY21E led...

Finolex Cables reported better than expected numbers during Q1FY2021 despite effectively operating for only about a month during the quarter. Its standalone revenues declined by 63% y-o-y to Rs. 377 crore (but was higher than estimate) as factory operations gradually resumed from May 20, 2020, followed by channel partners. OPM contracted by 396 bps y-o-y to 9.2% (much better than estimates) owing to a dip in gross margins (as it doled out the entire 8% target-based incentives versus the normal of 6% to channel partners to support them and strengthen long-term relationships during the quarter). A dip in revenues and OPM led to a 57% y-o-y decline in net profit to Rs....

Petronet LNG (PLNG) reported better-than-expected Q1FY2021 results as the decline of 11% y-o-y in its operating profit to Rs. 910 crore was much lower than our and street expectations of 20-22% y-o-y decline. It is attributable to higher-than-expected Dahej re-gas volume at 181 tbtu (versus estimate of 168 tbtu) and lower other expenses (29% y-o-y). Other expenses were lower as variable cost (such as power and fuel and repairs) declined with lower overall volumes. We highlight here that Q4FY2020 operating profit was impacted by Rs. 31 crore for inventory loss and Rs. 178 crore for forex losses. Kochi terminal volume at 9 TBTU (flat y-o-y; down 31% q-o-q) was in-line...

Retail sales have been consistently improving on m-o-m basis. Early August trends also indicate improvement over July levels. Inventory is lower than normalised levels and Hero is ramping up...

Greaves revenue decline of 69% was higher than anticipated. Lower OEM volume offtake on account of COVID-19 impacted the volumes. Gross margins dropped 420 bps y-o-y as the company was unable to...

Retail sales have been consistently improving on m-o-m basis. Early August trends also indicate improvement over July levels. Inventory is lower than normalised levels and Hero is ramping up...

Initiate coverage on Tech Mahindra (Tech M) with Buy rating and price target of Rs. 850, given potential 5G opportunity and anticipated rise in margins. Our positive stance underpins company's comprehensive capabilities in telecom...

Shree Cement Limited (Shree Cement) reported lower-than-expected operational performance for Q1FY2021,even as net profit beat estimates led by higher other income and lower depreciation. Standalone net revenues declined 23.4% y-o-y to Rs. 2,326 crore led by 18.6% y-o-y decline in volumes (including clinker) affected by COVID-19 lockdown in April 2020. Blended realisation lagged estimates at Rs. 4,718/tonne(-5.8% y-o-y, +1.3% q-o-q) likely on account of regional sales mix and lower merchant power revenue. EBITDA/tonne at Rs. 1,421 (-4.5% y-o-y, -9.0% q-o-q) came in lower than estimate due to weak realization. Its Opex/tonne was...

Ipca Laboratories Limited (IPCA) reported a stellar performance for the quarter backed by impressive growth in the API segment. The revenues at Rs 1534 crore grew by 42.3% y-o-y on the back of sturdy 72% y-o-y growth in the API segment, while the formulations business was up by 36.6% y-o-y. The operating profit was up 195% y-o-y to Rs 587 crore. The operating margins surprised positively expanding by 1983 BPS y-o-y to 38.3%, attributable to favorable mix, low costs and expansion in gross margins. Strong operating performance percolated to the bottom line as well. Therefore the PAT at Rs 445 cr was up 243% y-o-y and was ahead of estimates. IPCA has guided for...

Wonderla Holidays Limited's (WHL's) Q1FY2021 numbers were affected due to non-operation of core assets (amusement parks in Bangalore, Kochi and Hyderabad) as COVID-19 cases soared in India. We believe amusement parks, multiplexes and restaurants would be last in the government list to be given permission to restart operations. We expect operations of entertainment platforms to restart after a significant reduction in the intensity of Coronavirus spread (likely to see gradual opening from H2FY2021). On the other hand, commencement of some international amusement parks...