Sun Pharma Advanced Research Company (SPARC) is a clinical-stage biopharmaceutical company focused on continuously improving standards of care for patients globally, through innovation in therapeutics and delivery....

Way2Wealth Brokers Pvt. Ltd. (CIN U67120KA2000PTC027628) SEBI Rgn. No. : INH200002739 No. 14, Frontline Granduer, Walton Road, Bangalore-560001; Website: www.way2wealth.com Email: research@way2wealth.com...

Medium and small enterprises are businesses that are yet to achieve the size and scale of their market leaders and thereby offer investors with supernatural growth potential owing to their low base. Out of the 4500+ stocks listed on the domestic stock bourses, ~98% belong to the mid and small cap category and contribute ~28% of the overall market capitalisation of the total listed universe. In a developing country like India, these business enterprises play an extremely critical role in employment generation, economic upliftment of society, provide an influx of innovative products & services into the market and improve overall efficiency and productivity of the economy. As per the latest SEBI guidelines, stocks are classified based on market capitalisation where top 100 are large cap stocks, 101st to 250th are mid cap stocks and 250th and beyond are small cap stocks. Mid and small cap stocks given their relatively lower cash flow generation abilities and limited access to cheaper capital access...

Varun Beverages Ltd. declared its Q4CY18 results recently. Net Revenues grew by 49% YoY to `786crs. led by robust volume growth of 40%. EBITDA for Q4CY18 grew by 46% on a YoY basis to `48crs. Margins merely contracted by 10bps to 6.1%. Net loss for Q4CY18 decreased by 1.7% YoY to `71.5 crs. VBL now account for 80%+ of PepsiCo India's...

In Vietnam, Sales has declined by ~24% Y-O-Y in Q3FY19. We believe debt free status, better product mix and additional spray-dried capacity of 3500 ton by Q4FY20 would bring strong revenue and profitability growth in Vietnam. The management has guided 80% capacity utilisation for FY19 vs 60-70% in FY18. Incentives offered by Vietnamese government of zero tax rates will continue further....

Aurobindo Pharma's revenue grew 22% on a YoY basis to `5270 crs. in Q3. Growth was led by all business segments and markets. US and growth markets reported growth of 27% and 36% respectively on a YoY basis. Consolidated EBITDA increased to `1,086 Cr vs. `1,025 Cr in Q3 last year, an increase of...

Britannia Industries Ltd. reported Q3FY19 results with net revenue of `2827crs with growth of 10.5%. EBITDA expanded by 40 bps Y-O-Y to 15.9% in Q3FY19. Volumes grew by 7% while price and product mix contributed 2% each to the growth. The company continued to focus on...

Overall realizations grew by 0.7% YoY (Automotive division realization grew 0.4% YoY and Tractor division realization grew 2.4% YoY.) Net Sales grew by 12.2% YoY to `128.9bn. EBITDA margins contracted on a YoY basis by 152bps to 13.2%....

Subros reported Q3FY19 results. Following are the key highlights: o Net Sales rose by 13.8% (YoY) to `5.1bn o EBITDA Margins expanded by 51bps on a YoY basis to 11.1%...

Nocil reported steady Q3FY19 numbers in challenging business environment Domestic automobile growth has witnessed muted growth during 9MFY19 largely on account of extreme swings in crude oil prices, higher upfront costs to customers due to change in regulatory measures relating to insurance and the recent NBFC liquidity woes. On the global front, automobile demand scenario was even more grave as the largest auto market China registered ~3% YoY de-growth in 2018 mainly triggered by the increasing trade war tensions with the US. Despite all these challenges Nocil has recorded a steady quarter with net sales coming in at `261.2 crore (up 4.2% YoY, down 4.0%...

Prism Johnson (Prism) is part of the Rajan Raheja group and is a unique integrated building materials' company, with a wide range of products from cement (43% of FY18 revenue), ready-mixed concrete (24.3% of FY18 revenue), tiles, and bathroom products (30.5% of FY18 revenue). Prism also has a 51% stake in Raheja QBE General Insurance Company Limited, a JV with QBE Group of Australia. Prism has been an industry leader in its tiles...

IDFC First Bank Ltd. was recently founded by the merger of IDFC Bank, a scheduled commercial bank and Capital First Ltd., a systematically important Non-Banking Financial Services company. The merger was first announced on 13th January, 2018 and formally consummated on 18th December, 2018. As part of IDFC Bank's strategy to retailise its loan book the bank was looking for a merger with a retail finance institution with adequate scale, profitability and specialized skills. The merger rationale from the point of view of Capital First was to access low and sustainable...

Strong show on core operating parameters - Federal Bank reported a steady NIM in Q3FY19 which stood at 3.2%, similar as compared to Q2FY19. Net interest income grew by 13.4% YoY to `10.7bn in Q3FY19. Core Operating profits grew by 22.6% YoY and 1% QoQ to `6.5bn in Q3FY19 compared to `6.4bn in Q2FY19 and `5.3bn in Q3FY18. The Bank's CASA deposits stood at `412bn...

We expect Indian Automotive Battery market to grow from ~70mn to ~100mn over FY17-20. However, addressable automotive battery market for Exide is likely to increase from ~`78bn to ~`170bn (2.2x increase). Being the largest player in India with a strong...

Strategy on entry level (M1) segment BAL took price cuts in the entry level segment in Q1FY19 to expand the lower end of market and also to gain market share. As a result, the company recorded a growth of 61% YoY in Q3FY19 as against 38% growth for the industry. CT sold over ~181,000 volumes, a growth of 77% over Q3FY18 and Platina clocked over ~195,000 units, growth of ~38% over Q3FY18. This resulted in market share improvement from 31.7% in Q3FY18 to ~37% in Q3FY19. BAL plans to occupy 45-50% of the market share in the M1 segment over the medium term. Currently, Platina sales are picking up in the near term which is profitable compared to...

Godrej Consumer Products Ltd (GCPL) declared its Q3FY19 results recently. Consolidated net sales grew merely by 3.6% Y-O-Y in Q3FY19 to `2696crs. India business recorded sales growth of 5.6% on Y-O-Y to `1472 crs. Volume for the quarter grew just by 1% Y-O-Y. International business sales grew by 10% Y-O-Y, on a constant currency basis. The company...

Revenue from Operations grew 37.3% YoY to `16.5bn. EBITDA margins expanded by 8bps on a YoY basis to 12.1%. PAT (before exceptional items) grew by 40.7% YoY to `1.2bn. Segment revenue during the quarter stood at `12,925mn as against `9,484mn during...

Flat Volume sales on domestic front and substantial volume decline in exports Domestic volume growth stood at 1.3% on a YoY basis at 405,597 units in Q3FY19 as against 400,586 units in Q3FY18. Exports stood at 23,046 units in Q3FY19 as against 30,526 units in Q3FY18, a decline of 24.5% YoY. Overall volumes (domestic + exports)...