With low exposure to legacy (~16% of rev), Mastek generates low teen margins, given higher on-site revenues and effort mix. We like its success in ramping up UK Govt digital business. Mastek is the only only Indian co in their top-10 vendor list. Co can generate 14.0/13.4% GBP rev/EPS CAGR over FY19-21E (despite US softness and Brexit worries). Its stake in Majesco US (Rs 83/sh) and net cash (Rs 63/sh provide additional comfort. Risks to our thesis include deferment of spend due to Brexit and GBP depreciation. We maintain BUY on Mastek following an inline 4QFY19. Our SoTP is Rs 657 implying 11x FY21E EPS which includes Rs 83/share for 12% stake in Majesco US.

TV18 reported its Q4 FY19 results with a consolidated net revenue of INR 11,815 Mn, a decline of 20% qoq. EBITDA stood at INR 517 Mn in Q4FY19 . EBITDA Margins were reported at 4.37% in Q4 FY19 vs a margin of 7.78% in Q3 FY19. EBIT came in at INR 173 Mn. Net Profit for Q4 was reported at INR 282 Mn. EPS for the quarter stood at INR 0.16 vs INR 0.02 in the previous quarter....

Born of entrepreneurial spirit in 1961, Banco Products (India) ltd has today carved a niche for itself as a leader in the business of engine cooling...

TCS delivered solid constant currency (cc) revenue growth of 12.7% yoy (+2.4% qoq) in Q4 FY19 while the USD Revenue increased 8.5% yoy to USD 5,397 mn (+2.8% qoq) in line with our expectations. In Rupee terms, top line increased 1.8% qoq to INR 38,010 Cr. (+18.5% yoy). Operating margin of 25.1% in Q4 FY19 was down 52 bps qoq (down 31 bps yoy) impacted by slightly higher direct cost as % of revenue....

One of very few global and only Indian company to provide Active Ingredients for both Pharmaceuticals Agrochemical Hybrid Model....

Strong for Lupin, Cipla, Laurus; soft for others LPC should report a strong quarter due to Ranexa/Tamiflu seasonality. Cipla is likely to be steady but can surprise positively on India seasonality. We expect a muted quarter from ARBP (strong INR, Apotex cost); higher R&D;/SGA cost would also impact SUNP/DRRD. US sales are forecast to rise 4% QoQ (26% for LPC, 2-4% for Cipla, DRRD and SUNP, but 6% for ARBP). DIVI's positive momentum should sustain and we expect better QoQ results from Laurus. The...

Men to be separated from boys: The NBFC segment is undergoing a significant shift in market approach. Courtesy recent events such as defaults (and subsequent bankruptcy in several cases) of the debt paper of several toprated corporates, we find that risk tolerance and appetite have been tempered across money markets. We believe this may lead to a possible shift in market approach, giving more...

IndoStar Capital Finance 16 April 2019 IndoStar Capital NBFC Traditionally a wholesale lender, INDOSTAR hired Mr Sridhar as Executive VC & CEO to lead its retail lending foray. Over the past few years, retail lending has gained traction and accounts for 42% of INDOSTARs overall loan book. In the corporate finance segment, INDOSTARs focus has remained on ~50 clients over the past few years, which has helped in better monitoring of accounts. However, in its SME lending book, INDOSTAR has witnessed an increase in the GNPL ratio to 3.2%. The companys other two businesses, vehicle and housing finance, have only commenced in last one year, and thus, yet to see the impact of seasoning of portfolio. These businesses have negligible NPLs. However, as the vehicle finance book scales up, we expect the GNPL ratio to reach 2% and credit costs of ~1%. We believe the company is better placed now and can focus on growth.

Endurance Technologies (Endurance) is one of the biggest suppliers of components to 2wheelers and 3-wheelers in India, having core-competence in aluminium casting, transmission and suspension products. The company is likely to benefit from new customer wins, stricter safety norms in India and increasing demand for aluminium content in passenger vehicles across India and Europe. The company is growing at a rate faster than its peers as well as its underlying industry, hence we believe that the premium valuations of 24x on FY21E earnings, at which the...

L&T; Technology Services (LTTS) was established through a group restructuring exercise by the L&T; Group, wherein, integrated engineering services of L&T; and product engineering services business of L&T; Infotech were transferred to LTTS. As a result, LTTS has emerged as one of the leading global pure-play ER&D; services, providing services to manufacturing, technology and process engineering companies, LTTS has active presence in 10 verticals: consumer electronics, semiconductor, aerospace, medical devices, telecom, energy, construction & heavy machinery, automotive, transport, industrial Products. LTTS captures data from IoT...

Incorporated in 1985, SeQuent Scientific Ltd (SSL) undertakes its animal health business via Alivira Animal Health Limited, which is engaged in manufacturing veterinary APIs and formulations. Earlier SSL was engaged in the manufacturing human APIs, which has been demerged with effect from October, 2017. SSL is now involved in manufacturing Praziquantel a human and animal API and intermediates. SSLs subsidiary - SeQuent Research Limited - offers analytical services to the pharma industry. SSLs (consolidated) portfolio consists of about 23 commercial products in animal health API and over 500 products across 12...

Refer to important disclosures at the end of this report A rejuvenated 2019; reiterate Buy APAT has announced the acquisition of a 200k ton plant in Hyderabad from Shankara Building Products for Rs700mn after a solid 4Q sales volume growth (+39% yoy). APAT's total capacity is now 2.3mn tons, which is 28% of the Indian steel pipe industry. Key benefits from this plant are: high-margin products of 155k tons, reduction in logistics costs for Andhra Pradesh market and 29acres of land area (viable for future expansion). To add, Shankara will buy 250k tons of pipes from APAT annually....

Healthy deal wins, client addition key positive Infosys added one client in the US$50 million, two in the US$100 million and eight in the US$10 million client buckets, representing a healthy client mining and farming strategy. Further, the company's deal wins have also been healthy, up 2x to US$6.3 billion. Out of the overall deal pipeline, we believe US$ 3 billion would be net new deal wins, which can help Infosys to register double digit growth in FY20E. Further, digital growth has also been healthy (up 32.0% YoY, 31% of overall revenues). This gives us confidence...

alluded at continuing of growth momentum in FY2020E, despite witnessing macro challenges in the environment. FY2019 was a strong broadbased growth year, driven by strong mega deal wins in FY2018. Stepping into FY2020E, management has stated at strong TCV wins in FY2019 ($22 billion), which give comfort on the growth trajectory. However, management has resented from giving any growth statement...

Infosys's Mar'18 quarter performance was mixed bag with inline revenue, healthy deal wins and subpar operating margins. Combination of soft revenue growth guidance (of 7.5 to 9.5% YoY cc growth) with lower reset of EBIT margin range (to 21-23%) makes FY20 outlook subdued. Tight US talent market and elevated attrition will limit efforts to recoup profitability. We downgrade recommendation a notch to ADD (V/s BUY earlier) even as...

TCS delivered strong Mar'19 quarter performance with 2.4% QoQ CC growth, 25.1% EBIT margins and US$6.2bn worth deal wins. BFSI growth returned to double digit trajectory and marked its strongest performance in 11 quarters. Digital revenues at US$6.7bn run rate increased by 46% YoY. TCS remains our preferred pick amongst IT large-caps due to its (1) systematic and timely investment in digital capabilities, (2) growth visibility buoyed by robust...

TCS' growth and scale leadership in digital (USD 6.7bn annualized) are key differentiators. Continuity in strong deal wins, broad-based growth across verticals (esp. core) and geographies are driving double-digit growth. Margin/attrition differential vs. peerset reflects superior execution. Payout policy (80-100% of FCF), 90% FCF/PAT, ~4% FCF yield and 11/10% USD rev/EPS CAGR over FY19-21E support valuations (currently at 20x FY21E). We maintain BUY on TCS following an inline 4QFY19. Our TP is Rs 2,410 implying 24x FY21E EPS, with ~1% change in est. TCS is our top large cap IT pick.

13 April 2019 full-year CC revenue growth of 9%, EBIT growth of 10.6% (EBIT margin shrank 140bp YoY) and adj. Including the buyback/special dividend, INFO paid out ~125% of its FY19 adjusted profits. For the quarter, INFO grew its revenue by 11.8% YoY CC, EBIT by 3.3% YoY CC and adj. net income by 10.5% YoY CC. QoQ CC revenue growth of 2.1% was in line, but the EBIT margin drop of 160bp QoQ (on adjusted 3Q base of 23%) was higher than anticipated (by 100bp). PAT of INR4.07b exceeded our estimate by 1.5% due to a lower tax rate (22.

Infosys came out with good set of numbers in Q4FY19, ahead of our estimate though topline was slightly below our estimate and EBIT margin faced some pressure. Revenue was flat sequentially at Rs 21,539cr against our estimate of Rs 22,109cr. PAT for the quarter stood at Rs 4074cr ahead of our estimate of Rs 3860cr. We are positive on the stock from longer term perspective, however due to cut in FY20E guidance by management, the stock might remain under pressure for few sessions. We maintain our...