Maintain BUY with a TP of Rs 129 (2x FY19E ABV). After a heart-warming and broad based recovery over FY17, FBs 1QFY18 saw a minor blip in slippage (a one-off, in our view). This led to lower margins (despite sustained growth) and higher provisions (to keep PCR at 70%+). The quarter saw higher Corporate segment slippages (mostly relapse) and demonet/farm waiver impact on Retail and Agri segments. Encouragingly, SME slippages fell QoQ.

Tata Communication (TCL) reported its Q1FY18 results. Topline de-grew by 3% YoY; but in USD term revenue growth was 0.3% YoY.

ICICI Securities Ltd | Retail Equity Research Pidilite recorded muted performance during Q1FY18 wherein sales were largely hurt by lower dealer demand in both consumer & bazaar (C&B;) and industrial segments. The flattish volume was primarily due to de-stocking of inventories at the dealers level before the implementation of GST. Overseas business declined by ~19% YoY due to divestment of US Cyclo business in US while sales were marred by floods in Bangaladesh and Sri Lanka...

ICICI Securities Ltd | Retail Equity Research Nestl India (NIL) reported a healthy set of numbers despite destocking in June ahead of our estimates on both revenue and profitability front. Revenue for the quarter grew by 7.3% YoY to | 2469.1 crore, against our estimate of | 2289.0 crore led by 8.8% domestic sales growth despite some impact on revenues in the month of June due to de-stocking ahead of GST implementation. The domestic growth was largely volume driven led by new product launches and re-gaining of Maggi's market position. However, the...

Revenues came in higher at | 21958.1 crore (vs. expected | 21717.3 crore) aided by higher voice and data revenues. The voice revenues from the Indian business came in at | 9273.63 crore (vs. estimated | 9123.1 crore) owing to sharp volumes jump of 10.7% QoQ to 421.9 billion minutes (Idirect estimate 417.5 billion minutes) driven mainly by the free voice bundled offer. On the contrary, there was 9.5% QoQ decline in voice ARPM to 22.0 paisa versus estimates of 21.9 paisa. Data subscriber addition grew by 9.5% QoQ to 62.6 million...

ICICI Securities Ltd | Retail Equity Research Grindwell Norton's (GNL) reported Q1FY18 results, which were below our estimates. This was mostly on account of weak growth of 2.6% YoY in the abrasives segment (our estimate 10% YoY). The abrasives segment contributed ~64% of topline, while the Ceramics & Plastics segment contributed ~28% to the topline. Revenues came in at | 337.7 crore up 8.5% YoY, marginally below our estimates of | 343.1 crore. Abrasives segment grew 2.6% YoY, |...

ICICI Securities Ltd | Retail Equity Research Accretion in GNPA came in higher at | 425 crore (|280 crore in Q1FY17 & | 244 crore in Q4FY17), led by slippage in corporate segment. Absolute GNPA increased 8% QoQ to | 1868 crore, while GNPA ratio rose 9 bps QoQ at 2.42%. Standard restructured book (including SDR, S4A and 5/25) stood at | 1326 crore (1.7% of loans). Healthy PPP growth at 31% YoY led by traction in NII and other income. Higher slippages keep provision elevated at | 236 crore....

ICICI Securities Ltd | Retail Equity Research Exide Industries' (EIL) reported mixed set of Q1FY18 numbers. Revenues increased 4.6% YoY to |2,103 crore, below our estimate of |2,286 crore. According to the management, 4-W & 2-W battery continued with its growth momentum, however Home UPS battery segment remained subdued during the quarter. EBITDA margins contracted 24 bps YoY, however expanded 217 bps QoQ to 15.4%, vs. our estimate of 14.1%. Margin expansion on QoQ...

Revenues came in at | 387.4 crore, up 15.0% YoY, aided by higher advertisement revenues which grew by 56.8% YoY to | 33.4 crore. While footfall at 15.8 mn (up 1.7% YoY) was muted, blockbuster slate in the form of Bahubali 2 and Tubelight enabled the company to take 10.9% YoY hike in ATP to | 193. Net box office collections came in at | 239.2 crore, up 12.0% YoY. F&B; revenues came in at | 88.2 crore (up 9.3% YoY), aided by 6.6% YoY growth in spends per head to | 65.. EBITDA at | 75.3 crore was higher than our expectation of | 69.1 crore...

GNPA ratio increased by ~33 bps QoQ at 1.12%, (GNPA - | 3513 crore,) while NNPA remained nil. Such increase in NPA is the highest in last several quarters. This was on account of an exposure of | 909 crore as Q1FY18. As at Q4FY17, though the account was not NPA, HDFC had made adequate provisioning against this exposure. Thus, no further provisioning was required on this exposure in Q1FY18. Net interest income increased by 17.6% YoY to | 2488 crore. Margins were at 4% while spread was at 2.29%. Advances grew...

We roll forward our target price on Jun-19, and value HMCL at Rs 4,250 (20x Jun-19E EPS) vs Rs 3,740 earlier, and recommend BUY. Hero Motocorps (HMCL) 1QFY18 EBITDA at Rs 12.95bn (+5.4% YoY) was slightly above estimates, led by a price hike made in May-17, and the benefit of operating leverage. Net sales stood at Rs 79bn (+8% YoY, +15% QoQ), on the back of 1.4% YoY rise in net ASP, along with 6% improvement in volumes. PAT at Rs 9.1bn (+4% YoY, +27% QoQ) was in line with estimates. Management expects the strong demand momentum to continue, on expectations of normal monsoon and new launches in FY18.

RBL Bank (RBL) continued its dominant show, reporting ~45% YoY PAT growth to Rs 1.4 bn (marginally higher than our estimate). Operating metrics were strong: 40%/37% growth in advances/deposits, sequentially resilient NIM (3.5%) and stable CASA ratio at 22%. However, headline asset quality witnessed ..

Analysis of stressed assets of the Bank clearly suggests that the Bank is approaching the end of recognition of stressed loan cycle, which along with higher PCR clearly indicates sharp moderation in credit cost from FY19 onwards. We have upwardly revised our loan growth estimate to 14-15% from 11% earlier led by pick-up in loan growth from retail SME and corporate working capital segments. Further, we have also upwardly revised our PAT estimates by 23% and 27% for FY18E and 19E, respectively. We upgrade our recommendation on the stock to...

Aditya Birla Fashion & Retail (ABFRL) had launched men's innerwear and athleisure SKUs in FY17 under Van Heusen brand in South India (Chennai, Bengaluru & Hyderabad). The company has now embarked on a national rollout of the innerwear and athleisure range that will be available across 7000+ multi brand outlets (MBOs) and 30+ exclusive Van Heusen innerwear outlets. The range will be also available across 250 Van Heusen exclusive outlets and 300 Planet fashion stores. The management intends to replicate the performance of Jockey and emerge as the No. 2 player...

Total standalone revenues came in at | 210.3 crore, up 3.6% YoY Standalone EBITDA in Q2CY17 came in at | 23.8 crore (EBITDA margins at 11.3%). Standalone PAT in Q2CY17 was at | 15.4 crore KSB is due to commission its new manufacturing facility in H2CY17E, which amid incremental capex of domestic refineries (change in euro norms) and increasing thrust on irrigation projects (lift irrigation) will drive the next leg of growth, going forward KSB previously supplied pump to NPCIL. Hence, it would be a key...

Expect revenue/EPS CAGR of 11/9% over FY17-19E, and maintain BUY with a TP of Rs 890, 13x FY19E EPS. L&T; Infotech (LTI) posted in-line revenue, but lower margins on increased lateral hires and lower utilisation. Revenue at USD 259mn, 2% QoQ (1.5% CC QoQ and 11.8% CC YoY) driven by strong growth in Digital (4.5% QoQ in Analytics and 6.3% QoQ in Enterprise Integration and Mobility) and IMS (12.5% QoQ driven by cloud).

We have SOTP based TP to Rs 118 (9x EV/EBITDA 19E + 0.5x investment book). Maintain BUY. Ashok Leyland (AL) posted in-line revenue (-0.5% YoY to Rs 42.4bn) in 1Q, while margins (-410bps YoY, 7.2%) came much below estimates. EBITDA at Rs 3.1bn (-37% YoY) was hit by operating de-leverage (one-offs in employee costs and other expenses).

Maintain BUY with SOTP of Rs 288/sh. IRBs 1QFY18 Revenue, EBIDTA and PAT were 30/16.3/10.9% ahead of our estimates on account of robust EPC revenue growth of 45% YoY. EBITDA margins contracted ~600bps YoY to 45% led by change in revenue mix towards EPC (73% rev share vs 61% YoY) which has lower EBIDTA margins (30%) vs BOT Assets (85%). IRBs 1QFY18 order backlog of Rs 89.1bn (2.5x FY17 EPC revenue) provides growth visibility on EPC front with EPC revenue expected to grow 10-15% in FY18E.

results. Although consolidated revenue of INR35.2b (+10% YoY, flat QoQ) missed estimate by 2%, consolidated EBITDA of INR15.8b (+12.9% YoY, +0.2% QoQ) exceeded estimate by 2.8% due to better-than-expected rental...

0.4% QoQ (-3.3% YoY) to INR43.1b (marginal beat). Core EBITDA rose 12.6% QoQ (-15.6% YoY) to INR5.6b (in-line). PAT of INR1b exceeded our estimate of INR624m; the company had recorded a loss of INR11b in 4QFY17. Data revenue was flat QoQ (+4.6% YoY) at INR27.8b (in-line). Data EBITDA increased 23% QoQ (-14.9% YoY) to INR4.7b (in-line), with the margin expanding 330bp QoQ (- 390bp YoY) to 17%. Traditional EBITDA grew 18% QoQ to INR5.7b. Voice EBITDA fell 22.7%/19.1% QoQ/YoY to INR876m....