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Maintain BUY with TP of Rs 970, 20x FY20E. Mindtree posted robust revenue growth and in-line profitability. Revenue came at USD 226mn, 5.5% QoQ led by digital (45% of rev) growth at 8.3% QoQ. EBITDA% stood at 16.1%, +103bps QoQ supported by operational efficiencies (+30bps impact). APAT stood at Rs1.70bn, adjusted for write-back of earn-out from prior acquisitions (Rs0.13bn).
Shriram Transport Finance Company (SHTF) is the undisputed leader in the domestic used CV segment with 25-26% market share and outstanding AUM of INR900bn as on...
a.Individual weighted received premium (WRP) grew 11% YoY, while overall premium rose 24% YoY. b.For 11M FY18, the market share in individual WRP improved to 13.2%. Group segment (largely protection business) market share stood at 29.5%. c.Premium mix moved in favor of ULIPs, but the company mentioned that it would look to increase the share of high-margin products over the medium term. d.Operating expenses stood at 12.3% for the quarter and at 13.5% (v/s 12.6% in FY17) for FY18.
In FY18, MTCL's revenue grew by 8.6% YoY to USD847m, EBITDA by 3.1% YoY to INR7.4b and PAT by 29% YoY to INR5,701m. Excluding the one-offs from the reversal of acquisition liabilities, PAT grew 19.6% YoY to INR5,007m. However, the exit to the year was far healthier on the operational front, with USD revenue up 15.6% YoY to USD226m, EBITDA up 26% YoY and PAT up 87% YoY to INR1,822m. QoQ revenue grew 5.5% v/s our estimate of 4.3%. EBITDA margin expanded 100bp QoQ to 16.1%, largely in line with our estimate of 15.9%.
We now forecast FY19/20 advertisement income growth of 26%/32.4% vs. 27.8%/32.6% earlier. We fine-tune our forecast for FY19/20E and now forecast EBITDA CAGR of 14% and EPS CAGR of 23%. We continue to believe that the merger with Qube Cinema would be a game...
Our revised TP is Rs 231 (3x FY20E ABV of Rs 77). Our recent interaction with the City Union Bank (CUBK) reaffirms our consistently bullish view. CUBK has repeatedly quashed apprehensions around growth (23% loan CAGR over FY06-17) and delivered stable asset quality across cycles. Its relatively weaker liability franchise is more than compensated by a flourishing asset profile. We believe CUBKs balance of deep customer relationships, employee motivation and rock steady astute top management will propel the bank to greater heights.
Maintain BUY with a TP of Rs 216 (2.2x Mar-20 ABV of Rs 98.3). DCBBs 4Q numbers were brimming with positives as growth sustained (+29% YoY) and NIMs held up (4.16%, +4bps QoQ). Tight control on costs was evident as opex grew merely ~2% QoQ and core C-I dropped 330bps QoQ. Robust fee growth (+39%), timely reduction of the mortgage portfolio (down 200bps QoQ) and sharp rise in PCR (75.7%; +240bps QoQ) were a key positives. Asset quality was contained with lower slippages, better recoveries and healthy PCR.
DCB Bank (DBL) reported 4QFY18 results with the key strategic pointers being: (1) Fee income growth is being driven by cross-selling across products; (2) Asset quality has remained under control while provision cover remains best in class; (3) Cost to income ratio has improved to 59.4% reinforcing the thesis highlighted in our earlier report (click here). Per se, on the results front, DBL posted NII growth of 20% YoY to Rs2,637mn, PPOP growth of 23% YoY to Rs1,146 and PAT growth of 21% YoY to Rs642mn. We have marginally modified our estimates for FY19/FY20 and retained Buy rating on DBL, increasing our target price on it to Rs223 (from Rs196 earlier) and...
DCB Bank continued to deliver healthy performance on all major metrics in 4QFY18 as well led by (a) strong growth in loan book (+28.6% YoY & 9.4% QoQ); (b) all-time high NIMs of 4.16% in FY18 vs. 4.04% in FY17; (c) strong growth in other income (+33.4% YoY & 13.2% QoQ); (d) continued sequential improvement in C/I ratio to 59.4% vs. 62.3% in 3QFY18; and (e) lower fresh slippages of Rs805mn vs. Rs1,031mn in 3QFY18. Led by 70% YoY and 16% QoQ improvement in upgrades and recovery from gross NPA to Rs667mn, its headline gross and net NPA ratio came in at 1.79% and 0.72%, respectively compared to 1.89% and 0.87% in 3QFY18. The Bank's overall stressed loan portfolio, which improved sequentially, remains within the Management's comfort zone....
JMC Projects (JMC) is a formidable player in South India with three decades' experience in civil construction business underscored by well acknowledged expertise in building construction.
Crompton Greaves Consumer Electricals (CGCEL), the demerged consumer business of Crompton Greaves (CG), is the undisputed market leader in the fans segment and a formidable branded player in the light
SRF is the market leader in fluorine chemistry, technical textiles, refrigerant gases besides being a preferred supplier of other fluorochemicals products and polyester films, in India.
US sanctions on Rusal (April 2018) and alumina cost push led to ~10% rise in the aluminium prices since Feb'18 end. Besides, supply disruptions, the sanctions also restrict Rusal's ability to complete new projects or ramping up of exiting capacities (1.5-1.6MT), restricting any new supply coming into the market. This, coupled with China's emphasis on environmental sustainability should support aluminium prices in the near to medium term. As we believe that, lower supply from China, low inventory, and deficit (exChina) will continue to support the aluminium prices. Given the recent uptick in aluminium prices, we believe, NALCO should report improvement...
In Line Quarter & Guidance; Growth Investments & Cash Return Key Positives Infosys delivered an in-line performance in 4QFY18, with revenue rising 1.8% QoQ (0.6% QoQ in CC terms) to US$2,805mn, almost exactly in-line with our estimate. Aided by currency, lower SG&A; and offshore mix, EBIT margin rose by 46bps QoQ, while volume growth came in at 1.2% QoQ. The Management has guided for FY19E USD revenue growth at 7-9% (6-8% in CC terms), in-line with our and street expectations. However, the management guided for lower margin at 22-24%, owing to investments in business on digital, increasing localisation of US staff and reskilling employees. The wide margin band is negative, which gives room for margins to come in at the lower end of the band. FY18 EBIT margin was at 24.3%, which implies margins could fall...
L&T Finance (LTFH) recently raised equity capital amounting to INR30b, of whichINR20b came from the parent (L&T). As a result, leverage has declined from previous elevated levels of ~8.5x to ~6.1x now. We believe LTFH is now well capitalized for growth, and will not need to raise equity capital at least in the next 3-4 years. Over the past two years, there has been a modest increase in the share of retail loans from 26% to 30%. On the wholesale lending front, there has been a mix shift toward real estate finance (its share has increased from 6% to 12% over the same period), while the contribution of other wholesale finance segments (infra, structured finance, etc.) has declined. However, the increased share of real estate finance is likely to translate into strong growth in the retail home loan segment in the coming years, in our view.
DCB Bank reported a healthy set of Q4FY18 numbers with business traction and earnings coming in above our estimates Advances grew at a strong rate of 28.6% YoY (highest in the last six quarters) to | 20337 crore mainly led by the corporate, SME and...
