RITES Limited, incorporated in 1974, is a Miniratna (Category I) Schedule A' Public Sector Enterprise. It is a leading player in the transport consultancy and engineering sector in India with diversified services and geographical reach under one roof.

We recently met the management of Century Plyboards (CPBI) for insights into the company's FY20 growth outlook. Key takeaways: (1) MDF segment to log 80-90% capacity utilisation, (2) plywood/laminate businesses to grow ~10%/15%, (3) blended margin to improve backed by margin gains across the MDF, plywood and laminate segments, albeit partly offset by competitive pressures in CFS. Maintain BUY on reasonable valuations of 15.9x FY21E...

The PPA is for the remaining life of the plant of 19 years. The annual fixed charge (AFC) is approved at the lower of CERC determined tariff or INR2.28b. The AFC approved by CERC is INR3.46b in FY19, but TPW has offered a discount as part of negotiation in the interest of consumers. The approved AFC equals to INR1.1/kWh (@ 85% PLF). Variable cost will be a pass-through. According to the tariff order, the PPA is subject to the purchase cost from UnoSugen (gas cost + fixed charges) not being more than the cost of medium-term power. The implied landed cost of power (incl. transmission) based on the recent medium-term contract will be ~INR5/kWh. This becomes the ceiling price for TPW. The company will have to enter into medium-term LNG contracts which are subject to the movement in crude oil prices (i.e.

RITES Limited, incorporated in 1974, is a Miniratna (Category I) Schedule A' Public Sector Enterprise. It is a leading player in the transport consultancy and engineering sector in India with diversified services and geographical reach under one roof.

Strangled by no imperceptible slowdown in Indian CV industry, most prominently the stalwart M&HCV; - stark change in volumes not invisible as MHCV dispatches tumbled not indiscernibly by 5.5% (yoy) in the second half of last fiscal compared to 48.1% growth in the first half Jamna's revenue from operations slid 3.4% in the second half of last fiscal. The condition got no better in Q4 as Jamna reported 9% drop in revenues...

Maintain BUY with SOTP value of Rs 895 (2.8x FY21E ABV of Rs 309 + Rs 30 for subs). Over FY19, AXSB has demonstrated meaningful improvement in performance metrics. Profitability improved for the retail and wholesale businesses (loss in FY17 & 18). After growing briskly over FY17-18, SA traction slowed for the bank and system. With moderating slippages and LLPs, AXSB changed course over FY19 towards normalised earnings and RoAAs. Improving asset quality (with rising coverage), better risk practices, focus on high yielding retail products and cost consciousness will drive earnings.

We recently met Container Corp of India's (CCRI) management in Delhi. Key takeaways: (1) revenue target of Rs 250bn by FY25/FY26 (Rs 7bn in FY19), (2) IR's advance freight scheme likely to be EPS-accretive, (3) completion of Rewari-Palanpur stretch of WDFC now expected by end-FY20, (4) coastal shipping operations to be launched on the east coast, and (5) warehousing area...

Demand remains sluggish: As per management, demand for logistics services has been sluggish over the past few months due to the general economic slowdown and election-related uncertainty. TRPC believes the...

Aurobindo Pharma has received a warning letter from the USFDA for Unit XI, API manufacturing facility in Srikakulam district, Andhra Pradesh. This action follows the earlier inspection of the site by the USFDA and issuance of Form 483 with three observations in February 2019. Post inspection, USFDA had classified this plant as Official Action Indicated (OAI). Apart from Unit XI, the company has OAI status on Unit I (API facility) and Unit IX (Intermediate facility). Unit XI is the largest API plant of the company followed by Unit I. According to the management, there are just ~15...

GMM Pfaudler Ltd (GMM) in Q4FY19 posted revenues of Rs. 121 Cr. (up 37% Y-o-Y, up 14% Q-o-Q) due to the excellent growth shown by non-Glass Line Equipment (non-GLE) segment. EBITDA for the quarter stood at Rs. 17 Cr. (up 18% Y-o-Y, down 1% Q-o-Q)

Sector: IT /Mid-Cap | Earnings Update 4QFY19 Background: KPIT Technologies is leading is a global technology company providing software solutions that help mobility companies leapfrog towards autonomous, clean, smart and connected future. The major focus areas of the company are power train (Conventional and electrical), autonomous technology (vision and control systems), connectivity and diagnostics. The company's focus sub verticals are Passenger cars, Commercial and Offhighway vehicles and New Mobility. KPIT derives 75.95% of its revenue from strategic top 25 clients. The company has 6,414 employees to cater...

EBITDA grew 24%YoY to Rs83bn, while EBITDA margin rose 160bps YoY to 84.5% due to decline in employee cost. PAT of TBCB companies increased Rs1.5bn YoY to Rs1.9bn in FY19 on commissioning of three projects and a weaker base....

As outlined in our Initiating Coverage report dated 24th Dec 2018, BRGD appears all set for a Tactical Shift in its portfolio with a clear focus on scaling up the high-potential leasing business. In FY19, leasing operations contributed 11% to revenues, which we expect should increase to 26% by FY21.

Q4FY19 revenue grew by 8% YoY, was lower than expected. The major orders executed during the quarter include EVM & VVPAT, IACCs, EW systems, weapon locating radar, gun upgrade and upgrade of communication equipment. The export revenue was USD 21.6mn during the quarter. The current order backlog is at Rs52,000cr (4.4x FY19 sales), provides significant visibility for next 3 years. The order inflow for FY19 grew by 133% YoY to Rs23,671cr. Key orders booked during the year include: LRSAM, smart city business, home land security system, AMC for radars, naval equipment's, upgradation of fire control systems and setting up of weapon repair facility at Naval shipyard. We expect Akash missile order to be finalized in FY20. The LRSAM order is still in initial stages and is expected to start contributing to revenue towards the end of FY20. Going forward, management has guided a revenue growth of 15% YoY for FY20E. While we...

Avanti Feeds Ltd (AFL), is a leading manufacturer of Shrimp Feeds with a capacity of 6,00,000 MT, and Shrimp Processor & Exporter with a capacity of 22,000 MT. AFL has a tie-up with Thai Union Group, Thailand. Q4FY19 revenue grew mere 2.8%YoY mainly due to drop in shrimp feed volumes (-2%YoY) and feed realization (-7%YoY). However, shrimp processing revenue growth was strong at 79% YoY. Processing capacity utilization improved to 52% (29%YoY). Shrimp prices which had witnessed a declining trend since Q3FY18...

Steel Strips Wheels Limited's (SSWL) posted revenues of Rs 527 Cr. (? 22% Y-o-Y, ?9% Q-o-Q) in Q4FY19. The EBITDA margins compressed by 237bps YoY due to rise in raw material cost and negative operating leverage while PAT was reported at Rs 19.9 Cr.

We increase rev estimates by 5.6/9.2% for CY19/20E factoring the acquisition and lower organic growth in CY20 (loss of a large net-new deal). Our CY20E EPS is unchanged (14.5% EPS CAGR over CY18-21E). Maintain BUY, with TP of 440, 16x Jun-21E EPS. Organic acceleration is expected in 2HCY19, supported by strengthening of the Adobe/Pega ecosystem and on deal momentum. Hexaware has acquired Mobiquity Inc. for an all-cash consideration of USD 182mn (at 2.6x EV/rev). Mobiquity is a design and digital consulting firm (USD 70mn rev, growing at 24% CAGR) supported by strong partnerships with AWS and Backbase.

Sector: Auto-ancillaries /Mid-Cap | Earnings Update 4QFY19 Background: Motherson Sumi Systems Limited (MSSL) is one of the world's leading, specialized automotive component manufacturing companies for OEMs. MSSL was established in 1986 as a joint venture with Sumitomo Wiring Systems. MSSL is a focused, dynamic and progressive comp any providing customers with innovative and value-added products, services and solutions. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 36 countries across six continents. MSSL is currently the largest auto ancillary in India and among the Fab SO companies of...

Bharti Airtel (BHARTI) has set a price band of USD1.0-1.3 (GBP0.8-1.0) for its Africa business IPO. This will lead to post issue equity dilution of 16-19%, leaving BHARTI's stake at 55-57%.