Minda Corporation Ltd. (MCL) posted revenues of Rs 702 Cr. (?9% YoY, ?8% QoQ) in Q1FY20 mainly due to dismal performance of Plastics & Interior business (?38% YoY). This was majorly due to a substantial fall in tool sales of Minda KTSN, on subdued European demand.

Q1FY20 operational performance of Federal Bank (FB) was healthy with strong fee income growth and steady provisions with controlled slippages in a seasonally weak quarter. NII growth was muted with advance growth of 19%, marginally lower than previous run rate.

In Q1FY20, RITES ltd. reported stellar sales growth of 62% YoY at Rs 538 cr led by strong execution and higher contribution from turnkey projects. EBIDTA of Rs 131 cr grew strongly by 47% YoY, however, EBIDTA margin at 24.3 % fell by 230 bps due to service mix.

In Q1FY20, Take Solutions Ltd. reported sales revenues of Rs 583 cr (up 25% YoY & 9% QoQ) and EBIDTA of Rs 110 cr (up 18% YoY & 8% QoQ). EBIDTA margin at 18.8% remained stable on quarterly basis whereas fell 110 bps on yearly basis due to contribution from new acquisitions that yields lower margin.

Gateway Distriparks Limited (GDL) reported mix bagged results for Q1FY2020. The rail division witnessed marginal volume improvement along with improvement in profitability. However, the container freight station (CFS) vertical suffered on both counts because of competitive intensity and higher DPD volumes. GDL booked Rs. 54.8 crore SEIS income pertaining to FY2017-FY2019, while on adoption of IND AS 116, EBITDA stood higher by Rs. 11 crore bifurcated to increased interest and depreciation. On like-to-like basis, revenue grew by 3.7%...

Contrary to investment wisdom SEL has corrected sharply when it is perceived to get significantly deleveraged over next 2-3months. Asset light model, selective focus on EPC projects bidding, ROFO on HAM assets, 10% stake in IndInfraVit (already SIPL is in the money) and potential resolution to bleeding Rohtak Panipat project are other key re-rating triggers. Merger may be another positive as combined entity curtails equity intensive projects and surplus cash is utilized towards pursuing growth, without equity dilution. SEL is in a sweet spot. CPPIB backing is literally a large bank support. We maintain BUY. Key risks (1) Delay in SIPL stake sale; (2) Slow order inflows; and (3) Further delay in appointed dates. We maintain BUY on SEL with a reduced TP of Rs 269/sh (vs. Rs 340 earlier). We value SELs EPC business at 15x FY21E EPS and assign a 20% hold co discount to SIPL stakes market value. Price cut is on account of FY20/21E EPS downgrade by 24.4/20.4%.

We downgrade the target multiple for REPCO (from 2x to 1.5x) in view of deteriorating macros. This is in spite of access to adequate funds (from the largest PSB and PVT Bank), signs of improvement in growth with receding competition. However, we believe that the ill-effects of worsening macros are likely to override these positives. Valuations at ~1.1x FY21E remain enticing. A significant pickup in growth can drive up the stock, while further slips on asset quality pose risks. In spite of an in line 1Q performance (higher but sub-par growth, seasonal NPA spike and higher LLPs) we reduce multiple to 1.5x (from 2x) for REPCO given deteriorating macros. Maintain BUY. Our TP is Rs 443.

KNR delivered inline financial performance though execution could have been better. Delay in ADs impacted the same (Rs 500mn of work could not be billed). While we have cut our FY20E Revenue estimate by 7.1% to factor in back ended ADs, new wins in irrigation segment of Rs 8.5bn will drive EBIDTA margins higher. This has resulted in 1.3% cut to your FY20E EPS and 3.5% increase to our FY21E EPS. Kerala/Muzaffarpur BOT collection per day stood at Rs 1.9/2.7mn vs. Rs 1.8/2.4mn QoQ. KNR for its total Rs 2bn investment in 4HAM projects expects to receive Rs 3.6bn from Cube Highways. We maintain BUY. Key risks (1) Slowdown in government ordering (2) Higher crude and cement prices (3) Increase in interest rates and (4) Tightening liquidity in the financial sector. We maintain BUY on KNR with an increased SOTP-based TP of Rs 375/sh (valuing core EPC business 18x FY21EPS at Rs 315/sh, Subsidiaries Rs 60/sh) vs. Rs 363/sh earlier. KNR delivered Revenue/EBIDTA/APAT beat of 11/(2)/5%.

CESC Limited's (CESC) standalone Q1FY2020 profit after tax (PAT) rose strongly by 18% y-o-y to Rs. 217 crore led by higher power sales volume (up 8% y-o-y) and improved realization (up 1.2% y-o-y). The company started reporting consolidated financials from Q1FY2020 and consolidated PAT rose by only 9.4% y-o-y to Rs. 232 crore as strong performance from standalone business was partially offset by lower profit contribution from subsidiaries. We believe that CESC is trading at an attractive valuation of 9.1x FY2021E EPS and 0.9x...

Jamna Auto reported weak set of numbers in Q1FY20. The revenue was ` 4.2bn (-25% YoY on a high base), due to slowdown in CV sales along with weaker product mix (affected by a shift in demand towards lower tonnage vehicles, a lower revenue from parabolic springs & lift axle and muted aftermarket sale). However, the company is maintaining its dominance in the domestic OEM segment with 71% market share in leaf springs and focused on widening its distribution network (through tie-ups with retailers and garage personnel in aftermarket segment). The management has also...

BEL clocked lease rental revenues to the tune of | 84.1 crore in Q1FY20. It leased 0.77 million sq ft (msf) in Q1FY20, taking total leased area to 2.50 msf area (out of 3.27 msf total leasable operational area). Of this, 0.38 msf at Brigade Tech Gardens (BTG), 0.37 at WTC Chennai. Till date, the company has leased total ~1.4 msf area at BTG and WTC Chennai and aims to lease total 4 msf (out of 5.2 msf) area by FY20E end. Going ahead, once the 8.7 msf area becomes operational, it could generate an exit rental worth | 736.4...

IDFC First Bank has walked a long path of transformation starting from infrastructure finance NBFC to universal bank. To strengthen retail franchise, IDFC Bank & Capital First Ltd engaged into a merger to form IDFC First Bank in December 2018. The merged entity is the eighth largest private bank with funded asset at ~| 112558 crore (retail: wholesale 40:60) as of March 2019 and wide customer base of ~70 lakh. It is being headed by V Vaidyanathan, who has a proven track record at Capital First. IDFC First Bank has a pan...

In Q1FY20, Lumax Ind.s reported revenues of Rs 402 cr (?17% YoY & ?7% QoQ) due to multi-month drop in automobile volumes. However, EBIDTA of Rs 39 cr was down only 4% YoY basis and flat on a QoQ basis with EBIDTA margin at 9.8% (130 bps higher on YoY basis).

Loan grew 14.7% YoY (18% YoY for domestic loans) led by retail loans, particularly unsecured and home loans. Deposit growth was strong at 20.8% YoY, led by term deposits (up 34% YoY) resulting in moderation in CASA to 45.2%.

Zensar Technologies Ltd, is a specialized IT Service provider headquartered in Pune, India. We initiate coverage with BUY rating and a target price of Rs. 270 i.e. 23% upside.

Repco Home Finance (RHFL) has reported its 1QFY20 results with the key pointers being: (1) GNPAs at 4.2% were seasonally high; the company has guided for FY20 asset quality to be better (2) Home market Tamil Nadu registered a growth of 8% YoY; overall growth guidance stands at 13-15% (3) Majority funding through banks and recent MCLR cuts should result in lower CoF; spread guidance is 3% for FY20. (See detailed conference call takeaways on page 2 for significant incremental colour). Per se, on the key P&L; items, RHFL posted NII growth of 7% YoY at Rs1,271mn, PPOP growth of 7% YoY at Rs1,035mn and PAT growth of 2% YoY at Rs624mn. We have revised our estimates for FY20/FY21 and retained Buy rating on RHFL, revising our target price to Rs424 (from Rs495 earlier)...

The 1QFY20 results reflects our rising concerns on the weak cash flows due to increasing pressure on the residential sector Brigade Enterprises (Brigade) has reported adjusted net profit of Rs412mn for 1QFY20, down 35% YoY. The earnings decline is due to: 1) Increase in depreciation and interest expenses by 21% YoY and 27% YoY, respectively. This increase is attributable to completion of some...

Soft Performance; Healthy Recovery on the Cards KNR Constructions (KNRC) has reported a soft performance in 1QFY20, mainly led by delay in AD for its key HAM projects and general slowdown in execution due to elections. Revenue declined by 17% YoY and 35% QoQ to Rs4.6bn, while EBITDA stood at Rs900mn (-18% YoY and -38% QoQ) vs. our estimate of Rs1bn. EBITDA margin continued to remain healthy at 19.4% mainly supported by higher revenue contribution from near-completion projects having highmargin components and the impact of IndAS 116. However, soft revenue booking along with higher finance cost and higher tax resulted in steep 36% YoY decline in net profit to Rs477mn. Current order book at Rs46.3bn (2.3x of TTM revenue) compared to Rs40bn in FY19 provides...