Our recent interaction with the TCI Express (TCIEXP) management indicates severe pressure on near-term operational performance stemming from the Covid-19 outbreak.

TTK Prestige recently held a conference call to give an update on the business performance and to analyse the prospective impact of Covid-19. The company is constantly assessing the impact of Covid-19 but cannot quantify the real magnitude of the outbreak at the moment as it is yet to peak out. In the recent market fall, TTK Prestige witnessed significant correction of ~26%. With earnings in the short-term expected to be negatively impacted, TTK through its strong promoter pedigree and brand patronage...

Investment Strategy report for FY 21. The strategy advised is keeping in mind the current challenging environment and contains stock recommendations with short & long term view.

According to our recent interaction with CCLP management, although the business has not seen any production halts or order cancelations until first half of March,2020, delayed dispatches to its exporting countries (~90% of revenue) could limit its topline growth in Q4FY20.

January & February witnessed reasonable growth due to inventory build-up at the dealer's level. In March, the company is expected to be impacted negatively by the lockdown situation across states. Standalone sales for the last 10 days fell 10% YoY due to shutdown...

The ongoing coronavirus outbreak has had a severe impact on the hotel bookings in India from Feb-20 onwards with massive forward booking cancellations across cities. This in turn has eroded the ability of hotels across India with heavy loss of business during this peak season time. The extent of this lost business has primarily been seen across all major tourist and business destinations and we expect the situations to remain severely weak with individuals cancelling or deferring their travel plans and thousands of companies adopting the work from home' and no travel' policies. This...

The ongoing coronavirus outbreak has had a severe impact on the hotel bookings in India from Feb-20 onwards with massive forward booking cancellations across cities. This in turn has eroded the ability of hotels across India with heavy loss of business during this peak season time. The extent of this lost business has primarily been seen across all major tourist and business destinations and we expect the situations to remain severely weak with individuals cancelling or deferring their travel plans and thousands of companies adopting the work from home' and no travel' policies. This...

Demand environment anaemic but margins steady

The interaction covered large Road players, Building EPC players and T&D players. Large part of the halt is (1) Due to Central/State Govt directive on lock down and work from home (2) Few clients have told Contractors for closure till 31st March 2020 & (3) Goodwill towards employees'/laborers' safety. Whilst our last week survey was more encouraging with our coverage universe execution largely on track, the call for Janta Curfew has resulted in project sites staring at closure. We interacted with 15 large Indian Infra companies to gauge on the ground impact of COVID-19 on execution.

We are upgrading Indraprastha Gas (IGL) from Sell to Buy based on 41.3% upside from CMP to our revised DCF-based TP of Rs431, assuming regulated tariff, post the 30% correction in the stock from three months ago.The new TP includes Rs52/sh we estimate for the new CGD areas (GAs) under development. We have cut our FY20-22E estimates by 1.9%/16%/15.2% based on volume and margin assumptions tempered for the twin impact of COVID19 and the slowdown. We see moderation in IGL's city gas volume growth in 4QFY20 to 9% vs 13.4% in 3QFY20, implying nil growth in March 20. Further we could see nil growth in 1HFY21~with contraction of 6% likely in 1QFY21E, if the COVID...

We recently had a call with Mr. Dipesh Singhania, CFO of NESCO Limited (NESCO) to discuss the impact of the COVID-19 outbreak on the exhibition business in general and on the near term operational performance in specific. The Bombay Exhibition Center (BEC) is expected to witness a temporary setback. The management mentioned that the virus outbreak is a special case situation and hence the regular clauses of agreement with regards to rescheduling and cancellations might not apply. The management expressed its intentions of accommodating its clients in the best possible manner. The exhibitions which were scheduled up to 20th April 2020 have been rescheduled. Currently,...

We recently spoke with Phoenix Mills representative regarding their response to the outbreak of COVID-19 (coronavirus) as retail and commercial property owners and the impact of coronavirus on the operational performance of retailers in general and Phoenix Mills in specific. The key takeaways of the discussion include: 1. Most malls (with the exception of smaller centres in Lucknow and Bareilly) are currently under shutdown....

India Strategy: Covid-19 - Market bottom elusive stick to select cash-rich stocks. Weekly Eco Wrap: COVID-19 cases jump, so does volatility

We present key takeaways from our meeting with the management of Cera Sanitaryware (CRS).

The transaction is subject to fulfilment of certain conditions and both companies would be working together to complete this in the next few months. Glenmark, however, will continue to manage the business until the...

Impacted by shortage of nitric acid, Aarti Industries reported no small stress in its speciality chemicals business EBIT margins for it shrunk to 20.6% in Q3 from a gravity-defying 23.9% in Q2, resulting in flat lining of its EBIT. Wherefore, NCB production plunged 16.1% to 14900 tons while Aarti could churn out just 1666 tons of nitro toluene last quarter when compared to 4000 tons in the same quarter a year ago. Volumes barely showed any buoyancy...

Amber Enterprises is a leading solution provider for Air conditioner OEM/ODM Industry in India. It caters to 8 out of top 10 AC brands AC brands in India which together have 75%+ market share in India. Amber also manufactures AC/NON AC components in its endeavour to be a total solutions provider.

Owing to recent correction we upgrade ORL from ADD to BUY. We have cut FY21/22E EPS by 12.1/21.8%. Reduce our NAV based TP to Rs 543/sh. Risks (1) Prolonged COVID impact (2) Sharp correction in property prices. We interacted with the management of Oberoi Realty Ltd (ORL) to assess the impact of COVID. Some obvious concerns viz (1) Residential demand (2) Site labour availability (3) Capex on ongoing real estate assets (4) Impact of Mall closure & (5) Status of new launches are addressed in this note.

LUCRATIVE VALUATIONS ON THE BACK OF CORONAVIRUS CONCERNS

Bata India Ltd (BIL) is the largest retailer and leading manufacturer of footwear in India with ~1400 retail stores as on Dec 2019. We revise our Target to Rs.1,400 (earlier Rs1,850) factoring the demand weakness due to COVID-19 epidemic, but upgrade to Accumulate rating considering the recent sharp fall in stock price....