Given the attractive valuations, we maintain BUY with a TP of Rs 570 (2xDec-20 ABV of Rs 285). Contextually, 3Q was better than expected as disbursals and sanctions dipped merely ~6/4% QoQ and AUM grew ~12/3% to ~Rs 106bn. Calc. repayments dipped to ~17% of opening AUMs. Contrary to our expectations, margins expanded ~10bps to ~4.5% as the rise in yields outpaced the growth in CoF. GNPAs jumped ~30bps QoQ to ~3.9% driven by deterioration in the LAP book, a seasonal phenomenon.

Our TP is Rs 184/sh (8x Dec-19E standalone + OVL EPS and Rs. 31 from investments). Maintain BUY. We believe that the recent trend of the government to allow full pricing and use buybacks and/or dividends to raise cash (which also benefits the minority shareholders), is the likely way forward. We maintain our view that the government will not reverse the reform process by asking domestic Exploration and Production (E&P;) companies to bear the subsidy. Thus, we do not foresee any subsidy burden on the domestic E&P; companies.

We value the stock at Rs.425 (15x Dec-20E EPS) and maintain BUY JBM Auto (JBMA) delivered inline numbers in 3Q (revenue +9%, PAT+18%) amidst a challenging environment for the PV segment. We re-iterate our Buy rating on the stock, based on 1) New order wins in the sheet metal business from M&M;, Tata Motors and VECV 2) Encouraging revenue potential in the tooling business (high margin+30%), owing to rising localization and outsourcing of tooling requirements by major global OEMs (cost-benefit of 25% in India) and 3) Increasing economies of scale in the bus division, which will foster margins and profitability going ahead.

Mixed Show: Revenues In Line, But EBITDA Margin Declines La Opala RG (LORL) posted a mixed set of numbers for 3QFY19. Revenues increased 12.5% YoY and 8.2% QoQ to Rs785mn which were 1.3% below our estimate. The company reported EBITDA of Rs298mn, flat YoY but down 13.2% QoQ and 18% below our estimate. EBITDA margin for the quarter was 38.0%, 761bps below our estimate (-485bps YoY and -936bps QoQ). PAT decreased 4.4% YoY, but increased 1.5% QoQ to Rs219mn, 4.1% above our estimate. For 9MFY19, revenues increased 7.7% YoY to Rs2,061mn. EBITDA of Rs887mn increased 6.5% YoY as the margin declined 50bps to...

NESCO reported a net profit of Rs420mn for 3QFY19, down 4.1% YoY and 13.1% QoQ. The decline in earnings was because of: 1) Weak revenues of BEC (Bombay Exhibition Centre), down 6.7% YoY and 20% QoQ to Rs370mn. 2) Hospitality segment's revenues at Rs69mn were down 23.7% QoQ. 3) Other expenses increased 65.3% YoY and 23.5% QoQ to Rs258mn. We have...

Revenues Disappoint, But Margins Better Than Expectations The operating performance of CCL Products (India) or CCL in 3QFY19 was below our expectations. On a consolidated basis, revenues declined 14.6% YoY as the management indicated that business continues to be normal and quarterly volatility is largely related to order execution. For 9MFY19, revenues increased slightly by 0.4% YoY to Rs8,193mn. The company continues to focus on volume growth. On the analyst call, the management maintained its profit growth guidance of 15%-20% in FY19 (which was increased from 10%-20% during the 2QFY19 call) and maintained revenue growth...

Power Mech Projects (PMPL) posted 3QFY19 consolidated revenues of Rs6bn, up 72% YoY and 20% above our estimate of Rs5bn. The growth was driven by the surge in civil segment's revenues to Rs2.5bn (41% of total sales versus 16% YoY) owing to the execution of a strong opening order book. ETC segment's revenues grew 35% YoY to Rs1.9bn (31% of total sales), on a low base. O&M; segment's revenues were flat YoY at Rs1.4bn (24% of total sales). International projects contributed 21% to total sales (versus 28% YoY), while the non-power sectors accounted for 34% of total sales (versus 9% YoY) in 3QFY19. EBITDA rose 65% YoY to Rs780mn, translating to an EBITDA margin of 12.8%, marginally below our estimate of 13%. PAT grew 87% YoY to Rs339mn, much above our estimate of Rs245mn...

We reiterate a BUY rating with DCF based TP of Rs 590/sh (implied P/E - 17x Dec-20E EPS). Thangamayils (TJL) net revenue grew by 8.3% missing estimates (est. growth: 18.4%) as gold volume declined (-1.5% YoY) despite shift of festive season to 3Q (missing in 3QFY18). The quarter witnessed a double-whammy of high gold prices (+8% YoY) and natural calamity (Cyclone Gaja) in Tamil Nadu region which dented gold demand.

We have revised our FY20/21E earnings to factor in Gulf's healthy volume trajectory. Maintain BUY with revised TP of Rs 1,037 @ 22x Dec-20E EPS. Gulf Oil Lubricants (GOL) registered healthy volume growth of 20% YoY (34% including a one-off institutional order). Revenue/EBITDA/PAT grew by ~30/18/17% YoY to Rs 4.6/0.7/0.5bn. Gross/EBITDA margins were down by ~500/150bps to 43.3/15.8% on account of low-margin institutional order. Adjusted for this order revenue/EBITDA growth would be ~21/18% with ~30bps margin decline YoY.

Remain bullish on the stock and maintain BUY with a TP of Rs 830 (14x Dec-20E EPS). Neuland Labs (NLL) reported encouraging numbers with 41% YoY revenue growth and a 73% YoY jump in EBITDA in 3QFY19. However, EBITDA margin remained muted at 9% of sales (in line) on account of continued raw material pressure, underutilized facilities and inferior business mix. PAT at Rs 46mn was up 5x YoY.

Monetisation of completed inventory of ~Rs 28bn remains key. We maintain BUY with Rs 292/sh TP. 3QFY19 Revenue came in at Rs 10.8bn, Rs 1bn lower due to IND AS 115. Margins came in at 31.9% (vs 20.0/27.7% YoY/QoQ). PEPL had deliveries of 7mn sqft in 3QFY19 alone (record deliveries of ~24mn sqft in 9MFY19, 141% ahead of full year guidance) leading to total unrecognized revenue of ~130bn, incl. ~Rs 75bn of earlier reversals (re-recognition over 2.5-3 years).

We have upgraded FY19/20E EPS by 8.6/12.1% and increase TP to Rs 336/sh (12x Dec-20E EPS) vs. Rs 284/sh earlier. JKIL delivered strong execution beat with Revenue/EBIDTA/PAT coming in 20/13/11% ahead of estimate. EBIDTA margins contracted by 77bps YoY to 16.2% (110bps miss) on account of 205bps increase in employee costs (new additions and festive bonuses paid out during 3QFY19). 9MFY19 order inflow stood at Rs 45bn ex L1 orders of Rs 20bn. Order book stands at Rs 104.7bn (59% in Metro, 9.9% Civil, 12% Flyover, 18.2% Roads) ex L1 of Rs 20bn (NHAI Dwarka Pkg 2 & Airoli Katai elevated road EPC).

Volumes grew by a healthy 16% YoY with market share gains (management cited achievement of market-leading volume growth). EBITDA quarter (3QFY18) was 17.1% and 19.3%, respectively. YoY to 7.6% of sales, while other expenses were down 300bp YoY to 28.6%. 15.0%) the highest third-quarter margin in the companys history. higher than our estimate of +91.6% YoY. Interest costs reduced sharply by ~50% owing to debt reduction. If not for the tax rate at 38.4% for the quarter, the PAT beat would have been even higher.

Prestige Estates Projects or PEPL reported a net profit of Rs 674mn in 3QFY19, down 32.1% YoY and 24.1% QoQ. Residential sales volume at 1.21mn sqft increased from 0.78mn sqft in 3QFY18. Average realisation increased to Rs7,590/sqft from Rs6,869/sqft in 3QFY18 and Rs 6,104/sqft in 2QFY19. Rental income at Rs1,874mn increased 3% on QoQ basis and 14% on YoY basis. Earnings declined 32.1% on YoY basis on account of: 1) Lower revenues at Rs10,776mn, down 15.3% YoY. 2) Higher employee benefit expenses at Rs1,023mn, up 46.6% YoY. 3) Increase in other expenses by 139.7% YoY. 4) Increase in finance costs by 106.7% YoY. Earnings declined 34.1% QoQ because of: a) Decrease in revenues by 18.5% QoQ. b) Decrease in other income by 36.0% QoQ. We have retained Buy rating on PEPL and retained our target priceof Rs256...

Increased focus of the Chinese government on gas availability, construction of distribution infrastructure and suitable policies aiding consumption helped Chinese gas consumption to grow at CAGR of 16% during 2001-10 and another 10% during 2011-18.

ICICI Securities Ltd | Retail Equity Research Indian Hotels reported a good set of Q3FY19 numbers. Consolidated revenues increased 10.5% YoY to | 1323.5 crore (vs. I-direct estimate of | 1302.1 crore) mainly led by healthy turnaround of international segment with RevPAR growth of 9.4% YoY. RevPAR of domestic...

Action Construction Equipment (ACE) reported a weak Q3FY19 performance wherein revenues grew ~30% YoY to | 362.6 crore mainly driven by robust growth in cranes & tractors i.e. agriequipment segment EBITDA margin fell ~250 bps YoY to 7.2% largely due to impact of higher steel prices (COGS, up ~460 bps YoY), offset by operational efficiencies due to incremental demand growth. EBITDA was at | 26 crore, down 4.1% YoY. PAT de-grew 9.4% YoY to | 14.9 crore Cranes segment recorded revenue of | 249.2 crore growing 34.6%...

For Q3FY19, revenues came in at | 384.9 crore, up 38.1% YoY. We expected revenues of | 349.2 crore (25% growth) Gross margins were at 45.6% vs. 36.9% YoY. EBITDA margins were at 14.4% vs. 7.4 YoY. Gross margins, EBITDA margins were lower in Q3FY18 due to a change in product mix and high input prices during the quarter. We believe the same has now corrected in Q3FY19 Accordingly, absolute EBITDA and PAT grew 168.1% and 188.2% to | 55.6 crore and | 26.4 crore, respectively...

ICICI Securities Ltd | Retail Equity Research Cochin Shipyard (CSL) reported strong Q3FY19 numbers despite higher contribution from the shipbuilding segment. This is due to strong margins posted in both segments of the business. Shipbuilding and ship repair segment reported EBIT margins of 19.4% (normal margins 8-15%) and 39.8% (normal margins 25-35%) respectively. Shipbuilding and ship repair segment contributed 77.1% and 22.9% to the topline, respectively...

ICICI Securities Ltd | Retail Equity Research Heidelberg Cement reported a strong set of Q3FY19 numbers, beating our estimates on all fronts. Revenues increased 15.4% YoY to | 558.4 crore (above I-direct estimate of | 539.8 crore) led by a 6.3% rise in volumes and 8.5% growth in realisations The EBITDA margin increased 537 bps YoY to 21% (vs. I-direct estimate: 20.5%) mainly led by healthy realisations. EBITDA/tonne increased 46% YoY to | 905/t (vs. I-direct estimate of | 870/t)...