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Minda Corporation consolidated business grew by 31.7% (YoY) / 7.9% (QoQ) driven by Minda Stoneridge revenues which grew at ~ 25.0% (YoY) while standalone business grew at 12.6% (YoY) and remained flattish with -0.8% (QoQ), which the company attributes it for the seasonality. Similarly, EBITDA margins have improved by 75bps to 8.4% in Q1FY17 as compared to last quarter as they had one-off expenses in Q4FY16; while on YoY basis, EBITDA margins have shrunk by 53bps impacted by their joint ventures and Minda Furukawa on account of pricing constraints and higher imports. However, initiatives like alternate sourcing and localization are expected to revive EBITDA margins going forward in FY18E.

The Board of Directors of State Bank of India (SBI) has approved the swap ratio for taking over four associate banks i.e. State Bank of Bikaner & Jaipur (SBBJ), State Bank of Mysore (SBM), State Bank of Travancore (SBT) and Bharatiya Mahila Bank (BMB). Notably, SBI has not publicly announced swap ratio for unlisted State...

Background: Amara Raja Batteries Ltd (ARBL), a Joint Venture between Amara Raja Group & Johnson Controls, each holding 26% stake, is the second largest battery manufacturer in India. It is the largest manufacturer of standby valve regulated lead acid (VRLA) batteries in the Indian Ocean Rim region and manufactures automotive batteries for all vehicle segments. With a production capacity of 18mn units (Automotive: 14.5 mn & Industrial (MVRLA) - 3.6 mn), ARBL has built a strong pan-India distribution network of 30,000 retailers and 274 franchisees (Amaron network) & 900 retailers (Powerzone network). ARBL's market share in different segments: 4-wheeler...

Merger of subsidiaries is a onetime cost for creation of Provident Fund of Rs 30bn. The cost to income ratio of merged entity stands at 50% which the management expects to come down to 45% over three year time frame. This will be driven by branch rationalisation; economies of scale, removal of duplicationofvariousdepartmentliketreasury. Rationalisation of deposit cost in line with parent bank as associate use to...

9 Debt reduction and operational excellence are the only two areas we understand the companywillworkaggressivelyandthisisboundtoreratevaluations. 9 Giventhestocktradesatdeepdiscounttopeers(US$55/tonne),weseedeepvaluein thestock.EvenattargetstocktradesatUS$75/tonne(~40%discounttoreplacement) 9 At this stage we do not foresee any material risk to our estimates. There is scope for earningsupgradegivenarecoveryincementprices. 9 OurearlierpricetargetofRs125isnowmetandweupgradeourtargetmultipleto7.0x EV/EBITDA(vs.5.0xearlier).WemaintainBUYonthestockwitharevisedpricetargetof...

Kotak Mahindra Bank Ltd. (KMBL) is India's fourth largest private sector Bank with a pan India presence. It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of personal finance, investment banking, life insurance and wealth management etc. As on June 30, 2016, it has a national footprint of 1333 branches spread across 674 locations and 2034 ATMs, affording it the capacity and means...

Minda Corporation Ltd is the leading automotive components manufacturer & flagship company of Spark Minda, Ashok Minda Group. Company has a diversified product portfolio that encompasses Safety Security, Driver Information & Interior Systems for automobile sector across the globe. These products caters to two wheelers, three wheelers, passenger vehicles, commercial vehicles & aftermarket. Company has 32 state of the art manufacturing...

Lumax Industries Ltd (LIL), incorporated in 1945 was set up in Delhi by S.C. Jain as a trading company under the name Globe Auto Industries. In 1956, Lumax setup manufacturing units for automotive lighting equipment and other components. In 1984, Lumax embarked on collaboration with Stanley Electric Co. Ltd., Japan and converted itself from private limited to public limited company. Company derives ~65-70% of sales from PV segment, and 30%-35% from 2W + UV. Company caters...