Buy

Titan Company Ltd is in the Consumer Durables sector, having a market capitalization of Rs. 81,609.74 crores.

Growth Path Remains Intact Despite Soft Performance; Maintain BUY Ahluwalia Contracts (ACIL) has reported a soft performance in 1QFY19. Led by slow execution in new projects, ACIL's revenue declined by 20% YoY (-10% YoY GST adjusted) to Rs4bn vs. our estimate of Rs4.2bn. Further, EBITDA declined by 2% YoY and 1.5% QoQ to Rs526mn, while EBITDA margin improved by 238bps YoY and 107bps QoQ to 13%. Net profit stood at Rs282mn (-4.5% YoY and -9% QoQ). ACIL received order inflow of Rs20bn in FY19 YTD taking its total order backlog to Rs47bn (2.9x FY18 revenue). Upgrading order inflow guidance to Rs24bn from Rs20bn, the Management has maintained revenue growth guidance of 20% with EBITDA...

Subdued Performance on Cost Pressure & Dismal Realisation Led by subdued realisation and higher gas prices, Asian Granito India (AGIL) has reported a weak performance in 1QFY19, with its reported revenue growing by a moderate 6% YoY (+11% GST adjusted) to Rs2.4bn. EBITDA fell by 30% YoY and 44% QoQ to Rs204mn, while EBITDA margin contracted by 445bps YoY and 71bps QoQ to 8.6%. While sales volume grew by a strong 23% YoY (-35% QoQ) to 8msm, a substantial 14% YoY and 6% QoQ decline in blended realisation to ~Rs298/sm along with ~16% YoY jump in gas prices dragged its quarterly operating performance. Further, 2QFY19 performance is also expected to be affected by transport strike...

Consolidated revenue of Power Mech Projects (PMPL) surged by 28.9% YoY to Rs4.6bn, aided by higher revenue from ETC (+ 25.9% to Rs1.8bn) and Civil & Other Works (+ 60.2% to Rs1.4bn business. Further, revenue from O&M; segment rebounded by 5.8% YoY to Rs1.2bn post the Rs200mn impact led by temporary project shutdown in 4QFY18. Looking ahead, we believe dominant position in power EPC business, impressive order book and superior execution capabilities will drive PMPL's profitability. We maintain our BUY recommendation on the stock with an upwardly revised Target Price of Rs1,178 (from Rs1,080 earlier). Robust Revenue on Improved Execution...

We maintain BUY with a SOTP of Rs 489/sh (EPC segment at 476sh (EPC segment at 10x Mar-20E EV/EBITDA, Kota BOT 1x P/BV). AHLU 1QFY19 net revenue at Rs 4.0bn was 3.5% below our estimates (Rs 200mn miss in CPWD redevelopment project in Delhi tree felling issue and Rs 150mn in West Bengal NBCC project redesigning). EBITDA at Rs 0.5bn was 1.6% below estimates. EBIDTA margins expanded 238bps YoY to 13.0%.

We maintain BUY with a TP of Rs 1,434/sh (10x FY20E EV/EBITDA and BOT at 1x equity invested). DBL delivered strong execution with 1QFY19 revenue beat of 3.7%. Revenue for 1QFY19 came in at Rs 24.4bn. Margins continued to be higher than industry at 17.8%. APAT at Rs 2.5bn was 30.9% above our estimates on account of deferred tax reversal impact of Rs 173mn. Adjusted for deferred tax APAT was 22.0% above estimates. There was no early completion bonus in 1QFY19.

We value the stock Rs. 289(20xFY20E EPS) vs 296 earlier. Maintain BUY Suprajit Engineering (SEL) consol EBITDA and PAT numbers were slightly below estimates in 1Q. Net sales at Rs. 3.6bn (+12% YoY) led by 19% growth in core automotive cable business, offset by muted growth in Phoenix (+4% YoY) and Wescon business(+4% YoY). Consol EBITDA rose 21% YoY at Rs. 554mn with margin at 15.3% (+107bps YoY/-275 bps QoQ).

Minda Corp reported strong set of numbers, which was marginally ahead of our estimates. Its consolidated net revenue and PAT grew by 33.8% and 63.3% yoy. The growth was led by robust growth witnessed across all three verticals and improved operational performance.

With a revised TP of 495 (24x on FY20E EPS), we maintain BUY. Cadila (CDH) continues to be at pace with double-digit YoY growth which started in 2QFY18. In 1QFY19, CDH reported revenue at Rs 28.9bn showing a growth of 32%YoY. EBITDA at Rs 6.4bn and PAT at Rs 4.6bn were up 133% and 233% YoY respectively. EBITDA margin came in at 22.3%, improving ~1000bpsYoY. This growth was primarily driven by the US and India businesses which were up 27% and 40% YoY respectively. Other major segments including LATAM and ROW markets and consumer wellness, animal health, and API businesses also saw double digit growth.

Remain bullish on the stock and maintain BUY rating with the target price of Rs 670 (25x FY20E EPS). Sun Pharma (SUNP) posted good numbers in 1QFY19. Revenue grew ~16%YoY to Rs 72.2bn, and the EBITDA margin expanded 460bps to 22.2%, ~100bps above our estimates. EBITDA at Rs 16.1bn and PAT at Rs 9.8bn were up 46.6% and 86.9% YoY respectively. Despite challenges in the US generics space and decline in the Taro business, SUNP managed 12% growth in revenues in the US market. Additionally, good performance in India which showed growth of 22% coupled with 11% growth in ROW driven by key markets including Romania, Eastern Europe, and Asia led to positive results for the quarter.