Buy

PVR has announced acquisition of SPI Cinemas, a leading multiplex player in the Southern market. The acquisition is expected to be complete in a month and would make PVR no. 1 player in key markets like Chennai, Bangalore and Hyderabad. PVR would pay EV of Rs10 bn in total and would fund it through a combination of internal accruals, debt and equity. Based on the brief financials of SPI Cinemas shared...

Rain Industries Q2CY18 result was slightly ahead of our forecasts. Sales increased 15.1% QoQ to Rs38,126 mn led by higher CPC volumes. Although Carbon Products EBITDA/tonne fell 15.1% QoQ to $110; nevertheless, CPC volumes (a concern in Q1CY18) recovered 21.8% QoQ to 474 kt. Overall, EBITDA was better than our forecast at Rs7,017 mn (+8.5% QoQ) on better than expected Advanced Carbon Materials (ACM)...

Oil India (OIL) Q1FY19 result came as a mixed bag where Revenue and EBITDA was largely in line with our estimates while net profit was a miss to our estimates owing to higher tax expenses and lower other income. Revenue was up 45.4% YoY to Rs33.9bn, while EBITDA was up by 61.1% YoY to Rs14.1 bn and PAT was up 56.2% YoY to Rs7bn. Oil production remained flattish YoY to 0.844mmt while gas production volume declined 4% YoY to 696mmscm. Oil net realization was up 49% YoY to US$72/bbl while calculated gas realization was up 25% YoY to Rs7.4/scm. We raise our EBITDA/EPS estimates by 36%/33% for FY19E and 15%/14% for FY20E on higher crude oil price and...

We maintain BUY on ASBL with a bonus adjusted TP of Rs 225/share. ASBL delivered weak 1QFY19 performance with revenue 3.9% lower than our estimates. Construction revenue came in at Rs 6.3bn, sale of goods at Rs 0.4bn and BOT at Rs 0.1bn. Exceptional settlement Rs 0.1bn in Chittorgarh Bypass has been adjusted from revenue. Blended EBITDA margins were lower at 10.4% (-267bps YoY, -107bps QoQ) on account of a larger share of power segment (Rs 1.3bn in 1QFY19) in which ASBL generates lower margins.

Sector: Auto ancillaries /Mid-Cap | Earnings Update 1QFY19 Background: Established in 1958, Minda Industries (MIL) is a flagship Company of UNO MINDA GROUP and one of the leading suppliers of proprietary automotive solution to OEMs. Headquarter at Manesar, Gurgaon, the company has 32 plants across India and R&D; centers spread across the globe in six locations. The company offers a wide range product across different verticals of auto components like switching systems, lighting system s, acoustic systems and alloy wheels among others. It has more than 145 design registration and more than 10,000 touch points. Company has ~50% market share in switch segment...

Our SOTP target is Rs 314/sh (9x Jun 20 standalone core EPS + Rs 86/sh from investments). Maintain BUY. OILs 1QFY19 revenue was at Rs 33.9bn (+45.4% YoY, 13.1% QoQ), led by higher oil realisations at Rs 4,823/bbl (+54.6% YoY, +15.4% QoQ) and increase in natural gas realisation to USD 2.9/mmbtu (+16.6% YoY). Partially offset by 0.6% reduction in crude oil sales volumes to 0.82mmt. EBITDA was up 61.1% YoY and 75.9% QoQ to Rs 14.08bn.

Profits aided by Operating income and Other Income: Cadila's revenues increased by 29.5% on a YoY basis to Rs 28.9 bn (our estimate of Rs 29.8 bn) during the quarter. Key outperformer was US. Operatingmargins increased to 22.3% (lower than our estimates of 24.0%) compared to12.8% in Q1FY18 due to higher revenues, operating income and lower R & D.

Outlook & Valuation: We maintain our Buy recommendation with a slight reduction in Target Price to `320 from `327 (due to increased net debt level). However, we expect JSPL to perform well in coming years owing to improving realization in steel segment, limited addition of steel capacity in near term and improving demand of steel goin..

We initiate coverage with a BUY for a price target of Rs 270 representing an upside of 22.7% from the CMP of Rs 220 over the next 24 months. We expect the revenues to grow by 12% CAGR to INR 2485 crores by FY2021. On the back of robust revenues, we expect the EBITDA and PAT to grow to Rs 410 crores (18.8% CAGR) & Rs 277.3 crores (15.7% CAGR) respectively by FY21. Operating margins are also set to improve by 120 bps to 16.5% by FY21. Return ratios ROE & ROCE are also expected to remain elevated at 17.1% and 18.6% respectively.

Q1FY19 result highlights: Revenues for Sun TV Network was up 42.5% to Rs11.2bn (10% above expectation) on the back of Rs3.9bn revenue from IPL, 20% YoY growth in advertisement revenue and 21% YoY growth in DTH revenues. Operating profit was up 63.8% YoY to Rs7,347mn on Rs2bn operating profit from IPL against loss of Rs224mn. Depreciation and movie amortisation cost was up 42% as company showed higher number of blockbuster movies on 25th anniversary of the Sun TV channel. PAT rose 62% YoY to Rs4,091mn (3.8% above expectations). Ex-IPL revenue growth was 14.1%YoY to Rs7.3bn while EBIDTA growth was 13.7%YoY to Rs5.3bn....