Buy

IILs 1QFY17 revenues grew 7% YoY to Rs 3.1bn mainly led by formulation segment. Gross margins improved to 32.7% ( 300bps YoY) led by better product mix. However, higher gross profits were negated by higher other expenses (inventory hit and marketing expenses for newly launched rice herbicide Green Label). Subsequently, EBITDA was Rs 367mn ( 5%) and APAT was Rs 181mn (-8%).

As expected, CUB improved across parameters this quarter. Growth picked up in core segments (traders and MSME), NIM was healthy (4.1%), C-I was stable and, most important, asset quality seems to be on a gradual and sustainable mend.

Broad based growth; Reasonable Valuations Warrant an Upgrade Backed by 10.2% volume growth, Jyothy Laboratories (JYL) reported 8.9% yoy rise in consolidated sales to Rs4.4bn in 1QFY17. While EBITDA grew 36.9% yoy to Rs791mn, consolidated net profit stood at Rs459mn. Cash profit rose by 25% yoy to Rs544mn in 1QFY17. We expect JYL to post 13% & 14% CAGR in revenues and earnings through FY16-18E. The stock currently trades at reasonable valuation of 25.4x FY18E earnings which coupled with expected uptick in growth makes it an attractive investment opportunity. Hence, we revise our recommendation on the...

JK Cements is one of the largest cement players in North India. It manufactures grey cement, white cement and white cement based wall putty. Currently the grey cement capacity is 10.5MTPA. Domestic white cement capacity is 0.4MTPA (second only to UltraTech, which has capacity of 0.55MTPA). The company also manufacturers putty and has an installed capacity of 0.3MTPA. The company has also installed a grey cum white cement plant with an installed capacity of 0.6MTPA (white cement) and 1.02MTPA (grey cement) in Fujairah (UAE) in a 90:10 JV with the Government of Fujairah. It has also expanded its grey...

Background: City Union Bank (CUB) among the smaller-sized banks in the private sector space operates a network of 525 branches. With about 2/3rds of its branches located in Tamil Nadu the bank's business is largely skewed towards the Southern India. Majority of its business comes from branches located in South India. CUB has a significant chunk of its branches in urban and semi-urban areas. With no identifiable promoters CUB is run by a team of...

Tata Global Beverages reported good set of results in 1QFY17. Consolidated revenue grew by ~4%/-11% to Rs.17.1bn/Rs.19.2 bn YoY/QoQ. The company’s EBITDA margin expanded by 283/531 bps to ~31%/44% YoY/QoQ. Adjusted PAT was Rs.1178 mn in 1QFY17 vs Rs.814 mn in 1QFY16 led by strong growth in operating profit.BOB Capital Markets Ltd value the stock at an average PE of 23x FY18e EPS with target price Rs.175 (28% upside).

Revenues de-grew 1.8% YoY to | 1420 crore (I-direct estimate: | 1547 crore). Revenues in the pharmaceutical business (including drug discovery segment) grew 10.1% YoY to | 802 crore while life science ingredients (LSI) revenues de-grew 13.9% YoY to | 618. Degrowth in the LSI segment was mainly due to lower crude prices and optical focus on profitable products. EBITDA margins increased ~345 bps YoY to 25.9% (I-direct estimate: 21.8%) on the back of 180 bps increase in both pharmaceutical and LSI margins to 34% and 19%, respectively.Adjusted net profit grew 22.8% to | 162 crore (I-direct estimate:| 132 crore) due to better operational performance and lower interest cost.

City Union Bank reported a healthy set of numbers. PAT came in at | 123.5 crore, up 10.8% YoY vs. estimate of | 120 crore due to higher-than-expected NII of | 280 crore (up 25% YoY) . Higher traction in NII was owing to an 11 bps QoQ improvement in margins to 4.07% (highest in the last several quarters) and healthy credit growth of 18.5% YoY to | 21216 crore.Operational profit increased at a healthy pace of 19.6% YoY to | 236 crore, above our estimate of | 223 crore. ICICI Securities Limited maintain their BUY rating and revise our target price higher to | 140 from | 118 earlier as we raise our target multiple to 2.2x FY18E ABV vs. 1.9x earlier.

VST Industries recorded strong 33.3% growth in topline led by ~70% jump in raw tobacco sales & ~16% growth in cigarette sales. Excise outgo this quarter increased ~13% to | 320 crore mainly due to 10% increase in excise duty in 2016 Budget • Cigarettes volume growth witnessed uptick to 4% mainly on the back significant volume decline in base quarter & moderate excise hike of 10% in 2016 Budget. Volume contribution from 64 mm category was 60% during the quarter. We changed our volume estimate from 2% to 4% in FY17E & from 1% to 2% in FY18E on account of low base effect created by significant decline in cigarettes volumes by 7% in FY15 & 3% in FY16. ICICI Securities Limited value the stock at 18x FY18E EPS of | 135.4 & arrive at a target price of | 2437/share with a BUY recommendation on the stock.

Revenues for the quarter de-grew 6% YoY (up 5% QoQ) to | 1339 crore (I-direct estimate: | 1429 crore). Exim and domestic de-grew 6% YoY each to | 1091 crore and | 248 crore, respectively .Post a decline for four consecutive quarters, total volumes for Q1FY17 grew 2% YoY to 735060 TEUs (I-direct estimate: 736537 TEUs). Exim was the major contributor with a growth of 3% YoY to 631918 TEUs. However, domestic volumes moderated the same with de-growth of 4% YoY to 103142 TEUs. Given the lower lead distance, Exim and domestic realisation de-grew 8% and 2%, respectively.we continue to value Concor at a P/E of 25x FY18E earnings of | 64. ICICI Securities Limited maintain BUY with a target price of | 1600.