Buy

ICICI Securities Ltd | Retail Equity Research Indian Hotels' Q1FY17 results are not comparable due to adoption of new accounting standard IND-AS. Revenues increased 5.6% YoY to | 946.6 crore (vs. I-direct estimate of | 1,132.1 crore) The company reported an EBITDA of | 94.2 crore vs. | 89.4 crore in Q1FY15. EBITDA margins broadly remained flat at 10.0% while it...

Motherson Sumi Systems Ltd. (MSSL) reported mediocre performance in Q1FY17 amid overall challenging environment and headwinds in global business. It's consolidated Rev/EBIDTA/adj PAT grew by 15.5%/22%/17.1% YoY and 2.1%/-11.6%/-26.1% QoQ to Rs 104.5bn/9.4bn/3.1bn (our estimate of Rs 111.5bn/11.8bn/3.9bn). Its EBIDTA margin expanded 50 bps YoY (down 140 bps QoQ) to 9%, benefitted by lower commodity prices. Revenues at SMR grew by 6.6% YoY and at SMP by 12.9% YoY in Euro terms, is commendable. Its standalone revenue grew by 18.3% YoY (down 2.1% QoQ), on the back of strong PV sales and better traction from high end models. Lower operating margins at SMR pulled down overall EBIDTA margins QoQ in Q1FY17. SMR's EBIDTA margins expanded by 54 bps YoY (down 344 bps QoQ) to 9.1%. SMP's EBIDTA margins rose 79 bps YoY (down 32 bps QoQ) to 6.9%.Karvy maintain their positive view on MSSL and reiterate our BUY recommendation on the stock.

Banking on Revival in Domestic Demand Environment: Surge in domestic industrial activity complemented by adequate capacityheadroom - Growth in investment activities and increased investments in key sectors like power, steel, construction, infrastructure and cement are giving an optimistic outlook for future. We believe the Gross Fixed Capital Formation (GFCF)to GDP to improve to over 33% by FY17E; also AWLs current capacity utilization levels of ~ 65%-70% leave enough headroom to sustain the anticipated increase in demand. We expect the capacity utilization rates to surge up to ~ 80%-85% by FY18E to aid revenue to grow at 7.5% CAGR for FY16-18E.

In-line; sales up ~17% YoY (est. of +13% YoY), EBITDA margins at 17.2%: Amara Raja Batteries’ (AMRJ) 1QFY17 net sales grew 17% YoY (+13% QoQ) to INR13.2b, driven by 30% YoY growth in both 2W and 4W replacement markets, coupled with 15% YoY growth in the UPS segment. Telecom vertical was flat YoY.: The stock trades at 27.1x/21.8x FY17/18E EPS. Maintain Buy with a target price of ~INR1,038 (~25x FY18E EPS).

Stellar growth, focus on branding through advertisements Revenue in line, but EBITDA margins below estimates: Manpasand Beverages' (MANB) 1QFY17 revenues grew a stellar 58% YoY to INR2,293m (est. of INR2,246m) (revenue net of excise duty). Revenue of Mango SIP grew 47% YoY, while that of Fruits Up grew a robust 120% YoY. Revenue mix for Mango SIP, Fruits Up and others (incl. ORS and Coco SIP) stood at 77:22:1 v/s 84:16:0 in 1QFY16. Revenues also included contribution of ~INR120m from Modern Trade, which was absent in the base quarter. EBITDA margin declined 360bp to...

Bank of Baroda (BOB) reported PPoP (+21% YoY) beat of 42% in 1QFY17, helped by strong NII performance (20% beat) and contained costs (opex beat of 10%). While slippages were high at INR61b (6% annualized slippage ratio), management maintained the slippages guidance of INR150b for FY17, which is...

Page Industries' (PAG) 1QFY17 net sales grew 27.4% YoY (est. of +23%) to INR5.72b (Ind-AS) with 21.3% YoY volume growth. Demand revival has been healthy, according to management. EBITDA grew 8.8% YoY (est. of +21.9% YoY)...

RESULTS OVERVIEW: Disappointing Q1, VAT rate issues in Gujarat hampers volumes, long term story intact Atul Auto reported revenues of INR 93.0cr for Q1FY17 (-12.9% YoY ). The volumes declined 13.9% YoY on account of VAT related issues in Gujarat, its major market (~40% of sales). The issue has been resolved and the management...

Triggers in place to drive up the return ratios Dewan Housing (DEWH) is one of the largest pan-India housing finance companies focusing on the lower and middle income (LMI) segment. With 353 branches/centers across the country, it largely caters to the self-employed segment, which constitutes 40% of total AUM. DEWH's core competence lies in its ability to conduct credit appraisals for customers in the LMI and self-employed segments. We expect 20%/23% AUM/PAT CAGR over FY16-19 and 1.4%/19% RoA/RoE by FY19. At P/B of 1.1x FY18E, we believe DEWH is undervalued,...

Apar operates in the diverse fields of electrical, metallurgical and chemical engineering. Over the years, it has evolved into a diversified USD 850 million conglomerate offering value added products and services in the areas of power transmission conductors and petroleum specialty products. Entered automotive lubricant manufacture under a license agreement with eni S.p.A, Italy, in 2007, to produce and market high-end automotive and industrial lubricants under the Agip brand in India; eni is the world's eighth-largest automotive lubricants...