The Tata Power Company Limited generates and supplies electricity. The Company constructs and operates independent power plants, as well as specializes in transmission and distribution of electricity. It delivers its...

Gillette India's (Gillette) 4QFY19 operating and net profit performance is below expectations largely on account of increased marketing investment, which is up nearly 42% YoY. Topline performance is slightly above expectation, largely driven by the Oral Care business, which grew by 42% YoY. In the Oral Care business, the company continues to demonstrate strong capability and its product innovations such as Cavity Defense Black' and Neem' infused toothbrushes have been received extremely well in the market. While the Grooming business witnessed improvement in growth rate to around 7% YoY, it is still below expectation. In our opinion, the company still needs to build on the brand equity of Mach 3 Start, which can help drive growth...

We maintain our Hold rating on the stock with a target price of Rs. 635 based on 29x FY21E adjusted EPS. Margins contract as costs increase Q1FY20 revenue was Rs. 2,647cr (up 24.0% YoY) against Rs. 2,134cr. for the same period last year. EBITDA margin declined 39bps YoY due to an increase in cost of sales (up 26.7% YoY), marginally offset by a decrease in employee benefit expenses (down 8.0% YoY). Reported PAT reduced 10.2% YoY to Rs. 165cr, as the VRS scheme...

Given strong quarter and a positive outlook across all businesses, we maintain our ACCUMULATE rating on the stock with a target price of Rs. 1,167 based on ~51x FY21E adj. EPS. Revenue growth across all businesses Q1FY20 revenue rose 15.7% YoY to Rs. 5,151cr with strong performance across all businesses. Jewellery contributed the most to the overall revenue (+14.3% YoY to Rs. 4,164cr despite higher gold prices and 2.5% consumer duty imposed on gold). Watches segment revenue grew 20.1% YoY to Rs. 716cr primarily driven by large institutional...

Net interest income improved 26.8% YoY, partly offset by weakness in other income, which declined 11.1% YoY. On improving asset quality and strong profitability, we maintain our...

22 August 2019 the fourth straight quarter of extremely healthy sales growth. Even adjusted for the GST effect on sanitary napkins (which optically inflates sales but has an adverse effect on operating costs), comparable growth stands healthy at 12% YoY for 4QFY19 and 14% YoY for FY19. EBITDA, however, was down 210bp YoY (off an extremely high base of 4QFY18), but other expenses were up by 330bp YoY. The sharp increase in other expenses (for which no explanations were provided) is surprising, given that it too has come off a very high base (+630bp YoY in 4QFY18). Net sales were up by 20% to INR29.5b. EBITDA declined 3% to INR6.1b, while adj. Margins have remained volatile over the past few years, but sales growth has revived significantly due to distribution expansion and sharp ad spends in the preceding quarters. While the structural growth opportunity in the feminine hygiene segment (~70% of sales) remains very promising, valuations of 52.

Aims to achieve further growth through outsourcing Plywood sales volumes grew 4.1% YoY to 13.57 MSM (premium category contributed 64%) in Q1FY20 while realisations improved 3.3% YoY to | 222/sq mt. GIL's own manufacturing facility is operating at 139% utilisation as of Q1FY20. With capacity constraints in place, it plans to achieve further growth via outsourcing. It has already entered into a JV (30% ownership) for premium-end products (11 MSM plant capacity) that is expected to commence production by Q3FY20E & could ensure revenue worth | 100115 crore at peak utilisation for GIL. It is also planning to enter another JV...

GMM Pfaudler Ltd (GMM) in Q1FY20 posted cons. revenues of Rs. 150 Cr. (up 34%Y-o-Y & 8% Q-o-Q), growth is largely attributable of surge in demand, 42% YoY, for Glass Line Equipment (GLE) coming from specialty chemical and agro chemical industry.

Finolex reported weak results wherein revenues grew by merely 2.1% (6% below our estimates) due to lower volume growth of 3% y-o-y in electrical wires hit by subdued construction activity and deceleration in OFC in communication segment. EBITDA declined 18% on higher other expenses including higher promotional expenses in its fast moving electronic goods (FMEG) segment leading to contraction of 328 bps y-o-y in EBIDTA margin to 13.1%. However, due to lower ETR (31% v/s 35% in Q1FY19) the decline in PAT was restricted to 10% y-o-y to Rs...

Uflex Ltd. reported a muted quarter where consolidated sales for the quarter grew at ~4% YoY to Rs 1978.3 Cr. Slowdown in growth was on the back of slump in the engineering division revenues and tepid growth in films volumes due to constraints in capacity. Excluding the engineering division sales, the revenue growth came at 8% QoQ. Consolidated EBITDA margins remained flattish at 13.8% in Q1FY20 vs. 13% in Q1FY19 however improved sequentially from 12.5%. Adjusting for Engineering division, consolidated EBITDA grew by 18% YoY, with margins improving 15%. PAT for Q1FY20 was at Rs. 70.1 Cr vs. Rs 71 Cr/54 Cr in...

Lower base effect aids July 2019 production/sales volume... NMDC reported production and sales volume numbers for July 2019. While prima facie, the growth numbers looked decent, it was mainly aided the by lower base effect (especially in Chhattisgarh). For July 2019, the production volume was at 2.0 MT while sales volume was at 2.4 MT....

Q1 growth due to M&A; FY20 target optimistic UPL Ltd. is a global agricultural solutions company engaged in the agrochemicals and industrial chemicals business with manufacturing sites across the world. Through recent expansion, the company has become a...

Q1FY20 revenue grew by ~27% on a YoY basis owing to better box office and F&B; collections while Average Ticket Prices (ATP) witnessed a de-growth of ~6.5% YoY . Adoption of IND AS 116 for leases has brought immediate impact on key figures and ratios which will get normalised in coming years. F&B; spend per head grew by ~8% YoY while Ad income rose by 28% (YoY). We forecast F&B; to grow at ~11% for FY20&21. SPI cinema posted a decent 8% QoQ growth compared to a weak...

Sector: Apparels /Mid-Cap | Earnings Update 1QFY20 Background: Page Industries is the exclusive licensee of Jockey International Inc (USA) to manufacture and distribute Jockey brand in India, Sri Lanka, Nepal, Bangladesh and UAE till 2040. They broadly operate in premium men's innerwear; women's innerwear and leisure wear segments. Jockey enjoys high brand recall and they spend ~5% of their annual sales for brand building and promotional activity, which enables them to dominate most of the segments in which they operate. In the men's and women's segment, they have a market share of ~21% and ~12% respectively. They are also exclusive licensee of Speedo swimwear brand in India. Page has...

Retail business revenues de-grew 10.5% YoY to | 359.6 crore (~56% of overall revenues) in Q1FY20. EBIT margins of the business segment expanded 83 bps QoQ to 8.1% in Q1FY20. As of Q1FY20, SBP has 129 stores (111 stores on lease basis), with total area of ~5.56 lakh sq ft. The average rental cost for the stores was at | 20.2/sq ft/month. The company is currently not looking at any immediate expansion/addition to its overall retail store count as its near-term focus is to increase retail business at each store level. With this, the management expects revenue growth to remain flattish in...

Despite rising contribution of VAP categories, the profitability (EBIT margin) of the core business declined ~400 bps in FY17-19. Despite such a decline, we believe WPL's EBIT margin of the plastic furniture business at 21% is the best among other organised players. The profitability of other segments (mainly cooler and mould) remained low mainly due to higher fixed cost. We believe the EBITDA margin of the company would remain in the range of 1920% (vs. ~23% clocked during FY17) as higher profitability from VAP...

a couple of years back. Milo is the largest MFD brand globally with sales exceeding USD2.5bn. Milo is the Global leader in malt-based drinks with over 36 million serves consumed daily in more than 50 countries. Milo mainly competes in the chocolate segment which has presence of players like Chocolate Horlicks, Bournvita, Boost and Complan. We believe that the launch is well timed given that Glaxo Consumer is in the process of being acquired by HUL and Complan is in integration process post...

Shree cement limited provides building materials. The company manufactures and sells cement and cement products in India. The company currently operates with a total cement capacity of 41.9mpta of which 37.9mtpa is located in India. Total power capacity for the company stood at...

We maintain our HOLD rating on the stock with a revised target price of Rs. 656 based on 34x FY21E adj. EPS. Topline numbers affected by divestment in International business GCPL's Q1FY20 revenue declined 5.1% YoY to Rs. 2,349cr owing to a 10.9% YoY fall in international revenue (45.3% of total revenue), and a lacklustre growth in the Indian market (+0.4% YoY with 5% volume growth; 56.7% of total revenue). International revenue was impacted by divestment of its Europe business in Q2FY19 (+3% YoY adjusted for divestment) and FX headwinds (+9% YoY adjusted for divestment and at...

MDF division shows improvement in EBITDA margins CPIL's MDF facility operated at ~82% capacity utilisation in Q1FY20. MDF EBITDA margins rose to 23.4% in Q1FY20 on account of a number of factors: a) 3-4% hike taken in thicker MDF during the quarter; b) operating leverage on account of higher utilisation; c) cost benefits as prices of adhesives & raw materials have come down & electricity consumption reduced to 250 units/CBM vs. 350 units/CBM earlier. Also, there have been no notable price cuts in the industry recently. With this, the management expects margins to...