Dr. Reddy's Labs (DRRD) today received final approval from the USFDA to launch Buprenorphine and Naloxone Sublingual Film, a generic version of Suboxone, in the the US market. Although the product is covered by seven patents until 2023, DRRD has got favorable ruling from the district court for four main patents. Indivior has challenged this ruling in the higher court and the decision is still pending. DRRD is doing an at risk' launch of gSuboxone based on the comfort it has on the patent litigation. The drug is indicated for the treatment of opioid addiction. Competitive dynamics of gSuboxone: Apart from DRRD, Mylan has received...

Transmission spend driven by SEBs and TBCB projects Maintains FY19 margin guidance of 10% We met KEC International's (KECI) management. Key takeaways:...

The buyback should result in 2% accretion to EPS from a reduction in the share count. However, the cash reduction would result in a decline in other income, which is dominated by a yield of 8% on a pre-tax basis on the cash. Other income foregone would be to the tune of INR12-13b, which would result in an adverse EPS impact of ~2.5%, implying net EPS decline of ~50bp. However, given the reduction in networth, the RoE is likely to improve by 2pp....

Unseasonal rainfall hurt 1QFY19 room AC sales Inverter ACs account for 30% of room AC sales We met VOLT's management. Our key takeaways:...

13 June 2018 TCS has announced that its board will meet on 15 June 2018 to consider a proposal for buyback of shares. In February 2017, TCS had announced a buyback offer of INR160b at a price of INR2,850 per share (adjusted price of INR1,425), which was at a 16% premium to CMP. Also, this was The promoters had also tendered their shares the last time, but that was 2.5% of their holding (and not the prescribed maximum of 2.85%). As a result, their holding had increased to 73.57% from 73.31%. As a consequence, tendering accepted from non-promoter holders was 3.8%. However, the acceptance ratio for small retail investors was 100% due to the SEBIs mandate that companies reserve 15% of buyback for small shareholders with holdings worth less than INR200,000. This implies a lesser acceptance ratio for institutional holding closer to the 2.85% of equity bought back.

Essel Propack (Essel) in 4QFY18 posted revenues of Rs 628 Cr. due to continued GST related impact on Indian operations; however Europe showed signs of recovery led by Germany.

Source: Bloomberg, Centrum Research, *as on 8th June 2018 Recommendation and key risks: We have revised our FY19E and FY20E EPS downwards by 41% and 43% respectively. We downgrade MPL to Hold from Buy rating, with a TP of Rs31 based on 18x March'20E EPS of Rs1.7, and a 10.2%% upside from CMP. Key positive upsides would be additional ANDA approvals from US FDA...

Halol received VAI: The US regulator has upgraded current status of SUNP's Halol plant to VAI (Voluntary Action Indicated). The upgradation status of the plant means that the response and remediation works of SUNP are at...

CG Power reported an exceptional loss at parent level in Q4FY18 led by continued loss of Rs1.1bn at Hungary unit (sale spilled over to H1FY19 owing to General Elections), Rs1.6bn of inventory write-off in Power System Transformers segment in Latin America and inventory write down in domestic Power System book value and write-off of Rs1.5bn in Engineering Projects business. As per the Management, Hungary divestment is on track despite delay by a quarter due to General Elections. The Company expects the deal to sail through by Jun'18 and a quarterly loss...

Our recent meeting with the management of Thermax (TMX) reiterates our thoughts on the positive long term prospects. TMX aspires to achieve revenues worthRs160bnandanOrdermixof50:50betweenDomesticandInternationalby FY2028. TMX highlighted their plans to enter new area/product to mitigate...

ICICI Securities Ltd | Retail Equity Research We attended the Annual Investor Meet of Hindustan Unilever (HUL) on June 6, 2018 where the company reiterated its positive outlook on the long term consumption story of India driven by urbanisation and premiumisation. The key thrusts for the company remain on a) strengthening the core portfolio, b) creating categories for future, c) premiumisation, d) market development both in terms of low penetrated products as well as creating need for future categories and e)...

We attended the Annual Investor Day of HUL and came back positive on the sustainabilityofgrowthledbyReImaginingHUL.HULiscreatingbuildingblocks for the future which include 1) Premiumisation and upgradation 2) Organisation culture and structure with young leaders 3) strengthening the core portfolio 4) market development for emerging segments 5) sustained expansion of naturals portfolio6)efficienciesinsupplychainanddistributionand7)drivingcostsavings tofuelgrowth.HULisextensivelyusingdigitalinmappingconsumers,innovations,...

6 June 2018 Over the last year, TPWR has accelerated the pace of sale of non-core assets. The reported consolidated net debt to equity will decline from 2.7x in FY17 to 2.3x post divestments. TPWR is also evaluating the performance of its overseas power assets for possible consolidation/monetization. CGPL continues engaging beneficiaries for a sustainable resolution of partial under- recovery of fuel cost. CGPL is optimizing fuel cost by blending of low GCV coal, which is available at a steeper discount. CGPL is also in discussion with DISCOMs to sell power beyond minimum commitment of 80% at merchant tariff. The regulated PPA for the Trombay power plant with BEST is valid until March 2019 (after the recent extension by one year). BEST is seeking competitive bids, but, based on the initial results (two rounds have been completed), the competitive price may be higher than regulated supply by Trombay.

SIL's auditors have raised attention on unbilled revenues relating to worth | 860.4 crore pertaining to earlier years. In respect of this, SIL is in regular discussion with concerned customers for completion of necessary certification and recovery. The availability of appropriate audit evidence on these balances has been limited due to geographical spread of operations of SIL and project-specific data being maintained at respective project site. Hence, auditor could not verify these unbilled revenues. However, the management believes this would be resolved over the next...

Maintain NEUTRAL with a TP of Rs 539 at 2x Mar-20E ABV. Axis Banks FY18 annual report vindicates our cautious stance on the bank, even as the street has begun to get constructive around the resolution of corporate stress in India. We are skeptical on the large pool of assets below investment grade (Rs 90bn).

Simplex Infrastructure's (SINF) sales increased marginally by 6.3% yoy to Rs16.4bn, below our estimate owing to slower execution in some key projects. SINF's PAT came in at Rs293.6mn, down 56% yoy due to lower execution, higher interest cost (up 11% yoy) and enhanced tax outflow (26.6% tax rate in Q4FY18 v/s 35.8% in Q4FY17). SINF has secured orders worth Rs76.6bn in FY18, thus taking the total order book to...

Dynamatic Technologies' (DYTC) Q4FY18 operational performance was marginally below expectation. Revenue increased by 3.4% yoy to Rs3.9bn; EBITDAM improved by 130bps to 11.6% and APAT increased by 234% yoy to Rs89mn. While revenue in Hydraulics/Aerospace segments increased by 24%/12%, it declined by 6.5% yoy in the Automotive segment, owing to by-product rationalisation in its German foundry. Profitability was relatively weak on account of lower margins in the Hydraulic and Aerospace...

5 June 2018 Neulasta biosimilar version) was based on a comprehensive package of analytical, non-clinical and clinical data, which confirmed that the product is highly similar to Neulasta. Because of non-interchangability clause, BIOS/MYL would have to invest marketing efforts to garner business from this product. Other than BIOS/MYL, leading companies vying for approval in regulated markets are Apotex, Sandoz, Coherus, Pfizer and Dr Reddys. However, Apotex has not yet received approval for its BLA (biologic license application) version from USFDA. Coherus would be submitting the day-180 responses by the end of May and expects further opinion from advisory group CHMP (Committee for Medicinal Products for Human Use) on day-210, which is around end of June 2018. EU regulators are reviewing marketing authorization applications filed by BIOS/MYL, Sandoz and Cinfa Biotech. Specifically, BIOS/MYLs MAA was accepted in November 2017, Cinfa Biotechs in October 2017, and Sandoz filed in October 2017.

NHPC achieved CoD of 330MW Kishanganga project in April'18, but Parbati II (4x200MW) capacity is now expected to be commercialized only by FY21E-22E. Final report on Subansiri by MoEF has been kept reserved as the NGT is yet to decide whether the project is to be appraised through the current committee or form a new committee. We have cut our earnings estimates by 8.6%/14.9% for FY19E/20E to factor in delay in the commercialization of Parbati II project. Accordingly, we cut our SOTP-based Target Price (TP) to Rs31 v/s Rs34.6 earlier. We...

Net sales for FY18, grew by 0.7% to `1673crs. Plywood segment reported sales de-growth of 1.7% at `1147.94 crs. This was on the back of lower realisations (3.1%) (i.e. adverse mix); while volumes recorded a growth of 1.6%. MDF segment recorded sales de-growth of 1.1% at `471.7 crs. with volumes under pressure this year as competition took steep prices cuts and Greenply stood the on prices. Gross margin reduced by 30 bps to 46.5%. EBIDTA margin for FY18 stood at 14.7%.for...