Deposits for the bank grew at 24% YoY and 13% sequentially. The CASA portion for the bank stood at Rs 5,840 cr rising by 25% YoY & 7% sequentially. CASA ratio stood at 24.33% vs. 24.31% YoY. Retail term deposits stood at 50.18%. Cost of funds...

GRUH Finance (GRHF) reported strong 4QFY18 results, with continued high-teens loan growth, an improvement in margins and lower-than-expected operating expenses. However, higher tax expenses drove in-line PAT. Disbursements were up 20% YoY to INR15.1b for the quarter and up 28% YoY for the full year. Disbursement growth in the quarter was driven by home loans (+24% YoY) and developer loans (+33% YoY). Loan growth came in at 18% YoY/5% QoQ. The loan book stands at INR156b.Growth in the LAP book continues to decline (+13% YoY), while the NRP loan book continues to de-grow (-9% YoY).

Vinati Organics Ltd. (VOL) is a global leader in Isobutyl Benzene (IBB) and 2-Acrylamido-2-Methylpropane Sulfonic Acid (ATBS).

Past Underinvestment Comes Back To Bite; Renewal TCV Skew Poses Growth Risk; Capital Return To Support Stock The 4QFY18 performance of Infosys was broadly in line, with revenues being slightly weaker and margins being a tad better than expected. Importantly, Infosys gave FY19 revenue guidance of 6%-8% in constant currency or CC terms (7%-9% in USD terms) broadly in line with street expectation but a tad above our CC estimate of 5%-7%. It had delivered 5.8%/7.2% growth in CC/USD terms, respectively, in FY18. Infosys indicated that the revenue growth guidance is purely organic and does not include any acquisitions or any material revenues...

HCL Technologies (HCLT) in keeping with its stated M&A; strategy of focus on all three modes in 2018, announced two acquisitions in the first-half of April, 2018. One of them was Actian Corporation (Palo Alto-based software product company) in partnership with Sumeru Equity Partners (SEP), a technology and growth-focused private equity firm. HCLT will own ~80% stake and SEP will own ~20% stake in the joint venture which, in turn, will own 100% shareholding of Actian Corporation. The all-cash deal valued at US$330mn has come at a valuation of ~3xCY17 sales (in line with its earlier IP acquisitions at 3.0x-4.0x sales). Our preliminary study suggests the rationale behind the stated acquisition is: (1) Strengthening of HCLT's Mode-3 offerings in...

Bhansali Engineering (BEPL) reported strong results for the quarter. Revenues grew by 56.6% YoY and 17.0% QoQ at Rs 3,018m on back of higher realisations. EBITDA almost doubled YoY and grew marginally QoQ (1.1% up) to Rs 438m. Margins at 14.5% expanded ~284bps YoY as gross margins expanded by ~400bps, but contracted by ~229bps QoQ due to one off expenses such as forex loss of Rs 68.2mn and debtor's write off of Rs 85.6mn. Excluding these expenses, EBITDA margins would be 19.6% vs 14.5%. EBITDA per kg grew by 68.3% YoY to Rs 27.4, but remained flat QoQ. PAT grew by 82.9% YoY while declined marginally by 1.6% QoQ...

DCB Bank (DCBB) reported PPoP growth of 23% YoY (12% beat), as the 7%beat on total income was offset by the 4% miss on opex. NII growth of 20%YoY was led by 29% loan growth, while other income rose 33% YoY (39% YoY core fee income growth led to a 16% other income beat). 4QFY18 NII included INR26.2m from interest on tax refund. Cost-to-core income ratio stood at 60.1%, the lowest since 4QFY16.Provisions at INR388m (+14% YoY) were in line, while higher-than-expected taxes partly offset the PPoP beat, resulting in PAT (INR642m, +21% YoY)exceeding our estimate by 12%

Revenue in dollar terms reported at $2,805 Mn (+1.8%) qoq that was above our estimates of $2,783 Mn. The revenue was supported by the currency tailwind of ~100 bps coupled with improvement in business verticals, especially Insurance and Energy & Utility. The operating margin for the quarter reported at 24.7% (+40 bps) qoq owing to improvement in utilization and price realization By Geography: Europe has outperformed with 3.5% qoq growth driven by increase in IT spending from regional banks. However, the growth in the...

INFO's FY19 guidance of 6-8% revenue growth in CC is in-line with our forecast. However, EBIT margin guidance of 22%-24% is a miss. However, we believe that INFO is making the right investments needed to drive higher growth. We believe that Mr Salil Parekh's Four-pillar strategy would enable INFO to drive...

ICICI Securities Ltd | Retail Equity Research US$ revenues grew 1.8% QoQ to $2,805 million, in line with our 1.9% growth and $2,807 million estimate. Constant currency revenues grew 0.6% QoQ vs. our estimate of 1% QoQ Rupee revenues grew 1.6% QoQ to | 18,083 crore, largely in line with our | 18,065.3 crore estimate At 24.7%, EBIT margins expanded 40 bps QoQ, above our 24.3% estimate mainly due to lower-than-expected employee expenses...

According to media reports, the government may ask state oil marketing companies to absorb a hike of up to | 1 per litre on petrol and diesel retail prices. Brent crude oil prices have witnessed an upward trajectory in the past two quarters and are currently at a four-year high of US$71/bbl. This has led to the escalation of petroleum product prices, especially petrol and diesel. If there is any limit on passing on fuel price hikes to consumers, the oil marketing companies (OMCs) would have to bear a notable burden on their profitability. However, some reports also indicate that OMCs have not...

According to media reports, the government may ask state oil marketing companies to absorb a hike of up to | 1 per litre on petrol and diesel retail prices. Brent crude oil prices have witnessed an upward trajectory in the past two quarters and are currently at a four-year high of US$71/bbl. This has led to the escalation of petroleum product prices, especially petrol and diesel. If there is any limit on passing on fuel price hikes to consumers, the oil marketing companies (OMCs) would have to bear a notable burden on their profitability. However, some reports also indicate that OMCs have not...

Grasim Industries (GRASIM) is likely to gain scale in the VSF (increasing capacity by ~58% over FY18-21) and Chemicals (increasing capacity by ~37% over FY17-19) segments by way of capacity addition. VSF demand in India is likely to grow at ~8% over FY17-22 -around 200bp higher than the global growth rate - due to initiatives undertaken by GRASIM (e.g. ingredient branding in the form of 'LIVA'). VSF commands a stable margin owing to the rising proportion (38%) of high-margin specialty fiber in its portfolio and the increasing share of domestic sales (at 77%).

little, too late: The ICICI Bank board has issued a statement, coming out in support of the management, effectively denying any wrongdoing in the transaction. While the board making the statement, instead of the management, adds credence, we believe that there are too many unresolved issues/ questions...

Motherson Sumi (MSL) subsidiary SMR PBV has executed the transaction documents for the proposed acquisition of Reydel Automotive (RA), which is a global supplier of instrument panels, door panels, console modules, decorative parts and cockpit modules, with a presence across Europe (account for 66% of revenue), Asia (28% of revenue) and South America (balance 5% revenue) Aggregate purchase price is $201 million for a 100% stake in RA while the transaction will take four to six months to close. Further, the...

Container Corporation released provisional volume/revenue estimates for FY18 (subject to audit and finalisation). It indicated total volume grew 13% YoY to 3.5mn TEUs while total revenue grew 9% to INR 64.4bn in FY18. We estimate a) volumes grew 15% YoY 4QFY18 (2% below JMFe), and b) continued recognition of SEIS income in 4QFY18 (as it recognised in 3QFY18 for 9MFY18). Given the lumpy nature of SEIS income recognition (4QFY17 for FY17; 3QFY18 for 9MFY18), we believe revenue/realisation figures may not be exactly comparable. Based on our analysis of port/rail volume, we believe the growth momentum for...

Our analysis of product-wise subsidy shows that subsidy on DAP has increased the most - by Rs1,465/MT (+16% yoy). On the other hand, subsidy for MOP has fallen by Rs763/MT (-10% yoy). Subsidy for all other grades of P&K; fertilisers has increased by ~5-10% yoy. Taking into account the new subsidy rates and the ~10% price hike, which the industry has taken in DAP and other NPK grades of fertilisers from Feb'18 onwards, gross margin in DAP and most other complex fertilisers remains broadly unchanged. We remain positive on companies that are backward integrated in phosphoric acid and have higher revenue share from NPK fertilisers, as they enjoy brand equity and less...

Mayur witnessed recovery in its business catapulted by growth in domestic sales volume of 32.8% while export sales registered volume growth of 9.7% in Q3FY18. Revenues jumped to Rs 137.99 crs ($21.3m) in Q3FY18 from Rs 108.81 crs ($16.1m) in the previous year (severely marred by...

View: We maintain Tata Consultancy Services (TCS) as our preferred pick among the Tier-I IT Services companies. Given the recent run-up in Technology stocks, we believe that the valuations are now stretched for certain companies as we do not see a meaningful fundamental recovery in growth prospects for FY19. We continue to remain selective in our approach and maintain TCS as our preferred pick among Tier-I IT Services plays. In our opinion, the recent rally offers a good opportunity to exit some of the names such as Infosys, as its discount to TCS would widen further from the current level of 10% to the ideal range of...

ICICI Securities Ltd | Retail Equity Research Talwalkars had made an announcement of a de-merger on November 24, 2016. The ratio was one share of Talwalkar Lifestyles (TL) for every share of Talwalkar Better Value Fitness (TBVF). The stock has turned ex-date today while the record date for the same is March 28, 2018. Consequently, Talwalkar's share price, as per yesterday's closing price, has dropped to | 198/share from | 242/share. Hence, now our target price also stands revised to | 215/share for Talwalkar Better Value Fitness....