Bhushan power and steel (BPSL) become subsidiary (83% stake) in October with conversion of OFCDs. It posted EBITDA/t of Rs23,000 in the quarter. Steel (JSTL) reported Q2FY22 EBITDA in-line with our and consensus estimates. Domestic steel margins impacted due to lower realisations and...

Price hikes likely given RM volatility; margins seem to have bottomed out We increase our FY22-FY24 earnings estimate by 2-4% given resilient demand momentum despite an inflationary environment given 1) robust festive season build-up 2) strong housing segment demand 3) healthy traction in...

Demand is expected to pick up in coming months. Company displayed resilient performance despite the coal shortage and oil price increases. However, margins are expected to remain under pressure in the shortterm owing to rising fuel costs. Taking a cautious view, we downgrade rating to HOLD with a TP of Rs. 7,780 based on 14x FY23E EV/EBITDA. Higher fuel costs and coal shortage impact margins Q2FY22 revenue rose 15.7% YoY to Rs. 12,017cr, supported by growth in cement sales volume of 7.9% YoY to 21.6mt and improved realisations (+7.2% YoY to Rs. 5,553/t). Despite the monsoon season, company witnessed robust demand with grey cement...

New initiatives like opening of 20 smaller size stores over the next six quarters, growth in its private label mix, and increased focus on high growth beauty business offers a good growth opportunity. However, its slow growth track record in similar areas in the past and weak footfalls in the Lifestyle Apparel category makes us hawkish. We have raised our FY23E...

Adjusted EBITDA, after an INR500m one-off gain in 2QFY22, rose 8% QoQ (2% above our estimate) on healthy cost optimization, despite slower revenue growth of 1.7% QoQ, which is slowly recovering. We expect low revenue growth visibility given the low growth outlook in Connectivity (71% of revenue mix). This, coupled with weak EBITDA margin guidance of 23-25% v/s 26.7% at present, suggests double-digit growth could be challenging. However, we expect an improvement in margin from the curtailing of loses in the Incubation business, building in...

Havells India (HAVL)'s 2QFY22 earnings were 8% below our expectations despite the topline beat of 5%. Key operating parameters confirm our thesis of margin normalization from highs of FY21 even amid a strong demand environment. We expect the trend to continue over the next 23 quarters leading to strong topline growth, but muted EBITDA/earnings growth. Key positives include a) volume growth (ex-Cables) in the double digits, which is likely to sustain over the next few quarters; b) an uptick in the B2B business, with volume growth reflecting in Cables hereafter; and c)...

While the sales growth trend was healthy and the outlook remains positive, the lowest EBITDA margins in 50 quarters led to a ~38% miss on our forecasts at the EBITDA and PAT levels. The management stated that material cost inflation was the highest in four decades, and it expects this trend to persist over the near term. Further price hikes (in addition to a 4% increase in 2QFY22 and 3.5% increase in 1QFY22), cost savings, and raw material substitution could mitigate the sequential impact going forward....

The stock is currently trading at 9.5x FY22E and 7.7x FY23E EV/EBITDA. We value the company at 8x FY23 EV/EBITDA to arrive at TP of Rs 260 share, implying an upside of 5% from the current level. We maintain our HOLD rating on the stock.

fluorochemicals complexes in India with a presence in speciality chemicals, CRAMS, inorganic fluoride and refrigerant segments. Q2FY22 Results: Numbers were almost in line with our estimates. The poor growth from CRAMS was negated by growth from speciality chemical and inorganic fluoride. Gross margins remained almost flat at 55% while EBITDA margin contracted 360 bps YoY to 24.8%, due to higher operating cost such as employee (up...