CMIL is one of the leading manufacturers of wires and cables seeing the promising outlook of the wires and cables industry which is expected to grow at CAGR of 15% by FY22. Due to growing demand from the power infrastructure and communication sector, we expect new avenue for growth will open in future for the company . Railways and power sector are the major revenue contributors for CMIL. The gradual efforts of Indian railway to modernize the signaling system and huge investment of government in power sector to expand the generation capacity as well as to promote the transmission and distribution segment will help to boost the demand for railway...

Mold-Tek Packaging (MTPL) in 1QFY18 posted consolidated revenues of Rs. 90 Cr. (up 8% Y-o-Y, up 9% Q-o-Q)due to increased contribution from Food and FMCG segment and huge growth in RAK plant sales however GST impacted paints and lubes volumes due to destocking.

Maintain NEU with a revised TP of Rs 306 (20x SEL's consol Jun-19E EPS) Suprajit Engineerings (SEL) consolidated 1QFY18 result came in below estimates, with PAT at Rs 226mn (+7% YoY), led by lower operating efficiencies. Revenue witnessed a jump of 27% YoY to Rs 3.2bn, while EBIDTA margin contracted sharply to 14.3% (-290bps YoY, -360bps QoQ).

Slowing capacity addition to drive utilization improvement Takeaways from CEO track; limestone resources a constraint We hosted Mr H M Bangur, MD and CEO of Shree Cement (SRCM), as part of CEO Track' at...

Improved Profitability & Healthy Traction In Food & FMCG Segment Mold-Tek Packaging's (MPL) net sales in 1QFY18 grew 6% to Rs884mn (our estimate Rs995mn) despite decline in volume by 6% on account of Goods and Services Tax or GST implementation. Volume for the quarter stood at 4,900mt. Gross profit was at Rs367mn (our estimate Rs403mn). Gross margin expanded by 250bps to 41.5% (our estimate 40.5%). The improved margin was on account of better contribution from Food and FMCG or F&F; segment. Sales from F&F; segment increased to 15% of total sales versus 4.4% in the same quarter a year ago. EBITDA grew 11% to Rs163mn (our...

Volume growth accelerating; re-stocking to boost dispatches in 2HFY18 Coal demand growth has started accelerating. Coal India's (COAL) dispatches grew 6.6% YoY to 225mt in 5MFY18 (v/s mere 1.6% growth in FY17), despite destocking of ~16mt YoY to 12mt by power plants. We believe power plants will need to restock by at least 14mt to 26mt by March 2018 for uninterrupted supply in 1HFY19, unlike destocking by 2mt between August 2016 and March 2017 to 26mt. With a steady increase in electricity generation and re-stocking, we believe COAL is...

Minda Ind reported Total revenues of Rs 1,032 cr in the quarter ending June 2017. The company reported EBIDTA of Rs 110 cr with robust EBIDTA margin of 10.7% (expansion of 123 bps (YoY)).

D'Mart AGM reassured us on the management focus on brick and mortar retailing,calibratedapproachinstoreexpansionandstickingtoitscorestrategy. Although D'Mart is experimenting with online model (D'Mart Ready) and FMCG privatelabels,itisunlikelytosignificantlyincreaseresourceallocation.Webelieve intent to acquire more land bank in downturn for store expansion (Rs2.05bn in FY16 and Rs2.6bn in FY17) can impact return ratios in the near term. Although D'Martisindicating2025%storesinemergingclusters,alongtailwith14storesin 7newstatesin4yearscancurtailmarginexpansion(est40bpsoverFY1720)given...

Castrol India Ltd (CIL) reported disappointing numbers for Q2CY17 with a net revenue and PAT de-growth of 10.3% & 33.3% YoY respectively. A sharp fall in the gross margins (-629 bps) and EBITDA margins (-861bps) was disappointing. Steep volume decline in CV segment, muted realisations and higher base oil prices impacted the overall growth.

Mayur Uniquoters Ltd. (MUL) reported better than expected Q1FY18 result. Net sales increased by 8.9% YoY while EBITDA/PAT was higher by 4.9%/4.2% YoY. The management has guided double digit sales growth with stable margins in FY18. Further, the company's PVC and PU capacity expansion plans are on track and the plants will be operational in H2FY19E.

Higher capex by the company would indeed support its production off take. Indian Steel Ministry intends to raise India's steel production to 300 mtpa by FY25 on the back of long term growth prospects of the economy which in turn would benefit the iron ore industry. The long term outlook of Indian steel industry looks promising as the sector enjoys competitive advantages due to the impetus being given by the government to infrastructure growth, urbanization and rising incomes. Low per capita steel...

Mixed Quarter: Gateway Distriparks Ltd (GDL) has posted mixed set of standalone numbers wherein revenue from operations for Q1FY18 came at Rs.809 Mn as against Rs.803 Mn of Q1FY17 and Rs.744 Mn of Q4FY17 thereby exhibiting moderate growth of 0.8% and 8.8% on YoY and QoQ basis respectively.

This is in line with LT's strategy to limit further investments in subsidiaries/JVs and make them self-funding. Some major changes were seen at the subsidiary level in FY17 i) Hyderabad Metro was taken over by LT from IDPL for a consideration of INR21b. ii) LT took INR9.5b write-down in its investment in IDPL, iii) Hydrocarbon had INR2.6b of preference shares being...

In a recent notice (link), the Central Drugs Standard Control Organization (CDSCO) has directed various state drug controllers to ensure that the necessary BA (Bioavailability) and BE (Bioequivalence) studies are made available for any future non-patented drugs, which are to be approved for sale in the Indian market. The norms are not new, but what has been missing is the will to enforce the same, especially at the local/state FDA levels. What the CDSCO release intends is to ensure enforcement of the existing rules. The New Pharma Policy (see our note titled Draft Pharma Policy: Devil in the details dated Aug 17, 2017) highlights one of the key goals as harmonization of drug quality in...

Gateway Distriparks' (GDPL's) Q1 was marred by subdued Rail business performance due to (a) operational issues with Railways' line at Ajmer (one of the key routes for GDPL) this led to lower volumes as well as higher operating cost and

Q1 EBITDA margin at 3% was at multi-year low due to negative operating leverage led by 17% YoY decline in domestic formulations (on GST transition) and 14% YoY decline in export formulations (USFDA issues & UK currency impact).

Service delivery is moving towards as-a-service model less than 5% of the work includes traditional custom apps development; Worries on core processes being outsourced: is leading to insourcing and localization of tasks by clients

Infosys (INFO) announced the appointment of Mr. Nandan Nilekani as non-executive non-independent Chairman of the Board. It also accepted the resignation of Mr. R. Seshasayee, Professor Jeffrey Lehman and Professor John Etchemendy with immediate effect. Dr. Sikka too stepped down as Executive Vice Chairman and as a Director. With Nandan Nilekani as Chairman, Ravi Venkatesan stepped down as the Co-...

grade text books in Maharashtra by the education board. Growth going forward is expected to be stronger, with likely spillover of revenue of its supplementary books in 2QFY18. The business is expected to continue benefiting from syllabus change in Maharashtra and Gujarat in FY19 as well. We expect the segment to grow 15% in FY18. Moreover, the acquisition of Indiannica Learning Private Limited is not only expected to boost CBSE revenues by strengthening...

Castrol reported disappointing Q2CY17 results with net sales and EBTIDA margin below our and street expectations. Net sales was 12.5% below our estimate at Rs8,704 mn (-10.3% YoY, -1.3% QoQ). EBITDA margin slipped to 24.1% (-861bps YoY, -578bps QoQ) mainly due to higher base oil prices and lower sales. Net profit was also 36.6% below estimate at Rs1,379 mn (-33.3% YoY, -23.0% QoQ). Although we lower our estimates for CY17 on weak Q2CY17 results, we maintain...