NBIE Values your patronage- Vote for The Team in the Asia Money poll 2020. Click Here We maintain Buy on Indian Oil Corp (IOC) based on our trimmed TP of Rs146. Our buy call is based on: (i) improved outlook for retail margins under sub US$4050/bbbl (ii) refining and petchem margins are at trough levels and could revive over the next 1-2 years based on likely closure of capacities and iii) compelling valuations post the sharp 34% fall in the stock price in the last one year that has priced in worries over policy/volatility in margins and likely risk of increasing competition from private retailers/alternative fuels. IOC's 1QFY21 adjusted PAT at...

Temporary blip in growth, 4Q margin an aberration NBIE Values your patronage- Vote for The Team in the Asia Money poll 2020. Click Here Solar Industries India (SIIL) reported consolidated revenue of Rs5.5bn in 4QFY20, down 19% YoY, as sales worth Rs1bn were deferred due to lockdown. The topline was 7% above our estimate but 15% below consensus. In the domestic market, growth was impacted by heavy monsoons extending in Jan 2020 and lockdown restrictions, affecting mining and construction activities. Thus, Housing & Infrastructure segment sales fell 30% YoY to Rs1.6bn while sales to...

Poised for a quantum leap; Valuations fully priced Dixon Technologies (Dixon) reported 1QFY21 sales of Rs5.2bn, down 55% YoY due to COVID-19 disruptions. The topline was 4%/9% below our/consensus estimates. Consolidated gross margin was up 60bps YoY at 12%. EBITDA fell 68% YoY to Rs169mn with an operating margin of 3.3%, down 130bps YoY due to lower production and under-absorption of costs. The margin was above our/consensus estimates of 1.3%/2.9%. PAT fell 93% YoY to Rs16mn (partially aided by lower tax rate at 26% versus 34% YoY). The bottom-line was above our/consensus of loss of Rs84mn/Rs34mn, respectively. Achieving scale, migration to ODM, new customer acquisition...

4 August 2020 volumes increased 7% YoY to 2.57mt on improving demand from steel plants as domestic demand improves. This, coupled with higher international iron ore prices, has enabled NMDC to raise prices this month by INR200/t (~9%) to INR2,360/2,650 per ton for fines/lumps. We believe NMDCs iron ore prices should sustain in 2HFY21 due to rising steel prices (up ~INR2,000/t MoM), higher pellet prices (up 20% MoM to INR7,200/t), and reduced iron ore supply from Odisha mines. Volume growth of 7% YoY reported by NMDC (to 2.57mt) in July20 has surprised and is three months ahead of our expectation of positive volume print in 2HFY21. While iron ore production from several auctioned mines in Odisha has commenced in the current quarter, we believe production from these mines would be lower by >30% YoY in FY21, supporting NMDCs volumes in the near term.

4 August 2020 EBITDA/scm was better than est. INR4.1) and higher QoQ as well (INR4.7 in 4QFY20). Reported EBITDA was at INR1.85b (-60% YoY; -56% QoQ), with PBT at INR0.8b. PAT came in at INR0.6b (-75% YoY and QoQ). CNG volumes stood at 0.7mmscmd (-54% YoY and QoQ). PNG I/C stood at 2.9mmscmd (-60% YoY; -63% QoQ).

Flat glass demand likely to improve by end of this fiscal Due to lockdown, there was a slowdown in construction activity primarily due to labour/demand related issues. Further, there was a slowdown in auto activity also, impacting demand for flat glass and, thereby, soda ash consumption. Flat glass is estimated to comprise ~50% of soda ash demand. The management believes flat glass demand would improve by end of this fiscal and can support better demand growth from next year. Further, majority of the new capacity from China, North America has been...

We have mildly tweaked our estimates and retain ADD with an unchanged TP of Rs 715. A strong spurt in cash volumes (88.2% YoY) bolstered capital markets APAT 63.5% YoY (-5.9% vs. estimates), while a steep decline of 16.2% YoY in QAAUMs meant that AMC's APAT declined 33.3% YoY (-8.8% vs. estimates). Management enhanced provisions to 27.8% (+556bps QoQ) of GNPLs due to the potential COVID-19 impact, which resulted in MOHL reporting a 35.1% YoY lower APAT. Significant MTM gain (Rs 1.3bn, +272.3% YoY) on treasury resulted in MOFS (ex. MOHFL) APAT growth of 98.1%.

This was primarily led by North America (NA), wherein EBITDA declined 81% YoY on lower volume offtake. The Soda Ash segments performance was impacted by a reduction in demand from the end user industry (largely for flat and container glass). Factoring the miss in our estimates and a weak end user industry demand scenario, we cut our EBITDA estimates by 14%/6% for FY21/FY22 and arrive at an SOTP-based TP of INR368. Maintain was primarily on account of the absence of operating leverage and higher RM cost, offset by lower freight and power costs. EBITDA de-grew 30% YoY INR1,824m); decline in adj. This was on account of a 28%/22% drop in soda ash/bicarb volumes and lower realization, offset by 26% volume growth in salt. revenue declined 27% YoY due to a 28% drop in volumes (exports / domestic volumes declined 45% / 13% YoY).

Further, FY21 should see continued benefit of mix (lower OEMs) and lead prices. We have downgraded our EPS by 4.5%/1.4% for FY21/FY22E to factor in weaker 1QFY21 revenues/EBITDA/PAT declined 44%/64%/80% YoY to INR15.5b/ Revenue declined due to the lockdown impact on auto/non-auto segments and the OEM/replacement businesses. The company is focussing on cost control measures and technology upgrades to We have downgraded our EPS by 4.5%/1.4% for FY21/22E to factor in the lower revenues, better mix and lower lead prices. structure remains largely duopoly, EXID is the largest lead acid battery manufacturer in India with leadership in Auto OEMs and the replacement segment. However, EXID has largely caught up with competitors by investing in technology and by being more proactive in customer service and plugging gaps EXID should improve its market share as economic recovery led demand would come in from AUTO OEMs and the Industrial segment.

Cross-subsidization by NSE has limited monetization opportunities for BSE in the Star MF, INX, and Commodity Derivatives segments in the near term. This was primarily due to a decrease in turnover by 26% YoY in the Equity Cash segment (special rate group) in 1QFY21 and one- While total expenditure of INR1.0b was lower than estimated, overall decline in revenues resulted in largely in-line EBITDA (v/s estimates). NSEs competitive pricing has impacted BSEs ability to charge in the Star MF, INX, and Commodity Derivatives segments. NSEs competitive pricing has impacted BSEs ability to charge in the Star MF, INX, and Commodity Derivatives segments. This was primarily due to a decrease in turnover by 26% YoY in the Equity Cash segment (special rate group) in 1QFY21 and one-off income in While total expenditure of INR1.0b was lower than estimated, overall decline in revenues resulted in largely in-line EBITDA (v/s estimates).

We initiate coverage on Endurance Technologies with a BUY recommendation and price target of Rs 1190/- as Endurance is transforming itself into an auto ancillary with value added, technology based products viz., ABS, CVT, paper based clutches, fully machined castings etc.

Cholamandalam Invst. & Finance Company Ltd (CIFC) Q1FY21 earnings performance was better than expectations as provisioning was much lower than estimates accompanied by improvement in cost to income. However, since the morat book tag still remains elevated at ~76%

UPL 1QFY21 result was below NBIE/street estimates with consolidated adjusted PAT coming in at Rs5.76bn vs our /Bloomberg estimate of Rs6.41bn/Rs5.25bn. The revenue miss was due to the decline in LatAm and US, offseting the in-line performance in Europe and a massive 26.9% surge in India sales that revived after several quarters. But margins were a beat with gross margin coming in at 54.7% vs our estimate of 45% and EBITDA margin coming in at 23.4% vs our estimate of 20.2%. In the long term, Management expects to improve EBITDA margin to 23-25% on the back of cost savings, new products/markets and monetization of the robust U$3bn R&D; pipeline. We have trimmed earnings by 3.3%/7.5% for FY21E/FY22E based on the muted...

Background: Persistent Systems Limited offers complete product life cycle services. The Company's segments include Infrastructure and Systems, Telecom and Wireless, Life science and Healthcare, and Financial Services. The Company's products include Connected Healthcare, which is an integrated healthcare ecosystem; ShareInsights Platform, which allows organizations to analyze an overlay of enterprise data with public or cloud sources to derive insights; Digital Banking, and Accelerite, which provides cloud solutions, endpoint management and mobility. The Company provides product engineering services, platform-based solutions and...

Outlook & Valuation: We downgrade our revenues by 4%/2% to Rs 348 Bn/Rs 385Bn for FY21E/FY22E on account of downgrade in Domestic formulations, US/Taro and other businesses.

Despite challenging times, the company gained market share in general staffing business (added 78 accounts) in Q1FY21, helping TLS to register 14.5% fall in volumes vs. expected 18-20% dip. Going forward, we expect an economic recovery and market share gains to boost the topline. This coupled with traction in NETAP due to some improvement in manufacturing & auto will further give impetus to general staffing revenues. Also, we expect a revival in demand from BFSI, logistic, healthcare and FMCG to lead to healthy growth in general staffing. Hence, we assume 10.5% CAGR in FY2022E in general staffing. In specialised staffing, we expect revenues to...

Colgate Palmolive reported revenue decline of 4.1% YoY (down 2.9% QoQ) to INR 10,406 mn as toothpaste/toothbrush volumes were affected due to COVID-19 led lockdown and disruptions. EBITDA margin expanded to 29.6% in Q1FY21 (27.6% in Q1FY20). EBITDA increased 2.7% YoY/ +17.2% QoQ. Net Profit grew 17.2% YoY (down 2.9% QoQ) to INR 1,982 mn due to lower taxation rate....

Manappuram Finance (MGFL) is one of the leading gold loan NBFCs in India and is well diversified into other business segments like housing loan, vehicle loan and microfinance, with a branch network size of...

Sequent Scientific or SSLs 1QFY21 revenue at Rs3,103mn was higher than our estimate by 1.6%. Revenue grew by 11.6% YoY and was led by growth in both API and formulation sales across geographies, except the Emerging Markets (EM). There was a conscious decision to slow down in EMs considering the risk of bad debts. However, the situation is now normalizing and we should see sales in EMs back on track. Incrementally, the company has also entered into a distribution agreement with global animal health giant Zoetis for distribution of their products in India. The agreement gives SSL right to a portfolio of 13 brands (19 SKUs) amounting to Rs400mn in annual sales....