EIIL balance sheet likely to get de-leveraged post monetization of Chennai land for Rs 1 Bn. Management sounded confident about 1/ monetizing other non-strategic assets in the near term as and 2/ strengthening balance sheet...

DFC continues to be the most important long-term trigger as apart from boosting volumes, it will aid margins. Distribution logistics will help reduce rail dependence and counter falling lead distances. Management is...

Funding of Heinz India acquisition will be done through a mix of equity and debt in the ratio 1.7:1: Zydus Wellness (Zydus) is planning to raise Rs. 4,075 crore through a mix of preferential allotment of equity shares and issue of non-convertible debentures for funding the acquisition of the entire shareholding of Heinz India Pvt. Ltd. valued at ~Rs. 4,600 crore. The...

of USD625mn in the first year of acquisition and USD650mn revenues in the second year for acquisition. This implies HCL Tech is valuing the acquired business at P/S of 2.8x. The acquired products have an EBIDTA margin of ~50% and the deal is likely to be cash EPS accretive by ~15%. HCL Tech expects to close the acquisition by mid CY2019 (2QFY20E) and 48% of the purchase consideration is expected to paid on closing date of the acquisition (~2QFY20E). A majority of the remaining payout is expected to be done post...

Strong volume trend in both the key segments of Multimodal Transport Operations (MTO) and Container Freight station (CFS) with stable realisations and loss in the project engineering has been the highlights of financial performance for ALL in H1FY19. Healthy performance in H1FY19 has given us confidence of a decent performance in FY19. Also, we believe that most of negatives have got factored in the current price. Maintain estimates with an unchanged target prices of Rs 145 at 15x FY20 earnings....

Dewan Housing Finance (DHFL) posted steady operating performance yet again in 2QFY18, however, liquidity issues began at the end of the quarter. DHFLs business grew in the quarter with a 35% yoy rise in loan book to `1,10,100cr. Further, in-line with the loan book, AUMs also increased by 38% yoy in the quarter. At the bottom-line, the co..

We project revenue/PAT to grow at 20%/19% CAGR over FY18-20E owing to continued traction in commercialisation of molecules, scale-up of exports, healthy R&D; pipeline, additional capacity with the commissioning of new plants and robust order book position Hence, we continue to maintain our positive stance on the stock and recommend...

Viability of NMDC's mining operations is threatened by Karnataka's pre-condition to share of 80% revenue for renewing mining leases of Donimalai, which has capacity of 4mtpa. The outcome of legal and diplomatic settlement may set a precedent for other mines. This was unexpected because public sector enterprises (PSEs) have been getting their leases renewed without sharing of any revenue - e.g. leases of Nalco's bauxite mines have been recently extended to 2029 and 2032without any share in revenue; many PSEs have been allotted coal blocks on a nomination basis

Coromandel International (CRIN) incurs a major raw material (RM) cost in the form of phosphoric acid (38-40% of RM cost, based on our assumption). Consequently, the 30% YoY spike in the price of phosphoric acid in FY19YTD is likely to have exerted pressure on its margins in 1HFY19. Tackling near-term margin headwinds, too, appears to be a tough job. In this report, we, thus, attempt to analyze supply, demand and raw material (rock phosphate and sulphuric acid) cost trends, which primarily dictate the phosphoric acid prices.

Arvind has demerged its branded apparel & retail business and engineering business into separate companies Arvind Fashions Ltd (AFL) and Anup Engineering Ltd (AEL), respectively. This would create three separately listed companies focusing on different businesses which will increase focus on individual businesses. The company management is positive on the long term fundamental of all the entities. As per company PPT, AFL and AEL are expected to be listed on exchanges tentatively in early February 2019. Post demerger, Arvind will be present in two main businesses; textiles ~87%...

Refer to important disclosures at the end of this report Challenges to turn into opportunities profitability in FY16-18. The key factors affected the performance were: 1) being on the wrong-side of the actions at the client's end; and 2) a mix change toward onsite, with low gross margins (onsite now accounts for 22% of revenues versus 1% in FY15). Despite the modest performance in the recent past, we are certain about a gradual recovery in growth on account of: 1) stable deal momentum (adding about USD40-50mn in new TCV); 2) no client roll-offs (witnessed no adverse case in the last six quarters); 3)...

Due to spill over impact of bad summer, Symphony posted sharp ~20% YoY decline in standalone revenue in Q2FY19 as a result of lower volume offtake. Although EBITDA margin showed a smart recovery sequentially in Q2FY19, it...

NEGATIVE SURPRISE: Change in company's business strategy Shankara building products in its conference call has updated on the business strategy of achieving higher revenue growth in retail segment but at much lower margins which came as a negative surprise. It is transitioning into a low price retailer with focus on plumbing and sanitaryware as key growth drivers in the retail segment. Company expects healthy growth in the retail segment and...

In our recent interaction with S Chand Ltd (S Chand) management highlighted Change in Estimates | Target | Reco EBITDA margin expansion is on the cards as paper prices are locked in at...

In March 2018, GlaxoSmithKline Plc had announced a strategic review of GSK Consumer Healthcare's (GSKCH) consumer nutrition business, including brands like Horlicks & Boost as the company was exploring a partial or full sale of its stake in GSKCH by end of 2018. This was triggered by GSK looking to help fund its $13 billion buyout of the Novartis stake in...

In March 2018, GlaxoSmithKline Plc had announced a strategic review of GSK Consumer Healthcare's (GSKCH) consumer nutrition business, including brands like Horlicks & Boost as the company was exploring a partial or full sale of its stake in GSKCH by end of 2018. This was triggered by GSK looking to help fund its $13 billion buyout of the Novartis stake in...

The management of Sun Pharma conducted a conference call to address apprehension among investors after a recent publication by a brokerage regarding so called corporate governance issues and a complaint filed by a whistleblower with Sebi highlighting so called wrongdoings in the company. While the first issue was addressed with a case by case analysis, question marks remain over the whistleblower's complaint for want of management action plan as the management awaits Sebi...

The management of Shankara Building Products Ltd (SBPL) now believes that the company's strong future prospects lies in consolidating its position in the industry rather than aggressive store expansions. It has hence cut its store expansion target to 8-10 stores in FY19 (v/s 15-20 stores guided earlier) and aims for a payback period of 3 years. Also, SBPL shall be putting its core focus on select product categories like plumbing & sanitaryware products to achieve growth ahead. It is also bringing strict financial discipline measures like reducing debtor days,...

Entertainment Limited (ZEEL) to get its perspective on 1) value-maximisation by bringing-in a strategic investor, 2) progress in scaling-up of ZEE5, 3) outlook on its core business, 4) investments around movies and music business and 5) targeted margin band. Ambition to become leading global mediatech player: ZEEL's management highlighted that association with a large strategic partner would transform the company from a pure...