CANF reported ~17% loan book growth and NII at ~ Rs 138cr, up 5%YoY. Asset quality remained benign. Revival in fresh disbursements was witnessed during the quarter, up ~18%QoQ.

Bharti Airtel (BHARTI) has set a price band of USD1.0-1.3 (GBP0.8-1.0) for its Africa business IPO. This will lead to post issue equity dilution of 16-19%, leaving BHARTI's stake at 55-57%.

but cautious on margins: Info Edge's recruitment business (Naukri) has returned to a higher growth trajectory in FY2019 after weak revenue growth over the past couple of years, with revenue growth of 17.5% y-o-y versus 12.5%/12.3% in FY2017/FY2018. Being the industry leader, almost all leading companies in India are listed in its platform. During FY2019, the number of...

Dr. Reddy's Lab. (DRRD) demonstrated mixed performance in Q4FY19, with revenue stood at Rs 4,017cr (vs. estimate of Rs 3,840cr), beat was on the back of one-time revenue realized from the sale of derma brands of Rs180cr.

Digitisation takes toll, limited volume growth on offer Linc is a writing instrument player manufacturing pens and associated consumables domestically. It derives ~75% of its sales from the domestic market and the rest ~25% of sales from exports. With increasing penetration of digitisation, the core writing instrument market is not growing globally with growth limited to ~10% in the domestic market, the size of which is pegged at ~| 4,100 crore (FY17). Domestic growth is supported by rising literacy rates and higher share of school going population. Going forward,...

Robust results again; no visible hiccups. Maintain Accumulate With a PAT growth of 57% YoY, Bajaj Finance witnessed another highly commendable quarter. The AUM grew 41% YoY, with secular and granular growth in key businesses. It appears to have gained market share in autos, but remained steady in other segments. This is partly due to it being a dominant player in most other segments. While there is a risk of slowing consumption (and lower economic growth), we believe that 1) its market position; 2) inability of competitors to replicate its scale and model; 3) consolidation...

PLL Q4FY19 revenue and profitability were below our estimates, due to lower off-take from the Dahej terminal. The volume was 205 TBTU for Q4FY19, while profits were impacted by an inventory loss of ` 119 crore. Spot price of natural gas has fallen from $8.5 per mBtu at beginning of quarter to $4.3 per mBtu. This loss was a notional loss as per the IndAS valuation of inventory for the quarter. The Dahej terminal's capacity utilization continues to be 104%. The Kochi terminal's utilization remains low at 10% and is only expected to improve after the completion of the...

Business momentum (AUM up 41% YoY) continued to be strong, driven by consumer/SME segments at 56/36%. Better pricing power, growth in high-yielding loans and controlled cost of funds led to sequential NIM improvement. Operating leverage has played a key role in achieving high profitability.

Q4FY19 top-line grew by 9% YoY supported by significant rise in real estate revenue to Rs224cr while PMC growth was subdued (3.6% YoY). EBITDA margin declined by 79bpsYoY to 7.5% due to rise in material cost and absence of high margin re-development revenue....

Sector: Auto ancillary /Small-Cap | Earnings Update 4QFY19 Background: Rane Holding Limited (RHL) is holding company of Rane Group. Founded in 1929; Headquartered in Chennai, India. It has strategic investments in four subsidiary companies, three joint venture companies and one associate company. The company serves a variety of industry segments: Passenger vehicles, Commercial vehicles, Farm tractors, and two wheelers, Three Wheelers, Railways and Stationary Engines. It manufactures Steering and Suspension system, Friction materials, Val ve train components, Occupant safety system and Die-casting products. The company also has presence in the other critical and safety components, like Engine Valves,...

We attended CEAT's annual Investor day and are downgrading the stock Change in Estimates | Target | Reco from Hold' to Reduce' on account of further downside that we see to margins and rise in debt levels. Given the various capacity expansions (capex of...

We attended CEAT's annual Investor day and are downgrading the stock Change in Estimates | Target | Reco from Hold' to Reduce' on account of further downside that we see to margins and rise in debt levels. Given the various capacity expansions (capex of...

Management indicated that it is looking at accelerating store addition (v/s 21 inFY19) and that it is open to further explore the lease model to reduce the capex intensity (capex/sq.ft. up 2.5x over FY16-19). We expect 24 store adds and 26%revenue CAGR over FY19-21.

JLR's wholesale volumes declined 18.2% YoY (+12.5% MoM) to 39.9k units (in-line), including the China JV volumes that fell 40% YoY to 4.2k units

Sector: Auto ancillaries /Mid-Cap | Earnings Update 4QFY19 Background:Established in 1958, Minda Industries (MIL) is a flagship Company of UNO MINDA GROUP and one of the leading suppliers of proprietary automotive solution to OEMs. Headquarter at Manesar, Gurgaon, the company has 62 plants globally and R&D; centers spread across the globe in 8 locations. The company offers a wide range product across different verticals of auto components like switching systems, lighting systems, acoustic systems and alloy wheels among others. It has more than 230 design registration and more than 30,000 touch points. Company has ~50% market share in switch segment thus...

We recently met Mr. Ravneet Gill, CEO of Yes Bank (YBL) and gleaned incremental Sector: Banking insight into the strategy of the company. We share our detailed takeaways below. We revise our estimates for FY20/FY21 and maintain Buy rating, revising our target price to CMP: Rs140...

While underlying automotive trends are not supportive, MSS has been impacted by ramp-up issues at its recently commissioned plants (particularly the Tuscaloosa plant). These issues are transient in nature, partly due (a) teething trouble for the large greenfield plant and (b) visa-related issues. We expect a strong recovery as these plants drive growth based on orders on hand.

Higher tax marred the Q4 PAT: For Q4FY19, Subros reported decline in Revenue/EBITDA by 6%/14%, YoY, impacted by auto industry slowdown. EBITDA margins declined by 92bps YoY due to higher raw material cost (due to change in product mix and currency appreciation) and other expenses. However lower depreciation and interest cost (due to debt repayment) and higher other income led to PBT growth of 7% YoY which got pulled down due to higher tax rate of 45%. Thus PAT declined by 13% YoY, due to absorption of carry forward of unabsorbed depreciation....

Minda Corporation Ltd. (MCL) posted revenues of Rs 771 Cr. (up 7% Y-o-Y, flat Q-o-Q) in 4QFY19 due to growth in volumes across major businesses particularly Mechatronics and Information & Connected systems, profit after tax was flat at Rs 39.1 cr.

Jammu and Kashmir Bank, in a filing to exchanges, has informed the bank's board of directors, pursuant to government order, has appointed RK Chhibber as interim Chairman and Managing Director (CMD) of the bank with effect from June 8, 2019 for a tenure of three months. Consequent to the above, Parvez Ahmed, current CMD, whose tenure was to end in October 2019, has been asked to vacate the office. This move has been undertaken citing concerns regarding governance and functioning of the...