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Background: JK Lakshmi Cements (JKLC) is a north Indian Cement player, established in 1982. JKLC has clinker units in Sirohi, Rajasthan and grinding units in Rajasthan, Gujarat and Haryana. The current clinker capacity is 6.2 MTPA and cement capacity is 11.5 MTPA. JKLC derives sales volume from the northern and western regions. The company has market share of ~6-7% in the northern region and ~9-10% in western regions. JKLC is on the spree of capacity expansion;...
below our estimate of INR 2,032mn. The revenue growth was mainly driven by the CMS (62% YoY growth) segment, led by 25 molecules with speciality API segment, which grew by 18.9% in Q4FY20. EBITDA margin expanded by 498bps to 15.6% level, which was 274bps higher than our estimate due...
Focus on MT/Ecomm channel will continue to drive its premium portfolio and market share gain (160/200bps yoy market share gain in MT/Ecomm channel in 4Q). Co expects to expand its gross margin and is investing behind its brands. We cut EPS estimates for FY21/FY22 by 3% to factor in subdued category growth and moderation in premiumisation trend. We value COLGATE at 38x on Mar-22E EPS, deriving a TP of Rs 1,328. Maintain ADD. Colgate saw a 7% yoy dip in its revenues as lockdown impacted primary sales. However, co witnessed positive momentum pre-Covid with market share gain for toothpaste. Most personal care companies/categories struggled in 4Q (HUL BPC down by 14% yoy, Marico PCNO/VAHO down by 12/18% yoy, GCPL India business down 18% yoy and Gillette down 13% yoy). We believe oral care being an essential category will recover quickly and revenue loss due to channel disruption will be minimal (unlike many FMCG categories). Cos new launches are exciting and expect similar aggression in the coming years.
4QFY20 saw the first quarter of BOS outperforming underlying industry growth; this was led by the initial benefit of a BS6 content increase and the 2Ws segment addition. We believe stock price is largely reflecting for all the negatives, but a re-rating catalyst may emerge within We downgrade our FY21/FY22 EPS by 10%/3% to reflect volume decline. However, ramp-up beyond the first shift would depend on ramp-up at tier-2 / tier-3 vendors, which may face a labor shortage if migrant labor takes time We downgrade FY21/FY22 EPS by 10%/3% due to lower volume estimates for the underlying industry, diluted by higher other income. We downgrade FY21/FY22 EPS by 10%/3% due to a lower volume estimate for the underlying industry, diluted by higher other income. Going forward, we expect BOS to outperform underlying industry volumes, barring the substantial divergence in segmental trends, driven by an increase in content under BS6 as well as additional revenues from 2W EFI.
23 May 2020 Essel Propack Revenue across EAP and AMESA region was impacted during 4QFY20 due to the lockdown in China and India (Mar20). However, this was offset by robust growth in Europe and Americas region. Thus, overall consolidated revenue declined 1% YoY. We have cut our estimates for FY21/FY22E by 14%/5%, factoring in the slowdown in business across multiple geographies to arrive at a TP of INR200. Maintain Revenue declined marginally by 1% YoY to INR6.8b (v/s est. INR7.3b), primarily due to sluggish performance in EAP and AMESA (for certain portion of the quarter). EBITDA margins expanded by 110bp YoY to 20.1% (v/s est. 20.7%), largely due to improvement in the overall product mix and strong growth in the Europe region. However, this was offset by margin contraction in AMESA and Americas region. Adj. PAT declined 1% YoY to INR486m (v/s est.
23 May 2020 JSW Steel (JSTL)s fourth-quarter result reflects the benefit of higher domestic steel prices. Derived realization improved by 7% QoQ to INR41,289/t, leading to a 45% QoQ increase in EBITDA to INR8,703/t. Rev/EBITDA/Adj PAT declined 20%/33%/32% YoY to INR179b/INR30b/INR10.4b respectively. We expect lower coking coal and domestic iron ore prices to cushion the fall in margins due to lower steel prices in FY21E and expect margins to decline 10% YoY in FY21E. Our FY21E/FY22E estimates remain broadly unchanged. INR30.3b) on lower margins and consol. PBT (before exceptional item) was Standalone (S/A) volumes declined 14% YoY (-8% QoQ) to 3.7mt due to COVID-19. Crude steel production declined 5% YoY (-1% QoQ) to 3.97mt. The share of exports declined to 13% v/s 24% in the previous quarter. INR41,500/t) on strong domestic prices and lower exports. EBITDA/t improved 45% QoQ (down 14% YoY) to INR8,703/t, led by higher realization.
On like-to-like basis (i.e. including Arysta in 4QFY19), revenue grew 26% YoY Note that EBITDA growth of 25% in 4QFY20 was driven by cost and revenue synergies; excluding the same, EBITDA remained flat (refer For FY20, like-to-like revenue/EBITDA grew 13%/18%; revenue growth was driven by 16% volume growth, offset by 1% decline in prices and 2% forex In 4QFY20, strong revenue growth was witnessed across regions (North According to management, for 4QFY20/FY20, cost synergy realized from the Arysta acquisition stood at INR2.4b/INR7.7b and revenue synergies at Draft proposal on banning 27 pesticides in India would not impact the Cost synergy of USD150m, revenue synergy of USD200m and UPLL is aiming to reduce Net Debt to EBITDA to 2x by FY21 from 2.9x as at UPLLs FY20 revenue/EBITDA (like-to-like) grew 13%/18%, primarily driven by synergy benefits; excluding the same, base business (UPLL and Arysta; ex-synergy) operating performance remained flat (refer Additionally, net debt reduced by INR44b in FY20 (in line with guidance).
Maruti Suzuki India Ltd (formerly Maruti Udyog Ltd) is India's largest passenger car company, accounting for over 50 per cent of the domestic car market. The company is a subsidiary of Suzuki Motor Corporation of Japan which has held 56.28% stake in Maruti Suzuki. The company is engaged in the business of manufacturing, purchase and sale of motor vehicles and spare parts (automobiles, along with several other activities including ...
Bharti Airtel Ltd, is Asia's leading integrated telecom services provider with operations in India, Africa and Sri Lanka. Bharti Airtel has been at the forefront of the telecom revolution and has transformed the sector...
We maintain BUY with SOTP of Rs 69/sh. JMC Project Ltd (JMC) 4QFY20 financial performance was impacted by ECL provisioning of Rs 795mn in the Kurukshetra Expressway BOT toll project. Adjusted for the same the APAT beat stood at 26.8%. Whilst FY20 saw weak order intake of Rs 33.6bn, 1QFY21 has started on strong footing with new order wins of Rs 11.3bn and L1 of Rs 18bn. We expect FY21E to be turnaround year for JMC as (1) Likely restructuring of 3 BOT assets will cut loss funding to Rs 500mn (vs. Rs 800mn for FY20) (2) New orders bookings have been strong for 1QFY21 & (3) International geographies have started contributing to order inflows.
We have reduced EBITDA est for FY21/22E by 4/4% each as we factor in higher impact of Covid and build in EBITDA to decline at 3% CAGR during FY20-22E. We value the standalone cement biz at 8x FY22E EBITDA and value its 72.5% holding in Udaipur Cement Works at 20% disc. Thus, our SOTP based TP remains unchanged at Rs 370. We continue to like the co for its large presence in north markets and on increased cost controls. We maintain BUY on JK Lakshmi Cement with a TP of Rs 370. A sharp 16% vol dip in 4QFY20 pulled down FY20 vol by 5% YoY. The Covid impact will further pull down FY21E volume by 16% YoY. However, we build in 21% vol recovery in FY22E. This along with falling energy costs in FY21 to limit standalone EBITDA decline CAGR at 3% during FY20-22E. Healthy cash flows keep leverage comfortable and support capex acceleration FY22E onwards. In 4QFY20, despite lower vols, healthy pricing in the north/Guj markets boosted standalone EBITDA/APAT by 54/133%.
JK Lakshmi Cement reported better-than-expected Q4FY20 numbers. Revenues for Q4FY20 fell 9.5% YoY to | 1,061 crore (vs. I-direct estimates of | 910 crore). Revenues declined on account of a 15.1% drop in volumes YoY to 2.5 MT (vs. I-direct estimate of 2.11 MT). Average realisations for the quarter were at | 4,242 per tonne (vs. I-direct estimate of | 4,320/t). Prices remaining high in north and west supported realisation growth. EBITDA margins of the company expanded 784 bps YoY to 19% while EBITDA/t increased 81% YoY to | 808/t (vs. I-direct estimate of | 650/t) led by...
The Multiplex Association of India has suggested Enhanced Safety and Precaution plan for Cinemas encompassing health & hygiene norms, social distancing and F&B; sale. Leaving the adjacent seats empty, if implemented, will affect the occupancy up to ~25% as per the management. The weekend occupancy for PVR is ~52% while weekday occupancy is ~26%. This could undergo a change as some customers may prefer weekday viewing...
On account of Covid-19, the company halted operations from March 22, 2020 and gradually restarted operations from April 8, 2020. All mines and smelters of HZL were operational in a couple of weeks. In April 2020, HZL's mines and smelter were ramped up to 40% and 80% of capacity,...
Domestic sales volume in March 2020 fell to 11,012 units (-84.0% YoY), taking FY20 domestic volumes to 442k units (-34.9% YoY), impacted by COVID-19 pandemic and planned transition to BS VI. JLR recorded FY20...
Given the challenging business conditions amidst corona outbreak, we believe upside potential would be limited in the medium-term. Hence, we maintain our HOLD rating on the stock with a revised target price of Rs. 52 based on 4.2x FY22E adj. EPS. Corona update and impact on industry COVID-19 pandemic continues to weigh on global economic growth including India. IMF recently slashed its GDP growth forecast for India to 1.9% from 5.8% for FY21. Plants shut down and limited dealership activities owing to lockdown added pressure...
JK Lakshmi Cement (JKLC) has reported good set of numbers for 4QFY20 with revenue and EBITDA of Rs10.6bn and Rs2bn, respectively, which were ahead of our as well as consensus estimates. The company has reported substantial drop in volume at 16% YoY whereas pricing has been better with 7.9% YoY growth (flat QoQ). JKLC's high exposure to markets in Gujarat and Chhattisgarh is a concern in our view given the weak demand and pricing environment in these two states. The company is operating at full clinker capacity utilization but still does third party clinker sales as according to them it is remunerative compared to sale of cement. The debt level has come down from FY19 level in the absence of capex and it is likely to come down further in FY21. The...
We re-iterate our ADD rating on the stock, while we expect volumes in the high growth export markets (which are ~45% of vols) to decline in FY21E. A diversified product mix and healthy balance sheet will cushion the impact of the volatile macro environment. Bajaj Autos 4Q PAT (flat/4% YoY/ QoQ) beat was driven by a richer product mix as well as improved profitability. Going ahead, as the environment will remain uncertain, the management expects margins to correct from ~18% levels of 4Q. The OEM will pass on the benefits of a weakening INR to aid demand, particularly in the African markets.
