Broker Research reports: latest Downgrades
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Broker research reports for stocks which have been downgraded by brokers. Both recommendation downgrades,
as well as target price downgrades are available .
Strong focus on PCR, 2W and OHT bodes well for margins We met CEAT's MD Mr Anant Vardhan Goenka and CFO Mr Kumar Subbiah at the RPG Annual Investor Conference 2018. Key takeaways: CEAT plans to invest INR35-40b over the next 3-5 years to expand its capacity. This would lead to its capacity increasing by ~50% post full ramp-up in FY21. Majority of this capex is directed toward its focus areas of passenger car radial tyres...
Essel Propack (Essel) in 4QFY18 posted revenues of Rs 628 Cr. due to continued GST related impact on Indian operations; however Europe showed signs of recovery led by Germany.
Source: Bloomberg, Centrum Research, *as on 8th June 2018 Recommendation and key risks: We have revised our FY19E and FY20E EPS downwards by 41% and 43% respectively. We downgrade MPL to Hold from Buy rating, with a TP of Rs31 based on 18x March'20E EPS of Rs1.7, and a 10.2%% upside from CMP. Key positive upsides would be additional ANDA approvals from US FDA...
The Byke Hospitality reported decent set of numbers for Q4FY18, with net revenue growth of 11.9% yoy. Further its EBITDA and PAT margins improved by 289 bps yoy and 324 bps yoy, respectively.
S Chand and Company (SCL) reported strong set of numbers in Q4FY18 which were ahead of our estimates. SCL standalone net revenue and PAT for the quarter grew at 22% and 29.4% respectively. On a consolidated basis for FY18, its Revenue and PAT grew at strong pace of 21% and 75% respectively.
6 March 2018 The Halol facility received 23 483 observations post US FDA inspection in September 2014. Later, in December 2015, US FDA had issued a warning letter for the facility. In November/December 2016, US FDA re- inspected the facility and issued nine 483 observations and maintained OAI status. In February 2018, US FDA re-inspected the facility, and this time, issued three 483 observations, with no data integrity issue and no repeat observation, following which it received VAI status today (Link). SUNPs US business has been under pressure since the warning letter, as it has not received any product approval from this facility in three and a half years. The facility contributes 8-10% of US sales for SUNP, currently down from >15% at the time of warning letter. Resolution of the Halol issue is critical for the company, as it would provide visibility on key approvals including Xelpros, Elepsia, Vagifem, etc.
CG Power reported an exceptional loss at parent level in Q4FY18 led by continued loss of Rs1.1bn at Hungary unit (sale spilled over to H1FY19 owing to General Elections), Rs1.6bn of inventory write-off in Power System Transformers segment in Latin America and inventory write down in domestic Power System book value and write-off of Rs1.5bn in Engineering Projects business. As per the Management, Hungary divestment is on track despite delay by a quarter due to General Elections. The Company expects the deal to sail through by Jun'18 and a quarterly loss...
KNR constructions (KNR), one of best managed road constructer with light balance sheet, low working capital and one of the highest RoCE among peers, reported its Q4FY18 numbers.
Srikalahasthi Pipes Ltd. (SPL) one of the leading manufacturers of DI pipes in India, reported its Q4 FY18 numbers, which was below our expectations. The company reported a bottom-line of Rs. 343.3mn (growth of 10% Y-o-Y) on a...
garner market share in Indian markets by leveraging its scale, technology leadership and strong distribution network. CIL is alsoworking on new areas like Electrification (battery technology), Renewables (fuel cells), Alternate fuels (gas engines)andadvancesanalytics(Telematics)toprepareforfuturegrowth. CIL guided for a CAGR of 05% over a 5year cycle in export markets. The muted guidancewasduetovolatilityinkeyexportsmarketslikeMiddleEastandAfrica...
In Q4FY18, Lumax Ind.s reported revenues of Rs 560 cr (?29% YoY & ?51% QoQ), EBIDTA of Rs 48 cr (?71% YoY & ?36 QoQ) with EBIDTA margin at 8.5% (YoY expansion of 207 bps) and Total comprehensive income was reported at Rs 16.8 cr (?110% YoY).
Strong Growth And Margin Expansion Likely; Retain Buy IFB Industries (IFB) sustained its strong growth momentum with revenues rising 22% YoY to Rs5.2bn in 4QFY18 and 23.4% YoY to Rs21.5bn in FY18. The GST-adjusted like-to-like growth in the home appliance segment was 19.4% YoY (Rs4.2bn sales) while the fine blanking segment's revenues jumped 34% YoY to Rs1bn in 4QFY18. Despite rising commodity prices, gross margin expanded 420bps YoY to 46.3% in 4QFY18 and 170bps YoY to 43.9% in FY18 owing to product indigenisation, better revenue mix and value engineering. EBITDA stood at Rs377mn in 4QFY18, translating...
Bharat Electronics Ltd. (BEL) reported subdued set of numbers in Q4FY18 which came in below our estimates. Net sales and PAT registered a degrowth of 9.5% and 29.4% respectively. The de-growth was mainly on account of lower order booking during the quarter, poor operational performance and higher tax rate.
UFO Moviez's Q4FY18 result was a beat to our forecast lead by a strong 69% YoY growth in in-cinema advertisement revenue. We factor the beat and increase FY19/20E EPS for UFO Moviez by 8%/5.6%. However, we factor higher impact on VPF E-Cinema revenue for Qube Cinema and as a result increase our FY19/20 EPS forecast for the merged entity by only 1.3%/2.1%. We now value the merged entity at 7x FY20E (vs. 8x...
SIL's auditors have raised attention on unbilled revenues relating to worth | 860.4 crore pertaining to earlier years. In respect of this, SIL is in regular discussion with concerned customers for completion of necessary certification and recovery. The availability of appropriate audit evidence on these balances has been limited due to geographical spread of operations of SIL and project-specific data being maintained at respective project site. Hence, auditor could not verify these unbilled revenues. However, the management believes this would be resolved over the next...
Minda Corporation Limited (Minda) reported better than expected results in Q4FY18. Net revenue and PAT increased by 39.9% and 137% yoy respectively. The topline growth was supported by growth in volumes across segments and businesses; whereas net profit growth was mainly on account of improved margins.
Uflex Ltd. reported a good set of numbers for the year FY18 and for Q4. Sales for the quarter increase by 11.8% YoY to Rs 1809.8 Cr and for FY18 have increased by 8.8% to Rs. 6697.4 Cr. The company has witnessed a good volume growth in both films and packaging business. During the quarter, the company witnessed a healthy overall sales volume growth of 8.6% with packaging business volumes growing 12% and film volumes growing at 8% YoY. EBITDA margins saw a dip from 13.5% in Q4FY17 to 12.3% in Q4FY18, but improved from 11.6% in Q3FY18. EBITDA margins during FY18 stood at 13.1% a dip from 14.2% in FY17, on account...
