We now forecast FY19/20 advertisement income growth of 26%/32.4% vs. 27.8%/32.6% earlier. We fine-tune our forecast for FY19/20E and now forecast EBITDA CAGR of 14% and EPS CAGR of 23%. We continue to believe that the merger with Qube Cinema would be a game...

Maintain BUY with a TP of Rs 216 (2.2x Mar-20 ABV of Rs 98.3). DCBBs 4Q numbers were brimming with positives as growth sustained (+29% YoY) and NIMs held up (4.16%, +4bps QoQ). Tight control on costs was evident as opex grew merely ~2% QoQ and core C-I dropped 330bps QoQ. Robust fee growth (+39%), timely reduction of the mortgage portfolio (down 200bps QoQ) and sharp rise in PCR (75.7%; +240bps QoQ) were a key positives. Asset quality was contained with lower slippages, better recoveries and healthy PCR.

Revenue in dollar terms reported at $2,805 Mn (+1.8%) qoq that was above our estimates of $2,783 Mn. The revenue was supported by the currency tailwind of ~100 bps coupled with improvement in business verticals, especially Insurance and Energy & Utility. The operating margin for the quarter reported at 24.7% (+40 bps) qoq owing to improvement in utilization and price realization By Geography: Europe has outperformed with 3.5% qoq growth driven by increase in IT spending from regional banks. However, the growth in the...

Maintain BUY with TP of Rs 1,300, 17x FY20E EPS Infosys (INFY) posted in-line revenue at USD 2,805mn, 1.8% QoQ (1.7% est.) with CC growth of 0.6%. EBIT% at 24.7%, +46bps QoQ (24.4% est.) was supported by cross currency gains (+20bps) and higher offshore mix. INFY guided for 6 to 8% YoY (CC terms) growth for FY19E vs. 5.8% registered in FY18, but lowered its EBIT% guidance to 22-24% (from 23-25%).

BHE received orders of INR100b (42% decline) in FY18, lower than our estimate of INR160b primarily due to the Akash (7th Squadron) order slipping into 1QFY19. Its order book at the end of the year was flat YoY at INR400b. Price negotiations for the Akash order have been completed and BHE should receive the final order shortly. The LR SAM order (INR60b-70b) is also likely to be placed by 1HFY19. Other large orders in the pipeline include EW Samyukta (INR10b), Commander Thermal Imagers, QR SAM and Akash (Army; two regiments). We estimate orders of INR180b-190b in FY19

According to media reports, the government may ask state oil marketing companies to absorb a hike of up to | 1 per litre on petrol and diesel retail prices. Brent crude oil prices have witnessed an upward trajectory in the past two quarters and are currently at a four-year high of US$71/bbl. This has led to the escalation of petroleum product prices, especially petrol and diesel. If there is any limit on passing on fuel price hikes to consumers, the oil marketing companies (OMCs) would have to bear a notable burden on their profitability. However, some reports also indicate that OMCs have not...

According to media reports, the government may ask state oil marketing companies to absorb a hike of up to | 1 per litre on petrol and diesel retail prices. Brent crude oil prices have witnessed an upward trajectory in the past two quarters and are currently at a four-year high of US$71/bbl. This has led to the escalation of petroleum product prices, especially petrol and diesel. If there is any limit on passing on fuel price hikes to consumers, the oil marketing companies (OMCs) would have to bear a notable burden on their profitability. However, some reports also indicate that OMCs have not...

The under-recovery in O&M cost is more than INR5.5b. It would decline to less than INR2b when the O&M norms are reset in the next tariff regulations in FY20. The decline in under-recoveries will also be aided by reduction in number of employees (count has reduced from ~8,000 in FY17 to ~7,500 in FY18 and will decline to ~6,500). The revenue under-recovery of INR1.5b- 2b per year on four projects due to over-run in capital cost, which is pending approval, is also likely to be recovered by FY20. Of the four projects, three are in the first review stage of CEA, while one is in the second review stage of PIB. The final stage is approval by CCEA

Grasim Industries (GRASIM) is likely to gain scale in the VSF (increasing capacity by ~58% over FY18-21) and Chemicals (increasing capacity by ~37% over FY17-19) segments by way of capacity addition. VSF demand in India is likely to grow at ~8% over FY17-22 -around 200bp higher than the global growth rate - due to initiatives undertaken by GRASIM (e.g. ingredient branding in the form of 'LIVA'). VSF commands a stable margin owing to the rising proportion (38%) of high-margin specialty fiber in its portfolio and the increasing share of domestic sales (at 77%).

little, too late: The ICICI Bank board has issued a statement, coming out in support of the management, effectively denying any wrongdoing in the transaction. While the board making the statement, instead of the management, adds credence, we believe that there are too many unresolved issues/ questions...

SMRPBV has proposed to acquire a 100% stake in Reydel Automotive forUSD201m. This acquisition is structured under a Lockbox arrangement with effect from 1st January 2017. This stake would be bought from Cerberus Capital, a private equity player. Reydel was carved out from Viste on and acquired by Cerberus in 2014. Acquisition price of equity valued at USD201m implies EV/EBITDA of 2x CY17. Reydel is a global supplier of instrument panels, door panels, console modules,decorative parts and cockpit modules, with presence across the EU, South America and Asia. It has 20 manufacturing facilities, with presence across 16 countries and ~5,650 employees.

Shilpa Medicare (SLPA) recently decided to end its joint venture (JV) with ICE S.P.A Italy (ICE) - a move that would help it garner proceeds of INR1.3b, as against its investment of INR800m toward the JV. Furthermore, the amount of annual business with ICE via CRAMS may be reduced by ~INR500m. The decision was premised on the increasing uncertainty over the profitability of the JV. Accordingly, for FY19/FY20, we reduce our (i) sales estimate by 5% to INR10b/INR12b and (ii) earnings estimate by 8.5% to INR2.1b/INR2.7b. Consequently, our price target is lowered to INR686 (25x 12M forward earnings). We, however, remain positive on SLPA and re-iterate our Buy rating, given the promising outlook for the US formulations business (31 ANDAs pending for approval)and minimal medium-term regulatory risk.

Delta Corp (DELTA) operates three floating casinos (Deltin Royale, Deltin Jaqkand Deltin Caravela) and one onshore casino (Deltin Casino- part of Deltin Suites) in Goa. Deltin Royale and Deltin Jaqk are DELTA's major casinos with vessel passenger capacity of 200-400. Deltin Caravela and Deltin Casino are relatively small with passenger capacity of 200 or less. DELTA incurs INR370m as license fee to operate the four aforementioned casinos. However, the outlay for the four licenses would increase to INR1,050m once the revised fee structure becomes effective. We believe the increased license fee would have a significant impact on Deltin Caravela and Deltin Suites, as they operate on a relatively small scale(accounting for 6% of DELTA's overall revenue for FY19E). This would likely make it unfeasible for DELTA to operate these two casinos.

Shree Cement ( SRCM) is increasing its domestic capacity by ~32% over FY17-19 at an estimated capital cost of USD60/t. Acquisition of the asset in the UAE at USD76/t has also been at a significant discount and in line with the company's long-term strategy. SRCM's relatively low cost of production compared to peers has resulted in healthy margins and return ratios. As a result, it warrants premium valuations, in our view. We expect SRCM to deliver a better performance than industry due to 1) capacity ramp-up over FY17-19 and 2) a favorable market mix, with higher exposure to the north markets ( >70%), where prices are expected to be the highest

Mayur witnessed recovery in its business catapulted by growth in domestic sales volume of 32.8% while export sales registered volume growth of 9.7% in Q3FY18. Revenues jumped to Rs 137.99 crs ($21.3m) in Q3FY18 from Rs 108.81 crs ($16.1m) in the previous year (severely marred by...

Bodal is the largest integrated manufacturer of dyestuff and dyeintermediates in India. It has undertaken multiple expansions in its core business and diversified areas with subsequent ramp expected to fuel next leg of growth in FY19E-20E As of 9MFY18, its core business of dyestuff and dye intermediates continued to witness satisfactory growth in volume terms However, partial resumption of Chinese capacity in FY18E led to softening of product realisations (down 10% YoY) thereby resulting in marginal decline in topline in FY18E (absolute basis)...

Persistent System (PSL) announced that its IP led revenues will decline by $8 million in Q4FY18E on account of seasonality and the volatile nature of the business. Consequently, we expect overall revenues to decline 5.8% QoQ to $115.4 million (mn) in Q4FY18E while its EBITDA margin may decline 370 bps sequentially to 13.6% given the sharp fall in high margin IP led revenues. Going ahead, PSL expect a strong pipeline of opportunities in FY19E and expects revenues growth to exceed Nasscom guidance. We now incorporate weakness in IP revenues resulting in a...

View: We maintain Tata Consultancy Services (TCS) as our preferred pick among the Tier-I IT Services companies. Given the recent run-up in Technology stocks, we believe that the valuations are now stretched for certain companies as we do not see a meaningful fundamental recovery in growth prospects for FY19. We continue to remain selective in our approach and maintain TCS as our preferred pick among Tier-I IT Services plays. In our opinion, the recent rally offers a good opportunity to exit some of the names such as Infosys, as its discount to TCS would widen further from the current level of 10% to the ideal range of...

We believe that the weakness in EIL stock price over the last two months is predominantly driven by weak order inflows in the current quarter. We expect key large orders (including HPCL Barmer refinery order) to defer to Q1/Q2FY19. We retain long term positive view on EIL, however tweak FY19/20 estimates to factor in continued sluggish momentum in awarding of new large ticket size orders. We expect EIL valuations to remain under pressure driven by sluggish ordering momentum. Further delays in the awarding of key orders can pose threat to our earnings estimate. We reduce our target PER and value EIL at 23x FY20 (25x earlier)...