We revise our estimates on gVascepa sales for Dr. Reddy's Laboratories (DRL). Last quarterly sales annualised for Vascepa are US$620mn. We account for upside from Sputnik vaccine in our DRL target price considering the publication of positive data from interim analysis of Phase 3 studies suggesting >95% efficacy at 21 days post administration of the second dose. Revision in our gVascepa Forecasts: We revise our sales forecast on gVascepa for DRL as we gather from recent launch by Hikma that generics have been granted a skinny label, which carves out the larger indication (reduction in CV risk in statin treated patients with TG level >150mg/dl). In addition we also anticipate supply and pricing constraints to restrict the market share. Dr. Reddy is yet to launch...

While CV continued to lag on account of weak demand, the fort was held by steady traction in the wind & tractor segment. Exports contribution in the Q2FY21 revenue mix fell 2% YoY to 26% vs. 28% in Q2FY20. Nonetheless, the management expects strong offtake on the exports front on the back of a solid order book and new product exports from ABC plant. Furthermore, Timken expects to launch new products in areas like solar, belts, drives and lubricants in order to improve market share and utilisation....

We initiate coverage on Sundram Fasteners with an ADD rating and set a target price of Rs 565, at 27x FY23E EPS, which is at a 10% premium to its 5-year average P/E. Post the run-up in stock price, we would recommend accumulating the stock on every correction. Key risks: slower-than-expected recovery and rapid shift towards electric vehicles We initiate on Sundram Fasteners with an ADD recommendation. Volumes are back to pre-COVID levels for several segments, including cars, tractors and 2Ws. We expect sales to grow in mid-teens over FY21-23, led by a cyclical uptick in India and abroad. Sundaram's enhanced competencies have allowed it to diversify into multiple products. It is also expanding in the non-auto segment. It has lowered dependence on high tensile fasteners with contribution reducing from 80% of revenues earlier to 31% currently. Sundram's diversified customer and product mix enable it to enjoy robust profitability - the elevated margins (16-18%) and high ROEs (in mid-teens) are a function of its mix across cars, tractors, CVs, exports and aftermarkets.

Symphony Limited, and its subsidiaries are engaged in manufacturing and trading of residential, commercial and industrial air coolers, both in the domestic and international markets. The Company operates through two segments: Air Coolers and Corporate Funds. It offers air coolers in various...

Background: Gabriel India Ltd.(GIL) is the flagship company of Anand Group, offering the widest range of ride control products including shock absorbers, struts, and front forks. The Company commenced operations in 1961, with a single plant in Mulund, Mumbai and has grown manifold, currently it has nine manufacturing facilities spread across the country with strong 500 dealer network and 10,000 retail outlets. The company has strong R&D; capabilities with over 43 patents in products and...

Revenue for Q2FY21 dropped 36.3% YoY to Rs. 549cr primarily as volumes shrank 30.9% YoY to 190.7 Standard Cubic Meter (SCMmn). CNG and PNG Industry/ Commercial volumes declined by 42.0%/19.9% YoY, respectively, as lockdown and transport restrictions extended whereas Domestic PNG increased 21.6% YoY. Despite the impact of COVID-19 during the quarter, MGL achieved a growth in volumes QoQ. Blended volume stood at 2.07SCMmn, led by a strong demand recovery in CNG segment post lockdown (1.28SCMmn - 62% of total volume). Witnessed recovery at 90-95% of pre-COVID levels in Nov'20 as commercial activities gradually kicked off. PNG...

While crude oil prices are witnessing sequential improvements, supported by volume growth from Hazira plant and KG98/2 project in long-run. Hence we upgrade our rating to BUY on the stock with revised target price of Rs. 86 using SOTP valuation....

Apollo Tyres (APTY) delivered a Q2FY21 beat and has rallied 40% in the last three months due to domestic volume visibility, a better Europe performance and steady margin outlook.

Decent inflows for H1FY21 but cautious guidance for FY21E For Q2FY21, EIL's order inflows were decent at | 594 crore (| 166.7 crore in Q2FY20), all in the consultancy segment, primarily from customers like Gail, Odisha Mining, Bangladesh Petroleum, AAI, etc. Order book as on Q2FY21 was at | 8978 crore (vs. | 9116.8 crore in Q2FY20) comprising 49% from consultancy and 51% from turnkey segment. For Q2FY21, 86% came from domestic while 14% was from the overseas market. Decent order pipeline for next two years amid challenges...

Background Greaves Cotton (GCL) is one of the largest manufacturers (primarily) single cylinder (diesel, gasoline engines) and dual cylinder engines, which find application in running 3-W vehicles and 4-W small commercial vehicles (SCVs). The company offers products and solutions across business units- Engines, power, farm equipment, mobility and aftermarket. In FY19 Greaves Cotton augmented its Clean Technology...

Power Mech Projects' (PMP) 2QFY21 consolidated revenue fell 35% YoY to Rs3.5bn, 20% below our estimate due to execution challenges, especially in projects such as Maitree, (Bangladesh), Kaleshwaram, Bhusaval and cross-country pipeline work in Maharashtra and Gujarat. ETC/Civil segment sales fell by 52%/31% YoY to Rs877mn/Rs1bn while O&M; revenue fell by 14% YoY to Rs1.5bn. Costs related to idle manpower, transportation (due to re-mobilization at sites) and safety led to EBITDA loss of Rs426mn and net loss of Rs518mn. Overall execution level at sites improved to 65% in 2QFY21 (vs. 56% in 1QFY21) and is likely to rise to 90%/100% of YoY levels in 3Q/4QFY21. Mobilization at sites increased...

Order book remains strong at Rs72,000cr, however orders worth ~Rs17,000cr were in execution stage and NBCC targets to take total projects under execution to ~Rs27,000cr in FY21. NBCC got clearance for Nauroji Nagar projects while Netaji Nagar & Sarojini Nagar projects are awaiting forest clearances. We cut FY21E/22E EPS estimates by 47%/28% due to fall in PMC margins and slow pace in real estate business. We value NBCCs core business at a P/E of 13x on FY22E EPS &...

The engineering business has recovered considerably in Q2FY21 with gear and water business witnessing 12% & 6% sales decline, respectively. We expect 10% decline in engineering business revenue in FY21E & 22% growth in FY22E with speedy execution of existing orders. The current order book in gear & water business is at | 149 crore & | 875 crore, respectively. Further,...

Closure of loss making stores to improve profitability For H1, retail business revenues de-grew ~30% YoY to | 492 crore with Q2 witnessing ~18% YoY decline at | 283 crore. The company, which reported EBIT losses in Q1, returned to the black with EBIT margins of 6% in Q2 (down 200 bps YoY. We highlight that Shankara has rationalised its stores with strong focus on higher revenue share and healthier margin. The process has reduced the store count (to 115 at the end of Q2FY21 vis--vis 129 at the end of Q2FY20) but increased the average ticket size (to | 30,640 in Q2FY21 vis-vis | 28,156 reported in Q2FY20). Post an expected decline of ~18% in...

Minda Industries Ltd (MIL) is a diversified auto ancillary supplier, manufacturing products such as switches, horns & lights. MIL holds a leadership position in switch business with a market share of 67%. MIL's diversified portfolio in the auto component has led the revenue to grow by 8%YoY. This was largely on account of demand for superior product related to BS-VI vehicles. Enhanced safety features and premiumisation of vehicle will further lead to value migration and higher kit value per vehicle for...

MLD clocked residential sales volume de-growth of ~41% YoY to 0.24 msf (~16% fall in Q2 at 0.16 msf) with sales of | 154 crore, down ~32% YoY (~8% YoY growth in Q2). It launched Happinest Palghar 2 project in Q2FY21 with ~485 units spread over 0.18 msf. Going forward, the company is planning to launch four new residential projects in H2, mainly in Mumbai (2), Pune (1) and Chennai (1) regions. Furthermore, it is looking to expand its residential offering through land purchase with sales potential of ~| 2000 crore and expects few definite agreement signings by Q4FY21. The focus...

Consolidated revenue during the quarter increased 14.6% QoQ supported by FSA revenue (+9.9% QoQ) with recovery in both sales volume (+5.8% QoQ) and realized prices (+3.9% QoQ). Realization...

Q2FY21 on the back of growth in exports of formulations, APIs as well as one-offs like the Revlimid settlement income. India business continued its de-growth during the quarter with a YoY decline of 11% on account of lower oncology and Hep-C sales. The company has stated that it would look to launch the highly anticipated Revlimid in the U.S during FY22. Natco expects the launch of its agrochemical molecules by the end of the year, pending regulatory approval....

Consol capex guidance at Rs4.5bn for FY21. Expect no major capex in 2H. to 40.8k (PLe 44.6k). The sharp decline in volumes was led by ~33%/44% YoY there has been some initial pickup in class 8 trucks (~19% of S/A revenues) along with ramp-up in PVs, the outlook for industrial remain weak with no...

Stake sale in KNR Walayar BOT to Cube Highways concluded at equity value of Rs3.85bn and company received first tranche of Rs3.1bn. KNR Constructions posted a strong set of numbers with revenues (up 10% YoY) and margins above our and street estimates. Labour availability and operational efficiency across project sites have been recovering gradually,...