Downgrades

Recommendation: We maintain our BUY rating on the stock with the TP at Rs 205/share.

DIL’s consolidated revenue for the quarter stood at INR 8,466 mn, registering a healthy growth of 20.14% YoY and 12.14% QoQ. The brand contribution has increased to INR 1,545, registering a growth of 25.10% sequentially and margins stood at 18.2%, which showed a improvement of 180 bps QoQ.

NMDC’s Q1FY24 EBITDA of INR 19.9bn (up 4.9% YoY) was 17.5% and 9.8% ahead of our and consensus’ estimates. Key points: 1) Best-ever quarterly performance barring Q4FY23; 2) focus on volume growth

Pfizer’s Q1FY24 performance was marred by recall of three key brands - Magnex, Magnamycin and Zoysn. These had annual sales of INR 1.4bn in FY23. Gross margin contracted 420bps YoY at 59.4%, also impacted by mandated price cut on NLEM products.

Techno Electric & Engineering Co Ltd (TEEC) reported a strong set of numbers with revenue/EBITD/PAT up 138% / 110% / 146% YoY to INR 3.5bn / 475mn / 539mn. Along with the strong operating performance (on a low base), PAT was further boosted by sharp increase in other income and lower tax rate during Q1FY24.

Adani Wilmar Ltd (AWL) recorded healthy volume growth of 25% in Q1FY24, with broad-based growth across all segments. The edible oil segment reported the highest volume growth of 27% on a YoY basis, followed by Food & FMCG and Industry essentials of 21% each respectively.

Weak performance owing to subdued demand for ATBS

Recommendation: We maintain our BUY recommendation on the stock

Recommendation: We remain positive on the growth prospect of the company. However, the recent appreciation in the stock price leaves us with little upside. Hence, we change our rating from BUY to HOLD.