Downgrades

revenue decline of 14% YoY given 1) supply chain constrain, 2) delayed dispatches in T&D; business and 3) lower sales in O&G; segment (due to unseasonal rain). Rise in commodity price and freight cost impacted EBITDA...

Led by steep increase in prices across its markets, JKLC's EBITDA/t doubled since FY19 to ~Rs900/t (adj. for trading operations). However, it remained well below its peers due to higher clinker sales and focus on higher lead distance markets. Given its overdependence on prices, we believe that margins for the company would remain capped due to significant cost pressures, limited scope for cost reduction and high lead distance. With margins trending lower to Rs800/t and limited avenues to contain the cost headwinds, we believe that re-rating in valuations (from 5x to 7x over last six months) capture the...

Background: Emami is a FMCG company with niche focus on relatively under penetrated segments such as antiseptic cream, fairness cream, talcum powder, cooling oil, pain balm and pain reliever. Emami's power brands such as Navratna Oil, Boroplus Cream, Zandu & MenthoPlus Balm, Fair & Handsome, Boroplus Powder, Navratna Cool Talc, Fast Relief, SonaChandi & Zandu accounts for 75% of company's sales. Emami sales have grown at a CAGR of 38.5% (FY2010-20)....

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...

In-line PAT despite miss on revenue/EBITDA front

We retain our BUY rating on the stock with a target price of Rs 750/share, valuing the company at 8.5x of its FY23E EV/EBITDA, implying an upside of 22% from CMP.

Relaxo over the years has maintained b/s prudence with controlled WC cycle (NWC days: 60), healthy asset turn of 2.5x, generating RoCE of 20%+ Q2FY22 Results: Revenue came in line with estimates, profitability was below our...

Expected cash proceed from monetisation of non-core assets by Q4FY22E, to make balance sheet net debt free at standalone level. auger well, (ii) Volatile commodity...

Torrent Pharmaceuticals Limited engages in the research, development, manufacturing, and marketing of generic pharmaceutical formulations in India, the United States, Germany, Brazil, and internationally. The company...