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estimates. The company has posted revenue of INR4,711mn with 21.6% YoY growth which was 12.2% above our estimate of INR 4,198mn. Revenue beat was mainly driven by optimum utilization of PA4 and a sharp increase in the MA realization. Despite increased contribution from high margin product (MA), gross margin witnessed 449bps contraction on QoQ basis, and 167 bps decline on YoY basis due to contraction in PAN/OX spread. EBITDA surged by 133% YoY to INR 975mn (est INR...
Domestic formulation continues to register strong growth Indoco Remedies' (INDR) Q2FY22 performance was muted in regulated market, but should recover with pick up in profit share from Brinzolamide in US and settling of logistics issues in EU markets. The domestic market continued to witnessed strong growth in therapies like anti-infective, GI, VMN and Opthal. We remain structurally positive on INDR on account of 1) MR productivity enhancement and higher penetration in North and East markets 2) new launches in US and 3) higher tender business in EU market. This will...
Valuation and rating: We value RMT at an average of 26x Sept'23 PE and 16x Sept'23 EV/EBITDA to arrive at TP of Rs2,500 (Rs2,550 previously) and maintain BUY rating. Decrease in TP is due to downward revision of FY22/FY23 estimates. We have lowered both SS pipe and CS pipe sales estimates for FY22/FY23E, assumed higher realisation in 2HFY22 and also accounted the capital expenditure for modification of SS pipe plant....
Higher pricing, optimizing trade spending, enhancing productivity and premiumization are core themes, the company plans to focus on in the coming quarters. However, input cost inflation, higher Ad spends to revive sales and weak rural demand scenario remain headwinds in the near-term. Hence, we downgrade our rating on the stock to HOLD with a revised TP of Rs. 1,650 based on 37.5x FY23E adj. EPS. Topline sees further recovery, as penetration remains strong During Q2FY22, company's standalone revenue rose 16.1% QoQ to Rs. 1,344cr (+5.2%...
Given the recent run-up in Minda Corps stock price, we are revising our rating from BUY to HOLD and value the company at 16x FY23E EPS to arrive at a target price of Rs 170.
The stock is currently trading at 9x FY22E and 7x FY23E EV/EBITDA. We retain our BUY rating on the stock and value the company at 8x its FY23E EV/EBITDA to arrive at a target price of Rs 115/share, implying an upside of 15% from CMP.
Sequent Scientific (SSL) has posted revenue of INR 3,506mn with a 1.2% YoY increase, which was 13% above our estimate of INR 3,102mn. The revenue beat was mainly driven by higher than expected growth in formulation business; However, API business de-grew by 10.4% (YoY) due to lower offtake of Albendazole (key product in API). The formulation business grew by 6.1% (YoY), led by strong performance in LATAM (+34.5% YoY) and Europe (+10.3%). India business growth moderated (+4.2%) due to the base effect of Zoetis commercialization in Q2FY21. Currency depreciation overshadows double-digit growth in Turkey business (de-grew by 6.6% YoY). Revenue from Emerging markets declined by 23.4%. Management expects a strong recovery in the API business during the second half of the year. EBITDA margin witnessed a sharp contraction of 1067bps to 5.6% level (lowest in last four years), which was 632bps lower than our estimate due to negative operating leverage in API business and higher employee cost (due to ESOP). Despite income tax credit (tax rate 250% vs 20.7% in Q2FY21), reported PAT came at INR 143mn (-52.8% YoY) compared to our expectation of INR.159mn due to operationally weak performance. Management maintained revenue...
PNBHF reported a 2QFY22 PAT of INR2.3b (9% miss), which declined by 25% YoY and 3% QoQ. The miss was driven by lower-than-estimated NII on account of income reversals due to accelerated run-off in the securitized pool of loans and partly mitigated by lower credit costs. NII fell 25% YoY and 9% QoQ to INR4.7b (9% below our estimate of INR5.1b). Provisions at INR1.4b were below our estimate of INR1.8b....
Volumes have already reached pre-pandemic levels and are expected to grow further. Decline in daily COVID cases, accelerated vaccine drive and increase in mobility will provide much needed impetus to economic recovery. With promising outlook, we reiterate our BUY rating on the...
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. Company operates through two segments: Air Coolers and Corporate Funds. It offers air coolers in various...
