Downgrades

Glenmark Pharma Ltd (GNP) is an India-based pharmaceutical company with commercial presence in more than 80 countries across the globe. GNP is primarily focused on generics, specialty and OTC businesses. The company has strong regional/country-specific presence in diabetes,...

Tata Steel is a leader in the global steel industry with operations spanning over 26 countries with key operations in India, Netherlands and United Kingdom. Tata steel primarily caters to customers in automotive,...

Aditya Birla Fashion and Retail (ABFRL) is consolidation of ABNL's branded apparel business of Madura and Pantaloons.

Good quarter with long term growth outlook intact

City Union Bank Ltd (CUB), the oldest private sector bank in India, is a mid-sized commercial bank headquartered in Tamil Nadu, having a network of 702 branches and 1,720 ATMs spread across the country and a loan book size of Rs.38,012cr Total Business grew by 10% YoY with advances growing at 7%...

The company is focused on strengthening its supply chain operations and enhancing its distribution network to meet the robust demand in Household Insecticides, Personal Wash, and Hygiene and Hair care segments. However, increase in commodity prices is expected to affect margins in the near-future. Hence, we maintain our HOLD rating on the stock with a revised target price of Rs. 992 based on 46x FY23E EPS. Broad based growth across Home care and Personal care GCPL's consolidated revenue rose 8.5% YoY to Rs. 3,164cr in Q2FY22, aided by broadbased growth within categories of Home care and Personal care. Home care segment...

Granules reported a subdued increase in revenue to Rs.888cr,up 3% YoY owing to increased sale of existing products and new launches especially in the Finished Dosage particles which has resulted in an increase in topline partially offset by loss of MEIS benefit. For the quarter, EBITDA contracted to Rs.151 cr, down 41% YoY mainly due to reductions in margins of almost all products especially paracetamol due to the increase in raw materials prices. Resultantly, adj PAT declined to Rs.80.4cr from Rs.164cr, down 51% (YoY)....

IRCON international (IRCON) Q2FY22 PAT came 10% higher than our estimate. This is led by higher other income. H1FY22 revenue increased by 71% YoY and IRCON targets FY22E Revenue at ~Rs60-70bn but expect softness in margin. Based on guidance, H2FY22 implies revenue to increase by 1% to 29% YoY. But due to expectation of weak margin we have cut EPS for FY22E/23E by 9%/10% (exhibit 8). H1FY22 Order book at Rs349bn provides revenue visibility at 6x TTM Revenue. YTDFY22 order inflow (won on competitive bidding) is at Rs27bn and additionally company emerged as L-1 bidder in project worth Rs86bn. We have roll forward TP to FY24E at Rs58, valued at PER of 10x...

We maintain a BUY rating on the stock with a target price of Rs 1,600 valuing it at 16x of FY23E P/E, implying an upside of 12% from CMP.

Background: Lumax Industries, part of DK Jain group, is the largest automotive lighting company in India. It manufactures Head lamps, Tail lamps, Sundry & Auxiliary lamps. Lumax has technological & financial collaboration with Stanley Electric of Japan. Stanley holds 37.5% in Lumax Industries and is its largest shareholder. Lumax provides high quality automotive lighting solutions for four wheelers, two wheelers, CVs & Tractors. It has 27 manufacturing locations across...

During the quarter, NMDC reported iron ore sales volume of 9.0 million tonnes (MT), up 36% YoY but down 5% QoQ (in line with our estimate of 8.9 million tonnes). EBITDA/tonne came in at | 3488/tonne, higher than our estimate of | 3000/tonne (EBITDA/tonne of | 4421/tonne in Q1FY22) For the quarter, revenue from operations was at | 6794 crore, up 205% YoY & 4% QoQ, higher than our estimate of | 5944 crore. EBIDTA for the quarter was at | 3115 crore, up 202%YoY but down 25%QoQ, higher than our estimate of | 2679 crore. Ensuing PAT was at | 2341 crore, up 202% YoY...

We maintain a BUY on PNCIL and value EPC business at 13 x FY24E EPS and HAM portfolio at 1x book value to arrive at a target price of Rs 430, implying an upside of 30% from CMP.

However, on attractive valuations and improved growth prospects, we revise our rating from HOLD to BUY with a target price of Rs 230 (1.5x FY24E ABV).

The current low levels of slippages and credit costs seem unsustainable as the asset quality is expected to remain largely unchanged (especially due to higher credit risk from MSME segment). Hence, we retain our...

Inflationary pressure on raw materials is expected to weigh on company's near-term performance. Despite price hikes undertaken to combat inflation, we expect margin to remain under pressure in coming quarters. Maintaining a cautious view, we downgrade our rating to HOLD with a revised TP of Rs. 3,950 based on 43x FY23E adj. EPS. Revenue up 6% QoQ, but PAT slips 1.4% Britannia registered revenue growth of 6.0% QoQ to Rs. 3,554cr in Q2FY22, owing to marginal volume and demand improvements during the quarter, especially in the rural...

Ujjivan Small Finance Bank, the wholly owned subsidiary of Ujjivan Financial Services Ltd. (USFL) serves over 59.7 lakh customers through 575 branches and 16,251 employees spread across 248 districts of 24...

KSCL's reported a weak operating performance in 2QFY22, despite a 10% surge in revenue on account of higher input cost and other expenses. EBITDA/PAT was below our estimate. Factoring in its 2QFY22 performance, we decrease our FY22E/FY23E earnings estimate by 8%/7% due to higher RM prices. We value the stock at 12x FY23E EPS to arrive at our TP of INR630. We maintain our Buy rating....

Glenmark Pharma (GNP) delivered an in-line 2QFY22 operational performance. Strong traction in ROW markets was offset by deceleration in the Domestic Formulation (DF) / US Generics segment. A change in the...

across all three segments General staffing grew 10% QoQ, Specialized staffing services grew 17% QoQ and Other HR Services grew 13% QoQ. Net head-account addition was strong in BFSI, Consumer, e-commerce, and tele tech cohorts, while sectors which were worst affected by the pandemic are making a comeback. Consolidated EBIT margin came at 1.5%, was flat QoQ...

HMCL's 2QFY22 EBITDA margin surprised positively at 12.6% and came in above our estimate of 11.3% aided by improved product mix, higher exports (+160% YoY in 1H), multiple price hikes over the year (~Rs 3,000) and cost savings led by leap program (+320bps YoY). Festive season sales were...