Vardhman Special Steel (VSSL) reported a healthy set of Q4FY21 numbers on the back of strong demand from the automobile sector. Sales volume for the quarter was at 47828 tonnes, up 34% YoY, 4% QoQ. Topline came in at | 334.5 crore, up 63% YoY, 16% QoQ. Topline growth was on the back of higher sales volume and price increase, which came into effect from January 2021. Ensuing EBITDA came in at | 52.3 crore, up 231% YoY, 32% QoQ. EBITDA margin for the quarter was healthy at 15.6% (13.7% in Q3FY21, 7.7% in Q4FY20). The robust EBITDA performance was primarily on the back...
Q4 revenues grew 5.3% YoY to | 4606 crore. Domestic sales grew 4.5% YoY to | 1807 crore. US grew 17.1% YoY to | 1002 crore on the back of continued Albuterol ramp-up. RoW markets business de-grew 4.8% YoY to | 674 crore. South Africa business grew 13.9% YoY to | 606 crore tracking strong private business momentum. EBITDA margins expanded 281 bps YoY (down 653 bps QoQ) to 17.3% mainly due to significantly lower other expenditure partially offset by lower gross margins. Subsequently, EBITDA grew 25.7%...
HG Infra Engineering (HG Infra) reported a robust set of Q4FY21 numbers. Standalone revenue improved 65% YoY to | 1,027.8 crore, clearly reflecting the sharp pickup in execution aided by healthy order book position and normalisation of labour availability/raw material supply chain post Covid-19 related disruptions. Also, operating profit margin was at an elevated 16.2%, down 8 bps YoY, on account of better project mix. At PAT level, robust operating performance translated into 90.5% YoY growth (to | 97.7 crore)....
With expected exports, DWL would be able to substantially reduce its sugar inventory in the next one year. Further, increasing distillery volumes through B-heavy & sugarcane juice route would drive growth in operating profit. We expect | 485 crore of operating cash flow generation in the next two years, which would fund capex for new distillery and also result in debt repayment to the tune of | 260 crore. We expect 30% earnings CAGR on the back of strong operating profit growth & interest cost reduction. We change our...
US remains a key driver, contributing ~37% to revenues as of FY21. DRL has a strong pending pipeline comprising 92 ANDAs (47 Para IV filings, 23 FTFs) and three NDAs under 505 (b) (2) route. We expect US sales to grow...
The company is aiming to reach 10 MT capacity by FY25E. In the first phase, Sagar Cement is adding 2.5 MT capacity (1 MT in MP and 1.5 MT in Odisha) for capex of | 800 crore. These capacities will get commissioned by the end of Q2FY22E. Post these expansions the total capacity will increase to 8.25 MT. Having already spent | 545 crore, we expect debt levels to peak around...
We reiterate our buy on Tata Power factoring in the growth in EPC business, higher regulated capex, debt reduction and merger benefits. We assign a SoTP TP of INR127 (+ 17% from the CMP) Tata Power reported consolidated revenue at INR 101.3bn (+53%/+33% YoY/QoQ) in Q4FY21. The numbers are not comparable to our estimates due to the acquisition of Odisha distribution circle. The growth was also aided by strong execution of solar EPC projects. However, EBITDA declined 8.5% yoy to INR14.5bn due to increased losses in Mundra project from the rise in coal prices. The deleveraging exercise helped the company in lowering its interest expenses, which along with a deferred tax credit led to a 38.6% yoy rise in its APAT to INR3.9bn. Solar EPC order backlog stood strong at INR 87.4bn. While InvIT transaction missed the FY21 end target, the management has indicated a much better alternative for monetisation of its renewable assets which could fetch a higher valuation. We have revised our earnings estimates factoring the inclusion of Odisha discoms and exclusion of renewable business in our estimates.
We tweak our estimates by -3%/+4% for FY22/23e and revise the TP to INR1,220. Downgrade to ADD. Lupins 4Q sales/EBITDA was ~5%/9% below our estimates, largely on account of subdued US (+4% QoQ, weak flu season offset Albuterol contribution) and weak API business (-22% YoY). EBITDA margin at 18.7% remained flat QoQ. Management guided for double-digit growth in key markets (India and US) in FY22 and EBITDA margin improvement to 21-22% by FY23 (vs. 17.2% in FY21). We continue to remain positive on Lupins ability to execute and monetise its complex pipeline in the US (inhalers and complex injectables). We factor in ~460bps margin improvement (to 21.8%) and ~40% earnings CAGR over FY21-23e, driven by operating leverage. However, at 31x/23x FY22/23 EPS, the positives appear priced in.
We revise our rating to BUY (HOLD earlier) given the long term structural growth drivers like ,clear focus on driving volumes and profitability, improved traction in other business segments
We roll over our estimate to FY23E valuing the company at 7x of FY23E EV/EBITDA to arrive at target price of Rs, 1230 implying an upside of 18% from CMP.
revenues growing by 33% YoY to Rs.799cr in Q4FY21. All segments saw strong growth mainly on the back of of successful new launches, increase in market share of finished dosages, as well as customer additions for APIs and PFIs. Disruption in supply of key raw materials from China will impact operating performance in the short term The company has guided a Capex of ~Rs.1,000cr over the next 3 years as it looks to expand capacities for its key products...
Siemens India, a flagship company of Siemens AG (Germany), is an integrated technology provider and a leading powerhouse in electronics and electrical engineering. Siemens is strongly placed in Energy and Infrastructure including transmission & distribution, automation, urban...
UPL's 4QFY21 result beat NBIE/street estimates with consolidated adjusted PAT coming in at Rs11.43bn excluding exceptional item vs our/Bloomberg estimate of Rs9.73bn/Rs10.78bn. The beat was mainly driven by the 5.9% beat on revenue, led by the beat in LatAm sales. Gross/EBITDA Margins came in a tad higher. Management expects improved pricing power in FY22, reversing the FY21 trend, which depended on volume growth to drive topline. We raise UPL TP by 43.3% to Rs808, on higher FY23E PE of 12.5x vs. old PE of 10x and upgrade the stock from Accumulate to Buy based on upside of 16.9% from CMP. This revision follows the increase in FY22E/FY23E EPS estimates by 7.25%/14.57%, based on higher growth and margin assumptions. The key catalysts for the upgrade are: 1) The shift in UPL's product mix...
Lupin's 4QFY21 revenue at Rs37,831mn is down 6% QoQ and down 2% YoY and lower than our/consensus estimates by 3.1%/4.6%. The QoQ decline was sharper than anticipated due to sharp decline in API sales and formulation sales in Rest of world. US sales posted good growth (3.7% QoQ), despite supply disruptions in Albuterol inhaler and a weak flu season. Revenue growth should gain momentum in FY22, as growth in India business should come back, while the US business should gain from Albuterol inhaler market share ramp up, Levothyroxine ramp up and new inhalation launches like gBrovana, gFoster Inhaler and gPerforomist. Potential resolution of Spiriva litigation or a tentative approval by the USFDA would be the key stock price catalyst going forward. We revise our forecasts on...
UPL's 4QFY21 result beat NBIE/street estimates with consolidated adjusted PAT coming in at Rs11.43bn excluding exceptional item vs our/Bloomberg estimate of Rs9.73bn/Rs10.78bn. The beat was mainly driven by the 5.9% beat on revenue, led by the beat in LatAm sales. Gross/EBITDA Margins came in a tad higher. Management expects improved pricing power in FY22, reversing the FY21 trend, which depended on volume growth to drive topline. We raise UPL TP by 43.3% to Rs808, on higher FY23E PE of 12.5x vs. old PE of 10x and upgrade the stock from Accumulate to Buy based on upside of 16.9% from CMP. This revision follows the increase in FY22E/FY23E EPS estimates by 7.25%/14.57%, based on higher growth and margin assumptions. The key catalysts for the upgrade are: 1) The shift in UPL's product mix...
Lupin's 4QFY21 revenue at Rs37,831mn is down 6% QoQ and down 2% YoY and lower than our/consensus estimates by 3.1%/4.6%. The QoQ decline was sharper than anticipated due to sharp decline in API sales and formulation sales in Rest of world. US sales posted good growth (3.7% QoQ), despite supply disruptions in Albuterol inhaler and a weak flu season. Revenue growth should gain momentum in FY22, as growth in India business should come back, while the US business should gain from Albuterol inhaler market share ramp up, Levothyroxine ramp up and new inhalation launches like gBrovana, gFoster Inhaler and gPerforomist. Potential resolution of Spiriva litigation or a tentative approval by the USFDA would be the key stock price catalyst going forward. We revise our forecasts on...
Given the promoter's intent to increase the stake and loans given to the parent by VEDL, we believe potential corporate actions could be the key drivers of the stock price. Moreover, high leverage and scheduled debt repayments at the parent VRL remain an overhang. Maintain Neutral. High commodity prices boost EBITDA to all-time high 4Q EBITDA rose 17% QoQ (99% YoY) to INR90.4b (est. INR87.6b) and adj. PAT rose 15% QoQ to INR34.9b (est. INR37.4b), led by higher commodity prices. EBITDA (excl. Hindustan Zinc) improved 15% QoQ to INR51.5b....
