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Valuation and Outlook: We have valued the stock based on 3.2x forward P/EV and 36.3x forward P/VNB with a premium of 1.02x and has arrived at a price target of Rs. 988 with a potentialupside of 13%. We rate the stock as HOLD'.

We roll our price target to INR650 on a 12M forward SOTP basis (8x EV/EBITDA for the US / Other Regulated markets, 6x for Emerging Markets, and 5x for Institutional). Considering this and its increased market share in commercialized products, we expect US sales to revive and exhibit a 6% CAGR to USD270m over STR recorded the highest ever quarterly revenue of INR2.6b in the Other Regulated market, implying growth of 53% on a YoY basis in 1QFY21. We expect the business to exhibit a 23% CAGR in sales to INR12.6b over STR exhibited 17% YoY / 47% QoQ growth in the Emerging Markets business, led by an increase in primary sales in Africa. in Other Regulated and 52% sales CAGR in Emerging Markets, supported by our price target to INR650 on a 12M forward SOTP basis (8x EV/EBITDA for US / Other Regulated, 6x for Emerging Markets, and 5x for Institutional).

6 August 2020 CDH delivered in-line performance for 1QFY21. The decline in domestic formulation (DF) and consumer healthcare was more than offset by lower operating cost. CDH is progressing well to build Injectable/vaccine/biosimilars as additional levers of growth for the next 2-3 years. We have raised our earnings estimates for FY21/FY22E by 10%/9% to reflect better operating leverage/growth outlook for DF. We continue to value CDH at 21x 12M forward earnings to arrive at TP of INR460. We remain positive on CDH due to robust ANDA pipeline (including injectables/transdermals), renewed strategy in DF and completion of remediation measures at Moraiya. Maintain 1QFY21 sales at INRINR36.4b (v/s est. Sales growth was largely led by (a) US sales (45% of sales), up 19% YoY to INR16.2b, (b) LATAM/EM revenues (7% of sales), up 8% YoY to INR2.4b, and (c) API revenues (4% of sales), up 89% YoY. India revenue (41% of sales) comprising of DF, consumer and animal health was down 11% YoY to INR14.

54% volume decline in 1Q and gradual recovery in Industrial paints demand paints given success of its economy segment product soldier, higher dependence on tier2/3 cities and low base from 2Q (Lockdown in Kashmir last year, 60-70% market share). Although recovery in auto paints will be gradual...

from Hypermarts to Kirana and Ecom 2) slow pick-up in apparel and general merchandise 3) setback to Premiumisation as upper middle class cuts store visits 4) volatility due to localized lockdowns from time to time and 5) lower store openings in current year as Covid 19 has hit construction for 4 months. We assume addition of 20/40 stores in FY21/FY22 and decline of 6% in Bills/store/day and 4% in average bill value. D'Mart trades at 62xFY23 EPS. D'Mart is also experiencing with a convenience store in D'Mart Ready,...

mid-cap space due to 1) pure domestic play with insignificant regulatory and currency risk, 2) contribution of chronic/sub-chronic products with steady demand structure, 3) strong balance sheet and 4) less dependenace on Chinese API and KSM. We maintain BUY recommendation and retain TP of Rs576 based on PE 21x of FY22E. Gross margin and employee cost brings EBITDAM lower: Revenue grew 6% YoY to Rs 2.8bn (PLe: Rs2.8bn), while EBITDA declined 3% YoY to Rs989m (PLe: Rs1.0bn). Gross margin was 300bps lower YoY at 80% due to launch of OTC...

Given the cost optimization plans, improvement in digital services business, and launch of JioMart, outlook looks promising. We upgrade our rating to BUY with target price of Rs. 2,464 based on SOTP. Topline tumbles on lower throughput and pricing RIL recorded total consolidated revenue of Rs. 91,238cr (-43.8% YoY), on account of decline in Refining, Petrochemicals, and Retail businesses. Refining fell 54.1% YoY to Rs. 46,642cr due to decline in Brent crude oil (-57.6% YoY) and refinery throughput (5.1% YoY). Petrochemicals business declined 33.0% YoY on account of lower price realizations of feedstocks due to COVID-19 lockdown. The segment EBITDA declined...

We upgrade our rating to Accumulate given capacity expansion, launch of new products and superior margin profile. Q1FY21 revenue declined by 20% YoY led lower contribution from ATBS business due to slowdown in oil & Gas sector. Despite sharp fall in revenues, profitability was cushioned by higher contribution from superior margin IBB business. Going ahead, revenue growth is expected pick-up in H2FY21E led by...

Astral Poly Technik's (ASTRA) Q1FY21 consolidated revenue declined at a slower pace than expected, posting 33% YoY contraction as the lockdown induced a 31% drop in pipe volumes.

5 August 2020 Jyothy Laboratories (JYL) 1QFY21 results were above our low expectations. Sales growth was up only 4%. Ad-spend reduction of 40% (much higher than peers) drove EBITDA margin beat, despite gross margin being much below expectations. Despite being much smaller than its peers under our coverage, the company has reported mere 2.5% sales CAGR over the past 5 years and neither the management commentary for Jul20, rest of the year or subsequent years indicates a substantial revival to steady-state double-digit sales growth. Double-digit sales growth in FY21E is only because of low base due to 24% sales decline seen in 4QFY20. 1QFY21 standalone net sales grew 4.1% YoY to INR4.3b (v/s est. EBITDA grew 19.4% YoY to INR782m (v/s est.