The USFDA has classified Sun Pharma's (SUNP) key formulation site Halol under OAI (official action indicated).

We will be reviewing our numbers and recommendations once we have a better understanding of the Covid-19 situation. ICICIGI: GDPI (ex-crop) increased 13.3% YoY to Rs 10.4bn. Growth momentum (ex crop) improved from -2.0/12% YoY seen in Dec-19/Jan-20. Health and Motor OD business reported growth (ahead of industry) of 12.4% and 12.7% respectively. FY20TD GDPI for ICICIGI stands at Rs 125.7bn (-7.5% YoY), with ex-crop GDPI is healthy at Rs 121.7bn (+13.9% YoY). We have a SELL on ICICIGI with a TP of Rs 1,170 (Mar-22E P/E of 26.0x and a P/ABV of 5.7x). ICICIGI is currently trading at a FY21/22E P/E of 26.6/22.3x and P/ABV of 4.9/4.0x. NIACL: GDPI grew to Rs 19.3bn, +24.2% YoY (ex. crop at Rs 18.6bn, +26.0% YoY) led by growth primarily in health business. Growth in retail business segments such as motor TP/health improved moderately to 20.7/30.3% YoY. FY20TD GDPI for NIACL stands at Rs 246.9bn (+15.6% YoY), ex-crop GDPI at Rs 219.1bn (+12.7% YoY). We have a SELL on NIACL with a TP of Rs 130 (0.65x Mar-22E ABV (less 5% discount for expected 10.4% supply). NIACL is currently trading at a FY21/22E P/E of 7.4/6.2x and P/ABV of 0.4/0.4x. Bajaj Allianz General Insurance (BAGIC): GDPI slipped by 1.4% YoY in Feb-20 to Rs 7.0bn, (ex-crop GDPI at Rs 6.6bn +1.6% YoY) led by sharp decline in crop business (-32.2% YoY). Motor OD GDPI declined 8.6% YoY vs. industry decline of 2.7% YoY. FY20TD GDPI for BAGIC stands at Rs 120.5bn (+20.1% YoY), while GDPI (ex-crop) is Rs 89.4bn...

Muted Volume Growth with Sequential Margin Contraction Mahanagar Gas (MAHGL) has reported a muted performance (albeit marginally above our estimates) in 3QFY20. While total sales volume grew by a muted 3% YoY (+2% QoQ) and EBITDA/ scm sequentially declined to Rs9.2 (vs. Rs9.9 in 2QFY20). Despite a muted growth in sales volume, its net sales decreased by 1% YoY and 5% QoQ to Rs7.4bn (2.3% below our estimate) mainly due to ~Rs2/scm cut in CNG & PNG prices during the quarter. Overall price realisation of Rs26.5/scm decreased by 7% YoY and 4% QoQ. Its gross profit grew by 6% YoY to Rs3.9bn on account of 8% YoY decline in cost of natural gas. EBITDA increased by 8% YoY (-5% QoQ) to Rs2.6bn (in line with...

ABB India has delivered a subdued performance in 4QCY19 with revenue declining by 1% YoY to Rs19.5bn owing to 20% lower revenue in industrial automation and significant decline in other segments. Revenue from Electrification and Motion segment grew by 11% and 7%, respectively. EBITDA margin fell by 390bps YoY to 7.1%, while EBITDA declined by 36% YoY to Rs1.4bn impacted by lower margin across segments. Adjusted PAT declined by 45% YoY to Rs1.1bn due to poor operating performance, while reported PAT declined by 81% YoY to Rs387mn, as the company has provided Rs697mn towards remeasurement of fixed assets and inventory for sale of solar inverter business. Order inflow declined by 16% YoY to Rs16bn in 4QCY19. The current order...

Dismal Performance with No Improvement in GRM; Maintain REDUCE Bharat Petroleum Corporation Ltd. (BPCL) has delivered a disappointing performance in 3QFY20. It reported GRM of US$3.23/bbl below ours/consensus estimates of US$4.1/bbl. Petrol/diesel sales volume grew by 5.9%/(1.6%) YoY lower than the industry growth rate of 7.1%/0.2%. It clearly implies that BPCL has lost market share to private retailers during the quarter. EBITDA increased by 248% YoY and 14% QoQ to Rs 27bn (6% below the consensus estimate/8% higher than our estimate) mainly due to 12% YoY growth in crude throughput of refineries, comparative higher YoY GRM and improved net marketing margin on diesel. Net profit grew by 155% YoY (down 26%...

In our midcap universe of 11 companies, we expect Tata Chemical, VA Tech Wabag, Emmbi Industries and Kanpur Plastipack to be the most impacted stocks given that all these have revenue contribution in excess of 30-35% from the said geographies. We have envisaged the impact of Coronavirus (Covid-19) on our midcap coverage universe based on the revenue contribution from both the US as...

In our midcap universe of 11 companies, we expect Tata Chemical, VA Tech Wabag, Emmbi Industries and Kanpur Plastipack to be the most impacted stocks given that all these have revenue contribution in excess of 30-35% from the said geographies. We have envisaged the impact of Coronavirus (Covid-19) on our midcap coverage universe based on the revenue contribution from both the US as...

In our midcap universe of 11 companies, we expect Tata Chemical, VA Tech Wabag, Emmbi Industries and Kanpur Plastipack to be the most impacted stocks given that all these have revenue contribution in excess of 30-35% from the said geographies. We have envisaged the impact of Coronavirus (Covid-19) on our midcap coverage universe based on the revenue contribution from both the US as...

In our midcap universe of 11 companies, we expect Tata Chemical, VA Tech Wabag, Emmbi Industries and Kanpur Plastipack to be the most impacted stocks given that all these have revenue contribution in excess of 30-35% from the said geographies. We have envisaged the impact of Coronavirus (Covid-19) on our midcap coverage universe based on the revenue contribution from both the US as...

Muted Volume Growth with Sequential Margin Contraction Mahanagar Gas (MAHGL) has reported a muted performance (albeit marginally above our estimates) in 3QFY20. While total sales volume grew by a muted 3% YoY (+2% QoQ) and EBITDA/ scm sequentially declined to Rs9.2 (vs. Rs9.9 in 2QFY20). Despite a muted growth in sales volume, its net sales decreased by 1% YoY and 5% QoQ to Rs7.4bn (2.3% below our estimate) mainly due to ~Rs2/scm cut in CNG & PNG prices during the quarter. Overall price realisation of Rs26.5/scm decreased by 7% YoY and 4% QoQ. Its gross profit grew by 6% YoY to Rs3.9bn on account of 8% YoY decline in cost of natural gas. EBITDA increased by 8% YoY (-5% QoQ) to Rs2.6bn (in line with...

ABB India has delivered a subdued performance in 4QCY19 with revenue declining by 1% YoY to Rs19.5bn owing to 20% lower revenue in industrial automation and significant decline in other segments. Revenue from Electrification and Motion segment grew by 11% and 7%, respectively. EBITDA margin fell by 390bps YoY to 7.1%, while EBITDA declined by 36% YoY to Rs1.4bn impacted by lower margin across segments. Adjusted PAT declined by 45% YoY to Rs1.1bn due to poor operating performance, while reported PAT declined by 81% YoY to Rs387mn, as the company has provided Rs697mn towards remeasurement of fixed assets and inventory for sale of solar inverter business. Order inflow declined by 16% YoY to Rs16bn in 4QCY19. The current order...

Dismal Performance with No Improvement in GRM; Maintain REDUCE Bharat Petroleum Corporation Ltd. (BPCL) has delivered a disappointing performance in 3QFY20. It reported GRM of US$3.23/bbl below ours/consensus estimates of US$4.1/bbl. Petrol/diesel sales volume grew by 5.9%/(1.6%) YoY lower than the industry growth rate of 7.1%/0.2%. It clearly implies that BPCL has lost market share to private retailers during the quarter. EBITDA increased by 248% YoY and 14% QoQ to Rs 27bn (6% below the consensus estimate/8% higher than our estimate) mainly due to 12% YoY growth in crude throughput of refineries, comparative higher YoY GRM and improved net marketing margin on diesel. Net profit grew by 155% YoY (down 26%...

Yes Bank reported its Q3FY20 numbers wherein the performance was impacted by a surge in slippages leading to a substantial erosion in networth (CET 1 at 0.6% as on December 2019). RBI has penned a restructuring plan entailing capital infusion of ~| 10000 crore by banking peers led by SBI. However, challenges in terms of liquidity (with moratorium being removed from March 18, 2020), asset quality, liability management and further capital for growth are expected to keep earnings under pressure. Huge dilutions are expected to keep growth in ABV muted....

We begin coverage on Info Edge (INFOE) with SELL and a Mar'21 TP of Rs 2,080.

Net profit was down 34.5% YoY as other expenses included a one-time provision of 15 cr for bad debts The launch of Revlimid will be dependent on the court trial that will take place in Canada during the month of March...

FDA continues to maintain zero tolerance towards injectable units Indian generics ranked 2nd only after US for non-compliance issues of facilities by FDA. With the regulators focus towards approving more generics, Indian majors were short of compliance that led to missed opportunity of launching day-one generics and specialty products in CY19. With USFDA issued WL in CY19 to the Indian majors, the track record of achieving compliance in injectable plant were in shambles as work culture in sterile plant lacked training and integrity. The resolution might take longer than its...

The RBI and government of India have superseded Yes Bank's (YES) board and placed the bank under moratorium from 5 Mar 2020.

Stressed asset quality remains cause for concern Absolute GNPA and NNPA were at | 17134 crore and | 9757 crore, respectively. Its GNPA already surged 238 bps QoQ in Q2 to 7.39% while NNPA ratio had surged 144 bps QoQ to 4.35%. The GNPA and NNPA ratios can go above 10-11% soon as the risk in BBB/BB and below books is estimated to be closer to | 30000-40000 crore. If...

Yes Bank management was unable to raise capital to address its weak financial position. In anticipation of possible trigger of bond covenant and deposit withdrawals. RBI has taken control of the board for the next 30 days from 5th March to 3rd April with restrictions on operations. Shri Prashant Kumar, ex-DMD and CFO of State Bank of India has...

Better realization in cement; Weak power performance Shree Cement Limited provides building materials. The company manufactures and sells cement and cement products in India. The company currently operates with a total cement capacity of 44.4mpta of which...