Data Integrity issues and repeat observations. With lower tolerance level of USFDA in dealing with non-compliance in injectable unit, we expect WL in near term though resolvable in 12-14 months. There could be lower offtake of partnership products in US from the plant due to those concerns though not...

The USFDA's warning letter (WL) on Mandideep plant identified a long list of Change in Estimates | Target | Reco activities to address the operational deficiencies. Besides, LPC has to...

sustained market share gains difficult. We believe increasing competitors focus on premium products in fans and lighting can drag sales growth. in Lloyd, benign input costs and peaked out expenses on distribution...

AT&T; deal; A showcase deal for the 5G Telco world? Tech Mahindra (TML) and AT&T; recently reached an agreement that would significantly expand the relationship between the two (details inside). Our understanding of the deal is that it involves modernization and migration of hundreds of applications in the Operations Support Systems (OSS) and Business Support Systems (BSS) areas (non-network reated) on to the cloud (likely Azure, Microsoft and AT&T; did a US$2bn deal in July 2019). This is expected to make AT&T; a more flexible organization and generate savings that can be re-invested in the US 5G network roll out that it is planning in 1H2020. Why did it go to TML? (1) TML has likely...

We reiterate SELL as (1) Margin pressures are expected to sustain given weak demand outlook and lower utilization levels (as new capacities come onstream). We are building in margins at 25.8/25.6% over FY20/21E vs. 29.6% in FY19 (2) While the launch of entry variants will improve footfalls in the current backdrop, we expect a delayed recovery in demand due to the ongoing downturn (3) VECV is impacted by aggressive discounting by the incumbents. Key Risks: Any reduction in GST rates. We met the management of Eicher Motors. Launch of entry level Bullet and roll out of 250 small format stores are the new strategies to revive volume growth under the leadership of Mr. Dasari. In light of the upcoming BSVI regulations, the emission related cost hikes will impact consumer affordability. Thus, an entry variant in these circumstances will drive customer footfalls. The market response/profitability of the new variants needs to be monitored. We reduce our FY20/21 estimates by ~10% to factor in the sluggish demand and roll forward our estimates. Reiterate SELL with a TP of Rs 14,245 (at 19x Sep21 EPS) as lifestyle segment demand remains challenged

Ujjivan Small Finance Bank, the wholly owned subsidiary of Ujjivan Financial Services Ltd. (USFL) serves over 47 lakh customers through 524 branches and 15,626 employees spread across 221 districts of 24 states in India with gross loan book size of Rs11,783cr. Also, it has about 474 full-service banking outlets with a deposit base of Rs7,956cr. The gross loan book has grown at 51% on a YoY basis to reach Rs11,783cr, with micro banking segment mix at 82% . The deposit base grew by 109% YoY, thus effectively covering 68%...

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,...

of FY20-21 by 0.9-1.3% given 1) 10- year low 1Q20 exit market share 2) 1Q tonnage volume growth of just 1.3% and 3) slowdown in toothpaste segment except naturals. However, Colgate is making a push for volumes led by 1) 30% increase in direct distribution 2) bringing family pack prices of Total closer to CDC and 3) more offers in bundled packs. Instead of being more...

Background: Balkrishna Industries (BIL) is focused solely on 'off-highway' tyres catering to agricultural & industrial segments. The company has a ~7% share of the global market. While OTR forms ~65% of the global market, for BIL, it only contributes ~33% to its revenue. The company has been undertaking various actions like setting up warehouses in markets in North America and Europe to be closer to the customer and have a just in time (JIT) system. The company sales to over 130...

Q1FY20 revenue rose 5.6% YoY Rs. 2,897cr, primarily led by revenue growth in Consumer products (+13.0% to Rs. 495cr) and Specialty products segment (+8.9% to Rs. 634cr). Basic chemistry products revenue witnessed muted growth of 1.3 % YoY to Rs. 1,946, impacted by lower production of soda ash in Mithapur. By geography, strong performance in US (+10.5% YoY to Rs. 845cr), Africa (+32.3% to Rs. 123cr) and India business (+4.2% to Rs. 1,031cr) offsets weak performance in UK region (-10.8% to Rs. 307cr). EBITDA margins surged 256bps YoY to 20.4% primarily with improved margins for BCP with better realizations for Soda ash and lower costs. The company...

Lupin Limited is a multinational pharmaceutical company based in Mumbai. The company specialises in branded and generic formulations, APIs and advanced drug delivery systems in the area of biotechnology. The company...

Topline netted for the content cost as pass through expense Dish TV posted Q1FY20 revenue of Rs. 926cr (vs. Rs. 1,656cr in Q1FY19). This quarter onwards, company started netting off the content cost from revenue to better reflect the new tariff regime. On comparable basis, revenue declined 7.7% YoY to Rs. 1,528cr. Subscriber revenue accounted for 89.2% of total revenue (-44.5% YoY to Rs. 826cr). Company continued to add subscribers with 209k net additions during the quarter with more than half of the net additions being HD subscribers (total subscriber base reaching 23.9mn). Management expects the subscriber revenue to pick up in the...

We reiterate our REDUCE rating on the stock with a revised target price of Rs. 345 based on 44x FY21E adj. EPS Protective coating, decorative business drive growth in Q1FY20 Q1FY20 revenue came in at Rs. 1,717cr versus Rs. 1,483cr for the same period last year (up 15.7% YoY). The growth was mainly driven by protective coatings business and decorative business owing to the price increase in FY19 and strong volume growth. This growth in volume was driven by aggressive distribution push in tier 2 and tier 3 towns. We expect double digit volume growth to continue in near future, on account of...

India Economic Outlook: Lower rates, liquidity to drive cyclical recovery. Plastic Products: Anti-dumping duty on CPVC Astral Poly a key beneficiary

India's finance ministry has imposed provisional anti-dumping duty (ADD) on CPVC resin/compounds imported from China and Korea for a period of six months starting 26 August.

CEO interaction takeaways: Navigating rough waters

Endurance Technologies Ltd is one of India's leading automotive component manufacturers with operations in India and Europe. It mainly caters to twoand three-wheeler OEMs in India and supplies aluminium casting products to four-wheeler OEMs in Europe. The company operates 16 plants in India, 9...

The company's GNPA reached Rs. 62,068 cr., and GNPA ratio deteriorated slightly in Q1FY20 (+66bps QoQ to 16.5%). NNPA ratio also witnessed similar weakness (+18bps QoQ to 5.8%). Capital adequacy ratio increased to 14.4% in Q1FY20 versus 11.4% in Q1FY19 and 14.2% in Q4FY19. Provision coverage ratio remained flat on QoQ basis,...

However, EBITDA margin improved by 84bps YoY to 12.2% led by lower material cost and drop in sub-contracting expenses. Order book now stands at Rs33,495cr (2.8x TTM revenue), however, projects worth Rs12,500cr is still constituting from AP region where company is facing issues with the state government....