Sell

Key highlights from Reliance Industries' (RIL) Q1FY21 results: (a) EBITDA below estimates at Rs 169bn (21% YoY), (b) cyclicals mixed GRM at US$ 6.3/bbl outperformed estimates while petchem EBITDA at Rs 44bn (50% YoY) fell short, (c) retail EBITDA underperformed at Rs 10.8bn (47% YoY) whereas RJio EBITDA was higher at Rs 78bn (+59% YoY) on better ARPU.

performance on all fronts during 2QFY20. The reported profit jumped by 21% YoY to Rs2,550mn levels and could be considered as a one-off. The management claims demand recovery, but looks on account of a) lower effective tax rate of 17.8% in Q2FY20 vis--vis 31.0% in Q2FY19, b) better unsustainable as discretionary spends majorly depend on how Covid situation evolves, which...

Margin trajectory is seen improving, going forward. Courtesy its early switchover to BS-VI norms and demonstrated acceptance for those products, pricing environment is largely stable for the company. The management said discounting levels are lower QoQ thus far, and thus would support gross margins. Also, enhanced focus on cost controls (material and...

TVSL's reported mixed set of results where revenues came in marginally lower at Rs14.3bn (-68% YoY, PLe Rs15b). Gross margins too came in lower at 24% (-90bp YoY/QoQ), PLe 27%). However, led by tight cost control, EBITDA loss restricted at Rs488m (PLe loss of Rs649m) while net loss at...

IDFCFB's earnings performance of Rs935mn (PLe: Rs889mn) was broadly in line with expectations but was better on PPOP on back of better NII and treasury gains which helped to make an additional Rs3.75bn of COVID related provisions and now has Rs6bn (60bps of loans) of COVID provisions. Loans under moratorium has come off to 28% as compared to 45% in Q4FY20 (35% excl. Agri) with 23% in retail and 35% in wholesale book. Bank's retail drive continues to move ahead with strong SA growth of 24% QQ and Retail TDs up 10% QoQ replacing bulky deposits, while corporate book has continued...

We are increasing FY21,22,23 EPS estimates of CLGT by 8.2%, 5.7% and 4.8% led by 1) lower volume decline of 6% in toothpaste, and largely normal production now 2) Trade inventory buildup in June which continues in 2Q as well 3) superior on shelf availability relative to Patanjali, Vicco and other...

EBITDA margin declined by 50bps YoY to 11.1% on account of suboptimal revenue growth & weak operating performance. Q1 volume de-grew by 19% YoY, but we expect revival in revenue growth from H2FY21E, led by revival in rural & agri demand and gradual pick-up in business as Covid-19 related issues moderate. Though we are positive on long term growth outlook of SIL, the current premium valuation is not sustainable. We value SIL at P/E of...

IDFC First Bank's (IDFCFB) Q1FY21 PAT at Rs 0.9bn was aided by 38% YoY growth in NII, stable non-interest income and lower opex QoQ.

RBL Bank's (RBK) Q1FY21 PAT at Rs 1.4bn was below our estimate as non-interest income fell 30% YoY due to lower credit offtake, a conservative approach and reduced credit card income.

We are cutting CY20-23 EPS estimates of Nestle by 3.2% to 4.2% on disappointing performance in 2Q20. Although Nestle posted positive sales growth of 2.6% despite setback in vending business, constraints in production and distribution limited gains in a very strong quarter for food essentials. We were also surprised at GM pressure given benign prices of...