Sell

HDFC Life's overall APE de-grew by 30% YoY as FYP and Single Premiums de-grew 23%YoY/38%YoY respectively. Product mix on Ind. APE basis continued its bias in Par segment from NPar (slowed SP product on higher base) which also has drag on margins being maintained at 24.3% (flat QoQ) as individual protection business still was better. Structurally growth pull back will be stronger with better positioning on protection, digital and tech led adoption. Although, in medium term slower attachment rates in credit life, on-par peer positioning in term insurance rates and lower room for risks on...

Margins of 24.4% in Q1FY21 (v/s expectation of 24.8%) was led by reiterated mix focus towards non-linked savings & protection (benefit of pricing may not sustain current levels. We had downgraded to Reduce in our preview...

The renewed lockdown in V-Mart Retail's (VMART) key markets of Bihar and UP (56% of total stores) will retard demand recovery.

Due to limited revenue visibility about the company for the future and lack of information and significant deviation from the expectation we decided to drop Banco Products ltd from our coverage. In addition auto companies are shifting towards manufacturing new generation vehicle. We believe Banco, which is largely depended on the combustion engine is likely to get hit on their outlook. The is evident from the company's...

In Q1FY21, Gross revenue rose 1.3% YoY, primarily helped by favorable Forex changes. On Constant Currency (CC) basis, IT services revenue declined 4.4% YoY on subdued business activities across verticals such...

projects, 83% of which lie under morat (b) 13% micro finance book that witnessed pull back in center meetings, albeit morat down to 48% from 100% in Mar'20 (c) 40% infra business segment that continues to experience underlying pressures (tepid traffic drivers, weakened supply chain and inconsistent labor availability). While moratorium today is masking the de facto asset quality stress, morat delinquencies cannot be ruled out. We, therefore, build in higher NPA (6.5%+) and elevated credit costs (150-22bps+) over FY21-22E. Consequently, RoEs settle to structurally lower levels of ~10%...

Background: Mindtree is a global technology consulting and services company, helping enterprises marry scale with agility to achieve competitive advantage. Born digital, in 1999 and now a Larsen & Toubro Group Company, Mindtree applies its deep domain knowledge to 290+ enterprise client engagements to break down silos, make sense of digital complexity and bring new initiatives to market faster. We enable IT to move at the speed of business, leveraging emerging technologies and the efficiencies of Continuous Delivery to spur business innovation. Operating in more than 15 countries across the world, we're consistently regarded as one of...

We maintain our Reduce rating as we consider stock valuations expensive against the downturn of discretionary spends & top client concentration (30% of revenues). Our EPS estimates are upgraded on account on better margin performance, change in deprecation policy & higher other income. We value MTCL at 14X Sep-22 EPS of Rs. 63.5 to arrive at changed TP of Rs.888. MTCL is trading at 16X/15X FY22/23E earnings of Rs.61/66 respectively. Mindtree reported revenue de-growth of 9.1% in QoQ vs our estimates of 7.1% CC decline. Volumes were up 4% YoY. Pricing was down 5.2% YoY, mainly...

We upgrade Wipro to Buy from Sell as they are managing costs well, delivering solid cash flows, new CEO, potential buyback & inexpensive valuations. Wipro has surprised us consistently with margin defense. We have raised our earnings estimates by 12%/9% for FY22E/23E led my margin upgrade & now...

Bata generates ~50% of the revenues from premium category footwears (MRP> Rs 1000+) and largely operates through its wide retail network contributing ~84% to the revenues. We, Initiate coverage with SELL rating on the stock with a target price of Rs 1150 as we value the stock at 40x P/E on its FY23