Sell

We highlight that while long term target is attractive, the fibre pricing weakness persists. Moreover, we would await meaningful traction in demand before turning constructive. Post ~40% run up since our last update, we downgrade our rating to REDUCE (vs. HOLD, earlier). We value...

Bajaj Auto (BJAUT) Q1FY21 result was above our and consensus estimates at all parameters. EBITDA margin for the quarter stood at 13.3% vs our and consensus estimates of 4.4% and 10.6% respectively on account of lower operating expenses. We expect domestic 2W/3W industry to see a double digit decline in FY21 driven primarily by adverse impact of the COVID-19 outbreak on economic growth and discretionary spending. However stronger recovery in export market for 2W/3W segment would help BJAUT to partially mitigate the current slowdown in domestic market. We cut our volume estimates for FY21/FY22 by 5% each factoring the extended lockdown in certain...

The company has moved ahead with various transformational initiatives which it had embarked on over the last few years. Through a reoriented marketing strategy, it is shifting gears in the non-south markets as well as preparing for the Ecom channel. It has plans to expand its presence in the non-South region by enhancing distribution network and brand visibility. Its A&P; thrust will be on non-south markets, where it expects to gain share. Its product launches also get transformed. Typically, product introductions are made in the Kerala market followed by the other...

Valuation and Risks: We upgrade our revenues by 3.2% / 3.3% for FY21E/FY22E at Rs 52 bn / Rs 56 bn respectively due to upgrade in US, ROW and API business.

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%...