Sell

Outlook and Valuation: We value INFOE at Rs. 2092 based on SOTP. While the standalone business is valued at a 3-yr historical average FY22E PE of 64x, Policybazaar and Zomato are valued based on their last round of funding.

Info Edge (INFOE) posted muted YoY revenue growth of 10% in Q4FY20, the lowest in the last 12 quarters.

Exuberance most likely to fizzle out in the near-term. GNP rallied 27% on Favipiravir's (Fabiflu) approval by DGCI (Drug Controller General of India) for treating COVID-19 patients. We believe this reaction has an irrational exuberance and will likely fizzle out in the near-term as 1) Cipla, Strides and Natco/Laurus approval will follow soon leading to a cut-throat...

Valuation and Risks:A cash rich and clean balance sheet, management with excellent track record and high brand recognition will help sustain valuations.

operating costs (85%QoQ/58%YoY). While it's COVID assessment on asset quality is uncertain, yet 75% developer loans & 35% LAP fall under morat and weak collections stands worrisome. Moreover, LICHF existing asset quality stands appalling led by 17% developer NPA, 1.8% individual book NPAs and ~2% credit costs. FY20 witnessed subdued loan traction (2%CAGR) and doubling of absolute NPAs. Against this backdrop, we expect weak loan growth cycle (6-9%), imminent NIM pressures (1.4-1.7%) and elevated NPAs (3-3.5%) for FY21-22E. Our EPS estimates do not change materially as we...

Q4FY20 earnings were higher than our estimate considering 1) US growth of 5% QoQ (PLe 7% decline QoQ) due to stock-up and seasonality effect of Tamiflu 2) Consumer Wellness reported a growth of 21% YoY, while adjusted growth would have been 10%YoY. We change our rating to REDUCE (earlier SELL) and derive a new TP of Rs329 (Rs263) based on 18x PE (earlier 15x) of FY22E. We upgrade CDH on the back of 1) improved guidance for US market led by new products 2) biosimilar launch in India and EM's 3) resolution of...

We initiate coverage on Astral Polytechnik with a SELL recommendation and price target of Rs 758/-. India's Real Estate (esp. residential) was struggling prior to Covid-19 and has been further pushed to brink due to Covid-19 induced circumstances, viz., migration of labourers

Background: City Union Bank (CUB) among the smaller-sized banks in the private sector space operates a network of 700 branches. With about 2/3rds of its branches located in Tamil Nadu, the bank's business is largely skewed towards the Southern India. Majority of its business comes from branches located in South India. CUB has a significant chunk of its branches in urban and semi-urban areas. With no identifiable promoters CUB is run by a team of professionals. A slew of...

Background: Vinati Organics Limited (VOL) was established in 1989 to manufacture specialty organic chemicals. It has since grown to become the world's largest manufacturer of IBB & ATBS and India's largest manufacturer of IB & HP MTBE. The company's products are exported to customers in countries across Europe, America, and Asia. Competitive edge in niche specialty chemicals Cost leadership & scale economies in IBB and technological entry barrier in ATBS. The company started with a small capacity of 1,000 TPA and gradually expanded to 26,000 TPA today for its ATBS production, capturing 60% of the market share. The company also commands more than 65% market share in the world for IBB. With consistent investments in technology and...

Pidilite Industries' (PIDI) consolidated Q4FY20 revenue declined 6% YoY as volumes slipped 3% in the domestic consumer & bazaar (CBP) segment.