Sell

We begin coverage on Info Edge (INFOE) with SELL and a Mar'21 TP of Rs 2,080.

Net profit was down 34.5% YoY as other expenses included a one-time provision of 15 cr for bad debts The launch of Revlimid will be dependent on the court trial that will take place in Canada during the month of March...

FDA continues to maintain zero tolerance towards injectable units Indian generics ranked 2nd only after US for non-compliance issues of facilities by FDA. With the regulators focus towards approving more generics, Indian majors were short of compliance that led to missed opportunity of launching day-one generics and specialty products in CY19. With USFDA issued WL in CY19 to the Indian majors, the track record of achieving compliance in injectable plant were in shambles as work culture in sterile plant lacked training and integrity. The resolution might take longer than its...

The RBI and government of India have superseded Yes Bank's (YES) board and placed the bank under moratorium from 5 Mar 2020.

Stressed asset quality remains cause for concern Absolute GNPA and NNPA were at | 17134 crore and | 9757 crore, respectively. Its GNPA already surged 238 bps QoQ in Q2 to 7.39% while NNPA ratio had surged 144 bps QoQ to 4.35%. The GNPA and NNPA ratios can go above 10-11% soon as the risk in BBB/BB and below books is estimated to be closer to | 30000-40000 crore. If...

Yes Bank management was unable to raise capital to address its weak financial position. In anticipation of possible trigger of bond covenant and deposit withdrawals. RBI has taken control of the board for the next 30 days from 5th March to 3rd April with restrictions on operations. Shri Prashant Kumar, ex-DMD and CFO of State Bank of India has...

Better realization in cement; Weak power performance Shree Cement Limited provides building materials. The company manufactures and sells cement and cement products in India. The company currently operates with a total cement capacity of 44.4mpta of which...

While volumes continue to increase deteriorating mix, and increased competition is expected to keep yields down. Distribution revenues have bottomed out. ISEC is rapidly building loan assets which will drive earnings in the near term. All the above, along with new initiatives and cost control will drive earnings at FY20-22E CAGR of 17.9%. Our rating on ISEC remains a SELL, despite us raising target multiple to 18x (PEG=1), increasing our TP to Rs 435. Our TP implies a FY19-31E APAT CAGR of 17.3%. Risks: Uptick in equity markets coupled with increased retail participation. We attended ISECs sell side analyst day and were impressed by the strong client franchise, innovations and focus on adding value propositions (apart from pricing) for customers. While we appreciate the fundamental strength of ISECs business model, we believe valuations at FY21E/22E P/E of 23.5/20.8x are stretched. We rate ISEC a SELL with TP of Rs 435 (18x FY22E EPS).

Despite a strong order book in EMP segment, we remain cautious on company's near-term outlook owing to the current macro environment. Hence, we reiterate our REDUCE rating on the stock with a roll forward target price of Rs. 653 based on 32x FY22E adj. EPS. Weak demand continues to put pressure on topline and margins Tepid economic growth and weak consumer demand slowed down company's growth. Q3FY20 revenue remained flat at Rs. 1,487cr (+0.2% YoY). EBITDA fell 15.7% YoY to Rs. 98cr, as EBITDA margin contracted by 120bps YoY due to higher employee benefit...

Rane Holding Limited (RHL) is holding company of Rane Group. Founded in 1929; Headquartered in Chennai, India. It has strategic investments in four subsidiary companies, three joint venture companies and one associate company. The company serves a variety of industry segments: Passenger vehicles, Commercial vehicles, Farm tractors, and two wheelers, Three Wheelers, Railways and Stationary Engines. It manufactures Steering and Suspension system, Friction materials, Valve train components, Occupant safety system and Die-casting products. The company also has presence in the other critical and safety components,...