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TVS Motors (TVS) is the third largest two- wheeler manufacturer in India with market share of 14.2% in FY19. Q4FY19 revenue grew by 9.4%YoY driven by marginal price hike of 0.4% and increase in export sales(+22%YoY). Volume for the quarter came at 2%YoY, largely due to lower domestic demand. EBITDA margin declined by 40bps to 7% (our estimate were 7.6%)...

Kansai's results were lower than our estimates. Revenue rose a mere 4.5% YoY to `11.5bn subdued performance after seven quarters of double digit growth. The decorative segment volume growth was in high single digit, but industrial segment fell 5% due to automobile industry slowdown. Given continued pressure in auto sales volume, we believe the industrial segment will continue to be impacted. We have revised our FY20E and FY21E revenue estimates to factor in lower growth in the automotive business....

Yes Bank is India's fourth largest private sector Bank. The bank provides a range of services such as Corporate, Retail & SME Banking franchise, with a comprehensive product suite of Financial Markets, Investment Banking, Corporate Finance, Branch Banking, Business and Transaction...

Carborundum Universal (CUMI) Q4 and FY19 earnings were in-line with our estimates.

Slowdown in key automotive clients impacts performance IPCL predominantly caters to auto OEMs. The company derives ~80% revenue from the automotive sector wherein it provides casting products such as gear shifter fork, pre combustion chamber, etc. Generally, revenue contribution by sub-segment involves passenger vehicles (40%), commercial vehicles (40%), two-wheelers and tractors contribute (20%). Maruti Suzuki is the company's largest client. A slowdown and uncertain growth among leading auto OEM manufacturers over the next two to three...

Margins remain healthy on account of better product mix Castrol's raw material cost (base oil) are dependent on the movement of crude oil prices and rupee against US dollar. During the past few months, the company took two price hikes, which led to an increase in net realisations to | 193.7 crore vs. | 180 per litre YoY. As a result, gross margins increased and came in at | 101.5/litre. However, the recent upward trajectory in crude oil prices will escalate raw material costs. On account of the same and relatively weak product mix, we expect gross margins at | 100.6 per litre...

Steady replacement market to ensure healthy volume growth! The domestic battery market is a duopoly in nature with Exide and Amara Raja cornering lion's share of market. Typically in the battery segment, in the auto space which forms bulk of sales (~80%), the battery players realise ~40-50% of battery demand from auto OEMs and the rest i.e. ~50-60% from the replacement market. Given the life of battery that is typically ~4 years, battery players realise steady replacement demand growth amounting to ~10% which will help them traverse the challenging times at auto OEMs...

TVS motors (TVSL) Q4FY19 results were below our and consensus estimates on operating level. EBITDA margin for the quarter stood at 7.0% which was below our and consensus estimates of 8.0% and 7.7% respectively mainly on account of high RM cost. We cut our volume and revenue estimates by 1.5% each for FY20E factoring slower growth for 2W in H1FY20 and introduce FY21 estimates. We have built in revenue/earning CAGR of 14% and 21% over FY19-FY21E respectively with EBITDA margin of ~8.4%. We maintain our REDUCE rating and change our TP to Rs430 (earlier Rs480). We reduce our target multiple and value the company at 21x (earlier 23x) on...

Container Corp of India's (CCRI) Q4FY19 results beat expectations. Strong realisation growth (9% YoY) negated the impact of sedate volumes (2.9% YoY), driving sturdy revenue growth (ex-SEIS) of 12.4% YoY to Rs 17.5bn (est. Rs 16.8bn). EBITDA margin expanded 153bps YoY to 21.9% (est. 21.3%); PAT grew at a strong 21% YoY. We raise FY20/FY21 EBITDA estimates by ~7% each but the impact on earnings is negated by lower other income and...

Hard Transition, Long Time for Capital Raise. Downgrade to Sell The bank reported a loss as higher provision on early recognition of stressed assets led to a rise in credit cost. The new MD, Mr. Ravneet Gill appears to be poised to change the DNA of the bank and adopt his MNC experiences. The bank is likely slowing the corporate asset growth, due to capital constraints, and is realigning corporate products. The bank has also aggressively recognized stressed assets and is likely to continue to assess losses based on time value erosion. The bank is further likely to invest in...