Sell

RE's domestic volumes declined 5% yoy in Q3, led by declines in major states such as Tamil Nadu (-37%), Kerala (-24%), Gujarat (-25%), Maharashtra (-15%), Karnataka (-9%), and Andhra Pradesh (-11%). The number of states witnessing a decline has increased...

Severe Competition in the south had its toll on the operating performanceof the company: The cement sales in the current quarter was at 13.16 Bn ascompared to 12.13 Bn in last year's quarter, registering growth of around 8.5% and the overall volume stood at 29.58 lakh tons for the quarter, as compared to 27.26 lakh tons.

Weakness to Persist till H2FY20E: Volumes and realizations continue to reduce on account of oversupply. Denim volumes stood at 17.03 Mn at realisation of Rs. 122/metre in Q3FY19 vs 17.26 Mn atRs. 133/metre in the corresponding period in the last fiscal.

mix from ROW markets and API sales. The new ANDA launches, favourable forex and steady growth in India formulations kept EBITDA flat despite price erosion of its US portfolio by 8%. The forex loss of Rs1.3bn have impacted PAT to 72% QoQ decline in Q3FY19. Overall GNP's revenues were marginally better than expected considering the benefits of key launches (gWelchol, gVagifem, Tacrolimus, gNitrostat, gMupirocin) in US and better traction in India. The management guided for...

Bharat Forge (BHFC) reported standalone revenues of Rs 16.9bn (+22% YoY) in Q3FY19, led by a muted 3% rise in tonnage volumes and above-expected realisations (+18%). EBITDA/adj. PAT grew 17%/24% YoY to Rs 4.9bn/Rs 2.8bn. In our view, the buoyant growth phase in CVs is ebbing in India and the US, with a bleak demand environment in Europe as well we thus pare FY19FY21E earnings by 11-16% and lower our target P/E from 25x to 17x. On...

We maintain our SELL rating on COAL. COALs Revenue/EBITDA/PAT of Rs 250.5/67.9/ 45.7bn were well ahead of street estimates of Rs 238.2/50.1/38.1bn, driven by 1) good FSA realization at Rs 1,334/t (+2% q/q, +13% y/y) 2) strong e-auction realization at Rs 2,892/t (+10% q/q, +43% y/y & 113% premium to FSA price vs 98/69% in 2QFY19/3QFY18) 3) in-line costs 4) operating leverage due to higher sales volume at 154 mt (+12% q/q).

Margin Sustainability Persists: During Q3FY19, Endurance Technologies Ltd (ETL's) consolidated sales increasedby 17.8% YoY to Rs. 18.1 bn. Its EBITDA margins however declined by 80 bps YoY to 14%.

Entry into Moderating Growth Era: Eicher Motors (EICHER) Q3FY19 results were better than our expectations. TheCompany has been witnessing volume growth slowdown in the recent past on account of moderate saturation in the premium bike market in India coupled with high base effect

Bayer CropScience reported 29% yoy revenue growth to Rs6.2bn in Q3FY19, which was above our and consensus estimates. Despite overall domestic remaining under stress the performance was driven by rice, fruits and vegetable segments. Gross margins improved by 130bps yoy to 42% owing to better product mix and inventory gains. EBITDA margin expanded 280bps yoy to 7.5% vs. our estimates of 5.7%....