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Mindtree reiterated its expectations of 1) stronger-than-industry growth rate along with improving profitability in the near term (3-5 years). Modest outlook despite exceptional Q1 performance, indicates likely growth moderation in the upcoming quarters. Within the next 10 years, Mindtree intends to become an IP-led organization. To achieve this, it has entered into partnerships with educational institutions, such as Stanford.to create monetizable IPs. We believe that these IPs will require upfront investments which would impact its profitability and cash-flows in near term. The company elaborated on various use cases and strategy in Digital, suggesting its...

Berger is the second biggest decorative paint company in the country. In Q1FY19, in the decorative segment, Berger reported 15% YoY volume growth. The decorative business constitutes around 80% of Berger's overall business and typically grows at 1.5x the GDP of the country. The current volume growth of...

Net interest income grew by 9.5% and PAT grew by 15% YoY in Q1FY19 mainly led by 17% YoY growth in loan book. NIM contracted by 23bps to 4.24% in Q1FY19 against 4.47% in Q1FY18 due to 93 bps decline in yield on advances. Deposit grew by 10% YoY in Q1FY19 in which CASA grew by 13%....

Although EBITDA grew impressively by ~23% YoY underpinned by benefits of price hike and operating leverage, expansion in margin was restricted to only 47 bps YoY owing to higher input cost. We factor consolidated revenue CAGR of 16% over FY18-20E driven by its capacity expansion, continued new product launches and aggressive network expansion. Despite improvement in capacity utilization, price hikes and benefit of operating...

Set for a retreat: We reiterate our SELL rating on the stock with reduced target price at Rs 1150 2.5x FY20 P/B(earlier Rs 1430 3.1x FY20 P/B). The stock trades at 57% premium to the long term average (~ 7 yrs P/B 1yr Fwd.) of ~ 2.3x and we believe is yet to factor in a relatively weaker return profile as we factor in deeper pressure on spreads, moderation in AUM growth and guarded optimism on the anticipated operating leverage.

Revenue Mix Worsens, Realization Improvement to Take Time: Denim contributed 60% of the total revenues, at Rs. 2168 Mn as of Q1FY19, vs 69%, in Q1FY18 and the sales of yarn and fabric continues to be higher, by 6% on YoY basis.

Mr M D Ranganathan resigns from the role of CFO after a stint of 18 years (3 years as CFO; term ends on Nov 16, 2018) to pursue opportunities in new areas. The hunt for the new CFO has begun and Mr Jayesh Sanghrajka (Deputy CFO) can be a possible candidate for the replacement. But, given Infosys' recent preferences, we cannot rule out the possibility of an external candidate. While no specific reason has been mentioned for Mr Ranganathan's untimely exit, we see following 3 possible factors that could have triggered this event: (1) Mr Ranganathan's wanted to pursue CEO's role, which was ruled out at Infosys post the appointment of Mr...

Low base effect, margins under pressure: Q1FY19 results came below our estimates. YoY revenue grew by 17.8% on the back of low base effect. However, Margin performance has disappointed, EBITDA margin is recorded at 7.3% vs our estimate of 10.4% owing to pressure from higher material costs (73.7%).

Improved growth & Healthy Margins: ESAB reported Q1 results above ourestimates. Q1FY19 earnings have witnessed a 61.5% YoY growth on the back of YoY revenue growth of 36.5% supported by an EBITDA growth of 65.4%.

Key products in US and price cuts in Japan impact revenues and profits: Lupin's revenues decreased by 0.4% YoY to Rs 38.5 bn in Q1FY19 lower than ourestimates of Rs 41.5 bn on the back of dismal performance in US market.Business from EMEA and India clocked decent growth, while US and LATAMshowed de-growth of 26% and 1% YoY respectively.