Sell

Eicher Motors (EIM) reported in-line Q1FY21 revenue but dismal operating margins at 0.2%, primarily due to higher input costs and lower operating efficiencies.

Ashok Leyland's (AL) Q1FY21 performance was disappointing despite a strong boost to blended average realisations from BS-VI price upgrades.

eClerx (ECLX) reported a surprising operating margin beat in Q1FY21 backed by aggressive cost cuts.

Shree Cement (SRCM) Q1FY21 EBITDA was higher than our estimate. Beat in the number is driven by lower a) volume decline at -22% vs our est. of -35% and b) other expenses at Rs3.5bn vs est. of Rs4.4bn. But vis--vis the industry which has witnessed QoQ increase in the profitability (EBITDA/t), SRCM reported decline in EBITDA/t at Rs1460 (-10% QoQ). This is due to flat realization and higher freight cost at +10% QoQ. We have factored better than estimated number of Q1FY21 in full year estimate and revised EBITDA up by 12/11% for FY21/22E respectively. TP is revised to Rs19,903 (earlier Rs16,418). But retain REDUCE rating on the stock, as we understand SRCM...

Lupin Limited is a multi-national pharmaceutical company based in Mumbai. The company specializes in branded and generic formulations, API's and advanced drug delivery systems in the area of biotechnology. The...

Bata's Q1FY21 was largely impacted by extended lockdowns across the country till the first week of May and significant disturbances during the remaining period led to the contraction of revenue and Gross Margins for Bata India. Revenue for Q1FY21 declined by 85% YoY to Rs 135 cr

Post Covid-19, the domestic auto industry is expected to see gradual volume improvement, with rural-facing (tractors, motorcycles) and personal mobility enablers (passenger cars) expected to outpace CVs and public transport categories. Bosch expects the industry to take four to five years to return to peak FY19 volumes, pending affirmative policy intervention (GST cut, scrappage policy, etc.). While overall demand picture remains subdued for Bosch courtesy high exposure to CV space and dwindling presence of diesel powertrain in India, we expect it to outperform its OEM clients courtesy (1)...

SRCM reported Q1FY21 earnings marginally below our expectation due to higher costs. Company depicted strong maturity over last one and half year with tight discipline on volumes and prices in its North market. This is reflected in highest ever margins since FY09. However, we believe that margins have peaked-out as we see stiff competition from new capacities, weak demand outlook and increased likelihood of leakage on volumes...

V-Mart Retail (VMART) reported a below-expected Q1FY21 revenue plunged 83% YoY to Rs 781mn as SSSg dropped 85% in a lockdown-hit quarter.

Q1FY21 revenue de-grew sharply by ~85% YoY owing to lock-down in April & May, and nil production due to Covid-19 pandemic. Usually Q1 is the strongest quarter on account of high demand due to school openings. However, the schools are now closed due to lock-down. Despite gradual relaxation in lockdowns, prevailing uncertainties are impacting the discretionary demand. Currently BIL's ~85% stores are open and the company has achieved ~35-40% of the pre-Covid business levels as per management. To generate demand in the current scenario, BIL has launched two new products to suit work at home, strengthening E-commerce channel, rolled out two new...