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During Q1FY22, standalone revenue continued onto its growth trajectory rising 24.1% QoQ owing to higher sales achieved via its digital platform and partly aided by rising participation by the public in...

Background: JK Cements is one of the largest cement players in North India. It manufactures grey cement, white cement and white cement-based wall putty. Currently the grey cement capacity is 10.5MTPA. Domestic white cement capacity is 0.6MTPA (second only to UltraTech). The company also manufacturers putty and has an installed capacity of 0.7MTPA. The company also has plants in Fujairah (UAE) with an installed capacity of 0.6MTPA (white cement) and 1.02MTPA (grey cement) in a 90:10 JV with the Government of Fujairah. It has also expanded its grey cement capacity by 3 MTPA through two split grinding units (1.5 MTPA...

Business continues to be impacted due to the COVID pandemic with persisting partial lockdowns and granular demand curve recovery. Moreover, cost control still remains a challenge, as price hikes if any might negatively impact the demand. While uncertainties linger in the near-term, we believe, the stock is currently overpriced compared to its peers. Hence, we maintain our REDUCE rating on the stock with a revised target price of Rs. 698 based on 61x FY23E adj. EPS. Pressing topline upon subdued sequential growth...

Cummins India (KKC)'s 1QFY21 revenue came in at INR11.8b (2-yr CAGR: 6%) and was 12% ahead of our expectation. Adj. PAT came in at INR1.3b and was 8% ahead of our expectations. The demand outlook is strong, driven by a) the unlocking of the domestic economy and likely pent-up demand playing out for a few months, b) road...

Q1 revenue and gross margin beat our estimates but lower operating efficiency crimped profitability

Tax rate guided at 27-28% from 30% in FY22E. We see a near term challenging period for Lupin (LPC) and downgrade our recommendation to REDUCE' from Accumulate' due to delay in resolution of two key plants (Goa and Indore unit-2) as more than 50% of pending ANDAs...

Hikal posted revenue of INR 4,568mn with 29.5% YoY growth which was slightly below our estimate of INR 4,627mn on account of lower production days due to the unavailability of oxygen for industrial use. On segmental performance: The crop protection segment grew by 31% (YoY) to INR 1,827mn on the back of Increased sales volume of existing as well as new products. Pharmaceutical segment revenue surged by 28% to INR 2,741mn based on increased volumes of existing API Generics and CDMO products. EBITDA margin improved by 607 bps to 21%, (was 277bps above our estimate) supported by a favourable product mix. EBIT margin of the Crop protection segment improved by 532bps (YoY) with 40% (vs 43.6% in Q1FY21) contribution to overall EBIT. The pharmaceutical...

Consolidated Q1 revenue grew 121% YoY, rebounding from a tepid base

Q1 revenue declined 35% QoQ on weak volumes (-40%). Lower operating efficiency further pulled down profitability

JKLC reported Q1FY22 revenue growth of 49%YoY (-6.8%QoQ) supported by volume growth of 39%YoY along with 7% YoY growth in blended realisation and low base (21% in Q1FY21). Value added products including RMC revenue was Rs.78cr (Rs.95cr QoQ/ Rs.29cr YoY) and the company is targeting Rs.500cr from this segment. Given GoI's strong focus on infra & housing, we expect demand to pick up in H2FY22 despite near-term uncertainties due to Covid-19. Factoring better than expected volume...