Sell

shocks, we build in weak collection trends and higher provisions on rural & retail business side. Against this backdrop, we incorporate subdued growth (4-12%), high 6.5% NPA translating into structurally lower RoEs of 7% by...

While concerns about the travel & transport vertical (<5% revenue share for tier-I India IT) are at the forefront, we believe retail the second largest vertical with 14% share will be the worst hit for India IT services.

30% in red zone) should further weigh down on asset quality and earnings over FY21-22. Consequently, GNPA & credit costs estimates stand marginally tweaked to (7-8% vs 7.5% earlier and 2.4%+ vs 2.3% earlier resp.) prompting to trim EPS estimates by 2-8% over FY21-22E. With return profile (RoE: 9%/RoA:1.2%) offering no respite, we reiterate REDUCE rating with SoTP...

CIPLA's Adj. Revenue was Rs43bn (PLe Rs39.9bn) flat YoY and growth of 2% QoQ while EBITDA declined 32% YoY and 10% QoQ to Rs5.6bn (PLe Rs5.3bn). Adj. EBITDA margin was 13% (PLe 13.2%) vs. 19.4% YoY and 14.7% QoQ. Domestic biz continued to lead for CIPLA with 12% YoY growth while export markets performance and remediation of Goa facility (costing Rs430-450mn i.e. 1% of revenue) impacted EBITDA margin (showing a decline of 200bps...

Accelya Solution (Accelya) reported poor results on profitability front. Revenues were flat at | 113.8 crore while EBITDA margins declined 336 bps QoQ to 36.5% leading to an overall decline of 8.1% QoQ in rupee terms. In addition, profit before tax declined 12.2% QoQ, 20.6% YoY to | 32.2 crore. PAT declined 12.4% QoQ, 10.6% YoY to | 23.7 crore. We believe the key reason for this poor profitability performance is the company's exposure to travel vertical (especially exposure to airlines) that has been severely impacted due to Covid-19 crisis. The company expects Q4FY20E (June...

Best case estimates peg lower double digit decline in FY20! Covid-19 is a black swan event, which has brought the entire economy to a standstill. It was a further blow to the automobile sector, which was already struggling with weak consumer sentiment with domestic sales volume down 18% YoY in FY20. With movement of people highly restricted as well as income levels taking a hit, car purchase as a discretionary spend is expected to take a backseat. A caveat, however, is the initial signs of people traversing from shared mobility/public transport to personal mobility. However, there...

Mphasis (MPHL) reported a satisfactory Q4 on the back of (1) 1.5% QoQ/11.1% YoY CC revenue growth, (2) stable 16.3% EBIT margins, and (3) healthy deal wins.

We recommended SELL on BAJAJ AUTO with a Target Price of Rs 2450, a downside of 9% from CMP and Stop Loss Rs 2785.

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