Sell

Despite a soft base, V-Mart Retail (VMART) reported weak 6% YoY Q4FY21 revenue growth due to sustained Covid-19 headwinds.

We increase our earnings estimates by 3.0/3.3% for FY22E/23E as we increase increased traction from launch of key drugs in US generics and higher Favipiravir sales in India coupled with second wave of COVID-19. 4QFY21...

Considering the present economic activity and demand scenario, we expect the business could face impact from local lockdowns in the coming quarter. Company's ability to manage cost inflation through price hikes, without affecting demand, needs to be closely monitored. The stock is currently trading at expensive valuation. Considering nearterm uncertainties, we maintain our REDUCE rating on the stock with a revised target price of Rs. 696 based on 60x FY23E adj. EPS. Slowdown in demand recovery affects sequential topline growth Berger Paints' Q4FY21 consolidated revenue declined 4.3% QoQ on slow pace of...

Background: Berger Paints is the second largest decorative paint company in India. The Company operates seven manufacturing facilities spread across India, and four overseas manufacturing facilities. The company has second largest distribution network of ~11,500 active dealers and ~12,000 tinting machines. Berger has a strong presence in East and North India, which accounts for 60% of its distribution network while South & West India accounts for 40% of distribution network. Company derives ~80% of revenue from decorative paints and the rest from industrial paints of which Automotives accounts for 8%, powder coating accounts for 2%...

We have revised loan growth downwards and built in higher credit costs in FY22-23E. We downgrade the stock to a Sell from a Buy with a target of Rs 60/share (0.25x FY23E ABV).

We revise our rating from SELL to HOLD and upgrade our TP to Rs. 2,450 (Rs 2,350 earlier), resulting in a downside of 6% from current levels.

Eicher Motors (EIM) reported in-line Q4FY21 standalone revenue of Rs 29bn, a 22% EBITDA margin and adj. PAT of Rs 4.7bn.

Mold-tek packaging's (MPL) Q4FY21 result was better than our estimates on key parameters. Strong sales volume growth and higher NSR (on account of increased raw material prices) supported net sales, while higher share of IML products in total volume led to EBITDA margin expansion. Net sales increased by 51.2% YoY to Rs1,610mn, while EBITDA came in at Rs320mn, higher by 75% YoY. The company reported net profit of Rs181mn, growth of 106.1% over Q4FY20. The management remained confident to keep the earnings growth momentum once pandemic situation comes under control. Second wave of Covid-19 has dented product off-take owing to statewide lockdown,...

EBITDA margin expanded by 406bps YoY to 8.9% due to favourable sales mix, cost rationalisation & operating leverage. Order inflow grew by 57% YoY in Q4FY21 largely due to low base and fresh orders received in Energy segment, while order...

Cummins India (KKC)'s 4QFY21 revenue growth was weak, in line with expectations. It increased 18% YoY on a weak base (4QFY20: -22%). Domestic revenue was up ~26% YoY, while exports remained sluggish (flat YoY). However, persistent cost-cutting measures (employee cost down 5% YoY and other expenses down 30% YoY) resulted in EBITDA margins of 13.4%. Adj. PAT stood 53% higher YoY and was 19% above our estimate, led by higher-than-estimated other income. Revenue normalization is taking longer than expected (in line with our...