Sell

Inflation and IIP: Industrial activity rebounds, inflation eases. Pidilite Industries: Higher RM cost to crimp margins; maintain SELL. Apollo Tyres: Margin headwinds ahead; maintain SELL

Pidilite Industries (PIDI) reported consolidated Q4FY21 revenue growth of 45% YoY on a tepid base, with a 45%/26% rise in standalone C&B;/B2B volumes.

Apollo Tyres (APTY) delivered an operational beat in Q4FY21 led by better margins in European operation.

impact of second COVID wave needs close monitoring as slippages have been high. High provisions and utilization of COVID provisions of Rs21.0bn have improved coverage ratio, although buffer is now low at 37bps of loans (created in Q4FY21). Delta from past cut in SA rates and improving mix of retail both on liabilities & assets has led to NIM moving to 5.0%, while recent SA rate cuts should help lower funding cost should help improving earnings profile. We value the bank at 1.3x (from 1.0x) FY23E ABV. Capital raising &...

DCB Bank's (DCBB) Q4FY21 PAT of Rs 0.8bn (+13% YoY) beat our estimate on below-expected provisions.

As expected, BLSTR posted a weak 4QFY21 revenue, with a flat two-year revenue CAGR. EBITDA came in below our estimate as rising commodity costs, coupled with an increase in competitive intensity, weighed on margin. The commentary on RAC industry trends suggests that events like a lockdown in Apr'21 (and the ongoing extension into May'21), rising commodity costs, and higher competitive intensity poses a risk to earnings in FY22. We cut our FY22E/FY23E EPS estimate by 17%/6%. At the CMP, the UCP business of BLSTR is trading at 50x FY23E EPS, thus indicating an...

As expected, BLSTR posted a weak 4QFY21 revenue, with a flat two-year revenue CAGR. EBITDA came in below our estimate as rising commodity costs, coupled with an increase in competitive intensity, weighed on margin. The commentary on RAC industry trends suggests that events like a lockdown in Apr'21 (and the ongoing extension into May'21), rising commodity costs, and higher competitive intensity poses a risk to earnings in FY22. We cut our FY22E/FY23E EPS estimate by 17%/6%. At the CMP, the UCP business of BLSTR is trading at 50x FY23E EPS, thus indicating an...

As expected, BLSTR posted a weak 4QFY21 revenue, with a flat two-year revenue CAGR. EBITDA came in below our estimate as rising commodity costs, coupled with an increase in competitive intensity, weighed on margin. The commentary on RAC industry trends suggests that events like a lockdown in Apr'21 (and the ongoing extension into May'21), rising commodity costs, and higher competitive intensity poses a risk to earnings in FY22. We cut our FY22E/FY23E EPS estimate by 17%/6%. At the CMP, the UCP business of BLSTR is trading at 50x FY23E EPS, thus indicating an...

Hero MotoCorp's (HMCL) Q4FY21 operating performance was marginally ahead of our estimates due to an above-expected gross margin.

COFORGE: Bumper FY22 guidance; reiterate BUY. CEAT: Rising raw material costs to impact earnings; SELL