Sell

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.

Page Industries Ltd is the exclusive licensee of JOCKEY International Inc. (USA) for manufacture, distribution and marketing of the brand Jockey' in India, Sri Lanka, Bangladesh, Nepal and UAE.

Initial recovery in demand to be pull based rather than push based. We cut HAVL's FY21/FY22 EPS by 13% and 7% given Covid-19 led disruption in demand especially in summer season products (Room AC, Air coolers) and longer recovery cycle in industrial products (industrial cables & switchgears, professional luminaries). We expect demand for HAVL's consumer portfolio to bounce back faster led by ECD segment, however B2B segments will remain a near term drag. Slump in switchgears and cables is likely to get...