Sell

Apollo Tyres (APTY) delivered an operational beat in Q3FY21.

The Ramco Cements (TRCL) reported EBITDA below our and consensus FY20, FY13-FY15 and FY09-FY11. Secondly, TRCL's earnings profile would deteriorate with increasing exposure to low margin and volatile markets of AP/Telangana and East regions. Due to expensive valuations and presence in over supplied regions like South and East, we have negative outlook on the...

Background: RBL bank (RBL) came into operations in 1943 and was incorporated as a small, regional bank in Maharashtra with two branches in Kohlapur and Sangli. Post the change in the management team in 2010, it has been one among the fastest growing private sector banks and now has 392 interconnected branches and 389 interconnected ATMs spread across 28 Indian states and union territories serving ~8.4mn customers. The bank offers a comprehensive range of banking products and services customized to cater to the needs of large corporations, SMEs, agricultural customers, retail customers and development banking...

Escorts (ESC) reported Q3FY21 revenue at Rs 20bn (+24% YoY) and above-estimated operating margins at 18%.

IDFCFB's earnings performance of Rs1.30bn (PLe: Rs1.52bn) was a miss on high provisioning this quarter mainly on back of pro-forma NPAs and higher opex which was offset by higher other income. Pro-forma NPAs came in high at 4.2% and in retail at 3.9% which were on higher side, although bank holds a Rs21.6bn of COVID provision and should see gradual reduction in NPAs on recovery/write-off. Bank's retail drive continues to move ahead with strong CASA growth of 8% QQ and CASA + Retail TDs up 10% QoQ replacing bulk deposits, while corporate book has continued to de-grow by 17% YoY and...

We downgrade TTMT to reduce (from Hold) with TP of Rs231 (v/s Rs172) as we feel the sharp rally in stock recently factors in benefits expected from softer Brexit norms and consolidated entity turnaround to profits. This is captured by forward valuations reaching 10 year LPA. Also Looking at peer valuations, BMW and Daimler are trading at 0.2x EV/ Sales and 3-4x EV/EBIT with better growth and balance sheet. With the weak financial performance in...

Cummins India (KKC)'s revenue growth was weak, in line with expectations. It declined 2% YoY on a weak base (3QFY20: -3%) and could have been even weaker if not for a large order in the Powergen segment. However, persistent cost-cutting measures (employee cost and other expenses) led to...

BLSTR's 3QFY21 revenue was 7% below our estimate, with the miss attributable to Electro Mechanical Projects and Services (EMPS) segment. Operating profit stood higher than our estimate on better sales mix and continuation of cost rationalization measures. Net borrowing reduced by INR2.1b to INR1.3b (v/s INR3.4b in 1HFY21 and INR1.3b in 9MFY20). The company continues to maintain higher liquidity in uncertain times as gross debt stood at INR5.9b. The commentary on RAC industry trends suggest improving prospects. We...

V-shaped recovery in global PVC resin prices since May with corresponding surge in PVC/EDC delta (above long term average of $550600/mt) explains much of the rise in Finolex's PVC resin EBIT in Q2 - Rs 99.10 crs Vs Rs 45.13 crs in the same quarter a year ago.; though external sales (volumes) fo PVC resins rose by just 38.1% to 9665 tons. As indication of its barely subdued impact, Finolex's PVC resin realizations were at $920 / mt compared to $740/ton in Q1 while PVC/EDC delta stood at $653/mt compared to $547/mt in Q1. Supply constraints of PVC resins have...

INDIGO: Rising fuel costs to burn earnings; cut to SELL. CBK: Earnings beat but asset quality risks persist. RBK: Weak asset quality; elevated provisions maintain SELL. MSIL: Operational performance along expected lines; maintain SELL