Sell

Q3 Revenue & PAT grew by 40% & 74% YoY, led by festive & pentup demand, restriction in imports and market share gains. EBITDA margin improved by 430bps YoY to 16% led by scale benefits, product mix, price hikes and cost rationalisation. We upgrade our EPS estimates by 27% & 18% for FY21E & FY22E, given sharp turnaround in earnings. A complete player in electrical & consumer durables products with strong brand recall, distribution strength and leadership position in...

Supreme Industries' (SI) Q3FY21 revenue grew 34% YoY, aided by a 10% rise in volumes.

While the third quarter is typically its best season, V-Mart Retail (VMART) reported a Q3FY21 revenue decline of 16% YoY to Rs 4.7bn due to continued Covid-19 headwinds.

Grasim's Entry unlikely to shake paint majors Grasim Industries is entering decorative paints Industry with initial capex of Rs 50bn (FY22-24) with an aim to emerge as No2 player by leveraging Birla Asian Paints (APNT IN) Consolidated...

up demand and severe supply constraints. Supplies are coming back strongly as visible in increasing production levels month after month. Softening in demand and revival in supplies poses strong headwinds to prices. Hence, we believe that global prices have peaked out as visible in above mean spreads. We maintain our negative outlook on the stock due to stretched valuations (EV/EBITDA of 6x FY22e) and peaked out margins. We...

HDFC Life's APE grew by 18% YoY although individual APE continued to grow better at 20% YoY in Q3. This has led to APE growth to move to positive 3% YoY in 9MFY21 from -4% YoY in H1FY21. Continued growth across product segments on individual basis was seen with strong focus remaining on protection, PAR picking up strongly and recovery in ULIP. This balanced growth also led to gradual uptick in margins of 50bps from H1 to 9MFY21. With new term product with tweaked pricing (we hear double digit price increase) margin pressure should be off and gradually expand faster in next...

Q3FY21 highlights: (a) RIL's EBITDA was in line with estimates at Rs 216bn (5% YoY, +14% QoQ) as Oil-to-Chemicals (O2C) and RJio met expectations while retail outperformed.

DCB Bank's (DCBB) Q3FY21 PAT of ~Rs 1bn beat estimates on higher treasury income and contained opex.

Asian Paints (APNT) reported above expected result driven by 33% volume growth in decorative coatings followed by double digit revenue growth in both home improvement business and international market. Festive demand and resurgence of construction activity has contributed towards strong revenue growth. Deflationary raw material cost supported 7th consecutive quarter of gross margin expansion. Foray into Home Dcor is tracking well. APNT guides to double the count of stores which are offering Home Dcor solution in next 2 years. Based on revised business outlook, we have revised our EPS estimates upwards for FY21E by 6%. We estimate Rs 2,461 as fair price for APNT...

Bajaj Auto (BJAUT) Q3FY21 result was above our and consensus estimates at EBITDA and Adj. PAT level due to lower RM/ operating cost and higher other income. We believe as restoring life back to normalcy and business as usual; with gradual opening up of educational institutes/colleges, organic demand for 2-wheelers should progressively start coming back. We expect domestic 2W/3W industry to see a double growth for FY22 on a low base. We anticipate stronger recovery in export market for 2W/3W segment would help BJAUT to partially mitigate any slowdown in domestic market in near term. We build our volume growth estimates for FY21/FY22/FY23 by...