Brokerage Research Reports share price target

Healthy sequential growth momentum being witnessed in the auto space over the past few months halted in April 2021, as the resurgent pandemic took a toll on OEM sales. With several states under lockdown and retail offtake outlook impacted for the near term, dispatches fell away by double digits across most players and segments. Several OEMs have announced partial closure of manufacturing operations for May, thereby indicating that similar subdued performance will be in the offing this month as well. Given...

L&T; Finance Holdings (LTFH) reported 4QFY21 PAT of INR2.7b (a 31% miss). Excluding a one-off taxation provision, PAT would be INR4.3b (v/s our estimate of INR3.8b). While PPOP missed our estimate by 9%, lower credit costs led to the PBT beat. In FY21, the loan book declined 4% YoY and PAT more than halved to...

Markets gave up early gains to end on a flat note, though key benchmark indexes ended in the green for the fourth day running amid the April series derivatives expiry. Solid earnings reports from blue-chip companies, Fed Chair Jerome Powell's dovish comments on Wednesday and the relief support and medical aid supplies pouring into India from around the world helped...

Additional provisions as % of AUMs decline to 1.1% in Q4FY21 from 1.4%: Q3 businesses (micro/consumer/home loans) aiding fees and steady asset quality (5%GNPA vs 5.3%: Q3). However, as second wave engulfs hinterlands, we foresee increased vulnerability for LTFH business led by 1) concentrated...

Our interactions with leading channel partners indicate sharp decline in MoM retails led by regional lockdowns, supply challenges for few OEMs and lower footfalls (-45-50%) in key festive/ marriage season. Unlike last year, this time rural sales are also impacted as retails and urban are expected to decline 4042% and 60-62% MoM respectively. Consequently, we expect wholesale for the month of April'21 to decline 15-20% MoM across segments. While lower retails helped PV OEMs to catch up inventory levels (13-15 days' v/s < 7 days in Mar'21), 2W inventory remained high at 5-7 weeks. Also, with local mandis still operating followed by anticipated healthy monsoon and decent festive...

EXID's 4QFY21 results exceeded expectations as EBITDA/Adj PAT came 812% higher to PLe, led by effective cost control. While there was a significant pick up in automotive segment (both OE and replacement), industrial and UPS division too started picking up. Going forward we believe stronger growth in replacement segment (~65% of industry) to continue coupled with new product launches across segments. Consequently, operating leverage and cost control to offset lead inflation keeping FY22 margins stable and...

Our interactions with leading channel partners indicate sharp decline in MoM retails led by regional lockdowns, supply challenges for few OEMs and lower footfalls (-45-50%) in key festive/ marriage season. Unlike last year, this time rural sales are also impacted as retails and urban are expected to decline 4042% and 60-62% MoM respectively. Consequently, we expect wholesale for the month of April'21 to decline 15-20% MoM across segments. While lower retails helped PV OEMs to catch up inventory levels (13-15 days' v/s < 7 days in Mar'21), 2W inventory remained high at 5-7 weeks. Also, with local mandis still operating followed by anticipated healthy monsoon and decent festive...

With strong capital and debt position, coupled with decent growth in loan book, the company is well placed to maintain its growth prospects. Though second wave of COVID impacts economy, we expect demand for vehicle financing to support the business. Hence, we upgrade the rating on the stock to BUY with a revised target price of Rs. 193 based on SOTP....