Brokerage Research Reports share price target

Improved consumer sentiments and festive boost enabled retail players to witness ~70-80% revenue recovery rate in Q3FY21. While January continued to witness decent demand offtake, rise in number of Covid cases and several restrictions in March, hampered growth aspirations of retail companies. On an adjusted base of Q4FY20 (normalised), average recovery rate for apparel retailers is expected to be in the range of 80-85%. We expect categories like jewellery, open footwear, athleisure wear, kitchen appliances to sustain healthy growth trajectory compared to apparels and other...

With a rebound in OEM sales adding to existing strength in aftermarket channel, ancillaries with high replacement exposure (battery, tyre players) are expected to do well in Q4FY21. Upturn in domestic & global CV cycle is seen lifting Bharat Forge's prospects while Minda Industries is expected to have benefited from a revival in key user industries, domestic 2-W, 4-W. Performance of key SMP subsidiary would be a monitorable for Motherson Sumi. Total topline growth for the auto ancillary pack is expected at 22.2%...

Infy is probable candidate to announce buyback given its strong FCF/PAT conversion (105% on 9MFY21), strong cash balance & lower payout ratio. in payout of most of the IT companies in FY20 as compared to their historical average payout. (Exhibit 4). However, strong cash flow management in FY21 resulted in improving capital allocation for HCLT & TechM. While TCS and Wipro have healthy FCF/PAT, they have recently completed...

Diagnostic companies would benefit from rising COVID cases throughout the country leading to higher RT-PCR testing in 4QFY21. Even with reduction in COVID testing prices for multiple times in last few months, it will likely...

YoY/21% YoY in Jan/Feb 2021. We expect broadcasters to benefit from this sharp recovery enabling ZEEL to report a 5% YoY growth in domestic ad-revenues. Overall, we expect ZEEL to report 1.7% YoY growth in top-line with 24.2% EBITDA margin. We maintain BUY rating on ZEEL with TP of Rs296 given undemanding valuations and sharp cyclical recovery. Travel & tourism: We expect luggage demand to benefit in 4QFY21 from gradual reopening of schools in Jan/Feb (augurs well for backpack sales) coupled with shift in market share from unorganized to organized players. Overall, while sales...

sentiment, favorable base and return of discretionary spends in urban India. We like companies that have strengthened their business model through launch of innovative products, expansion of distribution & market share gains and are well placed to capitalize once the pandemic subsides. HUL, Britannia, D'Mart, Titan and Kansai are top picks in coverage universe. Sustained rural demand; urban demand coming back...

However, favorable mix and fixed cost control likely to expand EBITDA margin by 280bp YoY/ (-80bp QoQ) at 11.4%. Healthy demand sentiments in Q4FY21 impacted by weak supply chain: Q4FY21 volumes witnessed healthy double digit growth as PV grew by 28% YoY/ (flat QoQ) and CVs grew 60% YoY/ 25% QoQ. While 2W sales grew 24% YoY, it fell by 11% QoQ. We believe PVs/CVs will continue to clock healthy growth in impact and financing challenges. We expect gross margins to contract 90bp QoQ/ 260bp YoY to 27.5% for OEMs...

sentiment, favorable base and return of discretionary spends in urban India. We like companies that have strengthened their business model through launch of innovative products, expansion of distribution & market share gains and are well placed to capitalize once the pandemic subsides. HUL, Britannia, D'Mart, Titan and Kansai are top picks in coverage universe. Sustained rural demand; urban demand coming back...

We expect strong execution in Q4FY21 for our infra coverage universe with expected revenue growth of 22.2% YoY (average) vs 6.1% in Q3FY21. Operating leverage will enable stable EBITDA margins despite inflationary environment. Adjusted PAT is expected to increase by 87.5% YoY led by...

Maintain reduce rating (TP- Rs 676) on CRIN due to capacity constraints in NPK and likely headwinds on the raw material side starting 4Q. We are positive on Urea companies due to healthy volumes, significantly lower outstanding subsidy burden leading to lower in interest cost & improvement in return ratios....