Brokerage Research Reports share price target

Arvind Limited's (Arvind) Q1FY2021 performance was impacted by the lockdown in April. The company's revenue declined by 68.4% y-o-y to Rs. 599.3 crore, lower than our expectation of Rs. 728 crore, largely impacted by almost negligible sales in April. Gross margin expanded by 244 bps to 52.1% owing to improving mix. The company reported an operating loss of Rs. 28.9 crore (better than our expectation of loss of Rs. 72.6 crore) as against profit of Rs. 154.4 crore affected by significant reduction in fixed costs. Advanced material monthly revenue has fully recovered to preCOVID levels. The denim segment has good recovery in performance with...

After nearly six months of shutdown, movie halls in India were denied permission to reopen in September under the new Unlock 4.0 guidelines issued by the Ministry of Home Affairs (MHA) on 29 August.

acquisition valued at Rs245bn will increase grocery business sales by ~40% to scale up its JIO Mart business meaningfully. Future Group shareholders will get shares in FEL (Future Enterprises), however we believe that huge equity dilution (12.26bn shares) post scheme of arrangement will result in significant pressure on stock price given that FEL had just Rs4.3bn EBIDTA in FY20 (post arrangement basis). Our target price on Reliance post factoring in expected gains from this acquisition increase from Rs2170 to Rs2234 (SOTP based). We retain BUY on Reliance Industries. Although we don't rule...

2Ws - demand reached 85-90% of the normal level. However, scooters are yet to pick up as retails are currently at 75-80% of the normal level. With ease in of lockdown restrictions and positive sentiments, RE retails also picked up...

Significant NIM expansion and lower opex drove a small beat over our higherthanstreet PPOP estimate. PrecautionarycovidrelatedprovisionsofRs360mn(totalat...

Valuation: Major beneficiary, limited competition: We expect BEL to deliver strong performance in the coming years given its robust order book, major beneficiary from increasing emphasis on indigenisation, and limited competition. BEL remains our preferred pick in the defence sector on account of its strong manufacturing and R&D; base, good cost control, growing indigenisation, and strong balance sheet with improving return ratios. We have introduced FY2023E numbers in this note. At the CMP, the stock is trading at a reasonable valuation of 16.1x/15.0x/13.4x its FY2021E/FY2022E/...

Our interaction with leading 2-W companies suggests the decision could lead to lowering of prices at the consumer level provided the cut is implemented for the entire 2-W ecosystem (i.e. including components and materials) and not just the final product produced by OEMs. Lowering of tax on final product without a corresponding reduction in components used to manufacture it (i.e. inverted duty structure) would not really benefit end consumers. If the change is made applicable for the entire 2-W value chain, however, there would be a reduction in final prices by ~8% (on ceteris...

Strong underlying demand aided +20% growth in domestic business for many agrochemical companies (India business growth- BYRCS- 29%, DAGRI- 70%, PI- 49%, UPL- 27%). The aggregate industry topline growth for our coverage universe @ 13.6% YoY ex-off UPL (incl UPL @ 5.3% growth) was dragged by GOAGRO (-8%), SUMICHEM (+4%) and RALI (+6%). Healthy growth...

Q1FY21 (April-June) Corporate India results were expected to be a washout courtesy nationwide lockdown due to Covid-19 in April, gradual easing of restrictions starting MayJune. At the index level, however, excluding banks & NBFCs and a couple of commodity players that are yet to announce quarterly results; topline fall was limited to 33% YoY. This represents resilience of India Inc. in challenging times with key sectors like IT actually growing YoY and arresting the topline decline. With bulk of people working from home and increased reliance...