Brokerage Research Reports share price target

Despite recent setbacks, we expect the Indian tyre industry to grow at a 7% CAGR to ~Rs 720bn during FY20-FY23.

Power distribution companies' (discoms) pending dues to power generation companies (gencos) shot up 66% yoy (5% mom) to Rs1.20tn as of June'20. Total outstanding stood at Rs1.31tn (+66% yoy/+5% mom) - close to its Nov'15 peak of Rs1.35tn. Discoms in key states Rajasthan, Tamil Nadu, Uttar Pradesh, Maharashtra, Telangana, Karnataka, and J&K; account for 82% of the total overdues to gencos. Discoms' financial health has deteriorated during the lockdown due to a steep fall in power offtake across the C&I; segment. However, while the collection efficiency initially fell sharply to 25-35% in April-May'20, it showed a marked improvement in June, rising to 55%....

improved Net Interest Margin (NIM) on sequential basis to 3.01% helping Net Interest Income (NII) growth to accelerate in Q1FY2021. Bank has improved business growth at 12% along with rise in credit deposit ratio to 69.8% at end June 2020. Bank has also improved the CASA deposits ratio to 45.3% at end June 2020. Asset quality improves sharply: Bank has improved the asset quality on sequential as well as year-on-year basis in Q1FY2021. Fresh slippages of advances dipped to Rs 3637 crore (annualized 0.6% of advances in Q1FY2021) compared with Rs 8105 crore (2.2%) in the previous quarter....

July 2020 was the second consecutive month of robust sequential improvement in the auto space, as further relaxations post lockdown, pent up demand and channel restocking by OEMs led to a healthy showing in all segments (bar 3-W). The tractor industry continued to perform ahead of other segments, with key players posting positive YoY growth for July. Among 2-W, market leader Hero MotoCorp outperformed as YoY decline was limited to 4%, with total volumes at 5.1 lakh units. Bajaj Auto's volumes declined 26% YoY to 2.4 lakh units (domestic decline at 10.8%). Royal...

Key Pointers: yyOn a year-on-year (y-o-y) basis, non-food bank credit growth at 6.7 per cent in June 2020 was nearly the same as in May 2020 but lower than the growth of 11.1 per cent in June 2019. This was due to subdued economic activity because of mini lockdowns and risk aversion at banks.

Q1FY21 Revenue & PAT declined by 42%YoY & 93% YoY, on account of lockdown. Gross margins fell by 330bps YoY due to weak product mix. While EBITDA fell by 87% YoY and margins by 790bps YoY to 2.2%, on account of weak operating environment. Focus on Non-South market, new product launches and expanding retail chains will drive growth going forward. We expect localized lockdown to impact near term earnings. However, we can expect gradual improvement in earnings from H2FY21E as economy fully opens-up....

Loans and advances grew 2.4% YoY (-4.2% QoQ) in Q1FY21, primarily supported by growth in consumer finance loan book. Deposits base rose 5.3% YoY with CASA down 2.0% YoY Net interest margin (NIM) improved 23bps YoY to 4.28% (+3bps QoQ)....

Lead prices further declined by 4.5% QoQ/ 3% YoY in 1QFY21 to Rs127/kg. EXIDE 1QFY21 results exceeded expectations at revenue/EBITDA/PAT as the weak volumes in auto OEMs was offset by better than expected growth in replacement segment. Going forward also we believe stronger growth in replacement segment (~65% of industry) coupled with recovery of industrial battery demand will offset subdued volumes from auto OEMs. Consequently, favorable mix along with benign RM should help ~50bp margin expansion in...

Mold Tek Packaging Gradual recovery already set in Moldtek Packaging (MTEP) Q1 results were a surprise. While management had guided losses in Q1, company reported marginal profits of Rs 16m due to sharper than expected recovery (June cu at 42% v/s 35% expected earlier). Revenues de-grew 43.7% on back of 41%/4% decline in volume/realisation. EBITDA/kg fell 24% to Rs 24.5. EBITDAM contracted 450bps YoY to 13.9% largely due to lower fixed cost absorption. PAT decline was sharper at...