We remain positive in the automobile sector and expect a strong rebound in FY22E. We continue to prefer Hero Motocorp, Bajaj Auto, Escorts, and Ashok Leyland and expect them to do well.

PV bellwether MSIL's volume decline was dramatic at 71.2% MoM to 45,687 units, comprising similar ~75% drop in core mini & compact passenger car as well as UV segments. M&M;'s UV volumes fell 57.4% MoM while for Tata Motors, PV decline was at 39.5% MoM to 15,181 units. CV space was severely hit, with all major OEMs reporting >30% sequential decline. Market leader Tata Motors posted 31.5% decline to 11,401 units in which M&HCV; truck decline was at 48%. For Ashok Leyland, total CV decline of 62% was surprisingly led by 69% drop in LCVs, while within M&HCV;, truck...

Another Status Quo

Axis Securities Research Scorecard

Credit growth in April month saw a slight surge to 5.7% YoY from 5.5% YoY growth in March month (6.7% in Apr'20), led by Personal loans and stable industry credit growth. Post 10 months YoY surge, agriculture credit growth seen decline to 11.3% YoY vs 12.3% YoY in Mar'21. Industry portfolio turned positive in March month and remains stable in Apr'21 at 0.4% YoY. This was led by Medium industry which registered 43.8% YoY growth vs 28.8% YoY growth in Mar'21 and continues to show improvement as risk-averse banks lend under credit guarantee scheme to MSME borrowers. Micro & small credit growth saw good uptick at 3.8% YoY vs 0.5% YoY in Mar'21. Large industry which saw improvement despite reported negative growth in Mar'21 deteriorates in Apr'21 at -1.9% YoY growth vs -0.8% YoY in Mar'21. Service portfolio lowers at 1.2% YoY vs 1.4% YoY in Mar'21. Retail growth seen continues upsurge and reported 12.6% YoY vs 10.2% YoY in Mar'21 led by vehicle loans (11.7% YoY vs 9.5% YoY in Mar'21) as well as loans against gold jewelry (85.9% YoY vs 82.3% YoY in Mar'21). Housing portfolio growth stood at 9.5% YoY vs 9.1% YoY in Mar'21, while Credit card growth seen strong uptick and stood at 17.1% YoY vs 7.8% YoY in Mar'21. Overall, the Credit demand continues to remains tepid led by lower growth in agriculture sector...

Asian markets are trading mixed as investors await the release of private survey on Chinese manufacturing activity in May. Nikkei is trading lower by 0.58%, Shanghai is trading lower by 0.58% while Hang Seng is trading higher by 0.10%.

Despite a complete washout in Q1FY21 (84% revenue decline) V-Mart displayed a healthy recovery in H2FY21 (FY21 revenue de-growth of 35% YoY) owing to its strong business model and dominant presence in non-tier I cities (77% of total stores). The management indicated that it was witnessing close to normal demand but a resurgence of Covid cases significantly derailed revenue recovery (currently mere 20-30 stores are operational). The company expects a gradual opening of markets from midJune onwards, with green shoots from Q2FY21 onwards. Inventory on a sequential basis spiked up sharply (up 44%) in anticipation of strong pentup demand for the summer season before the Covid disruptions. On a full...

We introduce our FY23 estimates and model revenue CAGR of 16% in FY2123E on a favourable base and new launches. We believe improved product mix would help drive EBITDA margin, going forward, which will drive PAT at CAGR of 50%. We maintain BUY rating on the stock with a revised target...

leading to improvement in operational performance remained a key highlight of the quarter. Asset quality remained broadly resilient. Net...

New capacity to drive incremental growth for organic chemical Both phase 1, 2 expansion at Dahej would expand organic chemical capacity by 3x with a capex of | 130 crore. This would translate into incremental revenue of | 350-375 crore at peak utilisation against overall revenues of | 306 crore currently. We expect the Dahej facility to largely cater to the custom synthesis opportunity with the Vadodara plant catering to advanced intermediates market. Given both these segments have better gross margins compared to the base business, increase in the share of these segments is...