During FY19, the company's leisure international revenues increased 23% YoY mainly on the back of improving domestic spend and higher growth in foreign tourist arrival. On the other hand, domestic leisure segment got impacted, to some extent, with disruption in the airline industry. This, in turn, led to annual growth of 5.8% YoY only. Going forward, with improved tourism measures by the government and improved purchasing power, we expect domestic leisure business to continue to outperform in coming years. Hence, we expect leisure revenues to grow at a CAGR of 7-8% in FY19-21E....

MT Educare's (MT's) FY19 core operating results are line with our estimates. The company reported a profit at the operating and net levels after registering losses in FY18 on account of one-time expected credit loss (ECL) provisions relating to Aryan Foundation, Sri Gayatri Educational Trust, certain government projects, and other debtors. While operating revenue came in marginally lower than our expectation, EBITDA was in line, leading to 50 bps higher EBITDA margin (12.5%). PAT was higher than our estimate due to higher-than-expected other income....

However, the quarter witnessed a steep rise in provisions, where it increased 8x y-o-y and ~6x on a q-o-q basis to Rs. 3661.7 crore. Yes Bank has identified a stressed pool of ~ Rs 10,000 crores, against which it has taken additional contingent provisions of Rs 2,100 crore. Affected by accelerated additional provisioning and lower other income, the bank reported a loss of Rs...

We recently met Mr. Ravneet Gill, CEO of Yes Bank (YBL) and gleaned incremental Sector: Banking insight into the strategy of the company. We share our detailed takeaways below. We revise our estimates for FY20/FY21 and maintain Buy rating, revising our target price to CMP: Rs140...

IG Petrochemicals Ltd (IGPL), for Q4FY19, reported depressed performance. Revenue growth remains flat at 0.1% YoY to INR 3,131mn (est INR 3,221mn). EBITDA decline by 42.5% YoY to INR 367mn (est INR440mn) with 866bps YoY contraction in margin from 20.4% in Q4FY18 to 11.7% in Q4FY19 (est.13.6%) mainly due to decline in gross margins led by reduction in PAN/OX spread due to extreme volatility in raw material prices. During Q4FY19, production of PAN volume has grew by 11.6% on a sequential basis from 37,296MTn in Q3FY19 to 41,617MTn in Q4. However, on yearly basis, PAN volume grew by 7.3% due to customers resume buying which they had postponed during Q3 as stabilization in commodity prices. As we noticed stabilization in crude oil in recent months, we expect better volume uptick in going forward with improvement in margins on the back of increasing...

IGPL with PAN capacities coming on stream by the end of CY19 is well placed to capitalize on domestic opportunities. However, the near term consumption demand downturn remains a concern. Maintain BUY....

NCC's strong order book is well diversified across segments and geographies and lends revenue visibility over the next 2 years. Apart from 2-3 months delay in some projects, NCC does not envisage execution to suffer as a result of the elections. We expect net working capital levels to remain stable (100days) leading to strong free cash flows of ~Rs 3.3/5.1bn in FY20/21E. We have built in muted APAT growth over FY20-21E led by high interest costs, depreciation and pressure on margins. Re-rating is contingent on the pace of reduction of the ~Rs 13.9bn group exposure and real estate monetization. We maintain BUY. Key risks (1) Adverse ruling on ongoing arbitrations; (2) Slow down in government capex; (3) Deterioration in NWC days; and (4) Weak real estate monetization. We maintain BUY on NCC with a TP of Rs 170/Sh (EPC business at 15x FY21E EPS). We have tweaked our finance cost estimate lower and increased our FY20/21E EPS by 2.2/0.4%.

With GIC, IRB has secured means to partly fund its balance equity requirement of Rs 29.5bn. The free cash flow potential of the portfolio is Rs 880bn over the project lifecycle (~20yrs), with Rs 2bn/yr IRB share from first year. IRB will leverage this partnership to bid for upcoming BOT and TOT projects, though it will have to bring 51% of equity share. We maintain BUY. Key risks (1) Declining toll revenues in certain projects, (2) Market acceptability for BOT projects and (3) Delay in appointed dates in remaining HAM projects, contributing 25% to order book by value. IRB delivered strong 18/28% 1QFY20 EBIDTA/APAT beat. Private InvIT announcement with GIC (Rs 44bn investment for 49% stake, ~1x P/BV) removes BOT asset recycling overhang. We maintain BUY with a TP of Rs 212/Sh.

Despite a challenging environment (liquidity crunch faced by NBFCs and a few PSUs), IRB has managed to successfully get financial closures for all its projects. With Mumbai Pune BOT set to end in 2QFY19, further delays in appointed dates for the 2 Kerala HAMs will lead to a pressure on consolidated revenue. To maintain revenue visibility it is extremely crucial that IRB replenishes its backlog in the next round of BOT/HAM tendering. We maintain BUY. Key risks (1) Delay in toll revenue pickup, (2) Banks aversion to BOT/HAM funding, (3) High interest rate, and (4) Delay in appointed dates. We maintain BUY with a TP of Rs 212/Sh. We have made minor +1.2/1.7% change to consolidated FY20/21E EPS.

Revenue changes its course: A stellar jump in APRU helped clear the major hurdle of a continued downtrend in revenue, which stood flat sequentially at INR117.8b (in-line) in 4QFY19. This, coupled with INR2b one-offs, led to strong EBITDA growth of 57% QoQ to INR17.9b. Interestingly, even adjusted for oneoffs, EBITDA was up by a robust 39% QoQ (13% beat), primarily led by merger synergies (margin expanded 380bp to 13.5%). Adjusted for exceptional item and the DTA impact, IDEA reported a net loss of INR40.6b (v/s INR62.1b in 3Q). Concall highlights: (1) IDEA guided for capex of INR168b for FY20. (2) Net IUC EBITDA contribution stands at slightly over INR4b, which is likely to reduce to nil...

DITV's poor execution, governance (aggressive accounting and BS issues) and sharp swings in ARPU has already irked investors. Sharpened focus and tightened execution on subscriber quality is inevitable for sustained re-rating. Our faith has diminished in DITV as its mgmt/promoters have been unable to deliver over a long period. But, possibility of it getting acquired with mgmt change is possible. This is key. Dish TV (DITVs) 4QFY19 was significantly weak. This was led by disruption on account of new tariff order (NTO) implementation. Led by steep price correction, DITV is trading at attractive 5x FY21E EV/EBITDA. BUY with TP of Rs 51 at 7x. Stake sale by promoters for group de-leveraging is key trigger.

Standalone orderbook at strong | 39,402 crore as of Q4FY19 NCC witnessed robust order inflows worth | 25,612 crore in FY19 taking its standalone orderbook (OB) to | 39,402 crore, 3.3x TTM revenues, providing strong revenue visibility ahead. This OB is after de-scoping of slow moving or uncertain projects. Buildings (39%), roads (21%), water (23%) and electricity (4%) divisions make up 85% of the OB. On the customer front, 99% of the orders are from government entities. While NCC has a strong OB position, given the high base created on account of robust execution and...

VIL is moving in the right direction by strengthening 4G rollouts, balance sheet through rights issue, stake sale in Indus and potential monetization of fiber assets. That said, low EBITDA, substantially higher leverage and persistent cash burn has put VIL in precarious position with limited room to err. Synergy benefits, substantial 4G sub additions and tariff hikes are essential. Pricing strategy by competitors is key for viability and stock sentiment hereon. We believe all these factors may play out. Our TP is highly sensitive to tariff increase. Vodafone Idea (VIL) 4QFY19 results were ahead of estimates. This was primarily led by inevitable synergy benefits post integration. That said, operating performance was feeble with flat revenues QoQ and modest data subscribers additions. BUY with TP of Rs 19 (10x FY21E EBITDA).

NCC has seen significant de-rating post the AP Govt order cancellation and uncertainty of execution on balance Rs 125bn of AP order book. Our channel checks will local Govt officials suggest work of significant importance will start in next 3months. We ascribe low probability of further project cancellation for NCC in AP. Debt levels may remain at current levels, though AP receivable realization may take time. Sembcorp arbitration will unlock Rs 4-5bn of cash inflow. With inexpensive valuation (6.3x Core EPC FY21E EPS) and receding headwinds we maintain BUY. Key risks (1) Adverse ruling on ongoing arbitrations; (2) Slow down in government capex; (3) Deterioration in NWC days; and (4) Weak real estate monetization. NCC reported inline 1QFY20 performance with Rev/EBIDTA/APAT beat of (4.5)/2.5/1.6%. We expect AP projects execution to resume from Oct-19. Core EPC valuation is inexpensive at 6.3x FY21E EPS. Maintain BUY with a TP of Rs 154/Sh (EPC business at 15x FY21E EPS).

Steady quarter; Acquisition of IIFL's CV financing business complete 4QFY19 PAT increased 83% YoY to INR741m, driven by healthy NII growth, higher upfronting of assignment income and controlled opex. The company completed the INR35.2b (INR22.4b on-book) acquisition of IIFL's CV financing business on 31st Mar'19, resulting in goodwill of ~INR3b. Excluding the acquisition, total AUM grew 8% QoQ to INR83.7b, largely driven by the VF portfolio. Disbursements in corporate finance rebounded from INR3-4b in the past...

CRAMS revenues were positively impacted as commercial orders for API's were bunched up during the quarter. The Vitamin D business was favorably aided by expansion into new markets. The company is leveraging its internal low-cost manufacturing technology to expand the end use of its Vitamin D products. During the quarter, the company has commercialized its new custom synthesis facility in Switzerland, which should start incrementally contributing to revenues in FY20. The peak revenues from the facility should be around US$10mn. The commercial manufacturing business should expand as around three molecules that have been filed for approval by its clients are awaiting regulatory nod. EBITDA stood at Rs1,694mn, which was 12.1% above our estimate. EBITDA grew 27.6% QoQ and 39.8%...

Our recent interactions with RBK suggest less than commensurate credit risk, achieved via tight (and differentiated) credit policies. RBL Banks (RBK) focus on niche credit segments (credit cards and micro finance) gives it better spreads, system-beating growth and a multi-year addressable opportunity that enables it to outperform peers. Our positive stance is reflected in consistently robust operating metrics. RBKs scorching pace of growth along with its unconventional (but consciously chosen) evolution has invited skepticism. Maintain BUY with a TP of Rs 803 (3x FY21E ABV of Rs 268).

Opportunistic and tactile lending by an astute management along with increasing retailisation underpins our constructive stance on Indostar. While critics are wary of its real estate and structured finance exposure, calculated repayment rates and immaculate asset quality should dispel concerns. Current attractive valuations (<1x Mar-21E ABV) imply significant deterioration in corporate asset quality, which we believe is unlikely. We have reduced ABV to factor portfolio acquisition goodwill. We maintain BUY on INDOSTAR (TP of Rs 520, 1.5x Mar-21E ABV of Rs 347) after an in-line 4Q and, incredibly, an improvement in corporate asset quality.

Somany Ceramics (SOMC) reported a 4% YoY dip in Q4FY19 consolidated revenue to Rs 5.2bn with tile volumes falling 3.3%. Consolidated operating margins rose 210bps YoY to 13.6% due to higher gross margins (+198bps), aiding EBITDA/PBT growth of 13.4%/16.6% YoY. Management has guided for double-digit volume growth in tiles, with stronger margins in FY20. We trim...

Solid execution in road, building and electrical division led to a top -line growth of 42% YoY in Q4FY19. Order book remain robust at Rs39,216cr (3.2x TTM revenue) supported by 272% YoY growth in order bookings in Q4FY19. Despite, increase in execution EBITDA margin remains flat at 11.7% due to increase in sub-contracting and other expenses....