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Both boards approve merger of JSHL into JSL Key highlights of proposed scheme The board of directors of Jindal Stainless (JSL) and Jindal Stainless (Hisar) (JSHL) have accepted the recommendations of the respective board committees and approved the merger of JSHL into JSL. The transaction between Jindal Stainless (Hisar) and Jindal Stainless Ltd is an all-equity merger. As per the approved share swap ratio, 195 equity shares of JSL will be issued for every 100 equity shares of JSHL. Furthermore, as per the...
TOP PICKS: LT, KNR, PNC Infra, Ashoka, NCC, Capacite Infra, ITD and KPTL. HDFC Securities Institutional Equities (HSIE) hosted the 4th Annual Infrastructure Investors Forum on 18/19th Feb 2021, though virtual this time. We had attendees from 12 large listed Industrials/Infrastructure companies represented by Promoters, CEO/CFO/IR teams. After almost a decade, there is strong/consensus optimism building up for the Indian Infrastructure story. Ordering has moved beyond roads with focus now on health, education, portable water, renewable energy, manufacturing expansion, uptick in real estate cycle and all this is coinciding with relatively lower crude prices, lowest interest rate and improving GDP/Tax collection. Companies remain bullish whilst valuation is still at 40-50% discount to cross cycle mean. We maintain constructive as envisaged in our thematic On Road to Rerating and Triggering a New Cycle.
Brigade Enterprises Ltd. (BEL) is a leading real estate developer based in south India with exposure across residential, office, retail and hospitality segments.
With major due diligence done and binding offers received, negotiations & documentation of SBI Macquarie stake sale expected to conclude by Mar'21. ASBL's 3Q performance was muted with revenues and margins coming below our and street estimates, mainly due to delayed commencement of 3 major projects. ASBL now received long-awaited AD in Kandi Ramsanpalle HAM...
Following are key takeaways from the conference call: Overall (1) Hospitality sector is in a steady recovery. Expect Corporate and MICE segments to begin from 2QFY22/3QFY22, which is expected to drive strong growth to pre-Covid levels. (2) Some MICE demand (from weddings, film shoots, SME etc) is already improving (3) Covid impact will remove ~15% of the branded room supply (currently distressed) from the market in the next one year. This will help in improving occupancies and ARR for the surviving hotels. The key takeaways for Lemon Tree are: (1) Normalization of operation is expected from FY22, especially from 2HFY22. However, consistent reduction in regulatory constraints has already led to...
Indian Bank reported a good set of Q3FY21 numbers relative to PSU peers. Asset quality on a notional/proforma basis remained steady while a pick-up in loan growth remained a positive. Business growth for the quarter showed improved traction as gross advances were up 7.5% YoY, 6.5% QoQ to | 389646 crore. Growth in advances was led by retail, agriculture and MSME segment, which were up 13% YoY, 11% YoY, respectively. Together they form ~56% of total advances. Corporate book growth was miniscule at 2% YoY amid cautious...
For the 3rd consecutive quarter, Sagar Cements Ltd (SGC) has reported an EBITDA/mt of Rs1,000+, which was primarily driven by declining operating costs and better realizations compared to last year. For 3QFY21, net sales increased by 38.8% YoY to Rs. 3.6bn. This was primarily driven by a 12.7% YoY increase in cement volumes to 0.86 mn mt, and 23.2% YoY growth in realization/mt. Despite having lower utilizations and higher OPC mix (59%), SGC still remains one of the lowestcost producers of cement. Total operating costs/mt declined by 5% YoY to Rs.3,013 and it was the 4th consecutive quarter of decline in costs reported by the company. All operating costs except for freight cost reported a decline on YoY basis. Freight costs increased by 3.7% YoY primarily due to higher diesel prices partially offset by lower lead distance (303kms). With tight control over the...
Lowest tariffs, superb pipeline network and well-entrenched reach in the domestic LNG markets to help PLNG compete with new terminals. We increase our FY21E estimates by 7% to factor in strong 9M performance and FY22/23E by 3.5/3.4% as we increase spot margins. We believe PLNG 1) is a play on India's rising LNG imports supported by benign spot LNG prices 2) possess solid business model given high earnings visibility 3) has limited...
Mrs. Bectors Food Specialities Ltd is a specialist in manufacturing premium & mid-premium biscuits and breads having a strong market footprint in the North India Region. Over the years, the company has diversified its product portfolio to include all kinds of biscuits & cookies suitable for domestic as well as exports markets and forayed into different types of breads & bakery products. Mrs. Bectors Food is also the sole supplier to some of the major QSR players having pan India presence. The company has set up state of the art manufacturing facilities that manufactures 100% of its products in-house providing the company effective quality control over the production process ensuring consistent quality of products. Mrs. Bectors Food has shown a robust improvement in its financials...
The fast paced diversification from a microfinancier to a small finance bank, the recent ramp up in the liability franchise after a slow start, management's focus on technology driven product expansion and customer sourcing strategy and razor sharp focus on maintaining asset quality cement
Negotiations restarted for SBI Macquarie stake sale with prospective buyers and deal progressing in right direction as per management. ASBL reported decent quarterly performance with execution ramping up (6% YoY growth) across its project sites led by rise in labour availability. Margins...
Negotiations restarted for SBI Macquarie stake sale with prospective buyers and deal progressing in right direction as per management. ASBL reported decent quarterly performance with execution ramping up (6% YoY growth) across its project sites led by rise in labour availability. Margins...
Lowest tariffs, superb pipeline network and well-entrenched reach in the domestic LNG markets to help PLNG compete with new terminals. We increase our FY21E estimates by 9% to factor in strong H1 performance, delay in commissioning of the Kochi-Mangalore pipeline and make other...
TOP PICKS: LT, KNR, PNC Infra, Ashoka, NCC, Capacite Infra, ITD and KPTL. HDFC Securities Institutional Equities (HSIE) hosted the 4th Annual Infrastructure Investors Forum on 18/19th Feb 2021, though virtual this time. We had attendees from 12 large listed Industrials/Infrastructure companies represented by Promoters, CEO/CFO/IR teams. After almost a decade, there is strong/consensus optimism building up for the Indian Infrastructure story. Ordering has moved beyond roads with focus now on health, education, portable water, renewable energy, manufacturing expansion, uptick in real estate cycle and all this is coinciding with relatively lower crude prices, lowest interest rate and improving GDP/Tax collection. Companies remain bullish whilst valuation is still at 40-50% discount to cross cycle mean. We maintain constructive as envisaged in our thematic On Road to Rerating and Triggering a New Cycle.
ASBL's 3QFY21 revenue came in flat YoY, in line with our estimate. Revenue would have been higher as execution of three projects was delayed and shifted to 4QFY21. EBITDA stood 15% below our estimate as an adverse revenue mix led to 180bp YoY decline in EBITDA margin (120bp below our expectation). As a result of lower depreciation and interest cost, coupled...
NESCO's reported revenue declined by 28% YoY but increased by 28.5% QoQ in 3QFY21. The decline in revenue on YoY basis was due to a drop in Bombay Exhibition Center (BEC) and Hospitality segment's revenue by 91.3% YoY and 53.2% YoY as the BEC was converted into a COVID Care Center by the Municipal Corporation of Greater Mumbai (MCGM). IT Park's revenue increased by 1% YoY and 16% QoQ. NESCO reported EBITDA of Rs529mn, down 31.6% YoY and up 48.5% QoQ while EBITDA margin contracted by 306bps YoY to 64.1%. The decline in EBITDA was because of the rise in the cost of materials and decrease in the...
