Maintain BUY with a SOTP of Rs 844/sh. JMCP reported in line 1QFY19 revenue at Rs 6.9bn (+3.3% YoY, -4.7% QoQ). Growth was muted in 1QFY19 on account of labour availability issues due to festive season and West Bengal panchayat elections. EBITDA margins of 10.3% (+20bps higher than expected) and an effective tax rate of 23.4% led to a higher PAT of Rs 266mn (+13.9% than estimate).

JMC Projects (JMC) reported its Q1FY19 results; which were lower than expected on account of labour issues in few projects in Karnataka.

CCAvenues registered a growth of 128% YoY in payment processing to INR 102.45bn. Total number of transactions processed volume stands at 27mn translating into ticket value of INR 3,795/transaction. Adjusting the exception items to the tune of INR 75mn, EBITDA for the qtr remained at INR 45.9mn (-78% QoQ, -69% YoY). Adjusted OPM for the qtr stands at ~5%, which was dropped by 1557bps YoY. The drop is largely attributable to management's strong focus of improving the transaction size resulting into higher payment processing charges along with delay in recovering MDR charges for transactions below INR 2000 had impacted financial performance during the qtr. Adjusting exceptional item to the tune of INR 107mn (INR 32mn impairment on investments, INR 50mn stamp duty impairment, INR 25mn MDR...

ICICI Securities Ltd | Retail Equity Research Consolidated revenues for the quarter grew 10.3% YoY to | 2860.96 crore (I-direct estimate: | 2927.5 crore). The growth was accelerated by 14% growth in brand & retail segment to | 1016.4 crore. Revenues from textile segment grew marginally by 2.3% YoY to | 1561.5 crore Despite a 350 bps decline in gross margins to 52.8%, EBITDA margins for the quarter improved 50 bps YoY to 8.6% (I-direct estimate: 9.3%). Lower other expenses (down 460 bps YoY) aided the margin...

Sector: Textile /Mid-Cap | Earnings Update 1QFY19 Background: Arvind Ltd is the flagship company of the Lalbhai Group, established in 1931. Arvind's business is broadly classified into Textiles, Brand & Retail and others. Textiles, Brand & retail and others which accounts for 55%, 39% and 6% of the revenue respectively. In India, Arvind sells international brands such as Arrow, US Polo Associate, Tommy Hilfiger (JV brand), Calvin Klein (JV brand), IZOD, Elle, TCP, Cherokee, GANT, Hanes, GAP, Wonderbra, Ed Hardy, Geoffrey Beene, Nautica etc. Company has a strong distribution network of 1,336 stores with a retail space of ~2.19mn sq.ft. (Brands: 1,201 stores with ~1.07mn sq.ft retail space & Unlimited: 99 stores...

6 August 2018 Revenue increased 10% YoY to INR28.6b (est. of INR26b) in 1QFY19, led by Brands & Retail business (up 14% YoY to INR10.1b; INR890m unadjusted stated higher due to Ind-AS adjustment + one-time impact from agreement changes). Textiles business too grew by 2% YoY to INR15.6b. EBITDA grew 18% YoY to INR2.5b (est. of INR2.3b), with the margin expanding 50bp YoY to 8.6% (est. Adj. PAT increased 19% YoY to INR0.

ICICI Securities Ltd | Retail Equity Research NCLT has approved the demerger of Arvind Fashions and Anup Engineering from Arvind Ltd. The company has reported financials for its continuing business only. However, for the purpose of comparison, the company has provided the consolidated summary Revenues from the textile division (excluding advanced materials) grew 6.4% YoY to | 1488 crore mainly driven by 15%, 14% growth in the garmenting, woven division, respectively. The denim business...

We recently met the management of Arvind Ltd. The company is positive on all major businesses textiles, Apparels and engineering business. The company expects to complete demerger of branded apparel business and engineering business in the near future. The company has maintained FY19...

Shankara Building Products Ltd revenues were much ahead of our estimates but margins came lower than expectations due to sharp decline in enterprise and channel segment margins. Company is looking at higher revenue trajectory and in this process, margins may get impacted to some extent in the interim. However, more clarity would emerge in coming 1-2 quarters on the trade-off between higher revenues and slightly lower than expected margins. Though Q1FY19 was a strong quarter, company has mentioned that...

At the CMP of Rs.64, JSL is trading at an EV/EBITDA of 5.2 x FY19E. We initiate with a BUY on JSL with a target price of Rs.127 (FY21 EV/EBITDA of 5x), which represents an upside of 98.4% over 18 months.

Sales at INR 785 cr grew by 33% YoY and were ahead of our expectations of a 24% growth YoY.

at standalone as per Ind AS 111 primarily from Delhi metro project. EBITDA margin up 89bps YoY to 16.2% (95bps below estimate) led by lower employee costs and other expenses which was partially offset by rise in raw material cost. PAT grew sharply 55.7% YoY to `402mn driven by better...

Background: Dewan Housing Finance Corporation (DHFL) promoted by the Wadhwan group, commenced operations in 1984. DHFL with a total AUM of INR 1,209bn is the 3rd largest housing finance company with a market share of nearly~ 4% and operates through a network spread across in 352 locations. It is the only Housing Finance Company with focus on LMI customer segment. Distribution footprint is primarily spread across Tier II / III cities and outside the municipal limits of the Metros with...

Background: Dewan Housing Finance Corporation (DHFL) promoted by the Wadhwan group, commenced operations in 1984. DHFL with a total AUM of INR 1,111bn is the 3rd largest housing finance company with a market share of nearly~ 4% and operates through a network spread across in 349 locations. It is the only Housing Finance Company with focus on LMI customer segment. Distribution footprint is primarily spread across Tier II / III cities and outside the municipal limits of the Metros with...

We maintain BUY with a TP of Rs 415/sh (15x Mar-20E EPS) JKIL continued to demonstrate strong execution pace, posting revenue of Rs 6.2bn coming 18.3% above our estimates. With the DMRC project now practically over margins improved 293bps YoY to 16.2%. Metro Lines 2,3 and 7 and the JNPT projects are particularly driving the revenues with quarterly run rates of Rs 3.7bn and 1.3bn respectively.

Capacity to be expanded to 137,000 TPA by March 2019 and for FY19 the output likely to be 75,000 TPA and for next year FY20 minimum they will achieve output of 100,000 to 120,000 TPA. General and specialty grade to roughly be in equal proportions and there will...

Bhansali Engineering Polymers (BEPL) recently informed the stock exchange that they have decided to continue with expansion of its compounding capacities at Abu road from 100 KTPA to 137 KTPA which will be operational by March 2019. The entailed capex is ~Rs 300mn. In this connection, plant and machinery have been received at Abu Road Unit and its installation will commence in due course to meet the time lines. The Satnoor plant is operating properly and it will be possible to attain and maintain the level of production as it was before the fire. Management is confident of sustaining 20% volume growth. In our estimates,...

Bhansali Engineering Polymers Per Kg EBITDA surprises Bhansali Engineering (BEPL) reported numbers in line with expectations. Due to the fire at their Satnoor plant, production was halted for a month. This lead to a drop in volumes by ~45% both YoY and sequentially, but revenues fell by only 10% YoY and 33.2% QoQ supported by higher realisations which improved 68.1% YoY and 18.5% sequentially. EBITDA margins improved YoY by 40 bps but fell sequentially by 90 bps to 13.6%. We were positively surprised by the per kg EBITDA which improved to Rs 30.5 versus Rs 17.6 in Q1FY18 and Rs 27.4 in Q4FY18 and could improve going forward. However, even in a...