Talwalkars Better Value Fitness Ltd. (TBVFL) reported in line numbers for Q3FY18 with net revenue and PAT growth of 10.2% & 23.2% YoY respectively. Driven by cost efficiencies, EBITDA margins expanded 17bps YoY to 45.2%.

Talwalkars reported weak Q3FY18 results that broadly remained below our estimates. Revenues increased 10.2% YoY to | 54.8 crore (below I-direct estimate of | 61.0 crore). On the margin front, the EBITDA margin expanded merely by 21 bps...

PC Jeweller's (PCJ)sales grew strongly by 25.5% YoY to INR26.4b (est. ofINR25.5b). EBITDA increased by 52.2% YoY to INR2.7b (est. of INR2.6b),while adj. PAT grew 52.1% YoY to INR1.6b (est. of INR1.4b). Segment- wise performance: a) Domestic sales grew 40.1% YoY to INR17.6b,with the EBIT margin expanding 240bp YoY to 13.5%. Sales in the base quarter had declined 20.6% YoY due to demonetization. b) Exports grew 3.9% YoY to INR8.8b, with the EBIT margin expanding 430bp YoY to 8.7%. This is on a high base of 42.6% growth in 3QFY17. EBITDA margin expanded 180bp YoYto 10.2%, led by gross margin expansion of 160bp YoY to 14% (est. of 13.5%).

ICICI Securities Ltd | Retail Equity Research Talwalkars had made an announcement of a de-merger on November 24, 2016. The ratio was one share of Talwalkar Lifestyles (TL) for every share of Talwalkar Better Value Fitness (TBVF). The stock has turned ex-date today while the record date for the same is March 28, 2018. Consequently, Talwalkar's share price, as per yesterday's closing price, has dropped to | 198/share from | 242/share. Hence, now our target price also stands revised to | 215/share for Talwalkar Better Value Fitness....

Veer Energy has seen strong pick up in order book and expected to see translation into execution in second half of FY18 and beyond. The company has forayed into solar roof tops along with wind and hybrid power plants. It has completed wind energy projects totaling 250 MW with another 40 MW projects under development from an acquisition of land to...

Arcotech Limited has been promoted in 1981 for manufacturing Non-Ferrous Engineering products produces all Non-Ferrous alloys i.e. Copper, Brass, Phosphor Bronze, Nickel Silver, Nickel Brass, Cupro Nickel, Aluminium Bronze, Tin Bearing Copper and Silver Bearing Copper etc. These are produced in the form of semis like ingots, strips, sheets, plates, foils, bus bars, rods as well as coin blanks, key blanks, terminals, connectors, etc. Arcotech operates out of its state of the art manufacturing facility located at Bawal, Haryana with a total installed capacity of 30,000 MTPA & has one of the largest capacities of Copper Based non-ferrous semis & is the only player to India to have all the 4 casting methods...

Deepening Distribution Parle Products tie up a kicker, MANBs Growing Market Share, Robust Financial Growth to continue over FY17-20E, MANB sweetly positioned in the Non-Carbonates/ Juice Drinks segment which is growing at 2x of Carbonates

Deepening Distribution Parle Products tie up a kicker, MANBs Growing Market Share, Robust Financial Growth to continue over FY17-20E, MANB sweetly positioned in the Non-Carbonates/ Juice Drinks segment which is growing at 2x of Carbonates

We are positive on the company given that:-

Strategic Synergies in FMCG Sector to Augur Revenue: Manpasand Beverages has registered a 65.7% increase in its bottom line in Q3FY18. Revenues have grown by 39.7% due to growth in both its flagship brand Mango Sip and Fruits Up. Revenue is expected to grow at a CAGR of 36.5% over 2 years and margins are expected to strengthen on declining sugar prices, increasing distribution channelsand capacity utilization.

Manpasand Beverages reported steady Q3FY18 result with Net sales and Net profit growth of 39.7% and 65.4% on yoy basis. Operational margin was impacted by surge in material cost and higher promotional expenses; however PAT improvement was supported by lower depreciation cost.

MANB's 3QFY18 revenue increased 39.7% YoY on a like-to-like basis (after netting off excise of INR37m from revenue of 3QFY17) to INR1,431m (est. of INR1,393m). EBITDA margin shrunk 130bp YoY to 18.7% (est. of 18%) in 3QFY18, led by an increase in raw materials cost (+250bp to 60.8% of net sales). However, other expense and employee cost declined 60bp and 40bp YoY to 16.3% and 4.3%, respectively. EBITDA grew 30% YoY to INR267m (est. of INR251m) in 3QFY18. Accordingly, adj. PAT grew 65.5% YoY from INR72m to INR120m (est. of INR103m).

Adlabs Entertainment Ltd. (AEL) reported mixed set of numbers with higher than expected footfalls in Theme Park and Water Park which was partly offset by fall in ARPU. EBITDA margin in the quarter improved on the back of various cost cutting measures. The company's plan to monetize excess land and selling of Novotel business is on track, we expect the...

Maintain BUY with a TP of Rs 1,090 (18x Dec-19E+ Rs 100/sh for Solara + Rs 30/sh for biopharma). Our visit to Strides Shasuns (STR) Australian operations has re-enforced our confidence that the business is on strong footing in the region and has every ingredient in place to make it a sustainable cash generating business in the long run. From a robust pipeline and deep market access to now developing manufacturing capabilities, STR has put into place all the requisite business drivers. Our note describes dynamics of the Australian pharma market (APM) and STRs position within.

Maintain BUY with a TP of Rs 1,090 (18x Dec-19E+ Rs 100/sh for Solara + Rs 30/sh for biopharma). After hiving off/divesting two businesses, API and India branded, Strides Shasun (STR) reported its 3QFY18 results focusing on the continuing businesses in the US, Australia and Africa (including Institutional business). The top-line grew ~3% YoY to Rs 7.5bn, EBITDA margin came in at 16.4% and reported PAT was Rs 852mn. The spend on consumer healthcare franchise in the US of Rs 120mn, steep decline in the institutional segment due to postponed orders in anti-malaria, top-line remained muted while margins shrunk 300bps YoY.

STR recently received final approval for the generic version of Sustiva (Efavirenz) 600mg tablet, which hasa market size of ~USD115m. The only other company having final approval for this product is Mylan - it had received final approval in February 2016 (with 180-day exclusivity post approval) and the product was launched on 1 February 2018. Final approval and subsequent launch by STR implies that the delay in launch by Mylan has forfeited its exclusivity. 4-5 other companies have also filed for this product. Considering the competitive dynamics (currently only a two-player market for the product), we expect STR to garner USD7-8m from this product on an annualized basis. In our view, this is an interesting opportunity, given the low base of US sales for STR.

We reduce our sales estimates by 25%/29%/28% and PAT estimates by 61%/35%/28% for FY18/19/20 to factor (1) demerger of commodity API business, (2) lower than expected operating margin in3QFY18, and (3) delay in procurement with respect to institutional business.There is a risk of increased price erosion in recently-launched molecules;however pipeline remains robust for better growth, subject to approval. We value STR on sum-of-the-parts (SOTP), valuing the p harma business at 18x12M forward earnings (industry average P/E multiple for midcap pharma)and Solara at an EV of 8x (from 12x earlier to factor commodity nature of API business) FY19E EBITDA to arrive at a price target of INR989. Reiterate Buy

Maintain BUY rating with a TP of Rs 980 (16x FY20E + Rs 30/sh for biopharma). After the proposed merger of Apotexs Australia business, with almost 50% market share, STR will become the largest generic player in the region. It will also gain the priority access to 58% of Australian pharmacies. Till now, three large generic players have controlled more than 78% generic market and pharmacy reach had become the major barrier for any new entrant. With this merger, the market is likely to become more opaque.

ICICI Securities Ltd | Retail Equity Research Asset quality remained healthy with flattish GNPA at | 57519 crore & NNPA at | 34076 crore. Led by growth, GNPA & NNPA ratio declined by 119 bps & 89 bps to 12.11% & 7.55%, respectively. Slippage came lower at ~| 3174 crore vs | 3460 crore in Q2FY18 NII growth came at 6.9% YoY to | 3989 crore. Other income grew 22.6% YoY to | 3082 crore, led by stake sale in home loan subsidiary. Advances surged 17% YoY, led by 22% YoY growth in domestic book...

Carbon Products EBITDA/tonne at Rs8,426 (+125.6% YoY, +11.8% QoQ) was ahead of our forecast. Segment EBTIDA grew to Rs6.4 bn (+104.1% YoY, +1.2% QoQ) despite fall in volumes to 0.7 mn tonne (-9.2% YoY, -10.0% QoQ). In light of better than expected Carbon Products profitability and anticipated higher spreads for CPC/ CTP, we raise our CY18 margin estimates. We maintain BUY rating with a revised target price of Rs522 (earlier Rs418)....