Company Update

We initiate coverage on Suzlon Energy Ltd as a BUY with a price objective of Rs 42.8 which represents a potential upside of 115% from the CMP of Rs 19.9

Inox Wind (IWL) reported yet another weak quarter as execution got impacted due to demonetisation. ~200MW of WTGs were manufactured but could not be commissioned, which led to miss in estimates for the quarter. With improvement in execution, the mgmt expects 4QFY17E to be a disproportionately strong quarter.

Performance Back on Track; Concerns still Prevail MBL Infrastructures (MBL) has managed to back on track in 3QFY17 following a worst ever performance in 2QFY17. Despite 18% YoY (+52% QoQ) decline in revenue, its operating profit improved by 8% YoY to Rs708mn mainly owing to 295 bps YoY improvement in operating margin to 12.5%. Notably, interest cost witnessed a sharp up-tick (+77% YoY and +93% QoQ) due to rise in working capital loans for which its net profit contracted by 43% YoY to Rs135mn. We have downwardly revised our earnings estimates by ~16% for FY18E mainly to factor in likely revenue loss due to delay in captive HAM projects and surging...

Intellect Design Arena (INDA) posted strong Q4 numbers, with a 11.3% QoQ jump ( 11.9% CC) in USD revenues (USD 37.4mn vs est of USD 35.0mn). The growth in revenue was owing to deal wins, higher licence fees and 16 go-lives in the quarter.

Intellect Design Arena (INDA) disappointed this quarter with a 2.7% QoQ (-2.4% CC) drop in US$ revenues (US$ 33.6mn vs est of US$ 37.0mn) and poor cost management. The dip in revenues was largely due to the deferral of two large deals, as banks in the US and Europe are largely keeping their spends on hold. Despite amplified pre-sales efforts, the sales cycle is taking longer to fructify.

Vikas Ecotech Ltd., (VEL) posted 4QFY17 result with a revenue growth of ~6.5% / ~21.9% YoY / QoQ, respectively, to Rs. 1,033mn led by normalization of demonetization effect and increase in manufacturing activity. The manufacturing revenue contributed 87% vs 83% (Q4FY16) of total sales to Rs.896.5mn and trading revenue contributed 13% vs 17% (Q4FY16) to Rs.136.5 mn. EBITDA stood at Rs.208mn with margins of 20.2%, an expansion of ~ -106 bps / ~228 bps YoY/QoQ, respectively. VEL's recurring PAT was Rs 154mn vs Rs 106mn in 4QFY16, a YoY/QoQ growth of...

Lower than expected R&D costs (12.9% of sales vs. 14% expected) led to a surprise beat in margins (27.1%) in 3QFY17. Boosted by this, earnings grew ~20%YoY to Rs 6.3bn, despite higher taxes during this quarter. Revenue performance continued to be strong and in line with estimates, growing at ~26% to Rs ~45bn. US sales grew ~58% YoY, and notably, ~9% sequentially on a high base.

Paradip refinery set for a stellar FY18: IOCL's 15MTPA Paradip refinery's utilisationhassteadilyincreasedto96%inMarch2017from32%inApril2016. Withtherefineryoperationsstabilisedfully,thestageissetfornearoptimum utilisation in FY18E against only 55% utilisation for FY17. We tweak IOCL's refining volumes and GRM assumptions to factor in higher contribution from...

EBITDA margin contracted by ~588 bps YoY: VEL posted EBITDA of Rs 152mn a YoY/QoQ growth of -24.5%/ 1.4% respectively with margin contraction of ~588bps YoY to 17.9% in 3QFY17 led by reduced contribution from organotin segment and increased low margin product volumes impacting high margin businesses. We expect, VEL to expand its EBITDA margin by ~246bps over FY16-FY19e mainly due to increase in the contribution from organotin over medium to long term, high margin products...

ff Higher Input & EPC Cost Drags Operating Margins: Though INXW's EBITDA rose by 13% YoY to Rs18.4bn, EBITDA margin declined 127bps YoY to 15.9% due to higher raw material and EPC cost. Further, owing to higher interest cost on the back of increase in receivables days and higher depreciation cost, INXW's...

Zee Learn Ltd. (ZLL) Q4FY17 reported revenues at INR 60cr (up ~20% YoY) in line with our estimate. The sales growth was led by healthy growth in student enrollment in Mount Litera (K-12) Schools

We believe that despite a double-hit Demonetisation and GST UFO Moviez' InCinema advertisement is set for a 30%+ growth in FY18/19. We expect higher impact of GST in Q1FY18 vs. our earlier expectation and forecast a 13.2% YoY growth vs. 19.2% earlier. However, our FY18 forecast remains largely in-tact (-0.5%). Q1 has been between 16.6% and 23% of the full year advertisement revenue in FY15-17 and is 18.8% of our revised FY18 forecast. We largely maintain our FY18/19 revenue/EBITDA/EPS forecast. We maintain BUY with TP of 690 based on EV/EBITDA of 9x FY19E. Key Highlights and Investment Rationale...

Over-all revenue growth was a beat due to higher hardware sales. EBITDA margin of 31.2%, 490bps YoY, was a miss. However, EPS of Rs7.1, +7.7% YoY, was a beat aided by lower tax rate. UFO Moviez has maintained its FY18 guidance for a 30% advertisement revenue growth. Given the pick-up in CARVAN business and alliance with United Media Works, we are confident of UFO Moviez achieving the guidance and forecast a 34% YoY growth. We largely maintain our FY18/19 revenue/EBITDA/EPS forecast. We rollover to FY19E and value UFO Moviez at 8x EV/EBITDA (9x FY18E earlier). We maintain BUY with TP of 690 (from Rs675)....

growth was a beat due to higher hardware sales. EBITDA margin of 29.1%, -150bps YoY, was a miss due to one-off costs and higher hardware sales. EPS of Rs4.9, -19.6% YoY, was a slight miss. FY17 advertisement revenue growth guidance of 20% YoY is in-line with our forecast. UFO Moviez now expects Caravan Talkies to achieve cash breakeven in Q1FY18 vs. H2FY17 earlier. We fine-tune our FY17/18E revenue by +2.1%/+2.8% and EPS by +0.5%/2.1%. We maintain that UFO Moviez has significant re-rating opportunity on the back of - 1) healthy earnings growth (we forecast FY16-19E CAGR of 15%), 2) improving RoE (18%+ from FY18E onwards up from 13% in FY16), 3) FCF yield of 7%/9.4% in FY17/18E and 4) net cash B/S....

Suryalakshmi Cotton Mills Ltd. has reported its Q3FY17 result with de-growth in revenue of ~20.7%/27.8% YoY/QoQ, respectively, to ~Rs. 1450 mn. The EBITDA of the Company stood ~Rs. 167 mn, a decrease of ~38.2%/44.8% YoY/QoQ, with...

We maintain BUY on UFO Moviez with revised TP of Rs675 based on EV/EBITDA of 9x FY18F. For Q4FY17 we forecast flattish advertisement revenue YoY, impacted by demonetization. We expect this to impact the profitability and forecast EPS of Rs6.5, +1% YoY. However, we remain bullish about the FY18/19 growth in In-cinema' advertisement revenue. This has been reinforced by the recent deal with United Media Works. We await more details on the deal, which would be an upside trigger to our forecast. We factor flattish advertisement revenue in Q4FY17 and cut FY17/18E revenue by 1.5%/1.8% and EPS by 4.9%/5.6%. However, we maintain that UFO Moviez has significant re-rating...

Precision Camshaft (PCL) is one of the leading manufacturers of passenger vehicle camshafts globally with dominant 70% share in the domestic market.

Ujjivan Financial Services (Ujjivan) has the widest geographical network, impeccable Sector: Small Bank management pedigree and superior competitive positioning in micro lending, making it the most optimal candidate for transformation into a small finance bank or SFB. CMP: Rs444 Such an evolution provides an opportunity to build a strong, sticky and granular deposit base which can insulate its balance sheet from liquidity risk arising from any Target Price: Rs570...