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July sales up 5-6%, no trade inventory build-up, MT/CSD under pressure. We are increasing FY21/22/23 EPS estimates of Dabur India by 8%/5.7%/4.3% following sales PAT beat in 1Q mainly led by Rs1.4bn incremental sales from new launches in Sanitizers and Healthcare products. Dabur is currently riding on rising consumer demand for immunity boosters and hygiene products...

Gujarat State Petronet's (GSPL) Q1FY21 profits were slightly better than our estimates owing to lower than expected gas transmission expenses and other expenses. Revenue declined by 9.4% YoY to Rs 4.6bn due to fall in volume by 12.9% YoY to 33.3mmscmd. EBITDA declined by 13.9% YoY to Rs 3.5bn, whereas PAT declined by 3.3% YoY to Rs 33.3bn. Implied tariff remained flattish YoY to Rs1.3/scm. Lower volume was primarily led by 55.5% drop in CNG volumes to 4.7mmscmd followed by 16.4% drop in Refinery/Petchem to 11.3mmscmd and 32% drop from fertilizers industry to 2.66mmscmd. However, on a positive note power sector offtake saw a sharp rise of...

DCB Bank's asset quality remains stable as standstill benefit led to lower slippages during the quarter. Bank's credit growth further slowed down to 4% vs 8% (FY20). NII grew by 1% YoY while PAT de-grew by 2% YoY led by higher provisions (up 105% YoY; Rs.320mn for Covid-19 provisions). Cost-to-income ratio on a QoQ basis has declined by 81bps to 50.3% on account of decline in Opex sequentially. Bank reported 26%book under moratorium which declined from 60% under phase 1. Management guidance for upto 5% decline in the Advances has made us revise the estimates on credit growth at -5% for FY21...

INDIA l Institutional Research l Automobile l 22 July 2020 Swaraj Engines l REDUCE l TP: 1,302 Revving dark horse has galloped, awaiting a fresh race Swaraj Engine's (SEL) 1QFY21 result seems dull mainly on the account of no production in April 2020 owing to the lockdown. Post the opening of plant on 5 th May, SEL has been nearing ~100% capacity utilisation. Factors like India's reservoirs' level breaching the 10-year average, on-going healthy monsoon and recent kharif MSP hikes are buoying the domestic tractor demand. While a lower...

Jyothy Labs Ltd. (Formerly known as Jyothy Laboratories Ltd.) reported its Q4FY20 results recently. The key highlights are as follows: 1. The consolidated revenue declined by 24% YoY to `393Crs due to significant decrease in Household Insecticides (HI) and Personal Care business. Nationwide lockdown due to...

The company targets ~INR1b revenue or higher for the Pioneer categories over the next The Core business (Fevicol and sub-brands Fevikwik, M-Seal, and Fevicryl) is likely to grow at 12x GDP. This means that and Bazaar (C&B;) and B2B products over the next three to four years, by the end of which the Growth and Pioneer categories are likely to comprise around half of sales. The companys clutter-breaking marketing is also Compared with the erstwhile approach of focusing on a multitude of geographies, including the US and Brazil, in recent years, the company has decided to focus on certain emerging markets with high growth potential and where an India-like All the Pioneer category brands are in the nascent categories; thus, the company is trying to grow the categories using innovation and technology and by leveraging on R&D; is gaining increasing importance, with a nearly 2.5x increase seen in R&D; spends over the past five years.

MSIL Q1FY21 results were below our and consensus estimates at operating and PAT level. EBITDA loss came at Rs8.63bn vs our estimated loss of Rs633mn. Reported loss was Rs2.5bn vs our estimated loss of Rs573mn. We believe lockdown and risk aversion has significantly impacted footfalls at dealerships. We expect demand for 4W to remain muted even post lockdown and lower replacement demand. We expect 4W industry to decline ~15-18% in FY21 and more demand for pre-owned cars, subscription based models and small cars. We cut our FY21 volume/revenue estimates by 7%/12% respectively and expect recovery in FY22 with 11%/15% increase in volume/revenue. We change our rating to REDUCE (earlier...

Insulin Glargine (Semglee) is Biocon-Mylans third biosimilar to be approved by the USFDA in a span of 24 months. Considering two competitors (Innovator- Sanofi; Biosimilar by Eli Lilly/Boehringer Ingelheim team; EL/BI) are already in the market and Biocon-Mylan are the third to get USFDA approval with other peers still under clinical phase, we expect Biocon (BIOS) to garner USD130m on an annualized basis from this opportunity, post commercialization in 2HFY21. BIOS recently received the USFDAs approval for its Insulin Glargine (biosimilar version Semglee) for both versions (vial and pen). Further, BIOS-Mylan has recently won a favorable ruling from the US Patent and Trial Board (USPTAB) in the patent litigation against Sanofi for 4 device patents for Lantus SoloSTAR. Moreover, in Mar20, the US district Court of New Jersey ruled that Sanofis 844 patent (product patent) was not infringed by Mylans Insulin Glargine product.

Creates COVID reserves of Rs400mn; remains comfortable on solvency HDFC Life's overall APE grew by 18% YoY driven by decent growth in NBP & regular premiums. Product mix on Ind. APE basis shifted to Par (traction from SPar Advantage) from NPar (slowed SP product) which also likely dragged margins lower sequentially to 25.9% in FY20 from 26.6% in 9M20 and also conservatively increasing persistency & mortality assumptions. Higher protection mix, diversified product suite & strong technology adoption enables to retain continued business growth but margins trajectory will be...

While the structural investment case remains intact, the recent earnings track record, lower ROCEs (in the mid-20 levels) v/s consumer peers, and valuations of 54x FY22 do not leave much room for us to turn constructive from a one- Overall gross margins expanded 210bp YoY to 53.5%. Revenue from domestic subsidiaries declined 82.2% YoY to INR295m in 1QFY21; EBITDA stood at INR308m v/s INR176m in 1QFY20. The management expects this to continue in the near term, with the caveat that these low levels are unlikely to sustain as the demand Improvement in the demand scenario is likely to lead to positive topline and FY2022 is likely to be muted. While the structural investment case remains intact, the recent earnings track record, lower ROCEs (in the mid-20 levels) v/s consumer peers, and valuations of 54x FY22 do not leave much room for us to turn constructive from a one-year with TP of INR1,335 (50x Jun22 EPS).