*Prakash Industries Ltd.* | *CMP* Rs. 85 | *M Cap* Rs. 1458 Cr | *52 W H/L* 105/26
(Nirmal Bang Retail Research)
*Result improved*
Revenue from Operations came at Rs. 1032 Cr (15.8% QoQ, 59.4% YoY) vs QoQ Rs. 891 Cr, YoY Rs. 647.3 Cr
EBIDTA came at Rs. 103.6 Cr (18.6% QoQ, 29.1% YoY) vs QoQ Rs. 87.4 Cr, YoY Rs. 80.3 Cr
EBITDA Margin came at 10% vs QoQ 9.8%, YoY 12.4%
Adj. PAT came at Rs. 51.7 Cr vs QoQ Rs. 31.3 Cr, YoY Rs. 18.1 Cr
Quarter EPS is Rs. 3
Share is trading at P/E of 15.3x TTM EPS

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*Kolte Patil Developers Ltd.* | *CMP* Rs. 233 | *M Cap* Rs. 1771 Cr | *52 W H/L* 286/133
(Nirmal Bang Retail Research)
*Result improved* New Area sales came at Rs.510.9cr vs QoQ Rs.331.6cr yoy Rs.358.1cr
Revenue from Operations came at Rs. 296.1 Cr (55.6% QoQ, 33.5% YoY) vs QoQ Rs. 190.3 Cr, YoY Rs. 221.7 Cr
EBIDTA came at Rs. 45.2 Cr (-0.7% QoQ, 1080.7% YoY) vs QoQ Rs. 45.5 Cr, YoY Rs. 3.8 Cr
EBITDA Margin came at 15.3% vs QoQ 23.9%, YoY 1.7%
Adj. PAT came at Rs. 20.9 Cr vs QoQ Rs. 22.5 Cr, YoY Rs. -16.5 Cr
Quarter EPS is Rs. 2.7
Share is trading at P/E of 16.2x FY22E EPS

*Aurobindo Pharma Ltd.* | *CMP* Rs. 1018 | *M Cap* Rs. 59649 Cr | *52 W H/L* 1064/655
(Nirmal Bang Retail Research)
*Result is below expectations*
Revenue from Operations came at Rs. 6001.5 Cr (-5.7% QoQ, -2.5% YoY) vs expectation of Rs. 6365.8 Cr, QoQ Rs. 6364.9 Cr, YoY Rs. 6158.4 Cr
EBIDTA came at Rs. 1274.7 Cr (-6.9% QoQ, -5% YoY) vs expectation of Rs. 1337.8 Cr, QoQ Rs. 1368.6 Cr, YoY Rs. 1342.4 Cr
EBITDA Margin came at 21.2% vs expectation of 21%, QoQ 21.5%, YoY 21.8%
Adj. PAT came at Rs. 800.5 Cr vs expectation of Rs. 847.7 Cr, QoQ Rs. 132.6 Cr, YoY Rs. 837.6 Cr
Quarter EPS is Rs. 13.7
Share is trading at P/E of 16.9x FY22E EPS

*Marksans Pharma Ltd.* | *CMP* Rs. 74 | *M Cap* Rs. 3029 Cr | *52 W H/L* 82/18
(Nirmal Bang Retail Research)
*Result has improved*
Revenue from Operations came at Rs. 330.2 Cr (-7.9% QoQ, -1.5% YoY) vs QoQ Rs. 358.4 Cr, YoY Rs. 335.3 Cr
EBIDTA came at Rs. 95.4 Cr (4.7% QoQ, 37.8% YoY) vs QoQ Rs. 91.1 Cr, YoY Rs. 69.2 Cr
EBITDA Margin came at 28.9% vs QoQ 25.4%, YoY 20.6%
Adj. PAT came at Rs. 79.5 Cr vs QoQ Rs. 58.9 Cr, YoY Rs. 42.7 Cr
Quarter EPS is Rs. 1.9
Share is trading at P/E of 12.7x TTM EPS

*Elecon Engineering Q4FY21 Concall Update*

*Outlook: Positive in long term*

*MHE Division continues to bleed; H2 could witness turnaround as legacy orders*
• MHE has been undergoing stress since many years. Reduced contract work and focused more on products.
• MHE business would not need expansion even if turnover were to double.
• Legacy orders are pulling down profitability in MHE and are expected to be over by September post which the profitability will bounce back. Thus topline would remain the same as last year but bottomline will bounce back strongly.
• Utilisation is negligible and practically stopped using the facilities as it is more costly to function at low scale. Co is transferring its MHE orders to gear division or getting it outsourced/subcontracted.

*Gear (transmission) Division witnesses steady growth*
• Gear division has a navy order which is helping the co’s performance. Will finish all 7 ship sets by end of FY22.
• Utilisation is at 50-55%.
• Exports forms 20% and is likely to increase to 33-35% in the long term.
• Exports turnover was the highest ever at Rs. 100 Cr. It has higher growth and margins. Focus is more on US & Europe. Sales in US are likely to witness good growth. Thus US subsidiary performance will be good in future.
• For each order, the clients receive bids from around 3 gear companies. Relationship and past track record comes into play here.
• Transmission division EBIT margin increased as co carried out various cost cutting initiatives. These margins are sustainable.

*Other highlights*
• Order Inflows in Gear division wasRs. 565 Cr with order backlog of Rs. 380 Cr
• Order Inflows in MHE division was Rs. 135 Cr with order backlog of Rs. 100 Cr
• Revenue mix between MHE/Gears should remain at 15/85 ratio.
• Transmission debtor days are at 90-100 days.
• Co has passed on most of the increase in steel prices.
• Co is focusing more on profitability than turnover.
• Aim is to reduce the debt first and then reduce pledged shares.

Stock is trading at 10.3x PE on Q4 annualised EPS.

*Max Healthcare – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*

The stock is trading at 37.7xFY22E consensus earnings

• *Q1FY22 - High occupancy (avg 88% in first 2 months) due to covid – it is likely to compensate the lower ARPOB*
• 1200 cr fund raised through QIP
• Q4 – 20% capacity was reserved for Covid where occupancy went down to 35% where non-covid occupancy was at healthy levels of ~78%
• Q4 – Occupancy was lower at 70% vs avg 76% in Q3 due to lower covid cases, farmer protests in & around NCR; however due to higher non-covid sales, ARPOB increased to Rs 53.9k, higher 11% QoQ – also higher international patients and higher insurance backed patients helped in inching up the ARPOB
• Medical tourism showed recovery in early part of the quarter and reached almost 60% of pre-covid levels
• Registered Rs 108 cr structural savings in FY21
• *35-37% capacity is earmarked for Govt, which the company intends to bring down to 15% over 2.5 yrs. These beds have much lower ARPOB (~40% less than the non govt beds) hence it remains a major factor to increase the overall ARPOB*
• Brownfield Capex over next 4-5 yrs – Rs 1300-1400 cr
• Nanavati at 10% EBITDA margins; Saket – 27%
• FY22 Capex Rs 100-150 cr maintenance capex – including brownfield the company is likely to of Rs 300-350 cr capex
• Max Healthcare is bullish on diagnostics sector and that’s decided to shift My@lab business (diagnostics biz of the company) to a separate subsidiary and likely to scale it up further
• The company has around 50000 vaccination capacity per day and is utilized depending on vaccine availability. This may act as strong revenue and profit area for near term.

*Glenmark Pharma – Q4FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Neutral*
Glenmark Lifescience’s (API company) IPO is near term trigger which would unlock value for shareholders as well as help in reducing the parent’s company’s debt as well

The stock is trading at 17.2xFY22E consensus earnings


• For FY22 – the company plan to file 18-20 ANDAs including 5-6 filings which got delayed in FY21 due to the pandemic. This includes 4-5 filings from Monroe.
• Ryaltris will be commercialized in Russia in Q1 FY22.
• The company is witnessing recovery in Russia (which de-grew by 7.7% in FY21) on sequential basis
• Europe - For the financial year, the European region signed 21 major contracts for in-licensing products in the region. The region is expected to benefit from significant product launches including products like Tiotropium Bromide Dry Powder Inhaler and Ryaltris in FY22
• Ryaltris - Glenmark submitted responses to European agency queries, which enabled Glenmark to conclude the Decentralized procedure paving the way for potential approval of the product and expected launch of RyaltrisTM in the EU in FY22.
• Forex loss – Rs 5.8 cr in other exps; Rs 75 cr forex loss in FY21
• Gross Debt – Rs 4687cr
• Ichnos – can see some partnerships in FY22
• R&D in FY22 – should be similar to FY21 in absolute terms – it was 11% of sales in FY21 – likely to be 10-11% in FY22
• Tax – likely to be 29-30%
• In US - 3 launches are lined up in Q1 – for FY22 targeting 8-10 launches
• *Topline is expected to grow at 10-12% in FY22*

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