https://m.freepressjournal.in/article/business/easemytrip-eyes-100-growth-this-year-as-tourism-demand-recovers/50a9fd7c-4e41-42e1-9bb0-394ab4785823?

*Business News Headlines*🇮🇳

*Economic Times*

Ø EaseMyTrip aims 100% growth this year
Ø Jet Airways owes employees between Rs 3 lakh and Rs 85 lakh. New owners want to pay Rs 23,000 to each
Ø Don't rely on markets to see inflation threat: Ex-US Treasury sec
Ø FPIs pull out Rs 2,249 crore from Indian equities in July so far
Ø Global boom in house prices becomes a dilemma for central banks
Ø PNB Housing's bond investors not worried, yields drop up to 211 bps
Ø Indian tea exports likely to fall nearly 15 per cent in 2021
Ø India poised for double-digit growth this fiscal; disinvestment climate looks better: Niti VC
Ø FPIs turn bullish on insurance stocks amid revival in premium collection
Ø Govt identifies items for customs exemptions review, seeks industry views
Ø Swift recovery expected due to limited impact of lockdown on economy: Survey

*Business Standard*

Ø Vedanta among 11 bidders vying for Videocon's Brazil assets worth $2 bn
Ø Hero Electric Vehicles to invest Rs 700 crore in business expansion by 2025
Ø Maruti shifts Dzire production to Gujarat to create space for new launches
Ø India's coal import rises 20 pc in May; volumes may be subdued in monsoon
Ø Govt moves deadline for legal advisors to bid for managing IDBI Bank sale
Ø 'Christie fiction': Biocon chief slams Sebi order on Allegro Capital
Ø SPARC raises over Rs 1,110 cr; issues warrants to Dilip Shanghvi, others
Ø Sovereign Gold Bond Scheme IV: Issue price fixed at Rs 4,807 per gram
Ø Amid consolidation, gains for realty index may continue in the near term
Ø Investors raise exposure to equity funds amid pandemic: Cafemutual Survey

*Financial Express*

Ø High iron-ore, pellet prices forcing small secondary steel units to close shops
Ø Real estate investment tops $1.35 bn in Q2 2021, shows nine-fold increase YoY: JLL
Ø India's fuel demand rebounds in June
Ø Six of top-10 valued companies lose Rs 92,147 cr in market valuation
Ø Cement – Q1FY22 Preview: Resilient performance expected in quarter
Ø Sebi puts in place guidelines on valuation of securities with multiple put options
Ø Clean Science IPO subscribed 93.41 times on final day of subscription
Ø GR Infraprojects IPO subscribed 102.58 times
Ø Current environment is supportive of further equity gains: UBS
Ø Stock markets remain resilient despite covid-19; use corrections as opportunities

*Mint*

Ø Tata Motors rating – Buy: Semiconductor shortage to hit volumes
Ø Earnings kick off with sky-high forecasts, record stock market
Ø Ujjivan to seek RBI's nod for merger of holding company with itself
Ø GST authorities detect fake invoices worth ₹551 crore
Ø 'India to see double-digit growth in FY22; disinvestment climate looks better'
Ø Investment advisors cannot take power of attorney from clients: Sebi
Ø Indian banks to see bad loans peaking post FY23: Fitch
Ø ISG’s outlook likely to keep the hopes alive for IT stocks
Ø Numbers to watch this week: Infosys results, inflation, China GDP
Ø India’s SJVN pitches for more hydropower projects from Nepal
Ø Equitas to merge holding company with small finance bank

Insider Trades

Oriental Hotels: Promoter Dodla Venkataramani sold around 33,268 shares on May 25.

Mold-Tek Packaging: Promoter Mold-Tek Technologies bought 81,374 shares between June 30 and July 2.

*Avenue Supermarts Ltd.* | *CMP* Rs. 3379 | *M Cap* Rs. 218892 Cr | *52 W H/L* 3425/1900
(Nirmal Bang Retail Research)
*Result marginally below expectation*
Revenue from Operations came at Rs. 5031.8 Cr (-31.1% QoQ, 31.3% YoY) vs expectation of Rs. 5032 Cr, QoQ Rs. 7303.1 Cr, YoY Rs. 3833.2 Cr
EBIDTA came at Rs. 221.2 Cr (-64.1% QoQ, 103.2% YoY) vs expectation of Rs. 277 Cr, QoQ Rs. 616.6 Cr, YoY Rs. 108.9 Cr
EBITDA Margin came at 4.4% vs expectation of 5.5%, QoQ 8.4%, YoY 2.8%
Adj. PAT came at Rs. 115.1 Cr vs expectation of Rs. 159.8 Cr, QoQ Rs. 435 Cr, YoY Rs. 49.6 Cr
Quarter EPS is Rs. 1.8
Share is trading at P/E of 133.8x FY22E EPS

*Consumer Discretionary*
*Second wave puts a halt on recovery of discretionary companies*
*Q1FY2022 Results Preview*
*Sector: Consumer Discretionary*
*Sector View: Positive*
Consumer discretionary companies posted strong operating performance in Q4FY2021 with recovery in sales led by improving footfalls and stark improvement in profitability because of better operating leverage and cost-saving initiatives undertaken by companies. Revenue of most branded apparel, footwear, and retail companies recovered to 100% in Q4 mainly on account of strong pent-up demand. However, jump in COVID-19 cases from fag-end of March and pick-up in April-May led to many states getting into the lockdown mode, putting restrictions on operations of non-essential stores, restaurants, and internal mobility.
*Outlook*
*Strong recovery anticipated by H2FY2022:* Strong recovery is expected with receding COVID-19 cases from the fag-end of Q1FY2022 (although Q1 is expected to disrupted). The company expects the festive season and deferred wedding season to again bring in cheers for branded apparel and retail companies with higher footfalls and higher ticket size sales, which would drive sales for the apparel and jewellery segment.
*Valuation and preferred picks* We prefer companies having a stable balance sheet, pan-India presence, and strong brand recognition. Thus, we like Trent and ABFRL, which are likely to see faster recovery post normalisation of the pandemic situation. ABFRL will also gain from its steps undertaken to deleverage its balance sheet. Titan will continue to gain market share from small players due to sustained shift to strong brands, sustained new production addition, and its focus on improving penetration in tier 2/3 markets.
*Key risk*
Any slowdown in recovery in discretionary demand or frequent lockdowns affecting store-level operations due to spike of COVID-19 cases would act as a key risk to our earnings estimates.
*Leaders in Q1FY2022 :* JFL, HimatSingka, KPR Mill, and Relaxo Footwear
*Laggards in Q1FY2022:* Wonderla Holidays
*Preferred Picks:* Titan, ABFRL, KPR Mill, HimatSingka, JFL, and Trent

*Agri Inputs and Speciality Chemical*
*Steady growth ahead for agri-input space; specialty chemical players to benefit from low base*
*Q1FY2022 Results Preview*
*Sector: Agri Inputs and Speciality Chemicals*
*Sector View: Positive*
We expect a strong 23% y-o-y earnings growth for our universe of agri-input companies supported by a 12.8% y-o-y revenue growth and 69 bps y-o-y improvement in margins. The revenue growth is likely to be supported by market share gain for large players (such as UPL, PI Industries and Sumitomo Chemical India) in the domestic market and strong growth in exports led by elevated crop prices globally. We expect a stable demand environment for agri-inputs in domestic markets despite lower kharif acreage and high base effect of last year.
*Outlook*
After a good rabi season and higher procurement by government, the early monsoon and expectation of above-normal rainfall will be beneficial for kharif sowing. In addition, higher MSPs leading to better crop prices would bode well for the upcoming kharif season. This would help domestic agrochemical companies to report strong growth (monsoons during July to September 2021 will be crucial for earnings of domestic focused agri-input players) and favourable sourcing policies of global companies (China plus One factor) would drive market share gains in the exports segment.
*Valuation*
Conducive government policies, product innovation, massive export opportunity (CRAMS) would help the sector witness sustained, high double-digit growth over the next 2-3 years. Structural revenue growth drivers (higher domestic demand, rising exports and import substitution) and potential for margin expansion (rise in share of high-margin value-added products) would help sustain high valuations of quality companies (like PI Industries and Sumitomo Chemical India) in the sector. Moreover, companies have raised money through QIPs, which would be utilised for capacity expansion and inorganic opportunities, thus boosting growth prospects. Hence, we stay positive on the sector.
*Key Risks* Lower-than-expected sowing for kharif Season and higher raw material price could impact earnings of agri-input companies. Higher raw material cost for speciality chemical might impact margins if they are not able to pass it on to customers. Lower demand offtake for products as a result of a slowdown in economic activity for specialty chemicals may also affect earnings.
*Leaders in Q1FY22:* PI Industries, UPL, Sumitomo Chemical India, SRF, Aarti Industries and Atul Limited
*Laggards in Q1FY22:* Vinati Organics
*Preferred Picks:* Coromandel International, PI Industries, Sumitomo Chemical India, SRF Limited, Atul Limited and Sudarshan Chemical

*Cement/Infrastructure/Building Material/Logistics*
*On a resilient growth path*
*Q1FY2022 Results Preview*
*Sector: Cement/Infra/ Building Material/Logistics*
*Sector View: Positive*
Our cement universe (ex-Grasim) is likely to register strong 51% y-o-y (-15.8%) rise in revenue, led by 44.3% y-o-y rise in volumes (-20.4% q-o-q) and 4.6% growth in blended realisations (+6% q-o-q) for Q1FY2022. Strong cement demand witnessed in Q4FY2021 is expected to be sequentially impacted during Q1FY2022 by weak offtake during mid-April to May 2021 end (led by state-wise restrictions due to COVID-19 second wave), while June witnessed healthy improvement with easing restrictions and rising vaccination. As per our channel check, average pan-India cement prices in Q1FY2022 were up 6.8% q-o-q (up 5.5% y-o-y), which would aid in higher realisations for the sector.
*Outlook*
Structural growth drivers remain unhindered by COVID-19 second wave risk: The government’s focus on increasing infrastructure investments, especially in roads, remains unhindered and is expected to start tendering activities from as early as next month. The rebound seen in property registrations in June 2021 suggests demand improving from the urban housing segment going ahead. We expect the cement sector to benefit from rebound in demand and healthy pricing discipline, which would lead to better control on input costs and maintaining operational profitability.
*Our Call*
*Valuation:* Preferred companies in each sector: We prefer industry leader UltraTech and efficient regional players such as Shree Cements, The Ramco Cements, Dalmia Bharat, and JK Lakshmi Cement in the cement space. In the infrastructure space, we prefer companies having strong order books, low leverage, and distinct execution capabilities such as KNR Construction and PNC Infratech. In the building material space, we prefer companies that are poised to gain market share from unorganised players and have strong cash flow generation capabilities such as Century Plyboards, Greenlam Industries, Greenpanel Industries, and Pidilite Industries. In the logistics space, we prefer asset-light business models such as Mahindra Logistics, TCI Ltd., and TCI Express along with asset-heavy models such as Gateway Distriparks.
*Key risks:* Weak macroeconomic environment and rising interest rates are key risks across three sectors
*Leaders for Q1FY2022:* UltraTech, Dalmia Bharat, Ramco Cements, PNC Infratech, KNR Constructions, Century Plyboards, APL Apollo Tubes, and TCI Express.
*Laggards for Q1FY2022:* Mangalam Cement, Sadbhav Engineering, and Mahindra logistics
*Preferred Picks:* UltraTech, Shree Cement, Grasim, Dalmia Bharat, The Ramco Cements, JK Lakshmi Cement, KNR Construction, PNC Infratech, Century Plyboards, Greenlam Industries, Greenpanel Industries, Pidilite Industries, TCI Express, TCI Ltd., and Gateway Distriparks.

Trading Tweaks

Ex-Date Final Dividend: UCO Bank, Artemis Medicare Services, Rajratan Global Wire, Polycab India, Camlin Fine Sciences, Alkyl Amines Chemicals, Punjab & Sind Bank, Rane (Madras), Dwarikesh Sugar Industries, Bosch, Persistent Systems, Syngene International, Seshasayee Paper and Boards, Thirumalai Chemicals

Price Band Revised From 10% To 5%: 3P Land Holdings, Kingfa Science & Technology (India), Vishal Fabrics

Move Into Short-Term ASM Framework: Sanginita Chemicals, Agro Phos India, IIFL Securities

Move Into Long-Term ASM Framework: Premier Polyfilm, Oswal Agro Mills, Creative Peripherals and Distribution, Nahar Capital and Financial Services

ITC to announce Q1 Result on 24 July

The Board of Expleo Solutions Limited (‘ESL’) and Expleo India Infosystems Private Limited (EIIPL) today announced a Scheme of Amalgamation involving Merger of EIIPL (including its subsidiaries and stepdown subsidiary) into ESL.
The consolidation of the Group Businesses in India in a single listed entity - ESL is expected to enhance business focus, improve synergies
The merger will help ESL in adding fast growing and niche Engineering Design Services business under its umbrella, currently part of Expleo Technologies India Pvt Ltd. And will contribute 23% of merged business revenue.
Post merger the revenue will increase by 86% and PAT by 75% to Rs.560cr and 88cr respectively for FY21. Whereas equity shares will increase by 50% as such merger is EPS accretive.
Consolidated EPS for FY21 works out to Rs.57 post merger on diluted equity. *Positive*

Bulk Deal as on 09-07-21

Asian Granito
- 1.60 Lk @ 177.25 Ashok Kumar Lodha

Granuels
+ 28.56 Lk @ 362.27 BNP Paribas Arbitage

Kitex Garments
- 4 Lk @ 135.05 Gopinath C K

Walchandnagar
- 2.35 Lk @ 70.01 Vistra Itcl Ind Ltd

Total volume handled by Container corporation in Q1 FY22 came at 9.92 lakh TEU Vs YoY 7.33 lakh TEU up 35% and 10.59 lakh TEU QoQ down 6.3%. Neutral

*IDFC Ltd:* Recently RBI has permitted SFBs and their Holdcos to apply for a merger. Although, the final outcome will still depend on RBI as to whether it will provide “no objection” for the said mergers; this development is positive as it shows RBI’s willingness to consider mergers of holdcos with their SFBs and thus this development is also positive in case of IDFC Ltd. As per Internal Working Group’s recommendations of November 2020, IDFC Ltd would first have to exit its AMC business in order to be eligible for applying for merger with IDFC First Bank. This could take some time (we assume a year) as the bank has already been trying to sell the AMC since last three years. Further the entire process of merger could take a couple of years post the sale of AMC. Thus we apply a discount of 40% (20% for time taken to exit AMC & 20% for subsequent merger process) to arrive at fair value of Rs. 80 (50% upside from CMP of Rs. 53).

*Equitas Holdings / Ujjivan Financial Services:* RBI guidelines state that the promoter ownership for SFBs has to be reduced to 40% by the end of 5th year of operations. SFBs had earlier requested RBI to permit merger of Holdcos with their respective SFBs. *RBI has now replied to SFBs stating that SFBs can apply to RBI for amalgamation with Holdcos.* Accordingly, both Equitas & Ujjivan would be taking further steps towards amalgamation. *Final outcome will still depend on RBI as to whether it will provide “no objection” for the said mergers.*
*- This news is positive for holdcos like Equitas Holdings and Ujjivan Financial Services as this development shows RBI’s willingness to consider mergers of holdcos with their SFBs.*
*- Upon applying a 20% discount to both holdcos (to accommodate approx. a couple of years of time taken for final merger) we arrive at fair values for (i) Ujjivan Financial Services at Rs. 290 (42% upside from CMP of Rs. 204) and (ii) Equitas Holdings at Rs. 150 (30% upside from CMP of Rs. 115).*

*Delta Corp Ltd.* | *CMP* Rs. 188 | *M Cap* Rs. 5016 Cr | *52 W H/L* 202/85
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 75.9 Cr (-64.1% QoQ, 57% YoY) vs QoQ Rs. 211.3 Cr, YoY Rs. 48.3 Cr
EBIDTA came at Rs. -27.6 Cr (-134.9% QoQ, -16.4% YoY) vs QoQ Rs. 79.2 Cr, YoY Rs. -33 Cr
EBITDA Margin came at -36.4% vs QoQ 37.5%, YoY -68.3%
Adj. PAT came at Rs. -28.9 Cr vs QoQ Rs. 54.1 Cr, YoY Rs. -28.2 Cr
Quarter EPS is Rs. -1.1
Share is trading at P/E of -316.9x TTM EPS