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