*Hindustan Zinc Concall Update*
*Outlook – Neutral*
*Sector Update:*
• After zinc prices hit 3 yrs high of $3085 a ton early, the prices since then declined due to growing worrying about inflation and the news from US Fed that state will start selling metals including zinc in the coming months. However, zinc prices have recovered since then and according to International lead-zinc study group, global demand for refined zinc is forecasted to rise by 4.3% to 13.78 mnt this year.
• Power shortage in China could affect zinc smelting capacities to 1.2 mnt.
• On domestic front zinc demand galvanising has been key driving force for construction infrastructure and automobiles. Increase in demand is expected from transport and highway sector.
*Company Update:*
• Mined metal production during the quarter was up 9% yoy to 0.22 mt on account of higher ore production.
• Management has maintained its mined metal production guidance for FY22 in the range of 1025-1050 kt and saleable silver production at 720 tonnes.
• The company aims to increase profitability of its operations that reduces downtime as well as overall costs.
• Higher EBITDA and PAT yoy was on account of higher volumes and higher LME prices.
• The management keeps its capex and cost guidance intact for FY22 due to upward pressure on commodity prices.
• Avg coal cost for the quarter was Rs 7100 vs Rs 6700 Last quarter which led to increase in cost along with higher diesel and cement prices.
*Expansion and Capex Guidance:*
• The company looks to expand its capacity from 1.2mt to 1.35mnt with Fumer coming in.
• Debt maturity starts from this year with 1000cr maturing in the current year.
• Tax guidance of 30% for FY22
Share is trading at EV/EBITDA of 8.5FY23E EBITDA
*Outlook – Neutral*
*Sector Update:*
• After zinc prices hit 3 yrs high of $3085 a ton early, the prices since then declined due to growing worrying about inflation and the news from US Fed that state will start selling metals including zinc in the coming months. However, zinc prices have recovered since then and according to International lead-zinc study group, global demand for refined zinc is forecasted to rise by 4.3% to 13.78 mnt this year.
• Power shortage in China could affect zinc smelting capacities to 1.2 mnt.
• On domestic front zinc demand galvanising has been key driving force for construction infrastructure and automobiles. Increase in demand is expected from transport and highway sector.
*Company Update:*
• Mined metal production during the quarter was up 9% yoy to 0.22 mt on account of higher ore production.
• Management has maintained its mined metal production guidance for FY22 in the range of 1025-1050 kt and saleable silver production at 720 tonnes.
• The company aims to increase profitability of its operations that reduces downtime as well as overall costs.
• Higher EBITDA and PAT yoy was on account of higher volumes and higher LME prices.
• The management keeps its capex and cost guidance intact for FY22 due to upward pressure on commodity prices.
• Avg coal cost for the quarter was Rs 7100 vs Rs 6700 Last quarter which led to increase in cost along with higher diesel and cement prices.
*Expansion and Capex Guidance:*
• The company looks to expand its capacity from 1.2mt to 1.35mnt with Fumer coming in.
• Debt maturity starts from this year with 1000cr maturing in the current year.
• Tax guidance of 30% for FY22
Share is trading at EV/EBITDA of 8.5FY23E EBITDA
*Ultratech Cement Concall Update*
*Outlook – Positive*
*Amid seasonal slowdown, FY22 outlook for demand growth is strong. Rural firing. Urban supported by low interest rate and government subsidies. Strong infrastructure push is supportive. Multiple levers - Roads (completion rate rose to 37km in Jun), Metros, new spend on Health infrastructure (Rs210bn allocated), airport, smart cities, etc. Expect pent-up demand to kick in as monsoon recedes.*
• Q1 ended with 6-8% increase in pricing, Q2 direction yet to evolve. In Q1, East and South pricing up 10%, West up 7-10%, North up 3-6%
• Expansion of 19.5mt of capacity on track for delivery by end of FY23. Guidance for 3.2mt in Q2 FY22, 3.5mt in Q1 FY23 and another 12mt for balance 9M of FY23.
*Other details*
• Capacity utilisation in Q1 came down to 73% from 93% in Q4 with the impact of Wave 2. July utilisation softer as well seasonally.
• Margins are protected as they are able to pass on inflation. Margin can increase as inflation turns or volume grows. Currently facing significant high coke/ coal inflation, no clear signal for reversal yet.
Share is trading at EV/EBITDA of 16.4 FY23E EBITDA
*Outlook – Positive*
*Amid seasonal slowdown, FY22 outlook for demand growth is strong. Rural firing. Urban supported by low interest rate and government subsidies. Strong infrastructure push is supportive. Multiple levers - Roads (completion rate rose to 37km in Jun), Metros, new spend on Health infrastructure (Rs210bn allocated), airport, smart cities, etc. Expect pent-up demand to kick in as monsoon recedes.*
• Q1 ended with 6-8% increase in pricing, Q2 direction yet to evolve. In Q1, East and South pricing up 10%, West up 7-10%, North up 3-6%
• Expansion of 19.5mt of capacity on track for delivery by end of FY23. Guidance for 3.2mt in Q2 FY22, 3.5mt in Q1 FY23 and another 12mt for balance 9M of FY23.
*Other details*
• Capacity utilisation in Q1 came down to 73% from 93% in Q4 with the impact of Wave 2. July utilisation softer as well seasonally.
• Margins are protected as they are able to pass on inflation. Margin can increase as inflation turns or volume grows. Currently facing significant high coke/ coal inflation, no clear signal for reversal yet.
Share is trading at EV/EBITDA of 16.4 FY23E EBITDA
*ICICI Lombard General Insurance Co. Ltd. - S* | *CMP* Rs. 1544 | *M Cap* Rs. 70198 Cr | *52 W H/L* 1626/1200
(Nirmal Bang Retail Research)
*Result is below expectations*
Net Premiums earned came at Rs. 2705.8 Cr vs expectation of Rs. 2582.8 Cr, YoY Rs. 2323.8 Cr, QoQ Rs. 2616.2 Cr
PBT came at Rs. 201.5 Cr vs expectation of Rs. 468.1 Cr, YoY Rs. 531 Cr, QoQ Rs. 450.1 Cr
PAT came at Rs. 151.6 Cr vs expectation of Rs. 351.1 Cr, YoY Rs. 398.1 Cr, QoQ Rs. 345.7 Cr
Combined Ratio came at 121.3% vs QoQ 101.8%
Current qtr includes impact of Covid claims on health book of Rs. 602 Cr as against Rs. 20 Cr YoY and Rs. 339 Cr in entire FY21.
Quarter EPS is Rs. 3.3
Share is trading at P/E of 34.6x FY23E EPS & 9.3x trailing P/BV
(Nirmal Bang Retail Research)
*Result is below expectations*
Net Premiums earned came at Rs. 2705.8 Cr vs expectation of Rs. 2582.8 Cr, YoY Rs. 2323.8 Cr, QoQ Rs. 2616.2 Cr
PBT came at Rs. 201.5 Cr vs expectation of Rs. 468.1 Cr, YoY Rs. 531 Cr, QoQ Rs. 450.1 Cr
PAT came at Rs. 151.6 Cr vs expectation of Rs. 351.1 Cr, YoY Rs. 398.1 Cr, QoQ Rs. 345.7 Cr
Combined Ratio came at 121.3% vs QoQ 101.8%
Current qtr includes impact of Covid claims on health book of Rs. 602 Cr as against Rs. 20 Cr YoY and Rs. 339 Cr in entire FY21.
Quarter EPS is Rs. 3.3
Share is trading at P/E of 34.6x FY23E EPS & 9.3x trailing P/BV
*Avenue Supermart (Dmart) – Analyst Meet Update – Nirmal Bang Sec.*
*Outlook – Positive for long term*
The stock is trading at 89x FY23E consensus earnings
• Two years and older DMart stores did ~91% of the last 15 days’ sales in the month of June 2021 as compared to June 2019
• Mix changed due to restrictions on sale of non-food items
• During FY20-21, opened 22 new stores and converted 2 stores into Fulfilment Centers for Avenue E-Commerce Limited (due to paucity of time to open separate FCs there)
• Business became more efficient as people made lower trips but bought more
• Last 15 days of June were very encouraging
• Continued expansion of stores – which temporarily impacted the fixed asset turnover
• Avenue E-Commerce
o Doubled revenues
o Mostly Mumbai city, started in other cities now
o Long way to go
• There is huge scope for pent up demand for non-essential goods
• Not really threatened with upcoming competition – they are coming coz of huge demand…no one is coming with cutting prices and are still not able to match Dmart’s prices yet
• Won’t offer free home delivery ever – but limited the upper side of delivery charges
• Real Estate – prices have not gone down much but deals happened fast
• Targeting 37 stores to open in FY22
*Outlook – Positive for long term*
The stock is trading at 89x FY23E consensus earnings
• Two years and older DMart stores did ~91% of the last 15 days’ sales in the month of June 2021 as compared to June 2019
• Mix changed due to restrictions on sale of non-food items
• During FY20-21, opened 22 new stores and converted 2 stores into Fulfilment Centers for Avenue E-Commerce Limited (due to paucity of time to open separate FCs there)
• Business became more efficient as people made lower trips but bought more
• Last 15 days of June were very encouraging
• Continued expansion of stores – which temporarily impacted the fixed asset turnover
• Avenue E-Commerce
o Doubled revenues
o Mostly Mumbai city, started in other cities now
o Long way to go
• There is huge scope for pent up demand for non-essential goods
• Not really threatened with upcoming competition – they are coming coz of huge demand…no one is coming with cutting prices and are still not able to match Dmart’s prices yet
• Won’t offer free home delivery ever – but limited the upper side of delivery charges
• Real Estate – prices have not gone down much but deals happened fast
• Targeting 37 stores to open in FY22
*Indiamart Intermesh Ltd.* | *CMP* Rs. 7017 | *M Cap* Rs. 21321 Cr | *52 W H/L* 9952/2041
(Nirmal Bang Retail Research)
Deferred Revenue came at Rs. 715 Cr vs QoQ Rs. 726 Cr, YoY Rs. 628 Cr
*Result is ok*
Revenue from Operations came at Rs. 181.6 Cr (1.1% QoQ, 18.6% YoY) vs QoQ Rs. 179.7 Cr, YoY Rs. 153.1 Cr
EBIDTA came at Rs. 88.6 Cr (3.7% QoQ, 20.9% YoY) vs QoQ Rs. 85.4 Cr, YoY Rs. 73.3 Cr
EBITDA Margin came at 48.8% vs QoQ 47.5%, YoY 47.9%
Adj. PAT came at Rs. 87.9 Cr vs QoQ Rs. 55.7 Cr, YoY Rs. 74.1 Cr
Quarter EPS is Rs. 28.9
Share is trading at P/E of 61x FY22E EPS
(Nirmal Bang Retail Research)
Deferred Revenue came at Rs. 715 Cr vs QoQ Rs. 726 Cr, YoY Rs. 628 Cr
*Result is ok*
Revenue from Operations came at Rs. 181.6 Cr (1.1% QoQ, 18.6% YoY) vs QoQ Rs. 179.7 Cr, YoY Rs. 153.1 Cr
EBIDTA came at Rs. 88.6 Cr (3.7% QoQ, 20.9% YoY) vs QoQ Rs. 85.4 Cr, YoY Rs. 73.3 Cr
EBITDA Margin came at 48.8% vs QoQ 47.5%, YoY 47.9%
Adj. PAT came at Rs. 87.9 Cr vs QoQ Rs. 55.7 Cr, YoY Rs. 74.1 Cr
Quarter EPS is Rs. 28.9
Share is trading at P/E of 61x FY22E EPS
CEAT Ltd Q1FY22 Con-call Update
(Nirmal Bang Retail Research)
Outlook: *Long Term Positive*
Company is in process of passing on increase in cost
• Volumes degrew by 21% QoQ but increased on a 70% YoY basis
• The company saw a mid single digit growth in volumes in Exports but OEM segments saw a decline of 30% in volumes and 20% decline in Replacement segment on a sequential basis
• Blended raw material cost went up by 12% on a per kg basis on a sequential basis leading to a contraction of 306 bps in gross margins
• Impact of raw material price increase in Q1 was 12% and the company had a 3-4% price hike passed to the customers and Raw material cost increase in Q2 will increase further by 3-4% and further 4-5% price hikes in the coming months
• Revenue for Q1 is at 35% for truck segment, , 2W at 25%, Pc at 15% and the remaining from all other categories
• The company has tied up with Tata Power to set up a captive solar power plant, with 10 megawatt capacity, for its tyre manufacturing unit in Bhandup, Maharashtra.
• The demand is seeing an uptick in the PC and 2W segment in the month of June but truck segment is still seeing low demand.
• Despite the ramp up of capacity in the three facilities, the company had cost saving initiatives which led to decline of 4% in employee cost and 23.2% in other expenses
• The company had project capex of Rs.182 Cr during Q1FY22 and another Rs. 39 Cr on long term cost saving and energy saving capital proposals. For the year, capex is expected to be around Rs. 1000 Cr and Rs. 150 Cr as maintenance capex
• The company’s consolidated debt increased by Rs. 368Cr in Q1 and expected to go further up during the year. Debt/equity at 0.53x compared to 0.69x YoY and 0.42x QoQ
• The PCR plant has a 20000/ day capacity in Chennai which will further increase in coming quarters
Share is trading at P/E of 15.5x FY22EPS
(Nirmal Bang Retail Research)
Outlook: *Long Term Positive*
Company is in process of passing on increase in cost
• Volumes degrew by 21% QoQ but increased on a 70% YoY basis
• The company saw a mid single digit growth in volumes in Exports but OEM segments saw a decline of 30% in volumes and 20% decline in Replacement segment on a sequential basis
• Blended raw material cost went up by 12% on a per kg basis on a sequential basis leading to a contraction of 306 bps in gross margins
• Impact of raw material price increase in Q1 was 12% and the company had a 3-4% price hike passed to the customers and Raw material cost increase in Q2 will increase further by 3-4% and further 4-5% price hikes in the coming months
• Revenue for Q1 is at 35% for truck segment, , 2W at 25%, Pc at 15% and the remaining from all other categories
• The company has tied up with Tata Power to set up a captive solar power plant, with 10 megawatt capacity, for its tyre manufacturing unit in Bhandup, Maharashtra.
• The demand is seeing an uptick in the PC and 2W segment in the month of June but truck segment is still seeing low demand.
• Despite the ramp up of capacity in the three facilities, the company had cost saving initiatives which led to decline of 4% in employee cost and 23.2% in other expenses
• The company had project capex of Rs.182 Cr during Q1FY22 and another Rs. 39 Cr on long term cost saving and energy saving capital proposals. For the year, capex is expected to be around Rs. 1000 Cr and Rs. 150 Cr as maintenance capex
• The company’s consolidated debt increased by Rs. 368Cr in Q1 and expected to go further up during the year. Debt/equity at 0.53x compared to 0.69x YoY and 0.42x QoQ
• The PCR plant has a 20000/ day capacity in Chennai which will further increase in coming quarters
Share is trading at P/E of 15.5x FY22EPS
*ndian Energy Exchange Ltd.* | *CMP* Rs. 446 | *M Cap* Rs. 13360 Cr | *52 W H/L* 446/170
(Nirmal Bang Retail Research)
*Result inline with Expectation*
Revenue from Operations came at Rs. 90.5 Cr (-4.8% QoQ, 36.4% YoY) vs expectation of Rs. 92.2 Cr, QoQ Rs. 95 Cr, YoY Rs. 66.3 Cr
EBIDTA came at Rs. 76.6 Cr (-5.3% QoQ, 56.5% YoY) vs expectation of Rs. 76.1 Cr, QoQ Rs. 80.8 Cr, YoY Rs. 48.9 Cr
EBITDA Margin came at 84.7% vs expectation of 82.6%, QoQ 85.1%, YoY 73.8%
Adj. PAT came at Rs. 63.6 Cr vs expectation of Rs. 60.6 Cr, QoQ Rs. 63.8 Cr, YoY Rs. 42.9 Cr
Quarter EPS is Rs. 2.1
Share is trading at P/E of 51.7x FY22E EPS
(Nirmal Bang Retail Research)
*Result inline with Expectation*
Revenue from Operations came at Rs. 90.5 Cr (-4.8% QoQ, 36.4% YoY) vs expectation of Rs. 92.2 Cr, QoQ Rs. 95 Cr, YoY Rs. 66.3 Cr
EBIDTA came at Rs. 76.6 Cr (-5.3% QoQ, 56.5% YoY) vs expectation of Rs. 76.1 Cr, QoQ Rs. 80.8 Cr, YoY Rs. 48.9 Cr
EBITDA Margin came at 84.7% vs expectation of 82.6%, QoQ 85.1%, YoY 73.8%
Adj. PAT came at Rs. 63.6 Cr vs expectation of Rs. 60.6 Cr, QoQ Rs. 63.8 Cr, YoY Rs. 42.9 Cr
Quarter EPS is Rs. 2.1
Share is trading at P/E of 51.7x FY22E EPS
*Tanla Platforms Ltd.* | *CMP* Rs. 977 | *M Cap* Rs. 13291 Cr | *52 W H/L* 1030/88
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 626.4 Cr (-3.4% QoQ, 37.5% YoY) vs QoQ Rs. 648.6 Cr, YoY Rs. 455.5 Cr
EBIDTA came at Rs. 134.5 Cr (0.3% QoQ, 79.4% YoY) vs QoQ Rs. 134 Cr, YoY Rs. 75 Cr
EBITDA Margin came at 21.5% vs QoQ 20.7%, YoY 16.5%
Adj. PAT came at Rs. 104.5 Cr vs QoQ Rs. 102.5 Cr, YoY Rs. 78.6 Cr
Quarter EPS is Rs. 7.7
Share is trading at P/E of 34.8x TTM EPS
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 626.4 Cr (-3.4% QoQ, 37.5% YoY) vs QoQ Rs. 648.6 Cr, YoY Rs. 455.5 Cr
EBIDTA came at Rs. 134.5 Cr (0.3% QoQ, 79.4% YoY) vs QoQ Rs. 134 Cr, YoY Rs. 75 Cr
EBITDA Margin came at 21.5% vs QoQ 20.7%, YoY 16.5%
Adj. PAT came at Rs. 104.5 Cr vs QoQ Rs. 102.5 Cr, YoY Rs. 78.6 Cr
Quarter EPS is Rs. 7.7
Share is trading at P/E of 34.8x TTM EPS
*Chennai Petroleum Corporation Ltd.* | *CMP* Rs. 133 | *M Cap* Rs. 1981 Cr | *52 W H/L* 152/64
(Nirmal Bang Retail Research)
*Result is declining*
Revenue from Operations came at Rs. 8166.5 Cr (-6.5% QoQ, 181.3% YoY) vs QoQ Rs. 8737.2 Cr, YoY Rs. 2903.1 Cr
EBIDTA came at Rs. 291.3 Cr (-44.2% QoQ, -53.1% YoY) vs QoQ Rs. 522 Cr, YoY Rs. 620.6 Cr
EBITDA Margin came at 3.6% vs QoQ 6%, YoY 21.4%
Adj. PAT came at Rs. 56.7 Cr vs QoQ Rs. 242 Cr, YoY Rs. 269.9 Cr
Quarter EPS is Rs. 3.8
Share is trading at P/E of 7.2x FY22E EPS
(Nirmal Bang Retail Research)
*Result is declining*
Revenue from Operations came at Rs. 8166.5 Cr (-6.5% QoQ, 181.3% YoY) vs QoQ Rs. 8737.2 Cr, YoY Rs. 2903.1 Cr
EBIDTA came at Rs. 291.3 Cr (-44.2% QoQ, -53.1% YoY) vs QoQ Rs. 522 Cr, YoY Rs. 620.6 Cr
EBITDA Margin came at 3.6% vs QoQ 6%, YoY 21.4%
Adj. PAT came at Rs. 56.7 Cr vs QoQ Rs. 242 Cr, YoY Rs. 269.9 Cr
Quarter EPS is Rs. 3.8
Share is trading at P/E of 7.2x FY22E EPS
*Agro Tech Foods Ltd.* | *CMP* Rs. 1046 | *M Cap* Rs. 2549 Cr | *52 W H/L* 1081/522
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 206.3 Cr (-3.6% QoQ, 1.4% YoY) vs QoQ Rs. 214 Cr, YoY Rs. 203.4 Cr
EBIDTA came at Rs. 16 Cr (81.2% QoQ, -24.1% YoY) vs QoQ Rs. 8.8 Cr, YoY Rs. 21.1 Cr
EBITDA Margin came at 7.8% vs QoQ 4.1%, YoY 10.4%
Adj. PAT came at Rs. 7.6 Cr vs QoQ Rs. 1.7 Cr, YoY Rs. 12.5 Cr
Quarter EPS is Rs. 3.1
Share is trading at P/E of 96.9x TTM EPS
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 206.3 Cr (-3.6% QoQ, 1.4% YoY) vs QoQ Rs. 214 Cr, YoY Rs. 203.4 Cr
EBIDTA came at Rs. 16 Cr (81.2% QoQ, -24.1% YoY) vs QoQ Rs. 8.8 Cr, YoY Rs. 21.1 Cr
EBITDA Margin came at 7.8% vs QoQ 4.1%, YoY 10.4%
Adj. PAT came at Rs. 7.6 Cr vs QoQ Rs. 1.7 Cr, YoY Rs. 12.5 Cr
Quarter EPS is Rs. 3.1
Share is trading at P/E of 96.9x TTM EPS
Bajaj Auto Q1FY22 Concall Update
(Nirmal Bang Retail Research)
Outlook: Neutral
The company gained market share to 65.3% as against 56.3% in Q4 FY21
The recovery in the past 3 quarters was offset by the 2nd wave of covid due to lockdown restrictions in various states which resulted weaker domestic demand but was partially off-set by good exports
The challenges regarding supply issue and semi conductor issues has negatively impacted the auto industry
Domestic Market
• Motorcycles sold nearly 342,000 units in the domestic market; share of ~19.7% in Q1 FY22 as against 17 .3% in Q4 FY21
• Pulsar and Dominar increased from 19% in Q4 to 21% in Q1FY22
• Co’s share of 125cc segment has increased to all time high of 28% this year. Volumes increased in 125cc at 60% of total revenues in Q1 as against industry average at 45%.
• Commercial Vehicles sold over 14,000 units in the domestic market. Volumes are still a fraction of pre-pandemic levels.
• The 3W segment returned to normalcy which had commenced last year October but was interrupted in April and May due to the second wave but it improved in June
• Electric 3W would be launched in H2FY22.
Exports
• Exports grew by 48% on a QoQ basis powered by high demand from North America, Australia and Europe
• Sold over 648,000 units in various international markets, despite challenges in availability of containers. By region, Africa, SAME and LA TAM continued to record strong sales.
• Global market share increased on a QoQ basis by 2% in 2W segment and around 6% in 3W
Stock is trading at P/E of 20.4x FY22E EPS
(Nirmal Bang Retail Research)
Outlook: Neutral
The company gained market share to 65.3% as against 56.3% in Q4 FY21
The recovery in the past 3 quarters was offset by the 2nd wave of covid due to lockdown restrictions in various states which resulted weaker domestic demand but was partially off-set by good exports
The challenges regarding supply issue and semi conductor issues has negatively impacted the auto industry
Domestic Market
• Motorcycles sold nearly 342,000 units in the domestic market; share of ~19.7% in Q1 FY22 as against 17 .3% in Q4 FY21
• Pulsar and Dominar increased from 19% in Q4 to 21% in Q1FY22
• Co’s share of 125cc segment has increased to all time high of 28% this year. Volumes increased in 125cc at 60% of total revenues in Q1 as against industry average at 45%.
• Commercial Vehicles sold over 14,000 units in the domestic market. Volumes are still a fraction of pre-pandemic levels.
• The 3W segment returned to normalcy which had commenced last year October but was interrupted in April and May due to the second wave but it improved in June
• Electric 3W would be launched in H2FY22.
Exports
• Exports grew by 48% on a QoQ basis powered by high demand from North America, Australia and Europe
• Sold over 648,000 units in various international markets, despite challenges in availability of containers. By region, Africa, SAME and LA TAM continued to record strong sales.
• Global market share increased on a QoQ basis by 2% in 2W segment and around 6% in 3W
Stock is trading at P/E of 20.4x FY22E EPS
*Oriental Aromatics Ltd.* | *CMP* Rs. 935 | *M Cap* Rs. 3147 Cr | *52 W H/L* 1019/283
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 229.7 Cr (3.7% QoQ, 102.8% YoY) vs QoQ Rs. 221.4 Cr, YoY Rs. 113.3 Cr
EBIDTA came at Rs. 34.4 Cr (3.6% QoQ, 88% YoY) vs QoQ Rs. 33.2 Cr, YoY Rs. 18.3 Cr
EBITDA Margin came at 15% vs QoQ 15%, YoY 16.2%
Adj. PAT came at Rs. 22.7 Cr vs QoQ Rs. 22.4 Cr, YoY Rs. 9.9 Cr
Quarter EPS is Rs. 6.7
Share is trading at P/E of 27.4x TTM EPS
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 229.7 Cr (3.7% QoQ, 102.8% YoY) vs QoQ Rs. 221.4 Cr, YoY Rs. 113.3 Cr
EBIDTA came at Rs. 34.4 Cr (3.6% QoQ, 88% YoY) vs QoQ Rs. 33.2 Cr, YoY Rs. 18.3 Cr
EBITDA Margin came at 15% vs QoQ 15%, YoY 16.2%
Adj. PAT came at Rs. 22.7 Cr vs QoQ Rs. 22.4 Cr, YoY Rs. 9.9 Cr
Quarter EPS is Rs. 6.7
Share is trading at P/E of 27.4x TTM EPS
Mphasis Ltd. | CMP Rs. 2397 | M Cap Rs. 44866 Cr | 52 W H/L 2422/975
(Nirmal Bang Retail Research)
Result is above expectations
In Constant Currency, growth was 5.9% QoQ and 16.3% YoY
TCV came at $ 505 mn vs QoQ $ 245 mn, YoY $ 259 mn
Dollar revenue came at $ 362.9 mn vs expectation of $ 356 mn, QoQ $ 342.2 mn, YoY $ 305.4 mn
Revenue from Operations came at Rs. 2690.8 Cr (6.6% QoQ, 17.6% YoY) vs expectation of Rs. 2628.3 Cr, QoQ Rs. 2524.3 Cr, YoY Rs. 2288.2 Cr
EBIDTA came at Rs. 489.2 Cr (4.7% QoQ, 17.1% YoY) vs expectation of Rs. 482.8 Cr, QoQ Rs. 467.1 Cr, YoY Rs. 417.8 Cr
EBITDA Margin came at 18.2% vs expectation of 18.4%, QoQ 18.5%, YoY 18.3%
Adj. PAT came at Rs. 339.6 Cr vs expectation of Rs. 331.5 Cr, QoQ Rs. 316.9 Cr, YoY Rs. 275.1 Cr
Quarter EPS is Rs. 18.1
Share is trading at P/E of 31.2x FY22E EPS
(Nirmal Bang Retail Research)
Result is above expectations
In Constant Currency, growth was 5.9% QoQ and 16.3% YoY
TCV came at $ 505 mn vs QoQ $ 245 mn, YoY $ 259 mn
Dollar revenue came at $ 362.9 mn vs expectation of $ 356 mn, QoQ $ 342.2 mn, YoY $ 305.4 mn
Revenue from Operations came at Rs. 2690.8 Cr (6.6% QoQ, 17.6% YoY) vs expectation of Rs. 2628.3 Cr, QoQ Rs. 2524.3 Cr, YoY Rs. 2288.2 Cr
EBIDTA came at Rs. 489.2 Cr (4.7% QoQ, 17.1% YoY) vs expectation of Rs. 482.8 Cr, QoQ Rs. 467.1 Cr, YoY Rs. 417.8 Cr
EBITDA Margin came at 18.2% vs expectation of 18.4%, QoQ 18.5%, YoY 18.3%
Adj. PAT came at Rs. 339.6 Cr vs expectation of Rs. 331.5 Cr, QoQ Rs. 316.9 Cr, YoY Rs. 275.1 Cr
Quarter EPS is Rs. 18.1
Share is trading at P/E of 31.2x FY22E EPS
*Mahindra CIE Q2CY21 Concall Update*
(Nirmal Bang Securities)
*Outlook: Positive*
• CIE the parent expects India (14% sales mix for parent) to be the fastest growing market in coming years and thus would focus on Mahindra CIE to drive future growth.
• Chip shortages will reduce from Sep onwards and will normalize by end of the year.
• Steel and aluminum price increase has been already passed through to customers in India and Europe. It was to the tune of 6%.
*India operations impacted by covid*
• Revenue witnessed a QoQ decline of 17%. June month reached 85% levels of Jan-Mar qtr.
• Margins dipped to ~14% from QoQ 15.5%
• Co will focus on aluminum diecasting business in India.
• Greenfield plant for machining is being set up at Hosur under the Billforge unit. Will be entitled to lower tax of 15% as announced by GOI. Plant will cater to customers who are focused on exports like Royal Enfield.
*European operations stable despite chip shortages*
• Revenue witnessed a QoQ increase of 3%. Demand from customers remains strong in July.
• Margins were maintained at 14%. Restructuring actions taken in previous years are showing the good margin performance.
Stock is trading at P/E of 16.8x FY22E EPS
(Nirmal Bang Securities)
*Outlook: Positive*
• CIE the parent expects India (14% sales mix for parent) to be the fastest growing market in coming years and thus would focus on Mahindra CIE to drive future growth.
• Chip shortages will reduce from Sep onwards and will normalize by end of the year.
• Steel and aluminum price increase has been already passed through to customers in India and Europe. It was to the tune of 6%.
*India operations impacted by covid*
• Revenue witnessed a QoQ decline of 17%. June month reached 85% levels of Jan-Mar qtr.
• Margins dipped to ~14% from QoQ 15.5%
• Co will focus on aluminum diecasting business in India.
• Greenfield plant for machining is being set up at Hosur under the Billforge unit. Will be entitled to lower tax of 15% as announced by GOI. Plant will cater to customers who are focused on exports like Royal Enfield.
*European operations stable despite chip shortages*
• Revenue witnessed a QoQ increase of 3%. Demand from customers remains strong in July.
• Margins were maintained at 14%. Restructuring actions taken in previous years are showing the good margin performance.
Stock is trading at P/E of 16.8x FY22E EPS
Dear All,
Nirmal Bang is inviting you to a Zoom webinar.
When: Jul 23, 2021 08:45 AM India
Topic: Morning Market Update
Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_vv_Dfhc4TNSm6gJIbTbigQ
After registering, you will receive a confirmation email containing information about joining the webinar.
Nirmal Bang is inviting you to a Zoom webinar.
When: Jul 23, 2021 08:45 AM India
Topic: Morning Market Update
Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_vv_Dfhc4TNSm6gJIbTbigQ
After registering, you will receive a confirmation email containing information about joining the webinar.
Zoom Video Communications
Welcome! You are invited to join a webinar: Morning Market Update. After registering, you will receive a confirmation email about…
World Markets
Dow + 25
Nasdaq + 53
Dax + 92
Nikkei + 160
Hangseng - 100
Sgxnifty + 23 (15846)
Brent Crude 73.8
Dow Fut + 74
Dollar Index 92.8
Dow + 25
Nasdaq + 53
Dax + 92
Nikkei + 160
Hangseng - 100
Sgxnifty + 23 (15846)
Brent Crude 73.8
Dow Fut + 74
Dollar Index 92.8
Stocks To Watch
Tata Power: To sell 100% stake in Trust Energy Resources Pte to Tata Power International Pte, a wholly-owned subsidiary of the company, for $285.64 million. The transaction is expected to be completed by August 10.
UltraTech Cement: Prepaid long-term loans amounting to Rs 5,000 crore in July. The loan repayments were made through free cash flows.
Mahindra Lifespace Developers: Board to consider the proposal for issuance of bonus equity shares on July 28.
Wipro: Launched FieldX, a cloud-based end-to-end digital service lifecycle automation solution built on ServiceNow’s Now Platform. Using FieldX, manufacturing organizations can enhance and scale-up their after-sales customer service operations while reducing costs, the company said.
PSP Projects: Secured new work order worth Rs 82.79 crore till date in the financial year 2021-22 for Institutional and Industrial projects.
Tanla Platforms: Approved the proposal to buyback up to 5,15,873 shares of the company for an aggregate amount of Rs 65 crore at a price not exceeding Rs 1,260 per share.
Hero MotoCorp: Launched an advanced, ‘connected’, and feature-rich new Maestro Edge 125.
Spandana Sphoorty Financial: Allotted 12,500 secured NCDs of face value of Rs 1 lakh each on a private placement basis for aggregate amount of Rs 125 crore. The issue will mature in May 2023.
Future Retail: Misses service of payment of interest on $ notes. Proposes to make interest payment within 30 days.
Allcargo Logistics: To consider proposal for voluntary delisting on August 6.
Magma Fincorp has been renamed as Poonawalla Fincorp. The company’s fully-owned housing finance subsidiary, Magma Housing Finance Limited, has also been renamed as Poonawalla Housing Finance. Under Poonawalla brand, the group said that it will focus on consumer and MSME segment. The company will also expand its product range to include personal loans, loans to professionals, merchant cash advance, loan against property, consumer finance and machinery loans along with existing products of business loan, pre-owned car loans and home loans.
Earnings: Reliance Industries, Ambuja Cements, JSW Steel, SBI Cards and Payment Services, United Spirits, Tata Steel Bsl, Yes Bank, Crompton Greaves Consumer Electricals, Jubilant Pharmova, Federal Bank, ABB Power Products and Systems India, Symphony, Atul, Cigniti Technologies, Cybertech Systems and Software, Dynamatic Technologies, Fineotex Chemical, Nectar Lifesciences, Panacea Biotec, Seshasayee Paper & Boards, SKF India, Wendt (India)
Tata Power: To sell 100% stake in Trust Energy Resources Pte to Tata Power International Pte, a wholly-owned subsidiary of the company, for $285.64 million. The transaction is expected to be completed by August 10.
UltraTech Cement: Prepaid long-term loans amounting to Rs 5,000 crore in July. The loan repayments were made through free cash flows.
Mahindra Lifespace Developers: Board to consider the proposal for issuance of bonus equity shares on July 28.
Wipro: Launched FieldX, a cloud-based end-to-end digital service lifecycle automation solution built on ServiceNow’s Now Platform. Using FieldX, manufacturing organizations can enhance and scale-up their after-sales customer service operations while reducing costs, the company said.
PSP Projects: Secured new work order worth Rs 82.79 crore till date in the financial year 2021-22 for Institutional and Industrial projects.
Tanla Platforms: Approved the proposal to buyback up to 5,15,873 shares of the company for an aggregate amount of Rs 65 crore at a price not exceeding Rs 1,260 per share.
Hero MotoCorp: Launched an advanced, ‘connected’, and feature-rich new Maestro Edge 125.
Spandana Sphoorty Financial: Allotted 12,500 secured NCDs of face value of Rs 1 lakh each on a private placement basis for aggregate amount of Rs 125 crore. The issue will mature in May 2023.
Future Retail: Misses service of payment of interest on $ notes. Proposes to make interest payment within 30 days.
Allcargo Logistics: To consider proposal for voluntary delisting on August 6.
Magma Fincorp has been renamed as Poonawalla Fincorp. The company’s fully-owned housing finance subsidiary, Magma Housing Finance Limited, has also been renamed as Poonawalla Housing Finance. Under Poonawalla brand, the group said that it will focus on consumer and MSME segment. The company will also expand its product range to include personal loans, loans to professionals, merchant cash advance, loan against property, consumer finance and machinery loans along with existing products of business loan, pre-owned car loans and home loans.
Earnings: Reliance Industries, Ambuja Cements, JSW Steel, SBI Cards and Payment Services, United Spirits, Tata Steel Bsl, Yes Bank, Crompton Greaves Consumer Electricals, Jubilant Pharmova, Federal Bank, ABB Power Products and Systems India, Symphony, Atul, Cigniti Technologies, Cybertech Systems and Software, Dynamatic Technologies, Fineotex Chemical, Nectar Lifesciences, Panacea Biotec, Seshasayee Paper & Boards, SKF India, Wendt (India)
Pledge Share Details
Adani Ports and SEZ: Promoter Adani Tradeline LLP revoked pledge of 5 lakh shares on July 20.
Adani Transmission: Promoter Adani Tradeline LLP revoked pledge of 8.54 lakh shares on July 20.
Apollo Hospitals Enterprise: Promoter PCR Investments revoked pledge of 4 lakh shares on July 20.
JSW Steel: Promoter Siddeshwari Tradex revoked pledge of 22.89 lakh shares on July 19.
Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 7,000 shares on July 20.
Adani Ports and SEZ: Promoter Adani Tradeline LLP revoked pledge of 5 lakh shares on July 20.
Adani Transmission: Promoter Adani Tradeline LLP revoked pledge of 8.54 lakh shares on July 20.
Apollo Hospitals Enterprise: Promoter PCR Investments revoked pledge of 4 lakh shares on July 20.
JSW Steel: Promoter Siddeshwari Tradex revoked pledge of 22.89 lakh shares on July 19.
Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 7,000 shares on July 20.
Who’s Meeting Whom
CRISIL: To meet Edelweiss on July 23.
Deepak Fertilisers And Petrochemicals Corporation: To meet Goldman Sachs Asset Management (India) and Avendus Capital Public Markets Alternate Strategies LLP on July 23.
CRISIL: To meet Edelweiss on July 23.
Deepak Fertilisers And Petrochemicals Corporation: To meet Goldman Sachs Asset Management (India) and Avendus Capital Public Markets Alternate Strategies LLP on July 23.
Trading Tweaks
Price Band Revised From 10% To 5%: Trigyn Technologies
Price Band Revised From 20% To 10%: Xchanging Solutions
Move Out Of Short-Term ASM Framework: SML Isuzu, Equitas Holdings
Move Into ASM Framework: Thirumalai Chemicals
Ex-Date Dividend: Karur Vysya Bank, Seacoast Shipping Services
Ex-Date Interim Dividend: Angel Broking
Ex-Date Final Dividend: Tech Mahindra, Elgi Equipment
Record Date Dividend: Blue Star, Thermax, Elecon Engineering
Record Date Final Dividend: Sumitomo Chemical
Record Date Interim Dividend: Hatsun Agro Product
Price Band Revised From 10% To 5%: Trigyn Technologies
Price Band Revised From 20% To 10%: Xchanging Solutions
Move Out Of Short-Term ASM Framework: SML Isuzu, Equitas Holdings
Move Into ASM Framework: Thirumalai Chemicals
Ex-Date Dividend: Karur Vysya Bank, Seacoast Shipping Services
Ex-Date Interim Dividend: Angel Broking
Ex-Date Final Dividend: Tech Mahindra, Elgi Equipment
Record Date Dividend: Blue Star, Thermax, Elecon Engineering
Record Date Final Dividend: Sumitomo Chemical
Record Date Interim Dividend: Hatsun Agro Product
Money Market Update
The rupee ended at 74.46 against the U.S. Dollar on Thursday as compared to Tuesday's closing of 74.61.
The rupee ended at 74.46 against the U.S. Dollar on Thursday as compared to Tuesday's closing of 74.61.