*EICHER MOTOR: TOTAL VECV SALES 4271 UNITS VS 2184 UNITS (YOY); 2438 UNITS (MOM) GROWTH 95.6% (YOY);*

*Policybazaar files for mega Rs 6,017 cr IPO, aims at $5.5-$6 bn valuation*

https://t.co/jMpTa5WboT

*Escorts July 2021 Sales – Below Expectations*
(Nirmal Bang Retail Research)
Total Sales came at 6564 units vs expectation of 8825 units, YoY 5322 units (23%) and MoM 12533 units (-48%)

*Tata Motors July 2021 Sales – In line with expectations*
(Nirmal Bang Retail Research)
Total Domestic CV came at 21796 vs YoY 12012 units (81%) and MoM 19594 units (11%)
Total Domestic PVs came at 30185 vs YoY 15012 units (101%) and MoM 24110 units (25%)
Total Sales (Domestic+Exports) came at 54119 units vs expectation of 51371 units, YoY 27711 units (95%) and MoM 46265 units (17%)

*VST Tillers Tractors July 2021 Sales - Ok*
(Nirmal Bang Retail Research)
Total Sales came at 4397 vs YoY 3890 units (13%) and MoM 3937 units (12%)

*Eicher Motors July 2021 Sales – Below expectations*
(Nirmal Bang Retail Research)
Motorcycles (Royal Enfield) came at 44038 units vs expectation of 53817 units, YoY 40334 units (9%) and MoM 43048 units (2%)
M&HCV came at 4271 units vs expectation of 3743 units, YoY 2184 units (96%) and MoM 2438 units (75%)

*Rain Industries Ltd.* | *CMP* Rs. 261 | *M Cap* Rs. 8779 Cr | *52 W H/L* 261/89
(Nirmal Bang Retail Research)
*Result ok* Gross margin declined QoQ
Revenue from Operations came at Rs. 3643.4 Cr (21.1% QoQ, 54.3% YoY) vs QoQ Rs. 3007.7 Cr, YoY Rs. 2360.8 Cr
EBIDTA came at Rs. 647.8 Cr (11.1% QoQ, 84.2% YoY) vs QoQ Rs. 583.2 Cr, YoY Rs. 351.7 Cr
EBITDA Margin came at 17.8% vs QoQ 19.4%, YoY 14.9%
Adj. PAT came at Rs. 235.3 Cr vs QoQ Rs. 206.3 Cr, YoY Rs. 26.5 Cr
Quarter EPS is Rs. 7
Share is trading at P/E of 10.1x TTM EPS

*Home First Finance Q1FY22 Concall Update*
(Nirmal Bang Securities)

*Less than expected impact of second wave on asset quality (especially compared to larger listed peer) and robust collection trends are key positives*

*Outlook: Positive*

• Gross NPA (%) came at 1.9% vs QoQ 1.8% (Aavas at 1.1%). Co is targeting to reduce GNPA by 10 bps every qtr.
• Net NPA (%) came at 1.4% vs QoQ 1.2%.
• Restructured book is at 0.6%
• Bounce rates have improved in July to 16.1% from 18.3% in Q1. They were at 17.3% in Q4 and at ~10% levels pre-covid.
• Collection Efficiency was at 98.5% in March, it dipped to 94.0% in May and has risen to 97.6% in June, in line with Aavas.
• 1+ DPD increased to 8.9% vs QoQ 6.2% (1+ DPD for Aavas increased to 12.7% vs QoQ 6.4%)
• Disbursement runrate has reached Q4 levels in July.
• Sustainable long term spreads are in the range of 4.75-5.0% as opposed to current spread of 5.4%
• Opex/AUM should be in 2.5-3% range over next 2-3 years.
• Credit cost guidance is between 60-80bps in FY22 and should decline thereafter.
• By end of FY22, liquidity would be brought down to 500 Cr. This will support margins by 30 bps approx.
• Affordable Housing Cos’ tax rate comes to 20% due to benefits provided by Govt. Co will consider this with their new auditors once they join. (Co currently pays tax at 25.2%)

Stock is trading at 3.7x trailing P/BV

*NTPC Ltd.* | *CMP* Rs. 118 | *M Cap* Rs. 114615 Cr | *52 W H/L* 122/78
(Nirmal Bang Retail Research)
*Result is inline with expectation*
Revenue from Operations came at Rs. 26038.5 Cr (-2% QoQ, 11% YoY) vs expectation of Rs. 25259.8 Cr, QoQ Rs. 26566.9 Cr, YoY Rs. 23453.5 Cr
EBIDTA came at Rs. 7438.9 Cr (14.3% QoQ, -4% YoY) vs expectation of Rs. 7843 Cr, QoQ Rs. 6507.8 Cr, YoY Rs. 7745.1 Cr
EBITDA Margin came at 28.6% vs expectation of 31%, QoQ 24.5%, YoY 33%
Adj. PAT came at Rs. 3145.6 Cr vs expectation of Rs. 3513.6 Cr, QoQ Rs. 4771.6 Cr, YoY Rs. 2470.2 Cr
Quarter EPS is Rs. 3.2
Share is trading at P/E of 7.5x FY22E EPS

*Hero Motocorp July 2021 Sales – Below expectation*
(Nirmal Bang Retail Research)
2 Wheelers came at 454398 units vs expectation of 516333 units, YoY 520104 units (-13%) and MoM 469160 units (-3%)

*Gujarat Ambuja Exports Ltd.* | *CMP* Rs. 194 | *M Cap* Rs. 4449 Cr | *52 W H/L* 195/74
(Nirmal Bang Retail Research)
*Result improved*
Revenue from Operations came at Rs. 1025 Cr (-38.9% QoQ, 23.8% YoY) vs QoQ Rs. 1676.5 Cr, YoY Rs. 828.3 Cr
EBIDTA came at Rs. 167.7 Cr (-11.5% QoQ, 121% YoY) vs QoQ Rs. 189.5 Cr, YoY Rs. 75.9 Cr
EBITDA Margin came at 16.4% vs QoQ 11.3%, YoY 9.2%
Adj. PAT came at Rs. 113.8 Cr vs QoQ Rs. 118.4 Cr, YoY Rs. 37.3 Cr
Quarter EPS is Rs. 5
Share is trading at P/E of 10.7x TTM EPS

*Surya Roshni Ltd.* | *CMP* Rs. 529 | *M Cap* Rs. 2878 Cr | *52 W H/L* 573/112
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 1453.4 Cr (-15.6% QoQ, 64.8% YoY) vs QoQ Rs. 1721.6 Cr, YoY Rs. 881.7 Cr
EBIDTA came at Rs. 92.1 Cr (-23% QoQ, 117.3% YoY) vs QoQ Rs. 119.6 Cr, YoY Rs. 42.4 Cr
EBITDA Margin came at 6.3% vs QoQ 6.9%, YoY 4.8%
Adj. PAT came at Rs. 37.3 Cr vs QoQ Rs. 58.3 Cr, YoY Rs. 1.6 Cr
Quarter EPS is Rs. 6.9
Share is trading at P/E of 15x TTM EPS

*Unichem Laboratories Ltd.* | *CMP* Rs. 333 | *M Cap* Rs. 2345 Cr | *52 W H/L* 375/192
(Nirmal Bang Retail Research)
*Result declining*
Revenue from Operations came at Rs. 297.9 Cr (8.7% QoQ, -6.1% YoY) vs QoQ Rs. 274.1 Cr, YoY Rs. 317.3 Cr
EBIDTA came at Rs. -1.7 Cr (-108.7% QoQ, -113.7% YoY) vs QoQ Rs. 19 Cr, YoY Rs. 12.1 Cr
EBITDA Margin came at -0.6% vs QoQ 6.9%, YoY 3.8%
Adj. PAT came at Rs. -11.5 Cr vs QoQ Rs. -0.4 Cr, YoY Rs. 2.4 Cr
Quarter EPS is Rs. -1.6
Share is trading at P/E of 114.9x TTM EPS

*TGV SRACC Ltd.* | *CMP* Rs. 40 | *M Cap* Rs. 427 Cr | *52 W H/L* 41/16
(Nirmal Bang Retail Research)
*Result improved*
Revenue from Operations came at Rs. 250.7 Cr (-1.4% QoQ, 5.9% YoY) vs QoQ Rs. 254.4 Cr, YoY Rs. 236.7 Cr
EBIDTA came at Rs. 39.5 Cr (29.4% QoQ, 18% YoY) vs QoQ Rs. 30.5 Cr, YoY Rs. 33.5 Cr
EBITDA Margin came at 15.8% vs QoQ 12%, YoY 14.1%
Adj. PAT came at Rs. 9.9 Cr vs QoQ Rs. 2.6 Cr, YoY Rs. 6.2 Cr
Quarter EPS is Rs. 0.9
Share is trading at P/E of 12.8x TTM EPS

*LG Balakrishnan & Bros Ltd.* | *CMP* Rs. 464 | *M Cap* Rs. 1458 Cr | *52 W H/L* 499/200
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 392.6 Cr (-21.3% QoQ, 101.7% YoY) vs QoQ Rs. 499.1 Cr, YoY Rs. 194.6 Cr
EBIDTA came at Rs. 61.3 Cr (-30.9% QoQ, 324.6% YoY) vs QoQ Rs. 88.7 Cr, YoY Rs. 14.4 Cr
EBITDA Margin came at 15.6% vs QoQ 17.8%, YoY 7.4%
Adj. PAT came at Rs. 33 Cr vs QoQ Rs. 49.5 Cr, YoY Rs. -6.5 Cr
Quarter EPS is Rs. 10.5
Share is trading at P/E of 9.1x TTM EPS

*Bharat Heavy Electricals Ltd.* | *CMP* Rs. 59 | *M Cap* Rs. 20701 Cr | *52 W H/L* 80/27
(Nirmal Bang Retail Research)
*Result below expectation*
Revenue from Operations came at Rs. 2901.3 Cr (-59.5% QoQ, 45.7% YoY) vs expectation of Rs. 4269.5 Cr, QoQ Rs. 7171 Cr, YoY Rs. 1990.9 Cr
EBIDTA came at Rs. -474 Cr (-62.5% QoQ, -55.2% YoY) vs expectation of Rs. -343.5 Cr, QoQ Rs. -1264.3 Cr, YoY Rs. -1058.9 Cr
EBITDA Margin came at -16.3% vs expectation of -8%, QoQ -17.6%, YoY -53.2%
Adj. PAT came at Rs. -445.8 Cr vs expectation of Rs. -282.7 Cr, QoQ Rs. -1032.9 Cr, YoY Rs. -897.2 Cr
Quarter EPS is Rs. -1.3
Share is trading at P/E of 28.7x FY22E EPS

*Laurus Labs – Q1FY22 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*
_
The stock is trading at 17x FY23E on our earnings

• Lockdowns had temporary impact but the company maintained normal operations across all locations
• Focusing on having better product mix and better margins
• 3.8% R&D spend
• Filing pace to increase in FY22 across markets (Q1FY22 filings stood at 5 vs. 8 filed in FY21)
• Rs 1500-1700 cr Capex during FY22-23
• Net debt increased by Rs 170 ccr

• *_Formulations – Q1FY22 revenues of Rs 521 cr_*
o Continue to see demand in ARV segment for LMIC region and portfolio expansion in Developed markets. Traction picking up for few of in-licensed products
o Commenced marketing of in-licensed products
o 5 products filed for Developed markets (including 2 in US; total 28 ANDAs); in Canada, Laurus has 10 product approvals – launched 5 till now, intend to launch 2 in Q2 and Q3. *The company expects significant upside from these products in FY23*
o Capacity expansion update: 1) Debottlenecking Project completed during Q1 – expected to add 20% of the current capacity and 2) further FDF capacity expansion at Unit 2 (to add 4bn units) is expected to get commercialized by Q4FY22. Together these would double our FDF capacity to 10bn units


• *_APIs – Rs 549 cr revenues_*
o Oncology Segments continue to see good momentum and grew 16% YoY while the growth in Other APIs (including CVS and Diabetes portfolio) declined 43% YoY due change in the delivery schedule for certain shipments. We expect recovery from Q2
o ARV business grew at healthy 23% YoY but sequentially declined partly due to demand normalization – in line with the expectations – expected to come back on track from Q2
o Strong order book in non ARV non Onco

• *_Synthesis – Rev of Rs 195 cr_*
o There is no offs in CDMO business; it is business as usual
o Retained its significant growth momentum (+95% YoY) led by sustained new client addition and increased business from existing customers. Commercial supplies on-going for 4 products
o Capacity expansion update: have commercialized LSPL unit 1 during Q1FY22. Proposed Greenfield investment to set up a dedicated R&D center in Hyderabad (FY23) and two manufacturing units in Vizag (FY23/24) under LSPL is progressing as per the expectations


• *_Bio – Rs 14.4 cr revenues_*
o first full quarter since acquisition. On normalized basis, QoQ run-rate was stable
o Commissioned partially additional (180KL) fermentation capacity (in Food proteins) for Developed markets. *Expect full benefit of ramp up from Q2 onwards*
o Plan to acquire additional land for further expansion by creating close to 1 million liters fermentation capacity in Phase 1
o 2 fermenters came in commencement from June onwards

*Vinati Organics Ltd.* | *CMP* Rs. 1976 | *M Cap* Rs. 20310 Cr | *52 W H/L* 2132/947
(Nirmal Bang Retail Research)
*Result is below expectations*
Revenue from Operations came at Rs. 386.4 Cr (38.1% QoQ, 66.8% YoY) vs expectation of Rs. 317.4 Cr, QoQ Rs. 279.8 Cr, YoY Rs. 231.6 Cr
EBIDTA came at Rs. 101.5 Cr (2.4% QoQ, 4.5% YoY) vs expectation of Rs. 109.1 Cr, QoQ Rs. 99.1 Cr, YoY Rs. 97.2 Cr
EBITDA Margin came at 26.3% vs expectation of 34.4%, QoQ 35.4%, YoY 42%
Adj. PAT came at Rs. 80.9 Cr vs expectation of Rs. 78.5 Cr, QoQ Rs. 70.9 Cr, YoY Rs. 72.3 Cr
Quarter EPS is Rs. 7.9
Share is trading at P/E of 58.4x FY22E EPS

*PI Industries* is acquiring Ind-Swift Laboratories acquisition API and Intermediates business for Rs Rs 1530 cr (1.8x sales, 7.6x EBITDA). PI Industries has been looking opportunities to foray into Pharma CSM segment. With this acquisition it would access to API manufacturing which complements its existing Pharma R&D business. *Positive*

*Sun Pharma – Q1FY22 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive*

The stock is trading at 25.5x FY23E on concences earnings

• Recorded highest ever quarterly sales
• All businesses except APIs recorded robust growth – driven by robust core business growth, low base last year and enhanced by covid portfolio
• R&D – Rs 592.6 cr
• Cost would inch up as the activity resumes however management constantly focuses in cost control measure

*Global Specialty Portfolio*
• $148mn revenues vs $81mn last year, recorded sales yoy and qoq despite loss of Absorica sales sue to entry of Absorica generics
• Illumya increased by both yoy and qoq
• Encouraged by sequential growth in Illumya and Cequia - *Expect Double digit sales in FY22*
• Specialty R&D 26% of total R&D
• Specialty R&D Pipeline – (a) Ilumya is undergoing Phase 3 clinical trials for psoriatic arthritis (b) SCD-044 undergoing Phase 2 clinical trial for atopic dermatitis and for moderate to severe plaque psoriasis (c) MM-II is also undergoing Phase 2 trial for treatment of knee pain in patients with symptomatic knee osteoarthritis (d) GLP-1 agonists is in Phase 1 trial for diabetes

*US* – 29% of consol sales in Q1
• Sales was $380mn, a growth of 35% yoy -growth was led by Specialty portfolio
• While the doctor clinics have been open in the US during the quarter the situation is yet to fully normalized
• *Expect Winlevi – an in-licensed drug, to be commercialised in Q3FY22*
• Generics
o Ex-Taro business grew by both yoy and qoq – due to better supply management and launch of new products though overall environment remains competitive
o 86 ANDAs and 13 NDAs are awaiting approvals

*India branded formulations*
• Recorded growth of 39%
• Covid and associated products accounted for 8-10% of India sales
• Chronic continued the good growth while sub chronic segment was a significant growth contributor for the quarter
• Launched 13 new products

*Other Business*
• Emerging markets - $218mn up 25% yoy, in constant currency 19% - now 17% of overall revenues
• FDs in ROW - $185mn, 35% yoy; 14% of consol revenues
• APIs – rev Rs 515 cr, down 7% yoy