*AU SFB Q2FY21 Concall Update*
(Nirmal Bang Retail Research)

◉ *Collection Efficiency as well as Disbursements normalize*
◉ *Covid led stressed book reduces from 5.5% in Aug to at 3.0% in Oct; bank expects further improvement in future*

*Outlook: Positive*

*Operating Performance*
• Disbursements declined 28% YoY to Rs. 3409 Cr. However, *disbursements in September month have reached 99% of September 2019.*
• AUM stands at Rs. 30,590 Cr (+10% YoY, +2% QoQ). Retail AUM +17% YoY (84% mix); Wholesale AUM -10% YoY (16% mix). Retail AUM mix improved to 84% vs 79% YoY.
• Deposits +22% YoY, +1% QoQ. CASA ratio is at 20% vs 15% both QoQ & YoY. Mix of Retail TD increased YoY from 35% to 48%. The bank shed bulk deposits worth Rs. 2,000 Cr during the qtr.
• Bank changed its stance from focusing on Term Deposits alone to both CASA and Term Deposits now.
• Other income includes Rs. 144 Cr from stake sale of Aavas Financiers in addition to Rs. 27 Cr of sales proceeds in Q1.
• Opex grew by 17% YoY with branch network expanding to 686 vs 594 QoQ and 428 YoY.

*Asset Quality & Collections*
• GNPA came at 1.5% vs QoQ 1.7%. PCR improved to 71% vs QoQ 63% & YoY 44%. NNPA declined to 0.5% vs QoQ 0.6%.
• Moratorium book (not a single repayment since April) as on Aug end declined to 5.5% from 11% as on June end. Out of this, 2.5% have become active in Sep & Oct. Hence pending stressed book is ~3.0%. Bank is already carrying 1.0% of covid provisions (Rs. 278 Cr) and will wait and watch the stressed portfolio rather than provide for it upfront as these are 100% secured loans.
• We believe the bank should have provided further covid provisions during the qtr so that the co could start FY22 with no baggage of covid related credit costs. We now conservatively change our credit cost assumptions for FY21/22 from earlier 2.3%/0.9% to 1.9%/1.3%. This shall reduce our earlier FY22 ROA estimate from 1.9% to 1.7% now and similarly ROE from 18.8% earlier to 16.6% now. (We have conservatively assumed the entire 3% stressed covid book slipping over FY21 & 22; whereas management is hopeful that this number will reduce in future. If the stressed covid book reduces as per management expectations, then our earlier assumptions for FY22 on credit cost, ROA and ROE would play out).
• Collection Efficiency has reached closer to normalized levels at 78% against 80% pre-covid. Collection seems lower compared to other banks due to the nature of customers who even during normal time used to have collections of ~80%.
• 90% of collections happen through electronic means for the bank.
• 98% of overall AUM is secured.

Stock is trading at P/E of 27x FY22 and trailing P/Adj BV of 5.0x

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*Navin Fluorine – Q2FY21 Concall – Nirmal Bang Sec.*
*Outlook – Positive*
*_Strong results as business returning back to normal_*

The stock is trading at 39x FY22E consensus earnings

*_General_*
• Sales returning back to normal levels
• EBITDA Margins have improved despite COVID challenges
• The company witnessed strong momentum in High Value Business performance however Legacy Business volumes were lower due to weak demand from the end users due to COVID-19
• Piramal increasing the stake in JV to 100% - and giving Rs 65.1 cr to Navin for their 49% stake plus Rs 7.9cr (one time) for leasehold land for 11 acres
o Will not lose any business – Navin would get access to hexafluoro chemistry license for lifetime which can be used for future products
o Had invested Rs 34 cr till now

*_CRAMS_*
• Witnessed strong quarterly sales with doubling of sales from Rs 47 cr in Q2FY20 to Rs 99 cr in Q2FY20
• Saw capacity utilisation of 80%
• Lots of orders bunched up and also witnessing higher enquiries – this is likely to continue on 6 monthly basis
• During H1FY21 ramped up utilisation of cGMP-3 facility
• Expect to clock ~₹ 130cr revenues, may be lumpy on quarterly basis
• Next capex investment plan by the end of the year based on FY21E performance - 2.0-2.5x asset turnover over the next 2-3 years
• Simultaneously working on 20-25 projects with 10-15 customers
• 65-70% from top 3 molecules


*_ Specialty Chemicals_*
• Grew by 8.5% yoy to Rs 102 cr
• Exports 56%
• Business has shown sustained growth
• The company is optimally utilizing the facility and working on expansion plans
• Momentum to continue from Life Science (40%) and Crop Science (40%) segments, industrial (20%) to be back on track by end of the year

*_ Ref. Gas_*
• Revenues declined 17% yoy to Rs 58 cr
• Revenue was impacted due to major dip in Trade Market while exports were impacted due to softening of prices
• Though Non-emissive applications continue to show growth and the company is working on understanding the prospects of the next generation of ref gases
• 1H Exports – 47%

*_ Inorganic Fluorides _*
• Performance was muted with 6% yoy decline at Rs 49 cr sales as end-user segments were operating at lower capacity and prices were also under pressure due to low demand
• Despite this, Navin has added 2 new customers
• 1H exports 12%


*_ HPP – New Business Vertical_*
• Entered into a $410 million contract with a Global Company for manufacture and supply of a High-performance Product (HPP) in the fluorochemical space
• Investing $51.5mn (Rs. 365 crs) for dedicated manufacturing facility and ~$10mn (Rs.71 crs) for captive power plant
• Expected Commencement of Supplies from Q4FY22

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*Arvind Ltd.* | *CMP* Rs. 34 | *M Cap* Rs. 880 Cr | *52 W H/L* 56/19
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 1305 Cr (117.8% QoQ, -33.5% YoY) vs QoQ Rs. 599.3 Cr, YoY Rs. 1962.2 Cr
EBIDTA came at Rs. 121.5 Cr (-519.9% QoQ, -37.7% YoY) vs QoQ Rs. -28.9 Cr, YoY Rs. 195 Cr
EBITDA Margin came at 9.3% vs QoQ -4.8%, YoY 9.9%
Adj. PAT came at Rs. 23 Cr vs QoQ Rs. -95.3 Cr, YoY Rs. 43.2 Cr
Quarter EPS is Rs. 0.9
Share is trading at P/E of 3.9x FY22E EPS

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*Bharat Petroleum Corporation Ltd.* | *CMP* Rs. 334 | *M Cap* Rs. 72455 Cr | *52 W H/L* 550/252
(Nirmal Bang Retail Research)
*Result is above expectations*
Revenue from Operations came at Rs. 50146.4 Cr (29.3% QoQ, -22.1% YoY) vs expectation of Rs. 50991.2 Cr, QoQ Rs. 38785.1 Cr, YoY Rs. 64340.8 Cr
EBIDTA came at Rs. 3851.2 Cr (-3.1% QoQ, 62.2% YoY) vs expectation of Rs. 2817.4 Cr, QoQ Rs. 3972.4 Cr, YoY Rs. 2374.9 Cr
EBITDA Margin came at 7.7% vs expectation of 5.5%, QoQ 10.2%, YoY 3.7%
Adj. PAT came at Rs. 2247.8 Cr vs expectation of Rs. 1399 Cr, QoQ Rs. 2076.2 Cr, YoY Rs. 1708.5 Cr
Quarter EPS is Rs. 10.4
Share is trading at P/E of 8.1x FY22E EPS

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*Gateway Distriparks Ltd.* | *CMP* Rs. 87 | *M Cap* Rs. 1086 Cr | *52 W H/L* 138/69
(Nirmal Bang Retail Research)
*Result is in-line with expectations*
Revenue from Operations came at Rs. 262.5 Cr (3.8% QoQ, -19.3% YoY) vs expectation of Rs. 250.2 Cr, QoQ Rs. 252.8 Cr, YoY Rs. 325.1 Cr
EBIDTA came at Rs. 65.2 Cr (-6.6% QoQ, -8.7% YoY) vs expectation of Rs. 61.2 Cr, QoQ Rs. 69.9 Cr, YoY Rs. 71.5 Cr
EBITDA Margin came at 24.8% vs expectation of 24.4%, QoQ 27.6%, YoY 22%
Adj. PAT came at Rs. 4.3 Cr vs expectation of Rs. 4 Cr, QoQ Rs. 11.3 Cr, YoY Rs. 17 Cr
Quarter EPS is Rs. 0.3
Share is trading at P/E of 12.5x FY22E EPS

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*Ganesha Ecosphere Ltd.* | *CMP* Rs. 274 | *M Cap* Rs. 597 Cr | *52 W H/L* 390/138
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 198 Cr (185.6% QoQ, -16% YoY) vs QoQ Rs. 69.3 Cr, YoY Rs. 235.6 Cr
EBIDTA came at Rs. 22.8 Cr (-775.8% QoQ, -26.2% YoY) vs QoQ Rs. -3.4 Cr, YoY Rs. 31 Cr
EBITDA Margin came at 11.5% vs QoQ -4.9%, YoY 13.1%
Adj. PAT came at Rs. 12.1 Cr vs QoQ Rs. -6 Cr, YoY Rs. 15.8 Cr
Quarter EPS is Rs. 5.6
Share is trading at P/E of 8.9x FY22E EPS

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*The Great Eastern Shipping Company Ltd.* | *CMP* Rs. 226 | *M Cap* Rs. 3322 Cr | *52 W H/L* 369/162
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 775 Cr (-27.5% QoQ, -5.2% YoY) vs QoQ Rs. 1068.4 Cr, YoY Rs. 817.5 Cr
EBIDTA came at Rs. 348.6 Cr (-43.1% QoQ, 45.2% YoY) vs QoQ Rs. 612.2 Cr, YoY Rs. 240 Cr
EBITDA Margin came at 45% vs QoQ 57.3%, YoY 29.4%
Adj. PAT came at Rs. 225.4 Cr vs QoQ Rs. 467.7 Cr, YoY Rs. -18.9 Cr
Quarter EPS is Rs. 15.3
Share is trading at P/E of 3.4x TTM EPS

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*Laurus Labs Ltd.* | *CMP* Rs. 327 | *M Cap* Rs. 17527 Cr | *52 W H/L* 343/59
(Nirmal Bang Retail Research)
*Result is above expectations*
Revenue from Operations came at Rs. 1138.8 Cr (16.9% QoQ, 59.9% YoY) vs expectation of Rs. 995.8 Cr, QoQ Rs. 974.3 Cr, YoY Rs. 712.4 Cr
EBIDTA came at Rs. 373.9 Cr (34.3% QoQ, 171.3% YoY) vs expectation of Rs. 281 Cr, QoQ Rs. 278.3 Cr, YoY Rs. 137.8 Cr
EBITDA Margin came at 32.8% vs expectation of 28.2%, QoQ 28.6%, YoY 19.3%
Adj. PAT came at Rs. 242.3 Cr vs expectation of Rs. 168.4 Cr, QoQ Rs. 171.8 Cr, YoY Rs. 56.6 Cr
Quarter EPS is Rs. 4.5
Share is trading at P/E of 28x FY22E EPS


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*Cholamandalam Investment & Finance Company Ltd. -S* | *CMP* Rs. 245 | *M Cap* Rs. 20081 Cr | *52 W H/L* 349/117
(Nirmal Bang Retail Research)
*Result is above expectations*
NII came at Rs. 1251.2 Cr vs expectation of Rs. 1014.9 Cr, YoY Rs. 1020 Cr, QoQ Rs. 983 Cr
PBP came at Rs. 899.6 Cr vs expectation of Rs. 649.8 Cr, YoY Rs. 618.5 Cr, QoQ Rs. 637.2 Cr
Provision came at Rs. 317.6 Cr vs expectation of Rs. 311.5 Cr, YoY Rs. 95.2 Cr, QoQ Rs. 56.2 Cr
Company has created additional provisions of Rs. 250 Cr towards macro provisions during this qtr. Cumulative additional provisions towards macros stand at Rs. 800 Cr (1.1% of AUM). The total provisions, including the additional macro provisions and the normal provisions created basis the prevailing ECL model is at Rs. 1688 Cr (2.6% of AUM).
PAT came at Rs. 431.9 Cr vs expectation of Rs. 359.2 Cr, YoY Rs. 307 Cr, QoQ Rs. 430.9 Cr
AUM came at Rs. 74471 Cr vs YoY Rs. 64409 Cr, QoQ Rs. 70826 Cr
Disbursement came at Rs. 6457 Cr vs YoY Rs. 7381 Cr, QoQ Rs. 3589 Cr
Gross NPA (%) came at 2.75% vs QoQ 3.3%
Net NPA (%) came at 1.35% vs QoQ 1.64%
Quarter EPS is Rs. 5.3
Share is trading at P/E of 13.1x FY22E EPS & 2.2x trailing P/BV

# Collection efficiency data is awaited

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*Aavas Financiers Ltd. - S* | *CMP* Rs. 1453 | *M Cap* Rs. 11389 Cr | *52 W H/L* 2101/846
(Nirmal Bang Retail Research)
*Result is ok*
NII came at Rs. 156 Cr vs YoY Rs. 104.7 Cr, QoQ Rs. 121.6 Cr
PBP came at Rs. 92.7 Cr vs YoY Rs. 95.5 Cr, QoQ Rs. 69.2 Cr
Provision came at Rs. 8.1 Cr vs YoY Rs. 4.5 Cr, QoQ Rs. 6 Cr
PAT came at Rs. 66.2 Cr vs YoY Rs. 76 Cr, QoQ Rs. 50.1 Cr
Quarter EPS is Rs. 8.4
Share is trading at P/E of 0x FY22E EPS & 5x trailing P/BV

# asset quality details are awaited

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*JK Paper Ltd.* | *CMP* Rs. 89 | *M Cap* Rs. 1593 Cr | *52 W H/L* 141/62
(Nirmal Bang Retail Research)
*Result ok*
Revenue from Operations came at Rs. 638.4 Cr (36.1% QoQ, -19.2% YoY) vs QoQ Rs. 469.2 Cr, YoY Rs. 790.6 Cr
EBIDTA came at Rs. 115.6 Cr (84.8% QoQ, -49.1% YoY) vs QoQ Rs. 62.6 Cr, YoY Rs. 227.1 Cr
EBITDA Margin came at 18.1% vs QoQ 13.3%, YoY 28.7%
Adj. PAT came at Rs. 34.7 Cr vs QoQ Rs. 3.5 Cr, YoY Rs. 123.7 Cr
Quarter EPS is Rs. 1.9
Share is trading at P/E of 4x FY22E EPS

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*Bank of Baroda Ltd.* | *CMP* Rs. 42 | *M Cap* Rs. 19406 Cr | *52 W H/L* 108/36
(Nirmal Bang Retail Research)
*Result is above expectations*
Net Interest Income came at Rs. 7508 Cr vs expectation of Rs. 6938 Cr, YoY Rs. 7028 Cr, QoQ Rs. 6816 Cr
Non Interest Income came at Rs. 2802 Cr vs expectation of Rs. 2625 Cr, YoY Rs. 2824 Cr, QoQ Rs. 1816 Cr
PBP came at Rs. 5552 Cr vs expectation of Rs. 4490 Cr, YoY Rs. 5336 Cr, QoQ Rs. 4320 Cr
Provisions came at Rs. 3002 Cr vs expectation of Rs. 4645 Cr, YoY Rs. 4209 Cr, QoQ Rs. 5628 Cr
Adj. PAT came at Rs. 1679 Cr vs expectation of Rs. 265 Cr, YoY Rs. 737 Cr, QoQ Rs. -864 Cr
Gross NPA came at Rs. 65698 Cr vs QoQ Rs. 69132 Cr at 9.14% vs QoQ 9.39%
Net NPA came at Rs. 16795 Cr vs QoQ Rs. 18450 Cr at 2.51% vs QoQ 2.83%
*Collection efficiency awaited*
Share is trading at P/E of 6.8x FY22E EPS & 0.3x trailing P/Adj. BV

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*Havells India Ltd.* | *CMP* Rs. 725 | *M Cap* Rs. 45357 Cr | *52 W H/L* 724.55/447
(Nirmal Bang Retail Research)
*Result is above expectations*
Revenue from Operations came at Rs. 2451.8 Cr (65.8% QoQ, 9.9% YoY) vs expectation of Rs. 2060 Cr, QoQ Rs. 1479.1 Cr, YoY Rs. 2230.3 Cr
EBIDTA came at Rs. 420.7 Cr (221.5% QoQ, 79.7% YoY) vs expectation of Rs. 218.7 Cr, QoQ Rs. 130.9 Cr, YoY Rs. 234.1 Cr
EBITDA Margin came at 17.2% vs expectation of 10.6%, QoQ 8.8%, YoY 10.5%
Adj. PAT came at Rs. 324.9 Cr vs expectation of Rs. 128.9 Cr, QoQ Rs. 63.3 Cr, YoY Rs. 181.4 Cr
Quarter EPS is Rs. 5.2
Share is trading at P/E of 53.6x FY22E EPS

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Good Afternoon to all the dear members and my colleagues

All the members and colleagues who want to continue to be a part of our Premium Family or want to become a part of our Premium Family can do so , by renewing their membership.We have started accepting payment for the month of November and it will be solely on FIRST COME FIRST SERVE BASIS.

Existing members you'll can renew your membership ASAP.

Charges

Yearly - 10k
Monthly - 1k

Dear All,

Nirmal Bang is inviting you to a Zoom webinar.
When: Nov 2, 2020 10:30 AM India
Topic: November Month Outlook

Register in advance for this webinar:
https://us02web.zoom.us/webinar/register/WN_Rvm75GbvT-iDp3LMXX8ihw


After registering, you will receive a confirmation email containing information about joining the WEBINAR. https://t.me/marketswizard

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*MarutiQ2FY21 Concall Update*
(Nirmal Bang Retail Research)

*Outlook: Positive*

*Demand remains healthy for Navratra as well as for November bookings*

• Volumes grew by +16% in the qtr; Domestic +19% & Exports -13%.
• Growth was led by small cars which form 71% mix. They grew by +24% YoY denoting downtrading.
• Rural retail growth was 10% in Sep & 4% for the qtr; Rural mix increased to 41% from 38% YoY.
• Share of replacement buyers has come down to 18% vs 26% YoY. Simultaneously first time buyers have increased.
• CNG continues to see increased acceptance. CNG mix increased to 11% from 7% YoY.
• There was a lot of pent-up demand post almost a 2 month lockdown.
• Demand has been improving and was good during Navratra festival but its sustainability needs to be monitored.
• Sales during Navratra were 97,000 against 76,000 last year (+28% YoY)
• Festival season in Kerala & West India was good.
• Bookings for Nov are at 85,000 against 76,000 last year (+12%).
• Model launch will not be delayed.
• EBITDA Margin came at 10.3% vs expectation of 9.3%. Margins were higher than estimates due to lower adspends and opex.
• Precious metal prices have been increasing although lower opex has compensated for this.

Share is trading at P/E of 28.9x FY22E EPS https://t.me/marketswizard

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*Surya Roshni Ltd.* | *CMP* Rs. 228 | *M Cap* Rs. 1240 Cr | *52 W H/L* 228/62
(Nirmal Bang Retail Research)
*Result has improved*
Revenue from Operations came at Rs. 1374.2 Cr (54.9% QoQ, 3.9% YoY) vs QoQ Rs. 887.1 Cr, YoY Rs. 1322.6 Cr
EBIDTA came at Rs. 100 Cr (131.5% QoQ, 18.9% YoY) vs QoQ Rs. 43.2 Cr, YoY Rs. 84.1 Cr
EBITDA Margin came at 7.3% vs QoQ 4.9%, YoY 6.4%
Adj. PAT came at Rs. 41.9 Cr vs QoQ Rs. 2.2 Cr, YoY Rs. 22.5 Cr
Quarter EPS is Rs. 7.7
Share is trading at P/E of 11.8x TTM EPS https://t.me/marketswizard

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*Canara Bank Ltd.* | *CMP* Rs. 86 | *M Cap* Rs. 12442 Cr | *52 W H/L* 234/74
(Nirmal Bang Retail Research)
*Result is above expectations*
Net Interest Income came at Rs. 6297 Cr vs expectation of Rs. 5719 Cr, YoY Rs. 3130 Cr, QoQ Rs. 6096 Cr
Non Interest Income came at Rs. 3155 Cr vs YoY Rs. 2070 Cr, QoQ Rs. 2650 Cr
PBP came at Rs. 4640 Cr vs expectation of Rs. 3865 Cr, YoY Rs. 2545 Cr, QoQ Rs. 4285 Cr
Provisions came at Rs. 4017 Cr, YoY Rs. 2038 Cr, QoQ Rs. 3826 Cr
Adj. PAT came at Rs. 444 Cr vs expectation of Rs. 32 Cr, YoY Rs. 365 Cr, QoQ Rs. 406 Cr
Gross NPA came at Rs. 53438 Cr vs QoQ Rs. 57526 Cr at 8.23% vs QoQ 8.84%
Net NPA came at Rs. 21063 Cr vs QoQ Rs. 24355 Cr at 3.42% vs QoQ 3.95%
Slippages came at Rs. 415 Cr vs QoQ Rs. 1675 Cr at 0.27% vs QoQ 1.03%
Share is trading at P/E of 12x FY22E EPS & 0x trailing P/Adj. BV

# Collection efficiency details are awaited https://t.me/marketswizard

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*Astec Lifesciences Ltd.* | *CMP* Rs. 1090 | *M Cap* Rs. 2136 Cr | *52 W H/L* 1367/306
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 155 Cr (38.5% QoQ, 10.5% YoY) vs QoQ Rs. 111.9 Cr, YoY Rs. 140.2 Cr
EBIDTA came at Rs. 29.5 Cr (4.3% QoQ, 93.3% YoY) vs QoQ Rs. 28.3 Cr, YoY Rs. 15.3 Cr
EBITDA Margin came at 19% vs QoQ 25.3%, YoY 10.9%
Adj. PAT came at Rs. 17.9 Cr vs QoQ Rs. 16.2 Cr, YoY Rs. 5.3 Cr
Quarter EPS is Rs. 9.1
Share is trading at P/E of 24.4x FY22E EPS https://t.me/marketswizard

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