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


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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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*Saint-Gobain Sekurit India Ltd.* | *CMP* Rs. 57 | *M Cap* Rs. 519 Cr | *52 W H/L* 76/26
(Nirmal Bang Retail Research)
*Result is ok*
Revenue from Operations came at Rs. 24.9 Cr (261.9% QoQ, -30% YoY) vs QoQ Rs. 6.9 Cr, YoY Rs. 35.5 Cr
EBIDTA came at Rs. 3.4 Cr (-177% QoQ, -25.4% YoY) vs QoQ Rs. -4.4 Cr, YoY Rs. 4.6 Cr
EBITDA Margin came at 13.7% vs QoQ -64.4%, YoY 12.9%
Adj. PAT came at Rs. 2.1 Cr vs QoQ Rs. -2.5 Cr, YoY Rs. 3.5 Cr
Quarter EPS is Rs. 0.2
Share is trading at P/E of 71.5x TTM EPS https://t.me/marketswizard

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*Strides Pharma Ltd – Q2FY21 Concall Update – Nirmal Bang Sec.*
*Outlook – Positive for near term*

_The stock is trading at 15.7x FY22E consensus earnings_

• Challenges during the quarter
o Softness during the quarter in frontends of US, UK and other parts of Europe
o Disruptions in manufacturing activity led to • Inventory depletion on few SKU’s at frontends and stock outs for certain products, mainly in the US • Lower order fulfilment predominantly in other regulated markets including supplies to Australia
o Manufacturing impacted in India due to employees getting covid positive (400 out of total 3000 manufacturing employees)
o Delay in some new product launches
• Outlook for 2HFY21
o However, the company is coming back to normalcy. Order books are full and expect strong rebound in H2FY21.
o The company is focusing on inventory replenishment to historical levels
o R&D filing momentum to pick up in H2 - Expect 8+ ANDA filings in the US and Other regulated markets to file 10+ products
• US
o 8% qoq - $54 mn
o Front end – 25% qoq – 85% of total US revenues
o Witnessed price erosion for the first time in select products due to COVID related challenges, market share gains on key products helped mitigate the same
o However, US – on track of guidance ($230-240mn for FY21, though on lower end) as market share for key base products continues to be steady, new launches gaining traction. *Hence expect strong rebound in 2H*
• Other Reg. Mkts
o $32 mn – 7% yoy growth
o Supplies to Arrotex in Australia were impacted during the quarter, expect bounce-back in H2FY21
o Strong order book visibility continues across key markets to drive future growth
o filed 8 new products and received 9 approvals in H1FY21
o Expect to file 10+ products in H2FY21
• Emerging markets
o Africa business grew 21% QoQ, continuing its growth momentum with healthy primary and secondary sales.
o While H1 FY21 has seen a strong comeback for Africa business, witnessing softness in certain therapeutic segments due to lower prescription rates in key markets
o Steady performance in the institutional business, *TLD to start contributing in H2FY21*
o TLD opportunity – WHO ($200-300mn mkt size) – approvals to come between Nov and Dec; in addition, looking to file for PEPFAR (additional $200-300mn) https://t.me/marketswizard

https://t.me/BooksMakeIndiaRead

*PTC India Financial Services Ltd. -S* | *CMP* Rs. 19 | *M Cap* Rs. 1217 Cr | *52 W H/L* 21/7
(Nirmal Bang Retail Research)
*Result has declined*
NII came at Rs. 95.4 Cr vs YoY Rs. 100.6 Cr, QoQ Rs. 84.6 Cr
PBP came at Rs. 89.5 Cr vs YoY Rs. 104.2 Cr, QoQ Rs. 83.2 Cr
Provision came at Rs. 41.1 Cr vs YoY Rs. 36.1 Cr, QoQ Rs. 40.6 Cr
Adj. PAT came at Rs. 31.9 Cr vs YoY Rs. 44.2 Cr, QoQ Rs. 26.6 Cr
O/s Loan Book came at Rs. 10483 Cr vs YoY Rs. 12098 Cr, QoQ Rs. 10369 Cr
Quarter EPS is Rs. 0.5
Share is trading at 0.6x trailing P/BV

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

https://t.me/BooksMakeIndiaRead

*Shriram Transport Finance Ltd. -S* | *CMP* Rs. 699 | *M Cap* Rs. 17689 Cr | *52 W H/L* 1332/429
(Nirmal Bang Retail Research)
*Result is above expectations*
NII came at Rs. 2085 Cr vs expectation of Rs. 1879 Cr, YoY Rs. 2104 Cr, QoQ Rs. 1874 Cr
PBP came at Rs. 1576 Cr vs expectation of Rs. 1491 Cr, YoY Rs. 1588 Cr, QoQ Rs. 1495 Cr
Provision came at Rs. 655 Cr vs expectation of Rs. 966 Cr, YoY Rs. 661 Cr, QoQ Rs. 1065 Cr
Co created covid provisions o Rs. 416 Cr during the qtr taking the cumulative covid provision to Rs. 2282 Cr (2.0% of AUM)
PAT came at Rs. 685 Cr vs expectation of Rs. 450 Cr, YoY Rs. 765 Cr, QoQ Rs. 320 Cr
Quarter EPS is Rs. 27.1
Share is trading at P/E of 6.2x FY22E EPS & 0.9x trailing P/BV

# Collection efficiency data is awaited https://t.me/marketswizard

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*Welspun Corp Ltd.* | *CMP* Rs. 113 | *M Cap* Rs. 2948 Cr | *52 W H/L* 234/55
(Nirmal Bang Retail Research)
*Result Declined*
Revenue from Operations came at Rs. 1157.7 Cr (-44.1% QoQ, -48.8% YoY) vs QoQ Rs. 2069.3 Cr, YoY Rs. 2263 Cr
pipe sales volume up by 12% qoq to 249kmt
EBIDTA came at Rs. 170.8 Cr (-5.5% QoQ, -41.5% YoY) vs QoQ Rs. 180.6 Cr, YoY Rs. 291.7 Cr
EBITDA Margin came at 14.8% vs QoQ 8.7%, YoY 12.9%
Adj. PAT came at Rs. 156.8 Cr vs QoQ Rs. 51.9 Cr, YoY Rs. 155.6 Cr
Quarter EPS is Rs. 6
Share is trading at P/E of 6.3x FY22E EPS
Net Cash stands at Rs. 655crvs. 198 cr in June 20 https://t.me/marketswizard

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*Shriram Transport:* Collection efficiency for September was at 95%. Co expects around 3% of customers to opt for restructuring. *Positive* https://t.me/marketswizard

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*Orient Cement Ltd.* | *CMP* Rs. 66 | *M Cap* Rs. 1357 Cr | *52 W H/L* 90/35
(Nirmal Bang Retail Research)
*Result marginally ahead of expectation*
Revenue from Operations came at Rs. 477.5 Cr (16.4% QoQ, -7.3% YoY) vs expectation of Rs. 507.4 Cr, QoQ Rs. 410.4 Cr, YoY Rs. 515 Cr
EBIDTA came at Rs. 113.2 Cr (15.3% QoQ, 111.1% YoY) vs expectation of Rs. 100.1 Cr, QoQ Rs. 98.2 Cr, YoY Rs. 53.6 Cr
EBITDA Margin came at 23.7% vs expectation of 19.7%, QoQ 23.9%, YoY 10.4%
Adj. PAT came at Rs. 34.8 Cr vs expectation of Rs. 28.3 Cr, QoQ Rs. 25.6 Cr, YoY Rs. -7.7 Cr
Quarter EPS is Rs. 1.7
Share is trading at P/E of 10.3x FY22E EPS

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*Q2FY20 Welspun corp Key takeways:*
*Outlook-Neutral*
Dispatch from US plant in Q2 was very low at around 6000-7000T Company had an order booking at the start of Q2 at 94000T and at the end of Q2 it has reached to 130000T. The production for dispatch of this order is on and will partially be done in Q3 than in Q4 and Q1FY21.
Dispatch from India in Q2 was around 145000T vs QoQ 1380000T and EBITDA / T in standalone operation is improved to 11800/T vs QoQ 7500 /T on account of product mix. High EBITDA / T looks unsustainable. The order book in India is 402000t which will be executed in H2
Dispatch from Saudi (JV) has improved to 98000T in Q2 vs 41000T in Q1 and EBITDA/T came at $255/T vs QoQ 293/T . Saudi (JV) has order book of 148000T which will be executed in H2 FY21
• The exports during the quarter has been relatively slow, welspun corp has been able to secure export order In new market ( Australia)
• The total order book stands at 701kt valued at Rs 6100cr, out of this the order book from India stands at 402KT, 130KT is US.
• Welspun corp has proposed the listing of Saudi JV, This will involve divestment of 30% of stake, this divestment is expected to bring liquidity to welspun corp, the proceeds will first be utilise to repay Mauritius liabilities which stands at $27-28mn. Remaining will be evaluated to pay dividend.
• The company is foraying into DI pipe segment-the investment for the project is Rs 1250cr ( spread across 18months), the set up will include steel making facility of 400kmpta and DI plant of 250kmpta. This project is expected to get commission in the next 18months. The project will be funded 70% from internal accruals and 30% debt. The project has an asset turnover of 1.1, ROCE of 18%.
• Out of the total gross debt of Rs 335cr, Rs 150cr belongs to India and Rs 185cr is US
• Out of the total Cash of Rs 990cr, Rs 880cr is from India and balance is US
• Bhopal project status- the company has relocated one more spiral mill from Anjar to Bhopal, this will commence operations by mid November 2020.

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*Zensar Technologies Ltd.* | *CMP* Rs. 187 | *M Cap* Rs. 4215 Cr | *52 W H/L* 223/64
(Nirmal Bang Retail Research)
Dollar revenue came at $ 131.6 mn vs expectation of $ 131.5 mn, QoQ $ 130.8 mn, YoY $ 152.3 mn
*Result is marginally ahead of expectations*
Revenue from Operations came at Rs. 979.5 Cr (-1.2% QoQ, -8.7% YoY) vs expectation of Rs. 981.1 Cr, QoQ Rs. 991.2 Cr, YoY Rs. 1072.3 Cr
EBIDTA came at Rs. 184.2 Cr (28.8% QoQ, 22.8% YoY) vs expectation of Rs. 140.8 Cr, QoQ Rs. 143 Cr, YoY Rs. 150 Cr
EBITDA Margin came at 18.8% vs expectation of 14.4%, QoQ 14.4%, YoY 14%
Adj. PAT came at Rs. 89.2 Cr vs expectation of Rs. 74.1 Cr, QoQ Rs. 73.3 Cr, YoY Rs. 79.9 Cr
Quarter EPS is Rs. 4
Share is trading at P/E of 12.6x FY22E EPS

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*Security And Intelligence Services India Ltd.* | *CMP* Rs. 353 | *M Cap* Rs. 5182 Cr | *52 W H/L* 624/314
(Nirmal Bang Retail Research)
*Result is in-line with expectations*
Revenue from Operations came at Rs. 2157.9 Cr (-0.4% QoQ, 3.3% YoY) vs expectation of Rs. 2149.6 Cr, QoQ Rs. 2166.7 Cr, YoY Rs. 2088.9 Cr
EBIDTA came at Rs. 129.7 Cr (7.3% QoQ, 4.9% YoY) vs expectation of Rs. 120.4 Cr, QoQ Rs. 120.9 Cr, YoY Rs. 123.7 Cr
EBITDA Margin came at 6% vs expectation of 5.6%, QoQ 5.6%, YoY 5.9%
Adj. PAT came at Rs. 108.1 Cr vs expectation of Rs. 56.8 Cr, QoQ Rs. 57.9 Cr, YoY Rs. 76.2 Cr
higher other income led to higher PAt
Quarter EPS is Rs. 7.4
Share is trading at P/E of 18.1x FY22E EPS

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