Viewpoint & Investment Ideas

Thermax Ltd has been actively making partnerships, growth capex & entering new markets.

Fri, 12 Sep 2025 04:14:37 GMT

Thermax Ltd (THERMAX) - ADD

TMX has been actively making partnerships, growth capex & entering new markets.
Order pipeline strengthening across industrial infra and products segments.
TBWES can double its topline with a reasonably sized supercritical boiler order
Chemicals hold bigger growth potential, though a few hurdles to cross
Infra segment’s margin improved yoy, helping grow adjusted EBITDA 20% in Q1FY26
We expect 15%/12% CAGR in ordering/revenues for next 3 years from TMX

This is a synopsis of the Research report issued by Kotak Securities Limited. This is not a comprehensive report and before taking any investment decision we request you to refer the detailed report including disclaimers by clicking here: https://www.kotaksecurities.com/stock-research-recommendations/. Further, the recipient of this material should take their own professional advice before investing. Disclaimer: https://www.kotaksecurities.com/disclaimer/research/

Looking to invest in Thermax Ltd (THERMAX) and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please refer the Risk Disclosure Document issued by SEBI and go through the Rights and Obligations and Do's and Dont's issued by Stock Exchanges and Depositories before trading on the Stock Exchanges .

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Eureka Forbes Ltd ticked most of the boxes in FY25

Mon, 04 Aug 2025 06:03:02 GMT

Eureka Forbes Ltd (EUREKAFORB)

EFL ticked most of the boxes in FY25: (1) product growth acceleration to high teens, (2) margin expansion and (3) healthy FCF generation.
EFL expects the product business to continue in its mid-to-high teens growth trajectory in FY26, notwithstanding the challenging market conditions.
Company will maintain its thrust on innovation to further reduce the total cost of ownership in water purifiers so as to accelerate penetration and improve its premium mix.
On the service front, management expects growth to accelerate in the next 3-4 quarters.
Management shared that the EBITDA margin will keep expanding year after year, even as it further ramps up A&P spends.
Our fair value is based DCF (discounted cash flow) methodology.

Note: This is a synopsis of the Research report issued by Kotak Securities Limited. This is not a comprehensive

report and before taking any investment decision we request you to refer the detailed report including

disclaimers by clicking here: https://www.kotaksecurities.com/stock-research-recommendations/. Further,

the recipient of this material should take their own professional advice before investing.

Disclaimer: https://www.kotaksecurities.com/disclaimer/research/

Looking to invest in Eureka Forbes Ltd (EUREKAFORB) and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Home First (HFFC) reported 24% earnings growth, with 19% net interest income growth in Q2FY25

Mon, 30 Dec 2024 07:06:36 GMT

Home First Finance (HOMEFIRST)

Home First remains consistent on operational and financial parameters.
Home First (HFFC) reported 24% earnings growth, with 19% net interest income growth in Q2FY25.
Gross stage-3 ratio was flat qoq at 1.7%, stage-2 ratio declined 6 bps qoq to 1.1%. While other asset classes have reported mixed trends residential home loans, as an asset class, continues to stand tall.
Home First, with 85% home loan exposure, is well-placed on the above.
We expect the company to deliver 25% earnings CAGR for FY25-27E.
We remain assertive with a BUY rating and FV of Rs1,360 (no change).

Note: The above is a brief note on the company, based on the inputs of KIEresearch report dated 25111Oct, 2024, which is available onour website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamenta1.

Disclaimer: http://bit.ly/2n5Ax1E

https://www.kotaksecurities.oom/ksweb/research/kotak-research-reports/top-weekly-picks

Looking to invest in HOME FIRST FINANCE (HOMEFIRST) and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please refer the Risk Disclosure Document issued by SEBI and go through the Rights and Obligations and Do's and Dont's issued by Stock Exchanges and Depositories before trading on the Stock Exchanges .

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

SAMHI is among India's largest hotel ownership & asset management platforms.

Mon, 04 Dec 2023 08:54:01 GMT

OPEN

SAMHI HOTELS LTD (SAMHI)

SAMHI is among India's largest hotel ownership & asset management platforms.
SAMHI ties up with international brands such as Marriott, IHG, and Hyatt, and is primarily focused on the mid-scale segment, with limited presence in the upscale segment.
Portfolio of 4,801 keys/31 operating hotels, built through an acquisition-led strategy.
Steady improvement in room rates will be the key driver for earnings growth.
Margin expansion of 280 bps over the next three years.
SAMHI has consistently demonstrated healthy cash generation relative to EBITDA.
BUY rating and a DCF-based FV

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 30 November 2023, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5Ax1E

https://www.kotaksecurities.com/ksweb/research/kotak-research-reports/top-weekly-picks

Looking to invest in SAMHI HOTELS LTD and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Infosys signed 21 large deals in Q2FY24

Tue, 21 Nov 2023 09:16:13 GMT

OPEN

INFOSYS LIMITED (INFY)

Strong TCV (Total contract value) lays the foundation for growth acceleration in FY25E.
Infosys signed 21 large deals in Q2FY24, higher than past couple of quarters. These included four mega deals.
The deal pipeline is reasonably strong even after the recent conversion of the pipeline into deals, a positive.
Well-poised to continue to benefit from large and mega deal opportunities.
Infosys managed to increase its EBIT margin sequentially despite headwinds in Q2FY24.
We assume a 20.9% EBIT margin in FY24E & 70 bps improvement to 21.6% in FY25E.
The company remains focused on increasing medium-term margins.
We value the stock at a 22x multiple on Sep'25E earnings. Maintain BUY.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 12'" October 2023, which is available on their website at:

https://www.kotaksecurities.com/ksweb/ResearchCalt/Fundamental.

Disclaimer: http://bit.ly/2n5Ax1E https://www.kotaksecurities.com/ksweb/research/kotak-research-reports/top-weekly-picks

Looking to invest in INFOSYS LTD and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Pricing woes unlikely to continue much beyond Q2FY24 for lnterGlobe Aviation

Mon, 09 Oct 2023 05:42:43 GMT

OPEN

InterGlobe Aviation (INDIGO)

Pricing woes unlikely to continue much beyond Q2FY24.
We highlight the improving trajectory of forward prices, reflecting the case of airlines passing on the cost increase.
The rates 10 weeks in advance are higher than current rates and up 20% yoy.
P&W (Pratt & Whitney) woes are now likely to impact profitability over FY2024-26, a transitory issue.
We expect earnings per share (EPS) of Rs185.7 in FY24E and Rs179.7 in FY25E.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 25th September 2023, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCalVFundamental.

Disclaimer: http://bit.ly/2n5Ax1E

https://www.kotaksecurities.oom/ksweb/research/kotak-research-reports/top-weekly-picks

Looking to invest in INTERGLOBE AVIATION and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Canara Bank reported 75% yoy earnings growth

Mon, 31 Jul 2023 06:06:28 GMT

OPEN

Canara Bank (CANBK)

Canara Bank reported ~75% yoy earnings growth led by ~15% yoy growth in operating profit and ~25% yoy decline in provisions.
NII (Net Interest Income) growth was healthy at 28% yoy.
Asset quality improvement continued as NPL (Non-Performing Loan) ratios declined and slippages were at a modest level.
Loan growth was healthy (13% yoy, 3% qoq) while NIM (Net Interest Margin) was flat qoq.
The bank reported another quarter of >1% RoA (Return on assets) and ~19% RoE (Return on Equity) led by further decline in credit cost.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 24m July 2023, whichis available onour website at: https://www.kotaksecurities.com/ksweb/ResearchCalVFundamental. Disclaimer: http://bit.ly/2n5Ax1E

https://www.kotaksecurities.com/ksweb/research/kotak-research-reports/top-weekly-picks

Looking to invest in CANARA BANK and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Macro opportunities are still quite large for even a large bank like HDFC Bank

Mon, 10 Jul 2023 05:51:41 GMT

OPEN

HDFC Bank Ltd (HDFCBANK)

Macro opportunities are still quite large for even a large bank like HDFC Bank and can be captured across retail, corporate, SME, payments, among others.
Continuing to build a strong revenue model.
Leveraging the group's strength under the bank umbrella.
Looking comfortable ahead of the merger at this point.
Management believes that the headroom to strengthen the franchise is large.
We maintain BUY with a Fair Value of Rs1,925, valuing the bank at 2.7x book.

Note: The above isa brief note on the company, based on the inputs of KIE research report dated 25th May 2023, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCalVFundamental. Disclaimer: http://bit.ly/2n5Ax1E

https://www.kotaksecurities.com/ksweb/research/kotak-research-reports/top-weekly-picks

Looking to invest in HDFC BANK and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

CESC's strong headline grows (28% yoy) primarily on the back of higher unit sales

Mon, 12 Sep 2022 04:44:29 GMT

OPEN

CESC Ltd (CESC)

Strong headline growth (28% yoy) primarily on the back of higher unit sales.

Lower effective tax rate of 17% aided in boosting PAT growth (+5.5% yoy) in Q1FY23.

Dhariwal appears to have settled with improved PLF.

Strong standalone sales on the back of increase in unit sales & marginally lower tariffs.

WBERC awarded tariff order for FY21-23 & annual performance review orders of FY15-18.

Stability of regulated business, moderating losses from new distribution circles.

Reasonable valuations at 6X P/E & 0.8X P/B on FY23E; Maintain BUY.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 10 ^th August 2022, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

https://www.kotaksecurities.com/ksweb/research/kotak-research-reports/top-weekly-picks

Looking to invest in CESC and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

ICICI Prudential's inexpensive valuation drive Buy rating with fair value of Rs. 650

Mon, 25 Jul 2022 05:29:39 GMT

OPEN

ICICI Prudential Life Insurance (ICICIPRULI)

Inexpensive valuation drives Buy rating with a fair value of Rs. 650.

Margins continue to expand.

Agency channel growth remains strong.

Persistency improving in most buckets.

Operating return on embedded value of ~16-17% over the medium term.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 18 ^th July 2022, which is available on our website at https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental .

Disclaimer: http://bit.ly/2n5AxIE

https://www.kotaksecurities.com/ksweb/research/kotak-research-reports/top-weekly-picks

Looking to invest in Macrotech Developers and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Lodha clocked Rs9,020 cr (+51% yoy) pre-sales during FY2022

Mon, 02 May 2022 05:03:42 GMT

OPEN

Macrotech Developers Ltd (LODHA)

Lodha with its diversified presence across different markets across MMR (Mumbai Metropolitan Region) is handsomely placed amongst peers to gain further market share.

Lodha clocked Rs9,020 cr (+51% YoY) pre-sales during FY2022 was amongst the strongest performance delivered by the company. This was supported by robust sales of Rs3450 cr (+37% YoY) in 4QFY22.

Lodha has given guidance of pre-sales of Rs11,500 cr (+27% YoY) in FY23. Lodha is planning launches of 87 lakh sq. ft in FY23.

The company’s net debt dropped to Rs9,300 cr in FY22 from Rs16,100 cr in FY21, plans to reduce below Rs6,000 cr by FY23.

Management expects to pass on the cost increase to customers in the form of price hikes in the range of 6-8%.

We arrive at the sum of the parts based fair value of Rs1,350. The residential portfolio contributes 52% of the GAV (Gross Asset Value) of Rs60,900 cr.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 28 ^th April 2022, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Macrotech Developers and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

HDFC Bank reported 23% yoy earnings growth.

Mon, 25 Apr 2022 05:48:44 GMT

OPEN

HDFC Bank Ltd (HDFCBANK)

HDFC Bank reported 23% yoy earnings growth.

The earnings trajectory is quite healthy.

Headline NPL ratios showed improvement with gross NPL ratio declining ~10 bps to 1.2% and net NPLs are at 0.3% of loans.

Slippages were at 1.3% and restructured loans were at 1% of loans.

Management built a thesis that it would not want to alter the growth trajectory of the bank and remain as competitive as it has always been.

We maintain BUY rating with FV at Rs. 1,650.

At our FV, we value the bank at 2.6X book and 20X FY2024E EPS for RoEs at 15-16% levels and 15% CAGR (adjusted for merger).

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 17 ^th April 2022, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in HDFC Bank and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

HDFC Bank and HDFC Ltd announced that they have secured board approval for an amalgamation into the bank.

Mon, 18 Apr 2022 05:47:16 GMT

OPEN

HOUSING DEVELOPMENT FINANCE COOPERATION LTD (HDFC)

HDFC Bank and HDFC Ltd announced that they have secured board approval for an amalgamation into the bank.

Shareholders of HDFC Ltd will receive 42 shares of HDFC Bank in lieu of 25 shares of HDFC Ltd.

We believe it will benefit in building a long-duration mortgage book – another lever for secured growth.

A long-duration book is a key positive outcome from this deal. It brings stability to the loan book and also significantly reduces the pressure during periods of economic slowdown.

The near-term outlook would be to manage the liability transition.

However, the medium-term outlook post this acquisition is likely to be favorable.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 4 ^th April 2022, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in HDFC and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Home First’s business model is relatively more scalable compared to most other affordable housing financiers

Mon, 11 Apr 2022 05:52:00 GMT

OPEN

Home First Finance Ltd. (HOMEFIRST)

We like the affordable housing space in general and Home First remains our top pick.

Home First’s 3QFY22 performance reflects a firm exit from the Covid-related slowdown with 8% QoQ loan growth for the second consecutive quarter.

Home First’s business model is relatively more scalable compared to most other affordable housing financiers who expand in a contiguous manner.

We have good visibility for medium-term growth trajectory. High loan growth (28% loan book CAGR during FY2022-25E) driving 22% EPS CAGR with 2-7-3% RoA and mid-teens RoE.

A likely rating upgrade for Home First may be positive in this regard.

BUY with RGM-based FV of Rs. 960 (4.2X book March 2024E).

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 29 ^th January 2022, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Home First Finance Ltd and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

SBI reported an impressive performance with 80% yoy earnings growth on the back of 18% yoy decline in provisions.

chbatavia@gmail.com (Chirag Batavia) — Mon, 04 Apr 2022 07:53:00 GMT

OPEN

State Bank Of India (SBIN): BUY

SBI is our top pick among banks.

We have multiple levers that could keep RoEs at 15%+ levels in the medium term.

The bank has been able to defend its liability franchise strongly while its efforts at innovation allow it to compete with private bank peers.

SBI’s loan book could be relatively well-positioned in a rising interest rate environment.

There is a high probability that RoEs could surpass 15% levels for the next few years.

Valuations remain undemanding given the medium trends expected on RoEs.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 6 ^th February 2022, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in SBI and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

IRB is entering into a strong growth trajectory with healthy visibility on construction revenues

chbatavia@gmail.com (Chirag Batavia) — Mon, 28 Mar 2022 04:49:50 GMT

OPEN

IRB Infrastructure Develop Ltd (IRB)

IRB is entering into a strong growth trajectory with healthy visibility on construction revenues, a sharp uptick in toll revenues driven by improved traffic and toll rate hike, sufficient growth capital for incremental order wins, and reduced debt.

IRB completed stake transfer to GIC and Ferrovial group which we believe sets the company ahead of peers in terms of access to growth capital, global best practices along technical expertise.

IRB has already repaid Rs3,250 cr of debt and has Rs1,500 cr available as growth capital. This growth capital is sufficient to bid for opportunities worth Rs15,000-20,000 cr across projects in partnership with GIC.

Order inflow during Q3FY22 was up sharply on large order win of Ganga Expressway with EPC potential of Rs6000 cr.

IRB does not require to bid aggressively for projects as the current order book of Rs 18,500 cr can generate 15-17% CAGR in EPC revenues easily.

We arrive at a sum of the parts based fair value of Rs325.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 14 ^th February 2022, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in IRB and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

HDFC reported strong performance across most parameters in 3QFY22

chbatavia@gmail.com (Chirag Batavia) — Mon, 07 Mar 2022 05:00:26 GMT

OPEN

HOUSING DEVELOPMENT FINANCE COOPERATION LTD (HDFC)

HDFC reported strong performance across most parameters in 3QFY22.

HDFC remains well placed to capture growth in the real estate upcycle - individual disbursements are already close to peak, high-yield construction finance will likely pick up with the launch of new projects.

With most NBFCs slowing down in real estate lending, we expect pricing power for HDFC to remain strong.

A combination of high momentum in a retail business, pick up in high-yield non-individual loan book will support core earnings.

Faster rate transmission in this cycle and limited competition in the non-individual book will augur well.

We retain BUY on HDFC with SOTP-based FV of Rs. 3,400; at our FV for the core business, HDFC will trade at 2.9X FY2024E core book.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 3 ^rd February 2022, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in HDFC and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Tata Steel management expects steel demand in India to recover sharply post the monsoon and regional festivities in 1HCY22

chbatavia@gmail.com (Chirag Batavia) — Mon, 14 Feb 2022 05:09:36 GMT

OPEN

TATA STEEL (TATASTEEL)

Management expects steel demand in India to recover sharply post the monsoon and regional festivities in 1HCY22

Demand in Europe has recovered to pre-pandemic levels despite auto demand being impacted by semiconductor shortages.

Management indicated that margin is expected to improve sequentially in Europe due to contract revisions, whereas in India it is expected to contract further.

Management shared that they can reach 40-50 mtpa steel capacity in India from the current 18 mtpa through brownfield expansions.

TATA has reduced (adjusted) net debt by 8% QoQ to Rs69300 cr (-25% YoY) as of 3QFY22.

TATA’s NINL acquisition, although expensive, opens growth options and internal cash-flows would comfortably fund growth projects without adding leverage.

Stock trades at attractive 4.5X EV/EBITDA FY2023E despite assuming further moderation in margins.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 8 ^th February 2022, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Tata Steel and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

GAIL's gas marketing profitability to remain elevated in Q4FY22.

chbatavia@gmail.com (Chirag Batavia) — Mon, 07 Feb 2022 06:33:13 GMT

OPEN

GAIL (India)

Robust Q3FY22 performance led by gas marketing, petchem, and LPG (Liquefied petroleum gas) segments. Six LNG cargoes from the US were sold in overseas markets in Q3FY22 versus eight in Q2FY22 and 14 in Q1FY22 given an increase in domestic demand.

Gas marketing profitability to remain elevated in Q4FY22.

Gas marketing segment EBITDA jumped to record levels in 3QFY22 driven by robust spreads for US LNG versus spot LNG.

We expect operating performance improvement across key segments in FY22-24E. We expect robust contribution from key business segments during FY2022-24E.

We expect GAIL to benefit from—(1) elevated LNG and crude prices and (2) the uptick in domestic gas supply and consumption over the next few years.

Sum-of-the-parts based fair value is Rs.195. GAIL trades at attractive valuations

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 4 ^th February 2022, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in GAIL India and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

GMR Airports’ partnership with Group ADP has enhanced its capabilities in retail.

chbatavia@gmail.com (Chirag Batavia) — Mon, 31 Jan 2022 06:46:29 GMT

OPEN

GMR Infrastructure Ltd (GMRINFRA)

GMR Airports is uniquely placed in India in terms of capabilities across (1) commercial property development, (2) MRO operations for aircraft, (3) duty-free sales, (4) advertising, and (5) cargo handling.

GMR Airports’ partnership with Groupe ADP has enhanced its capabilities in retail. It is among the select few that have constructed airports in Asia outside their home country.

The past decade has helped GMR Airports take out regulatory dependence and build key capabilities. The next decade would see the company take out business risks and financial leverage of its existing portfolio, with 35 years of concession remaining.

The stage is set for GMR Airports to add new concessions as it leverages the current momentum towards airport privatization in Southeast Asia.

We initiate on GMRI (after demerger) with the sum of the parts (SoTP) based fair value (FV) of Rs48, including a 10% add-on platform value.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 25 ^th January 2022, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in GMR Infrastructure and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Apollo Hospitals continues to move from strength to strength

chbatavia@gmail.com (Chirag Batavia) — Tue, 25 Jan 2022 05:59:38 GMT

OPEN

Apollo Hospitals (APOLLOHOSP)

APHS continues to move from strength to strength and is executing well on leveraging its large and widespread existing infrastructure to create a strong digital ecosystem.

24/7 has also enhanced its brand visibility through a robust marketing and is witnessing strong traction.

With an impending fundraise in HealthCo, we believe APHS can better compete with other e-health players and accelerate its digital journey.

Offline pharmacy stores will continue to be added at a rate of 350-400 stores per year (net 174 added in 1HFY22).

APHS has demonstrated a track record of creating new verticals in the past while the market remains competitive.

We are impressed by APHS’ execution across segments and raise our FY2022-24 EBITDA estimates by 8-14% led by higher growth in the pharmacy and healthcare business.

We have also raised our multiple for the healthcare business to 24X (versus 22X earlier) thereby revising Fair Value to Rs5,200. Retain ADD.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 16 ^th November 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Apollo Hospitals and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Max Financial Services business remains highly profitable with 21% medium-term operating RoEV

chbatavia@gmail.com (Chirag Batavia) — Mon, 17 Jan 2022 04:17:19 GMT

OPEN

Max Financial Services (MFSL)

The business remains highly profitable with 21% medium-term operating RoEV.

VNB margin will likely expand to 26.5% from 25.3% in 1HFY21 – this reflects the benefit of higher volumes in 2H and interplay of renewed focus on protection and non-par business (low base of 4QFY21), offset by higher ULIPs.

A high APE base will likely suppress yoy APE growth in 2H although large Covid-related reversals in 4QFY21 will provide some support to VNB.

Axis Bank remains a strong medium-term growth driver even as a balanced product mix and continued focus on protection will sustain high margins.

At our FV, the stock will trade at 3.1X EV December 2023E.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 10 ^th November 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Max Financial Services and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Dalmia Bharat turned net cash in Q2FY22 on strong operational cash flows and limited capex.

chbatavia@gmail.com (Chirag Batavia) — Tue, 04 Jan 2022 06:17:00 GMT

OPEN

Dalmia Bharat (DALBHATAR)

We expect Dalmia Bharat’s volumes to grow at the rate of 15% over FY21E-24E.

The ongoing expansion projects are progressing towards increasing total capacity. The company aims to increase capacity by 15% CAGR in the current decade and is likely to share more details in the next 3-4 quarters.

Dalmia Bharat turned net cash in Q2FY22 on strong operational cash flows and limited capex. We expect leverage to remain stable despite increase in capex.

Divestment of non-core investments and focus on organic growth will help address investor concerns on capital allocation.

The company provides strong growth visibility with balance sheet strength and improving capital allocation.

Our Fair Value of Rs2,250/share is based on 9x EV/EBITDA December 2023E. (EV/EBITDA - Enterprise Value / Earnings Before Interest, Taxes, Depreciation, and Amortization)

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 28 ^th October 2021, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Dalmia Bharat and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Jubilant is progressing well in its transition into a multi-brand Quick Service Restaurant.

chbatavia@gmail.com (Chirag Batavia) — Mon, 27 Dec 2021 06:46:32 GMT

OPEN

Jubilant Foodworks (JUBLFOOD)

JUBI is progressing well in its transition into a multi-brand Quick Service Restaurant.

JUBI continues to focus on higher adoption of digital assets.

Management highlighted strong recovery in a number of orders during the last 4 months.

We expect JUBI to accelerate the ramp-up of Popeyes & Hong's Kitchen starting FY23E.

Raw material inflation offset by price increase and productivity gains.

We model structural improvement in Domino's revenue throughput, associated operating leverage and marginally higher store additions.

We expect earnings to grow by 54.2% in FY23E & grow by 22.2% in FY24E.

Our Fair Value of Rs4,200 is based on Rs3,550 from Domino's (58X Dec-23E PE, ex-Ind-AS 116) + option value of Rs650 from new brands/ investments.

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 21 ^st October 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Jubilant Foodworks and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Kotak Securities Market Outlook 2022 Is Finally Here!

chbatavia@gmail.com (Chirag Batavia) — Wed, 22 Dec 2021 09:21:14 GMT

Kotak Securities Market Outlook 2022

Click here to know our insights on the markets, commodities and currencies for CY2021 and our outlook for CY2022

Disclaimer: bit.ly/longdisc

Looking to invest in Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

HCL Tech has revenue acceleration and compelling valuations.

chbatavia@gmail.com (Chirag Batavia) — Mon, 20 Dec 2021 09:56:25 GMT

OPEN

HCL Technologies Ltd (HCLTECH)

HCL Tech has revenue acceleration and compelling valuations.

Deal wins have picked up over the past three quarters.

We forecast double-digit services growth rate over the next three years.

We expect earnings to grow by 14.4% in FY23E and 11.5% in FY24E.

Margins have toughed out in the most recent quarter and will improve.

Margin defence will likely be better in FY23E. HCLT has more levers to defend margins than peers.

A good capital allocation policy of payout of 75% of net income is welcome.

We value services business at 25x September2023E EPS

Note: The above is a brief note on the company, based on the inputs of the KIE research report dated 29th November 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in HCL Technologies and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Mahindra & Mahindra will launch new products and will expand the dealer network

chbatavia@gmail.com (Chirag Batavia) — Mon, 13 Dec 2021 03:20:15 GMT

OPEN

Mahindra & Mahindra (M&M)

In tractor segment, the company will launch new products and will expand the dealer network in order to further consolidate its market share. Overall, the company remains optimistic about medium-term growth prospects led by (1) strong product pipelines, (2) scale-up in exports and farm implement revenues and (3) channel expansion.

With successful launches in the utility vehicle (UV) segment, we expect strong recovery in automotive segment volumes once the chip shortage situation resolves. The company intends to launch differentiated and profitable products. The company intends to launch 13 new products by CY27E.

In the light commercial vehicle (LCV) business, the company will launch 17 new products by CY26E to strengthen its leadership position.

The company has been successful in turning around international farm and auto subsidiaries in challenging times, which is impressive.

Over the next two-three years, the company will provide electric vehicle (EV) offerings from its current sports utility vehicle (SUV) portfolio with the help of relevant partnerships and its research arm.

Maintain BUY rating on attractive valuations; our fair value is based on sum-of-the-parts valuation.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 9 ^th November 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in M&M and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Just Dials collections & deferred revenue up 14% & 20% YoY respectively

chbatavia@gmail.com (Chirag Batavia) — Wed, 01 Dec 2021 08:07:19 GMT

OPEN

Just Dial (JUSTDIAL)

We expect Just dial to invest in new products and improvement of its existing offerings.
Just Dials collections & deferred revenue up 14% & 20% YoY respectively, indicating a recovery in next quarters.
JUST’s unique visitors improved 14.5% YoY to 15 crore visitors in Q2FY22.
Rs.2165 crore was infused via preferential allotment by Reliance Retail Ventures (RRVL) in Q2FY22. RRVL has acquired ~67% stake in the company after buying a stake from the promoter and open offer.
Strategic outlook. (1) JUST management wants to move the company from only a search destination to a deeper engagement led enabling transaction platform. (2) It will put in place the dedicated teams for each of the categories like JDMart, JDXpert. (3) Tech and content related investments. JUST already has 340-350 engineers. It will beef this team-up. It has already hired more in technology, product, marketing, content.
Retain ADD with a fair value of Rs1,010 based on September 2023E P/E of 23x.

Looking to invest in Just Dial and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Aarti Industries management re-iterated their guidance of 25-35% PAT growth for FY2022

chbatavia@gmail.com (Chirag Batavia) — Fri, 26 Nov 2021 06:39:07 GMT

OPEN

Aarti Industries (AARTIIND)

Management re-iterated their guidance of 25-35% PAT growth for FY2022 and expects growth to accelerate further led by commissioning of new projects in 2HFY22.

2QFY22 performance was directionally positive but high commodity prices led to slight miss in estimates.

Pharma profitability is likely to ramp up hereon given 2Q profitability was impacted by (1) delay in shipments for a large order which would normalize in 3QFY22, (2) ramp up of new capacities for pharma API/intermediates in 2HFY22 and (3) normalization of impact from a new plant commissioning in 2QFY22.

Specialty Chemicals capacity utilisation has improved and is running at 80-90% level. New projects will start generating revenue from FY2023E.

Two of three long-term contracts expected to start contributing to revenue in FY2022; Contract 1 will also start getting monetized from FY2023

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 2 ^nd November 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Aarti Industries and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Tata Motors has done well to manage its profitability in the JLR business despite lower volumes and has been successful in bringing down the PBT breakeven point.

chbatavia@gmail.com (Chirag Batavia) — Thu, 18 Nov 2021 07:25:15 GMT

OPEN

Tata Motors (TATAMOTORS)

The company has done well to manage its profitability in the JLR business despite lower volumes and has been successful in bringing down the PBT breakeven point. Once the chip shortage resolves, we expect profitability to improve sharply for the JLR business.

JLR quarterly break-even wholesale volumes have come down to 90,000 units in 1HFY22 from 165,000 units in FY19.

We believe the domestic electric passenger vehicle (PV) business can be the game changer for the company given strong government push amid favorable policies and growing consumer demand for greener solutions.

Recovery in JLR volumes on easing of supply-chain disruptions, market share gains in the domestic PV business and uptick in the domestic commercial vehicle (CV) business should drive strong earnings growth for the company over the coming years.

Tata Motors has strong liquidity and debt securities are well spread-out. In terms of liquidity, JLR has adequate cash balances with additional undrawn revolving facility.

Our fair value is based on sum-of-the-parts valuation. We value the JLR business based on 6x Dec’23 EPS (earnings per share) and the domestic CV business based on 13x Dec’23 EV/EBIT multiple (Enterprise Value/ Earnings before Interest and Tax).

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 1 ^st November 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Tata Motors and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

ICICI Banks headline NPA declines as recovery and upgrades match slippages.

chbatavia@gmail.com (Chirag Batavia) — Mon, 01 Nov 2021 07:13:19 GMT

OPEN

ICICI Bank Ltd. (ICICIBANK)

ICICI Bank reported ~30% YoY earning growth on 20% yoy operating profit growth.
Headline NPA declines as recovery and upgrades match slippages.
Well diversified loan growth of 17% YoY; Deposit grew 17% yoy.
NIM were at all-time high of 4%, increased by ~10 bps qoq.
Gross NPL declined 25 bps qoq to 4.8%. The provision cover is 80%.
We maintain our positive view, our top pick.
The scope of earning upgrades remain high. Valuation has room for expansion.
We maintain Buy with revised Fair Value of Rs. 900 (at 2.6x Dec 23 book value) from Rs. 810.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 24 ^th October 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in ICICI Bank and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

Tech Mahindra BPO business of US$51.4 cr (FY2021) has grown at impressive CAGR (compound annual growth rate) of 14.7% in USD terms (higher in c/c) from FY17-21.

chbatavia@gmail.com (Chirag Batavia) — Mon, 04 Oct 2021 05:41:00 GMT

CLOSED

Tech Mahind ra

Tech Mahindra seems set for solid revenue growth. It has created additional engines of growth around specific horizontal and vertical offerings. Each of the offerings has the potential to achieve US$10 cr revenues in a few years and each has a dedicated leadership team.

It’s BPO business of US$51.4 cr (FY2021) has grown at impressive CAGR (compound annual growth rate) of 14.7% in USD terms (higher in c/c) from FY17-21.

Tech’s twin propositions of (1) do what is right for the customer even if it involves cannibalizing own revenues using automation, AI and platforms, and (2) deliver on outcome basis have resonated well in the market and have helped drive market share gain

Telecom vertical is showing signs of promise with qualified deal pipeline at an all-time high with deals that are modernization/getting ready for 5G or actual 5G deals.

We raise earnings estimates and Fair Value to Rs1,580 valuing the stock at 20x September 2023E EPS.

Key risks—extended phase of talent scarcity, where Tech Mahindra is more vulnerable than peers.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 31st August 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Tech Mahindra and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Zee Entertainment Board has approved a non-binding term sheet from Sony Pictures Network India (SPNI) for a potential merger of Zee and SPNI

chbatavia@gmail.com (Chirag Batavia) — Mon, 27 Sep 2021 09:27:00 GMT

Zee Entertainment Enterprises Limited. (ZEEL)

Zee Board has approved a non-binding term sheet from Sony Pictures Network India (SPNI) for a potential merger of Zee and SPNI (subject to due diligence and regulatory approvals) as per the following terms: (1) indicative merger ratio of 47.07%/52.93% (Zee: SPNI) post capital infusion of US$1.575 bn by SPNI; this deal values Zee at Rs250/share, (2) SPNI would be promoter of the MergeCo and have the right to nominate the majority of board members.

This deal would put an end to governance concerns and improve probability of success in digital. . Revenue and cost synergies could be in the range 5-7% each over 2-3 years in our view.

The MergeCo would become India’s #1 broadcaster with about 30% viewership market share and a portfolio with meaningful strength in Hindi and regional entertainment, and presence in sports genre and digital.

We raise FV to Rs400 valuing the business at about 22X 2-yr FY2024E potential earnings (including synergies).

Key risk to our call— deal not fructifying due to SPNI’s change in view post due diligence or lack of regulatory approvals. Even then, we expect shareholder activism to end governance concerns.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 23 ^rd September 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE .

Looking to invest in Zee Entertainment and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , smallcases , mutual funds and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Trinity Account

OPEN YOUR NRI ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC. Also, all calls with Lakshit Financial representatives may be recorded for internal quality & training purposes

Orient Cement deleveraging continues at an impressive pace given strong margins and limited capex

chbatavia@gmail.com (Chirag Batavia) — Mon, 13 Sep 2021 06:03:00 GMT

Orient Cement (ORIENTCEM)

Deleveraging continues at an impressive pace given strong margins and limited capex. The company has pre-paid all its debt maturities due till FY22.

We estimate net debt/EBITDA to reduce to 0.5x in FY22E from 3.1x/1.2x in FY20/21.

With a stronger balance sheet, ORCMNT is now working on growth projects. The company will spend Rs1500-2000 crs on these projects over FY22-25E.

In Q1FY21, EBITDA/ton increased to Rs1,368/ton (+14% yoy, +25% qoq; KIE: Rs1,167/ton)

Management expects costs to peak in H1FY22 and expects some moderation in H2FY22.

Recent amendments to the mining act should allow the company to transfer a limestone mining lease in Rajasthan to its name without additional royalty payment.

Our Fair Value is based on 6x September 2023E EV/EBITDA.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 3 ^rd August 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental .

Looking to invest in Orient Cement and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR NRI ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Jindal Steel & Power's steel EBITDA/ton increased 10% qoq in 1QFY22 on higher prices.

chbatavia@gmail.com (Chirag Batavia) — Mon, 06 Sep 2021 03:45:00 GMT

CLOSED

Jindal Steel & Power Ltd (JSPL)

JSP’s brownfield, low capital intensity expansion provides strong growth visibility.

JSP's steel EBITDA/ton increased 10% qoq in 1QFY22 on higher prices.

Management expects net sales realisation (NSR) to increase by Rs2,000-3,000/ton from average prices of 1QFY22.

We estimate deleveraging to continue despite growth capex. (pg1, para1, 4th line) JSP's net debt/EBITDA is likely to decline to 0.9X in FY23.

JPL’s divestment as a step in the right direction as it (1) significantly reduces leverage – net debt/EBITDA to reduce below 1X in FY2022 versus 1.5X earlier, (2) allows JSP to invest in high IRR growth projects, (3) increases return ratios as JPL has low single-digit RoCEs and (4) reduces JSP’s carbon footprint by ~50%.

Divestment of non-core power business, improvement in balance sheet and attractive growth plans makes a strong re-rating case.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 11 ^th August 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental .

Looking to invest in Jindal Steel & Power and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW, as an NRI , you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Demat & Trading Account.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

SCIL has a pipeline of five proprietary products from SCC to be made in India in the next two years and evaluating and discussing more.

chbatavia@gmail.com (Chirag Batavia) — Mon, 30 Aug 2021 05:06:00 GMT

Sumitomo Chemicals India Ltd (SCIL)

SCIL is part of Japan-based Sumitomo Chemical Company (SCC) and has a robust product portfolio which is diversified across agrochem value chain and also diversified across key crops.

We believe that SCIL is well placed against its domestic peers in terms of advantage of strong parentage, robust product pipeline, wide distribution and opportunities from contract manufacturing in future.

SCIL has a pipeline of five proprietary products from SCC to be made in India in the next two years and evaluating and discussing more.

We believe that SCC group’s acquisition of Nufram’s Latin American agrochem distribution business is expected to result in strong exports opportunity for SCIL.

SCIL has reported strong Q1FY22 performance. We expect 14.9% and 23% CAGR in revenue and PAT, respectively in FY21-24E with RoCE and RoEs of over 25% and 20%, respectively.

We value the stock at ~40x September 2023E earnings, based on merits against its domestic and MNC peers in the sector.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 6 ^th August 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Sumitomo Chemicals India and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

ICICI Bank’s balance sheet is one of the strongest among peers and is well placed to handle the Covid related stress.

chbatavia@gmail.com (Chirag Batavia) — Mon, 23 Aug 2021 04:21:00 GMT

ICICI Bank (ICICIBANK)

ICICI Bank’s balance sheet is one of the strongest among peers and is well placed to handle the Covid related stress. The bank will show faster recovery in growth and earning.

Covid has been a good testing phase for the bank’s retail book. The early result suggest that we can view the bank’s performance with optimism and it is likely to emerge out of crisis with best in class asset quality.

The book is well provided for (coverage of unsecured retail is at ~75-85% levels and corporate at ~85-90% as of FY21); we expect a marked decline in credit costs even in retail book once the economy recovers.

The bank has rerated after the initial correction in the first lockdown. The multiple expansion is likely to be contingent on steady growth, stable asset quality and best in class return ratios, which we reckon, there is a high probability of this coming through in the current leg of the cycle.

We value the bank at a fair value of Rs. 810 – 2.6x (adj) book value and 18x June 23 EPS.

Looking to invest in ICICI Bank and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

State Bank of India has a high coverage ratio and the risk of disappointment is low.

chbatavia@gmail.com (Chirag Batavia) — Wed, 18 Aug 2021 08:59:00 GMT

OPEN

State Bank of India (SBIN)

SBI is our top pick among PSU banks. It is well positioned to emerge from the pandemic stronger.
Asset Quality held up well in Q1FY22. Fresh impairments in the quarter held up closer to best-in-class banks. The retail book that is tested currently has lower impact of impairment.
The bank has a high coverage ratio and the risk of disappointment is low. It also has an additional provision buffer of ~1%. Any large slippage can be absorbed with less stress.
We expect a much better translation of operating profit to net profit led by lower credit costs resulting in strong recovery in RoEs. We expect it to be more aggressive on growth from hereon.
We value the bank at Rs. 550 - 1.3x (adj) book value and 8x FY23 EPS - for RoEs in the range of ~13-14%.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 4th August 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Just Dial and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

Bajaj Auto will be following three-fold strategies to gain market share in the domestic two wheeler market

chbatavia@gmail.com (Chirag Batavia) — Tue, 17 Aug 2021 06:16:00 GMT

Bajaj Auto: BUY

Dated: 17 ^th August 2021

CMP: Rs.3760

Fair Value: Rs.4650

Potential Upside: 24.0%
Market Cap: Rs.1,11,408 Cr
Time Frame: 12 months

We believe the company is well-placed to gain from rising exports, increase in market share in the premium motorcycle segment through exciting launches and incremental volumes by expanding in the electric scooter segment.

The company will be following three-fold strategies to gain market share in the domestic two wheeler market – (1) aggressive product launches in 125cc segment, (2) retaining dominant position in sports motorcycle segment (>250cc segment) and (3) providing innovative offerings in top-end of the entry motorcycle segment.

Bajaj Auto has gained 230 bps market share on a qoq basis in the domestic motorcycle segment in Q1FY22.

The company highlighted the export segment maintaining its momentum, which augurs well for them. We expect company’s export volume mix (in total volumes) to improve to ~56% in FY24E from 52% in FY21.

Bajaj Auto’s total volumes are expected to grow at 14% CAGR over FY21-24E. We expect Bajaj Auto’s earnings to grow at 18% CAGR over FY21-24E. (CAGR - compound annual growth rate)

Our fair value of Rs4,650 is based on the discounted cash flow (DCF) methodology.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 22 ^nd July 2021, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Bajaj Auto and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

CEAT Ltd highlighted that it needs to take price hike of 4-5% to reach margin levels of 10-12%

chbatavia@gmail.com (Chirag Batavia) — Mon, 02 Aug 2021 04:42:00 GMT

CEAT Ltd: BUY

Dated: 2 ^nd August 2021

CMP: Rs.1356

Fair Value: Rs.1500

Potential Upside: 10.6% Market Cap: Rs.5,485 Cr

Time Frame: 12 months

We expect volume growth to remain strong on account of strong replacement segment demand and recovery in the OEM segment in the near term.

The company has increased its market share across segments led by (1) improving quality of tires in the TBR segment, (2) widening its distribution network in the 2W segment and (3) further strengthening its OEM relationship and benefit of import restrictions in the PCR segment. (TBR – Truck Bus Radial; 2W – Two Wheeler; OEM - Original Equipment Manufacturer; PCR – Passenger Car Radial)

We expect the company to gain further 80 bps market share over the next two years led by (1) new order wins in the PCR segment and (2) improving brand perception in the TBR segment.

The company highlighted that it needs to take price hike of 4-5% to reach margin levels of 10-12%, which it might take over the course of 2QFY22.We would like to note that the international rubber prices have corrected by 20-25% from its top and we expect the raw material basket to come down from 3QFY22E onwards.

We expect the company to deliver 13% revenue CAGR in consolidated entity over FY21-24E. We expect standalone EBITDA to grow at 12% CAGR over FY2021-24E. (EBITDA - Earnings before interest, taxes, depreciation, and amortization; CAGR - Compound annual growth rate).

We value the company at a PE of 12x September 2023E earnings.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 22 ^nd July 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in CEAT Ltd and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

ITC Ltd revenues grew 23% yoy to Rs13,295 cr in Q4FY21, 16% ahead of our estimate on account of a significant beat in agri business.

chbatavia@gmail.com (Chirag Batavia) — Mon, 19 Jul 2021 08:39:00 GMT

ITC Ltd: BUY

Dated: 19 ^th July 2021

CMP: Rs.208

Fair Value: Rs.257

Potential Upside: 23.6%
Market Cap: Rs.2,55,861 Cr
Time Frame: 12 months

Revenues grew 23% yoy to Rs13,295 cr in Q4FY21, 16% ahead of our estimate on account of a significant beat in Agri business.

Cigarette business witnessed month-on-month recovery during Q4FY21 with easing of restrictions and improved mobility until the second wave of the pandemic.

Cigarette volume grew 7% yoy (11% decline in base quarter) as per our estimate & cigarette EBIT grew 8% yoy.

FMCG business witnessed continued recovery for Q4FY21 in Discretionary/’out-of-home’ categories (sales up 23% yoy off a weak base) and normalization of demand in staples, convenience foods, health & hygiene products (sales up 13% yoy).

Hotel segment registered good sequential recovery led by pick-up in weddings, getaways, staycations and robust recovery in F&B sales, while Agri business registered 79% yoy (KIE 7%) growth.

ITC offers a combination of (1) inexpensive valuations (cigarettes business trading at 8-9X PE at CMP), (2) healthy dividend yield (5% at CMP), and (3) the promise of robust Long Term growth in FMCG.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 2 ^nd June 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in ITC Ltd and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

We note prospects of Cummins India Ltd gaining in terms of margin and market share in the domestic market once CPCB-IV norms get implemented.

chbatavia@gmail.com (Chirag Batavia) — Mon, 05 Jul 2021 04:34:00 GMT

CLOSED

Cummins India Ltd: BUY

Dated: 5 ^th July 2021

CMP: Rs.881

Fair Value: Rs.1030

Potential Upside: 16.9%
Market Cap: Rs.24,412 Cr
Time Frame: 12 months

We note prospects of CIL gaining in terms of margin and market share in the domestic market once CPCB-IV norms get implemented.

The impending transition in emission norms would boost pricing power of CIL as transition to CPCB-IV is much steeper than the transition to CPCB-II and peers to CIL do not have margin to cede this time.

Data center market envisaged to accelerate over CY21-23. We note that CIL has a dominant market share in the segment both in India and globally.

The recent disclosure of related party transactions suggests that royalty has declined by 70 bps of sales in FY21. This boosts prospects of margin recovery by 70 bps.

We increase near-term estimates by 5% led by initial benefit of CPCB-IV transition for domestic and datacenter sales. We assign higher 24x multiple (on Sept 2023E EPS) to factor in benefits of CPCB-IV transition on exports starting FY24.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 29 ^th June 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Cummins India Ltd and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Mahindra & Mahindra will launch models, focus on EV portfolio, focus on sport utility vehicle (SUV) core brand differentiation and will build path to profitability for global subsidiaries

chbatavia@gmail.com (Chirag Batavia) — Mon, 28 Jun 2021 05:13:00 GMT

Mahindra & Mahindra (M&M): BUY

Dated: 28 ^th June 2021

CMP: Rs.794

Fair Value: Rs.975

Potential Upside: 22.8%
Market Cap: Rs.98,685 Cr
Time Frame: 12 months

From FY22E onwards (Fly strategy), the company will launch models, focus on EV portfolio, focus on sport utility vehicle (SUV) core brand differentiation and will build path to profitability for global subsidiaries

The company expects to launch new Scorpio, W620 and XUV700 in CY21-22E. The company intends to launch nine new products by CY26E. In the light commercial vehicle (LCV) business, the company will launch 14 new products by CY26E to strengthen its leadership position.

The company highlighted tractor segment fundamentals continue to remain strong. The company has guided for low single-digit domestic tractor industry volume growth on a yoy basis in FY22E.

M&M management has taken multiple steps to improve its capital-allocation strategy by selling stakes in lossmaking subsidiaries and exiting certain JVs or deals which would have consumed capital.

Turnaround in international farm and auto subsidiaries will aid the company to meet its return on equity (RoE) target. We value M&M on sum-of-the-parts valuation.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 28 ^th May 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Mahindra & Mahindra and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

L&T has paid all of its free cash flows (FCF) generation to shareholders and has not invested on a net basis in subsidiaries over FY16-21

chbatavia@gmail.com (Chirag Batavia) — Mon, 21 Jun 2021 04:16:00 GMT

CLOSED

Larsen & Toubro (L&T): BUY

Dated: 21 ^st June 2021

CMP: Rs.1476

Fair Value: Rs.1850

Potential Upside: 25.3%
Market Cap: Rs.2,07,717 Cr
Time Frame: 12 months

L&T has paid all of its free cash flows (FCF) generation to shareholders and has not invested on a net basis in subsidiaries over FY16-21. The company has set the stage to deliver a high dividend payout ratio.

L&T reported a healthy and in-line operating result in Q4FY21. The company reported a 6/14% yoy growth in the core E&C business revenues/EBITDA (operating profit), respectively for Q4FY21.

We factor (1) 15% hit-rate in L&T’s Rs9.6 lakh cr order prospects pipeline for FY22 and (2) 70 bps margin accretion by FY23 over depressed FY21 base.

We note strong visibility for growth over FY22 and FY23 based on the current order backlog.We expect mid-to-high teens growth in revenues/EBITDA/PAT over FY20-23.

We retain 17x earnings multiple for the core business. We arrive at the sum of the parts (SoTP) based fair value of Rs1,850.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 15 ^th May 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Larsen & Toubro and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

Tata Steel 4QFY21 Margins were at a record high and management confirmed further sequential expansion in coming quarters based on spot spreads.

chbatavia@gmail.com (Chirag Batavia) — Mon, 14 Jun 2021 11:51:00 GMT

Tata Steel

4QFY21 Margins were at a record high and management confirmed further sequential expansion in coming quarters based on spot spreads. We estimate steel margins to peak in 1QFY22E and moderate to sustainable levels from 2HFY22E but see upside risk.

With contained capex, strong margins and tight control on working capital, Tata Steel has reduced net debt to Rs.82,500 cr (-21% yoy) as on Mar’21. We estimate net debt to reduce further and net debt/EBITDA to reduce to 1.1x/1.3x in FY22/23E.

Strong domestic/export prices and improved product mix should result in at least a Rs.6,000-7,000/ton sequential increase in realization in 1QFY22 as per management. For Europe, spreads are likely to be much higher than 4QFY21 averages led by sharp price hikes across regions.

Management shared that they can reach 40 mtpa steel capacity in India from current 18 mtpa through brownfield expansions: Jamshedpur -14 mtpa (from 10 mtpa), KPO -16 mtpa (from 3 mtpa) and Angul (Tata BSL) – 10 mtpa (from 5 mtpa).

We value India-6.5x, Europe-4x and South East Asia-4x on Mar’23E EBITDA & arrive at a fair value of Rs1,400. (EBITDA: Earnings Before Interest, Tax, Depreciation and Amortization).

Tata Steel: BUY

Dated: 14 ^th June 2021

CMP: Rs.1158

Fair Value: Rs.1400

Potential Upside: 20.9%
Market Cap: Rs.1,39,852 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 7 ^th May 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Tata Steel and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Escorts Ltd expects the construction equipment segment to grow by high single-digit on a yoy basis in FY22E and expects margin improvement to continue.

chbatavia@gmail.com (Chirag Batavia) — Mon, 07 Jun 2021 09:04:00 GMT

CLOSED

Escorts Ltd

We believe the tractor industry is likely to show strong growth over the next two years led by good monsoons over the past two years, stable crop prices and higher Rabi crop output than the previous year and higher mix of non-agricultural-based tractors.

We expect Escorts’ tractor volumes to grow at 6% compound annual growth rate (CAGR) over FY21-24E

The company expects the construction equipment segment to grow by high single-digit on a yoy basis in FY22E and expects margin improvement to continue. For the railway division, the company has guided for lower double-digit growth on a yoy basis and operating margins in the range of 16-18% in FY22E.

With revival in the economy and government spending, we expect construction equipment and railway segment revenues to grow by double-digit compound annual growth rate (CAGR) over FY22-23E.

As of March 2021, net cash stood at ~Rs2970 cr versus ~Rs2700 cr as of December 2020 and net cash levels of Rs310 cr as of March 2020. We value the stock at 17X March 2023E EPS.

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 14th May 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Escorts and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

SBI Life reported a 22.2% VNB margin in 4QFY21 and ended the year with 20.4% VNB margins (+1.65% yoy).

chbatavia@gmail.com (Chirag Batavia) — Mon, 31 May 2021 04:37:00 GMT

SBI Life Insurance Company Ltd

SBI Life's 4QFY21 results were testimony to our thesis that the Value of new business (VNB) margins build in some conservatism and are broadly comparable with peers after taking cognizance of different tax rate treatments and higher operating variances.

SBI Life reported a 22.2% VNB margin in 4QFY21 and ended the year with 20.4% VNB margins (+1.65% yoy). The company has reported steady increase in VNB margin for over the years (16.2% in 2018) and healthy operating Return on embedded value (RoEV) of 19.1% for FY21.

One of the reasons for difference between SBI Life and HDFC Life is lower share of non-par (savings, annuity and protection share) at 22% of Annual premium equivalent (APE) for SBI Life versus 44% for HDFC Life, though SBI Life benefits from lower expense ratios.

We are raising our Embedded Value (EV) estimates by 4.5-5% reflecting higher opening EV, 1-6% higher Embedded value operating profit (EVOP) on the back of higher volumes as well as margins. We expect the company to deliver a 21-22% medium-term VNB margin.

SBI Life currently trades at 2.1X FY23E EV. At our fair value, it trades at 2.9X EV or 19X EVOP June 2023E.

SBI Life Insurance Company Ltd: BUY

Dated: 31 ^st May 2021

CMP: Rs.977

Fair Value: Rs.1360

Potential Upside: 39%
Market Cap: Rs.98,011 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 3 ^rd May 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in SBI Life Insurance Company Ltd and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

This is a subtitle for your new post

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Federal Bank is likely to come out closer/better to the best-in-class players on impairment ratios.

chbatavia@gmail.com (Chirag Batavia) — Mon, 24 May 2021 04:44:00 GMT

CLOSED

Federal Bank

Federal Bank is likely to come out closer/better to the best-in-class players on impairment ratios. Excelled in the first year of Covid impact with lower slippages, restructuring and use of ECLGS.

It reported ~60% yoy earnings growth primarily on account of lower provisions (~55% yoy decline). Slippages mere at ~2% and restructured loans at 1.1%. In Q4FY21, Deposit growth held up much better with overall deposits increasing ~13% yoy.

Gold loan growth was sharp at 70% yoy with loan book crossing ~Rs15800 cr. Gold loan portfolio growth benefitted by increase in gold prices and relaxations in LTV. The bank aims to grow gold loan book by 30-40% yoy.

We maintain BUY rating with a Fair Value of Rs100. At our FV, we are valuing the bank at 1.1X book and 7X FY23 EPS for RoEs (return on equity) steadily moving closer to 12-14% levels. It remains our preferred mid-tier bank pick.

A key challenge has been forecasting a return profile closer to the best players.

Federal Bank (FB): BUY

Dated: 24 ^th May 2021

CMP: Rs.85

Fair Value: Rs.100

Potential Upside: 17.6%
Market Cap: Rs.15,697 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 17 ^th May 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Federal Bank and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Lupin’s 4QFY21 revenues were in line with our estimates and with strong cost controls, the company continued its impressive margin recovery in 4QFY21.

chbatavia@gmail.com (Chirag Batavia) — Mon, 17 May 2021 04:28:00 GMT

Lupin Ltd

Lupin’s 4QFY21 revenues were in line with our estimates and with strong cost controls, the company continued its impressive margin recovery in 4QFY21.

The company’s focus now shifts to progress across various complex assets in the US over FY22-23. With FDA issuing guidance on remote inspections of overseas facilities, potential resolution of Goa/Indore units by 2HFY22 are additional triggers for the US.

With steady ramp-up in ProAir and revival of domestic growth in FY22, Lupin is well-positioned to deliver strong margin expansion over FY22-23E.

We revise our FY22-23E estimates by 1-3% to bake in lower tax rate guidance. Despite the recent rally, we derive comfort from Lupin’s strong medium-term growth visibility led by inhalers/biosimilars and other complex assets.

We maintain our BUY rating with revised Fair Value to Rs. 1320 based on 24X FY23E EPS.

Lupin Ltd: BUY

Dated: 17 ^th May 2021

CMP: Rs.1179

Fair Value: Rs.1320

Potential Upside: 12%
Market Cap: Rs.53,379 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 13 ^th May 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Lupin Ltd and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

With completion of all expansion projects, Hindustan Zinc is well placed to witness volume growth tailwinds over FY22-23E.

chbatavia@gmail.com (Chirag Batavia) — Mon, 10 May 2021 09:33:00 GMT

CLOSED

Hindustan ZINC

With completion of all expansion projects, HZ is well placed to witness volume growth tailwinds over FY22-23E. HZ has guided for metal volumes at 1.02-1.05 mn tons and silver production at 720 tons for FY2022.

HZ’s 4QFY21 revenues increased to Rs. 6,947 cr (+58% yoy, +15% qoq) led by higher metal volumes and zinc-silver prices. Volumes increased by 14%/29%/41% yoy for zinc/lead/silver.

Zinc – adjusted CoP (Cost of Production) stood at US$945/ton (-5% yoy, flat qoq), declined yoy on higher volumes and better bi-product credits. EBITDA (Earnings Before Interest Tax Depreciation and Amortization) at Rs. 3,875 cr increased 97% yoy mainly led by 56%/29% yoy higher silver/zinc prices and lower zinc CoP.

We expect the zinc market fundamentals to remain strong in FY22E led by supply-side restrictions in China on safety/environment protection, a strong sequential demand recovery in world ex-China coupled with lagging supply.

As on March 31, 2021, the net cash and cash equivalents increased to ~Rs. 15100 cr (+38% qoq) on strong operational cash flows and release of working capital.

Hindustan Zinc: BUY

Dated: 10 ^th May 2021

CMP: Rs.310

Fair Value: Rs.370

Potential Upside: 19.4%
Market Cap: Rs.1,30,626 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 27 ^th April 2021, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Hindustan Zinc and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

India security and FM businesses should see ramp-up through FY22.

chbatavia@gmail.com (Chirag Batavia) — Mon, 03 May 2021 05:50:00 GMT

SIS (SECIS)

India security and FM businesses should see ramp-up through FY22. Further, lower demand for services currently may impact smaller players more, thus driving consolidation in the space.

In FY21, revenue increased by 8% yoy, operating profit was flat but net profit increased significantly by 185% yoy. SIS’ net debt declined to ~Rs320 cr as of Mar’21 from ~Rs590 cr as of Mar’20. International business outshined other verticals in FY21 with revenues (up 22.3% yoy).

Expect earnings to grow by 19.6% in FY23E. Expect business to remain resilient. With strong cash flow generation in FY21 in its kitty, SIS had launched a buyback program of ~Rs100 cr and the process is likely to be completed by May-end/early- June 2021.

We value SIS on sum-of-the-parts (SOTP) and arrive at a fair value of Rs.430.

Risk: Demand for SIS’ services might be slightly impacted in Q1FY22 due to the second wave of Covid in India.

SIS (SECIS): BUY

Dated: 3 ^rd May 2021

CMP: Rs.361

Fair Value: Rs.430

Potential Upside: 19.1%
Market Cap: Rs.5,370 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 28 ^th April 2021, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamenta l . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in SIS India and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Aster DM Healthcare has undertaken strong cost-rationalisation initiatives and has guided for partial sustainability of reduction in costs, which will support margins.

chbatavia@gmail.com (Chirag Batavia) — Mon, 26 Apr 2021 04:29:00 GMT

CLOSED

Aster DM Healthcare

Turnaround of new units in India and GCC recovery will help drive earnings over FY22-23E even as higher cases in the UAE impact near-term performance.

Aster has undertaken strong cost-rationalization initiatives and has guided for partial sustainability of reduction in costs, which will support margins.

Foray into diagnostics and pharmacy (in India), home-care (in UAE) and tele-health also creates new avenues for growth over medium to long term.

We cut our FY21E EBITDA by 9% to factor in weak 2H performance & tweak FY22-23E estimates by 2%. We expect ASTERDM to post EBITDA CAGR of 13% over FY20-23E.

Inexpensive valuations drive our BUY rating. Aster trades at 5.4X FY23E EBITDA, implying the GCC business trading in a deep value zone at 4X FY23E EBITDA. Our revise Fair Value works to Rs220.

Fresh promoter pledging (10% of promoter shareholding) could act as an overhang for the stock performance.

Aster DM Healthcare: BUY

Dated: 26 ^th April 2021

CMP: Rs.148

Fair Value: Rs.220

Potential Upside: 48.6%
Market Cap: Rs.7,383 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 10th February 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Aster DM Healthcare and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

ITC’s numbers for Q3FY21 were on expected lines with cigarettes business reporting 92% recovery in net sales and EBIT, marginally ahead of estimates.

chbatavia@gmail.com (Chirag Batavia) — Mon, 19 Apr 2021 09:26:00 GMT

ITC Ltd

ITC’s numbers for Q3FY21 were on expected lines with cigarettes business reporting 92% recovery in net sales and EBIT, marginally ahead of estimates.

In 9MFY21, ITC introduced health soaps, disinfectant sprays, body wash, wipes and masks under Savlon brand. It remains to be seen how ITC capitalizes on this and scales up.

For Q4FY21, we expect 9% yoy growth in cigarette volumes, 14% yoy growth in cigarette gross sales with 5% price-mix impact. We forecast 10% yoy growth in cigarette EBIT.

In the FMCG portfolio for Q4FY21, we expect sequential demand trends to hold, with some moderation in health & hygiene portfolio and recovery in discretionary segment. We model 15.2%/70% yoy growth in FMCG revenue/EBIT.

ITC offers a good combination of inexpensive valuations, healthy dividend yield and the promise of solid Long term growth in FMCG.

ITC Ltd: BUY

Dated: 19 ^th April 2021

CMP: Rs.208

Fair Value: Rs.265

Potential Upside: 27.4%
Market Cap: Rs.256,046 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of a KIE research report dated 12 ^th February 2021 & Strategy Preview Report dated 7 ^th April 2021, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental . Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in ITC Ltd and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Rallis reported healthy gross margin expansion of 144bps and a similar increase in operating (EBITDA) margins to 15.6%, which drove earnings growth in 9MFY21.

chbatavia@gmail.com (Chirag Batavia) — Mon, 12 Apr 2021 04:32:00 GMT

Rallis India Ltd

Rallis reported healthy gross margin expansion of 144bps and a similar increase in operating (EBITDA) margins to 15.6%, which drove earnings growth in 9MFY21.

The international business showed signs of recovery in Q3FY21 led by a sequential increase in Metribuzin pricing and higher volumes for AIs (Active Ingredients) leading to 35% qoq growth to Rs210 cr.

Rallis management indicated that the domestic agrichemical industry growth is anticipated to remain at 10-11% in FY21.

The company maintained its guidance of launching two new 9(3) registration products every year for the next few years.

We expect the company to deliver robust earnings growth over the next few years driven by near-term recovery in the international business and medium-term capacity-led growth across segments. We value the stock based on 18X December 22E EPS.

Rallis India Ltd: ADD

Dated: 12 ^th April 2021

CMP: Rs.269

Fair Value: Rs.310

Potential Upside: 15%
Market Cap: Rs.5,223 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of a KIE research report dated 19 ^th January 2021, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental .

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Rallis India Ltd and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

ICICI Prudential Life has been the leader in unit-linked business with a strong focus on high-ticket ULIPs in the past

chbatavia@gmail.com (Chirag Batavia) — Mon, 05 Apr 2021 04:36:00 GMT

ICICI Prudential Life (IPRU)

IPRU reported 25.7% VNB (Value of new business) margin in 3QFY21 driving flat VNB yoy even as APE (Annual premium equivalent) was down 18% yoy.

We expect a strong capital market to drive ULIPs next year, though VNB margins will likely hold on due to an increase in share of high-margin non-participating in the overall traditional savings mix and improving operating leverage as volumes bounce back.

IPRU has been the leader in unit-linked business with a strong focus on high-ticket ULIPs in the past; the company has acquired dominant retail term business over the past 2-3 years.

We expect the company to deliver 18% VNB CAGR (Compounded Annual Growth Rate) during FY21-24E (somewhat lower than 20-21% for other listed peers) and 14-15% medium-term operating RoEV (Return on embedded value).

A consistent shift to high-margin non-par policies, coupled with a healthy topline will drive superior VNB and boost RoEV, closing the gap with peers. We are valuing IPRU on Appraisal value based fair value & at 2.3X EV (Embedded Value).

ICICI Prudential Life (IPRU): BUY

Dated: 5 ^th April 2021

CMP: Rs.444

Fair Value: Rs.560

Potential Upside: 26.1%
Market Cap: Rs.63,900 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of a KIE research report dated 28th January 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental .

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in ICICI Prudential Life and other Indian stocks? Open your demat & trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Finolex Industries Ltd would be a major beneficiary from the government’s focus on irrigation, providing piped water to all by 2024 and improvement in rural consumption in the long term.

chbatavia@gmail.com (Chirag Batavia) — Tue, 30 Mar 2021 06:09:00 GMT

Finolex Industries Ltd

FIL would be a major beneficiary from the government’s focus on irrigation, providing piped water to all by 2024 and improvement in rural consumption in the long term.

The management has maintained positive demand outlook in the longer run in PVC pipes business and expects higher volume growth in non-agri category.

FIL believes that there is an opportunity to gain market share as weaker companies (particularly from unorganized space) may find difficult to sail though in the current challenging macro environment.

We believe that the higher spread and demand supply mismatch in PVC resin would positively impact resin margin in the near term. Margin outlook for Q4FY21 remains strong based on recent trends in PVC-EDC spread.

We value the stock on sum of the parts (SoTP) basis and arrive at fair value of Rs730, where we value PVC pipes business at 15xFY23E EV/EBITDA (operating profit) and PVC Resin business at 7xFY23E EV/EBITDA.

Finolex Industries Ltd: ADD

Dated: 30 ^th March 2021

CMP: Rs.618

Fair Value: Rs.730

Potential Upside: 18.1%
Market Cap: Rs.7675 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of a PCG research report dated 3 ^rd February 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental .

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Finolex Industries Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Cipla continued its strong performance (exceeding our estimates) in 3QFY21, led by strong domestic growth and continued cost controls.

chbatavia@gmail.com (Chirag Batavia) — Mon, 22 Mar 2021 04:33:00 GMT

Cipla

Cipla continued its strong performance (exceeding our estimates) in 3QFY21, led by strong domestic growth and continued cost controls.

Company’s respiratory franchise in the US is led by continued ramp-up in Proventil, which has now achieved 12% market share in total albuterol market.

Progress on other inhalation launches including Advair (potential launch in FY23), Qvar (FY24 launch), another partnered inhalation and Revlimid settlement provide strong visibility in the US over FY22-24.

On the domestic front, One India strategy is progressing well with strong traction across consumer brands and we expect domestic growth to be aided by recovery in the base business even as benefits from Covid portfolio abate.

With incremental respiratory launches and continued execution in domestic, we believe Cipla is well-positioned to deliver robust earnings growth over the medium term. We have BUY rating with fair value of Rs.950, based on FY23E earnings.

Cipla: BUY

Dated: 22 ^nd March 2021

CMP: Rs.760

Fair Value: Rs.950

Potential Upside: 25%
Market Cap: Rs. 61,331 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 31 ^st January 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental .

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Cipla and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

This is a subtitle for your new post

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

L&T has diversified into several countries in Africa and Asia since FY18, using Power T&D (and in some cases Hydrocarbon) segments to enter.

chbatavia@gmail.com (Chirag Batavia) — Mon, 15 Mar 2021 05:41:00 GMT

L&T Ltd

 Government’s impetus on infrastructure spending bodes well for L&T. This should lead to quick order finalization and eventual scale-up in execution.

 L&T has diversified into several countries in Africa and Asia since FY18, using Power T&D (and in some cases Hydrocarbon) segments to enter.

 The competitive intensity remains benign as peers are consolidating operations and have healthy starting order backlog. Volume boost coupled with benign competition may yield sustainable pricing gains.

 We envisage an uptick in ordering from FY23. We assume a 40% EPS growth over FY20-23 adjusted for effects of Covid-19 and sale of E&A (Electrical & Automation) business.

 We value core E&C (Engineering & Construction) business at earnings multiple of 17x (on March 23E). We arrive at the sum of the parts (SoTP) based fair value of Rs1,720.

L&T: BUY

Dated: 15th March 2021

CMP: Rs.1514

Fair Value: Rs.1720

Potential Upside: 13.6%

Market Cap: Rs. 2,12,585 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 1st February 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in L&T Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW, as an NR I , you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Trading and Demat Account.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Escorts Ltd expects strong growth in the construction equipment segment over the next 4-6 quarters.

chbatavia@gmail.com (Chirag Batavia) — Mon, 08 Mar 2021 04:49:00 GMT

Escorts Ltd

 We believe the tractor industry is likely to show strong growth over the next two years led by good monsoons over the past two years, stable crop prices, higher Rabi crop output and higher mix of non-agricultural-based tractors.

 With revival in the economy and government spending, we expect construction equipment and railway segment revenues to grow by double-digit CAGR (compound annual growth rate) over FY22-23E.

 The company expects strong growth in the construction equipment segment over the next 4-6 quarters. We estimate total tractor volumes to grow at 14.5% yoy in FY21E and 10.7% in FY22E for the company.

 Net cash stood at ~Rs2700 cr as of December 2020 versus ~Rs1670 cr as of September 2020 and net cash levels of ~Rs310 cr as of March 2020.

 We expect EPS (earnings per share) to grow at 22% CAGR over FY20-23E. Our Fair Value of Rs1,700/share is based on 17x March 2023E EPS.

Escorts Ltd: BUY

Dated: 8th March 2021

CMP: Rs.1319

Fair Value: Rs.1700

Potential Upside: 28.9%

Market Cap: Rs. 17,859 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 2nd February 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Escorts Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW, as an NR I , you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Trading and Demat Account.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Castrol India's current price offers healthy Free Cash Flow/Dividend Yield.

chbatavia@gmail.com (Chirag Batavia) — Mon, 01 Mar 2021 06:36:00 GMT

Castrol India Ltd (CSTRL)

 The management remained optimistic on recovery in volume growth given pickup in passenger and freight movement across the country and uptick in realizations following a blended 4% price hike in Jan’21 to pass on higher RM costs.

 In CY20, revenues declined by 23% yoy, EBITDA declined by 28% yoy and adjusted net profit declined by 28% yoy. Free cash flow increased from Rs.770 cr in CY19 to Rs.850 cr in CY20 due to efficient working capital and low capex.

 A rebound in volumes during CY21 will augur well for the stock not withstanding increase in RM costs. Expect earnings to grow by 49.8% in CY21E and 8.1% in CY22E.

 Current price offers healthy Free Cash Flow/Dividend Yield. Our Fair value of Rs.165 is based on discounted cash flow method (DCF) implying 17x PE multiple on Dec’22E EPS.

 Risk: Key base oil prices have increased sharply in recent months. Castrol earnings are leveraged to exchange rate and raw material prices.

Castrol India Ltd (CSTRL)

Dated: 1st March 2021

CMP: Rs.130

Fair Value: Rs.165

Potential Upside: 26.9%

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 4th February 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Castrol Indial and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW, as an NR I , you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Trading and Demat Accounts.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Aditya Birla Fashion & Retail witnessed faster recovery across both Madura and Pantaloons

chbatavia@gmail.com (Chirag Batavia) — Mon, 22 Feb 2021 06:43:00 GMT

Aditya Birla Fashion and Retail (ABFRL):

 Company witnessed faster recovery across both Madura and Pantaloons in Q3FY21. The company highlighted that 300+ stores were opened in 9MFY21. Pantaloons e-commerce sales grew 2.3x yoy on the back of stronger assortment and own site grew at 50% yoy.

 Higher revenues and higher cost savings led to healthy EBITDA margin of 18%. EBITDA was boosted by operating leverage, lower ad spends, corporate travel and employee expenses. ABFRL was able to save Rs1030 cr of fixed cost in 9MFY21 of which Rs157 cr of savings accrued in 3QFY21.

 ABFRL generated ~Rs590 cr cash in 3QFY21. Net debt currently stands at Rs58 cr as funds were received from Flipkart Group (~Rs1500 cr) and rights issue (Rs750 cr in 9MFY21).

 The company could close FY21 with debt of Rs250-300 cr as it would have to assume debt in order to fund the Sabyasachi acquisition (~Rs.400 cr). This will still be a remarkable improvement over March 2020 debt levels of Rs2500 cr.

 The deleveraging story remains intact. Higher earnings estimates and roll-forward to March 2023 drives higher Sum of Parts based Fair Value of Rs.200.

Aditya Birla Fashion and Retail (ABFRL): BUY

Dated: 22nd February 2021

CMP: Rs.166

Fair Value: Rs.200

Potential Upside: 20.5%

Market Cap: Rs. 14,819 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 8th February 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Aditya Birla Fashion and Retail and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW, as an NR I , you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Trading and Demat Accounts.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

This is a subtitle for your new post

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Narayana Hrudayalaya revenues recovered to 96% of pre Covid levels, largely in line with our expectations.

chbatavia@gmail.com (Chirag Batavia) — Mon, 15 Feb 2021 04:52:00 GMT

Narayana Hrudayalaya (NARH)

 In Q3FY21, NARH revenues recovered to 96% of pre Covid levels, largely in line with our expectations.

 Cayman unit sustained its strong performance recording 30% yoy growth benefiting from increased footfalls of local patients, increased focus on the outpatient segment and recalibration of prices.

 NARH’s execution at Gurugram and Dharamshila, particularly in oncology has also been impressive with units breaking even ahead of guidance.

 With the international segment gradually recovering, decline in Covid cases driving improvement in patient mix and improving maturity profile, India business remains on a strong footing.

 With performance improving across segments, we expect NARH to deliver 20% RoCE by FY23E with robust Free Cash Flow.

 We revise our FY22-23E EBITDA by 9-11% to bake in faster breakeven at new units and strong Cayman performance and valuing the stock at 18X FY23E EBITDA.

Narayana Hrudayalaya (NARH): BUY

Dated: 15th February 2021

CMP: Rs.460

Fair Value: Rs.540

Potential Upside: 17.4%

Market Cap: Rs. 9400 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 9th February 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Narayana Hrudayalaya and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW, as an NR I , you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Trading and Demat Accounts.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

This is a subtitle for your new post

The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Hindustan Unilever Ltd has stepped up focus on volume growth and it would continue investments in business notwithstanding margin pressure

chbatavia@gmail.com (Chirag Batavia) — Mon, 08 Feb 2021 07:40:00 GMT

Hindustan Unilever Ltd

 In Q3FY21, HUVR reported 4% growth in underlying volume, 7% growth in revenues and broadly flat EBITDA (all organic).

 Post recent quarters of cautious commentary, HUL expressed increased confidence in pick-up in overall demand environment.

 HUL maintained the innovation intensity witnessed in recent quarters with multiple new launches in line with increased consumer preference for hygiene, nutrition and at-home consumption.

 We note that in 9MFY21, HUVR has absorbed some RM inflation in tea and soaps and stepped up investments in advertising & promotion (A&P) for market development/share gains in hygiene, personal care and nutrition categories.

 The management indicated that (1) its primary focus in the short term (1-2 quarters) is volume recovery/growth and investments (especially A&P) in business would remain high, and (2) it is confident of delivering modest margin expansion every year in the medium term.

 HUVR has stepped up focus on volume growth and it would continue investments in business notwithstanding margin pressure; we expect this strategy to pay off well.

Hindustan Unilever Ltd: ADD

Dated: 8th February 2021

CMP: Rs.2270

Fair Value: Rs.2625

Potential Upside: 15.6%

Market Cap: Rs. 5,32,899 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 27th January 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Hindustan Unilever Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

DID YOU KNOW, as an NR I , you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Trading and Demat Accounts.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

HCL Technologies is a solid play on cloud shift, improved digital play and growth runway in underpenetrated ERD opportunity.

chbatavia@gmail.com (Chirag Batavia) — Mon, 01 Feb 2021 04:36:00 GMT

HCL Technologies

 HCLT in our view will have a good FY22E led by digital foundation activity, potential large deal wins and recovery in Engineering R&D (ERD).

 The company has a good track record in winning large deals. It has done well in digital foundation deals and strong growth in digital services.

 Management has indicated that the product business is tracking ahead of expectations and the deal pipeline is very strong.

 60% of the pipeline is filled with large opportunities, which are in an advanced stage. It is confident of winning US$20-30 cr size deals, several of which are in the pipeline.

 HCLT is a solid play on cloud shift, improved digital play and growth runway in underpenetrated ERD opportunity.

 We expect earnings to grow by 6.5% in FY22E and by 9.6% in FY23E. Our Sum-of-the-parts (SoTP) - based Fair Value is Rs1,120.

HCL Technologies: ADD

Dated: 1st February 2021

CMP: Rs.914

Fair Value: Rs.1120

Potential Upside: 22.5%

Market Cap: Rs. 2,48,165 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 15th January 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in HCL Technologies and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

As an NR I , you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Trading and Demat Accounts.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Federal Banks operating profits grew ~30% yoy led by 23% yoy growth in revenues and 17% yoy cost growth.

chbatavia@gmail.com (Chirag Batavia) — Mon, 25 Jan 2021 11:00:00 GMT

Federal Bank

 Federal Bank reported ~8% yoy earnings decline despite a solid 30% yoy operating profit growth primarily on account of higher provisions

with most of the provisions driven to improve coverage ratio which is ~55% on overall stress loans in 3QFY21.

 Operating profits grew ~30% yoy led by 23% yoy growth in revenues and 17% yoy cost growth. Net Interest Income grew 24% yoy while Net Interest Margin improved marginally qoq at ~3.2%.

 Slippages at ~2% of loans and restructured loans at 1-1.5% are trending well and show that the bank should be able to come out of Covid with a much lower impact. Gross and net NPLs declined qoq to 2.7% and 0.6% respectively.

 We are forecasting flat earnings for FY21 and 14% & 45.3% growth in FY22E & FY23E on the back of marginal growth in loan book of ~5% in FY21-22 and ~11% in FY23. We expect Net interest margins of 3.2% throughout FY23E.

Federal Banks trades at quite undemanding valuation of ~0.8X FY23E Book value & ~5.9X FY23E Earnings per share & and does not reflect the strength of the franchise. We are valuing the bank at 1x book and 8x FY23E EPS for Return on equities inching higher to 11% levels.

Federal Bank: BUY

Dated: 25th January 2021

CMP: Rs.73

Fair Value: Rs.90

Potential Upside: 23.3%

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 20th January 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Federal Bank and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

NTPC plans to commercialize 4.4 GW of coal-based capacities in FY21 even as only 660 MW has been commercialized in 1HFY21.

chbatavia@gmail.com (Chirag Batavia) — Mon, 18 Jan 2021 04:37:00 GMT

NTPC Ltd

 NTPC plans to commercialize 4.4 GW of coal-based capacities in FY21 even as only 660 MW has been commercialized in 1HFY21. It plans to commercialize another 5.7 GW in FY22E and 5 GW in FY23E.

 We estimate regulated equity to grow at 11.6% CAGR between FY20 and FY23E to Rs.86,000 cr as NTPC adds 12 GW of incremental capacity over the next three years.

 Core ROE stood at 18% in 2QFY21 reflecting the underlying strength of the cost-plus business as regulated equity for the company increased 19% yoy to Rs.63,500 cr.

 NTPC has incorporated a new subsidiary NTPC renewable energy to increase the push towards renewables and have 25% share of renewables in the overall generation capacity. It has already commissioned 1.07 GW of renewable projects and has 2.4 GW of solar projects under implementation.

 Earnings growth has strong visibility over the next three years as 12 GW of under-construction coal-based capacities will likely be commissioned. Our Fair Value stands at Rs125/share noting inexpensive valuations of 0.75x Price/Book Value and 6.7x P/E on Mar’22 earnings.

NTPC: BUY

Dated: 18th January 2021

CMP: Rs.100

Fair Value: Rs.125

Potential Upside: 25%

Market Cap: Rs. 48,702 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 3rd November 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in NTPC Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Britannia Industries Ltd now has aggressively reinvested some margin surplus on adjacencies and new categories to capitalize on the opportunity.

chbatavia@gmail.com (Chirag Batavia) — Mon, 11 Jan 2021 04:28:00 GMT

Britannia Industries Ltd

 The lockdown phase triggered resurgence of the biscuit category, which otherwise was showing fatigue pre-Covid, and triggered penetration increase in the packaged foods space. We continue to build moderation in biscuits demand (post the spike in in-home consumption) but still much better than pre-Covid level.

 BRIT now has aggressively reinvested some margin surplus on adjacencies and new categories to capitalize on the opportunity.

 With the opening-up of the economy, other food categories have started to see demand recovery.

 BRIT has ramped-up its direct reach to more than pre-Covid levels (there was some fall in March-quarter due to disruption). They have also strengthened their rural distribution. They have also ramped-up their SKUs and replenishment levels back to pre-Covid levels.

 BRIT is looking to ramp-up media spends and will be focusing on select brands initially.

 In Q3FY21, we expect consolidated EBIDTA margin to expand 83 bps yoy aided by 56 bps expansion in Gross Margin (GM) and operating leverage gain.

Britannia Industries Ltd: ADD

Dated: 11th January 2021

CMP: Rs.3575

Fair Value: Rs.4150

Potential Upside: 16%

Market Cap: Rs. 86,110 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 21st October, 2020 & 6th January 2021, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Britannia Industries Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

PNC Infratech Ltd has strong order book to Rs15,800 cr at the end of Q2FY21

chbatavia@gmail.com (Chirag Batavia) — Mon, 04 Jan 2021 04:14:00 GMT

CLOSED

PNC Infratech Ltd

 PNC has strong order book to Rs15,800 cr at the end of Q2FY21. The current order book is ~3.2x of FY20 revenue and gives strong revenue growth visibility for the next two to three years.

 The management expects H2FY21 to be strong with normalcy in execution. Based on progress of work across its sites, improved labour availability, strong order inflows, etc, the management has upgraded revenue and order inflows guidance.

 The management targets to add ~Rs9,000-10,000 cr of order inflows in FY21 of which it has already secured ~Rs4,200 cr of work (till Q2FY21 result) while balance is expected in H2FY21.

 PNC does not see any challenge in meeting ~Rs970 cr equity commitment in HAM project based on its expectation of strong internal accruals in the next three years, robust balance sheet with net cash at standalone level and asset monetization plans.

 PNC’s robust order backlog, strong execution track record, net cash balance sheet in EPC business and the long term growth opportunity in the sector gives comfort for maintaining growth in the financial on a long term basis.

Note: The above is a brief note on the company, based on the inputs of PCG research report dated 4th November, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental. Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in PNC Infratech and other Indian stocks? Open your NRI Demat & Trading Account with Lakshit Financial

www.lakshitfinancial.com

NRI Product Page

Benefits of NRI Account

Why Invest India

Why Invest Through Us

Eligibility

Brokerage Charges

Procedures & Documentation

NRI - FAQ's

DID YOU KNOW? As an NRI/OCI , you can invest in IPOs , Mutual Funds and purchase Shares , ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active NRI Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click her e to learn more about NRI 3-IN-1 Account

OPEN YOUR NRI ACCOUNT NOW!

Fill in your details and we will get in touch with you .

Products and services available only for

Non Resident Indian (NRI) / Overseas Citizen of India (OCI)

Note: Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC.

*The above process does not apply to US/Canada clients.

CESC reported consolidated profits of Rs. 379 cr (+1.6% yoy) as demand remained weak in 2QFY21 due to Covid-19.

chbatavia@gmail.com (Chirag Batavia) — Mon, 28 Dec 2020 04:31:00 GMT

CESC Ltd

 CESC reported consolidated profits of Rs. 379 cr (+1.6% yoy) as demand remained weak in 2QFY21 due to Covid-19. Improvement in Chadrapur and Noida distribution business compensated for the decline in standalone earnings.

 Haldia reported a PAT of Rs. 110 cr (+21% yoy) as the plant operated at a PLF of 91.3% in 2QFY21. Dhariwal reported profit of Rs. 23 cr compared to losses of Rs. 25 cr in 2QFY20 with reported PAT in 1HFY21 of Rs. 47 cr from loss of Rs. 49 cr in 1HFY20.

 Driven by operational improvements, Cresent Power along with Noida distribution reported PAT of Rs. 7 cr (Rs. 12 cr in 1QFY20) and Rs. 30 cr, respectively. Distribution circles in Rajasthan reported profit of Rs. 1 cr (loss of Rs. 33 cr in 1QFY21 and Rs. 3 cr in 2QFY20).

 Dhariwal has tied up 270 MW of Unit -2 under long term PPA while Unit-1 has signed a PPA (185 MW) with MERC starting November 2019 currently up to January 2021.

 Valuations offer increased comfort at 5X P/E on FY22E and 0.65X P/B on FY22E. and We maintain our BUY rating on CESC with FV of Rs. 800/share, with the results for 2QFY21 further strengthening our investment thesis—(1) stability of regulated business, (2) moderating losses from new distribution circles and (3) improving utilization for Dhariwal.

CESC: BUY

Dated: 28th December 2020

CMP: Rs.605

Fair Value: Rs.800

Potential Upside: 32.2%

Market Cap: Rs. 8,086 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 9th November, 2020, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in CESC Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Shriram City Union Finance overall liquidity buffer increased to Rs. 2600 cr in 2QFY21 from Rs. 1500 cr in 1QFY21.

chbatavia@gmail.com (Chirag Batavia) — Mon, 21 Dec 2020 04:23:00 GMT

Shriram City Union Finance (SCUF)

 SCUF’s financial flexibility has recently increased significantly. Its overall liquidity buffer increased to Rs. 2600 cr in 2QFY21 from Rs. 1500 cr in 1QFY21. SCUF also raised Rs. 3000 cr from banks and FDs & further Rs. 500 cr in the first fortnight of October

 We believe that improving collection will provide comfort to rating agencies and debt market participants. The actual trends in 3QFY21, after the complete impact of the moratorium exit is known, are crucial

 We expect disbursements (excluding gold) to decline 4% yoy in 2HFY21E & 42% yoy rise in FY22E. We expect marginal 2% yoy decline in AUM (Asset under management) in FY21E & 6% yoy growth in FY22E with further improvement to 14% yoy growth in FY23E

 We are raising our core PBT (Profit before tax) estimates by 5-6% to reflect higher loan growth. A likely fall in funding costs will largely be offset by a cut in asset yields. Visibility of normalization in collections, strong long-term franchise and inexpensive valuations drive our rating

 SCUF currently trades at an inexpensive valuation of ~0.8x FY22 expected book value & we value it at 1.05x book on Sep’22E

Shriram City Union Finance (SCUF): BUY

Dated: 21st December 2020

CMP: Rs.1051

Fair Value: Rs.1400

Potential Upside: 33.2%

Market Cap: Rs. 6,963 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 3rd November, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Shriram City Union Finance and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Coal India Ltd (CIL) reported improvement in performance in 2QFY21 aided by 9.4% YoY increase in sales volume

chbatavia@gmail.com (Chirag Batavia) — Mon, 14 Dec 2020 04:37:00 GMT

Coal India Ltd

 Coal India (CIL) reported improvement in performance in 2QFY21 aided by 9.4% YoY increase in sales volume, reversal of overburden provision of Rs570 cr and 44% YoY increase in e-auction volumes despite weak auction prices.

 Operationally, production in 2QFY21 stood at 115 mn tons (+10.6% yoy) and sales at 134 mn tons (+9.4% yoy). Coal production target for FY21 is at 660 mn tons.

 Coal India declared interim dividend of Rs7.5/share in November 2020. Management is hopeful of exceeding FY2020 dividends of Rs74 bn (Rs13/share), while in the process for formalizing a transparent payout policy. Dividend yield is expected to be around 16.4% as on report date.

 We expect EBITDA/tonne to decline in FY21 to Rs166/tonne and increase gradually in FY22E and FY23E to Rs175/tonne and Rs182/tonne, respectively. We expect CIL to report Freecash flow (FCF) of Rs31,238 cr during FY21-23E.

 CIL remains attractively valued on adjusted earnings of FY22E. We have a Fair Value of Rs.180 based on Mar’22 earnings. We value the core business at 8x FY22E.

Coal India Ltd: BUY

Dated: 14th December 2020

CMP: Rs.138

Fair Value: Rs.180

Potential Upside: 30.4%

Market Cap: Rs. 85,231 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 12th November, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Coal India Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Karur Vysya Bank reported a bit of mixed results in 2QFY21 with 80% yoy earnings growth

chbatavia@gmail.com (Chirag Batavia) — Mon, 07 Dec 2020 09:51:00 GMT

Karur Vysya Bank

 KVB reported a bit of mixed results in 2QFY21 with 80% yoy earnings growth (off a weak base) but operating profit growth was weak at 4% yoy as provisions declined 22% yoy. Net interest income was flat yoy but grew impressively by 7% qoq as net interest margins improved 10 bps qoq to 3.5%

 In 2QFY21, headline asset quality ratios showed improvement with gross NPLs (Non-performing loans) declining 40 bps qoq at 7.9% while net NPL declined 45 bps qoq to 3% of loans (a four-year low)

 Operating performance is weak but the bank has negotiated the Covid environment with a relatively slow growth, which augurs well. Tier-1 ratio at 16% is comfortable to handle the stress but a rerating would probably take more than a few quarters

 We expect earnings growth of 39% in FY22E & 42.7% in FY23E. Net interest income growth of 9.6% in FY22E & 10.6% in FY23E with Net interest margins of 3.5% in FY21E-FY23E.

 KVB currently trades at an inexpensive valuation & significant discount to peers of ~0.48X FY22 expected book value. We are valuing the bank at 0.9X book and ~10X September 2022E EPS for RoEs of ~10% levels in the medium term

Karur Vysya Bank (KVB): BUY

Dated: 7th December 2020

CMP: Rs.38

Fair Value: Rs.65

Potential Upside: 71%

Market Cap: 3,017 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 2nd November, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Karur Vysya Bank Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Infosys has positioned itself as the primary orchestrator of the cloud journey for clients.

chbatavia@gmail.com (Chirag Batavia) — Tue, 01 Dec 2020 05:07:00 GMT

Infosys Ltd

 In Q2FY21net profit of Rs4840 cr was 10.5% higher than our estimate and grew 20.6% yoy. Operating Cash Flow generation was strong at 121% of net profit. We now expect earnings to grow by 12.2% in FY21E, 12.0% in FY22E and 13.2% in FY23E.

 Covid has accelerated digital transformation of clients enabled by cloud adoption and will drive demand in the next 3-5 years. Infosys has positioned itself as the primary orchestrator of the cloud journey for clients.

 The management is confident of stable margins with opportunity to expand in the medium term. We forecast 23.2% and 23% EBIT margin for FY22 and FY23, respectively.

 Infosys’ new deal wins hit a new high of US$ 270 cr. Net new deals at US$ 270 cr was 2.2x of the previous high achieved in Sep-18. The value of new deals won in the quarter is equal to net new deals of the previous five quarters.

 Post Q2FY21 results we have raised FY21-23 EPS estimates by 8-9%. We expect Infosys to lead the industry on growth. We value the stock at 25x Dec’22E EPS to arrive at Fair Value of Rs.1400.

Infosys (INFY): BUY

Dated: 1st December 2020

CMP: Rs.1100

Fair Value: Rs.1400

Potential Upside: 27.3%

Market Cap: 4,73,805 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 15th October, 2020 & 12th November 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Infosys Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

LIC Housing Finance reported strong earnings (Profit before tax/PBT up 18% yoy) on the back of lower provisions.

chbatavia@gmail.com (Chirag Batavia) — Tue, 24 Nov 2020 05:52:00 GMT

LIC Housing Finance

• 2QFY21: LICHF reported strong earnings (Profit before tax/PBT up 18% yoy) on the back of lower provisions. Profit after tax (PAT) was up 2% yoy, due to a lower tax rate in the base

• In2QFY21, loan book was up 5% (on the back of 5% growth in home loans), LICHF reported 22% growth in home loan disbursements in September followed by

38% growth in October

• The company had reported about 25% moratorium book in 1QFY21; LICHF highlighted that its collection efficiency in the non-moratorium book was 96% (up

from 90% in 1QFY21)

• LICHF’s tier-1ratio is low at 12.3%with leverage of 12X in March2020 which is close to regulatory cap, this is higher than most peers and may hence need to raise capital to support higher growth that will lead to risk of dilutionbelowbook

• LICHF trades at an inexpensive valuation of 0.8x FY22 expected book value.We value it at 0.8x September 2022E book value with fair value of Rs.400

LIC Housing Finance: BUY

Dated: 23rd November 2020

CMP: Rs.328

Fair Value: Rs.400

Potential Upside: 22%

Time Frame: 12 months

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in LIC Housing Finance and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

SBI Life reported 0.5% yoy/0.2% qoq expansion in value of new business (VNB) margin to 18.9%

chbatavia@gmail.com (Chirag Batavia) — Wed, 18 Nov 2020 05:30:00 GMT

SBI Life Insurance Company

 In 2QFY21, SBI Life reported 0.5% yoy/0.2% qoq expansion in value of new business (VNB) margin to 18.9% on the back of sharp growth in the protection business at 70% yoy; individual protection was up 58% yoy.

 Embedded value (EV) was up 21% yoy (Page 1, Para 2). ULIPs were down 13% yoy on expected lines, the company reported sequential growth in ULIP (up 38%) as investment appetite increased a bit.

 We expect SBI Life’s VNB margins to expand 0.3% yoy to 19% in FY21E and further increase to 21% by FY23E led by (1) increasing share of protection mix, (2) pick-up in growth of high-margin non-par savings post slowing down in 2Q & (3) margin expansion in protection and non-par businesses.

 We expect improving business momentum in the 2nd half. Strong persistency trends will cushion operating variance. Revival in APE (Average Premium Equivalent) growth from 2HFY21E (~15-16% over FY22-23E).

 SBI Life trades at ~2.25x & ~1.92x Price/EV in FY22E & FY23E, respectively. We value the business at 2.8x EV on September 2022E.

SBI Life Insurance Company: BUY

Dated: 17th November 2020

CMP: Rs.832

Fair Value: Rs.1100

Potential Upside: 32.2%

Market Cap: 83,194 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 27th October, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in SBI Life Insurance Company and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Kalpataru Power Transmission Ltd reported better than-expected performance in 2QFY21 on faster ramp-up of operations, cost-control measures and higher other income.

chbatavia@gmail.com (Chirag Batavia) — Mon, 09 Nov 2020 06:52:00 GMT

Kalpataru Power Transmission Ltd

 KPTL reported better than-expected performance in 2QFY21 on faster ramp-up of operations, cost-control measures and higher other income. KPTL management’s clarification on the group real estate business and target for reduction in pledges was comforting.

 Real estate business sales have improved in the past three months, which will help in debt reduction. Borrowing against the pledged shares has come down by Rs110 cr in last one year to Rs720 cr and they plan to reduce it further by Rs150 cr by Mar’21 and Rs150 cr by Dec’21.

 Order inflows are gradually recovering. Company has received orders of ~Rs3200 cr in FY21 to date with L1 position in orders of ~Rs2400 cr. Consolidated order backlog at the end 2QFY21 was Rs.26,500 cr. Management has maintained revenue growth guidance of 5-10% for FY21.

 KPTL board had approved buy-back of shares at a maximum price of Rs275 per share for an aggregate amount not exceeding Rs200 cr, representing nearly 4.7% of paid-up capital. So far, the company has bought back up to an amount of Rs120 cr from the open market and expects to complete this by Nov’20.

 Cash flows from sale of Jhajhar unit to India Grid Trust have been received and all approvals for sale of Alipurdar Transmission project to Adani Transmission Ltd have been received and cash proceeds are expected to come by Nov’20. Expect company to be debt free in FY22E.

 We arrive at an Sum of The Parts (SoTP) based Fair Value of Rs.475. We value the core business at 10x on 1 Year Fw EPS, JMC (subsidiary) at Rs.42/share and investments (ex-JMC) at Rs.40/share.

Kalpataru Power Transmission Ltd: BUY

Dated: 9th November 2020

CMP: Rs.255

Fair Value: Rs.475

Potential Upside: 86.3%

Market Cap: 3825 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 5th November, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Kalpataru Power TransmissionLtd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Diwali Special - November 2020

chbatavia@gmail.com (Chirag Batavia) — Thu, 05 Nov 2020 11:04:00 GMT

Diwali Special - November 2020

NIFTY VIEW

Benchmark Nifty is rebounded sharply after hitting the levels of 7510 in the month of March 2020. The index is in the third leg of major corrective pattern. It is correcting after hitting the crucial and psychological mark of 12000. Until the market is above the level of 10800 (previous significant bottom), Nifty would keep rallying. Below 10800 levels Nifty would lost its momentum and may even fall to 10300 levels. On the decisive crossing of 12400 levels would lift the Nifty to 13300 levels.

INFOSYS TECHNOLOGIES

BUY 50% AT 1097 AND BUY - BALANCE AT 960. TARGET 1400. STOP LOSS 850.00 (Time Horizon – 3 months)

CIPLA

BUY 50% AT 778 AND BUY BALANCE AT 700. TARGET 840. STOP LOSS AT 650. (Time Horizon – 3 months)

BRITANNIA INDUSTRIES

BUY 50% AT 3483, BUY BALANCE AT 3200. TARGET 4050. STOP LOSS AT 3000. (Time Horizon – 3 months)

ICICI BANK

BUY 50% AT 431, BUY BALANCE AT 375. TARGET 500. STOP LOSS AT 350. (Time Horizon – 3 months)

DALMIA BHARAT

BUY 50% AT 838, BUY BALANCE AT 770. TARGET 1075. STOP LOSS AT 700. (Time Horizon – 3 months)

Download full report: Diwali Special - November 2020

Looking to invest in Diwali Special Technical Picks - November 2020 and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Ambuja Cements expansion plans and cost-saving projects provide a strong growth visibility.

chbatavia@gmail.com (Chirag Batavia) — Mon, 02 Nov 2020 08:37:00 GMT

Ambuja Cement Ltd

 Consecutive quarters of impressive earnings should address suspicion on its strong margins, and reflect its renewed focus on costs and Master Supply Agreement (MSA). Expansion plans and cost-saving projects provide a strong growth visibility.

 Company’s 3QCY20 standalone earnings were significantly above our and consensus estimates on higher volumes and lower costs. We believe the renewed focus on the MSA with ACC, after various management changes in the last one year, is reaping benefits.

 All-India cement prices remain stable qoq in 3QFY21 on strong demand pan-India.

 The Board declared an interim dividend of Rs17 per share on equity shares of Rs2 each, of the company. The record date fixed for the purpose is November 5, 2020.

 We estimate EPS to grow at a compounded annual growth rate (CAGR) of 19% over CY20-22E led by capacity expansion which will drive volume CAGR of 14% in the same period.

 Strong growth visibility, a robust balance sheet and attractive valuations. Stock is trading at a steep discount to its 10-year mean of 13x EV/EBITDA and peers. Company has a net cash equivalent to ~17% of market cap and 4-7% free cash flow (FCF) yield in CY20-22E. Our Fair Value of Rs300/share is based on 8.5x EV/EBITDA December 2022E financials.

Ambuja Cements Ltd: BUY

Dated: 2nd November 2020

CMP: Rs.260

Fair Value: Rs.300

Potential Upside: 15.4%

Market Cap: 51,617 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 22nd October, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Ambuja Cement Ltd Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Hindustan Zinc's board has approved an interim dividend of Rs21.3/share.

chbatavia@gmail.com (Chirag Batavia) — Mon, 26 Oct 2020 06:39:00 GMT

Hindustan Zinc Ltd

 Hindustan Zinc’s (HZ) 2QFY21 revenues increased by 25% to Rs.5,660 cr led by higher metal volumes & silver prices. Volumes increased by 8%/30%/51% yoy for zinc/lead/silver.

 Stronger than expected demand recovery in China, mine supply disruptions, buoyant sentiments and higher liquidity supported 30% increase in zinc prices from March lows.

 HZ 2QFY21 operating profit (i.e. EBITDA) of Rs.2,952 cr increased 43% yoy mainly led by 43% yoy higher silver prices and lower zinc cost of production. Zinc cost of production (CoP) fell sequentially to US$ 919/ton in 2QFY21 (-12% yoy & -10% qoq).

 HZ mined metal capacity would increase from 1 mtpa to 1.2 mtpa in FY21E. We expect volume growth of 8% in FY21 and 14% in FY22.

 The Board has approved an interim dividend of Rs21.3/share. We expect dividend yield of 9.6% and 9.1% in FY21 and FY22, respectively.

 HZ’s strong growth visibility, high payout, Free cash flow yield and inexpensive valuation suggest attractive risk-reward. Our Fair Value works to Rs.295 at an unchanged 8x EV/EBITDA on Mar’22E. EV stands for Enterprise Value & EBITDA stands for Earnings Before Interest, Tax, Depreciation & Amortization.

Hindustan Zinc (HZ): BUY

Dated: 26th October 2020

CMP: Rs.240

Fair Value: Rs.295

Potential Upside: 22.9%

Market Cap: 1,01,408 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 20th October, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Hindustan Zinc Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

ITC's FMCG core portfolio grew 34% in Q1FY21

Mon, 19 Oct 2020 07:09:00 GMT

ITC Ltd

 ARFY20 of ITC highlights that EBITDA growth print (+4% YoY) was impacted by higher taxation and Covid outbreak. FCF (Free cash flow) grew 30% to Rs117 bn led by reduction in Working- capital and tax rate cut. FMCG portfolio augmentation with steady margin expansion continued.

 Cigarette volumes which were down marginally at 0.8% YoY in FY20 due to taxation in the month of February; Covid-led lockdown in end March, dipped a bit in July and August 2020 (after normative levels in June) due to local lockdowns but have picked up again in September.

 FMCG core portfolio which grew 34% in Q1FY21,post key new launches in FY20 is tracking well except for slight moderation in biscuits, while discretionary/out of home (OOH) portfolio is witnessing some recovery.

 Stationery sales continue to be depressed as schools are shut and hotels topline weakness continues but losses are likely to moderate as compared to 1QFY21 levels.

 We believe concerns around taxation in view of stretched government finances and rising focus on Environmental, Social, and Corporate Governance (ESG)-compliant investment are more-than-adequately priced in.

 The stock offers a good combination of (1) inexpensive valuations; (2) healthy dividend yield (6%) and (3) promise of solid Long term growth in FMCG. We do not see any structural negative emerge for ITC from the ongoing pandemic.

 We are positive on ITC and recommend BUY with a Sum of the Parts (SoTP) based Fair Value of Rs260.

ITC Ltd: BUY

Dated: 19th October 2020

CMP: Rs.166

Fair Value: Rs.260

Potential Upside: 56.6%

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 24th September, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in ITC Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Petronet LNG is evaluating long-term LNG sourcing contracts, which may be structured to be always competitive with spot LNG prices.

chbatavia@gmail.com (Chirag Batavia) — Mon, 12 Oct 2020 04:30:00 GMT

Petronet LNG Ltd

 PLNG’s utilization at the Dahej and Kochi terminal has increased. However, there has been no material progress on the Tellurian MoU or Sri Lanka/Bangladesh projects for now. PLNG is evaluating long-term LNG sourcing contracts, which may be structured to be always competitive with spot LNG prices.

 Capex is expected to be around Rs350 cr for FY21, including an outlay of less than Rs100 cr for the proposed projects to add two storage tanks and third jetty at Dahej terminal.

 We expect gradual ramp-up in volumes driven by increase in utilization of Kochi post commissioning of pipelines.

 We retain our constructive stance seeking comfort from prudence on capital allocation, limited risks to volumes/tariffs/earnings and attractive valuations.

 We expect earnings to grow by 3.6% in FY21 and by 18.6% in FY22.

 We reiterate BUY with FV of Rs300, expecting the company to deliver a healthy 10-11% CAGR in earnings over the next 3-5 years driven by higher volumes and tariffs.

Petronet LNG Ltd: BUY

Dated: 12th October 2020

CMP: Rs.218

Fair Value: Rs.300

Potential Upside: 37.6%

Market Cap: Rs.32910 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 18th August, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Petronet LNG Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Axis Bank reported a 19% yoy decline in 1QFY21 earnings due to higher provision for bad loans.

chbatavia@gmail.com (Chirag Batavia) — Mon, 05 Oct 2020 04:48:00 GMT

Axis Bank Ltd

 The Bank reported a 19% yoy decline in 1QFY21 earnings due to higher provision for bad loans. Impact on revenue growth was higher given the lower activity level. Net NPLs (Non-performing loans) are at a four-year low 1.2% qoq in 1QFY21.

 Loan growth was 13% yoy while NII (Net interest Income) grew at 20% & NIMs (Net Interest Margins) declined ~0.15% qoq largely on higher liquidity in 1QFY21.

 We see a gradual shift in discussion by investors towards collections as a better benchmark to understand impairments.

 We expect loan growth of 13.6% along with NII growth of 14.2% in FY22E. NIM to remain stable at ~3% by FY22E as we see marginally better pricing. We expect gross NPLs & Net NPLs to decline 4.2% & 1.2%, respectively in FY22E.

 Axis Bank is well positioned given its lower exposure in the SME and self-employed segment. It is quite likely that Axis Bank would emerge stronger relative to its peers.

 We are valuing the bank at 1.9x book and ~15x March 2022E EPS for RoEs (Return on equities) of ~12%. Near-term outlook is hazy for all banks, we believe a healthy asset mix, superior customer profile, liability strength and capital comfort will allow Axis Bank to ride this challenging period.

Axis Bank Ltd: BUY

Dated: 5th October 2020

CMP: Rs.444

Fair Value: Rs.600

Potential Upside: 35.13%

Market Cap: Rs.1,35,274 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 21st July, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Axis Bank Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Sobha achieved 70% of sales volume in Q1FY21 as compared to Q4FY20, but will it be a worthwhile investment or is there a better way of gaining exposure to the growing market?

chbatavia@gmail.com (Chirag Batavia) — Mon, 28 Sep 2020 06:34:00 GMT

Sobha Ltd

 Sobha achieved 70% of sales volume in Q1FY21 as compared to Q4FY20. The performance should be seen in the backdrop of the company’s exclusive reliance on online/digital channels for almost 75 days of the quarter.

 Management highlighted that the level of inquiries from customers are now almost back to pre-Covid levels although they haven’t seen the same quantum of conversions leading to actual sales. Moratorium of Rs47.4 cr on debt servicing has helped the company generate positive free cash ﬂows of Rs48.6 cr. The debt at the end of the quarter remained ﬂattish at Rs. 3020 cr.

 Stringent cost control measures adopted by the company and higher proportion of own real estate deliveries led to margin expansion with operating margin (EBITDA margin) of 55% in Q1FY21.

 The order book for Sobha’s contractual business remains intact. Sobha is currently executing 94.8 lakh sq. ft of projects with order book of Rs2370 cr.

 Management highlighted that the labor force has started to return. It has recovered from 30-35% in the month of June 2020 to 60%level in July and is expected to return to normalcy in a few months’ time.

 Sobha remains conﬁdent of completing construction of its residential projects within the RERA timeline. We believe that the current share price of the company offers suﬃcient cushion on concerns over land bank valuation, even as development and contracts divisions recover from the lows in Q1FY21. We maintain BUY rating with a revised fair value of Rs. 400.

Sobha Ltd: BUY

Dated: 28th September 2020

CMP: Rs.232

Fair Value: Rs.400

Potential Upside: 73.24%

Market Cap: Rs.2,191 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 10th August, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Sobha Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Dalmia Bharat is progressing as per plan to reach 370 lakh tonnes per annum capacity and become the third largest in India by FY22E.

chbatavia@gmail.com (Chirag Batavia) — Mon, 21 Sep 2020 04:46:00 GMT

Dalmia Bharat

 Dalmia is progressing as per plan to reach 370 lakh tonnes per annum capacity and become the third largest in India by FY22E. Dalmia has completed the acquisition of Murli Industries having an integrated 30 lakh tonnes per annum cement capacity. Dalmia’s 78 lakh tonnes per annum organic expansions would complete in FY22E.

 With access to 20 states, the company is gradually elevating from the stature of a regional player. Dalmia continues to consolidate its position in the East and is increasing its presence in the West.

 Dalmia would be spending Rs2500 cr in FY21-22E towards expansion. Strong operating cash flows would still drive strong free cash flow and reduce net debt in FY22E. In absence of new projects, it would become debt-free (net debt level) in FY23E.

 As on September 11, 2020, the company has bought back 61.6 lakh equity shares for an aggregate amount of Rs328 cr out of approved amount of Rs500 cr.

 The company is well-poised for a re-rating given growth visibility, improving balance sheet and attractive valuation. IEX divestment and/or resolution of mutual fund case has strong re-rating potential. Our Fair Value of Rs1,075/share is based on 8X EV/EBITDA June 2022E financials.

Dalmia Bharat: BUY

Dated: 21st September 2020

CMP: Rs.769

Fair Value: Rs.1075

Potential Upside: 39.8%

Market Cap: Rs.14,532 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 14th September, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Dalmia Bharat Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.

As an NRI , you can purchase shares or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements.
Learn more: https://www.lakshitfinancial.com/nri

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

CESC’s consolidated profits declined 14.7% yoy to Rs198 cr largely led by a 41% yoy decline in standalone earnings to Rs134 cr

chbatavia@gmail.com (Chirag Batavia) — Mon, 14 Sep 2020 07:40:00 GMT

CESC Ltd

 In 1QY21, CESC’s consolidated profits declined 14.7% yoy to Rs198 cr largely led by a 41% yoy decline in standalone earnings to Rs134 cr due to the dual impact of Covid-19 and cyclone Amphan in Kolkata even as subsidiaries were lesser impacted.

 Dhariwal unit (subsidiary) reported Profit After Tax of Rs24 cr in 1QFY21, an improvement from losses of Rs24 cr. Improvement in performance was led by 7.4% yoy increase in sales volume to 91.3 crore units as PLF for 1QFY21 increased to 76% (71% in 1QFY20).

 Dhariwal unit has tied up 270 MW of Unit -2 under long term PPA while Unit-1 has signed a PPA (185 MW) with MERC starting November 2019 currently up to October 2020. Haldia unit (subsidiary) reported 12% yoy increase in PAT to Rs85 cr due to 7.2% yoy increase in realizations to Rs5.8/unit.

 Standalone business enjoys very high predictability of cash flows and profitability (>20% Return of Equity). We expect Earnings Per Share (EPS) to grow by 9.9% in FY21 and by 14.8% in FY22. High operating cash flows leads to healthy free cash flow generation.

 Valuations offer increased comfort. We maintain our BUY rating on CESC with a revised Fair Value of Rs820/share, with the results for 1QFY21 further strengthening our investment thesis on 1) stability of regulated business, 2) moderating losses from new distribution circles and 3) improving utilization for Dhariwal.

CESC Ltd: BUY

Dated: 14th September 2020

CMP: Rs.625

Fair Value: Rs.820

Potential Upside: 31.2%

Market Cap: Rs.8,278 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 9th September, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in CESC Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Zee’s BS and operational performance to improve going forward led by reduction in Working Capital. So how can you invest and is it worth it?

chbatavia@gmail.com (Chirag Batavia) — Mon, 07 Sep 2020 05:43:00 GMT

Zee Entertainment Enterprises Ltd

 We believe that the worst may be over in terms of Balance Sheet (BS) and operational concerns and expect the stock to gradually re-rate from current levels (12X PE) as the management delivers on governance and FCF promise.

 We expect Zee’s BS and operational performance to improve going forward led by reduction in Working Capital (W-cap) (flat or lower inventories/advances/receivables) and modest capex in FY21 driving healthy FCF conversion, and (2) gradual recovery in advertising demand as Covid impact tapers.

 Improved disclosures, introduction of policies pertaining to treasury management and investment and ongoing board reconstitution is rebuilding Zee’s investor confidence. Key risk to our call is any deviation from guidance (especially on governance and Balance Sheet front).

 We expect ZEE earnings to grow by 2.9% in FY21 and 50.8% in FY22. Zee has guided PAT to Free Cash Flow (FCF) conversion of 50%+ in FY22 but refrained from providing similar guidance for FY21 until 2Q, in view of the uncertain environment. As per our estimates the company is expected to generate FCF of Rs.2,907 cr in the next three years.

 The stock can re-rate further if (1) Zee cancels capital intensive Sugarbox project, and (2) on material improvement in operating and financial metrics on ZEE5. We upgrade the stock to ADD, with a fair value of Rs250, valuing at 14X Sep-22E earnings. In our view, success in OTT is imperative for re-rating beyond 14-15X PE.

Zee Entertainment Enterprises Ltd: ADD

Dated: 7th September 2020

CMP: Rs.219

Fair Value: Rs.250

Potential Upside: 14.16%

Market Cap: Rs.21,059 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 31st August, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Zee Entertainment Enterprises Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

BPCL's normalized results were well ahead of our estimates due to higher-than-expected margins. But what does that mean for its stock price?

chbatavia@gmail.com (Chirag Batavia) — Mon, 31 Aug 2020 09:19:00 GMT

BPCL Ltd

 BPCL's normalized results were well ahead of our estimates due to higher-than-expected margins.

 We expect BPCL to benefit from value unlocking from proposed strategic sale by the government, and potential improvement in earnings/FCF profile under a private player.

 We also expects elevated marketing margins on auto fuels, which may offset ongoing weakness in refining, gradual recovery in domestic petroleum demand, potential turnaround in global refining cycle from below-trough levels currently and lower fuel and loss in a weaker crude price environment.

 Reduction in gross debt; privatization process expected to complete by end-FY21. Gross debt reduced to Rs34,550 cr as of Jun'20 from Rs42,000 cr a quarter ago.

 We expect earnings to grow by 230% in FY21 and by 6.0% in FY22. We raise our FY21E EPS by 35% and FY22-23E EPS by 9-12% factoring in higher auto fuel marketing margins, lower underlying refining margins for FY21, etc.

 We reiterate BUY with a Fair Value of Rs.480.

BPCL Ltd: BUY

Dated: 31st August 2020

CMP: Rs.415

Fair Value: Rs.480

Potential Upside: 16%

Market Cap: Rs.90,022 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 14th August, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in BPCL Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

NTPC reported a comprehensive earnings performance.

chbatavia@gmail.com (Chirag Batavia) — Mon, 24 Aug 2020 05:01:00 GMT

NTPC Ltd

 NTPC reported a comprehensive earnings performance, with Q1FY21 growth in adjusted PAT of Rs.3,140 cr (+20% yoy) aligned to the growth in underlying regulated equity.

 NTPC remains confident of a scheduled commissioning of 10 GW (1 GW = 1,000 MW) of capacities under construction that will help the company report 14% compounded annual growth rate (CAGR) in earnings between FY20 and FY23E.

 The company expects regulated equity to grow at a CAGR of 15% for the next three years based on capacity under construction. Current CWIP (Capital Work in progress) is 33% of regulated equity, that will propel growth up to FY23E.

 NTPC has installed renewable capacity of 1.1 GW which it plans to grow to 32 GW by 2032 through a combination of owned assets and JVs.

 NTPC currently has 20 GW of capacities under construction on a standalone-basis that will likely commission over the next four years, resulting in an increase in regulated equity to Rs86,000 cr by FY23E (Vs Rs62,860 cr currently).

 Maintain BUY rating with revised Fair Value of Rs130/share, noting inexpensive valuations at 0.7x Price/Book Value and 6x P/E on FY22E earnings. Company is considering a buyback however no plans have been finalized yet.

NTPC Ltd: BUY

Dated: 24th August 2020

CMP: Rs.106

Fair Value: Rs.130

Potential Upside: 22.64%

Market Cap: Rs.1,05,130 Cr

Time Frame: 12 months

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in NTPC Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. Correspondence Address: Infinity IT Park, Bldg. No 21, Opp. Film City Road, A K Vaidya Marg, Malad (East), Mumbai 400097. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Adani Ports and SEZ stands out in the transportation space with business leverage from major ports, pricing power and cost elements in one’s control.

chbatavia@gmail.com (Chirag Batavia) — Mon, 17 Aug 2020 09:49:00 GMT

Adani Ports and SEZ (ADSEZ)

 Improved cargo mix restricted YoY decline in revenues to 18% despite sharp fall of 27% in volumes. In 1QFY21, ADSEZ was able to take its usual price increase in key cargo classes and meaningfully alter cost structure to maintain port margins despite volume decline.

 The share of long-term cargo in volume mix is significant at ~60%, helping realisation. We expect a decline in coal/bulk volumes of 20% in FY2021 and 10% yoy volumes for non-bulk classes in FY21.

 We take comfort in ADSEZ acquiring Krishnapatnam port asset (to be closed in 2QFY21) and Dighi Port asset (to be closed in 3QFY21). These two will open up the ~25% of market for port volumes in Andhra Pradesh and Maharashtra where ADSEZ currently lacks presence.

 ADSEZ has an unutilized land bank at Mundra, Dhamra and Kattupalli and it expects to capitalize on the upcoming opportunities related to shift of trade from China to India.

 ADSEZ stands out in the transportation space with business leverage from major ports, pricing power and cost elements in one’s control. We arrive at an Sum-of-The-Parts (SoTP) based Fair Value of Rs400/share for ADSEZ.

Adani Ports and SEZ (ADSEZ): BUY

Dated: 17th August 2020

CMP: Rs.349

Fair Value: Rs.400

Potential Upside: 14.6%

Market Cap: Rs.70,868 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 11th August, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Adani Ports and SEZ (ADSEZ) and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Jyothy Laboratories Ltd is adding more stockists, strengthening their direct delivery through the retailer’s app and enhancing focus on e-commerce platforms.

chbatavia@gmail.com (Chirag Batavia) — Mon, 10 Aug 2020 05:44:00 GMT

Jyothy Laboratories Ltd

 JYL’s 1QFY21 result was ahead of expectations primarily on the back of sharp jump in Home Insecticides sales. JYL has seen positive sales growth in the month of July as well. Restrictions and strict lockdown in some states are still impacting some operations.

 The overall sentiment has improved and impacted segments are seeing month on month (MoM) improvement. JYL is keeping working capital in check by not extending credit, operating on cash basis & making prepayment to suppliers with longstanding relationships.

 JYL is adding more stockists, strengthening their direct delivery through the retailer’s app and enhancing focus on e-commerce platforms.

 Favourable RM environment, certain operational efficiencies and calibration of ad-spends as per requirement should aid operational performance. We continue to like JYL’s brand portfolio and the overall opportunity in the hygiene categories.

 We expect Earnings Per Share (EPS) to rise by 17.5% in FY21 and by 9% in FY22. The combination of reasonable valuations and JYL’s portfolio promise keeps us constructive. Recommend ADD with a FV of Rs160.

Jyothy Laboratories Ltd: ADD

Dated: 10th August 2020

CMP: Rs.142

Fair Value: Rs.160

Potential Upside: 12.7%

Market Cap: Rs.5200 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 5th August, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Jyothy Laboratories Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Bharti remains a solid play on one of the two mutually exclusive events likely to play out in the Indian wireless industry

chbatavia@gmail.com (Chirag Batavia) — Mon, 03 Aug 2020 10:26:00 GMT

Bharti Airtel Ltd

 Bharti remains a solid play on one of the two mutually exclusive events likely to play out in the Indian wireless industry, 1) market stays a 3-player one or 2) market consolidates further.

 1QFY21 Overall revenues of Rs23,938 cr (+0.9% qoq, +15.4% yoy) were in line with our estimate. EBITDA stood at Rs10,407 cr, (+2% qoq), 0.6% ahead of our estimate.

 India Revenues came in at Rs12,877 cr, -0.6% qoq, +19% yoy, 0.7% above our estimate. Implied (Average Revenue Per User) ARPU stood at Rs152/sub/month (flat qoq).

 Management said that the current tariffs are still at low levels. They have guided for ARPUs to move to Rs. 200 in the short term and Rs. 300 in the medium term. Bharti is looking to develop new streams of revenues and drive efficiencies through its digital platform. It has built content offerings through partnerships.

 Bharti has set up a dedicated team to look at cost rationalization measures amid the Covid-led disruption. Adoption of digital channels has also helped reduce commission costs.

 We expect the company to generate free cash flows of Rs.29,561 cr in the next three years. We reiterate BUY with a fair value of Rs710, valuing on sum of the parts (SOTP) basis.

Bharti Airtel Ltd: BUY

Dated: 3rd August 2020

CMP: Rs.555

Fair Value: Rs.710

Potential Upside: 27.9%

Market Cap: Rs.3,02,838 Cr

Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 30th July, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Bharti Airtel Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

KEI International Ltd ordering pipeline remains strong.

chbatavia@gmail.com (Chirag Batavia) — Mon, 27 Jul 2020 10:17:00 GMT

KEC International Ltd

 Ordering pipeline remains strong. Order inflows for the full year declined by 12% yoy at Rs. 113 bn mainly due to the impact of Covid-19 in March. Despite getting impacted by lockdowns, we expect inflows to improve due to a strong ordering pipeline from PGCIL (worth Rs. 150 bn), railways (worth Rs. 100 bn) and SEBs (worth Rs. 100 bn) to be finalized during 1HFY21.

 International order inflows, after remaining weak in FY20, are expected to improve from SAARC, MENA region, America and Africa. With a strong order backlog, we expect the company to ramp up execution in coming quarters.

 Reductions in borrowings and working capital lend comfort on interest costs. Higher share of foreign borrowings led to lower interest costs as percentage of sales. The company expects to maintain it around 2.3% of sales for FY21E.

 Lockdown during March resulted in pending receivables worth Rs. 3-4 bn, which were cleared in April. This impacted overall borrowings too for FY20. Going forward, the company maintains its focus towards reducing receivables while it expects to continue to support vendors due to liquidity challenges.

 The company has retained its guidance of 15% growth in revenues for FY21 but has mentioned that it is subject to easing of lockdown conditions. It expects margins to get the benefit of lower commodity prices amid higher labour costs.

 Net of roll-forward, our fair value works to Rs. 342. We have a BUY as we expect the company to benefit from a strong ordering pipeline, uptick in railways & civil segment revenues and lower commodity prices.

KEC International Ltd: BUY

Dated: 27th July 2020

CMP: Rs.265

Fair Value: Rs.342

Potential Upside: 29.06%

Market Cap: Rs.6812 Cr

Time Frame: 12 months

Note: Note: The above is a brief note on the company, based on the inputs of KIE research report dated 31st May, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in KEI International Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

IOC Ltd normalized EBITDA, adjusted for inventory/forex movement, was ~Rs. 10,100 cr in Q4FY20, reflecting higher realized refining and marketing margins and lower operating expenses.

chbatavia@gmail.com (Chirag Batavia) — Mon, 20 Jul 2020 10:05:00 GMT

Indian Oil Corporation Ltd

 IOCL’s normalized EBITDA, adjusted for inventory/forex movement, was ~Rs. 10,100 cr in Q4FY20, reflecting higher realized refining and marketing margins and lower operating expenses. Inventory-adjusted refining margins increased by US$6.2/bbl qoq to US$8.2/bbl turning significant premium to benchmark margins.

 In Q4FY20, Inventory-adjusted marketing margins also jumped 21% qoq to Rs2,082/ton, contrary to stable margins reported by BPCL and HPCL. Reported EBITDA was modestly positive ~ Rs210 cr, including inventory loss of ~Rs7,160 cr and forex loss of ~Rs2,720 cr.

 In FY20, IOCL’s normalized EBITDA declined to ~Rs.27,400 cr from ~Rs.31,300 cr in FY19. Reported EBITDA was sharply lower at Rs18,160 cr including inventory loss and forex loss. Adjusted net income declined 69% yoy to ~Rs.5,200 cr (EPS of Rs.5.7). Gross debt increased to Rs.1,17,000 cr as on FY20 end from Rs.86,400 cr in FY19 led by increase in working capital deployment.

 In the post result conference call of Q4FY20, IOCL indicated that refining utilization had recovered to 90% in Jun’20 from ~55% in May'20, while auto fuel demand was ~85-90% of normal volumes from about 45-70% in Apr'20 and May'20.

 The recent hikes in auto fuel prices allay concerns on marketing margins for now. The SoTP-based fair value is Rs.115 based on 6x FY22E EV/EBITDA for standalone business plus the value of investments.

Indian Oil Corporation Ltd: BUY

Dated: 20th July 2020

CMP: Rs.87

Fair Value: Rs.115

Potential Upside: 32.1%

Market Cap: Rs.81809 Cr

Time Frame: 12 months

Note: Note: The above is a brief note on the company, based on the inputs of KIE research report dated 26th June, 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in IOC Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Titans's standalone revenues stand at Rs44.3 bn, about 9% higher than our preliminary estimate of Rs4070 cr.

chbatavia@gmail.com (Chirag Batavia) — Mon, 13 Jul 2020 09:43:00 GMT

Titan Company Ltd

 Standalone revenues stand at Rs44.3 bn, about 9% higher than our preliminary estimate of Rs4070 cr. Gross margins of 30.1%, up 283 bps yoy, were much ahead of KIE estimate. Lower discounting and higher studded share (on the back of activation) drove increase in margin. Gross profit grew 5% yoy. EBITDA came in at Rs600 cr, strong growth of 20% yoy on a reported basis.

 4QFY20 print can be called a healthy one in the context of the lockdown impacting nearly a sixth of the quarter. The company responded well on the costs front to mitigate the damage even as working capital did take a knock. Interestingly, pre-lockdown performance in both jewelry and watches segments suggests acceleration versus 3Q/9MFY20 trends.

 Short-term revenue and margin prognosis for TITAN’s segments is tricky, to say the least. Consumer sentiment could remain subdued for a while even in the post-Covid era, whenever we get there. While acknowledging these challenges, TITAN management is focusing more on the opportunities in the new normal, the primary one being the scope for accelerated market share gains on the back of the trust its brands command and the balance sheet pressures its competitors are likely to face.

 The company intends to maximize this tailwind by stepping up its efforts on (1) leveraging the loyalty program (Encircle) database, (2) new engines of growth – omni-channel and affordable jewelry (not gross margin dilutive), and (3) pushing the existing engines of growth harder – wedding, high-value studded, gold exchange program, etc.

 COVID Update: More than 1,400 out of 1,800 stores are open. Tanishq has opened 280+ stores out of its 329 stores. In the Tanishq stores (which have been open for four weeks now), average daily sales have recovered to 80% of normative levels. This number is lower at 44-46% for World of Titan, Fastrack and Eyeplus. TITAN is also negotiating rent reductions and waivers; some of the landlords have moved to revenue share basis. They are looking to reduce costs; they can also look to shut some subpar stores, if required. The company is also looking to enhance its omni-channel play. DCF-based FV stands revised down to Rs. 1,215.

Titan Company Ltd: BUY

Dated: 13th July 2020

CMP: Rs.962

Fair Value: Rs.1215

Potential Upside: 26.3%

Market Cap: Rs.856.7 bn

Time Frame: 12 months

Note: Note: The above is a brief note on the company, based on the inputs of KIE research report dated 9th June, 2020, which is available on their website at:

https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Titan Company Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Equitas reported ~66% yoy operating profit but earnings declined ~60% primarily on account of higher provisions for Covid.

chbatavia@gmail.com (Chirag Batavia) — Mon, 06 Jul 2020 09:26:00 GMT

Equitas Holdings Ltd

 Equitas reported ~66% yoy operating profit but earnings declined ~60% primarily on account of higher provisions for Covid. Revenue growth was solid at 27% yoy driven by strong growth in Net interest income at 30% yoy.

 Gross Non-performing loans (GNPL) ratio improved ~20 bps qoq to 2.7% as slippages (~2.6% of loans from 3.8% in 3QFY20). Net Non-performing loans (NNPL) ratio was stable at ~1.7%. ~93% of the loan book is under moratorium as of April 2020. Provision coverage on NPLs stood at 45% as of 4QFY20 (up ~150 bps qoq).

 Overall deposit growth moderated further to ~20% yoy in 4QFY20 (~3% qoq) led by sequential declines in current account deposits, Corporate deposits (CDs) and bulk Term deposits (TDs). This was offset by a strong performance in retail TDs (up ~24% qoq, 133% yoy).

 Calculated Net interest margin (NIM) for the SFB expanded by ~40 bps qoq to 9.3% in 4QFY20 driven by both, a decline in cost of funds by ~20 bps qoq to ~7.8% and increase in yields qoq up ~90 bps to 19.5%. KIE expects NIM to remain marginally weak in FY22-23E led by lower yields as the company skews the product mix further towards less-riskier products.

 KIE expects: 1) 15% CAGR in CASA and ~40% growth in TDs over FY20-23E; 2) forecasts 20% CAGR in AUM over FY20-23E driven by slowdown in all businesses and 3) cost to income ratio to moderate to ~62% by FY22E (~70% in FY19). KIE is building higher gross NPLs at ~4% and net NPLs at 1.5% for FY22-23E.

 KIE maintains BUY rating with fair value at Rs.100 valuing the stock at 1.1x book and ~10x EPS March 2022E for RoEs which are likely to remain subdued in the medium term but move closer to industry average beyond FY23E.

Dated: 6th July 2020

CMP: Rs.53

Fair Value: Rs.100

Potential Upside: 88.6%

Market Cap: Rs.18.16 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 31st May 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Equitas Holdings Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

DCB Bank reported a weak 4QFY20 with earnings declining ~30% yoy led by 3.5x growth in provisions.

chbatavia@gmail.com (Chirag Batavia) — Fri, 26 Jun 2020 08:58:00 GMT

DCB Bank Ltd

 DCB Bank reported a weak 4QFY20 with earnings declining ~30% yoy led by 3.5x growth in provisions. Revenue growth was slow at 8% while tight cost control resulted in 15% growth in operating profits. Loan growth has decelerated further to ~7.5%.

 In Q4FY20, Gross NPL ratio increased ~30 bps qoq to 2.5% while net NPL ratio increased 20 bps qoq to 1.2%. Provision coverage ratio stood at ~54% as of 4QFY20. Slippages were at ~2.4% of loans (~2.8% in FY20 & ~4.2% in FY19). KIE is building in higher slippages of ~3.5% for FY21-23E.

 In Q4FY20, Net interest margin (reported) was marginally down qoq at ~3.5% with yield on advances and cost of funds declining marginally qoq. KIE expects NIMs to stay ~3.6-3.7% over FY21-23E (from 3.6% in FY20) driven by reduction in both yield on advances and cost of funds.

 KIE likes the approach taken by DCB and believes that it would be able to tide through this challenging period even if the business conditions in the post Covid environment are different from what we have seen earlier.

 KIE expects Net Loan growth to be 6% in FY21, 12% in FY22 and 17% in FY23. It expects Net profit to de-grow by 2% in FY21E and then grow by 9% in FY22E and 46% in FY23E. KIE forecasts 12% CAGR growth in total deposits over FY19-23E and expects CASA ratio to gradually improve to ~29% over the medium term.

 KIE values the bank at 1.3x book and 13x March 2022E EPS for RoEs moving closer to 10% in the medium term. KIE cuts earnings sharply to reflect slower loan growth and higher provisions. Maintains BUY rating with a fair value of Rs.150.

DCB Bank Ltd: BUY

Dated: 29th June 2020

CMP: Rs.82

Fair Value: Rs.150

Potential Upside: 82.93%

Market Cap: Rs.25.44 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 23rd May 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in DCB Bank Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Castrol’s 1QCY20 performance was marred by a sharp decline in sales to distribution led by a nationwide lockdown during end-March.

chbatavia@gmail.com (Chirag Batavia) — Mon, 22 Jun 2020 08:11:00 GMT

Castrol India Ltd

• Castrol’s 1QCY20 performance was marred by a sharp decline in sales to distribution led by a nationwide lockdown during end-March. Castrol’s volumes declined 25% yoy to 37.6 mn liters In 1QCY20.

• Castrol is focusing on undertaking cost control measures to support margins amid decline in volumes to mitigate negative operating leverage and streamline collections from the distribution channel to improve its working capital cycle.

• KIE expects volumes to recover in CY21; model margins to remain around 30% amid lower crude/base oil prices. Castrol earnings are leveraged to exchange rate and raw material prices.

• KIE expects EPS of Rs.6 in CY20, Rs.8.9 in CY21 and Rs.9.6 in CY22 factoring in a sharp 25% yoy reduction in volumes during CY20 impacted by Covid-19, modestly higher gross margins amid a decline in base oil prices partly offset by a weaker Rupee and other minor changes.

• KIE retains BUY rating on the stock with a revised fair value of Rs165 based on DCF - implied 18x P/E multiple on Jun'22 estimates amid attractive valuations and healthy FCF/dividend yield of 7%.

Castrol India Ltd: BUY

Dated: 22nd June 2020

CMP: Rs.119

Fair Value: Rs.165

Potential Upside: 38.7%

Market Cap: Rs.117.46 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 17th June 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Castrol India Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Biocon (BIOS) and Mylan (MYL) have received USFDA approval for Semglee (Lantus)

chbatavia@gmail.com (Chirag Batavia) — Mon, 15 Jun 2020 07:56:00 GMT

Biocon Ltd

• Biocon management has laid out an aspirational US$1 bn revenue target for the biologics segment by FY22 (KIE: US$475 mn; FY20E: US$280 mn), which we believe is a blue-sky scenario. KIE expects the lagging market share trend of Mylan in the US and EU to continue through FY21/22, given the emerging competitive landscape.

• Biocon (BIOS) and Mylan (MYL) have received USFDA approval for Semglee (Lantus), but as expected, the USFDA granted a non-interchangeable status to Semglee. The approval was highly anticipated but the product received a non-interchangeable rating, with interchangeability likely to be pursued post approval by MYL/BIOS. The focus shall now be on commercial execution.

• Also, Pfizer has announced the approval for Nyvepria, its biosimilar to Neulasta. This is the fourth biosimilar approval for Neulasta in the US, and given Pfizer’s strengths in oncology and supportive care, KIE expects Pfizer to take a meaningful share of the market. KIE also expects Neulasta biosimilar market to turn further competitive in 2HCY20, potentially marking the peak for Fulphila in FY21.

• Even for Herceptin, Amgen has taken a meaningful lead in the market, whereas MYL has low single-digit market share. Thus KIE expects the full impact of launches by Pfizer, Teva and Merck to be seen in 2HCY20, and expect Mylan to lag competitors with an expected mid-single-digit market share for FY21.

• Thus, KIE believes expectations from BIOS’ biosimilars pipeline remain elevated, and see risks of continued market share disappointments. Hence KIE retains its SELL rating on the stock with revised fair value of Rs225/share. In the SOTP target price of Rs.225/share, the base business is valued at Rs.130, Biologics pipeline is valued at Rs.101 and net debt at Rs.6.

Biocon Ltd: SELL

Dated: 15th June 2020

CMP: Rs.385

Fair Value: Rs.225

Potential Downside: 41.6%

Market Cap: Rs.461.52 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 16th May 2020 & 12th June 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Kalpataru Power Transmission Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

BPCL's management expects daily auto retail fuel price revision may restart soon,

chbatavia@gmail.com (Chirag Batavia) — Mon, 08 Jun 2020 07:39:00 GMT

BPCL

 BPCL’s normalized results were well above KIE's estimates in 4QFY20 led by higher realized refining and marketing margins; reported results were marred by large inventory/forex loss.

 BPCL’s normalized EBITDA, adjusted for adverse inventory/forex movement, was well above KIE's estimate at Rs.54.9 bn in Q4FY20, reflecting higher realized margins for refining and marketing segments.

 In FY20, normalized refining margins increased modestly to USD 4.2/bbl while marketing margins increased modestly by 2% yoy. Company’s domestic volumes remained steady at 43.1 mn tons; exports increased modestly to 2.6 mn tons from 1.9 mn tons in FY10.

 In FY20, consolidated net income was higher at Rs36.6 bn (EPS of Rs15.6), including Rs15 bn of profits from NRL and higher contribution from IGL/PLNG, which was offset by net loss of Rs8 bn reported by BORL.

 Company management expects daily auto retail fuel price revision may restart soon, once low-cost inventory gets utilized with demand reverting to normalcy (~70% currently). Capex will likely be lower around Rs. 80 bn in FY21 and propylene derivatives petchem project at Kochi is mechanically complete, although commissioning is delayed.

 KIE expects standalone EPS of Rs25.7 (-24%) in FY21 and Rs33 (-7%) in FY22 factoring in lockdown-related impact on volumes & margins and other minor changes. KIE retains BUY on the stock with a SoTP-based fair value of Rs440.

Dated: 8th June 2020

CMP: Rs.370

Fair Value: Rs.440

Potential Upside: 23.3%

Market Cap: Rs.804.78 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 5th June 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in BPCL and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Kalpataru Power Transmission Ltd board has also approved buy-back of shares

chbatavia@gmail.com (Chirag Batavia) — Tue, 26 May 2020 07:08:00 GMT

Kalpataru Power Transmission Ltd

 KPTL (standalone) reported a decline of -8%/-5%/-22% yoy in 4QFY20 Revenues/EBITDA/PAT. Performance at the PAT level was impacted by higher-than-expected interest and tax expense leading to 22% yoy decline.

 Losses at PBT level for Shubham Logistics have come down yoy while JMC Projects' performance was impacted by lockdown, labour unavailability and provisioning pertaining to one road project.

 Order inflows were weak during the quarter but KPTL has received orders worth Rs9 bn in FY21 to date and has L1 position in orders worth Rs20 bn. The company maintained its focus towards asset monetization and debt reduction.

 KPTL board has also approved buy-back of shares at a maximum price of Rs275 per share for an aggregate amount not exceeding Rs2 bn, representing nearly 4.7% of paid up capital. KIE builds in 40% yoy decline in 1QFY21 revenues with 200 bps adverse impact on margins due to the lockdown. For the full year, Revenues to decline by 3% yoy and margins of 10.2%.

 KIE cuts order inflow estimates of KPTL by 16%/14% and revenues by 12%/9% for FY21/22E to factor in delays in finalization of tender pipeline on lockdown and slowdown in domestic and global economies. KIE expects the company to become debt free by FY22.

 KIE also reduces order inflow for JMC Projects and toll collection estimates for its road projects for FY21E and moderate its expectations of traffic growth in FY22E. Pledged shareholding by promoters, which had moved up during the quarter due to fall in share price, remains a key overhang on the stock. Retain BUY with revised fair value of Rs. 470.

Note: The above is brief note on the company, based on the inputs of KIE research report dated 21st May 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Kalpataru Power Transmission Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India.

Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Hindustan Unilever Ltd has further stepped up focus on cost savings.

chbatavia@gmail.com (Chirag Batavia) — Mon, 18 May 2020 07:28:00 GMT

Hindustan Unilever Ltd

HUVR’s 4QFY20 revenues declined 9% yoy to Rs90.1 bn led by 7% decline in underlying volume growth (UVG). As per management, it gained market share by about 50 bps (portfolio level) & normative revenue growth (excluding Covid impact) was 3% yoy, weak but broadly similar to 3Q. Homecare – revenues down 4% yoy, Personal care – revenues were down 13% yoy & Food and refreshment – revenues declined 7% yoy. Overall, demand was resilient for health, hygiene and food products whereas personal care (excluding personal wash), ice-cream and water purifier sales were significantly impacted. HUVR has further stepped up focus on cost savings. The company would also defer expansion plans (capex) and restructuring expenses. Management indicated that it has ramped up production to 75-80% of normative levels despite lockdown-led challenges which KIE believes as very impressive execution.

KIE has factored in Covid impact and cut FY2021-22E earnings by 11-15%, modelled 12% decline in sales in 1QFY21, flat sales in 2Q and gradual recovery starting 3QFY21 and estimates now include numbers of GSK-CH. KIE expects HUVR to race ahead of competition, further widening execution gap, and accelerated margin expansion led by permanent retention of a few ‘temporary’ cost savings and dominance of this nimble-footed giant to increase further. KIE has rolled over & arrived at a revised DCF-based fair value of Rs2,300. The current market price of HUVR is Rs 2030 with Rs 4770.72 bn and has an upside potential of 13.18%.

Note: The above is brief note on the company, based on the inputs of KIE research report dated 1st May 2020, which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Hindustan Unilever Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Registered Office: Lakshit Financial, 'Lakshit', ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Tel: +91 95956 77881. Lakshit Financial - AP Regn. No:- BSE: AP0106730124228 - CASH; NSE: AP029177621 - CASH / F&O / CDS.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Max Financials and Axis Bank have finally announced the much-awaited transaction

chbatavia@gmail.com (Chirag Batavia) — Mon, 11 May 2020 07:23:00 GMT

Max Financial Services Ltd

Max Financials (Max FS) and Axis Bank have finally announced the much-awaited transaction – Max FS has entered into a definitive agreement to sell 29% stake in Max Life to Axis Bank, subject to regulatory approvals. Axis Bank currently holds ~1% in Max Life. Management expects to complete the transaction in CY20. Max FS has already announced a share swap with Mitsui Sumitomo (MSI) for its 21.9% stake in Max Life. After the conclusion of the transaction, Max FS will own 70% stake in the insurance JV with Axis Bank owning the balance 30%. The definitive agreement provides Axis Bank with three directors to the board of Max Life.

With 30% equity stake, KIE believes Max Life will remain the preferred partner for Axis Bank. The extension of Axis partnership, expiring in September 2020, has been crucial for the company. Axis Bank contributes ~55% of Max Life’s individual APE.

KIE continues to believe the Max Life remains a strong and highly profitable franchise. Even though FY21 will be a challenging year for the industry, relatively superior operating performance of Max will likely drive stock rerating, on obtaining regulatory approvals. KIE expects Max Life to deliver medium-term VNB margin (post overrun) of 21-22% and >20% operating RoEV. Max Life trades at significant discount to peers. Current market price of the stock is Rs 451 with market cap of Rs 122.11 bn KIE has a ADD rating with fair value of Rs550 with upside potential of 21.95%

Note: The above is brief note on the company, based on the inputs of KIE research report dated 29th April, 2020 which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Max Financial Services Ltd and other Indian stocks? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Hindalco Industries Ltd FY2021E earnings would be hit due to aluminum exposure at India business and loss in auto volumes at Novelis.

chbatavia@gmail.com (Chirag Batavia) — Mon, 04 May 2020 11:05:00 GMT

Hindalco Industries Ltd

Beverage can shipments, two-third volume of Novelis, remain intact despite Covid-19 as reassured by major global packaging companies. As beverage can demand is stable in April 2020 with demand being strong in the US, stagnant in Europe and slightly weak in Asia. Investors are concerned regarding Novelis' (70% of HNDL EBITDA) exposure to North America and Europe, the worst-hit geographies by Covid-19. KIE notes that Covid-19 has a major impact only on the auto segment (20% of FY2020E volume mix) of Novelis whereas the beverage can segment (65% of FY2020E volume mix) remains largely unaffected.

Covid-19-led lockdowns in the US and Europe have impacted the auto finishing lines of Novelis along with auto OEMs. For FY2021E, KIE factors a 50% yoy drop in auto volumes with a gradual demand recovery from 2HFY21E. Further, KIE sees near-term headwinds from lower scrap spreads as UBC (used beverage can) discounts have reduced to 31 ¢/lb in April 2020 from +40¢/lb in 3QFY20 due to lower LME prices and limited collection of UBC amid lockdowns.

HNDL's FY2021E earnings would be hit due to aluminum exposure at India business and loss in auto volumes at Novelis. With Aleris, HNDL's net debt/EBITDA increases to 4.4X in FY2021E. However, with interest coverage of 2.5X, liquidity of +US$3 bn and negligible repayments in FY2021-22E, KIE sees the leverage manageable. KIE notes that HNDL would generate FCF even in FY2021E with yield of 7%. The stock has corrected to 0.5X P/B (ex-goodwill) FY2022E versus historic mean of 1.1X and close to 2008/2015 trough of 0.4X. KIE says it find risk-reward attractive at 4X EV/EBITDA FY2022E versus historic mean of 6.5X and maintain BUY.

Current Market Price of Hindalco Industries Ltd is Rs 130 with a market cap of Rs.292.01 bn. KIE says the fair value of Hindalco Industries Ltd is Rs 225 and has a potential upside of 73.8%

Note: The above is brief note on the company, based on the inputs of KIE research report dated 27th April, 2020 which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in Hindalco Industries Ltd and other Indian stock? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Note

Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC. Also, all calls with Lakshit Financial representatives may be recorded for internal quality & training purposes

Mahindra & Mahindra Ltd domestic tractor segment to recover the fastest among other segments

chbatavia@gmail.com (Chirag Batavia) — Mon, 27 Apr 2020 08:06:00 GMT

Mahindra & Mahindra Ltd

KIE expects the domestic tractor segment to recover the fastest among other segments (PVs, two-wheelers and CVs) once the pandemic situation stabilizes in India driven by (1) record rabi output due to a good monsoon, (2) improvement in prospects of kharif output due to adequate water reservoir levels and (3) increase in MSPs of rabi crops, which augurs well for farm income. KIE expects overall tractor volumes to grow at 3% CAGR over FY2019-22E. This will result in the revenue mix of the tractor segment in M&M+MVML to improve from 32% in FY2019 to 36% in FY2022E, resulting in the share of tractor EBIT segment in overall revenues to improve from 53% in FY2019 to 68% in FY2022E.

Recently, the Board took a decision to not infuse any fresh equity into Ssangyong (will only consider one-time special infusion of US$32 mn) and has urged Ssangyong to find alternate sources of funding. KIE believes such steps could lead to value unlocking in the long term. KIE expects the near term to remain challenging for the company given Covid-19-led uncertainties; however, KIE expects tractor demand to recover once the situation stabilizes on record rabi crop output.

Despite the company’s capital allocation issues, stock valuations look very cheap. KIE has assigned 13X multiple to the core business of M&M+MVML – (1) 17X multiple to the tractor segment given its long-term growth prospects and strong leadership position of the company in this segment and (2) 7X multiple to the automotive segment given multiple headwinds. The value of the stake in publicly listed subsidiaries (assuming 20% holding company discount) is around Rs200.

Current Market Price of Mahindra & Mahindra Ltd is Rs 334 with a market cap of Rs 413.98 bn. KIE says the fair value of M&M Ltd is Rs 625 and has a potential upside of 87.1%

Note: The above is brief note on the company, based on the inputs of KIE research report dated 16th April, 2020 which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade Bajaj Finserv Ltd and other Indian stock? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Note

Bajaj Finserv’s partnership with Axis Bank will likely provide some upside to volumes and improve operating leverage, not factored at this stage.

chbatavia@gmail.com (Chirag Batavia) — Mon, 20 Apr 2020 07:34:00 GMT

Bajaj Finserv Ltd

Bajaj Finserv’s partnership with Axis Bank will likely provide some upside to volumes and improve operating leverage, not factored at this stage. Lower ULIPs volumes, mostly in FY21E, will likely put pressure on VNB growth for the year. However, KIE expects both life and non-life businesses to benefit from higher demand for (life and health) protection in the current environment. The current holding company discount of Bajaj Finance is probably at peak. The current discount appears at the highest level when compared with year end data points. This, in our view, provides two solid levers for stock price appreciation (1) reduction in holding-company discount and (2) Appreciation in stock price of Bajaj Finance.

The uncertainty on the lockdown and ensuing collection behavior will prompt Bajaj and all lenders to slow down new loans. KIE has always liked the franchise of Bajaj Finance and management of the company though high valuations had held back from having a more aggressive stock view. KIE continues to remain assertive on Bajaj Finance’s ability to get back on the growth track even as FY21E performance will likely remain weak. At RGM-based FV Rs2,700/share, KIE expects Bajaj Finance stock to trade at 3.6X March 2022E. Bajaj Finance remains the key value driver contributing to about 66% to Bajaj Finserv’s SOTP.

KIE values the life insurance business at 1.3X EV and general insurance business at 4x book. The life business remains relatively sub-optimal with 12-13% near-term operating RoEV as compared to 18-20% for large peers. KIE is building in 10% holding-company discount.

Currrent market price of Bajaj Finserv is Rs 5000. KIE says the fare value of Bajaj Finserv is Rs 7150 and has a potential upside of 43%

Note: The above is brief note on the company, based on the inputs of PCG research report dated 15th April, 2020 which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade Bajaj Finserv Ltd and other Indian stock? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Note

Expecting Gujarat Gas Ltd to report an EPS of Rs.13.03 in FY21E and Rs.15.8 in FY22E

chbatavia@gmail.com (Chirag Batavia) — Mon, 13 Apr 2020 05:53:00 GMT

Gujarat Gas Ltd

 As per Petroleum Planning & Analysis Cell, the government has reduced the domestic natural gas price by 26% to a record low of US$2.39 per million British thermal units on gross calorific value and will be applicable for H1FY21.

 Also, due to the global gas demand-supply mismatch the natural gas price has corrected meaningfully which bodes well for gas demand revival. Additionally, the regulatory push for less polluting fuels more so in case of Gujarat will also support gas demand for GGCL.

 Notably, Natural gas prices (raw material) and margin have strong co-relationship. The fall in domestic gas prices augurs well for local end consumers and CGD sector like Gujarat Gas. This will help in demand revival and support margin improvement. CNG is a strong profitable segment given uninterrupted supply of cheap domestic gas.

 We remain optimistic and expect that the near-term pressure on gas volumes due to the lock-down to be temporary and volume growth to normalize. There are multiple drivers to support demand revival such as regulatory push to curb pollution, competitiveness of CNG versus petrol and the government’s target to boost the share of gas in India’s energy mix to ~15% by 2025 from 6%.

 Given strong thrust on less polluting fuels (post NGT order), we expect gas volume off-take to improve post removal of lock-down. We expects GGCL to report an EPS of Rs.13.03 in FY21E and Rs.15.8 in FY22E. We now recommend BUY on the stock. We maintain our positive view on GGCL with a PE multiple based price target of Rs.269/share. Additionally, strong free cash flow and healthy return ratios also provide high comfort.

 KIE gives a Buy call on Gujarat Gas Ltd on 13/04/2020

CMP: Rs.235

Fair Value: Rs.269

Potential Upside: 14.47%

Market Cap: Rs.161.42 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of PCG research report dated 8th April, 2020 which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade Gujarat Gas Ltd and other Indian stock? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Gail has indicated that it has already placed ~90% of the US LNG volumes for CY20 as well through adequately priced or hedged contracts

chbatavia@gmail.com (Chirag Batavia) — Tue, 07 Apr 2020 05:23:00 GMT

GAIL India Ltd

 Gail has indicated that it has already placed ~90% of the US LNG volumes for CY20 as well through adequately priced or hedged contracts. The company has managed the risk well over the past seven quarters post commencement of the US LNG suppplies despite volatility in crude/spot LNG prices.

 KIE's bear-case scenario for the US LNG portfolio indicates that the gas marketing segment may break-even for a year or two, until fertilizer plants ramp up off-take.

 KIE’s reverse valuation exercise suggests that GAIL is pricing in a scenario of significant gas marketing losses of over Rs20 bn in perpetuity, ignoring near-term nature of risk and GAIL’s ability to manage it.

 KIE has ascribed lower EV/EBITDA multiple of 5-6x for GAIL's gas transmission & commodity segments and assumed 30% holding company discount to MTM value of investments to arrive at an implied negative value of Rs. 122 bn for gas marketing segment - at a reasonable 6x EV/EBITDA multiple, it builds in a large EBITDA loss of ~Rs. 20 bn in perpetuity.

 KIE has cut EPS estimates to Rs.11.5 (-6%) in FY20, Rs.9.8 (-29%) in FY21 and Rs.11.4 (-23%) in FY22. KIE finds the concerns overdone and reiterates BUY on GAIL with a FV of Rs. 150. We see GAIL as the top pick among energy PSUs given its structural growth prospects and play on oil price recovery .

 KIE gives a Buy call on Gail India Ltd on 07/04/2020

CMP: Rs.81

Fair Value: Rs.150

Potential Upside: 85.18%

Market Cap: Rs.364.19 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 3rd April 2020 which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade GAIL India Ltd and other Indian stock? Open your trading account with Lakshit Financial

www.lakshitfinancial.com

Apollo Hopsitals (APHS) to benefit from an improving maturity profile

chbatavia@gmail.com (Chirag Batavia) — Mon, 30 Mar 2020 13:53:00 GMT

Apollo Hospitals Enterprise Ltd

 KIE expects Apollo Hopsitals (APHS) to benefit from an improving maturity profile, even as the near-term outlook is challenging given lower volume of international and domestic travel patients, as well as deferment in OPD footfalls and elective surgeries, though, KIE expects a full demand recovery in 2HFY21.

 KIE expects APHS to face significant pressure in near-term earnings on account of COVID-19, with the impact likely at multiple levels: 1) Decline in international patient volumes; 2) Decline in outpatient visits; 3) Deferment of elective cases; and 4) Shift in ordering patterns could hurt SAP growth.

 As per KIE estimates, 60-65% of costs in hospitals are fixed in nature; consequently lower utilization will lead to material decline in EBITDA margin. KIE believes the impact will likely be transitory, and expects recovery in operations from 2QFY21 with normalization of business in 2HFY2.

 The pace of recovery depends on resumption of international travel, particularly, from the Indian sub-continent, Middle East and South East Asian regions. KIE has cut EBITDA estimates for FY20 by 8% and FY21 by 18%. KIE EBITDA estimates for FY22E are largely unchanged, though deleveraging and margin expansion at new units will likely be delayed by 12 months.

 KIE gives a BUY call on Aplool Hospitals Ltd on 30/03/2020

CMP: Rs.1167

Fair Value: Rs.1820

Potential Upside: 56%

Market Cap: Rs.163.88 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 20th March 2020 which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade Apollo Hospitals Enterprise Ltd and other Indian stock? Open your trading account with Lakshit Financial.

www.lakshitfinancial.com

ICICI Bank reported solid recovery in earnings led by sharp decline in provisions

chbatavia@gmail.com (Chirag Batavia) — Mon, 23 Mar 2020 13:41:00 GMT

ICICI Bank Ltd

 ICICI Bank reported solid recovery in earnings led by sharp decline in provisions. ICICI Bank posted 2.5X yoy earnings growth on the back of 23% yoy growth in operating profits and ~50% yoy decline in provisions.

 ICICI bank had positives 1) Loan growth steady (13% yoy) with NIM expansion 2) Fee income trends impressive( 17% YoY) 3) Asset quality showed improvement 4) RoEs touch 15%. However, there were slippages higher in retail and corporate loans.

 Slippages were elevated in 3QFY20 from both retail and corporate loans. Slippages from the KCC portfolio were at Rs3.1 bn (compared to Rs1.9 bn in 3QFY19). The company has seen no major signs of stress in any other retail segment. Corporate slippages of Rs24.7 bn (~4.2% of corporate loans) were mainly from outside the ‘BB and below’ book (~70% of corporate slippages) and were largely driven by stock broking account (fully provided during the quarter) and a South India-based industrial account.

 KIE Forecast - Net NPL to reduce to ~1% by FY22E with slippages of ~1.7% in FY21-22E. Loan growth to improve to ~17% by FY21-22E. CASA CAGR of ~13% over FY19-22E and stable CASA ratio of ~46% over FY20-22E. Calculated Net interest Margin (NIM) of ~3.6% over FY20-22E.

 KIE believes ICICI bank's RoE well positioned for ~15% + in medium term. They have a positive view and value the bank at Rs. 615 implying 2.4X book and 15X Dec FY21 EPS.

KIE gives a BUY call on ICICI Bank Ltd on 23/03/2020

CMP: Rs.346

Fair Value: Rs.615

Potential Upside: 61.7%

Market Cap: Rs.2229.07 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 27th January & 11th March, 2020 which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade ICICI Bank Ltd and other Indian stock? Open your account with Lakshit Financial.

www.lakshitfinancial.com

Cumulative subscriber base may increase to a substantial 453 mn. What next for Reliance Industries Ltd

chbatavia@gmail.com (Chirag Batavia) — Mon, 16 Mar 2020 09:44:00 GMT

Reliance Industries Ltd

 Q3FY20 Consolidated EBITDA increased 1% qoq to Rs. 223.9 bn, however, adjusted net income increased 5% qoq to Rs. 118.2 bn (EPS of Rs. 19.9), as lower EBITDA was offset by higher other income, lower finance cost and lower tax rate at 20.7%. RIL turned FCF positive for the first time since Q3FY13, with capex declining by 27% qoq to Rs. 140.2 bn (US$2 bn). Reported net debt declined by Rs. 41 bn, excluding fiber/tower liabilities, would have reduced by a similar amount to Rs. 2.52 tn (US$35 bn), assuming no change in working capital.

 RIL management indicated that petcoke gasification project is expected to be capitalized in Q4FY20. KIE reiterates BUY notwithstanding a bleak downstream outlook, as the company may benefit meaningfully from (1) plausible consolidation in telecom, (2) culmination of key transactions, (3) rising FCF trajectory and (4) sustained growth in the retail segment. Higher crude discounts, weaker Rupee and potential hike in ARPUs may mitigate lower downstream margins.

 KIE has modelled FY20-22E blended refining margins at US$9.1/bbl, US$11/bbl and US$10.8/bbl. KIE expects petchem volumes to increase modestly to 20.4 mn tons by FY21-22E from 20.1 mn tons in FY19, led by higher utilization of expansion projects. KIE has assumed cumulative subscriber base to increase to a substantial 453 mn by FY22E with blended ARPU of Rs184/month including FTTH customers. KIE assumptions result in Rs. 971 bn of revenues and Rs. 488 bn of EBITDA with 50% margins.

 KIE has revised FY20-22E EPS by ±1%, factoring in (1) lower petchem margins, (2) higher retail contribution, (3) slower FTTH rollout and (4) other minor changes. KIE's FV is Rs. 1,850, ascribing option value of Rs. 80 to consolidation in the telecom sector.

Note: The above is brief note on the company, based on the inputs of KIE research report dated 19th January & 11th March, 2020 which is available on our

 KIE give a BUY call on Relience Industries Ltd on 16th March 2020

CMP: Rs.1105

Fair Value: Rs.1850

Potential Upside: 60.9%

Market Cap: Rs.7080.64 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 19th January & 11th March, 2020 which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade Reliance Industries Ltd and other Indian stock? Open your account with Lakshit Financial.

www.lakshitfinancial.com

Bharti Airtel, ample evidence to suggest that the company is now operating in top gear. Where next for the share price?

chbatavia@gmail.com (Chirag Batavia) — Mon, 09 Mar 2020 21:16:00 GMT

Bharti Airtel Ltd

 3QFY20 Consolidated performance - Overall revenues of Rs 219.5 bn (+4% qoq, +9% yoy)came in 0.7% ahead of KIE’s estimate. EBITDA stood at Rs92.7 bn, (+4.6% qoq), broadly in line with KIE’s estimate. PBT level loss stood at Rs6.05 bn, lower than 2Q’s Rs9.4 bn, and broadly in line with KIE’s estimated PBT loss of Rs6.35 bn.

 From an execution standpoint, there is ample evidence to suggest that the company is now operating in top gear. Consistent leadership positions in various third-party network tests, traffic (voice as well as data) growth prints and LTE net adds acceleration all bear ample testimony.

 Management said that they are hopeful of a constructive engagement with the judiciary and the government on the AGR case dues. (Page 3, Para 1). Bharti remains committed to a partnership approach for its content offerings. They have tied up with global leaders to provide best in- class content on Airtel Xtreme.

 Management said that the current tariffs are at still unsustainably low levels (even post the December 2019 tariff hike). They highlighted that tariffs have also come down for the class of consumers who can afford to pay a much higher price for good quality service.

 KIE’s revised FV stands at Rs600/share; it values the India wireless business at 9.5X FY22EEBITDA, Africa wireless and BHIN stakes at their respective CMPs and the DTH business at7X EV/EBITDA.

 Sharp run up in the past year or so notwithstanding, Bharti remains a solid multi-year compounding play as long as the company and R-Jio resist the alpha-male tendencies in the forthcoming spectrum auctions..

 KIE on 9th March 2020 recommends to BUY Bharti Airtel Ltd

CMP: Rs.519

Fair Value: Rs.600

Potential Upside: 15.6%

Market Cap: Rs.2833.34 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 5th February, 2020 which is available on their website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade Bharti Airtel Ltd and other Indian stock? Open your account with Lakshit Financial.

www.lakshitfinancial.com

Kalpataru Power Transmission Ltd expects order inflow to ramp up

chbatavia@gmail.com (Chirag Batavia) — Mon, 02 Mar 2020 10:25:00 GMT

Kalpataru Power Transmission Ltd

 Kalpataru Power Transmission Ltd (KPTL) (standalone) reported an increase of 15%/13%/23% yoy in 3QFY20 revenues/EBITDA/PAT. Its subsidiary Shubham logistics continues to make PBT losses and the company expects it to turn PBT positive from 4QFY20 while other subsidiary JMC Projects revenues were led by a strong order book.

 Working capital has moved up during the quarter on incremental vendor support across all segments resulting in lower creditor days as well as build-up of receivables from some projects. This resulted in increasing net debt by Rs. 3 bn yoy to Rs. 9.96 bn. This is expected to come down from the monetization proceeds of power transmission assets during FY20/FY21. KIE expects the company to become debt free by FY22.

 KPTL expects order inflow to ramp up from GEC (Green Energy Corridor) phase-2 tendering, state utility boards, railways and international geographies especially African and Nordic countries. It expects to maintain a market share of 15-16% in the upcoming bids. KIE has revised its order inflow estimates and expects order inflow to grow by 10%/12% in FY21/FY22.

 KPTL has already sold its three power transmission assets during 1QFY20 to CLP India at 2X invested book. With a total investment of around Rs. 5.5-6 bn as equity on full completion of these projects, it will receive nearly Rs. 11.5-12 bn. During the quarter, KPTL completed the sale of its entire stake in Kalpataru Satpura Transco. Transaction for the remaining assets is expected to be completed between 4QFY20-2QFY21.

 JMC Projects is targeting to monetize two road projects in a year and expects to refinance debt of two projects having a larger tail period. Post refinancing, it expects to save Rs. 250-300 mn, which is going as a funding support to these projects.

 KIE has revised standalone FY2020/21/22 estimates by 3%/5%/8% on lower ordering estimates. Net of roll forward, it has revised fair value to Rs. 590. The key overhang for the stock would be the pledged shareholding by promoters and selling of shares to fund real estate projects. The company doesn’t expect pledging to go up from current levels in the near term.

KEI on 2nd March 2020 recommends a BUY

CMP: Rs. 332

Fair Value: Rs. 590

Potential Upside: 77.7%

Market Cap: Rs. 51.8 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 11th February , 2020 which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade Kalpataru Power Transmission Ltd and other Indian stock? Open your account with Lakshit Financial.

www.lakshitfinancial.com

Tata Steel Q3FY20 Exports more than doubled yoy to 0.85 mn tons with the decline in domestic demand

chbatavia@gmail.com (Chirag Batavia) — Mon, 17 Feb 2020 10:34:00 GMT

Tata Steel Ltd

 Tata Steel’s Q3FY20 adjusted consolidated EBITDA of Rs25 bn (-63% yoy, -32% qoq) excludes Rs10bn of FX gains and Rs1.5bn of reversal in wage cost. Standalone volumes at 3.43 mn tons were +15% yoy helped by higher exports (+183% yoy)- partially offset price pressure. Realization at Rs44,522/ton declined 11% qoq led by higher exports, reset of auto contracts and weaker domestic prices. Adjusted EBITDA at Rs9,650/ton was -37% yoy and -12% qoq lower realizations.

 In Q3FY20 Exports more than doubled yoy to 0.85 mn tons with the decline in domestic demand, forming 18% of the total volumes (7% in 3QFY19). Exports have increased by more than 50% in 9MFY20 on a yoy basis. Steel prices bottomed out in October 2019 and have since increased 12% in the past three months following international prices. The company maintained its guidance on volumes at 13.6 mn tons in FY20 due to ramp up of Bhushan steel and Usha Martin plants.

 Europe business: EBITDA/ton declined to US$57/ton in 3QFY20 (2QFY20: US$10/ton) led by sharp spread contraction with £75/ton qoq lower steel prices. Renegotiation of long-term contracts (30-35% of volume) from CY20 would be a headwind in coming quarters. However, partial recovery in steel spreads should help achieve EBITDA breakeven in 4QFY20E. Management expects cost reduction initiatives to start yielding results gradually over the next 3-4 quarters. KIE expects Europe to achieve cash breakeven in FY22E on a full year basis.

 The company guided that it shall prioritize commissioning of the CRM mill complex and 6 mtpa pellet plant for completion 2HFY21E and take up capex for KPO2 expansion post this completion after studying the market conditions at that time. KIE expects the company’s domestic steel margins to recover by ~Rs3,000/ton qoq in 4QFY20E and forecast EBITDA/ton of Rs12,150/ton in FY21E versus Rs11,440/ton in FY20E.

 The company’s net debt declined by Rs23 bn to Rs1,046 bn primarily through release of working capital through liquidation of high cost inventory during the quarter. The company has cash reserves of Rs52 bn. KIE expects Leverage ratios will improve with recovery in EBITDA aided by capacity ramp ups and increasing cost efficiencies. KIE has a fair value of Rs560, valuing India business at 6x and Europe business at 4x September FY21E EBITDA.

 KIE on 17th Feb 2020 recommends a BUY on Tata Steel ltd

CMP: Rs.435

Fair Value: Rs.560

Potential Upside: 28.7%

Market Cap: Rs.493.12 bn

Time Frame: 12 months

Note: The above is brief note on the company, based on the inputs of KIE research report dated 7th February, 2020 which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.

Disclaimer: http://bit.ly/2n5AxIE

Looking to trade Tata Steel Ltd and other Indian stock? Open your account with Lakshit Financial.