Fundamental Analysis of Stocks

Buy : 1936
Among the leading players in the Indian jewellery market with strong brand recognition in Tamil Nadu. Likely to benefit from consumer preferences towards branded jewelry. Steady growth in topline, thereby increasing profits and cash accruals from business.

Exit : 2039
Unfavorable risk to reward.

Buy : 1487
It is well positioned to capitalize on drug delivery devices particularly in the self-injection market. Utilizing funds raised to expand its Pharmaceuticals division is likely to support its topline growth. Expanding its global reach projects a dominant market share in the generic Semaglutide market.

Exit : 2524
Unfavorable risk to reward.

Buy : 2394
It is one of the leading PET Waste Recycling companies in India. The demand for rPET granules is strong and expected to boost earnings. Operating leverage and benign raw material prices likely to support margin.

Exit : 1586
Unfavorable risk to reward.

Exit : 3352
Unfavorable risk to reward.

Buy : 1303
Well positioned to benefit from the growth of the Indian mutual fund industry. Expanding its distribution network to be accessible to more investors. Company is also investing in technology to improve its operation and customer service.

Buy : 2385
It is among the largest two-wheeler manufacturers in India. Diversified product mix and new launches in EV is likely to support volume. Strategic focus on premium segment and electric vehicles is expected to support margin.

Exit : 432
Unfavorable risk to reward.

Buy : 3701
It is among the largest players in the premium paint market in India. Focus on underserved market is likely to contribute to its growth. Launch of new product in premium segment will continue to support margin.

Buy : 3000
It is among India’s leading consumer healthcare brands in diagnostic services. Strategic expansion into Tier-3 and Tier-4 Market is likely to support growth. Growth in bundled test packages anticipated to support margin.

Exit : 1348
Unfavorable risk to reward.

Exit : 683
Unfavorable risk to reward.

Buy : 1844
It is among the leading power utility companies in India. Positioned strategically to meet surging energy needs, while maintaining its focus on renewable resources. Focused on hybrid projects within the renewable energy space which offers potential for higher returns

Exit : 2460
Unfavorable risk to reward.

Buy : 2954
Strong revenue visibility, driven by the growing demand in the IT and BPM sectors.Strategizing on analytics & automation and productized services to improve mix. Global footprint and diverse customer base offer significant growth potential

Exit : 6687
Unfavorable risk to reward.

Buy : 4711
Among the fastest growing companies in IT Sector. Growth momentum is likely to continue backed by robust deal wins and strong addition of capabilities. Profitability is expected to improve led by strong demand and lower attrition.

Exit : 1189
Unfaborable risk to reward.

Exit : 1785
Unfaborable risk to reward.

Buy : 1646
MGL is among the prominent natural gas distributor in India. It has a vast network of pipelines and CNG stations to cater to the increased demand for clean and efficient fuel.Government’s plan to invest in the natural gas sector until FY30 is likely to provide a tailwind.

Buy : 1426
It is one of the leading manufacturers of diesel engines operating primarily in the B2B segment. Improving mix led by better trends in exports should support profitability. It is also likely to benefit from an increase in spending on infrastructure development.

Exit : 164
Unfaborable risk to reward.

Buy : 445
JLL is among the leading FMCG companies in India. Focusing on expanding distribution networks & broadening product portfolio is likely to support revenue. Growth in premium products and favourable mix is expected to support margin.

Exit : 2016
Unfavorable risk to reward at current level.

Exit : 2554
Unfavorable risk to reward at current level.

Buy : 2985
It is among the largest players in the consumer staples sector. It has a diversified product portfolio with strong branding and global presence. It is well-positioned to capitalize on rising awareness and spending in the oral care and personal care segment.

Buy : 309
NCC is among the well-established players in the Indian construction sector. It has a well diversified portfolio across sectors including buildings, roads, irrigation, and power. Government focus on infrastructure development and transportation is likely to support revenue.

Exit : 1187
Unfaborable risk to reward.

Buy : 1739
JBCPL is among the leading pharmaceutical companies in India. Strong distribution network & diversified product portfolio are expected to drive revenue. Focus on export and better product mix likely to support future margin.

Exit : 4115
Unfaborable risk to reward.

Exit : 3685
Unfavorable risk to reward at current level.

Buy : 268
TTPL is among the strongest players in the Indian plastic packaging industry. It has a well-diversified product portfolio supporting industrial and consumer packaging solutions. Increasing demand for packaged goods and e-commerce activity is likely to support the topline.

Buy : 6798
Company has strong brand presence and a wide range of products.Positive momentum in the domestic business & contribution from exports is likely to support margin. Strong outlook led by robust demand for wires and cables from the construction, power and telecom sectors.

Exit : 1414
Unfavorable risk to reward at current level.

Buy : 4439
Vesuvius India leverages Global expertise along with a strong domestic presence. It offers cutting-edge products for industries like steel and glass. Capex expansion is likely to support its topline growth in coming quarters.

Exit : 3245
Unfavorable risk to reward at current level.

Buy : 519
It is among the leading manufacturers of bioenergy fields. Government focus on promoting the bio-energy sector is likely to support revenue. Margins are likely to improve due to better mix supported by newer contracts and export orders.

Exit : 3501
Unfavorable risk to reward at current level.

Buy : 5959
NRL is among the leading brand in pharma manufacturing API industry. Rising demand for generic drugs and need for medication to support revenue growth. Strong demand likely to improve capacity utilisation and support margins.

Exit : 153
Unfavorable risk to reward at current level.

Exit : 3774
Unfavorable risk to reward at current level.

Buy : 2593
It is among the leading FMCG players with a strong hold in dairy products and cooking aids. Strategic initiative lIke higher brand spending & cost rationalization likely to support margin. Improving rural penetration and expansion likely to support further growth.

Exit : 874
Unfavorable risk to reward at current level.

Buy : 2688
It is among the leading manufacturers of diesel and natural gas engines in India. Rising importance of alternative fuels (natural gas) provides strong growth avenues . It is also likely to benefit from an increase in spending on infrastructure development.

Exit : 962
Poor risk to reward ratio at current level.

Buy : 175
IOCL is among the top players in India’s oil refining and petroleum sector. Strong distribution network across product verticals to support growing demand. Government support is likely to aid IOCL’s expansion plans.

Exit : 799
Poor risk to reward ratio at current level.

Buy : 3650
It is among India’s most respected lifestyle companies in watches, jewellery & eyewear categories. Strong operational efficiency and asset light model to support profitability. Focus on the expanding wedding jewelry segment offers growth potential over the medium-term.

EXIT : 7392
High risk to reward at current price level.

Buy : 1948
Company is among one of the leading players in the PVC Pipes and fitting industry. New capacity expansion to drive revenue growth in the medium term. Superior product mix & extensive distribution network will help capitalise on the robust demand.

EXIT : 2460
High risk to reward at current price level.

Buy : 1003
It is among the largest cable manufacturers in India with strong brand recall. Healthy construction activities are likely to drive the topline growth. Stabilized input costs should also support profitability.

EXIT: 474
Poor risk to reward ratio at current level.

Buy : 6367.25
Company is among the largest home grown consumer durables manufacturers in India. It has well diversified product portfolio mix, includes consumer electronics, smartphones,etc. It has vertically integrated manufacturing, enabling superior cost control and quality.

EXIT: 7710
Poor risk to reward ratio at current level.

BUY : 1022
It is among the leading power utility companies in India. It is positioned to meet surging energy needs, while maintaining its focus on renewable resources. It focuses on hybrid projects within renewable energy space which offers potential for higher return.

Buy: 536
It is among the leading manufacturers of bioenergy fields. Expected increase in demand of low carbon intensity ethanol is likely to support revenue in coming quarters. Margins are likely to improve on back on execution of new contacts and export orders.

EXIT: 8300
High Risk to reward ratio at current level.

Buy: 8340
Company is among the key players in India’s specialty chemicals. As a part of global giant ALTANA, it has access to a global network of
customers and suppliers. It is well-positioned to capitalize on the booming infra and electrical equipment sectors in India.

EXIT: 4950
High risk to reward at current level.

EXIT: 14130
Currently trading at high risk to reward ratio.

Buy: 8412
Tata Elxsi is a leading global design and technology services company. It is well positioned to capture the opportunities owing to deep domain knowledge & client base. Operating margins likely to improve owing to cost optimisation and a lower attrition rate.

BUY: 407
Nippon is one of the fastest-growing AMCs in B-30 cities. Building on strong Q2 performance, the company is poised for continued growth in the coming quarter. Lower penetration of MF in India to drive MF AUM growth.

BUY: 143
Capacity expansion and new product launch is likely to support its top line growth. Increasing OTC stores will enhance branding and increase market presence for the company. Company is expected to experience substantial growth due to rising export prospects.

EXIT: 556
Q2FY24 profit fell 6.96% YoY to Rs 77.97 Crores. Poor risk to reward ratio at current level.

BUY: 2935
Leading position in the compressor market with strong operational performance. Company’s focus on cost control is likely to improve overall margin & profitability for the company. Increasing domestic demand for air compressors is expected to support revenue growth momentum.

EXIT: 5428
Fed has maintained status quo on rate hike, could result in consolidation in IT stocks. High risk to reward at current price.

EXIT: 2028
Q2 profit before tax fell 8.2% YoY hit by a 19.8% jump in expenses. Poor risk to reward at current level.

EXIT: 2465
Muted performance in past few months. Unfavorable risk to reward at current level.

BUY: 3385
Company is among the largest Hi-Chrome casting producer in the world. Strong demand in the cement and mining sectors likely to support top line growth. Focus on high value products likely to support margins.

BUY: 5080
Company has strong brand presence and a wide range of products. Growth is expected to be further supported by new product launches across price points. Strong outlook led by robust demand for wires and cables from the construction, power and telecom sectors.

Exit: 2390
Muted performance for past few months. Unfavorable risk to reward at current level.

EXIT 3414
Stock likely to remain under selling pressure for some time. Unfavorable risk to reward at current level.

BUY: 1108
NH is a well-established healthcare service provider with a wide network of hospitals. Growth is likely to be supported by margin improvement and business expansion. Strategic initiatives and focussed capital expenditures likely to support growth in the medium-term.

BUY: 5544
Established brand driven by strong demand in service and IT segment. Company is expanding its offering in the digital space, and would likely support top line growth. Strong crosssell/up-sell opportunities & ability to participate in larger deals post-merger.

Exit: 1900
Stock likely to continue to underperform due to unfavourable risk-reward. Muted performance in last quarter, double digit growth seems optimistic at this point.

EXIT: 443
Stock likely to continue to underperform due to unfavourable risk-reward. Slump in quarterly Revenue by 7.2% YoY to Rs 17,886.8 Crores.

CMP: 2164
One of the leading FMCG players in the tobacco industry with multiple established brands. Strong distribution network and international partnerships to support growth. Growing export markets to further support sales and profitability.

EXIT: 390
Demand slowdown in europe likely to impact export revenue. Unfavorable risk- reward at current level.

CMP: 13114
One of the leading and preferred supplier in grinding machines and tooling industry. Launch of new products should likely support growth and profitability. Diversification into new markets and businesses is incrementally positive.

Exit: 706
Stock likely to underperform in near term. Unfavorable risk reward at current trend.

Exit: 2413
Company shares fell after Q1FY24 results. Stock likely to underperforme due to unfavourable risk-reward. Promoter decreased their holding in recent quarter.

Exit: 3022
Unfavorable risk reward at current price. Avaliable at high valuation as compared to its peers.

Buy: 514
KOIL has a strong brand portfolio and wide distribution network to support its topline growth. It is well-positioned to benefit from the growth of the Indian lubricants market. Current valuations are supportive and provide favourable risk-reward.

Buy: 2848
It is among the largest players in premium paint market in India. Rising disposable incomes and increasing urbanization should likely push growth. Launch of new products in the premium segment should continue to support margin.

Buy: 393
Company is among the market leaders in tyre and rubber segment. It is well-positioned to benefit from the growth of the Indian economy & european automotive market. Continued focus on profitability and capital efficiency is likely to support its earnings.

BUY: 3420
Established brand in luggage and travel accessories in India. Strong demand in travel and tourism accessories likely to support revenue growth. Increased capacity utilization likely to support growth and margins. New launches in the premium & mid-range segment to improve product mix and support margins further.

EXIT: 1702
For q1fy24, the company’s revenue and profit growth has been relatively flat. With recent financial numbers, double digit growth appears optimistic. Stock likely to continue at current range giving unfavourable risk-reward.

BUY: 3835
PIIND is the leading maufacture in agrochemical and speciality chemical sector. Companys recent strategic acquisitions will support future growth. Focussed R&D initiatives to support strong pipeline of new products. Margins are expected to improve in domestic segment with new value-added branded products

EXIT: 5101
Stock likely to continue to underperform due to unfavourable risk-reward. Muted performance in past 2 quarters. Double-digit growth targets appear optimistic at this point. Impending wage hikes and limited utilisation scope may push margin downward.

EXIT: 4606
Britannia Profit Falls Short of Estimates Despite Strong Revenue Growth. Local competition intensified which forced price correction in some of its topline products. Company may face some challenges in revenue growth in the coming quarter.

CMP: 771
UTI AMC to leverage its strong brand name and track record to achieve higher growth. It is well-positioned to benefit from sustained growth in the Indian MF industry. Strong distribution network likely to improve accessibility and support growth. Investments in technology and focus on customer service are additional positives.

BUY: 2860
Strong demand outlook in the Indian industrial markets to support growth. Profitability likely to improve led by improving demand and cost control initiatives. Recent acquisition in compressors and vacuum pumps to further support presence in global markets.

EXIT: 2261.75
Decline in net Cashflow: Company is not able to generate sufficient cash flow. FII/FPI have decreased holdings from 27.10% to 23.91% in Mar 2023 qtr. Decrease in profit margin yoy.

BUY: 763
Blue Star is well-positioned to benefit from the ongoing growth in Indian air conditioning market. Company focus on cost control will likely to increase its margin in coming year. Gaining market share by expending distribution network and increased focus in tier 2 and 3 cities.

EXIT: 520
Stock has moved to ~28% in last 3 months. Companies not able to generate net cash flow. Promoter has decreased shareholding in recent quarter.

BUY: 870
The company is well positioned to benefit from increased govt spending on infra projects. Presence in diversified segments and better order mix likely to provide support margins. Hybrid annuity model monetization across 4 SPVs, pave the way for capital infusion in future.

EXIT: 745
Promoter has decreased there holding in recent quarters. Stock price grew by ~33% in less last 3 months. ROA declining in the last 2 years

Buy: 7696
Cera Sanitaryware is a strong player in the Indian sanitaryware market. Increased urbanization, rising disposable income and govt focus on sanitation likely to support revenue. Better product mix coupled with strong demand likely to support profitability.

BUY: 468
It is the 2nd largest forging company poised to benefit from increased demand in automotive and forging equipment. Improved domestic infra capex will drive demand for CV which will boost revenue for the company. Timely capex, diversified product mix & strategic acquisitions are expected to maintain growth and support profitability.

EXIT: 1676
Decrease in OPM in recent quarter. Promoter decreased shareholding .Stock has already given ~24% return in past 1 year.

Buy: 4785
Demand outlook is expected to be robust led by strong deal wins. Profitability is expected to improve led by strong demand and lower attrition. Adoption of new & emerging technologies alongside geographic expension expected to push the revenue.

Buy: 2332.2
Company’s demand outlook remains robust across its user industries. Profitability is expected to be supported by improving margins and demand growth. Improving work-capital cycle to further support cash flows and improve net cash position.

EXIT : 423
Promoters increased pledged shares QoQ. Degrowth in Revenue and Profit. Decline in Net Profit with falling Profit Margin (QoQ). It has given a negative ~15% return in past 1 year.

EXIT : 193
Decline in Net Profit with falling Profit Margin (QoQ). Stock is at its 52week high and expensive valuation. Slowdown in consumer demand expected to remain in short term. Declining Net Cash Flow : Companies not able to generate net cash.

EXIT : 1167
Company is trading around the target range. Stock has performed well and given a return of ~18% return in past 1 year.

Buy: 3733
CRISIL is a leading provider of ratings, research, and risk and policy advisory services in India. The company has a diversified revenue stream, with a focus on high-growth sectors. CRISIL is well-positioned to benefit from India’s growing economy and increasing demand for credit rating and research.

Buy: 3336.35
TII is among the leading manufacturers of steel tubes and pipes. Company is expected to see strong demand in the automotive, construction and oil and gas sectors. TII is increasing its capital expenditure on large diameter tubes to benefit from the government’s proposed infra push.

Buy: 1929.3
Astral is a strong player in manufacturing of plastic pipes, adhesives and other plastic products. Demand is expected to be robust, led by lower PVC prices. Profitability to be supported by strong margins of ~16-18% in the specialised valves segment.

Exit: 986.55
Decline in Net Profit (QoQ). Degrowth in Revenue, Profits and Operating Profit Margin in recent results (QoQ). MFs decreased their shareholding last quarter.

CMP: 22850.25
Leading FMCG Player with strong hold in dairy product and cooking aids(Maggie). Potential for further gross margin expansion on account of easing input cost pressure. Strong brand franchies to support pricing and profitability thereby supporting growth.

CMP: 450.50
Dominant player in its traditional business of cigarettes. Margin improvement, expansion of product portfolio and digitalisation to support the company’s growth. Profitability to be supported by strong margin in FMCG segment. Diversified business with further growth potential led by entry in new segments.

CMP: 4992.55
Healthy order book built up to support sustained growth. Strong outlook with management expectations of double-digit revenue growth in FY24E. Potential revenue and cost synergies post integration of LTI & Mindtree.

Book Profit: Rs 320
We Had Recommended SUBSCRIBE On BIkaji Foods International Ltd IPO. The Stock Is Up ~6.7% From The Higher End Of The Price Band. At CMP Of Rs 320, the Stock Is Trading At 105x FY22 PE Which Leaves Little Room For Upside. Hence, We Recommend To Book Profits.

Book Profit: Rs 295
We Had Recommended SUBSCRIBE On DCX Systems IPO. The Stock Is Up ~40% From The Higher End Of The Price Band. At CMP Of Rs 295, The Stock Is Trading At 43.7x FY22 PE Which Leaves Little Room For Upside. Hence, We Recommend To Book Profits.

Book Profit: Rs 89.4
We Had Recommended SUBSCRIBE On Electronics Mart India Limited IPO. The Stock Is Up ~52% From The Higher End Of The Price Band of 59. It is at CMP Of Rs 89.40, Hence, We Recommend To Book Profits.

Book Profit: Rs472
We Had Recommended SUBSCRIBE On Harsha Engineers International IPO. The Stock Is Up ~43% From The Higher End Of The Price Band. At CMP Of Rs 472, The Stock Is Trading At 46.9x FY22 PE Which Leaves Little Room For Upside. Hence, We Recommend To Book Profits.

Book Profit: Rs468
We Had Recommended SUBSCRIBE On Dreamfolks Services IPO. The Stock Is Up ~44% From The Higher End Of The Price Band. At CMP Of Rs 468, The Stock Is Trading At 150.46x FY22 PE Which Leaves Little Room For Upside. Hence, We Recommend To Book Profits.

CMP: 165.40
Ashok Leyland has moved up by 42% since it entered into the portfolio. We are positive about the CV upcycle story playing out but the recent up-move is pricing in the uptick in volumes and margin recovery. Hence, we are recommending EXIT from the stock at current levels.

Book Profit: Rs 298
We Had Recommended NEUTRAL Rating On Campus Activewear Ltd. The Stock Price Is up ~2.1% From Its IPO Issue Price Which Is As Per Our Expectations. Hence, We Are Closing Our Call On On Campus Activewear Ltd IPO.

CMP: 498
Marico is one of the major FMCG companies present in hair oil, edible oil, foods & personal care segment. Major brands include Parachute, Saffola, Nihar, Hair & Care, Set Wet, Livon & Beardo. Marico’s products have strong brand recall coupled with an extensive distribution reach of more than 5mn outlets and direct reach of ~1 million outlets. Parachut flagship brand gained market share by 170 bps in FY22 & expected to performance better going ahead. In the medium term, the company aspires to grow revenue at 13-15% with 8-10% volume growth. Marico has a strong balance sheet along with free cash flow and higher profitability. We expect Marico to report healthy bottom-line CAGR of ~11% over FY2022-24E due to better volume growth on the back of strong brand, wide distribution network.

Book Profit: Rs250
We Had Recommended NEUTRAL Rating On EMudhra Ltd IPO. The Stock Price Is Down ~2% From Its IPO Issue Price Which Is As Per Our Expectations. Hence, We Are Closing Our Call On On EMudhra Ltd IPO.s.

Book Profit: 755
We Had Recommended SUBSCRIBE On Aether Industries IPO. The Stock Is Up ~18% From The Higher End Of The Price Band. At CMP Of Rs755, The Stock Is Trading At 88.7x TTM PE Which Leaves Little Room For Upside. Hence, We Recommend To Book Profits.

Book Profit: 595
We Had Recommended NEUTRAL Rating On Prudent Corporate Advisory Services Ltd IPO. The Stock Price is down ~6% From Its IPO Issue Price Which Is As Per Our Expectations. Hence, We Are Closing Our Call On Prudent Corporate Advisory Services Ltd IPO.

Book Profit: 42.6
We Had Recommended NEUTRAL Rating On Paradeep Phosphates Ltd IPO. The Stock Price is up ~1% From Its IPO Issue Price Which Is As Per Our Expectations. Hence, We Are Closing Our Call On Paradeep Phosphates Ltd IPO.

Book Profit: `780
We Had Recommended NEUTRAL Rating On Ethos Ltd IPO. The Stock Price is down ~11% From Its IPO Issue Price Which Is As Per Our Expectations. Hence, We Are Closing Our Call Ethos Ltd IPO.

Book Profit: `508
We suggest investors to book profit in Delhivery IPO at ₹508, currently company is trading at EV to sales at 4.9x and price to book value of 5.3x looking at expensive valuation we suggest investors to book profit in delhivery IPO. We have given a neutral rating to Delhivery IPO.

Book Profit: `492
At 492 IPO is priced at Price to Earning 27.5 times and EV/EBITDA of 12.4 times based on 9MFY22 adjusted numbers. Looking at the expensive valuations we have given a neutral call on the Rainbow Children’s Medicare Limited IPO. At this level we suggest investors to avoid doing fresh buying in the stock.

CMP: 813
Carborundum Uni. has a Russian subsidiary with FY21 sales of Rs683cr and contributes ~17% to the overall stock price. Given the impact of various sanctions that are being imposed on Russia and lack of clarity on the overall situation, we recommend exiting Carborundum Uni. at the current juncture.

Book Profit: `867

We Had Recommended NEUTRAL Rating On Vedant Fashions Ltd IPO. The Stock Price Has Flat ~0.1% From Its IPO Issue Price Which Is As Per Our Expectations. Hence, We Are Closing Our Call Vedant Fashions Ltd IPO.

CMP: 942

SIL’s 3QFY22 results were below expectation on the bottom-line front due to increase in raw material cost and expected to remain for a few quarters. Hence recommend exit from stock.

CMP: 180

Devyani International Ltd. (DIL) is Yum! Brands’ largest franchisee in India, with more than 800 stores including KFC, Pizza Hut and Costa Coffee. Currently, DIL operates 339 KFC stores, 391 Pizza Hut stores, 50 Costa Coffee stores in India and balance stores from other brands and from international locations. QSR industry is expected to grow ~23% CAGR over FY20-25 which would benefit the player like DIL. Going ahead, We expect DIL would add 200 stores per annum (at least 3-4 year) which would drive strong revenue growth. Lower capex (shifted its strategy to smaller & delivery-focused stores) and improving store-level economics would boost the operating margin going ahead. Going forward, we expect DIL to report strong top-line growth & improvement in operating on the back of aggressive store addition, improving store unit economics and strong brand.

Book Profit: `250

We had recommended SUBSCRIBE On Adani Wilmar IPO. The Stock is up ~9% from the higher end of the price band. At CMP Of Rs250, the stock is trading at 41x TTM P/E which leaves little room for upside. Hence, we recommend to book profits.

Book Profit: `167.45
We had recommended NEUTRAL rating on AGS Transact Ltd. IPO. The IPO as expected had a tepid listing and is down by 4.3% from the IPO price of Rs. 175. At the CMP of Rs. 167.45, the stock is trading at ~37.5x its FY21 EPS which is at a premium to CMS Infosystems. We are hence closing our NEUTRAL call on AGS Transact

Book Profit at CMP: `735
We had recommended SUBSCRIBE as Tarsons has a recognized brand and diversified portfolio which would aid in capitalizing on a shift from glassware to plasticware, growth for end-users and, continued gains for domestic manufacturers. Post the recovery in stock price after the listing, the stock is now trading at 23x Dec-23 EPS. We recommend short-term investors to book profits while long-term investors may remain invested as Tarsons has good ROE aided by good sustainable margins which can improve with the growing scale of operations.

Book Profit: `507.6
We recommended to Subscribe to the IPO based on Data Patterns’ strong relationship with Defence PSU and other similar defense and Space related entities and its growing order book due to these relationships. Given the good listing, the stock now trades at ~50x its TTM EPS, and hence, we recommend booking profits.

Book Profit: `1100
We recommend to book profit in Medplus Health Services Limited IPO. Based on H1FY2022 numbers, the company is trading at EV/EBITDA of 37 times and price to sale of 3.4 times. We believe that all the short term positive has been priced in. Hence we recommend to book profit in Medplus Health Services Limited IPO at ₹1100, we have given a subscribe rating to the IPO.

Book Profit: `465
We Had Recommended NEUTRAL Rating On Metro Brands Ltd IPO. The Stock Has Down ~7% From Its IPO Issue Price Which Is As Per Our Expectations. Hence, We Are Closing Our Call Metro Brands Ltd IPO.

Book Profit: `1363
We had recommended SUBSCRIBE rating on CE Infostems Ltd. (MapmyIndia) Ltd. IPO. The IPO has received a stellar opening and is currently trading at ~120x its FY21 EPS of Rs. 11.4 which is expensive. Hence, we recommend that investors to book profits at current levels.

CMP: `1159
HCL Tech (HCLT) is amongst the top four IT services companies based out of India and provides a vast gamut of services like ADM, Enterprise solutions, Infrastructure management services etc. HCLT reported revenue growth of 3.5% in constant currency (CC) in Q2FY22 which was below street estimates. The disappointment on the revenue front was on account of decline of 8% QoQ in platform & product revenues due to delay in deal signings. However It services witnessed robust growth of 5.2% QoQ CC. New deal TCV at USD 2.3bn was up by 38% YoY and included 4 large deals. Strong deal wins should help drive growth in the services business which should make up for any shortfall in the product business due to the delays in deal signing. At CMP the stock is trading at a P/E multiple of 21.5xFY23 EPS estimate which is at a significant discount to the other large cap IT companies like Infosys and TCS and offers tremendous value at current levels given market leader status in Infrastructure management. We recommend a BUY on HCT Tech with a price target of Rs. 1363.

Book Profit: `353
We recommend NEUTRAL on the RateGain IPO as we anticipated minimal chances of listing gains given that the issue was rightly priced. The stock has opened down ~20% from its IPO issue price which is as per our expectations. Hence, we are closing our call for RateGain Travel Technologies IPO.

EXIT: `47.25
We are exiting from LemonTree given the threat from the third Covid wave due to the omicron strain which is likely to have an adverse impact on the Hotel industry. While the impact of the third Covid wave will be limited on the Hospitality sector we believe that there will be a slowdown in domestic travel while resumption of international travel will get deferred by one quarter thus delaying the recovery in room rates for the Hotel Industry. Therefore we expect the recovery in the hotels sector will be pushed back to FY2023 from 2HFY2022 which will limit upsides from current levels.

Book Profit: `582
We had recommended SUBSCRIBE rating on Anand rathi Wealth Ltd. IPO. The stock is trading at a 6% premium to the issue price and hence we recommend investors to book profits in the stok at current levls.

Book Profit: `747.25
We recommended to Subscribe to the IPO based on Tega’s good operational performance, its competitive positioning, and traction in newly launched DynaPrime. Moreover, the valuations at ~25x FY21 Adj. P/E were also fair but given the strong listing, the stock now trades at ~43x FY21 EPS, and hence we recommend booking profits.

EXIT: `2066
We recommend to exit Shriram City Union Finance (SCUF) given the potential adverse impact on asset quality and delay in credit growth for the company due to the threat of a third wave on account of the Omicron Strain. We expect credit growth recovery will be pushed to FY2023 from earlier expected 2HFY2022 while there could be 50-75bps deterioration in GNPA due to the third wave. While our longer term growth thesis remains intact we believe that near term asset quality pressure would act as an overhang on the stock.

Book Profit: `1226
We had recommended SUBSCRIBE On the Go Fashion (India) IPO. The Stock is up ~78% from the higher end of the price band. At CMP Of Rs1,226, the stock is trading at 52x EV/EBITDA (FY20) which leaves little room for upside. Hence, we recommend to book profits.

Book Profit: `492.75
We had rated the IPO SUBSCRIBE citing the tailwinds for the overall consumer analytics space and Latent View’s positioning as a niche data & analytics solutions company. The stock has seen solid listing gains of ~150% and is now trading at rich valuations of ~66x Dec 23 EPS. Hence, we recommend to book profits.

Book Profit: `2240
We had recommended SUBSCRIBE rating on FSN E-Commerce Ventures Ltd. (Nykaa) Ltd. IPO. The IPO has received a stellar opening and is currently trading at ~43x its FY21 revenues which is expensive. Hence, we recommend that short-term investors that were looking for listing gains can exit the stock while long-term investors can book partial profits.

Book Profit: `517
We had recommended NEUTRAL rating on SJS Enterprises IPO citing factors like fair valuations and its moderate scale of operations among others. The stock has opened down 3.6% from its IPO issue price which is as per our expectations. Hence, we are closing our call for SJS Enterprises IPO.

EXIT: `2074
Considering that the Q2FY22 came in below expectation owing to supply chain issues and unprecedented cost inflation, we recommend exit from stock.

EXIT: `1076
The stock has given ~150% return since its entry into the portfolio and we believe that factors like improvement in outlook and earnings as well as multiple expansion are priced at current levels.

CMP: `1220.4
Ramkrishna Forgings (RKFL), a leading forging player in India and among a select few having heavy press stands to benefit from a favorable demand outlook for the Medium & Heavy Commercial Vehicle (M&HCV) industry in domestic and export markets in the near term. The company has phased out its CAPEX over the past few years during which it was impacted by industry slowdown in certain periods. With the end to the CAPEX cycle, the favorable outlook in the medium term, and sufficient capacity in place, we believe RKFL volumes would be able to post volume CAGR of 29% over FY21-23E. Aided by strong volumes and profitability as well as balance sheet deleveraging, we expect the RKFL’s earnings to jump 10-12x in FY23E-24E from FY21 levels.

CMP: `2299
Whirlpool of India (WIL) is engaged in manufacturing and selling of Refrigerators, Washing Machines, Air Conditioners, Microwave Ovens, built in and Small appliances and caters to both domestic and international markets. WIL’s product portfolios presence in the lower penetration category, which would lead to higher growth. Further, increasing focus on emerging categories like water purifier, AC and Kitchen Hoods & Hobs and feeling product portfolio gap by launching products. Going forward, we expect healthy profitability on the back of a strong brand, wide distribution network, capacity expansion & strengthening product portfolio.

EXIT: `5950
At current prices L&T Infotech is trading at P/E multiple of 40xFY23E which is significantly above its historical average P/E multiple. Therefore given limited upides from current levels we are recommending to EXIT from the stock.

Book Profit: `820
We had recommended SUBSCRIBE Rating on Sansera Engineering IPO. The company has outperformed the overall auto component industry over the last two years and the trend of increasing wallet share, recovery in OEM production volumes, and vendor consolidation augurs well for Sansera in the long run. The stock is up 10.6% from its IPO price and at CMP, the stock trades at ~20x its Sep23 EPS. Hence, we recommend that short-term investors that were looking for listing gains can exit the stock while long-term investors can book partial profits.

EXIT: `1499
We recommend to exit the stock after the recent up-move as upside seems limited from current level.

BUY: `43.25
Lemon Tree Hotels (LTH) is India’s largest chain in the mid-priced hotels sector and third largest overall. This award-winning Indian hotel chain opened its first hotel with 49 rooms in May 2004 and operates 87 hotels in 54 destinations with ~8,500 rooms. Company reported a 55.7% QoQ degrowth in revenues for Q1FY22 to Rs. 42.2 Cr. due to sharp drop in occupancy levels to 29.6% from 55.8% in Q4FY21 while ARR declined by 1% QoQ. This led to a sharp drop of 58% in RevPAR sequentially. As a result the company posted an EBIDTA loss of 0.1 Cr. for the quarter and a net loss of Rs. 59.8 Cr. for the quarter. While occupancy levels dropped to 21.5% in April due to the lockdowns it had improved to 34.6% in June. We expect occupancy levels to revert to Q4FY21 levels in the current quarter and improve further in 2HFY22 thus driving revenue and profitability back to pre Covid levels in FY23.

EXIT: `2143
Considering the impact on demand in East owing to seasonality (heavy rains and extended monsoon), sand shortages and delayed government spends, the continued increase in coal and pet coke price will be difficult to pass on. Hence, we are recommending EXIT from the stock at current levels.

BUY: `729
Ready to move inventory and under construction inventory levels have moved down to its lowest levels. Customers are now having preference towards the branded players like Sobha Developers. We have seen a strong consolidation among listed players in India, post Demon, RERA, IL&FS crisis. Listed players have gained market share in new launches in the last 2-3 years, we expect this to continue in coming quarters.

BUY: `551
We recommend to book profit in Vijay Diagnostic Centre Limited at 551. Company is trading at price to earning of 65 times and EV/EBITDA OF 31 times based on FY2021 numbers which is on higher side as compared to its peers. Looking at higher valuations and limited growth potential in its key geographic we recommend to book profit.

BUY: `3243
Amber Enterprises India Ltd. (Amber) is the market leader in the room air conditioners (RAC) outsourced manufacturing space in India. Amber would outperform the industry due to dominant position in Room AC contract manufacturer, increase in share of business in existing customers and new client additions. Amber plans to increase revenues from components (by increasing product offerings, catering to newer geographies, adding new clients) and exports (already started in the Middle east). In the past 2-3 year, Amber has acquired companies like IL JIN Electronics, Ever and Sidwal Refrigeration Industries, which would help in backward integration and also help the company to foray in different segments like railway, metro and defense. Going forward, we expect healthy profitability on back of foray into the Commercial AC segment, entry into export markets, participation in the PLI scheme.

EXIT: `484
We are exiting Crompton Consumer as the stock is trading at P/E multiple of 42xFY23 earnings at current levels which is slightly above historical average. We believe that the current multiples fully capture the growth potential which will limit upsides in near term. Hence we recommend to EXIT the stock at current levels.

BUY: `3420
PI Industries is a leading player in providing Custom synthesis and manufacturing solutions (CSM) to global agrochemical players. The CSM business accounted for over 70% of the company’s revenues in FY21 and is expected to be the key growth driver for the company in future. The company has been increasing its share of high margin CSM business driven by strong relationships with global agrochemical players. PI is leveraging its chemistry skill sets and is looking to diversify its CSM portfolio to electronic chemicals, Pharma API, fluoro chemicals, etc. which will help drive business. PI Industries has announced that they will be acquiring the API business of Indswift labs for a consideration of Rs. 1,500 crores. Indswift labs had clocked revenues of Rs. 850 crore in FY21 and provides PI with an entry into the API business which will help provide the company with an additional lever to drive growth. We rahe the stock a BUY with a price target of Rs. 3950

BUY: `780
We recommend book profit in Sobha Developers Ltd, as the company is trading at EV/EBITDA of 13.2x which is on the higher side of the last 5-year average. We believe that all the short term positive has been priced in.

EXIT: `1348
Post the recent rally of ~20% since the start of August 2021, we believe that the stock price captures the residual volume growth for FY22E and the valuations are now appearing full. Hence we are recommending EXIT from the stock at current levels.

BUY: `627
We have seen a strong consolidation in top-10 cities in India towards organized players post Demon, RERA, IL&FS crisis. Listed players have gained market share in new launches in last 2-3 years, we expect this to continue.

BUY: `1189
We believe strong demand outlook of consumer products and focus on debt reduction (gross debt reduced by 60% in FY21) will lead to an improved RoE and RoCE for BEL, going forward. Expect healthy profitability on back of strong brand with leadership position in kitchen appliances, wide distribution network & strengthen product portfolio.

EXIT: `1437
We recommend book profit in Godrej Propert. as the company is trading at Price to book of 4.85 times. We expect some delays in the launch of new projects due to covid 19 state-wise restrictions. 3rd covid wave may slow down the sales momentum in the next quarter.

BUY: `484.2
The company’s capabilities have enabled them to gain market share across its products especially for products related to EV/BEV. They also have strong market share ranging from 55-90% for differential gears for PV, CV and tractor OEMs in India. Given the traction in the BEV/Hybrid Vehicle space, we believe that Sona Comstar will continue to command higher multiple which is justified by ~47% earnings CAGR over FY21-24E.

Book Profit: `526
We had recommended NEUTRAL rating on Chemplast Sanmar Ltd. IPO. The IPO as expected had a teid listing and is down by 2.5% from the IPO price of Rs. 541. At the CMP of Rs. 525, the stock is trading at ~17x its FY21 EPS which is at a discount to other chemical players. We are hence closing our NEUTRAL call on Chemplast Sanmar.

EXIT: `362
There has been a sharp fall in Iron Ore prices from USD 225 per tonne to below USD 150 per tonne which has also led to a correction in Steel prices. While the event is largely neutral for the stock as JSPL is a converter and not a fully integrated player, we believe that overall steel stocks will remain under pressure for some time. As a result we recommend to EXIt the stock at current levels though we may look to add it back at lower levels

EXIT: `2996.5
We believe that the volume growth will be impacted due to supply chain issues, especially in the AMET region. Given the near-term muted volume outlook, we believe the upside is limited and hence recommend EXIT from the stock.

Book Profit: `994
Krsnaa diagnostic IPO priced at price to earning levels of 81x and EV/EBITDA of 30.7 times, which is slightly higher than the listed peers. Krishnaa has a weak balance sheet with a negative net worth in FY2020. We suggest investors book profit at the current market price of ₹994.

Book Profit: `127
We had recommended SUBSCRIBE On the Devyani Internationa IPO. The Stock Is up ~41% from the higher end of the price band. At CMP Of Rs 127, the stock is trading at 13.8x EV/Sales (FY21) which leaves little room for upside. Hence, we recommend to book profits.

Exit: `172

We are exiting IDFC First Bank Given The Uncertainties Surrounding Vodafone Idea Wherein The Bank Has A Significantly Large Exposure At ~2.9% Of Their Book Against Which The Bank Will Need To Make Significant Additional Provisions Which Would Have An Adverse Impact On The Bank. Hence In The Light Of The Uncertainties We Would Recommend To Exit From The Stock.

EXIT: `4100
We recommend book profit in Apollo Hospitals as the company is trading at EV/EBITDA of 51.2x and EV/Sales of 5.2x which is on the higher side of the last 5-year average. All the short term positive has been priced in. As covid cases have come down in last 2 months, we expect revenue growth for the company will be muted for next 2 quarters.

Book Profit: `127.8
We had recommended SUBSCRIBE rating on Zomato Ltd. IPO. The IPO has received a stellar opening and is up 68% from the IPO price of Rs 76. At the CMP of Rs. 127.8, the stock is trading at ~49x its FY21 revenues which is at a sugnificant premium to global peers. Hence, we recommend that short-term investors that were looking for listing gains can exit the stock while long-term investors can book partial profits.

BUY: `742
Safari Industries (India) Ltd (SIIL) is amongst the leading luggage players with market share of ~18% market share in the organized sector. Market leader in mass segment & shift from unorganized to organized sectors would benefit SIIL. Over the last three years, the company has outperformed luggage Industries in terms of sales growth. Company has a wide distribution network which would support growth going ahead. Focused product strategy and diversified product portfolio to boost growth. Going forward, we expect SIIL to report strong top-line & Bottom-line growth on the back of strong growth in the organized sector, wide distribution network, strong brand & promoter initiatives.

Book Profit: `1605
We had recommended SUBSCRIBE rating on Clean Science & technologies IPO. The IPO has received a stellar opening and is up 78% from the IPO price of Rs 900. At the CMP of Rs. 1605, the stock is trading at ~86x its FY21 Consolidated EPS which is on the higher side of industry average. Hence, we recommend to book profit in the IPO given expensive valuations and limited upsides from current levels.

Book Profit: `1682
We had recommended SUBSCRIBE rating on G R Infraprojects IPO. The IPO has received a stellar opening and is up 101% from the IPO price of Rs 837. At the CMP of Rs1682, the stock is trading at ~12x its FY23E Consolidated EPS which we believe fairly values its HAM projects as well as its EPC business. Hence, we recommend that short-term investors that were looking for listing gains can exit the stock while long-term investors can book partial profits.

EXIT: `751
We are exiting Quess Corp post the announcement by the company that the Income tax department has conducted surveys at their various offices and have raised certain queries regarding the deductions the company has previously claimed u/s 80JJAA of Income Tax Act, 1961, a section which incentivises new employment generation. The company has refuted all allegations by the IT department and has said that the queries raised to date by the Income Tax department are interpretational in nature. However we believe that this is sentimentally negative for the stock and will remain under pressure for some time. Hence we recommend to exit the stock at current levels.

BUY: `2218
Dalmia Bharat (DBL) is among the top four cement manufacturers in the country, with an installed capacity of 30.75 MTPA (48% in the southern region and 52% in the eastern region) as on FY21. DBL is play on ramp-up in volumes owing to its new capacities in East and West. DBL has added ~4.2MTPA capacity in FY21 and is in midst of adding ~8MTPA (~5.4MTPA in FY22E and ~2.6MTPA in FY23E, mostly in East & Murli) which would drive the volume growth in the near future. This augurs well owing to strong region-specific fundamentals. We expect the demand environment to remain strong given the impetus on infrastructure spend. We expect cement volume CAGR of ~15% over FY21-23E on the back of strong demand and capacity absorption. The price hikes taken by DBL would enable it to manage cost pressures while continued free cash generation is likely to aid deleveraging. Considering the strong growth outlook, we believe that DBL deserves to trade at a premium to replacement cost as seen during previous growth spurts.

BUY: `1148
AU Small Finance Bank is one of the leading small finance banks with AUM of ~Rs. 34,688 Cr. at the end of Q1FY22. AU SFB has a well diversified geographical presence across north, central and western India. Wheels (auto) and SBL-MSME segment accounting for 37% and 39% of the AUM respectively. AU is also looking to scale up its home loans and business banking segment which have good growth potential. Q4FY21 numbers were impacted due to interest reversals of Rs. 660mn and higher employee expenses due to one off ESOP charges. Despite the one offs AU had reported NII/PPOP/PAT growth of 18.2%/18.4%/38.1% respectively in Q4FY21 while GNPA/NNPA ratios stood at 4.3%/2.2% respectively. As per the business update for Q1FY22 gross advances for Q1FY22 has declined by 2% QoQ while deposits registered a growth of 3% QoQ. Collection efficiency remained strong during April/May/June at 95%/94%/114% respectively while GNPA remained stable at Rs. 1503 cr. sequentially. Restructured books also remained stable at 2.0% of books at the end of Q1FY22 (1.8% in Q4FY21). Given stable asset quality, we expect loan growth to pick up in Q2FY22 which should lead to a rerating for the bank. We are positive on Au small FInance Bank and recommend a BUY with a target price of Rs. 1375 (5xFY23 BVPs of Rs. 275).

BUY: `3135
Galaxy Surfactants is a market leader in Oleochemical-based surfactants, which is used in personal and home care products including skin care, oral care, hair care, cosmetics, toiletries and detergent products. The company has been increasing its share of high margin specialty care products in it’s portfolio which now accounts for ~ 40% of it’s revenues while the balance is accounted for by the performance surfactant business. Company has very strong relationships with MNC clients like Unilever, P&G, Henkel, Colgate-Palmolive and supplies raw materials to them not only in India but also in the US, EU and MENA region. Though the company’s operations were impacted due to the Covid-19 outbreak in FY21 we expect revenues to register a strong growth from FY22 onwards given the company’s exposure to the personal and home care segment and recovery in the specialty segment. We are positive on Galaxy Surfactant and recommend a BUY with a target price of Rs. 3594.

Book Profit: `355
India Pesticides Limited IPO is trading at Price to Earnings of 30 times and EV/EBITDA of 22 times which is still better than the peers. Company having ROE of 34% and ROCE of 45%. We suggest short term investors to book profit at ₹355 and long-term investors can hold the stock from this level also. We had recommended a subscribed rating to the IPL LTD IPO.

EXIT: `1355
We are exiting out of PVR post the run up in stock price from Covid lows. The second Covid wave has led to significant disruptions for the exhibition industry in Q1FY2022. While Covid cases have been on a declining trend over the past few weeks we believe that theaters will be amongst the last sectors to be opened up. Given the sharp rally in stock prices since the beginning of May we believe that upsides would be limited from current levels in the near term.

Book Profit: `977
Krishna Institute of Medical Sciences Ltd got listed on stock exchanges at ₹1008.9 on 28-06-2021. We have given a subscribe rating to the KIMS IPO, Listing was in line with our expectation. We suggest short term investors to book profit at ₹977 with gain of 17.8% and long-term investors can book partial profit and hold remaining quantity as we expect company to perform well in long term. KIMS is trading at EV/EBITDA of 21 times and Price to earning of 37 times which is still at good valuation compared to its peers. We expect the company to perform well in the long term.

Book Profit: `633
We had recommended SUBSCRIBE on the Dodla Dairy IPO. The stock is up ~48% from the higher end of the price band. At CMP of Rs 633, the stock is trading at 24.1x PE ( 9MFY21 annualised profit ) which leaves little room for upside. Hence, we recommend to book profits.

Book Profit: 377
We had recommended SUBSCRIBE rating on Shyam Metallics IPO. The IPO has received stellar opening and is up 26.55% from the IPO price of Rs 306. At the CMP of Rs377, the stock is trading at FY23E EV/EBITDA of ~6x which is pricing in the near-term positives. Hence, we recommend that short term investors that were looking for listing gains can exit the stock while long term investors can book partial profits.

Book Profit: 363
We had recommended SUBSCRIBE on the Sona BLW Precision Forgings IPO. The stock is up 24.69% from the higher end of the price band. At CMP of Rs 362.85, the stock is trading at 29.5x FY23E PE which leave little room for upside. Hence, we recommend to book profits.

BUY: `578
Stove Kraft Ltd (SKL) is engaged in the business of manufacturing & selling Kitchen & Home appliances products like pressure cookers, LPG stoves, non-stick cookware etc. under the brand name of ‘Pigeon’ and ‘Gilma’. In the Pressure Cookers and Cookware segment, over the last two years, the company has outperformed Industry and its peers. Post Covid, organized players are gaining market share from unorganized players which would benefit the player like SKL. Going forward, we expect SKL to report healthy top-line & bottom-line growth on the back of new product launches, strong brand name and wide distribution network.

BUY: `840
Quess Corp is one of India’s leading human resource companies offering a range of solutions to employers for fulfilling their hiring requirement. The company is in the fast growing field of providing staffing solutions to companies and has registered a revenue CAGR of 52.6% between FY16 to FY21. Revenues for the company were impacted due to the lockdowns in 1HFY21. However the company has registered a strong growth in 2HFY21 due to increased demand for staffing as lockdowns were eased. Though there could be some impact on revenues in Q1FY22 due to the second Covid wave we feel that it will be temporary in nature and the company should register strong growth for the rest of FY22 as there is a growing trend o outsource some of the non core positions post the pandemic. Moreover Quess Corp is trading at a P/E multiple of 20.0xFY23 EPS which is at a significant discount to Team Lease despite having similar return ratios. Given similar growth profile and return ratios we feel that Quess Corp offers value at current levels and rate it a BUY with a target price of Rs. 1,060 (25xFY23 EPS estimates).

EXIT: `3086
At current prices Galaxy Surfactants is trading at P/E multiples of 27.6xFY23E which is at the higher end of its historical average P/E multiple. Therefore given limited upides from current levels we are recommending to EXIT from the stock.

BUY: `420
Jindal Steel & Power Ltd. (JSPL) is one of India’s largest Iron & steel companies with an installed capacity of 8.6mn Tonne at the end of FY2021. Global steel cycle has turned around due to normalization of demand in developed economies due to reopening of the economies. This has led to significant increase in demand for steel which in turn has led to record high international steel prices. Moreover China’s focus on limiting domestic production and removing export rebates for various categories of steel has also led to fall in Chinese exports which has led to lower domestic prices in China but has led to firming of international steel prices. JSPL has posted a very strong set of numbers for Q421 due to firm domestic prices and availability of low cost iron ore from Sarda mines. The company has also been deleveraging its balance sheet with net debt expected to come down to ~Rs. 12,600 crore by FY2022 which should lead toa rerating in the stock. At current levels the stock is trading at EV/EBIDTA of 4.0xFY2022 EBIDTA and offers value given the upturn in global steel cycle. We have a BUY rating on the sock with a target price of Rs. 550.

BUY: `4060
L&T Infotech (LTI) is one of the fastest growing mid cap IT companies in India. IT is part of the L&T group and provides services like ADM, Enterprise solutions, Infrastructure management services etc. The company has a very strong presence to the BFSI & manufacturing verticals which accounts for ~45% and 17.5% of the company’s revenues and are amongst the least impacted verticals due to the shutdown on account of Covid – 19. The company doesn’t have a very large exposure to service oriented verticals like travel & Tourism which are amongst the worst impacted due to the Covid – 19 outbreak. LTI has been growing significantly faster than both mid and large cap peers over the past few years on the back of strong deal wins and we expect the out performance to continue for the company. We expect the company to post revenue/EBITDA/PAT growth of 17.9%/20.5%/20.5% between FY20-FY23 given a strong deal pipeline and increased demand for digital solutions.

EXIT: `131.45
At current prices NRB Bearings is trading at P/E multiple of 18.3x FY23E which is in reasonable in our opinion. We believe that at current levels positives are factored into the stock price and therefore we recommend to exit from the stock.

Buy: `288                                            Target Price: `360
Suprajit Engineering (SEL), is the largest supplier of automotive cables to the domestic OEMS with presence across both 2Ws and PVs. SEL over the years has evolved from a single product/client company in India to having a diversified exposure which coupled with its proposition of low-cost player has enabled it to gain market share and more business from existing customers.SEL has outperformed the Indian Auto industry in the recent years (posting positive growth vs low double-digit declines for the domestic 2W and PV industry in FY21). We believe SEL is prime beneficiary of ramp-up in production by OEMs across the globe and is well insulated from threat of EV (is developing new products). Its premium valuations are justified in our opinion owing to strong outlook and top-grade quality of earnings.

Buy: `1420                                            Target Price: `1600
Godrej property are amongst India’s largest developer by residential sales. As of 31st March 2021, the company has a total salable area of 187 msf in total 85 different projects across India. Company has done a pre sales of 4.17 msf in Q4FY21 up by 16% and booking values of ₹2632 crores up by 10%. Company received a very good response for the new launched property. As Godrej Property having a very robust pipeline of 12.3 msf for upcoming years, further new launches in Mumbai once relaxation in lockdown. We are expecting a strong recovery in residential market in 2nd half of 2022, company to get benefit of shift from unorganized to organized market as well as company have a great brand recognition.

EXIT: `464
Powergrid invIT debuts at premium to issue price of ₹100, Powergrid invIT settles at ₹104 which is 4% premium to its issue price of ₹100 and then touches the lows of ₹102.84 during the trading day. Currently stock trading at ₹102.86, we suggest retail investors who got the allotment of the IPO to exit at current market price and not to do any fresh buy. We don’t expect stock to perform from this level and may consolidate at this levels

EXIT: `464
Macrotech developers limited (Lodha Developers) debuts at discount to issue price of ₹486, Lodha developers ipo settles at ₹439 which is 10% discount to its issue price of ₹486 and then touched the lows of ₹421 during the trading day. Currently stock trading at ₹464, we suggest retail investors who got the allotment of the IPO to exit at current market price and not to do any fresh buy.
We have some concerns towards the company like high debt and not able to generate free cash flow and now in the fear of 2nd covid wave real estate sector may underperform the market.

Book Profit: `282
Suryoday Small Finance Bank had come out with an IPO of Rs. 583 cr at a price band of Rs. 303-305 per share. The IPO was subscribed by just 2.4x times. The reason for such a tepid response to the IPO was due to sharp increase in NPAs due to the Covid-19 crisis. The bank predominantly makes MFI loans which were amongst the worst impacted segment due to the Covid-19 crisis. While reported GNPA and NNPA stood at 0.8% and 0.3% at the end of Q3FY21, proforma GNPA and NNPA stood at 9.3% and 5.4% respectively. At CMP of Rs. 272 the stock is trading at P/BV of 2.25x fully diluted post issue book value of Rs.136 per share. While valuations were reasonable asset quality issues will remain a drag on the stock for a few more quarters. We had a NEUTRAL rating on the stock during the IPO and we continue to maintain our view given asset quality issues.The sock is currently trading at a discount to the IPO price and hence we are closing our NEUTRAL call on Suryoday Small Finance Bank.

Book Profit: `159
Laxmi Organics Ltd. had come out with an IPO of Rs. 600 cr at a price band of Rs. 129-130 per share. The IPO was scribed by 106.8 times with the QIB and the NIB portion being subscribed by 175.4x and 217.6x respectively. The retail portion was subscribed by 20.1x. The company is the largest manufacturer of ethyl acetate with over 30% market share in the Indian ethyl acetate market and the only manufacturer of diketene derivatives in India with a diversified customer base. Given the strong growth prospects and reasonable valuations we had given a subscribe rating to the IPO. However at current levels the stock is trading at a P/E multiple of 51.3xFY20 EPS which is on the higher side as compared to peers. Hence we would recommend to book profits at current levels.

Book Profit: `115
MTAR Technologies had a bumper opening given very strong demand for the IPO. There was very strong demand for the shares given that the company is uniquely positioned catering to marquee clients like ISRO, DRDO, NPCIL, DRDO, Bloom Energy and Rafael. At the higher end of the price band the company was offering its shares at a P/E multiple of 49.1xFY20 EPS which was reasonable considering the growth prospects for the company. However at CMP of Rs. 1115 the stock is trading at P/E multiples of 95.3xFY20 EPS which is expensive and captures near term growth potential thus leaving very little upside from current levels. Hence we would recommend book profits at current levels.

Book Profit: `778
Heranba Came Out With An IPO At An Issue Price Of Rs. 627 Per Share. At Current Levels Of Rs. 778 The Stock Is Trading At A P/E Multiple Of 31.1xFY20 EPS Of Rs. 25 Which Is At A Premium To Peers Like Rallis India. We Would Therefore Recommend Investors To Book Profits In The Stock At Current Level.

Book Profit: `114.1
We had given a subscribe rating to RailTel Corporation IPO, today the stock made a listing on the exchange at 11.3% above its issue price and is currently trading at 21.4% above issue price at the higher price band. Currently, stock is trading at 26 PE on FY20 trailing basis. We close our IPO call by recommending investors to book profit. Long term investors can hold the stock.

CMP: `2510
We had given a subscribe rating to Indigo Paints IPO, stock made a stellar listing on the exchange by listing at 75% above its issue price and is currently trading at 68.5% above issue price at the higher price band. Currently, stock is trading at 164 PE on trailing basis. We close our IPO call by recommending investors to book profit.

EXIT : `322
We had given a neutral rating to Antony Waste Handling Cell IPO. Stock is currently trading at 2.2% above issue price at the higher price band. Currently, stock is trading at 11.8x PE on FY20 EPS. We close our IPO call.

CMP: `180.8
We had given a subscribe rating to Burger King IPO, stock made a stellar listing on the exchange by  listing at 87.5% above its issue price  and is currently trading at 201% above issue price at the higher price band. Currently, stock is trading at 6.2x on FY20 EV/sales basis. We close our IPO call by recommending investors to book profit.

Buy: `366                                            Target Price: `450
Bandhan bank is one of India’s leading east based micro finance lending led bank. This places the bank at a significant advantage over other MFIs in the form of very low cost of funds. While Bandhan Bank started off as a MFI it is diversifying its loan book. With the takeover of Gruh Finance mortgages account for ~ 26% of the banks lending books while commercial banking accounts for ~6.5% of the company’s loan book. The company is looking to diversify its loan book and geographical spread over the next 5 years. The company has posted better than expected set of numbers for Q2FY21 with and has posted NII growth of 25.8% YoY while operating profit has registered a growth of 24.5% YoY. Collection efficiency has also improved to 91%/98%/98% for MFI/Housing and CIB segments in Oct’20. Management has highlighted that disbursements are going to be back to pre Covid levels in Q3FY21. We recommend a BUY on the stock

Buy: `330                                            Target Price: `397
In Q2FY21 Volume stood at 9.85 MMSCMD, which is the highest volume by company in any quarter, Volumes are even better than pre Covid levels. In last 2 years strong volume CAGR of 20%.  Industrial Growth in Gujarat – 80% of overall volumes comes from the Industrial sector. Industrial demand is very strong in Morbi. Morbi ceramic to get further boost as strong demand from USA as they have imposed 200%-300% of import duty on Chinese ceramic. Company also ramping up its capacity at Morbi to enable it to handle 8 MMSCMD against current capacity of 5.9 MMSCMD. Margin to sustain  – Gujarat gas margins are highest in Q2FY21 at 29%. Margin has increased due to low imported LNG prices and decrease in other expenses.

EXIT: `1036
Considering expected slow recovery in Europe business and Result came below expectation during 2QFY21, we recommend exit from stock.

EXIT: `311
Result came below expectation during 2QFY21 and expected slow recovery going forward. Hence, we recommend exit from stock.

CMP: `166
We Had Given A Subscribe Rating To Mazagon Dock Shipbuilders IPO. Currently Trading At Rs168 Above Its Issue Price At The Higher Price Band (Rs145). Currently Stock Is Trading At 7.0x PE On FY20 Basis. We Close Our IPO Call By Recommending Investors To Book Profit.

CMP: `31

Profit Book: `525.6

Profit Book: `1,402

We have a SUBSCRIBE rating to CAMS, considering a leadership position, huge growth potential of the MF industry, strong return ratios, asset-light business, and higher dividend payout ratio. Today it made a high of Rs.1550. short term Investor with can book profit, however, long term horizon investor can hold

Exit: `142.5

Profit Book: `777.5

Happiest Minds Technologies Ltd. – We had recommended a “SUBSCRIBE” to Happiest Minds IPO. Post listing as the stock is trading 120% above the issue price,we would recommend to book profits. At current levels the stock is trading at 54x FY2020 EPS, which is significantly higher than industry peers. From a long term perspective digital business will be the key growth driver for the IT sector and Happiest Minds is positioned to take full benefit of the same as the company derives 97% of its revenues from digital services. While we expect Happiest Minds to grow ahead of the Industry current valuations are demanding.

Exit: `3,786

During the 1QFY21, the company has reported strong revenue growth ~26% yoy which is not sustainable in the coming quarter and provides limited upside in the stock. Hence, we recommend exit form stock.

CMP: `926                                            Target Price: `1,125                                     Upside: 21.5%

Exit: `921

More than 38% of revenue comes from domestic business which is under pressure due to local lock down and Doctors clinic footfall at 50%-60% of pre covid levels. Company may not be able to maintain its margins in the near future. We recommend Exit  Alembic Pharma.

Exit: `1,916

At current prices PI Industries is trading at a P/E multiple of 32xFY22E which is on the more expensive side. Therefore given limited upides from current levels we are recommending to EXIT from the stock.

CMP: `1,790                                        Target Price: `2,156                                          Upside: 20.5%

We are positive on the company given expected long term growth rates of ~15% CAGR, stable margins profile and moderating competitive intensity

CMP: `294                                             Target Price: `350                                                Upside: 19.1%

Share prices have corrected more than 40% as all theatres are closed down due to covid-19 issue. Although, long term fundamentals are intact. Covid-19 can lead to further consolidation in the industry

CMP: `165                                      Target Price: `200                                                Upside: 21.2%

Company has posted strong sequential revpar growth in July and future improvement is expected over next few months led by increased occupancy

CMP: `303                                Target Price: `348                                    Upside: 14.8%

Market leader (~50%+ share) with strong brand and wide distribution network. Recent correction provides investment opportunity in high quality stock from long term perspective.

CMP: `4,918                                         Target Price: `5,682                                          Upside: 15.5%

Gaining market share with peer, strong demand post Covid-19 and increase in penetration of cooking gas to drive higher growth

Exit: `224

CMP: `232                                        Target Price: `280                                           Upside: 20.7%

The Cholaman.Inv.&Fn has diversified product mix which helps them to capture growth in tractor and 2 W segment. Adequate capital adequacy (20%+) and declined trend in Cost of fund and strong parentage provide comfort.

CMP: `286                                   Target Price: `328                                        Upside: 14.7%

Exit: `520

Exit: `4,483

 More than 45% of revenue comes from the Acute segment, which is under pressure. We expect subdued growth in coming quarters. We recommend Exit Dr Reddy’s Labs.

Exit: `359

Slippages from the moratorium book would impact profitability, thus an improvement in return ratio would take a longer time.

Exit: `1,813

Subdued real estate market and competition from banks in housing space would keep the pressure on advance growth.

Exit: `1,751

Exit: `1,012.25

Aarti Industries Q1FY21 numbers were below our estimates, net profit declined by ~40% YoY, hence we recommend investors to book profit.

Exit: `2,504

Exit: `2,037

The company has reported a strong set of numbers in Q1FY21 due to certain one off of 259 Crores which will not be there from next quarter. Despite a bumper quarter management has guided for a 18-19% growth for FY21 implying weak numbers for the rest of the year. Given weak guidance for the rest of FY21 and limited upsides from current level we recommend an exit from stock.

We have recommended a SUBSCRIBE to Mindspace Reits, currently stock is trading at 301,9.45% above the allotment price of 275, we suggest you to book a profit at current market price.

CMP: `1,022                                 Target Price: `1,400                                         Upside: 36.9%

Exit: `1,110

CMP: `885                              Target Price: `1,085                                     Upside: 22.6%

Persistent Systems Ltd. has posted a very strong set of numbers for Q1FY21 with dollar revenue growth of 3.1% qoq. Services business grew by 1.8% qoq to USD 108.2mn while the IP  business also posted strong growth. Company has also reported improvement in margins due to tight cost control. Company has won a large deal during the quarter which will ramp up over the next few quarters. The new management’s focus on annuity deals is expected to lead to stable growth going forward. We expect the company to post revenue/EBITDA/PAT growth of 11.6%/21.4%/19.7% between FY20-FY22 given negligible impact of Covid-19 on FY21 numbers strong deal wins, ramp up of existing projects along with margins expansion. We recommend a BUY on Persistent Systems with a target price of Rs. 1085 (17xFY22 EPS estimate of Rs.63.8)

CMP: `155                               Target Price: `187                                Upside: 20.7%

Exit: `1,413

Going forward, we expect volume growth to be muted due to strong competition and coronavirus pandemic.Hence we recommend investors to exit the stock.

Exit: 913

Daily covid cases are increasing in India which could lead to slower than expected pick up  in execution  as compared to our earlier estimates. There is also limited clarity on how the ordering activity will pan out in the remaining part of the year given the Covid-19 situation and funding related issues for NHAI and the Government due to shortfall in revenues. Due to lack of clarity on execution and ordering for the sector we are exiting out of L&T.

We had assigned a NEUTRAL rating to Yes Bank FPO, our argument for the rating was 1) At the upper end of the price band, Yes Bank demands Adj. PB of 0.85x post considering FPO. In the current market, other banks are trading at an attractive valuation of FY20 net worth viz. IDFC Bank (0.9x), SBI Bank (0.5x Core banking business), Federal Bank (0.9x). 2) fresh formation of bad loans that would keep provision highs and return ratio compressed for a longer time.3) Rebuilding CASA and deposits is a challenging task and would take a longer time. Overall, the bank’s revival and decent RoE numbers will take a longer time.

FPO rate was Rs.12-13 per share, today is made a low of Rs11.10.

CMP: `2,338                                    Target Price: `2,611                                        Upside: 9.4%

L&T Infotech has declared a better than expected set of  numbers for Q1FY21 which has led to upgrades in EPS estimates for FY21 and FY22 to Rs. 99.0 and Rs. 113.5 from Rs. 92.9 and Rs. 106.7 respectively. Company reported a 4.8% qoq decline in Q1FY21 revenues to USD 390.3mn as against our expectations of a 8.8% decline. EBIDTA for the quarter was up by 2.7% qoq while margins expanded by 368bps qoq to 21.1% led by tight cost controls. Management has indicated a very healthy deal pipeline for Q2FY21 and we expect the company to report sequential revenue growth for the rest of the year. We believe that L&T Infotech is amongst the best placed companies in the Indian IT sector and would continue to remain in the growth quadrant for years to come. We are upgrading L&T Infotech Target price to Rs. 2611 post the Q1FY21 numbers.

Exit: 3,255

Higher provision cost for bad loans would keep profitability under pressure.

Exit: `423

Slippages from the moratorium book would impact profitability adversely, thus an improvement in return ratio would take a longer time.

Exit: `2210

Given that 1QFY21 results are below our expectation & currently the company is trading at higher valuation, hence we recommend investors to exit the stock.

Hold

We are putting L&T Infotech on HOLD post the sharp rally in the stock from it’s march lows.At current level the stock is trading at P/E of 19.3xFY2022 EPS estimates of INR 107.3 which is on the higher side. We would evaluate the company post the TCS numbers on the 9th of Jul’20.

Exit: `2,161

Exit: `65.5

Slippage from Moratorium book and abysmally low advance growth to impact return ratio adversely.

Exit: `242.4

We are closing our fundamental call on Elantas Back Ltd. post the sharp rally in the stock from it’s lows of 137.25 on the 24th of March 2020. We feel that upsides from current levels given more than a 75% rally in the stock.

CMP: `838                             Target Price: `1015                                      Upside: 21.1%

CMP: `25.6                                        Target Price: `32                                           Upside: 25%

The Ability to raise sufficient liquidity at Low cost would be The Key criteria for banks to navigate the current situation, as asset side inflow would be limited. IDFC Fist Bank, Post management change has clearly out perform in building liability franchise and retail lending.

Since new management took charge, every qtr. liability franchise has been strengthened.The Bank is raising Rs. 2,000 crores of fresh equity capital during Q1FY21

We believe efforts to built liability franchise, fresh capital infusion and provision taken on wholesale book will help to tide over this difficult time. The IDFC First Bank is trading ( 0.7 x FY22ABV) at a significant  discount to historical average valuations.

CMP: `1290                                Target Price: `1566                                          Upside: 21.4%

Exit: `10150

Exit: `17160

Exit: `708

CMP: `2,455                                    Target Price: `3,000                                       Upside: 22.2%

CMP: `424                               Target Price: `500                                   Upside: 17.9%

The Ability to raise sufficient liquidity at Low cost would be The Key criteria for banks to navigate the current situation, as asset side inflow would be limited. AXSB should benefit from the increasing polarisation in the deposit ecosystem – a positive in the current environment.  The Axis Bank is trading ( Core Banking Business – 1.2x FY22ABV) at a significant  discount to historical average valuations and offers favorable risk reward from current levels given global tailwinds.

CMP: `974                      Target Price: `1,150                           Upside: 18.1%

Escorts is a prominent tractor player domestically with market share in excess of 11%. With rural India relatively less impacted due to Covid-19, record food-grain procurement by government agencies as well as expectation of normal monsoon 2020, we expect the tractor industry to outperform the larger automobile space in FY21E with Escorts a key beneficiary.

CMP: `951                          Target Price: `1,093                                 Upside: 14.9%

CMP: `1,740                          Target Price: `1,950                                    Upside: 12.1%

The sufficient liquidity at Low cost would be The Key criteria for NBFC/Bank to navigate the current situation, as asset side inflow is limited due to moratorium. HDFC Ltd is able to raise fund at competitive rate owing to strong operating metrics, experienced Management and industry’s best credit rating. The HDFC Ltd is trading ( Core Banking Business – 1.42x FY22ABV) at a significant discount to historical average valuations and offers favorable risk reward from current levels given global tailwinds.

CMP: `345                                Target Price: `410                                 Upside: 18.8%

The Ability to raise sufficient liquidity at Low cost would be The Key criteria for banks to navigate the current situation, as asset side inflow would be limited. ICICI Bank is clearly better positioned  in the liability side (in Q4FY20, Deposit grew 18% yoy and CASA ratio of 45%). Easier and cheaper availability of deposits give an advantage to manage ALM given limited inflow  from advance due to moratorium. the ICICI Bank is trading ( Core Banking Business – 1.1x FY22ABV) at a significant discount to historical average valuations and offers favorable risk reward from current levels given global tailwinds.

CMP: `3,877                            Target Price: `4,570                                Upside: 17.8%

Dr Reddy’s has a very strong product portfolio with 55%-65% of it’s revenue coming from it’s chronic which is a high growth segment and will be least impacted due to lockdown globally. The company also has a very diversified geographical spread with the US accounting for 38% of revenue followed by RoW (26%), Emerging markets (19%) and India (17%).

Exit: `573

Dhanuka Agritech has given close to 31% return in less than 1 month from our buy recommendation. We recommend investors to book profit in the stock as it has run up significantly in such a short period of time. We will reevaluate the stock in case there is a correction from current levels.  

Exit: `2,425

Exit: `3,732

GMM Pfaudler has reported 4QFY20 results which were below our expectation. We expect that the company will have a weak H1FY21 on account of delay in finalization of capex on the non agro non pharma chemicals side of the business. Hence given the sharp run up in the stock price we recommend to exit the stock at current levels given very steep valuation of 38xFY22 EPS estimates.

Exit: `1,265

Given that 4QFY20 results are below our expectation, and also considering FY21 growth will likely remain weak due to lockdown and slowdown in the economy, we recommend investors to exit the stock.

Exit: `4,235

Given that 4QFY20 results are below our expectation, and also considering FY21 growth will likely remain weak due to lockdown and slowdown in the economy, we recommend investors to exit the stock.

CMP: `2,056                           Target Price: `2,364                                    Upside: 14.9%

CMP: `438                  Target Price: `520                           Upside: 18.7%

Dhanuka Agritech is a 100% focused domestic market agrochemical company. It has an asset light business model with a clear focus on marketing and creating brands. Company has better return ratios, working capital cycle and cash flow compared to its peers. We are positive on the long term prospects of the company owing to high industry growth rate, management capability and wide & diversified product portfolio as well as reach.

Exit: `1,610

Amid current scenario, demand for paints (discretionary products) remain weak, pressure to continue going forward; recommend exit from stock.

Exit: ‘450

Considering that FY21 growth will likely remain weak due to lockdown and slowdown in the economy, stock is likely to remain under pressure. Hence, we recommend investors to exit the stock.

Exit: `340

ICICI Bank asset quality to impacted negatively owing to lock down and this environment advance growth would be difficult. Which will keep RoE under pressure for a longer time.

Exit: `2,121

Given that 4QFY20 results are below our expectation, and also considering that FY21 growth will likely remain weak due to lockdown and slowdown in the economy, we recommend investors to exit the stock.

Exit: `27

CMP: `929                       Target Price: `1,084                          Upside: 16.7%

CMP: `1,394                        Target Price: `1,610                          Upside: 15.5%

Galaxy Surfactants is a leader in oleo based surfactants which is used in personal care products including skin care oral care, cosmetics and detergent products. The company has been increasing it’s share of high margin special care products over the years and is uniquely positioned in terms of having a very strong relationship with MNC customers to which it supplies raw materials globally including the US, EU, MENA apart from India. Though the company’s operations had been impacted due to Covid 19 outbreak, it is normalizing gradually given that the company supplies products to the FMCG space which are essential in nature.

CMP: `1,506                       Target Price: `1,784                          Upside: 18.5%

Exit: `3,409

Q1 & Q4 are considered to be the strongest quarters for the cement industry. Due to covid-19, the last 15 days of Q4FY19 & entire Q1FY20 volumes will show substantial decline. We expect muted cement demand at least till H1FY21 due to slowdown in construction. So, we recommend investors to exit UltraTech Cement.

CMP: 2,687                       Target Price: 3,300                           Upside: 22.8%

67% of revenue comes from domestic generic and API business. Anti-infectives and Cronic business continues to provide revenue growth for Alkem. Expected to outperform the Indian Pharmaceutical market(IPM) by 1.5x growth rate for the next 2 years. We expect alkem to grow its top line by 13-15% in the upcoming years.

CMP: 1,205                   Target Price: 1,412                                 Upside: 17.2%

Reliance Industries Ltd. (RIL) is India’s largest company with a dominant presence in Refining, Petrochemicals, Telecom and Retail businesses. Telecom business to witness robust growth over next few years due to tariff hikes and shift of subscribers from Vodafone Idea to other telecom players. Retail business to be a key value driver for Reliance over the long run though there would be some impact on business in FY21 due to the Covid 9 outbreak. Refining and petrochemicals business would  be a stable low growth business for RIL going forward but will be a major cash generator for the company as there will be negligible capex requirements. The cash flows would be used to fund expansion into other businesses.

CMP: 498                         Target Price: 550                                       Upside: 10.5%

CMP: 1,493                       Upside: 1,803                                    Upside: 20.1%

The company has a very strong exposure to the BFSI & manufacturing verticals which accounts for ~45% and 17.5% of the company’s revenues and are amongst the least impacted vertical due to the shutdown on account of Covid – 19. The company doesn’t have a very large exposure to service oriented verticals like travel & Tourism which are amongst the worst impacted due to the Covid – 19 outbreak. We expect the company to out performance the sector. Rupee depreciation to help company’s topline and bottomline positively. Post recent correction stock  is available at reasonable valuations.

CMP: 626                   Target Price: `758                              Upside: 21.1%

Under the new management of Mr. Salil Parekh Infosys has become aggressive in terms of signing new deals which is expected to drive growth for the company. In FY19 the company won large deals of USD 6.3bn as against USD 3.1bn in FY18. For the first 9 months of FY21 the company has already signed large deals worth USD 7.3bn. We expect Infosys to report above industry average growth rates on the back of strong deal wins which will drive topline growth. Rupee depreciation from ~71 levels to ~77 to the US dollar will have a positive impact on top line and bottom-line and will mitigate the adverse impact due to Covid-19 outbreak to a large extent.

CMP: 2,832           Target Price: 3,320                   Upside: 17.2%

Exit: `1,116

Lockdown has impacted summer AC demand, likely to remain weak in FY21 also, affecting Amber’s revenue (Room AC sales contribute ~60% of revenue).

Exit: `279

We expect demand risks for wires/B2B cables business due to COVID-19 pandemic; recommend exit from stock.

Exit: `402

Luggage industry is highly dependent on Travel & Tourism which is impacted due to coronavirus, pressure to remain going forward; recommend exit from stock.

Exit: `685

We expect the current lockdown to weaken fleet operator cash flow and this could worsen asset quality metrics.

Exit: `121

Due to lock down we expect higher stress/Slippages in microfinance (11% of loan book) / credit cards Loans (15.7% of Loan Book), further, subdued loan book growth and lower third party product sale to lower fees income. Hence, ROE would remain under pressure.

Exit:: `1,462

Yesterday, the Supreme Court directed covid-19 tests should be done free of cost in NABL accredited labs. As per the supreme court interim judgement the question of government reimbursement to private labs will be considered at a later date. Private labs are currently charging INR 4500 per test. We believe that this judgement will cause short term uncertainties given that existing business has also seen a drop due to the Covid – 19 outbreak. We therefore recommend to EXIT Dr Lal Pathlabs in absence of any clarity on the issue as of now.

CMP: `1,398                          Target Price: `1,900                             Upside: 35.9%

Leading generics and API player with strong presence in India markets which account for 54% of the company’s revenues. IPCA expected to outperform the Indian Pharmaceutical market (IPM) by 8%-10% p.a in FY 22. Europe which accounts for 15% of the company’s revenues is expected to scale up over next few years driven by increased capacity utilization. Company also has 18 ANDA approvals from the US FDA with 46 ANDAs in the pipeline which will drive US business.

CMP: `421                            Target Price: `492                                      Upside: 16.8%

Telecom operators have increased tariffs by ~35% in Nov’19 and there is possibility of more rate hike in FY21 given that tariffs are still low. If Vodafone Idea goes out of business, Bharti would benefit significantly from addition of subscribers. Bharti is also well positioned in terms of liquidity given that it has raised capital of USD 2bn from a QIP at Rs.445 per share along with FCCB issues of USD 1bn in January 2020.

CMP: ‘1,385                                Target Price: ‘1,768                                         Upside: 27.6%

Dr. Lal Pathlabs is a leading Pathology center in India and market leader in Delhi with ~25% market share. It has the largest pathology set up in India with 200 clinical labs (including National Reference Lab at Delhi and Regional Reference lab at Kolkata), as on 31st March, 2019. Over the next few years the company is targeting to penetrate north (ex NCR) & east India which I sexpected to drive growth for the company.

CMP: 10,161                       Target Price: 11,670                             Upside: 14.9%

CMP: 2,038                          Target Price: 2,395                         Upside: 17.5%

Avenue Supermarts owns and operates the supermarket chain ‘D-MART’. Focused on value retailing, it offers a wide range of fast-moving consumer products, general merchandise and apparel. Currently, the company has 196 D-MART stores and it expects to open 30 stores every year. Operating margin is higher compared to its peers due to the company’s low cost structure. We expect DMART to report consolidated revenue/PAT CAGR of 18%/26%, respectively over FY2019-22E.

CMP: 1,152                          Target Price: 1,325                            Upside: 15.1%

We believe that the company should ultimately be able to see sharper market share gain in toothpastes segment on the back of higher ad-spend and re-launch of Colgate Strong Teeth (decent traction seen).

CMP: 2,140                       Target Price: 2,461                           Upside: 15%

Hindustan Unilever Ltd (HUL) is engaged in manufacturing of branded and packaged FMCG products. We expect HUL to report healthy bottom-line CAGR of ~12% over FY2019-22E due to healthy volume growth on the back of strong brand, wide distribution network.

CMP: 15,091                   Target Price: 17,355                        Upside: 15.1%

Nestle India Ltd (Nestle) manufactures and sells a variety of food products such as Milk & Nutrition, Prepared Dishes & Cooking Aids, Powdered & Liquid Beverages and Confectionery. Going forward, we expect healthy growth and profitability on the back of strong brand recall, wide distribution network (4.6mn outlets across India) and new product launches.

Buy – Bata India       CMP – `1,411                    TP –`1,800 

We expect Bata India to report net revenue CAGR of ~11% to ~`3,974cr over FY2019-22E mainly due to increasing brand consciousness among Indian consumers, new product launches, higher number of store additions in tier II/ III cities and focus on high growth women’s segment. Further, on the bottom-line front, we expect CAGR of ~20% to `562cr over the same period on the back of margin improvement (increasing premium product sales).

Buy- CMP – 1,864; Target Price -2118 

Exit: CMP at `75

Moderate growth in lending book and concern related to group companies will keep valuation depress.

Exit Larsen & Toubro at CMP Rs.1249.7

Amid slowdown in private capex, Larsen & Toubro has managed to increase its  order inflow by 11% for 9MFY20 primarily due to international orders coming from Middle East, USA, South East Asia & Europe. An increase in Coronavirus cases in Middle East, SE Asia as well as Europe, will limit its order inflow coming from these regions.

Exit at CMP: `1856

Stock has rallied ~138% since June 2018 and is trading at a high valuation of 62.8x trailing PE. We believe that the positives are currently factored and recommend exit at current market price.

Exit – `138

During 9MFY20, PMFL’s PAT de-grew by ~7% mainly due to increasing competition and the rising cost of milk procurement. Hence, we recommend exit from Parag Milk Foods at current market price.

Exit at Cmp:  `154

We recommend EXIT from GIC Housing on account of weakening in asset quality, moderation in profitability (NIM & Spread) and loan book growth for the last 2 quarters.

Exit at CMP: `1,449

Over the last 4 quarters, Nilkamal has reported de-growth in revenue performance due to slowdown in economy that affected overall buying sentiment of consumers. Thus, we recommend exit from stock at current market price.

Over the last 4-5 quarter, Siyaram Silk has reported poor financial performance due to slowdown in their branded textiles. Thus, we recommend exit from stock at current market price.

After a fall in sales numbers in H1 FY20, Q3FY20 sales numbers were flat on account of festive buying. Q3FY20 numbers have also come in below street estimates due to fall in realizations. Going forward, competitive intensity is also likely to increase. As upsides are limited from current levels we would recommend to exit the stock at current levels.

Exit CMP: `1,244

The HDFC bank is currently trading at a higher band of valuation 3.70x of FY21E Book Value. We believe that the positives are currently factored and recommend Exit at the current market price

CMP: `3,591                                        Target Price:`4,353                                          Upside: 21.2%

We forecast HCL to report healthy top-line CAGR of ~14% to `976cr over FY19-22E on the back of government initiatives, new product launches, strong brand name and wide distribution network. On the bottom-line front (reported PAT), we estimate ~23% CAGR to `100cr due to strong revenue and operating margin improvement (on the back of correction in raw material prices). We initiate coverage on HCL with a Buy recommendation and Target Price of `4,353 (23x FY2022E EPS), indicating an upside of ~21% from the current levels.

Exit CMP: `160

Considering the overall slowdown in the plywood industry, the Greenply Industries is facing oversupply in MDF segment, which has resulted into continuous margin pressure. Hence, we recommend investors to exit from the stock at current levels. Moreover, there is a corporate action also in Greenply Industries. It was spin off. On every one share of Greenply Industries (Rs160) the investors have received one new share of Greenpanel Industries (Rs45). We recommend investors to exit from both the stocks at current levels.

CMP – Rs813

Recently, we have seen increased competition in the room AC industry, owing to white level companies like flipkart and Amazon entering the segment. Further, Haier Appliances (Haier Group is positioned No.1 in global home appliance industry for consecutive 10 years) is expanding its capacity by 1mn room AC (17% capacity addition of FY19 AC sales volume) in the coming financial years. Going forward, we believe competition will intensify in this industry. Considering the last one year’s move in the stock and currently trading at 38.7x tailing PE, we believe all the positives are factored into the price. Hence, we recommend exit from stock at current market price. 

Yes Banks Balance sheet deteriorated with asset quality worsened sharply. Quantum of BB and below-rated book remains elevated as a result of which slippage continues to remain high. Upgrade and recovery remain negligible. High bad assets and slippages led to accelerated provisioning, which in turn led to weak core profitability.

The current deal (Capita Infusion) would require RBI approval, given that individual investors/institutions want to invest more than 5% in the bank which can take time. High provisions and the bank’s intention to build retail liability will keep ROE under pressure. Hence, we recommend investors to exit from Yes bank.

GMM posted a good set of numbers for Q2FY20 with a topline and EBITDA and PAT growth of 37.2%, 66.9% and 85.7% respectively. Management has guided that the growth is expected to continue for the rest of the year given strong order backlog. While the glass lined equipment and mixing business continue to post strong growth turnaround in the heavy engineering division helped the company post a record EBIDTA margin of 19.6% for Q2FY20 up 310bps YoY and 210bps QoQ. We assign a target P/E multiple of 25xFY21e EPS estimate of INR 82.4 and revise our target to INR 2059 from INR 1740.

Elantas Beck is trading above our target price of INR 2500 and we would recommend to book full profits given recent rally in the stock price. We had recommended Elantas Back at INR 2155 on the 7th of Feb 2019.

We had recommended ‘Subscribe’ to the IRCTC Ltd IPO based on the fact that it is the only entity authorized by Indian Railways to provide catering services, online railway tickets and packaged drinking water at railway stations and trains in India. It made a strong debut on the stock exchanges at `620, up 93.75% from the issue price of `320 on October 14, 2019.  Considering the bumper listing, we close our view on the stock.

Aurobindo Pharma has received observations for it’s Unit VI plant which manufactures oral formulations for the US market. The company had earlier already received observations or warning letters for  Unit 11 (Intermediate facility), Unit 1(API facility), and Unit 9 (API facility). Unit 3 (oral formulations) had also got 483 in Jun 2019. Unit 7 and Unit 3 are the two biggest plants for Aurobindo which supply oral formulations to the US. Earnings for the company can be severely impacted if the form 483 for unit 3 and unit 7 gets converted into warning letters. Given the regulatory overhang for the company we would recommend to exit the stock at CMP.

Target Price: `4,982

Ultratech Cement is  India’s largest cement manufacturer with ~100mn TPA of capacity spread across the country with a strong presence in Central, North, and West India. The company has added capacity be taking over stressed assets of over ~30mn TPA since 2017. Company would also be taking over Century textile’s cement capacity of 13.4mn TPA from H2FY20 which will give it 40% plus market share in West and Central India which are amongst the best regions. We are positive on the long term prospects of the Company given ramp up from acquired capacities, pricing discipline in the industry and benign energy & freight costs. Reduction in tax rate for domestic companies to 22% from 30% will improve profitability by ~15% for the company.

Target Price: `1,850

L&T is India’s largest EPC company with strong presence across various verticals including Infra, Hydrocarbon and services segment. The company also has a very strong presence in the IT services and NBFC space through it’s various subsidiary companies which are also growth drivers for the company. Management had indicated a very strong pipeline for FY20 of INR 9lakh cr. which includes both domestic as well as international orders. The company has a strong order backlog of ~INR 3lakh cr. and the pipeline provides strong visibility for new order flows for the rest of the year. We are positive on the prospects of the Company given the Government’s thrust on Infrastructure with over 100lakh cr. of investments lined up over the next 5 years. Reduction in tax rate for domestic companies to 22% from 30% will improve profitability by ~15% for the company

We are moving Aurobindo pharma from BUY to HOLD despite a good set of numbers in Q1FY20 as there is increasing uncertainty due to regulatory issues. The US FDA has issued a warning letter for unit 9 which is an API manufacturing facility. The company has also received a form 483 from the US FDA for Unit 3 in Jun 2019 which is an oral formulation unit with 115 final approvals and 10 tentative approvals. Funding of Sandoz acquisition is also expected to increase leverage on balance sheet. Management also needs to clarity on natural decline in Sandoz business being acquired as the portfolio is a matured one.

Name: GMM Pfaulder                           CMP: `1,520                           Target: `1,740

Post reduction of tax rates by the Government effective tax rate for GMM would come down to 25.2% as compared to our earlier estimate of 33%. As a result EPS gets upgraded from INR 67.8 to INR 75.6 for FY21. Therefore we upgrade our target price to INR 1740 (23xFY21 EPS estimate) from  INR 1570. We upgrade the stock to a buy with a revised buy upto price of INR 1550.

We are terminating our coverage on Capacite Infraprojects from the 17th of July 2019. We had initiated coverage on Capacite Infraprojects on the 28th of May 2018 at a price of INR 273.

CMP: 1470             Target Price: 1570                     Upside: 6.8%

All the Indian agrochemical and specialty chemical companies are increasing their capacities in view of the robust global agrochemical demand outlook as increasingly capacities are shifting to India from China. As of end of 4QFY19 company’s order book is up 50% yoy which provides strong revenue visibility for FY20. New capacity has come online in Q1FY20 which will drive revenue growth in FY20. Post the 4QFY19 numbers we roll over to FY21 and increase the target price to 1570 ( 30x FY2021 EPS estimate of INR 49.1).

CMP: `488                                          Target Price: `612                              Upside: 25.4%

Company posted good set of numbers for 4QFY19. Revenues were up by 22.2% yoy to INR 1259 cr. while EBIDA was up by 36.1% yoy to INR 137cr. EBITDA margins expanded by 112bps yoy to 10.9% while net profits were up by 20.8% yoy to INR 60cr. Company has an order backlog of INR 4,700 cr and has guided for growth of 17-18% for FY20. Post the Q4FY19 numbers we assign a target P/E multiple of 20xFY20E and revise our target price to INR 612.

We have recommended SUBSCRIBE to the issue and stock has given a positive return of around 7% since listing on 11th April 2019. Investor wishes to book quick profit can exit the stock, However RVNL is good bet for investment purpose in railway infrastructure space for long term prospective.

CMP: `649                Target Price: `775              Upside: 19.4%

RBL is well on track to achieve its vision 2020 Goals. Retail asset contributes 29% if advance and growing at a healthy rate( 56%yoy). Changing advance mix and improving yields helping NIM (4.12% for Q3FY19)

We have recommended SUBSCRIBE to the issue and stock has given a positive listing of around 4%.

CMP: 1,265      Target Price: 1,400                 Upside: 10.7%

Since all the Indian agrochemical companies are increasing their capacities in view of the robust global agrochemical demand outlook, we marginally increase the target price to 1400 ( 30x FY2020 EPS). The stock has given 76% return since initiation. 

Considering, the past liquidity issue for NBFC, subdued performance in Q3FY19 and concern raised by cobra post yesterday, we recommend to exit DHFL at current price of `162.

CMP – `7,245     Target Price – `8,200      Upside – 13.2%

The Stock Has Reported A 16% Rise Since Our Initiation On 17th August 2018. In View Of Positive Demand Outlook Especially Rural, We Are Increasing Our Target Price To Rs 8200 At 38x FY2020 Earnings.

CMP; `759              Target Price: `870                    Upside: 14.6%

Aurobindo Has Announced Acquiring Dermatology And Oral Solids Businesses From Sandoz Inc., USA, Making It 2nd Largest Generic Player In The US By Prescriptions. The Deal Can Add ~`11% To EPS Growth In FY2020. We Maintain Our Buy With A Price Target Of `870.     

CMP: `7,236   Traget Price: `8,200  Upside: 13.3%

The Stock Has Reported A 16% Rise Since Our Initiation On 17th August 2018. In View Of Positive Demand Outlook Especially Rural, We Are Increasing Our Target Price To Rs.8,200 At 38x FY2020 Earnings.

CMP: `640       Target Price: `690           Upside: 7.8%
The Changing In Advance Mix Toward Higher Yielding Asset Is Driving NIM And Other Income And RBL Have Increased Provision Towards The Stressed Portfolio Of MFI Loans. Hence We Raise Our Target Price.

CMP: `974                      Target Price: `1,071                 Upside: 10%

We Raise The Target Price Of Safari Industries By 10% In View Of Good Demand Traction.

CMP: `1,169                  Target Price: `1,287                Upside: 10%

We Raise The Target Price Of Gmm Pfaulder By 10% In View Of Good Demand Traction.

Moderate Portfolio – CMP: `446       Target Price: `560         Upside: 25.6%

Considering The Strong Leadership In Hindi News Channel, Gradual Reduction In Radio Business Losses And 2019 Lok Sabha Elections (Anticipation Of Strong Ad Spends), We Give BUY Rating On The Stock.

CMP: ₹1,081    Target Price: ₹1,243     Upside: 15%

We Are Upgrading The Target Price Of Bata India By 15% To ₹1,243 On Account Of Healthy Growth On Top-Line Front As Well As Better Operating Margin In 1QFY19.

CMP: Rs.128                Target Price: Rs.156

Considering The Strong CV Demand Due To Change In BS-VI Emission Norms (Will Trigger Pre-Buying Activities), Pick Up In Construction Activities And No Significant Impact On Industry Due To Recent Axle Load Norms, We Recommend BUY On Ashok Leyland At Current Valuations.

Exit From Matrimony.Com At CMP:- Rs573

Considering The Subdued 1QFY19 Performance And Tough Competition Strengthened By Deep Discount Subscription Strategy By Competitors, We Recommend Investors To Exit From The Stock At Current Level (Rs573).

CMP: ₹788     Target Price: ₹870      Upside: 10.5%

We Are Increasing The Target Price Of Safari Industries To ‘870 In View Of Continued Demand Momentum In The Organized Luggage Industry.

CMP: ₹103          Target Price: ₹127            Upside: 23.3%

We Expect Inox Wind To Report Exponential Growth In Top-Line And Bottom-Line Over FY19-20E. The Growth Would Be Led By Changing Renewable Energy Industry Dynamics In Favor Of Wind Energy Segment Viz. Changes In Auction Regime From Feed-In-Tariff (FIT) To Reverse Auction Regime And Government’s Guidance For 10GW Auction In FY19 And FY20 Each. Further, Being The Lowest Wind Turbine Producer Globally Coupled With Healthy Order Book Of 950MW And Low Debt Equity, We Believe INOX Wind Is In A Sweet Spot To Tap The Upcoming Opportunity In Renewable Energy Segments. At The CMP Of INR 103, Inox Wind Is Trading At 6.5x FY20E EPS Of INR 16. Further, Considering The Above Positives, We Assign A Multiple Of 8x On FY20EPS To Arrive At A Target Price Of INR 127 (Potential Upside Of 23% Over A Period Of Next 10-12 Months).

CMP:  `6,206                           TP:  `7,500            Upside: 20.8%

TTK Prestige Has Emerged As One Of The Leading Brands In Kitchen Appliances In India After Its Successful Transformation From A Single Product Company To Offering An Entire Gamut Of Home And Kitchen Appliances. We Feel That The Company Is On The Cusp Of Exponential Growth Break Out Where The Company Is Launching New Products While Expanding Its Distribution Reach. We Are Expecting A CAGR Of 18% In Revenue And 25% In PAT Over FY2018-20. Hence, We Recommend A Buy On The Stock With A Target Price Of `7500 ( 35x FY2020 Earnings).

CMP: `984          Target Price: `1,100              Upside: 11.8%

We Are Increasing The Target Price Of GMM Pfaudler To 1100 In View Of Continued Demand Momentum From The User Industries. 

CMP: ₹788     Target Price: ₹870      Upside: 10.5%

We Are Increasing The Target Price Of Safari Industries To ‘870 In View Of Continued Demand Momentum In The Organized Luggage Industry.

CMP: ₹918    Target Price: ₹1,007     Upside: 9.6%

We Are Upgrading The Target Price Of BATA India By 9.6% To ₹1,007 On An Account Of Healthy Growth In Top-Line Front As Well As Better Operating Marging In 1QFY19.

CMP: ₹842 Target Price: ₹955 Upside: 13%

We Are Upgrading The Target Price Of BATA India By 13% To ₹955 On An Account Of Healthy Growth In Top-Line Front As Well As Better Operating Marging In 1QFY19.

CMP: ₹603     TP: ₹780      Upside: 28.7%

We Expect Aurobindo To Report Net Revenue CAGR Of ~13% & Net Profit To Grow At ~5% CAGR During FY2018-20E, Due To Increased R&D Expenditure. However, Valuations Of The Company Are Cheap V/S Its Peers And Own Fair Multiples Of 17-18x. We Recommend BUY Rating.

CMP: ₹693     TP:₹800      Upside: 15.4%

We Are Increasing The Target Price Of Safari Industries To 800 At 40x FY2020 Earnings In View Of Continued Demand Momentum.

CMP: ₹565             TP: ₹670          Upside: 18.5%

We Believe Advance To Grow At A Healthy CAGR Of 35% Over FY18-20E. Below Peers Level ROA (1.2% FY18) To Expand Led By Margin Expansion And Lower Credit Cost.

CMP: ₹348        TP: ₹418       Upside: 20.1%

Well Planned Strategy To Grow Small Business Loans And Cross-Selling Would Propel Fees Income. We Expect YES To Grow Its Advance Much Higher Than Industry And Improvement In Asset Quality To Support Profitability.

CMP: ₹601                                                            Target Price: ₹780                                                      Upside: 29%

We Expect Aurobindo To Report Net Revenue CAGR Of ~13% & Net Profit To Grow At ~5% CAGR During FY2018-20E, Due To Increased R&D Expenditure. However, Valuations Of The Company Are Cheap V/S Its Peers And Own Fair Multiples Of 17-18x. We Recommend BUY Rating.

CMP: ₹222                                                            Target Price: ₹350                                                      Upside: 57%

We Expect JSPL’s Top Line To Grow At 27% CAGR Over FY19-FY20 On The Back Of Strong Steel Demand And Capacity Addition (Mostly From Real Estate, Automotive & Infra Sector). On The Bottom Line Front, We Expect JSPL To Turn In To Profit By FY19 On Back Of Strong Operating Margin Improvement (Due To Higher Utilization In Steel And Power Segment And Simultaneous Reduction In Debt Level). Along With That, The Management Intend To Increase The Shareholders Value By Either Monetizing Some The Asset Or Building It To Improve The Profitability Of JSPL. We Recommend To BUY The Stock With A Target Price Of ₹350 Based On Peer Comparison Method, We Value The Steel Segment On EV/Tonne Basis And Power Business As Per EW/MW Basis.

CMP: ₹862                                                            Target Price: ₹948                                                      Upside: 10%

We Have Revised Our Target Price From `896 To `948 On An Anticipation Of Strong Sales Growth And Better Operating Margin (Increase In Volume Of Premium Products I.E. Hush Puppies, Naturalizer, Power, Etc).

GMM Pfaudler Ltd. – CMP ₹775 Target Price – ₹1020

GMM Is The Indian Market Leader In Glass-Lined Steel Equipment Used In Corrosive Chemical Processes Of Agrochemicals, Specialty Chemical And Pharma Sector. GMM Has A Strong And Sticky Clientele Comprising Global Giants In Chemicals And Pharma Space. Indian Agrochemicals And Specialty Chemicals Players Are Seeing A Buoyant Demand Due To Slowdown In Chinese Competition. Most Of These Companies Are Expanding Or Upgrading Their Manufacturing Facilities Which Will Augur Well For GMM.  Strong Order Inflow From The User Industries Is Likely To Provide 20%+ Growth Outlook For Next Couple Of Years. Hence, We Recommend A Buy On The Stock With A Target Price Of ₹1020 ( 24x FY2020 Earnings).

Exit From Navkar Corporation (NCL): CMP ₹133

In FY18, The Company Has Reported Subdued Performance, Both On Top-Line & Bottom-Line Growth Mainly To Due Increase In Volume Of Direct Port Delivery (DPD), Which Is Expected To Increase Further Increase. Thus, We Are Advising Client To Exit From The Stock.

Shriram Transport Finance Company Ltd (BUY) – CMP: ₹1,466, Target Price: ₹1,764

SHTF Is In The Sweet Spot With Benefits From Stronger CV Volumes, NIMs Unaffected By Rising Bond Yields On The Back Of Stronger Pricing Power And An Enhancing ROE By 750bps Over FY18-20E, Supported By Decline In Credit Cost.

Going Forward, We Are Expecting LT Foods Would Get Pressure On Operating Margin Due To Pricing Constraint (Higher Production Of Rice). Further, Newly Opened European Operation (Rotterdam) Is Expect To Report Operating Losses Which Would Create Further Pressure On Profitability. Thus We Are Recommending Exit On Stocks At Rs.66

 Bata India (BUY) – CMP: ₹779, Target Price: ₹896

BIL Is The Largest Footwear Retailer In India, Offering Footwear, Accessories And Bags Across Brands. We Expect BIL To Report Net PAT CAGR Of ~16% To ~`3115cr Over FY2018-20E Mainly Due To New Product Launches, Higher Number Of Stores Addition And Focus On Women’s High Growth Segment And Margin Improvement

Amber Enterprises (BUY)–  CMP: ₹1026, Target Price: ₹1230

Amber Enterprises (Amber) Is The Market Leader In The Room Air Conditioner (RAC) Outsourced Manufacturing Space In India With A Market Share Of ~55%. It Has Emerged As A One-Stop Solutions Provider For The Major Brands In The RAC Industry And Currently Serves Eight Out Of The Ten Top RAC Brands In India. Amber Has Posted A CAGR Of 19%/26% In Revenue/ Net Profit Over FY13-18. It Would Continue To Post Robust Growth Of 20%+ Over The Next Few Years Owing To Its Higher Capacity Utilization, Buoyant Demand In RACs/ Consumer Electronics And Reduction In Leverage. Hence We Recommend A Buy On The Stock.

We Expect Mahindra & Mahindra (M&M) To Report Net Revenue CAGR Of ~15% To ~₹62,218cr Over FY2018-20E Mainly Due To Healthy Growth In Automobile Segment Like Utility Vehicles (On The Back Of New Launches And Facelift Of Some Models) And Strong Growth In Tractors Segment Driven By Strong Brand Recall And Improvement In Rural Sentiment. Further On The Bottom-Line Front, We Expect CAGR Of ~15% To ₹4771cr Over The Same Period On The Back Of Margin Improvement. Thus, We Recommend An Accumulate Rating On The Stock With Target Price Of ₹1050.

In 4QFY18, The Company Has Reported De-Growth Of 51% Yoy To `67cr On Bottom-Line Front Which Is Below Our Expectation. Hence We Are Advising To Client To Book The Profit In Alkem Laboratories.

During The 4QFY18, The Company Reported Growth Of ~4% Yoy To `661cr On Top-Line Front Which Is Below Our Expectation And On Bottom-Line Front Reported De-Growth Of ~22% Yoy To `31cr On Back Of Lower Revenue And Poor Operating Performance (Mainly Impacted Due To Increase In Power And Fuel Costs). Considering Below Expectation In 4QFY18 Results And Increase In Gas Prices, Which Will Further Impact HSIL. Hence We Are Downgrading Stock From Buy To Neutral Rating.

GMM Pfaudler Has Given 31% Returns Since Our Coverage Initiated On The Stock, Last Month. In View Of Continued Traction In Its User Industries Like Pharma And Agrochemical, We Are Increasing Our Target Price To ₹1020  (  Revised Target Multiple Of 24x On Its FY2020 Earnings). In View Of Limited Upside, We Maintain Accumulate Rating On The Stock.

We Expect KEI To Report Net Revenue CAGR Of ~16% To ~`4,646cr Over FY2018-19E Mainly Due To (A) Higher Order Book Execution In EPC Segment; (B) Growth In EHV Business; (C) Higher B2C Sales; And (D) Higher Exports. On The Bottom-Line Front, We Expect A CAGR Of ~19% To `207cr Over The Same Period On The Back Strong Revenue And Lower Interest Costs. At The CMP Of `481, The Stock Trades At 18.0x Its FY2020E EPS Of `26.8. Thus, We Maintain Our Buy Rating With The Revised Target Price Of `589.

The Stock At CMP Of ₹​460 Has Given A Return Of 55%. Considering The Recent Past Move In Share Price And Valuation, We Recommend To Book Profit At CMP.

We Are Downgrading Century Plyboards At CMP Of ₹​280 From Buy To Neutral As Company Posted Weak 4QFY18 Result And Rupees Has Also Depreciated By 10% From January 2018 As Company Imports 50% Of Raw Material.

We Have Slightly Upgraded Our Earnings Estimates In View Of New Products Pipeline, Better Off Take In Whey Protein And The Revised Margin Guidance From The Management. We Now Expect PARAG To Report A CAGR Of ~18%/37% In Revenue/ Earnings Over FY18-20E. The Stock Has Given 35% Return Since Our Initiation In April. The Stock Is Currently Trading At 17.5x Its FY2020 Earnings, Which Still Looks Attractive Looking At Its Evolving FMCG Story. Hence We
Recommend BUY With A Target Price Of ₹410 (21x FY2020E EPS).

GMM Pfaudler Has Given 16% Returns Since Our Coverage Initiated On The Stock, Last Month. In View Of Continued Traction In Its User Industries Like Pharma And Agrochemical, We Are Increasing Our Target Price To  ₹900 From  ₹861 (Target Multiple Of 21x On Its FY2020 Earnings).

Prism Johnson Ltd (PJL) Is An Integrated Building Materials Company And Has A Wide Range Of Products From Cement, Ready-Mixed Concrete (RMC), Tiles, Bath Products To Kitchens (TBK). TBK Contribute 43% Of The Revenue. Lately, Jump In Natural Gas Price Has Impacted EBITDA Margin Of Other Listed Ceramics Company. TBK Segment Is Reporting Loss And Jump In Natural Gas Price Would Impact Margin And PJL Revival Process. Hence Considering This We Discontinue Our Coverage In PJL

We Are Upgrading Target Price Of Safari Industries To  ₹720 From  ₹650 As We Are Upgrading Target Multiple From 36x To 40x In View Of Buoyancy.

We Have Stopped Covering The Asain Granito India Ltd. Stock From February 19, 2018.

We Have Stopped Covering The Karur Vysya Stock From March 12, 2018.

We Have Stopped Covering The Ruchira Paper Stock From February 09, 2018.