V-Mart Retail’s (VMart) Q4FY19 revenue growth of 15.9% y-o-y came in line with estimate. However, Ebitda and adjusted PAT decline of 23% and 60% y-o-y, respectively, belied it. SSSG grew mere 3.5% y-o-y owing to softer grow
JSPL has achieved Q4FY19 production/sales volume (highest ever) of 1.5mt/1.45mt. After near stagnant sales volumes over FY15-18 at 3.1-3.8mt, FY19 sales volume at 5.12mt translates in to a 36% y-o-y growth.
In light of increased aggression from offline retail giant as well as Big Basket, entry of Flipkart’s SuperMart, Amazon Pantry and pressure on gross margins, we maintain ‘Reduce’ with a target price of Rs 1,300.
We expect Vedanta to turn around as operating leverage enhances performance at Zn-international and O&G divisions. Cost efficiencies at aluminium business should also yield better results. We maintain ‘BUY/SO’ with target
Importantly, it also removes regulatory uncertainties regarding fund infusion. Besides, DLF’s operations are improving gradually; we believe, the pace of inventory liquidation will be a key trigger for the stock.
VEDL’s H2FY19 operating numbers were mixed. Key highlights, O&G production fell 2% due to natural decline at Mangla field, though gas volumes were better; production at Zn-India was lower due to geo-technical problems at RA