Bharti Airtel Rating: Buy — Q4 results came as a positive surprise
Growth in data subscribers should raise market share; FY21-23 estimates up 3-6%. TP revised to Rs 660 from Rs 585; ‘Buy’ retained
Govt bailout lowers NPL risk from SME loans
Pick-up in demand will be key; aid for NBFCs indequate; PSUs have higher SME and IIB & SHTF, CV/SME loans.
Havells India Rating: Buy; a subdued showing in the final quarter
Covid-19 pain was visible in results; balance sheet is robust; ‘Buy’ maintained with target price of Rs 660
Analyst Corner| Blue Star: Target price revised down to Rs 630
Lockdown 1.0 in India began on 25 March 2020. AC demand slowed down from March 15, i.e. 17 days (19% of the quarter) and projects business (MEP) impact for 10-12 days (12%).
Adani Ports Rating: Buy — Cash flow has improved, volumes expected to go up as operations normalise
Margins impacted due to cargo mix; FY20 volume up 8% y-o-y; traffic likely to rise gradually; FY21-22 EPS down 5-7%; ‘Buy’ retained
Analyst Corner: Property sector – initiate ‘buy’; Godrej Properties top pick
The bright spot in the Indian real estate market viz leasing is likely to see an abrupt end to its rental uptick cycle.
Analyst Corner: VBL – retain ‘buy’; may stay range-bound in near term
Varun Beverages (VBL) reported a strong growth in volumes, Ebitda and earnings during Q1CY20. This was, however, led by the acquired territories of south & west not there in the base.
Marico Rating: ‘Buy’, risk-reward attractive
Marico's Q4FY20 was expectedly weak on topline but margin beat (lower RM & A&P) drove a positive earning surprise.
Gas Utilities – Industrial PNG, CNG volumes likely to be hit
FY21/22e EPS lowered by 22-33/9-13%; softer LNG prices a positive; GUJGA and MGL are to be preferred.
Axis Bank Rating: ‘Buy’ — Provisions against Covid-19 cast shadow
Showing of moratorium book will be key; outlook for earnings in FY21 is weak; ‘Buy’ maintained with TP of Rs 530
Havells rating: Buy; Structural growth story by aided market share
Industry participants are alluding to an existing inventory stock, which could clear once demand resumes (strong summer in India).
Equity Strategy: Lockdown waivers, IMD offer relief
But states, companies may be slow to resume activity; forecast of normal rainfall augurs well for inflation
Computer Services & IT Consulting Q4 preview: Covid-19 effect on results to be limited
It will dominate discussions though; sharply lower and wider range guidance for FY21/Q1 is expected.
Analyst Corner: Pharmaceuticals sector – FDA delays remain a key uncertainty after logistics
While production is on, logistics is the key challenge both for raw material and finished goods. FDA delays remain a key uncertainty after logistics.
Coronavirus crisis to impact FY21e revenues by 5.5-7.5%
Infosys & TCS remain our preferred picks as we expect better earnings & multiple defence given high quality franchise.
Analyst Corner: IT services and consulting firms face COVID-19 impact
With Covid-19 situation escalating, Indian IT services cos could be impacted in multiple ways in the near-term, cuts in client spend, travel restrictions, closures of offices, INR depreciation.
Infosys, TechM led $500mn+ deals in FY20: Digital, ERS capabilities key driver of acquisition
There have been a greater number of smaller deals (<$25 mn) than in the past. We estimate inorganic contribution to FY21e revenue to be 2%/ 1.7%/0.7% for TechM/HCL Tech/Infosys.
Analysis: TechMahindra ahead of Infy, Wipro in growth, margin deviations
Two metrics in particular are key: (1) q-o-q growth (US dollar or constant currency) and (2) Ebit margin.
India’s GDP numbers: Power demand growth a silver lining
With most other indicators still weak, earnings outlook is challenging; cause for caution
India’s domestic natural gas prices set to nearly halve to 10-year lows of $2
SOE E&Ps will suffer while IGL, MGL and GAIL stand to gain; may see govt fixing APM price framework
Analyst Corner: ‘Hold’ on BPCL; keep faith in refining turnaround
Volume performance was mixed too, with share in LPG & ATF up and petrol steady but diesel down ~60bps q/q that management indicated has since reversed in Jan as discounts by competitors have ebbed.
Analyst Corner: ‘Hold’ on Apollo Hospitals Enterprise; PT at Rs 1,575
AHLL also reported strong growth. We expect growth to moderate and margin improvement to be limited from current levels.
Sun Pharma Rating ‘buy’: Q3 results were in line with expectations
India revenue growth of 13% key positive; adjusting for Q3 and lower Taro sales, FY20/21/22e EPS down 4/7/1%; ‘Buy’ maintained
Bharti Airtel rating: Hold — A strong quarter for the company
FY20/21/22e Ebitda up 5/9/9% to factor in results and higher-than-expected price rise; TP revised to Rs 468; ‘Hold’ maintained
State Bank of India Rating: Buy; Results were largely in line with estimates
FY20e EPS up 12% to factor in recovery from IBC account; valuations are attractive; ‘Buy’ retained
Analyst Corner: Retain ‘buy’ on JLR with target price of Rs 220
Standalone performance remained weak with CV margins additionally impacted by `2.4 billion one-off related to prior periods.
Havells India Rating | Buy — Weak showing by company in third quarter
Almost 70% of HAVL’s biz mix is B2C and the remainder B2B. Weak macros, liquidity challenges and slowdown in infra segment sharply impacted demand for industrial cables and switchgears as well as professional lighting.
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