Tractor upcycle to continue in FY2022 as well. We expect the farm equipment segment to remain robust in the near term driven by a normal monsoon (high correlation of monsoons with tractor sales), strong kharif sowing supporte
Our bull-case fair value of the stock comes to Rs 950/share if the capital allocation concerns are addressed, while the current base-case fair value is Rs 650/share as we still model subsidiary losses to continue till FY2023.
We see limited visibility of the company reporting profits anytime soon due to a weak outlook on volumes and thus we downgrade the stock to ‘sell’ (from ‘buy’ earlier) and revise fair value to Rs 90 (from Rs 130).
Net revenues came in at Rs 9,000 crore (-35% y-o-y), 9% above our expectations due to better-than-expected ASPs in both tractor and automotive business. Automotive division revenues came in at Rs 5,510 crore (-46% y-o-y).
With m-o-m improvement, STFC collected EMIs from about 52% of its borrowers, translating to 33%+ collection efficiency (about 50% of its CVs were on road); this compares with typical 70%+ stage 1 collections.
We expect tariffs to fall further by over 20% in FY2023, as PNGRB will prospectively adjust the surplus profits
being realized by GSPL during FY2019- 22E period, due to volumes being substantially higher than PNGRB’s
ARBP has been gradually moving up the complexity curve for sterile products, with range of approvals, including colored products, PFS products, large volume lyophilized products and complex API products.
Bajaj General Insurance's management will continue to focus on long-term profitability and unlike ICICI Lombard, is willing to ride volatility - a key reason for its higher exposure to crop leading to higher claims ratio and
Lifting of the lockdown would release pent-up demand from incomplete repainting projects but we do not expect much new repainting work (especially in urban markets), nor a pick-up in fresh painting (construction activity).