In today’s briefing:
- Matrimony.com (MATRIM IN) | Poor Quality Growth & Perplexing Operations
- Dr. Reddy’s Laboratories (DRRD IN): India Business Still the Brightest Spot; Slow Recovery in the US
- NVIDIA Corporation: Supporting The Metaverse
- Lululemon Athletica: Expansion In Spain & Other Drivers
- Marathon Oil: Enhancement of Retail Operations & Other Drivers
- Gap Inc: New Experience Centre & Other Updates
- Ross Stores: New Store Additions & Other Drivers
Matrimony.com (MATRIM IN) | Poor Quality Growth & Perplexing Operations
- Matrimony.com (MATRIM IN) is a leading player with the highest market share in the Indian matchmaking market.
- A close examination of the marketing expenses and subscriber additions reveals poor quality growth.
- Employee remuneration is perplexing and so is the decision that leads to a reduction in PP&E.
Dr. Reddy’s Laboratories (DRRD IN): India Business Still the Brightest Spot; Slow Recovery in the US
- Dr. Reddy’s Laboratories (DRRD IN) reported Q1FY23 results, with revenue growing 6% and 108% y/y, mainly driven by a 26% y/y growth in India business.
- Despite price erosion and increasing competition in some of the key products, North America revenue grew 2% y/y, driven by launch of new products and favorable forex rates.
- Bottom line got benefitted from one-off items including settlement income and non-core brand divestment proceeds. Net profit surged 108% y/y.
NVIDIA Corporation: Supporting The Metaverse
- Nvidia has been among the priciest semiconductor stocks for a while now.
- The company matched market expectations and delivered an earnings beat though the stock is still very expensive.
- We provide the stock of Nvidia with a ‘Hold’ rating with a revision in the target price.
Lululemon Athletica: Expansion In Spain & Other Drivers
- Throughout the second quarter, Lululemon’s momentum remained strong.
- The company’s total revenue accelerated by 29% compared to last year and 28% on a 3-year CAGR basis, helping the company surpass Wall Street expectations.
- It has been benefitting heavily from this launch as hiking has become increasingly popular among visitors since the pandemic.
Marathon Oil: Enhancement of Retail Operations & Other Drivers
- Marathon’s previous quarter was one of its best financial performances since transitioning to an independent E&P company.
- Despite these factors, the company delivered an all-around beat and continues to reward its shareholders with capital returns.
- In this report, we have carried out a fundamental analysis of the historical financial statements of the company.
Gap Inc: New Experience Centre & Other Updates
- Gap saw a decline in its overall revenues in the past quarter but its results were still above analyst expectations.
- The company’s overall revenues of $3.86 billion were down 8% from the prior year or 7% when measured in constant currency but it did deliver an earnings beat.
- Further, they anticipate the near-term downturn in demand at Gap outlets, which they attribute to the persistent backlash from lower-income consumers.
Ross Stores: New Store Additions & Other Drivers
- Ross Stores had quite a disappointing quarter where its revenues were well below Wall Street expectations.
- Comparable store sales were low in comparison to a strong increase in the second quarter of the last year.
- We provide the stock of Ross Stores with a ‘Hold’ rating with a revision in the market price.
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