In today’s briefing:
- NIFTY Bank Index Rebalance Preview: BOB Should Replace RBL Bank
- Asia HY Monthly – Ratings Transition Report – Lucror Analytics
- Crompton Greaves Consumer Electricals | Q3FY22 Result Update
- Project execution risk still not at bay
- Near-term outperformance from Naukri factored into valuation
- Crompton Greaves
Consumer Electrials - Century Plyboards Ltd | Q3FY22 Result Update
NIFTY Bank Index Rebalance Preview: BOB Should Replace RBL Bank
- The review period for the NSEBANK INDEX ended on 31 Jan. The rebalance will be effective after the close on 30 March and the announcement will come end February.
- Based on the index methodology, we see Bank Of Baroda (BOB IN) replacing RBL Bank Ltd (RBK IN) in the index.
- Passive trackers will need to buy 11 days of delivery volume on Bank Of Baroda (BOB IN) while selling 5 days of delivery volume on RBL Bank Ltd (RBK IN).
Asia HY Monthly – Ratings Transition Report – Lucror Analytics
This month, we undertake a study of the ratings evolution of all the issuers that have been included in the Lucror Asia HY index (commenced in 2013).
The Asia Monthly focuses on providing updates on recent events, information on new issues and spread movements, as well as summarising our top picks, and discussing specific areas of interest in the “In-Focus” section. The Asia Monthly is intended to broaden investors’ understanding of the Asian USD high-yield market.
Crompton Greaves Consumer Electricals | Q3FY22 Result Update
Soft result after performing well in five consecutive quarters
Project execution risk still not at bay
HPCL’s reported EBITDA missed our estimates significantly led by lower marketing gross margin (at INR3/lit, 46% est. miss), while GRM was in line at USD6.4/bbl. Refining throughput stood at 4.2mmt (+6% YoY, +68% QoQ). The company completed the expansion of its Mumbai refinery and is running at its optimal capacity as highlighted in the earnings concall. SG GRM has further improved to USD5.9/bbl in Jan’22 YTD, and the ramp up at Mumbai refinery should see near-term margin expansion. The Vizag refinery is running at >100% capacity utilization.
Near-term outperformance from Naukri factored into valuation
Info Edge Ltd (INFOE) delivered better-than-expected revenue in 3QFY22, with standalone revenue growth of 48% YoY (estimate of +42%). On the other hand, the EBITDA margin missed estimates due to higher ad spending in the 99acres business. 3Q billing also came in ahead of our estimate, led by a large beat in Naukri (80% YoY). The management has indicated continued strength in the Naukri business over the near term, along with the large impact of a price increase in FY22E billing.
Crompton Greaves
Consumer Electrials
Market leader in the domestic fan industry with value market share of 27%. The company has enhanced focus on increasing market share in home appliances categories like (air coolers, water heater and kitchen appliances) Robust balance sheet with RoE & RoCE of 34% & 39% (three-year average), respectively, with stringent working capital policy Q3FY22 Results: Delivered in line performance; premium fans reported 30% YoY…
Century Plyboards Ltd | Q3FY22 Result Update
Record revenue with beat on all fronts
Before it’s here, it’s on Smartkarma
