India: Eicher Motors, Dr. Reddy’s Laboratories, Gland Pharma Ltd, Jk Lakshmi Cement, V.I.P. Industries, Xiaomi Corp and more

• Eicher Motors (EIM IN) is well-positioned to offset margin pressures due to its aspirational brand, the success of its new models and exports. 
• Easing supply issues along with newer export markets provide a compelling runway for revenue growth. 
• While our estimates are in line with consensus,  we believe the YTD outperformance is likely to continue and any opportunities presented amidst market volatility must be exploited. 

• Dr Reddy Q4FY22 reported revenue growth of 14.8% YoY (vs. our expectations of 8.0% YoY), led by strong performance in geographies such as the US, India, and Emerging Markets. 
• The company is building a global pipeline of biosimilars, developments of NCE for Immuno-oncology, and building up a Neutraceuticals portfolio, vaccines, CDMO, and digital healthcare platforms
• However, high inflation could decrease margins prompting us to reduce TP to Rs 4,500/share.

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• Gland Pharma reported a good set of numbers with revenue for the Q4FY22 growing by 24.3% on a YoY basis. 
• We believe stock trades at rich valuations of PE of 36.2x and 30.4x for FY23E and FY24E respectively
• We, therefore, recommend a HOLD rating on the stock with a target price of Rs 3,300/share.

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• JKLC reported strong Volume/Revenue/EBITDA/APAT growth of 8%/13%/3%/26% YoY and 28%/25%/89%/190% QoQ.
• The encouraging growth on all fronts was on account of higher volume, superior realization, stringent cost management, and lower tax
• We retain our BUY rating on the stock and roll over our estimate to FY24 and value the company at 7x of its FY24E EV/EBITDA to arrive at a target price of Rs 620/share, implying an upside of 48% from the CMP.

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• VIP Industries (VIP) Q4 FY22 results reported a weak set of numbers given the seasonally weak quarter.
• Revenue stood at Rs 356 Cr up 46% YoY on account of the low base & down 13% QoQ due to the 3rd wave of Covid-19 Omnicron variant
• Revising our FY23/24 estimates adjusting for the new cost environment we revise our recommendation from Buy to HOLD with a revised TP of Rs 596/share (earlier: Rs 600/share) valuing the stock at 47x FY24E EPS.

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Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. China Jinmao Holdings
2. Guangzhou R&F Properties
3. Sunac China Holdings
4. Greenland Hong Kong Holdings
5. Evergrande

and more…