In today’s briefing:
- India Channel Insight #37 | Escorts & Mahindra & Mahindra (Tractors)
- Metropolis Healthcare (METROHL IN): Adani & Apollo Eyeing Majority Stake? Could Outperform Dr Lal
- IFB Industries – Margin Pressures Impacts Profitability; Confident of Healthy Demand in Future
- Kansai Nerolac – Results Reviews – Weakest Among Peers; Pain Seems Priced In
- Marksans Pharma- Management Meet Update
- Rossari Biotech: Complete Pass-Through Is a Challenge in Formulations Biz
- Sobha – Steady Operating Performance; Deleveraging Balance Sheet
- Gland Pharma- Management Meet Update
India Channel Insight #37 | Escorts & Mahindra & Mahindra (Tractors)
- Consumer sentiment and demand environment is stable in Rural India.
- There is a bit of optimism and hope of breaching FY20 volumes in FY23, supported with some pricing action.
- Technical/Product issues are leading to a loss of market share for Escorts Ltd (ESC IN)
Metropolis Healthcare (METROHL IN): Adani & Apollo Eyeing Majority Stake? Could Outperform Dr Lal
- Several press reports regarding potential takeover speculations related to Indian diagnostics company Metropolis Healthcare Limited (METROHL IN) have emerged in the Indian press over the last few days.
- Metropolis Healthcare Limited currently has a total market capitalization of US$1bn.
- Below is a closer look at the details of the situation.
IFB Industries – Margin Pressures Impacts Profitability; Confident of Healthy Demand in Future
- Front-load Washing Machine update: Front-load Washing Machine revenue grew by 2.8% YoY in 4QFY22 to Rs2.38bn. Sales were affected in Dec’21 and Jan’22 due to the third covid wave.
- Top-load Washing Machine update: Sales of top-load Washing Machines increased by 33.6% YoY in 4QFY22 to Rs972mn.
- Outlook: Over FY21-FY24E, we expect IFB to post 22.4% revenue CAGR. With the commissioning of self- manufacturing plant, addition of AC OEMs and scale-up in other categories, we expect earnings CAGR of 45.2% over FY21-FY24E.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Kansai Nerolac – Results Reviews – Weakest Among Peers; Pain Seems Priced In
- Q4FY22 highlights: Standalone revenue grew 6% YoY to INR 14.1bn (in-line).
- In decorative segment, volume declined 7-8%/value remained flat YoY in Q4; performance continued to lag the top two.
- FY22 price hikes in decorative/industrial coatings stood at ~21/18%.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Marksans Pharma- Management Meet Update
- Efforts around portfolio selection and disciplined R&D has helped the company profitably build its export formulations business
- Outlook: The company will incur capital expenditure on its existing facility upgradation; and it is also open to pursuing an acquisition (~Rs2,000mn is the allocation).
- Targeting customer acquisition and geographic expansion in the US market: The company has added new retailers in the US market with an intention to penetrate tier 2 & tier 3 cities.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Rossari Biotech: Complete Pass-Through Is a Challenge in Formulations Biz
- ROSSARI has taken some price hikes from March’22 in order to cope with the ongoing inflationary challenges.
- Formulations business is the core strength of ROSSARI’s business model and inability to pass on the cost impact would mean margin pressure for two more quarters
- On a consolidated basis, the management has guided for Rs20bn revenue and Rs2.5bn EBITDA for FY23.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Sobha – Steady Operating Performance; Deleveraging Balance Sheet
- Sales volume increases by 1.5% QoQ and by 0.4% YoY: Average sales volume increased by 1.5% QoQ from ~1.32mn sqft in 3QFY22 to ~1.34mn sqft in 4QFY22 and realization increased by 4.4% QoQ to Rs 8,265/sqft.
- In 4QFY22, the Bangaluru market was the key contributor, with sales volume of 0.93mn sqft and contributed 69% to total volume. Bangaluru was followed by Gurgaon, with sales volume of 0.23mn sqft, which was up by 22% QoQ and contributed 17% to total sales volume.
- The company launched Sobha Brooklyn Tower Wing 3 in Bengaluru with a built up area of ~0.20mn sqft.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Gland Pharma- Management Meet Update
- Shortages that affected US business are resolved: Gland Pharma faced challenges in the US business on account of key component shortages like syringes, vials, stoppers & needles etc. as its major USFDA-approved supplier rooted its capacity for vaccine manufacturing, leading to residual orders getting piled up.
- Levers for EBITDA margin enhancement going forward: Gland Pharma will have a single- minded focus on EBITDA margin rather than gross margin.
- Effect of thrust on the CDMO business: Gland Pharma does not see significant enhancement in opex on account of CDMO business going forward given that costs have already been absorbed in 4QFY22.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
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