External broker reports(aggregated public sources), Nirmal Bang

Nirmal Bang

External broker reports(aggregated public sources)

A Relationship Beyond Broking

Nirmal Bang, one of the leading stock broking companies in India, caters to retail and institutional clients by offering them a range of financial products and services, including equities, derivatives, commodities, currency derivatives, mutual funds, IPOs, insurance, depository services and PMS.

Nirmal Bang is drawn from a diversity of professional backgrounds, and blend of experience, skill and dedication is shared with its clients. Nirmal Bang emphasizes adequate, thorough research local and world-wide developments, balancing these with the astute discovery of intrinsic values, synergies and growth. The aim is simply to help the investors to maximize their returns.

Thematic (Sector/Industry)

<div><ul><li>Maruti: We expect Maruti’s earnings to be relatively strong on YoY basis due to a lower base, but we expect a slight decline of 4% QoQ due to muted volume (hit by chip shortages) and pressure on profitability</li><li><p>Mahindra &amp; Mahindra (M&amp;M): M&amp;M’s reported Auto segment volume increased by ~46% YoY, driven by a good response to XUV 700 (new Launch), good CV volume and good recovery in tractor volume.</p></li><li><p><span style="font-size: var(--content-font-size);">Hero MotoCorp: We expect Hero MotoCorp’s revenue to grow by 15% QoQ, led by 17% rise in volume.</span></p></li></ul></div><p><em>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.</em></p>

Maruti: We expect Maruti’s earnings to be relatively strong on YoY basis due to a lower base, but we expect a slight decline of 4% QoQ due to muted volume (hit by chip shortages) and pressure on profitabilityMahindra &amp; Mahindra (M&amp;M): M&amp;M’s reported Auto segment volume increased by ~46% YoY, driven by a good response to XUV 700 (new Launch), good CV volume and good recovery in tractor volume.Hero MotoCorp: We expect Hero MotoCorp’s revenue to grow by 15% QoQ, led by 17% rise in volume.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.

Auto/Auto-Ancillary Sector - Spillover of RM Inflation to Impact Margins

Equity Bottom-Up

Suprajit Engineering Limited manufactures a complete range of liner, non-liner, and push pull cables for two wheelers, cars as well as light and heavy commercial vehicles and a range of automotive and non automotive applications.

<div><div><div><div><ul><li>Exports to drive growth ahead of industry in Automotive Cables business: SEL is the market leader in Automotive Cables with a ~75% market share in 2W OEMs (48% of segment revenue) and ~32% in 4W OEMs (18% of segment revenue).</li><li>While we believe that in 2W and 4W OEMs, the company will grow in line with industry growth, the next leg of outperformance will be led by pick-up in exports.</li><li>Exports contribute ~18% to the Auto Cable revenue.</li></ul></div></div></div></div><p><em>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.</em></p>

Exports to drive growth ahead of industry in Automotive Cables business: SEL is the market leader in Automotive Cables with a ~75% market share in 2W OEMs (48% of segment revenue) and ~32% in 4W OEMs (18% of segment revenue).While we believe that in 2W and 4W OEMs, the company will grow in line with industry growth, the next leg of outperformance will be led by pick-up in exports.Exports contribute ~18% to the Auto Cable revenue.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.

Suprajit Engineering - Replicating Indian Success on the Global Platform

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<li>Paints sector: Demand is expected to remain firm in 1QFY23 as April’22 and May’22 have been very encouraging.</li>
<li>On a 3-yr CAGR basis, even though we are building in slight softening in volume growth, it still remains in double digits (refer exhibit 4&amp; 5).</li>
<li>Both our coverage paint companies have taken further pricing actions in May’22 and June’22, with a combined hike of ~2%, to combat the elevated RM prices.</li>
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<p><em>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.</em></p>






Paints sector: Demand is expected to remain firm in 1QFY23 as April’22 and May’22 have been very encouraging.
On a 3-yr CAGR basis, even though we are building in slight softening in volume growth, it still remains in double digits (refer exhibit 4&amp; 5).
Both our coverage paint companies have taken further pricing actions in May’22 and June’22, with a combined hike of ~2%, to combat the elevated RM prices.





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.

Consumer Sector -  Robust Demand and Low Base to Drive Strong YoY Growth in 1QFY23

<div><div><div><div><ul><li>Commentaries from FMCG Cos paints a similar overall picture for 1QFY23 as was seen in 4QFY22.</li><li>The Indian FMCG industry continued to remain soft in 1QFY23.</li><li>It continued to be hit hard by elevated inflation, further aggravated by geopolitical tensions, leading to successive price increases and adversely impacting volume. </li></ul></div></div></div></div><p><em>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.</em></p>

Commentaries from FMCG Cos paints a similar overall picture for 1QFY23 as was seen in 4QFY22.The Indian FMCG industry continued to remain soft in 1QFY23.It continued to be hit hard by elevated inflation, further aggravated by geopolitical tensions, leading to successive price increases and adversely impacting volume. 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.

Consumer Sector - Demand Soft; Gross Margins Still Under Inflationary Pinch

Mahindra & Mahindra Ltd. manufactures automobiles, farm equipment and automotive components. The Company's automobile products include light, medium and heavy commercial vehicles, jeep type vehicles and passenger cars. Mahindra & Mahindra also manufactures agricultural tractors, agricultural implements, internal combustion engines, industrial petrol engines, spare parts and machine tools.

<div><div><div><div><ul><li>Demand trend and outlook: M&amp;M is seeing strong demand for its products and expects this growth momentum to continue, backed by a robust order book (~170k). </li><li>It has launched the new Scorpio N in June’22, which is further expected to propel overall bookings.</li><li>Furthermore, we expect tractor volume to grow at low single digits in FY23, driven by the good monsoon season and higher rural incomes.</li></ul></div></div></div></div><p><em>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.</em></p>

Demand trend and outlook: M&amp;M is seeing strong demand for its products and expects this growth momentum to continue, backed by a robust order book (~170k). It has launched the new Scorpio N in June’22, which is further expected to propel overall bookings.Furthermore, we expect tractor volume to grow at low single digits in FY23, driven by the good monsoon season and higher rural incomes.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.

Mahindra & Mahindra - Equity Infusion at a ‘Too Good’ to Be True Valuation