Daily BriefsIndia

India: ABM Investama, Pfizer Limited, Mold Tek Packaging, Birlasoft, Dalmia Bharat, Coforge, Eris Lifesciences, Essel Propack, Dixon Technologies India Ltd and more

In today’s briefing:

  • Asia HY Trade Book – July 2021 – Lucror Analytics
  • Pfizer: Exemplary Performance with Strong Margins
  • Mold-Tek Packaging: New Client Additions to Drive Revenue
  • EARNINGS UPDATE- KPIT TECHNOLOGIES LTD 1QFY22
  • Coforge: Healthy Organic Performance, Robust Guidance
  • Dalmia Bharat: Healthy Operating Performance; New Capex To Provide Growth Thrust
  • Coforge: Sturdy Growth, Healthy Deal Pipeline
  • Eris Lifesciences (HOLD): Strong quarter; cut to HOLD post recent rally
  • Lower margins across regions, except AMESA
  • Dixon Technologies: Resilient Performance Amidst Challenging Times

Asia HY Trade Book – July 2021 – Lucror Analytics

By Charles Macgregor

The Asia HY Trade Book for the month of July includes a summary of our recommendations, as well as our high-conviction ideas. The report also features relative-value charts and lists of the bonds in the Lucror Asia HY index.


Pfizer: Exemplary Performance with Strong Margins

By ICICI Securities Limited

About the stock: Pfizer collectively addresses 15 therapy areas with a portfolio of over 150 products that include therapeutics & vaccines. The company has been continuously restructuring its portfolio in the last few years to improve the…

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Mold-Tek Packaging: New Client Additions to Drive Revenue

By ICICI Securities Limited

It was the first to introduce in-mould label (IML) decorative products and QR coded packaging products in India While new product launches helped drive profitability of the company,…

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EARNINGS UPDATE- KPIT TECHNOLOGIES LTD 1QFY22

By Chola Wealth Direct

Background: KPIT Technologies is leading is a global technology company providing software solutions that help mobility companies leapfrog towards autonomous, clean, smart and connected future. The major focus areas of the company are power train (Conventional and electrical), autonomous technology (vision and control systems), connectivity and diagnostics. The company’s focus sub verticals are Passenger cars, Commercial and Off-highway vehicles and New Mobility. KPIT derives 84.6% of its revenue from strategic top 21 clients.

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Coforge: Healthy Organic Performance, Robust Guidance

By ICICI Securities Limited

About the stock: Coforge offers system integration, apps & BPO services to BFSI, travel & healthcare verticals

  • Coforge’s revenues and PAT have grown at a CAGR of ~12% each over the past five years
  • Healthy OCF, EBITDA (~75%) and robust return ratios (RoCE > 20%)
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Dalmia Bharat: Healthy Operating Performance; New Capex To Provide Growth Thrust

By Axis Direct

We maintain our BUY rating on the stock, valuing the company at 13x FY23E EV/EBITDA, to arrive at a target price of Rs 2,370/share, implying an upside of 10% from the CMP.

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Coforge: Sturdy Growth, Healthy Deal Pipeline

By Axis Direct

We recommend a BUY and assign 37x P/E multiple to its FY23E earnings of Rs 139.5/share which gives a TP of Rs 5,220 /share, implying an upside of 10% from CMP

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Eris Lifesciences (HOLD): Strong quarter; cut to HOLD post recent rally

By BOB Capital Markets Ltd.

Q1 EBITDA/PAT growth strong at 22%/20% YoY to Rs 1.3bn/Rs 1.1bn, meeting street estimates

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Lower margins across regions, except AMESA

By Motilal Oswal

EPL Ltd. (EPLL) reported a weak operating performance in 1QFY22 on the back of higher other expenses due to an increase in freight costs and onetime expenses. Factoring in the 1QFY22 performance, we decrease our earnings estimate for FY22 by 6% on account of a slower pickup in volumes post the total shutdown in Colombia and the shutdown of its unit in Russia. On the other hand, we maintain our earnings estimate for FY23. We value the stock at 26x FY23E EPS to arrive at TP of INR320.

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Dixon Technologies: Resilient Performance Amidst Challenging Times

By Axis Direct

In Q1FY22, Dixon reported a Consolidated Revenues of Rs 1,867 Cr up 261% YoY/ down 11% QoQ, as the second wave of Covid-19 impacted growth in April and May’21 while the recovery was seen in Jun’21. While the Gross Margins were adversely impacted by 460 bps, the EBITDA margins, too, declined to 2.6% (Vs 3.3% in Q1FY21) due to change in product mix (higher share of LED TV’s having lower margins), negative operating leverage, and a sharp increase in RM costs. The PAT stood at Rs 18 Cr as against Rs 2 Cr in Q1FY21.

Given encouraging long-term potential but limited upside potential from CMP, we recommend a HOLD on the stock.

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