Daily BriefsIndia

India: Angel Broking, Axis Bank Ltd, Dlf Ltd, Dr. Reddy’s Laboratories, Phillips Carbon Black, Torrent Pharmaceuticals, Alembic Pharmaceuticals, Zensar Technologies and more

In today’s briefing:

  • Angel Broking: Riding the Digital Broking Wave in India, But It May Slip
  • Axis Bank: Healthy Revival to Aid Improvement in Return Ratios
  • HSIE Results Daily: DLF, Dr. Reddy’s, IndusInd Bank and More
  • India drives earnings growth, while North America/PSAI drags it down
  • Phillips Carbon Black: Steady Show, Inexpensive Valuations, Value Play
  • DF on a strong footing; making inroads in Trade Generics
  • Alembic Pharmaceuticals: US Challenges Offset Domestic Recovery
  • Zensar Technologies: Strong Recovery, Improved Outlook

Angel Broking: Riding the Digital Broking Wave in India, But It May Slip

By Ankit Agrawal, CFA

Angel Broking (ANGELBRK IN)‘s stock has risen >4x over the last four months on the back of strong growth in the digital broking industry in India. However, we think the stupendous growth of >17x in Angel’s active client base over the past couple of years may not sustain. While the shift to digital and discount broking is inevitable, the recent growth seems to be temporary and will likely reverse led by high customer churn. Cyclicality and heightened competition in the sector will further adversely impact the fundamentals and lead to de-rating of the stock once the euphoria in the sector subsides. The market is also pricing in high optimism around Angel’s potential to be a fintech platform. We again differ here based on our insights into Angel’s customer base, competitive scenario and nascent track record of Angel in the quasi-passive quant-based asset management and wealth management space.  


Axis Bank: Healthy Revival to Aid Improvement in Return Ratios

By ICICI Securities Limited

About the stock: Axis Bank is the third largest private sector bank in India with a balance sheet size of | 9.8 lakh crore as on June 2021.

  • The bank has a large footprint across India with 4600 branches
  • Retail and SME comprise ~64% of total loans
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.

HSIE Results Daily: DLF, Dr. Reddy’s, IndusInd Bank and More

By HDFC Securities

HSIE Results Daily DLF: DLF surprised positively on presales at INR 10bn (6.6x/-5% YoY/QoQ) despite the lockdown during the quarter. While office collection remains robust at 99%, occupancy at DCCDL declined to 86% vs. 88% at Mar 21-end. The consumption of malls rebounded to 50% of pre-COVID level during Jun-21, with footfalls exhibiting a rising trend. With robust Q1FY22, DLF is well on course to achieve INR 40bn presales in FY22, aided by 8msf launches. Net debt also continues to trend down (INR 47.bn vs INR 49bn on Mar-21).

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.

India drives earnings growth, while North America/PSAI drags it down

By Motilal Oswal

Dr. Reddy’s Labs (DRRD) delivered a miss on earnings in 1QFY22, affected by a) higher price erosion in North America (NAM) sales, b) the deferment of offtake by DRRD’s customer in the Pharma Services and Active Ingredients (PSAI) segments, and c) quarterly lumpiness in the Tender business in the Russia segment. DRRD exhibited strong growth in Domestic Formulations…

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Phillips Carbon Black: Steady Show, Inexpensive Valuations, Value Play

By ICICI Securities Limited

Net sales for Q1FY22 were at Rs 1004 crore with carbon black sales volume at 109 KT, down 3% QoQ and consequent EBITDA/tonne at ~Rs 15,000 Consequent PAT in Q1FY22 was at Rs 104 crore, down 18% QoQ…

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DF on a strong footing; making inroads in Trade Generics

By Motilal Oswal

TRP’s 1QFY22 performance was largely in line with our estimates. Growth momentum in the Domestic Formulation (DF) business was offset by a muted showing in the US business and a higher tax rate. It continues to…

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Alembic Pharmaceuticals: US Challenges Offset Domestic Recovery

By ICICI Securities Limited

Consequent PAT was at Rs 164.5 crore (down 45.4% YoY) What should investors do? Alembic’s share price has grown by ~1.7x over the past five years (from ~Rs 573 in June 2016 to ~Rs 984 levels in June 2021)….

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Zensar Technologies: Strong Recovery, Improved Outlook

By Axis Direct

We assign a 22x P/E multiple to its FY23E earnings of Rs 20.8 per share to arrive at a TP of Rs 455 per share, implying an upside of 13% from CMP.

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