India: Rallis India, Bajaj Auto Ltd, Hindustan Unilever, JSW Energy Ltd, Larsen & Toubro Infotech and more

• Rallis India is a leading agrochemical company with a presence across agri input value chain and a strong, healthy pipeline of sustainable products.
• The company has a diversified portfolio, supported by a strong channel network of more than 6,700 dealers and 79,000 retailers
• We value Rallis India at 22x P/E FY23E EPS to arrive at a revised target price of Rs 305 per share (earlier Rs 305 per share).

• Bajaj Auto (BAL) is the second largest motorcycle manufacturer and largest 3-W OEM domestically (FY21 market share at 18%, 50.6% respectively)
• Exports comprised ~52% of FY21 volumes; >125 cc motorcycles constituted ~28% of FY21 volumes with Pulsar 125 enjoying good success
• We value BAL at Rs 3,460 on SOTP basis (17x PE on FY23-24E average standalone EPS, stake in PMAG; previous target Rs 4,220)

The task (ahead) is a tough one – eye on mid-to-long-term while navigating multiple near-term challenges. Firstly, supply-side inflation of such scale amidst demand slowdown is a tough situation to be in – any price hikes (RM inflation-led) will have a visible impact on demand volume.

JSW Energy: Higher realisation and increased generation at the Vijayanagar and hydro plants boosted Q3FY22 PAT by 126% YoY to INR3.2bn (above ours and consensus estimate). Net generation, however, declined 2.6% YoY to 4.5bn units, owing to lower generation across the Ratnagiri plant (on plant maintenance). Accordingly, PLF declined for the Ratnagiri stations, but was up for Vijayanagar and hydro plants; it was largely flat for the Barmer station. EBITDA too increased 31% YoY, aided by an improved topline and flat fuel cost (given job work arrangement by the company).

• Larsen & Toubro Infotech (LTI) offers application development, IMS, digital solution services to BFSI, retail, health, media & hi-tech verticals
• LTI has 71 Fortune-500 clients with a presence in North America & Europe
• We maintain BUY rating on the stock Target Price and Valuation: We value LTI at Rs 8050 i.e. 42x FY23E EPS