External broker reports(aggregated public sources), IDBI Capital

IDBI Capital

External broker reports(aggregated public sources)

Equity Bottom-Up

Surya Roshni Limited manufactures cold rolled steel strips, pipes and tubes, in addition to lamps and other lighting accessories.

<p>We initiate coverage on Surya Roshni (Surya) with a BUY rating and a target price of Rs694. Surya is the second largest manufacturer of steel pipes (contributes 67% to EBITDA) and also the second largest LED manufacturer in India. With focus on improvement in product mix in steel pipes segment, we expect its margins to improve over the next two-three years. In Lighting &amp; Consumer Durables segment, we anticipate strong growth in segment revenue led by rising demand for LED lights in India and also import substitution.</p><div class="content-highlight"><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></div>

We initiate coverage on Surya Roshni (Surya) with a BUY rating and a target price of Rs694. Surya is the second largest manufacturer of steel pipes (contributes 67% to EBITDA) and also the second largest LED manufacturer in India. With focus on improvement in product mix in steel pipes segment, we expect its margins to improve over the next two-three years. In Lighting &amp; Consumer Durables segment, we anticipate strong growth in segment revenue led by rising demand for LED lights in India and also import substitution.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.

Surya Roshni: Backend Infrastructure Ready as Opportunities Galore

Indian Railway Catering and Tourism / Equity Bottom-Up

Indian Railway Catering and Tourism Corporation Limited provides rail transportation, catering, and tourism services. The Company offers online ticket booking and cancellation, meals, holiday packages, and travel support services. Indian Railway Catering and Tourism serves passengers in India.

Indian Railway Catering and Tourism (IRCTC IN)

<p>IRCTC delivered a strong set of numbers despite challenges from the second wave impact during the quarter as catering segment revenues improved, rail-neer segment turned EBIT positive after 4 quarters and internet ticketing segment continues to deliver strong margins. Revenues were higher than estimate due to higher revenue from catering segment, but EBITDA and PAT were in-line. Margins declined sequentially due to lower volumes. The company reported an 85% YoY increase in revenues to Rs2,434mn, driven by a pick-up in revenues across all business segments, but largely driven by the internet ticketing segment (now 60%+ revenues).</p><div class="content-highlight"><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></div>

IRCTC delivered a strong set of numbers despite challenges from the second wave impact during the quarter as catering segment revenues improved, rail-neer segment turned EBIT positive after 4 quarters and internet ticketing segment continues to deliver strong margins. Revenues were higher than estimate due to higher revenue from catering segment, but EBITDA and PAT were in-line. Margins declined sequentially due to lower volumes. The company reported an 85% YoY increase in revenues to Rs2,434mn, driven by a pick-up in revenues across all business segments, but largely driven by the internet ticketing segment (now 60%+ revenues).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.

RITES Limited provides engineering services. The Company offers transport infrastructure consultancy, railway inspection, rolling stock leasing and maintenance, airport construction management, industrial and electrical engineering, and other related services. RITES serves customers worldwide.

<p>Guidance on segmental revenue: For FY22E, RITE expects export revenue of Rs9bn which will be scattered over the next three quarters. Consultancy segment is growing and RITE expected revenue increase of 10% pa over the next 3-4 years. QA has reached Pre Covid level in Q2FY22. Turnkey segment revenue could decline in FY22E...</p><div class="content-highlight"><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></div>

Guidance on segmental revenue: For FY22E, RITE expects export revenue of Rs9bn which will be scattered over the next three quarters. Consultancy segment is growing and RITE expected revenue increase of 10% pa over the next 3-4 years. QA has reached Pre Covid level in Q2FY22. Turnkey segment revenue could decline in FY22E...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.

JK Paper Ltd. manufactures and distributes copier paper, color cards, cover papers, plain paper, white and color poster paper, and paper related products.

<p>Higher sales volume and improved NSR aided net sales growth Despite challenging business environment, JK Paper's sales volume was at 104,841MT, a growth of 32% YoY. The company reported NSR improvement of 7% YoY to Rs63,029/MT led by higher packaging board and coated paper prices. Sirpur plant has gained traction during Q1FY22 and it would reach at 100% capacity expansion by Q4FY22E or Q1FY23E. Packaging board unit will be operational in Q3FY21E and would have meaningful contribution to net sales in FY23E.</p><div class="content-highlight"><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></div>

Higher sales volume and improved NSR aided net sales growth Despite challenging business environment, JK Paper's sales volume was at 104,841MT, a growth of 32% YoY. The company reported NSR improvement of 7% YoY to Rs63,029/MT led by higher packaging board and coated paper prices. Sirpur plant has gained traction during Q1FY22 and it would reach at 100% capacity expansion by Q4FY22E or Q1FY23E. Packaging board unit will be operational in Q3FY21E and would have meaningful contribution to net sales in FY23E.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.

JK Paper: NSR Improved Despite Challenging Times

Safari Industries India / Equity Bottom-Up

Safari Industries India Ltd. manufactures and sells travel goods.

<p>Safari Industries reported better than expected Q1FY22 result. Its sales/ EBIDTA were significantly above our estimates. Safari Industries' net sales increased by 5x YoY to Rs1,202 mn on a very weak base of Q1FY21. Even EBIDTA improved to Rs71 mn compared to loss in Q1FY21 and interest cost fell 49% YoY to Rs10 mn. Hence, net profit improved to Rs25 mn (loss of Rs193 mn in Q1FY21), but fell 60% QoQ as restriction in travel affected not only top-line but also logistics costs.</p><div class="content-highlight"><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></div>

Safari Industries reported better than expected Q1FY22 result. Its sales/ EBIDTA were significantly above our estimates. Safari Industries' net sales increased by 5x YoY to Rs1,202 mn on a very weak base of Q1FY21. Even EBIDTA improved to Rs71 mn compared to loss in Q1FY21 and interest cost fell 49% YoY to Rs10 mn. Hence, net profit improved to Rs25 mn (loss of Rs193 mn in Q1FY21), but fell 60% QoQ as restriction in travel affected not only top-line but also logistics costs.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.

IDBI Capital is a leading Fund Manager in the country for Provident, Pension and Retirement Benefit Funds. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

IDBI Capital is a leading Fund Manager in the country for Provident, Pension and Retirement Benefit Funds.

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.