Price :-Rs 66.65 Target Price :-Rs 69 Result below expectations Results: Apollo Tyres reported 5.0% YoY decline in its top-line at Rs11.2bn. This was mainly on account of a 16.0% YoY decline in volume at 65,500 tonnes and a 13.1% YoY growth in average realization at Rs171/kg. Apollo Tyres lost around 15,000 tonnes during the quarter on account of the ongoing strike at the Perambara plant which manufactures truck and bus tyres. Recipe cost/kg in the current quarter stood at Rs116.7 as compared to Rs108.6 in Q4FY10, an increase of 7.5% QoQ. As a result, EBITDA margins declined by 370bps QoQ at 10.4% for the quarter. In our view, given the strike at one of its major plants, EBITDA performance was pretty good. Apollo Tyres reported a lower tax rate on account of capitalization of the Chennai plant. On account of lower operating performance, the net profit declined by 65% QoQ at Rs406m. Read the full post

Target Price:- Rs 22 CM Price :- Rs 21.10 Higher interest cost subdues profitability… Alok Industries reported financial numbers which were below our expectations. On a YoY basis revenues increased by 40% to Rs 1099 crore, while net profit registered an increase of 45% to Rs 46.5 crore. However, on a QoQ basis the sales were down by 25%, while net profit declined by 51%. Cotton yarn exports which had increased from Rs 26 crore in Q3FY10 to Rs 177 crore in Q4FY10, declined to Rs 42 crore in Q1FY11. Interest cost surges Read the full post

Target Price:- Rs 686 CM Price:- Rs 649.95 Higher costs pose concerns… Balkrishna Industries (BIL) has reported mixed set of numbers for Q1FY10. The topline was below our estimates at Rs 456 crore on the back of drop in the blended realisation even though volumes estimates were in line at 26,600 MT(~26% QoQ growth). The EBITDA margins came under pressure as higher raw material prices and other expenses hurt the bottomline by 500 bps sequentially and 900 bps YoY basis. Read the full post

Target Price:-Rs.326 CM Price:-Rs.285.30 In line with expectations; growth to be back-end loaded; Buy What surprised us IRB Infrastructure reported net income of Rs1,175 mn (up 44% yoy) which was 7%/ 18% above our/Bloomberg consensus estimates. Revenue for the quarter at Rs5,120 mn (yoy growth of 24%) was 24%/ 14% below our/the Street’s estimates as billing for construction on new projects has not started accruing to revenue yet. EBITDA margin came in better than we expected at 48.7% vs. 40.1% in 1QFY10 and 46% in 4QFY10, primarily due to better margins in the construction segment. Read the full post

Target : Rs 827 CM Price Rs 762.55 Robust execution driving growth… BGR Energy (BGR) reported an impressive set of Q1FY11 results. The company’s revenues grew by 191% YoY in Q1FY11 to Rs 905 crore fuelled by the robust execution of EPC projects. EBITDA margins expanded by 91bp QoQ to 11.3% contributed by the strong project execution and cost containment initiatives by the company. PAT grew to Rs 61 crore, implying a growth of 199% YoY and decline of 44% QoQ. Strong execution of EPC contracts Read the full post

Target  Price:-Rs135.00 CM Price:- Rs.100.50 Low-risk exposure to India’s power sector We initiate coverage with an anti-consensus Buy rating Power Grid Corporation of India (Power Grid) is the government appointed central power transmission utility. We estimate India will add 100,000MW of generation capacity in FY11-17, a three-fold increase, and that transmission and distribution capex will reach 80% of generation capex by FY15 (compared with the historical average of 40-45%). We think Power Grid will be a key beneficiary of this growth; it already has more than a 50% market share and we expect this to increase. Read the full post