Manpasand Beverages BUY Research Report by Prabhudas Lilladher

We initiate coverage on Manpasand Beverages (MANB) with a BUY rating and 18-month target price of Rs1009 (26.3% upside). We estimate sales and PAT CAGR of 34% and 38.5% over FY17-20 and value the stock at 30x FY20 EPS. MANB trades at significant discount to global majors on PEG (0.7x v/s 1.5-2.7x) and EV/EBIDTA (11.3x…

Mahindra & Mahindra Stock Buy Report – Prabhudas Lilladher

Mahindra &Mahindra’s standalone adjusted results in Q4FY17 were below expectations as its EBITDA declined 12.8% YoY. While revenues grew 3.3% YoY to Rs111.3bn (PLe: Rs115.1bn), M&M’s EBITDA margin stood at 8.4%, lower 160bps YoY and 340bps QoQ. However, if we adjust for the one‐time discounts given by the company owing to BS III inventory clearance,…

Prabhudas Lilladher Research Report – KEC International

KEC International (KEC) reported Net Profit of Rs1.45bn, up 90% YoY, led by higher margin and lower interest cost. Margin improved 150bps YoY to 10.6%, led by improved profitability in new businesses. Order inflow for the year was up 42% YoY to Rs123bn and they were L1 for Rs33bn worth bids. Domestic markets have seen…

Prabhudas Lilladher Research Report – Hindustan Unilever

We are upgrading Hindustan Unilever to Buy (earlier Accumulate) and increase FY18 and FY19 EPS estimates by 6‐10% following improved growth visibility. We expect sustained improvement in volume growth and margin expansion as a part of Unilever’s global drive to boost EBIDTA margins to 20% by 2020. Although GST is likely to provide temporary disruption…