ICICI Securities said Lupins performance was below expectations due to a dip in US sales and lower gross margin. It said US sales would remain under pressure and multiple ongoing USFDA issues would weigh on new approvals.
Ace investor Jhunjhunwala sold 22.50 lakh shares of Titan in the June quarter. Yet, it remains the biggest holding in his portfolio. His wife Rekha Jhunjhunwalas stake remained unchanged at 96.40 lakh shares, or 1.09 per cent. Together, they held 4.26 crore shares, or 4.8 per cent stake, in Titan at the end of the June quarter.
The firms that have bid for acting as transaction advisor are Deloitte Touche Tohmatsu India LLP, Ernst and Young LLP, ICICI Securities, JM Financial Ltd, KPMG, RBSA Capital Advisors LLP and SBI Capital Markets.
Broker s call: Ashok Leyland (Buy)
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CMP: ₹123.35
Ashok Leyland’s Q4-FY21 operating performance beat consensus estimates as EBITDA margin came in at 7.6 per cent. This was driven by driven tighter control on fixed costs, strong operating leverage even as gross margins shrunk (nearly 248 bps Q-o-Q to 23.1 per cent) due to high input cost pressures.
Key industry monitorables: Pace of recovery of economic activity and capex trends in key segments (e.g. infrastructure); used vehicle demand/pricing trends; and trends in freight rates.
We estimate Ashok Leyland s volumes to rebound at about 29 per cent CAGR FY21-FY23 driven by M&HCV revival coupled with market share gains in LCV segments. Improved asset utilisation and rising margins is likely to aid healthy FCF generation (about ₹2,200 crore cumulative FCF in FY22E/23).
The Rs 2,144 crore public issue was subscribed 3.9 times last week. The non-institutional investor category was oversubscribed 1.89 times attracting 7.2 million bids against 3.8 million shares offered. KIMS Hospitals will list on June 28. As of Thursday, its shares in the grey market commanded a premium of Rs 50 or 6% over the issue price of Rs 825 a share.