they have already opened up significant parts of their economy. While the US has

been the worst effected country with almost 2mn confirmed cases, the peak of

crisis seem to be behind them and all states have begun reopening their economy.

Monetary and fiscal stimulus by major economies leading to global equity rally –

Central banks and Governments globally have responded with unprecedented

monetary and fiscal stimulus in the aftermath of Covid - 19 in order to contain the

economic damage. The US Fed has pumped in record USD 2.9tn into the

economy through its quantitative easing program since March while most

Governments globally have announced large fiscal packages. As a result there has

been a surge in liquidity leading to a global risk on rally.

steam from here on.

Cyclical sectors to outperform in near term driven by positive FPI flows – Post the

sharp rally in April Indian markets witnessed a correction in May despite positive

inflows of `14,569 cr. as compared to outflows of `6,884 cr. in the previous

month. Given the US fed fuelled liquidity driven global rally we expect FPI flows to

remain strong which will drive out performance of Indian equities in the near term.

We expect the rally will be more broad based and cyclical sectors like Auto,

banking, construction, consumer goods to outperform in the near term given

beaten down valuations.

Increase in new Covid – 19 cases is key risk for Indian equities going forward -

relaxations. This may result in increased market volatility down the line especially

in cyclical sectors which are leading the current leg of the rally.

(~6%) and General trade (~18%), which would drive revenue growth.

cost structure.

respectively over FY2019-22E.

coming from its chronic which is a high growth segment and will be least

impacted due to lockdown globally.

approval from the US FDA including 30 FTF’s. The company intends to launch

25 new products FY21.

INR 5380cr in 2015 to INR 9300cr in 2020. With current capacity utilization at

50% we do not envisage any significant capex for the company going forward.

company

especially daily wage earners due to the lockdown. However a sharp increase

in data consumption should make up for a significant portion of the loss.

Therefore we expect limited impact on Bharti from the lockdown.

FCCB issues of USD 1bn in January 2020. Therefore Bharti is much better

placed as compared to Vodafone Idea in terms of liquidity.

possibility of another round of tariff hikes by telecom companies in FY21 given

that tariffs are still very low. If this were to happen then it would lead to further

upsides to our estimates for FY21 and FY22.

verticals including Infra, Hydrocarbon and services segment. The company

also has a very strong presence in the IT services and NBFC space through its

various subsidiary companies which are also growth drivers for the company.

order book is from the central government, state government and PSU, where

offers favorable risk reward from current levels given global tailwinds.

driven by strong relationship with global agrochemical players. PI is leveraging

its chemistry skill sets and is looking to diversify its CSM portfolio to electronic

chemicals, Pharma API, fluoro chemicals, etc. which will help drive business.

outbreak we expect that PI Industries would be amongst the least impacted in

the sector given that the company is a pure play agrochemical player which

are part of essential commodities.

oral care products such as toothpastes and toothbrushes.

toothbrushes (45% market share).

Colgate is India’s No. 1 Most Trusted Oral Care Brand.

continuously making efforts to deepen its penetration.

gain in toothpastes segment on the back of higher ad-spend and re-launch of

Colgate Strong Teeth (decent traction seen in last quarter).

strong brand, wide distribution network and new product launches.

which is used in personal and home care products including skin care, oral

outbreak we expect that Galaxy Surfactants would be amongst the least

on growth trajectory along with higher margins (40% EBITDA margins).

Current capacity utilization of plants which supply to Europe is at 20% which is

expected to ramp up from current levels. We expect the European business to

show 30-35% PAT growth.

segments like Pain management. Currently the company has 18 ANDA

sapprovals, 46 ANDA filled with authorities while 8 products are in clinical

trials.

focus on distribution expansion, BRIT has narrowed the gap with the No. 1

player. The gap with largest distributed brand is now just 0.8 million outlets.

YOY growth of 2.5%/20bp/27% in Revenue/EBITDA/PAT respectively. Going

ahead in near term, food industry is witnessing a shift from dining out/ street

food to home consumption. BRIT being a low price product with trusted brands

is well positioned to cater the shift.

buffer provision would help it to better manage the credit loss

crore, against which actual provisions as of Q4FY2020 were at Rs. 10,988

crore, which is over and above regulatory requirement and provides investor

reasonable considering its robust operating metrics, experience management,

Healthy provision and sustainable business model.

provides a vast gamut of services like ADM, Enterprise solutions, Infrastructure

aggressive in terms of signing new deals, which is expected to drive growth for

the company. New deal wins has clearly accelerated with the company

winning deals worth USD 6.3bn and USD 9.0bn in FY19 & FY20 respectively

as against deal wins of USD 3.1bn in FY18.

domestic sales. Significant opportunity for company arising from