An Edelweiss research report for Q4FY21 says road tonnage continued to improve, evident in e-way bill generation (up 6% QoQ) and improved core trucking rentals. “We estimate tonnage would increase by three–five percent for truckers. Asset-light plays Mahindra Logistics and TCI Express remain our preferred picks due to their ability to scale up/down as the environment demands,” the report said. Edelweiss is bullish on Blue Dart Express due to the pandemic-induced boom in e-commerce and its leaner cost structure. It has retained a ‘buy’ call on Mahindra Logistics, TCI Express and Blue Dart Express.
ICICI Direct's research report on Suven Pharmaceuticals
Q4FY21 revenue grew 40.3% YoY to Rs 259 crore amid 51.3% YoY growth in pharma CRAMS sales to Rs 137.7 crore. Specialty chemical CRAMS also posted robust growth of 35.1% YoY to Rs 109 crore. However, formulation sales fell 36% YoY to Rs 12.1 crore. EBITDA margins declined 566 bps YoY to 36.2% mainly due to lower gross margin performance (down 658 bps YoY at 64.7%). Subsequently, EBITDA grew 21.3% YoY to Rs 94 crore. PAT was up 12% YoY to Rs 83 crore. Delta vis-a-vis EBITDA was due to higher tax rate and lower profit share from associates.
Outlook
We maintain BUY with a TP of Rs 560 (earlier Rs 575) based on 28x FY23E EPS of Rs 20.0.
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