Strong volume growth continues Colgate-Palmolive : Centrum Research

Strong volume growth continues
Colgate-Palmolive posted strong 20.5% revenue growth in Q1FY13 on the
back of 11% volume growth. Gross margins continued to be healthy at 59%
while increasing competitive intensity boosted advertising spending by 32%
YoY. High tax rate muted PAT growth to 17% YoY. We believe premium
valuations are not sustainable and hence maintain Neutral view on the stock.
Robust growth: Colgate posted robust 20% sales growth on the back of
strong 11% YoY volume growth with revenue at Rs7361mn (up 20.5% YoY
and 7.3% QoQ). With margin expansion on the back of price hikes, operating
profit was at Rs1424mn (up 21.5% YoY but down 7% QoQ). PAT was up by
17% to Rs1174mn.
Market share improves: For the 17th consecutive quarter the company posted
double digit volume growth of 11% led by the toothpaste category. Even after
regular price hikes volume growth continued. Market share in toothpaste was the
highest in the past few years at 54%. Premiumisation of products is helping the
company gain market share in the toothpaste category. In mouth wash category the
recent launch of the Colgate Plax Fresh Tea continued to enhance sales. Market share
in the toothbrush category was at 38.2% against 36.3% last year.

Jubilant Foodworks Ltd. Impressive performance continues…: IDBI capital,

Jubilant Foodworks Ltd. (JUBI) delivered another strong quarter on top line/bottom line with 45%/40% growth YoY respectively to Rs3.1 bn/Rs323 mn – ahead of estimates of Rs2.9 bn/Rs308 mn. Gross margin/EBITDA margin was marginally lower at 73.4%/18.2% impacted by continued food inflation and operationalising of DD stores. We raise our revenue estimates by 1%/4% for FY13/14 (mgmt has raised its store opening target to 100 in FY13 vs. 90 earlier), however, cut our EPS estimates by 5%/4%, to factor in 70bps cut in margin to factor in impact of DD stores (mgmt has guided for 60-70bps margin impact on operationalising of DD stores). We factor in SSG of 20%/18% for FY13/14 with store addition of 100/95. We remain impressed by management’s positive tone on healthy SSG trend (it has guided for >=18% SSG in FY13) and its ability to maintain profitability despite rising competition (led by pricing power and operating leverage – mgt has guided to at least match FY12 EBITDA margin of 18.7% without considering DD stores impact on margin). Maintain ACCUMULATE with DCF valuation of Rs1,260 (13.1% WACC; 5% terminal growth).

Ad revenue declines HT Media ::Centrum Research

Ad revenue declines
HT Media posted subdued Q1FY13 results with a revenue de-growth
of 1.4% led by 3% advertising revenue decline. Other businesses
continued to be in the red which impacted margins. We have lowered
our FY13/FY14 estimates marginally and maintain BUY rating on the
stock.
Decline in ad revenue: HT Media posted results in line with expectations
with topline at Rs4899mn (down 1.4% YoY) following disappointing 3%
decline in advertising revenue in challenging times coupled with 8%
increase in circulation revenues. Operating profit was down 26% YoY
while PAT was down at Rs407mn (20% above our estimates). Advertising
decline was on the back of 6% decline in English daily while Hindi daily
grew by 6% in ad revenues. Key sectors such as auto, BFSI and real estate
impacted the ad growth as national markets declined. Government ads
too declined due to austerity measures.
Hindi business gaining traction: HMVL’s revenue grew by 8% to
Rs1595mn on the back of 6% increase in advertising revenue while
circulation revenue grew by 13%. The publication continues to gain
traction through increasing circulation, rise in cover prices and steady
increase in readership.

Siemens AG - New orders slide: Edelweiss, PDF link

Key highlight of Siemens Q3FY12 results was the 23% decline in its order inflow which was much steeper than expected as customers, wary of European debt crisis, increasingly refrained from making investments. The market environment was less favorable in the third quarter, particularly for Siemens’ industrial short-cycle businesses. Revenue rose 10% YoY to €19.542bn. The management indicated that the deteriorating environment poses difficult task to achieve their FY12 guidance.

BUY Jubilant Life Sciences (JULS.BO) Another Beat Citi research

Jubilant Life Sciences (JULS.BO)
Another Beat
 Another Beat — Adj net income beat Citi estimates by c28% on strong growth and
higher EBITDA margin. JULS has delivered consistent improvement in its business
over the last 5-6 quarters. It has also reined in capex. However, leverage (at 1.6x)
has not declined much, partly due to repricing of forex debt. We believe current
business momentum needs to sustain and leverage come down for a rerating.
However, valuations are attractive & provide downside support. Maintain Buy.