Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us  

| More

Q4FY21 Result Preview - Retail - ICICI Direct

Posted On: 2021-04-07 08:26:14 (Time Zone: Arizona, USA)

Improved consumer sentiments and festive boost enabled retail players to witness ~70-80% revenue recovery rate in Q3FY21. While January continued to witness decent demand offtake, rise in number of Covid cases and several restrictions in March, hampered growth aspirations of retail companies. On an adjusted base of Q4FY20 (normalised), average recovery rate for apparel retailers is expected to be in the range of 80-85%. We expect categories like jewellery, open footwear, athleisure wear, kitchen appliances to sustain healthy growth trajectory compared to apparels and other accessories. Rise in key commodity prices such as cotton/polyester yarn and aluminium would exert pressure on gross margins in Q4FY21E. However, cost rationalisation measures are expected to offset the negative impact, to a certain extent. Retail companies have stepped up their digital investments and are integrating online and offline channels to capture demand. Hence, they are better placed to withstand pandemic challenges than earlier.

Titan, Page, TTK to post strong revenue growth

Among discretionary categories, we expect Titan's jewellery division to report robust revenue growth of 70% YoY in Q4FY21E (supported by benign base and large B2B order of gold coins). Revenue growth (excluding B2B sale) for Jan-Feb stood at healthy ~ 32%. Wedding jewellery has been the key growth driver during the quarter, coupled with softening of gold prices (6% QoQ) boosting demand. Titan's watches and wearable division is expected to report constant growth YoY in Q4FY21E. We expect Titan to report overall sales growth of 58% YoY in Q4FY21E. For Avenue Supermarts, certain home usage categories like apparel, footwear and travel were still not completely out of the woods, which has been a drag on its SSSG (January-February: ~6%). Also, localised restrictions on store operations resulted in SSSG for two year and older stores to decline 9.4% in the first 15 days of March. The company has accelerated store addition pace in Q4 by adding 13 D-Mart stores. Hence, we expect it to report 18% sales growth in Q4FY21E. Among lifestyle players, we expect Trent to outperform with sales growth of 12% in Q4FY21 (on an adjusted base recovery rate expected at ~90%). ABFRL is expected to report marginal sales growth of 1% (85% adjusted recovery rate) with addition of three Pantaloons stores. Business momentum in kitchen appliances segment continues to be healthy on the back of increased work from home trend and accentuated preference for home cooked food. On a low base of Q4FY20 (revenue de-growth of 21%) we expect TTK to report 35% revenue growth in Q4FY21E. Driven by strong demand for WFH athleisure wear & womenswear we expect Page to report healthy sales growth in Q4FY21.

For details, click on the link below:

Source: Equity Bulls

Click here to send ur comments or to

Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only., its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.

Other Headlines:

Dabur India: REDUCE - Q4FY21 Result Update - YES Securities

Maintain BUY on CreditAccess Grameen - Accelerated write-offs dents earnings - HDFC Securities

Sundram Fasteners Q4 Results Review - HDFC Securities

SRF - Specialty Chemicals continues to shine! - HDFC Securities

Realtors welcome RBI latest stance, expect relief initiatives in next announcement

CreditAccess Grameen - Q4FY21 Result Update - ICICI Securities

JM Financial - Exits FY21 with well contained stress pool; sequential AUM uptick encouraging - ICICI Securities

Hero MotoCorp - Margins remain resilient - ICICI Securities

CEAT - Margin pressures likely to intensify - ICICI Securities

SRF Limited - FY22E growth capped on higher plants utilisation - ICICI Securities

I-direct Instinct - Automotive Axles - ICICI Direct

Quant Pick - Axis Bank - ICICI Direct

Gladiator Stocks - Caplin Point Laboratories - ICICI Direct

Q4FY21 Result Update - Coforge Ltd - ICICI Direct

Tata Consumer Products - Q4FY21 First Cut - ICICI Direct

Coforge Ltd - Q4FY21 Result Update - YES Securities

CreditAccess Grameen - Q4FY21 Result Update - YES Securities

Blue Star - Q4 FY21 first cut - Inline performance - YES Securities

Tata Consumer - 4QFY21 results first cut - YES Securities

Tata Consumer 4QFY21 results first cut - YES Securities

Maintain BUY on CDSL - Strong growth momentum - HDFC Securities

Maintain ADD on L&T Infotech - Steady progression - HDFC Securities

Blue Dart Express - Q4FY21 - The bulge continues - ICICI Securities

Tata Steel - FY22E Net Debt/EBITDA at <1x - ICICI Securities

Larsen & Toubro Infotech - Consistency continues! - ICICI Securities

CEAT - Decent quarter; new capex likely to curtail FCF - ICICI Securities

Q4FY21 Result Update - Alembic Pharma - ICICI Direct

Gladiator Stocks - Cadila Healthcare - ICICI Direct

Q4FY21 Result Update - Larsen & Toubro Infotech - ICICI Direct

RBI Action Update - May 2021 - ICICI Direct

Quant Pick - Aurobindo Pharma - ICICI Direct

Q4FY21 Result Update - Greaves Cotton - ICICI Direct

Adani Total Gas Ltd - Q4FY21 Result Update - YES Securities

L&T Infotech - Q4FY21 Result Update - YES Securities

Bluedart Express - Q4 FY21 first cut - Miss on topline; Profitability improves - YES Securities

Views on the announcement by RBI Governor - Ms. Bekxy Kuriakose, Head - Fixed Income, Principal Asset Management

Views from experts on RBI announcement - May 5, 2021

Maintain REDUCE on RBL Bank - Elevated retail slippages continue - HDFC Securities

Resolution 2.0 measure by RBI to provide relief to real estate linked SME stakeholders

Godrej Properties - Robust quarter; positives fairly priced in - HDFC Securities

RBI Relief 2.0 - May 2021 - Acuité Ratings & Research

MDF Industry - Countervailing duty on MDF recommended; imports may get hit structurally - ICICI Securities

Home First Finance Company - Core earnings steady; profitability buoyed by securitisation income - ICICI Securities

RBL Bank - Modest return profile in the interim; transitioning underway - ICICI Securities

Alembic Pharmaceuticals - US continues to be under pressure - ICICI Securities

Q4FY21 Result Update - SBI Life Insurance - ICICI Direct

Q1CY21 Result Update - Varun Beverages - ICICI Direct

RBL Bank: Views from leading research houses on Q4FY21 results

Q4FY21 Result Update - Supreme Industries - ICICI Direct

Q4FY21 Result Update - Tata Chemicals - ICICI Direct

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2020