Hold Glenmark Pharmaceuticals Ltd For Target Rs.720.00 - Emkay

* Revenue came in at Rs22.6bn (Emkay Estimate: Rs22.3bn), EBITDA stood at Rs3.9bn (Emkay Est: Rs4.2bn) and net profit was Rs2.1bn (Emkay Est: Rs2.3bn). Cost declined marginally qoq, which seems to have supported EBITDA margin.

* On the face of it, the US revenue picture does not appear dire. Revenue appears to be marginally down qoq after adjusting for Zetia revenue in Q1FY18, which i

21/11/2017 3:31:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors For Target Rs.575.00 - Motilal Oswal

Above est; Strong performance at both JLR & India business

* Consol EBITDA increased 20% YoY (+80% QoQ) to INR89.4b (est INR72.5b), translating into EBITDA margin expansion of 90bp YoY (+4100bp QoQ) at 12.6% (est 10.5%). Adj PAT increased 65% YoY to INR24.4b (est INR12.1b).

* JLR – Low

21/11/2017 3:26:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Eclerx Services Ltd For Target Rs.1,249.00 - Equirus Sec

eClerx Services‟ (ESL) 2QFY18 revenues came in higher than EE but margins lower. Revenue decline was lower than anticipated as air pockets created by weakness in top-10 customers were replenished by emerging customers, leading to a modest 1% yoy drop in 2Q vs. declines of 2.6%/5.7%/8.9%/2.8% in 1Q18/4Q/3Q/2Q17. Further, though a stronger pipeline (highest in past 18 months) could support grow

21/11/2017 3:18:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy The India Cement Ltd For Target Rs.223.00 - Kotak Sec

Results for the quarter were ahead of our expectations owing to better than expected margins. Demand in the southern region continues to remain impacted by sand unavailability which can continue to weigh on stock performance in near term. However these issues are likely to get resolved soon with alternative options of procuring sand.

Along with this, with upcoming election schedule in

21/11/2017 3:12:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Shriram City Union Finance Ltd For Target Rs.2,380.00 - Emkay

* Shriram City Union Finance’s (SCUF) Q2FY18 earnings came in below expectations on account of elevated credit costs as bad loan write offs remained high; Growth momentum appears to be decelerating (possibly due to GST) while NIMs continue to hold up

* Reported GNPLs (on 120-days outstanding basis) inched up marginally to 6.9% vs. 6.8% in Q1FY18; However, annualized credit costs

21/11/2017 3:08:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy United Breweries Ltd For Target Rs.1,320.00 - Motilal Oswal

Im proving operating environment reinforces our positive outlook

*  Net sales grew 23.1% YoY (est. of +7%) to INR12.8b in 2QFY18. Despite the highway ban, volume rose 11% YoY (est. of flat volume) v/s 5% growth for the industry – another quarter of market share gains for UBBL. The company has now gained share in both FY17 and 1HFY18. Most m

21/11/2017 2:54:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy APL Apollo Tubes Ltd For Target Rs.2,812.00 - Emkay

Rapidly scaling revenue; Initiate at BUY

* Initiate BUY on this midcap and under-researched name, TP Rs2,812. APAT, a specialized steel processor, would double its profits and improve its ROCE to 30.5% from 20.6% by FY20. The stock is undervalued at PER of 13x FY20E.

* APAT is No. 1 steel pipe maker with 13% domestic market share. We are conf

21/11/2017 2:46:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Future Retail Ltd For Target Rs.566.00 - Prabhudas Lilladher

FRL’s 2QFY18 results show 10.2% SSG led by 13.8% SSS growth in Big Bazaar while Easyday has reported mid single digit SSS in a pre GST quarter. EBIDTA margin has increased to 4.7% (up 160bps YoY and 20bps QoQ) as operating leverage has reduced cost of retail by 70bps YoY, up 40bps QoQ (sales pre GST). Inventory at 79 days (80days in March 2017) and Net debt of Rs9.6bn (Rs9.2bn in March 20

21/11/2017 2:25:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral IRB Infrastructure Developers Ltd For Target Rs.240.00 - Motilal Oswal

Results impacted by weak BoT performance

* Operating performance below expectations: IRB’s revenue declined 13% YoY to INR11.2b, below our estimate of INR13.2b, due to weaker-thanestimated BoT revenue (led by subdued traffic growth on account of GST implementation). Operating profit stood at INR5.7b (-19.5% YoY),

20/11/2017 3:02:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sheela Foam Ltd For Target Rs.1,752.00 - Emkay

Growth drivers intact

* 2Q EPS growth of 8% YoY/22% QoQ was backed by strong revenue momentum. This was slightly above expectations, with 1H forming 42% of our FY18E EPS.

* Revenue growth of 15% YoY was driven by better sales realization (+10%) and slight improvement in sales volume (+5%). The GST de-stocking impacted volumes negatively in J

20/11/2017 2:56:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Rain Industries Ltd For Target Rs.492.00 - Motilal Oswal

CPC market tailwinds driving strong earnings growth

Raising earnings and target price; Maintaining Buy

Rain Industries (RAIN) reported very strong earnings growth, driven by structural changes in market dynamics for its carbon business. Consolidated EBITDA increased 49% YoY to INR6.7b, beating our estimate o

20/11/2017 2:50:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate PNB Housing Finance Ltd For Target Rs.186.00 - Prabhudas Lilladher

PNB’s operational performance continue to remain muted, though PAT was better than expectations on slightly better NII than expectations, lower opex and relatively lower provisioning leading to better earnings. Lower slippages were encouraging helping stability in asset quality and management expects slippages to be contained at similar levels. In our previous assessment PNB unlike its pe

20/11/2017 2:42:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Bajaj Electricals Ltd For Target Rs.335.00 - Kotak Sec

BAEL reported Q2FY18 result below our estimates due to margin contraction in the E&P division. Profitability in consumer segment remained sedate vis-à-vis peer group due to volumes affected by RREP rollout.

At 17.8 x FY19 PER, BAEL stock is trading at a significant discount to the peer group (key players like Havells and Crompton Greaves consumer trading at PER of over 30x

20/11/2017 2:36:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Accmulate Deepak Fertilisers and Petrochemicals Corporation Ltd For Target Rs.495.00 - Emkay

* Consolidated net revenues increased by 34% yoy to Rs12.3bn driven by growth across both the segment. Consolidated EBITDA increased 57% yoy to Rs1.4bn while EBITDA margins improved 170 bps yoy to 11.7%.

* Chemical revenue grew 12% yoy to Rs7.7bn led by 58% yoy growth in traded chemicals while manufactured fertilisers revenues dropped 7% yoy. Segment EBIT surged 32% yoy to Rs1.3bn and

20/11/2017 2:30:47 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Arvind Ltd For Target Rs.425.00 - Motilal Oswal

Demerger of brands and retail business to create long-term value

* GST transition, coupled with high cotton prices, impacts margins: ARVIND’s revenue grew 12% YoY to INR26.3b (est. of INR26.1b) in 2QFY18. Brands and Retail grew 34% YoY to INR10.3b, while Textiles grew 1% YoY to INR14.4b. EBITDA declined 9% YoY to INR2,123m (est. of INR2,506m), w

20/11/2017 2:20:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy CESC Ltd For Target Rs.1,360.00 - Motilal Oswal

In-line results; Spencer’s sales weak, EBITDA positive

Demerger process on track; maintain Buy

* CESC’s standalone PAT grew 2.1% YoY to INR2.47b, marginally below estimate. T&D loss (provisional) declined 100bp YoY (30bp QoQ) to 10.8%. Sales grew 4% YoY to 2.75BU. Realization was up 2.8% YoY

20/11/2017 2:15:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Ujjivan Financial Services Ltd For Target Rs.347.00 - Equirus Sec

Ujjivan Financial Services (UJJIVAN) reported losses of Rs 120mn (EE: PAT Rs 43mn) for 2QFY18 on aggressive loan-loss provisioning (Rs 882mn). While collections improved, the bank is still not disbursing loans to new borrowers in ~41% branches (PAR >5%). Management guided to FY18E loan growth/provisions of ~18-20%/~Rs 3.0bn. While a ~96% share of micro loans should lead to a revival in PAT g

20/11/2017 1:20:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Castrol India Ltd For Target Rs.467.00 - Motilal Oswal

EBITDA beat led by higher volumes and realization

* CSTRL’s 3QCY17 revenue grew 13% YoY (declined 1% QoQ) to INR8.6b (our estimate: INR8.4b), driven by (a) higher volumes at 49.1m liters (our estimate: 48.5m liters; +8% YoY, -3% QoQ), and (b) better realizations at INR175/liter (our estimate: INR173/liter; +5% YoY, +3% QoQ).

* Reported

20/11/2017 1:15:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Titan Industries Ltd For Target Rs.800.00 - Emkay

* Results ahead of estimates – Revenue up 30.9% yoy at Rs 34.7bn led by strong revenue traction in the jewellery segment. EBITDA margins up 100bps at 11.5% on account of operating leverage. APAT up 51.5% at Rs 2.8bn

* Studded share at 36% for Q2FY18, down 600bps yoy. Jewellery segment SSG stood at 18%, while gold grammage grew by 49% during the quarter. Jewellery EBIT margins we

20/11/2017 1:12:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Glaxo Smith Kline Consumer Healthcare Ltd For Target Rs.5,400.00 - Motilal Oswal

Market share continues to decline, schemes impact gross margins

* GSK Consumer (SKB) posted 3.2% YoY sales growth (including operating income) to INR11.2b. EBITDA grew 6.6% YoY to INR2.6b (our estimate: INR2.3b), while adjusted PAT grew 4.7% YoY to INR1.9b (our estimate: INR1.75b). Like-to-like GST-adjusted sales grew 4.8% YoY. Like-to-like domestic s

Accumulate Petronet LNG Ltd For Target Rs.285.00 - Kotak Sec

PLNG’s Q2FY18 result is better than our expectation. The company has reported a PAT of Rs.5.9 bn up by 28.1% yoy and 35% qoq, resulting in a quarterly EPS of Rs.3.93 and CEPS of Rs.4.6. In Q2FY18, PLNG has booked highest total volume throughput of 220 TBTUs, 15% qoq and 17% yoy.

Dahej RLNG terminal operated at 110% capacity utilization (expanded capacity of 15 mmtpa) in Q2FY18.

20/11/2017 12:55:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Power Grid Corporation of India Ltd For Target Rs.251.00 - Emkay

* Capitalisation in Q2FY18 came in at Rs99.7bn, up 49.1% yoy, driven by commissioning of Alipurduar-Agra Pole 3&4, Champa Kurukshetra Pole 2 and Maheshwaram – Nizamabad Line. Capitalization in 1HFY18 came in at Rs135.2bn vs Rs91.5bn yoy (+47.5% yoy).

* Revenue increased by 16% yoy to Rs72.5bn, driven by 15.8% yoy/21.3% yoy growth in Transmission/Telecom businesses. EBITDA ma

20/11/2017 12:47:51 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dalmia Bharat Ltd For Target Rs.3,517.00 - Motilal Oswal

In-line quarter; Net debt reduction program on track

* Volume growth led by OCL: Cement volumes grew 6% YoY to 3.64mt (est. of 3.69mt) in 2QFY18, led by volume growth in OCL operations. Pure cement realization was INR4,945/t (-INR151 QoQ /+INR243 YoY), led by lower pricing in south and east. Revenue thus stood at INR18

20/11/2017 12:42:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Forge Ltd For Target Rs.844.00 - Motilal Oswal

Above est.; strong growth in non-autos drives EBITDA margin

Better mix, price hikes lead to operating performance beat: Revenue increased 34% YoY to INR12.6b (est. of INR12.4b), led by tonnage growth of 27% YoY to 58.7MT (est. of 56.8kMT) and realizations growth of 5.9% YoY (-1.6% QoQ) to INR214.5k/ton (est. of

20/11/2017 12:37:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy GHCL Ltd For Target Rs.358.00 - Emkay

* Gujarat Heavy Chemicals Ltd (GHCL) reported muted Q2FY18 performance on the revenue front owing to a 9% yoy drop in Home Textiles business. This was partially offset by a 10% yoy growth in Inorganic Chemicals.

* The overall EBITDA margin contracted by 597bps yoy to 19.0% (25% in Q2FY17) on account of client-specific slowdown in Textiles and input cost inflation in Organic Chemicals.

18/11/2017 12:43:12 PM | Posted in Broking Firm Views - Long Term Report read full news