Hold Mahindra & Mahindra Ltd For Target Rs.1,300.00 - RCML

Management meet takeaways

We met Dr. Pawan Goenka, Managing Director, as well as MM’s management team to discuss next year’s outlook and the way forward for the company. Key takeaways: 

 

Auto segment

* Corrective measures to stem market share decline

27/03/2017 2:34:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Carborundum Universal Ltd For Target Rs.305.00 - Kotak Sec

CUMI's growth in the coated and bonded abrasives segment in India and overseas is expected to last into FY18 as well. Sale of value-added premium products continues to remain strong across verticals. Improved economic activity would further lead to increased capacity utilization across verticals. Restructuring of Thukela and Foskor remains on track. The company recently announced that it is

27/03/2017 11:54:48 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Donear Industries Ltd - Sharekhan

Key points

* Strong brand in domestic fabric space:

Donear Industries (Donear) is one of the fastest growing fashion fabric companies in India and has built a brand in men’s Suitings, Trousers and Shirting Fabrics. The company primarily caters to premium to mid-premium segments in the domestic market. Do

25/03/2017 3:55:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IL&FS Transportation Networks Ltd For Target Rs.145.00 - Sharekhan

Key points

* YuHe expressway stake sale to reduce debt by ~Rs2,000 crore:

IL&FS Transportation Networks (ITNL) is looking to sell its 49% stake in its joint venture with China’s Chongqing Expressway Group (CEG). The proposed sale is expected to fetch more than $170 million (ITNL had purchased the sta

25/03/2017 3:44:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Oil India Ltd For Target Rs.352.00 - Sharekhan

Key points

* Upstream PSUs demand floor price for gas at $4.2/mmbtu - expect 14% upside to our FY2018E EPS of Rs29.2 for Oil India:

Upstream PSU (ONGC) has asked the government to review the domestic gas price formula and fix a floor price for gas at $4.2/mmbtu, which translates into an increase of 50% from th

24/03/2017 2:26:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell TVS Motor Ltd For Target Rs.345.00 - RCML

PAN card compulsion in TN a near-term negative

* As per a Transport Department circular dated 14 March 2017, registration of all motor vehicles in Tamil Nadu will require details such as the buyer’s PAN, Aadhar and mobile number. These details will then be included in the vehicle’s Registration Certificate. The regulation will be effective

24/03/2017 12:35:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Marico Ltd For Target Rs.310.00 - Sharekhan

Key points

Stock is up by 13% in quick time; positives priced in the current valuation:

Marico’s stock price has risen by 13% since our ‘Buy’ recommendation in our last Stock Update report dated February 3, 2017. The company’s top management has recently indicated that Marico’s b

24/03/2017 12:29:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Parag Milk Foods Ltd For Target Rs.222.00 - Emkay

High milk procurement cost to keep margins under pressure; Retain Hold

We met with management of Parag Milk Foods to get recent updates on business and the strategy for the company going forward

* Procurement cost at elevated levels ~Rs 29/litre vs Q3FY17 average of Rs 27.5/litre. Have initiated 8% price hike in Jan’17

24/03/2017 12:23:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Dr. Reddy's Laboratories Ltd For Target Rs.2,875.00 - Motilal Oswal

Duvvada 483 observations out; data integrity issues persist

* Dr Reddy’s Labs (DDRD) has been issued 483 observations (4–5 are repeated) by the US FDA for its Duvvada plant. The FDA investigation has also revealed data integrity issues (e.g., Observation 3, 4). Given that the FDA has maintained a zero tolerance policy toward oncology inject

23/03/2017 2:55:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Divi's Laboratories Ltd For Target Rs.600.00 - Motilal Oswal

Regulatory uncertainty to keep stock price range-bound in near term

* US FDA has issued an import alert on DIVI’s Visakhapatnam-based plant, Unit-2. However, it has exempted nine products including Naproxen and Gabapentin from the import alert list. n US FDA had inspected Unit-2 for eight days from November 29 to December 06, 2016, following whic

23/03/2017 2:48:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold V-Guard Industries Ltd For Target Rs.185.00 - Sharekhan

We recently interacted with the management of V-Guard Industries to get a deeper insight into the company’s business. The key takeaways are given below. 

Key points

Price hike to combat commodity inflation:

The management of V-Guard Industries guided that they have taken a price hike of ~

23/03/2017 2:39:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Delta Corp Ltd For Target Rs.229.00 - Motilal Oswal

Delta Corp (DELTA) is India’s only listed gaming company, with a dominant presence in Goa’s offshore casino market. It owns three of the six offshore (five operational) gaming licenses in the state of Goa. It has ~1,700 gaming positions in the state across its three offshore casinos, one onshore casino and recently commenced casino in Sikkim. DELTA has an integrated casino resort in

23/03/2017 2:33:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apollo Tyres Ltd For Target Rs.238.00 - Sharekhan

Key points

* Demand outlook improves as threat from Chinese imports set to recede:

Apollo Tyres (ATL) is likely to witness a revival in demand in the Truck & Bus replacement segment (accounts for ~39% of standalone and 25% of consolidated revenue). In a recent order, the US Department of Commerce has issued a not

23/03/2017 2:21:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Marico Ltd For Target Rs.335.00 - Motilal Oswal

Demand outlook improving; focus on technology paying off

Rural growth and food inflation are the key monitorables

We met management of Marico (MRCO) to understand the company’s distribution and rural strategy. Key takeaways:

* We were impressed with the pioneeri

23/03/2017 1:27:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Eveready Industries Ltd For Target Rs.293.00 - GEPL

Company Snapshot

An Eveready industry (India) Ltd (Eveready) is head quartered in Kolkata and it is considered as one of the India’s largest dry cell battery manufacturing The company is a part of Williamson Magor India Ltd. Besides dry cell batteries the company also started manufacturing flashlights, LED lightings and packed tea. The company ho

22/03/2017 4:10:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Aarti Industries Ltd - Sharekhan

Key points

* Strong foothold in Benzene-based products; increasing focus on downstream products:

Aarti Industries (AIL) is ranked in the top four globally for 75% of its product portfolio, with more than 50% of its revenue being derived from exports. With a strong foothold in Benzene-based value chain, globall

22/03/2017 3:15:51 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Divis Laboratories Ltd - Sharekhan

Key points

The event:

The US Food & Drug Administration (USFDA) has issued an import alert for Divis Laboratories’ Unit-2 at Visakhapatnam, Andhra Pradesh. The US regulator has exempted ten products of the company from the import alert (Levetiracetam, Gabapentin, Lamotrigine, Capecitabine, Naproxen

22/03/2017 12:30:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Emami Ltd For Target Rs.1,200.00 - Emaky

Focus on double digit volume growth; Maintain Buy

We had a conference call with Emami management to get recent updates on business and strategy for the company going ahead

* The impact of demonetization persist and demand still not back to pre-DeMon levels. Gradual improvement is witnessed but wholesale channel (50% of sales) has still not co

22/03/2017 12:23:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HCL Technologies Ltd For Target Rs.965.00 - Sharekhan

Key points

To return ~27% of cash to investors through buyback:

The Board of Directors of HCL Technologies (HCL Tech) at its meeting held on March 20, 2017, approved the buyback of up to 3.5 crore equity shares (2.48% of outstanding equity capital after the allotment of shares to the shareholders of Geometric

22/03/2017 12:15:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Divis Laboratories Ltd For Target Rs.600.00 - RCML

Import alert shocker at Vizag; downgrade to HOLD

The USFDA has issued an import alert at DIVI’s Unit-II Vizag plant, albeit with some product exemptions. While this is better than a full import ban, we worry about the potential cascade of structural issues such as order cancellations, loss of customer confidence and rigorous inspections by other

22/03/2017 12:06:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Future Lifestyle Fashions Ltd For Target Rs.316.00 - Emkay

The Future is Bright

* Future Lifestyle Fashions Ltd. (FLFL) is a leading branded-fashion player in the country with a portfolio of over 25 brands. We expect FLFL's revenue to grow by 18% CAGR over FY16-19E

* Owned and licensed brands command higher gross margins and have outpaced third-party brands over the past two years. We expect impr

21/03/2017 4:08:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy City Union Bank Ltd For Target Rs.170.00 - LKP Sec

Incorporated in the year 1904, City Union Bank (CUB) is an old generation private sector bank headquartered in Tamil Nadu. A professionally managed bank with no identifiable promoters, CUB mainly caters to the retail/wholesale traders with a granular asset profile. With a workforce of 4,709 employees (Average age <30 years), CUB has a network of 528 branches and 1408 ATMs as on January 01, 2

21/03/2017 3:48:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On RBL Bank Ltd - Sharekhan

Key points

* Strategy of modernising bank with deeper customer engagement:

RBL Bank has been successful in transforming itself from a regional bank to a new-age private bank. We are also positive on its strategy of deeper customer engagement. Addressing funding needs by following strategies to engage clients m

21/03/2017 2:19:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Idea Cellular Ltd - Emkay

Betting on long term cost synergies, near term challenges to persist

* Idea Cellular and Vodafone India announced merger with equal rights in the combined entity. The merged entity would exclude Vodafone's 42% stake in Indus Towers while Idea’s 11.15% stake in Indus is part of the deal. Idea is valued at enterprise value of Rs722bn while Voda

21/03/2017 12:41:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold UltraTech Cement Ltd For Target Rs.4,240.00 - Sharekhan

Key points

Pan-India cement price hike at Rs15-30/bag MoM in March 2017 barring South; demand continues to be weak:

Our discussion with the cement dealers across India hints that cement prices increased by Rs15-30 per bag MoM in March 2017 across the country except South (where cement prices declined by ~Rs20

21/03/2017 12:34:40 PM | Posted in Broking Firm Views - Long Term Report read full news