Buy UltraTech Cement Ltd For Target Rs.3,950.00 - Sharekhan

Key points

* OPM sustained due to operational efficiency:

UltraTech Cement’s Q3FY2017 revenue at Rs5,540 crore (down 2% YoY; up 2.7% QoQ) was marginally affected by the demonetisation move. Lower volume of 11.4mt (down 0.6% YoY; up 2% QoQ) and reduced average blended cement realisation of Rs4,860/tonne

24/01/2017 12:12:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold DB Corp Ltd For Target Rs.403.00 - Emkay

Consistency to drive re-rating; Retain HOLD

* DB Corp reported marginal miss on print advertisement growth while reported healthy growth in Digital and Radio. Revenue beat of 2% was primarily driven by higher other operating income, which included one-time MTM gain on sale of investment.

* Circulation revenue growth continued to remain health

24/01/2017 12:03:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Rallis India Ltd For Target Rs.290.00 - RCML

Domestic market share gains continue

RALI reported Q3FY17 consolidated sales, EBITDA and PAT growth of 7%, 17% and 30% YoY respectively, led by strong volumes (11-12% YoY) and supported by benign RM costs. Realisations, however, declined 4-5% YoY. We believe the company continued to capture domestic market share in Q3 – this together with better

24/01/2017 11:55:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold UltraTech Cement Ltd For Target Rs.3750.00 - Reliance Sec

Reported operating performance of UltraTech Cement (UCL) came in broadly in-line with our estimates with reported EBITDA (+1% yoy & -5% qoq) at Rs10.4bn (vs. our estimate of Rs10.3bn) in 3QFY17. Though average net realizations dipped by ~2.5% qoq & ~1% yoy with visible upsurge in fuel prices, UCL’s operating cost/tonne remained resilient at Rs3,833 (-1.3% yoy & -0.4% qoq) owin

24/01/2017 11:48:02 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Rallis India Ltd For Target Rs.236.00 – Prabhudas

Rallis India results were in‐line with growth coming back in agrochemical exports led by Brazil. Domestic Pesticides business was stable with products like Origin, Contaf series, Takumi, Ergon and high margin PGN such as Tata Bahaar continue to do well. Seeds segment reported flattish revenues YoY primarily due to lower traction in paddy and coarse cereals which is reflected in Rabi sowing da

24/01/2017 11:41:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan Unilever Ltd For Target Rs.950.00 - Sharekhan

Key points

Volumes decline by 4% YoY; revenue flat due to higher realisations; OPM down YoY:

In Q3FY2017, Hindustan Unilever’s (HUL) revenue stood flat at Rs8,317.9 crore, which was affected by a 4% YoY decline in volumes due mainly to the government’s demonetisation move. The drop in volumes was

24/01/2017 11:37:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Motherson Sumi Systems Ltd For Target Rs.298.00 - Kotak Sec

MSSL has announced that they have approved a proposal to launch a voluntary public tender offer for the acquisition of the outstanding share capital of PKC Group Plc (PKC), Finland. PKC shareholders are being offered a cash consideration of Euro23.55 per share, representing an aggregate equity purchase price of ~ Euro571mn. PKC is a global tier 1 supplier of wiring harness to OEMs in the MHCV s

24/01/2017 11:30:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Ltd For Target Rs.110.00 - Emkay

Demonetization blip; underlying thesis stays intact

* NIIT Ltd reported weak operational performance for Dec’16 quarter impacted by demonetization blues on its Skills and Career (S&C) business while loss of a client impacted Corporate Learning Solution (CLS) business’ performance.

* Deal wins and scope extensions with large cl

24/01/2017 11:21:03 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Trident Ltd - Sharekhan

Key points ŠŠ

Better-than-expected Q3FY2017 results led by strong performance of Home Textiles division:

For Q3FY2017, Trident has reported a strong revenue growth of 25.9% YoY to Rs1,125.70 crore, which is better than our expectation of Rs1,049.30. The strong double-digit topline growth was mainly driven

23/01/2017 11:38:34 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Yes Bank Ltd For Target Rs.1,600.00 - RCML

Loan growth strong, asset quality stable – BUY

YES’s Q3 PAT grew 31% YoY to Rs 8.8bn led by strong growth in NII and non-interest income. Loan remained robust at 38% YoY whereas NIMs expanded 10bps QoQ to 3.5%. Asset quality was stable with GNPAs/NNPAs at 0.9%/0.3%. Slippages were lower sequentially at Rs 1.3bn but the bank evoked SDR on on

23/01/2017 11:24:34 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Technologies Ltd For Target Rs.95.00 - Kotak Sec

The S&C business has reported a 12.5% YoY fall in revenues in 3Q, because of the currency demonetization drive (our estimate : 9% de-growth). On the other hand, CLS reported an above-expected revenue growth of 14% QoQ in CC terms, as new projects scaled up. Margins in S&C were correspondingly hit whereas, the profitability in CLS was down to 10%, largely due to one-off provisions. The m

23/01/2017 11:19:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Axis Bank Ltd For Target Rs.465.00 - RCML

High non-watchlist slippages a concern – SELL

AXSB posted a grim Q3 as PAT spiraled down 73% YoY to Rs 5.8bn and asset quality sharply deteriorated (GNPA ratio 5.2% vs. 4.2% in Q2). While the bank’s watchlist of stressed assets declined 20% QoQ to Rs 111bn, nonwatchlist slippages remained high at 43% of total slippages. AXSB did not refina

23/01/2017 11:11:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On RBL Bank Ltd - Sharekhan

Key points ŠŠ

Strong operational performance, growth outpacing costs:

RBL Bank has posted stellar Q3FY2017 results, with its Net Interest Income (NII) coming in at Rs321.6 crore (up 44.6% YoY and 6.2% QoQ) while the net profit stood at Rs128.7 crore (up 58.8% YoY and 43.2% QoQ) on the back of robust busine

23/01/2017 10:55:32 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Canara Bank Ltd For Target Rs.200.00 - RCML

Stressed assets ratio high – maintain SELL

CBK reported an in-line PAT (Rs 3.2bn) and stable NIMs (2.2%) for Q3FY17. While slippages declined QoQ to Rs 22.3bn, stressed assets remained elevated at 13.6%. CBK had in-principal approval to restructure accounts worth Rs 25bn under S4A; outstanding loans under SDR/5:25 stood at Rs 75bn/Rs 63bn as of

23/01/2017 10:50:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Rallis India Ltd For Target Rs.236.00 – Emkay

Healthy volume growth in domestic segment; Upgrade to ACCUMULATE

* Consolidated revenues rose 7.5% yoy to Rs3.5bn and were marginally higher than our estimate of Rs3.4bn. Standalone revenues increased 8% yoy to Rs3.2bn while Metahelix revenues declined 5% yoy to Rs224mn.

* Gross margin improved 220bps yoy to 51.8% while EBITDA margin increase

23/01/2017 10:41:51 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold YES Bank Ltd For Target Rs.1,304.00 - Reliance Sec

YES Bank’s net profit grew strongly by 30.6% yoy & 10.1% qoq to Rs8.8bn in 3QFY17, led by robust growth in NII and 22.0% yoy & 28.6% qoq decline in provisioning expenses to Rs1.2bn. Its NII surged 30.3% yoy & 4.2% qoq to Rs15.1bn owing to strong growth in balance sheet and healthy NIMs (up 10bps to 3.5%). Loan book grew by 38.7% yoy (6.2% qoq) to Rs1171bn aided by 42.2% yoy &a

23/01/2017 10:33:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jyothy Laboratories Ltd For Target Rs.390.00 - Sharekhan

Key points

Volumes remain on a positive trajectory; OPM contracts by 60BPS due to higher input costs:

For Q3FY2017, Jyothy Laboratories’ (JLL) revenue (ex-excise duty) grew by ~3.3% YoY to Rs383.90 crore, driven by single-digit volume growth of 3.6% YoY. Demonetisation had an adverse impact on volume gr

21/01/2017 12:09:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy YES Bank Ltd For Target Rs.1,595.00 – Prabhudas

Yes Bank’s Q3FY17 performance continue to be on a strong foot on strong loan growth, stable NIMs and lower credit cost leading to strong PAT growth of +30% YoY. CASA franchise continued to improve partly helped by demonetisation and expect some CASA to remain in the bank. Valuations at 2.8x FY18E & 2.3x FY19E P/ABV looks attractive with significantly better growth & better asset q

21/01/2017 12:01:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Axis Bank Ltd For Target Rs.474.00 - Reliance Sec

On account of sharp 432.7% yoy (4.8% qoq) surge in provisioning expenses, Axis Bank continued to report below par performance in 3QFY17 as well. Upsurge in provisioning expenses led to earnings de-growth of 73.4% yoy. Higher provisioning was primarily attributable to Management’s decision to increase provision coverage ratio to 64% in 3QFY17 compared to 60% in 2QFY17 along with elevated f

21/01/2017 11:57:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Petronet LNG Ltd - Sharekhan

Key points Š

PLNG’s 5mmt Dahej expansion commissioned; de-risked business model:

Petronet LNG (PLNG) has expanded its Dahej terminal nameplate capacity to 15mmt (from 10mmt) in August 2016. By March 2017, the full capacity would come under the use or pay (UoP) system as the expanded capacity has a 6-m

21/01/2017 11:47:53 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Federal Bank Ltd For Target Rs.86.00 – Prabhudas

Federal Bank reported another quarter of strong performance with (i) NII growth of +30% YoY on better loan growth of 32% (partly due to acquired book in Q2FY17) (ii) sustained fees growth and (iii) comparatively lower credit cost sequentially on lower slippages. Asset quality trends were steady with slippage run‐rate coming off across segments except for retail which saw slight increase. We i

21/01/2017 11:36:27 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Axis Bank Ltd For Target Rs.560.00 - Sharekhan

Key points

* Asset quality decline impacts profits:

Axis Bank posted an unimpressive Q3FY17 results owing to asset quality issues and decelerated business growth impaired by demonetization. The net interest income grew by just 4.1% YoY due to tepid loan book growth of 10.1% YoY and high provisions. Net inter

21/01/2017 11:26:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Mindtree Ltd For Target Rs.490.00 - Reliance Sec

Mindtree has delivered a largely in-line performance in 3QFY17, with revenue declining by 0.4% qoq to US$192.2mn, while EBIT margin and PAT (Rs1bn) rising by 95bps qoq 8.8% qoq, respectively. The mid-sized IT firm has been able to arrest the revenue decline seen in 2QFY17. Notably, its order book metrics remained highly impressive as well, with highest-ever order wins of US$314m (up 71% qoq &am

21/01/2017 11:07:53 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold LIC Housing Finance Ltd For Target Rs.530.00 - RCML

Non-core business drives growth

LICHFL’s disbursements grew 15% YoY in Q3FY17 largely due to strong growth in developer loans, while the individual loan segment slowed down. Individual loans excluding LAP grew only 9%YoY. NIM increased by 7bps QoQ to 2.75% on account of a lower cost of funds. The incremental cost of borrowings in Q3 was less than

21/01/2017 11:02:56 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Havells India Ltd For Target Rs.325.00 - RCML

Dealer sops aid topline, but depress margins – SELL

HAVL posted an above-expected Q3 (revenue/adj. PAT: Rs 15bn/Rs 1.3bn; +13%/+12% YoY) as the company introduced pro-dealer measures to beat the demonetisation-led slowdown. However, these measures along with an adverse product mix depressed margins to 12.7%. We cut our FY17E/FY18E EPS by 2%/6% t

20/01/2017 11:44:39 AM | Posted in Broking Firm Views - Long Term Report read full news