Hold DCB Bank Ltd For Target Rs.196.00 - Arihant Capital

DCB Bank Ltd. reported strong growth this quarter. Operating Profit came in at Rs. 123 Cr. for Q3FY18 as against Rs. 109 Cr. in Q3 FY17 registering robust growth of 12%. Net profit increased to Rs 57 Cr up by 11% YoY and de-grew by 3% sequentially.

Deposits:

Deposits for the bank grew at 13% YoY and 4% sequentially. The CASA portion for the b

22/01/2018 2:56:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Infosys Ltd For Target Rs.1,250.00 - Motilal Oswal

Good show on profitability

Steady performance and outlook – an encouraging sign

* In-line revenues; optimistic on BFS recovery: 3QFY18 CC revenue growth of 0.8% QoQ was largely in line with our estimate of +1% QoQ. Led by higher furloughs, budget cuts and delayed ramp-up

22/01/2018 2:50:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy DB Crop Ltd For Target Rs.550.00 - Kotak Sec

DB Corp’s 3QFY18 results disappointed as the company reported weaker than expected advertising revenues and other expenses on account of Bihar launches came in higher than our estimates. Monthly trends shared by the management as well as the anniversary of advertising disruption that started with demonetization/ RERA and continued with GST indicate that the worst may be behind, in so far

22/01/2018 2:46:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Wipro Ltd For Target Rs.260.00 - Emkay

* Q3FY18 adjusted operating performance was largely inline with estimates with 0.9% QoQ revenue growth in CC terms and 17.2% IT Services EBIT margins; reported operating performance was impacted due to provision of Rs3,175mn relating to insolvency of a Energy & Utility client

* Mar’18 quarter revenue guidance at 1-3% QoQ growth is not inspiring; even at top end of guidance W

22/01/2018 2:40:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Capital First Ltd For Target Rs.960.00 - Motilal Oswal

Into a different league

A win-win combination

* The Boards of IDFC Bank (IDFCB) and Capital First (CAFL) have approved a merger of the two entities at a 13.9:1 swap ratio. We believe this merger would have benefits for shareholders of both companies, though near term regulatory & integration challenges pe

22/01/2018 2:35:01 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Adani Ports & Special Economic Zone Ltd For Target Rs.485.00 - Kotak Sec

Strong quarter – Future ready

Consolidated volume was reported at 47.61 mn tonnes (vs. 43 mn tonnes QoQ and 41 mn tonnes YoY) which reflects (1) strong growth in containers (+29% YoY) (2) rebound in coal (+13% YoY) and crude (+10% YoY) volumes and (3) healthy contribution from subsidiary ports. Consolidated revenue from operations increased to R

22/01/2018 1:16:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate ICICI Prudential Life Insurance Ltd For Target Rs.464.00 - Prabhudas Lilladher

ICICI PruLife’s margins were a beat to our expectations at 13.7% for 9MFY18 (Ple: 11% for FY18E) on better growth coming from newly launched high margin product and improvement in operational front. However, APE growth was lower than our expectations on high base effect on account of demonetisation. Management expects margins to be maintained and APE growth to slightly moderate going forw

22/01/2018 1:08:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Ultratech Cement Ltd For Target Rs.4,686.00 - Emkay

* UltraTech Cement’s (UTCEM) Q3FY18 result was below estimates with EBITDA at Rs11.5bn (vs. estimated Rs12.3bn) and EBITDA/tn at Rs739 (estimated Rs868). Volume growth of 36.7% and greenfield capex guidance of sub-US$100/tn was impressive.

* Grey Cement volume was up 36.7% yoy, led by JP Group’s acquired assets and strong organic volume growth (base effect). Utilization ra

22/01/2018 1:02:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Eris Lifesciences Ltd - SPA Sec

Eris Lifesciences develops, manufactures and commercializes branded pharmaceutical products in select therapeutic areas within the chronic and acute categories. The acute to chronic therapeutic ratio for FY17 was ~34:66. Company focuses on developing products which are linked to lifestyle related disorders and has a product portfolio comprising of 80 mother brand groups. Its product portfolio i

20/01/2018 10:48:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ultratech Cement Ltd For Target Rs.4,978.00 - Kotak Sec

Ultratech Cement earnings were ahead of our estimates. Volumes are not comparable with last year due to amalgamation of cement assets of Jaiprakash Associates but volumes were also ahead of our estimates for the quarter due to faster ramp up of JP cement plants. Blended realizations were up marginally YoY while increase in costs had put pressure on margins. Power and fuel cost and freight cost

20/01/2018 10:40:13 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy PC Jewellers Ltd For Target Rs.645.00 - Motilal Oswal

Demand outlook robust; growth opportunity massive Domestic jewelry retail business to grow at a CAGR of 25-30% over the next five years We recently met the management of PC Jeweller (PCJL). Our key takeaways:

* PCJL remains confident of 25-30% CAGR in the domestic jewelry retail business over the next five years.

* The franchisee model is working well so far; going forward,

20/01/2018 10:36:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gabriel India Ltd For Target Rs.222.00 - Kotak Sec

We met with the management of Gabriel India. Company is optimistic of healthy growth in revenues on the back of repeat business and new order wins. Exports and aftermarket continue to stay a key focus area. In exports, the focus is both on OEM’s and aftermarket. Gabriel continues to explore inorganic growth opportunities. Management is committed towards double-digit EBITDA margin. Given l

20/01/2018 10:29:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Adani Ports & Special Economic Zone Ltd For Target Rs.450.00 - Emkay

* Revenue of Rs26.9bn +22% YoY, -1% QoQ was largely in line with expectations as blended realizations were muted and SEZ income of Rs4.02bn booked during the quarter was lower than expected

* Port income stood at Rs19.4bn +14.5% YoY, +7% QoQ on account of uptick in consolidated volumes at 47.6MT (+16% YoY and +11% QoQ)

* Port EBITDA margin of 70.5% during the quarter was up

20/01/2018 10:19:10 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan Media Ventures Ltd For Target Rs.305.00 - Motilal Oswal

Lackluster growth, but outlook improving

* Muted revenue growth: 3QFY18 revenue came in flat YoY (9% QoQ) at INR2.3b (in line v/s est. of INR2.35b), despite a low base (3QFY17 was impacted by demonetization), largely due to (i) shift of Diwali ad spends to 2Q this year and (ii) lackluster local ad spend due to GST-rela

20/01/2018 10:14:33 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jyothy Laboratories Ltd For Target Rs.427.00 - Reliance Sec

Growth Back on Track

Backed by 11.5% volume growth, Jyothy Laboratories (JYL) has reported revenues, EBITDA and net profit of Rs4.3bn, 693mn and 329mn, respectively in 3QFY18. Adjusted for GST-related accounting impact, revenues for the quarter rose by 15.9% YoY. We expect JYL to report revenue and adjusted earnings CAGR of 9.8% and 21%, respectively t

20/01/2018 10:10:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shree Cements Ltd For Target Rs. 22,424.00 - Motilal Oswal

Low-cost acquisition in the UAE aligns well with long-term strategy

* In-line results: SRCM reported healthy volume growth of 8% YoY, led by a favourable base (3QFY17 was impacted by demonetization). Cement realization fell 1% QoQ to INR4,120/t due to lower prices in its focus markets. Unitary cost increased 14% YoY (3

20/01/2018 10:05:29 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NCL Industries Ltd For Target Rs.271.00 - Ventura Sec

NCLI (Nagarjuna Cement Ltd Industries) has recently completed its capex in both its leading verticals of cement (0.7 MTPA) and particle boards (30,000 TPA). Post this the cement capacity stands elevated to 2.7 mtpa while the particle board capacity has expanded by 50% to 90,000 TPA. Further, the company plans to commission a MDF board plant with capacity of 1000 boards per day by Sept FY19. Thi

19/01/2018 2:41:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.2,076.00 - Motilal Oswal

Strong core operating performance, asset quality deteriorates slightly

* IndusInd Bank's (IIB) 3QFY18 PAT grew 25% YoY (in-line) to INR9.4b. NII grew 20% YoY, led by robust advances growth of 25% YoY, even as calculated NIM shrunk 15bp YoY (reported NIM was flat YoY at 3.99%).

* Total income grew 18.7% YoY due to relatively low other inco

19/01/2018 2:35:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bharti Infratel Ltd For Target Rs.340.00 - Emkay

* Bharti Infratel was impacted by slowdown in gross additions and accelerated exits. Full impact of exits accounted in Q3FY18 would affect rental revenues in Q4FY18. Demand from JIO might improve going forward but the same would be offset by incremental exits.

* Energy margins and cost controls led to better-than-expected EBITDA. BHIN has reported energy margin of 7% in 9MFY18 vs 5.5%

19/01/2018 2:28:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Tata Consultancy Services Ltd For Target Rs.2,700.00 - Motilal Oswal

Recovery in Retail offset by muted BFS outlook and margin risks

* Counterbalancing forces keep us subdued: After declining for three quarters (YoY CC), Retail recovered with 3% YoY CC growth, and TCS expects this to reach double-digits in FY19, a key positive from its 3Q earnings. However, 1.5% QoQ CC decline in BFSI (

19/01/2018 2:19:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.678.00 - LKP Sec

Super Ad growth offsets subscription de-growth, Maintain BUY

Q3 bottomline below expectations

Zee’s topline in Q3 grew by 12.1% despite domestic and international subscription revenues posting weak performances at a blended decline of 15.5% yoy. Excluding the sports business and the two acquisitions done

19/01/2018 1:07:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan Unilever Ltd For Target Rs.1,514.00 - Reliance Sec

Stellar Performance on Lower Base & Demand Recovery

On the back of lower base effect coupled with increased growth momentum, Hindustan Unilever (HUL) has reported strong set of numbers for 3QFY18. While net sales came in at Rs83.2bn (vs. our estimate of Rs83.7bn), EBITDA grew by 24% YoY to Rs16.8bn (vs. our estimate of Rs16.5bn) and net profit befo

19/01/2018 1:01:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy South Indian Bank Ltd For Target Rs.40.00 - Choice Broking

South Indian Bank (SIB) Q3FY18 result was in line with our expectations with strong performance on business as well as financial fronts. While the growth in NII and PAT improved significantly, advances of the bank rose by ~17% on the back of bank’s renewed focus on retail and SME sectors. Quality of earning improved with GNPA reducing by17 bps to 3.4% in Q3FY18 (3.6% in Q2FY18) and stress

19/01/2018 12:50:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Mind Tree Ltd For Target Rs.550.00 - Emkay

* Mindtree reported strong Q3FY18 with 3.9% qoq growth in CC terms, driven by 3.8% qoq growth in pricing (led by several projects moving from transition to steady-state status). However, the management maintained a stable outlook for pricing on like-for-like basis.

* Digital revenue grew by 7% qoq (27% yoy), with deal wins up by 9.4% on TTM basis. Despite 7% qoq decline in total deal

19/01/2018 12:41:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sterlite Technologies Ltd For Target Rs.500.00 - Emkay

Four reasons why you should be buying SOTL

* Reiterate BUY with 37% upside to our revised TP of Rs500. Four key takeaways from 9MFY18 results that support our BUY call: 1) most operating metrics beat Emkay/consensus forecasts, with strong growth in optic fiber sales and margin expansion; 2) a big jump in orderbook backed by strong overseas demand; 3)

18/01/2018 2:43:02 PM | Posted in Broking Firm Views - Long Term Report read full news