Hold Tata Communications Ltd For Target Rs.705.00 - Emkay

Underlying performance not impressive; Cut to HOLD

* Data business was once again impacted by one-offs (access provision and demonetization impact on ATM business). Voice business continues to face structural headwinds with pressure on realizations.

* Underlying data revenue growth over the last two quarters has moderated to single digit yoy

26/05/2017 2:40:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Petronet LNG Ltd - Sharekhan

Key points

* Miss on operating profit led by lower-than-expected Dahej volumes and higher opex:

Petronet LNG’s (Petronet) Q4FY2017 operating profit of Rs616 crore (+24.1% YoY; +1.5% QoQ) was 14% lower than our estimate of Rs713 crore due to lower-than-expected Dahej re-gasification volume of 177.1tbtu (

26/05/2017 2:33:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Exide Industries Ltd For Target Rs.250.00 - Emkay

Result below estimates; margins likely to revive – Maintain BUY

* Exide Industries Q4FY17 EBITDA came below our estimates at 13.3%, while topline was largely in line with our estimates. EBITDA margin for the quarter stood at 13.3% (-170bps YoY) vs. our/consensus est. of 15.0% and 14.5% respectively

* On Consolidated level FY17 battery s

26/05/2017 2:25:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Oriental Bank of Commerce Ltd For Target Rs.150.00 - Motilal Oswal

Another weak quarter; Stress addition increases to AQR levels

* OBC reported loss of INR12.2b (~2x of FY15 and FY16 PAT combined) v/s est. loss of INR1.1b, primarily due to elevated credit costs of INR30.5b (8.2% annualized, highest in the history of the bank). Asset quality remains under pressure, led by elevated stress additions (INR39b v/s INR27b in

26/05/2017 2:09:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Eicher Motors Ltd For Target Rs.27,203.00 - Kotak Sec

EML's 4QFY17 reported numbers were on expected lines. Strong 21% volume growth resulted into 23% YoY growth in consolidated revenues. EBITDA margin at 31% was almost similar QoQ, but higher YoY. Consolidated PAT grew by 33% YoY. Profit from VECV JV jumped multifold YoY. Currently, Royal Enfield (RE) is facing capacity issue and hence sequential volume growth has been low. New plant will com

26/05/2017 1:59:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Arvind Ltd For Target Rs.425.00 - Emkay

Rising input costs impacts profitability

* Consolidated revenues grew by 10% yoy to Rs 24.6bn. EBITDA margins declined by 260bps yoy to 9.1%. APAT up 9% at Rs 1bn

* Unlimited and power brands drove the growth in Brand and Retail (B&R) by 22% yoy to Rs 8.3bn. Textile revenues grew at a steady 8% yoy to Rs 14.6bn, driven by a robust growth

26/05/2017 1:52:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Kalpataru Power Transmission Ltd For Target Rs.377.00 - Prabhudas Lilladher

Focusing on profitable growth

* Healthy guidance: Kalpataru Power Transmission (KPTL) reported sales of Rs14.9bn, up 12.5% YoY (PLe: Rs17.2bn). EBITDA improved 18% YoY to Rs1.57bn (PLe: Rs1.7bn), while EBITDA margin came in at 10.5%, up 50bps YoY (PLe: 10.2%). Improved profitability in railway business helped improve margins. Interest cost was down 13%

26/05/2017 1:40:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On VIP Industries Ltd For Target Rs.230.00 - Equirus Sec

Domestic volume growth posts a strong quarter, GST to force organized players into price hikes, Maintain LONG

VIP reported sales of Rs. 3,068mn in 4QFY17, in-line with EE. Given the highly competitive market situation and sluggish demand environment, VIP registered robust double digit volume growth in domestic business with volume growth of ~16%. 4QFY1

26/05/2017 12:12:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.580.00 - Sharekhan

Key points

* In line growth in revenues despite headwinds:

Zee Entertainment Enterprises’ (ZEEL) revenue remained flat (up 0.4% YoY; in line with estimate) at Rs1,528 crore (numbers for Q4FY2016 re-stated as per IND AS accounting standard). Advertising revenue too was flat YoY at Rs846.9 crore, affected

26/05/2017 12:04:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy J K Cement Ltd For Target Rs.1,291.00 - Motilal Oswal

Realization improvement and higher other operating income drive profits

Profitability improvement in 1QFY18 to continue

* White Cement volume growth at 5% YoY to at 0.29mt (est 0.3mt) and grey Cement volume declined by 2%YoY to 1.86mt (est 1.79mt). Grey cement volumes were better than estimates as volume decl

25/05/2017 2:45:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sadbhav Engineering Ltd For Target Rs.432.00 - Sharekhan

Key points

* Strong order book and healthy outlook on order inflows to boost earnings:

Sadbhav Engineering (SEL) has a strong order book of Rs7,708 crore (2.5x trailing 12 months’ revenues) spanning Transport (63%), Mining (23%) and Irrigation (14%) sectors. SEL has an impressive track record of completi

25/05/2017 2:37:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dr. Lal Pathlabs Ltd For Target Rs.1,125.00 -  LKP Sec

The Right Time to Check-In

Dr. Lal Pathlabs (DLP) managed to clock an annual top-line growth of ~ 15 % yoy from ₹ 7.9 bn in FY 16 to ₹ 9.1 bn in FY17 mainly on the back of a healthy 10 % patient volume growth from ~ 12.0 mn in FY16 to ~ 13.3 mn in FY17 as well as a better sales mix, resulting in improvement in realizations per patient from ₹ 660

25/05/2017 2:29:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate VRL Logistics Ltd For Target Rs.335.00 - Prabhudas Lilladher

VRL 4QFY17 results were below estimates primarily due to poor performance in Bus Transportation (EBIT loss of Rs43m Vs Ple of profit of Rs114m). This swing resulted in a 36% decline in PAT to Rs84m for Q4FY17 Vs Ple of Rs196m. VRL has added 38buses in FY17, however local competition kept the fill factor around 80% Vs 85% in FY16. Further, higher operating costs primarily diesel up 28% YoY to Rs

25/05/2017 2:17:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Rural Electrification Corporation Ltd For Target Rs.255.00 - Equirus Sec

REC should emerge without much damage to its asset base and NIMs post UDAY bond refinancing. Government’s commitment to power sector should enable 10-15% loan growth with NIMs above 4%. While write-offs will continue over FY18E-FY20E, we see lower incremental market risk in the private sector portfolio. REC is sweetly poised in terms of convergence of steady asset growth potential, reason

25/05/2017 2:03:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shree Pushkar Chemicals Ltd For Target Rs.242.00 - SPA Sec

Shree Pushkar Chemicals & Fertilizers (SPCF) reported strong ~18%/43% YoY growth in Q4FY17 revenue/PAT driven by healthy volume growth in dyes and fertilizer segment. Additional dyestuff capacity of 3000 MTPA is expected to be commissioned by Q1FY18. Integration of dyes business and introduction of auxiliary textile chemicals in FY18 would help SPCF to become a complete Textile Solution pro

25/05/2017 1:54:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Colgate Palmolive Ltd For Target Rs.1,109.00 - Reliance Sec

Wholesale De-stocking & Higher A&P Spend Impact Growth

Colgate-Palmolive has delivered a subdued performance in 4QFY17 with its revenues growing by 2.5% YoY to Rs10.3bn, while net profit remained largely flat at Rs1.4bn. Its overall quarterly volume fell by 3% YoY due to weakness in wholesale trade post demonetisation. Growth in net profit was

25/05/2017 1:44:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold HDFC Ltd For Target Rs. 1,528.00 - Emkay

Steady quarter

* HDFC Ltd.’s (HDFC) Q4FY17 performance was in line with expectations on all fronts; Reported profits were lower yoy due to lower investment gains, core PPOP (ex-dividend and investment gains) grew 14% yoy, largely in line with the overall loan growth

* Net loans (ex-loan sell downs) grew 14% yoy (+3% qoq) to Rs2.96 trill

25/05/2017 1:33:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Force Motors Ltd For Target Rs.5,210.00 - Religare Sec

Temporary blip, bright outlook...

Force Motors’ Q4FY17 numbers were marginally below our expectations. Revenue fell 6.8%, whereas EBITDA and PAT declined 14.3% and 25.3% respectively on YoY basis. We remain positive on the business of the company and expect strong growth from auto component segment. We are bullish on luxury cars segment (auto com

24/05/2017 2:30:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Punjab National Bank Ltd For Target Rs.160.00 - Prabhudas Lilladher

PNB’s earnings were better but the quality was weaker than expected mainly on one off income like IT refund, investment gains in pension assets and treasury gains resulting in avoiding loss at PBT levels. PPOP was helped by strong treasury income but bank continued to make high provisions towards ageing of NPAs which improved PCR. Asset quality improved as bank continued to make strong re

24/05/2017 2:19:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Kajaria Ceramics Ltd For Taeget Rs.714.00 - Equirus Sec

Kajaria Ceramics Ltd (KJC) reported revenue growth of ~10% yoy (7% above EE) as company saw pick-up in demand after a subdued 3Q hit by demonetization. Volumes/Revenues for 4QFY17 were up 11%/9% yoy led by own manufacturing & higher outsourcing. We expect neutral impact of 28% GST rate on Ceramic Tiles & Sanitaryware and expect demand to improve gradually. Accordingly, we downward revis

24/05/2017 2:10:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ramkrishna Forgings Ltd For Taeget Rs.613.00 - SPA Sec

Ramkrishna Forgings Limited (RKFL) is engaged in the manufacturing of forged components used in various industries (revenue contribution in FY16) which include Automotive (71%), Railways (4%) and Mining (3%). The company offers its products under categories such as rolled products, forged products and machined products. The company operates five manufacturing plants, three plants in Jamshedpur,

24/05/2017 2:00:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Godrej Consumer Products Ltd For Taeget Rs.1,985.00 - Sharekhan

Key points

* Revenue grows in double digits; OPM improves on YoY basis:

For Q4FY2017, Godrej Consumer Products’ (GCPL) revenue grew by ~13% YoY to Rs2,480.2 crore. The doubledigit revenue growth can be attributed to a 10% YoY expansion in the domestic business (driven by a 5% YoY volume growth and a 5% YoY price-led g

24/05/2017 1:48:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Asian Paints Ltd For Target Rs.1,143.00 - Reliance Sec

Growth Trajectory Impressive but Valuations Limit Upside

Asian Paints reported a mixed set of numbers for 4QFY17. While its consolidated revenues grew by 7.8% YoY to Rs39.5bn, EBITDA grew by a modest 2.1% YoY to Rs7.1bn. Consolidated net profit increased 10.1% YoY to Rs4.8bn on the back of higher other income. Volume growth in the decorative business

24/05/2017 1:42:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate DCM Shriram Ltd For Target Rs.64.00 - Emkay

Higher volumes and firm realization in sugar drives Q4 performance

* Sugar revenues surged 67% yoy to Rs5.5bn driven by 49% increase in sales volumes while realizations improved by 21% yoy. Sugar EBIT jumped 134% yoy to Rs1.3bn on account of better margins owing to firm prices and lower cost of production

* Chemical revenues at Rs4.6bn (+38%

24/05/2017 1:36:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Titan Company Ltd For Target Rs.505.00 - Motilal Oswal

Remarkable growth in Jewellery; Margin below estimates

* Titan’s (TTAN) 4QFY17 revenue grew 43.4% YoY (est. of +23.3%) to IN34.3b. EBITDA grew by 30.3% YoY to INR2.7b (In-line with estimates) and recurring PAT by 8.6% YoY to INR2.03b (est. of INR1.72b).

* Gross margin shrunk 420bp YoY to 25.1%, with EB

24/05/2017 12:30:40 PM | Posted in Broking Firm Views - Long Term Report read full news