Buy TVS Motor Company Ltd For Target Rs.505.00 - GEPL

Company Snapshot

TVS Motor Company Ltd. (TVS) is the India’s third largest two wheeler manufacturing company and head quartered in Chennai. The company is involved in the manufacturing of motorcycles, scooters, mopeds and three wheelers. TVS also has larger presence across geographies. The company has presence over 50 countries in Asia, Africa, a

30/03/2017 3:49:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Navneet Education Ltd For Target Rs.210.00 - Motilal Oswal Sec

Steadfast; growth gaining momentum

CBSE curriculum opportunity sizable; future-ready with digital offerings

* NELI dominates the market for supplementary educational material for the Maharashtra and Gujarat State Education Boards. Its domineering position makes it a key beneficiary of the sustained demand for

30/03/2017 3:07:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apollo Tyres Ltd For Target Rs.245.00 - Kotak Sec

We recently met the company. With new capacities coming on stream in India and Europe and demand environment improving, APTY is expected to witness healthy growth in revenues over the FY18-FY19. Further, ramp-up in the two wheeler space will also support growth for the company. Falling imports from China is positive for the truck/bus tyre demand. After witnessing a sharp increase, natural rubbe

30/03/2017 2:53:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Godrej Industries Ltd - Sharekhan

Key points

* Diversified portfolio through presence in multiple and growing sectors; some available at deep discount:

Godrej Industries (GIL) has a diversified portfolio of established businesses such as FMCG, Real Estate and Agri, which have the potential to register strong double-digit growth in the short t

30/03/2017 2:47:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Huhtamaki PPL Ltd For Target Rs.287.00 - Religare Sec

Meaningful revival on cards...

Established in 1950, Huhtamaki PPL Ltd (HPPL) is India's leading manufacturer of primary consumer packaging and labelling materials, offering a wide portfolio of packaging solutions that include flexible packaging, labelling technologies, specialized cartons, tube laminates, holographic solutions, etc. With 14 manufac

30/03/2017 2:42:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Phillips Carbon Black Ltd - SPA Sec

Phillips Carbon Black Ltd. (PCBL), a part of RP-SanjivGoenka Group, is India's largest and globally seventh largest carbon black (CB) producer. PCBL has four strategically located state-of-the-art plants at Durgapur, Palej, Cochin and Mundra with capacity totalling to 4,10,000 MTPA along with green power capacity of 76 MW. PCBL also has a dedicated capacity of Specialty Blacks of 40,000 MTP

30/03/2017 12:36:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bajaj Finserv Ltd For Target Rs.4,450.00 - Sharekhan

Key points

Private insurance players on the rise:

As per the latest IRDA data, private life insurance companies are gaining market share from the largest player ie LIC. In February 2017, the Annual Premium Equivalent (APE) for the private players grew by 23% YoY while the same for LIC was down 1% YoY. As a re

30/03/2017 12:28:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Developers Ltd For Target Rs.260.00 - Sharekhan

Key points

* Mumbai-Pune project tariff to rise 18% from April 1, 2017 - boosting overall toll revenue for FY2018:

Effective April 1, 2017, IRB Infrastructure Developers (IRB) will raise the toll tariff rate on the Mumbai-Pune expressway by 18%. The rise in tariff is as per the contractual agreement with the

29/03/2017 3:00:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Time Technoplast Ltd For Target Rs.130.00 - Kotak Sec

In our meeting with the promoters of Time Technoplast, the management shared outlook on its various businesses like Industrial packaging, Composite Cylinders, HDPE Pipes and Batteries. The management expects revenue growth of 15% and stable EBITDA margins in FY18.

The company is seeing strong demand for HDPE pipes from states like Telangana. It shelved plans to divest its battery busi

29/03/2017 2:55:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy VA Tech Wabag Ltd For Target Rs.800.00 - Sharekhan

Key points

* Swift implementation of Namami Gange programme provides order inflow visibility:

In March 2017, the Executive Committee (EC) of National Mission for Clean Ganga approved 20 projects worth Rs1,900 crore for building new sewerage treatment plants (STP), upgrading existing STPs and laying sewerage ne

29/03/2017 2:42:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Suven Life Sciences Ltd - SPA Sec

Hyderabad based Suven Life Sciences is a Contract Research and Manufacturing Services (CRAMS) based company with strong focus on drug discovery. Company has four manufacturing plants and three R&D centres. Suven has business relationships with 20+ innovators across the globe. Steady CRAMS business and low debt in spite of cash burning drug discovery research are key positives for Suven. Dur

28/03/2017 2:46:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Divis Laboratories Ltd For Target Rs.600.00 - RCML

Conference call takeaways

DIVI’s management hosted a conference call to address queries on the import alert received from USFDA for its Vizag Unit-2. Management stated that the import alert came as a surprise, and the company was in discussions with consultants to understand the reasons behind the imposition of clause 99-32. Note that post the 48

28/03/2017 2:38:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra & Mahindra Ltd For Target Rs.1,450.00 - Sharekhan

Key points

* M&M to introduce two new products in UV segment; to re-engineer existing UVs to regain market share:

M&M has highlighted strategies to regain market share in the Utility Vehicle (UV) space. M&M has been consistently losing market share in the UV segment (market share slipped from 48% i

28/03/2017 2:31:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hindustan Unilever Ltd For Target Rs.950.00 - Emkay

Input inflation to improve the sales growth; Retain ACCUMULATE

We met HUL to get recent updates on business and its strategy going ahead

* HUL is seeing gradual recovery in demand with wholesale channel is yet to normalize. However, the company is expecting improvement in growth driven by revival in rural dem

28/03/2017 2:22:02 PM | Posted in Broking Firm Views - Long Term Report read full news
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