Buy Yes Bank Ltd For Target Rs.359.00 - SPA Sec

Yes bank reported strong momentum on most of the metrics in P&L with 35% y-o-y loan book growth driving 30% y-o-y NII growth, 35% y-o-y other income growth and 34% y-o-y PPOP growth. Credit cost spiked 1.8 x y-o-y resulting in to 25% y-oy growth in PAT to INR 10bn. However, on the balance sheet front, it was a disappointment as there was high divergence on loan classification pertaining to

10/11/2017 3:17:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Cholamandalam Investment and Finance Ltd For Target Rs.1,350.00 - Emkay

* Cholamandalam Finance (CIFC) delivered a strong performance with growth momentum building up in the vehicle finance business and asset quality improving further (under 90- dpd NPL recognition regime), while recovery in the home equity business is gradual

* Disbursements grew strongly by 24% yoy (+13% qoq) to Rs54.9bn, with VF disbursements up 32% yoy (+12% qoq); Meanwhile, the disbu

10/11/2017 3:08:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral TVS Motor Company Ltd For Target Rs.764.00 - Motilal Oswal

At 317.4k (+2.8% YoY), volumes in line with est. of 310.5k

Healthy growth in scooters offsets fall in Mopeds

* TVS Motor’s Sep-17 sales were at 317.4k units (2.8% YoY; in line with est. of 310.5k units).

* Domestic volumes declined marginally by 0.6% YoY, while exports (14% of volumes) grew 2

10/11/2017 2:58:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ashok Leyland Ltd For Target Rs.145.00 - Motilal Oswal

Vols. up 3% to 12.9k (below est. of 13.6k)

MHCVs declined 3%, while LCVs grew 28.6% YoY

* AL’s Oct-17 wholesale dispatches were at 12,914 units (+3% YoY). n M&HCV volumes, which account for 70.5% of total volumes, declined 4.8% YoY (- 22.8% MoM) to 9,110 units (est. of 10,200 units).

* LCVs (Dost

10/11/2017 2:54:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tech Mahindra Ltd For Target Rs.535.00 - Prabhudas Lilladher

Tech M’s 2QFY18 results were inline with our estimates on revenues but delivered a beat on EBIDTA margin and PAT. Revenues at USD1179.2mn were up 3.6% QoQ and marginally above our estimates (PLe: USD1177mn). Revenues grew by 2.5% QoQ organically in USD (1.2% Organic growth in Constant Currency). Telecom vertical revenues (~43.7% of total revenues) were flat QoQ while Enterprise vertical (

10/11/2017 2:51:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy INOX Leisure Ltd For Target Rs.304.00 - Emkay

* GST implementation would restrict comparison of operating performance on yoy basis on account of input credit. Inox outperformed for the second consecutive quarter with robust 35% advertisement revenue growth.

*  Advertisement revenues of Rs334mn increased 35% vs 10% of PVR. Footfalls increase was impacted by sub-par content performance while SPH was flat due to higher proporti

10/11/2017 2:49:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Eicher Motors Ltd For Target Rs.36,487.00 - Motilal Oswal

RE (+17.5% YoY) below est; VECV (+16.1% YoY) in-line.

RE dispatches at 69.49k units (est. 72k units)

RE volumes increased 17.5% YoY to 69,492 units (below est. of 72,000 units). VECV's overall volumes increased 16.1% YoY to 5.16k units (est. of 5.28k units). Domestic LMD and HD segments grew 11.2% YoY an

10/11/2017 2:30:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors Ltd For Target Rs.562.00 - Motilal Oswal

Volumes grow 0.7% YoY to 53.2k units (below est. of 55k)

CV sales grew 1.2% YoY, while PV sales declined 0.4% YoY

* Tata Motors’ Sep-17 sales volumes increased 0.7% YoY to 53.2k units (est. of 55k units).

* PV segment remained flat, as the car segment volumes declined 22.5% YoY, while the UV s

10/11/2017 2:26:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra and Mahindra Ltd For Target Rs.1,585.00 - Motilal Oswal

Volumes down 5.9% YoY to 91.4k units (above est. of 85.3k)

Tractor volumes in-line at 40.3k units; UV, 3W sales above estimates

* MM’s volumes declined 5.9% YoY to 91.4k units (est. of 82.3k units), led by a decline in tractor and UV volumes.

* Tractors sales of 40.3k (-10.9% YoY) were in lin

9/11/2017 4:15:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki Ltd For Target Rs.9,466.00 - Motilal Oswal

Volumes up 9.5% YoY to 146.4k units (below est. of 150.5k)

Domestic sales grew 9.9% YoY to 136k

* MSIL’s Sep-17 wholesales came in at 146,446 units (+9.5% YoY), marginally lower than our estimate of 150,456 units. YTD growth was at 14.7%, with a residual monthly runrate of 153k units.

* Domesti

9/11/2017 4:11:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tech Mahindra Ltd For Target Rs.560.00 - Motilal Oswal

Profitability resurrection on track

* Enterprise led growth: TECHM’s 2QFY18 revenue of USD1,179m grew 3.6% QoQ. In CC terms, growth at 2.3% QoQ was a tad ahead of our estimate of +1.7% and implied cross-currency tailwinds of 130bp. The driver this quarter was Enterprise, which saw strong growth of 6.3% QoQ. Even e

9/11/2017 4:07:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Dabur India Ltd For Target Rs.372.00 - Emkay

* Dabur Q2FY18 reported comparable consolidated revenue growth of 8% yoy at Rs19.6bn, Standalone business grew by 10.7% yoy on a comparable basis. EBITDA was up 2.7% yoy to Rs4.2bn and APAT was up 1.3% yoy to Rs3.6bn

* Domestic FMCG business registered volume growth of 7.2% in-line with our estimates. International business reported 3.9% constant currency (CC) growth despite of macro

9/11/2017 4:06:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral KPIT Technologies Ltd For Target Rs.160.00 - Motilal Oswal

An all-round beat; Sustainable execution crucial for re-rating

* Strong revenue beat: 2QFY18 revenue growth of 4.3% QoQ CC beat our estimate of 1%. Growth was driven by a strong pick-up in the overlapping vertical of Automotive & Transportation (43% of revenue; 12% QoQ) and the service line of Product Engineering S

9/11/2017 4:01:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Marico Ltd For Target Rs.332.00 - Emkay

* Consolidated revenues at Rs 15.4bn, up 6.5% yoy (adjusted basis) in-line with our estimates. Domestic business reported 12% growth while International business declined by 8%.

* Domestic volumes grew by 8% due to competitive pricing and channel refilling. Parachute, Saffola & VAHO’s volumes grew by 12%/3%/12% respectively. Saffola was affected by disruption in CSD channel

9/11/2017 3:49:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy DB Corp Ltd For Target Rs.430.00 - Motilal Oswal

Circulation drive, ad recovery bode well

Higher RM cost dragged down PAT: Consolidated revenue grew 5.4% YoY (4.4% QoQ) to INR5.7b (3% beat). Adjusted for the INR104m one-off income (profit on the sale of Gitanjali Gems shares) in 2QFY17, revenue grew 7% YoY, led by increase in print revenue. Consolidated EBITDA declin

9/11/2017 3:42:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shriram Transport Finance Company Ltd For Target Rs.1,402.00 - Prabhudas Lilladher

SHTF reported another quarter of strong earnings with PAT of Rs4.79bn (PLe: Rs4.66bn) as NII growth remained strong at 21% on stable margins of 7.5% and loan growth of 13.5% with steady asset quality leading to credit cost being steady at ~280bps maintaining PCR at 71%.    Management commentary remains optimistic going ahead on growth front both from Rural/Urban markets. Growth h

9/11/2017 3:34:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hero MotoCorp Ltd For Target Rs.4,302.00 - Prabhudas Lilladher

While Hero MotoCorp’s (HMCL) Q2FY18 performance was marginally below expectations, operating margins at 17.4%, lower 20bps YoY but higher 110bps QoQ, surpassed our expectations of 16.9%. Revenue growth was 7.3% YoY to Rs83.6bn (PLe: Rs89.4bn), while EBITDA grew 6.3% YoY to Rs14.6bn (PLe: Rs15.1bn). The margin surprise was mainly on account of other expenses as a % of sales being lower 150

9/11/2017 3:26:31 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Dr. Reddy`s Laboratories Ltd For Target Rs.2,460.00 - Emkay

* Stronger-than-estimated Q2FY18 earnings was supported by rebound in PSAI business as well as better India/Europe formulations revenue. Decline in US revenue was also not as sharp as feared following the results posted by comparable peers.

* Cost cutting/deferment measures also helped support margins, including lower qoq R&D cost (down 17% qoq) and decline in SGA expense (down 3%

9/11/2017 3:18:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cholamandalam Investment and Finance Ltd For Target Rs.1,500 - Motilal Oswal

Go to town with the unassailable growth story

* Cholamandalam Investment and Finance’s (CIFC) 2QFY18 PAT grew 33% YoY to INR2.27b, beating our estimate by 7%, largely driven by stronger-thanexpected AUM growth and lower credit costs.

* AUM grew 4% QoQ and 14% YoY to INR365b, driven by 24% YoY disbursement growth. Vehicle finance had a

9/11/2017 3:13:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Blue Star Ltd For Target Rs.685.00 - Motilal Oswal

Operating performance below estimates

Impacted by weak performance from UCP division

* Revenue declined 6% YoY to INR8.3b (est. of INR9.6b) in 2QFY18. EBIDTA improved 17% YoY to INR0.5b (est. of INR0.6b), while adj. net profit increased 5% YoY to INR208m (est. of INR307m).

* UCP revenue rose 1% YoY

9/11/2017 3:08:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Hexaware Technologies Ltd For Target Rs.262.00 - Equirus Sec

Hexaware Technologies (HEXW) reported decent 3QCY17 earnings as though revenues were in-line with EE, margins were ahead. Revenues grew 0.9%/13.9% qoq/yoy as growth in non-top 5 was offset by customer specific challenges in 2 of the top-5 customers. EBITDAM increased 121bps qoq to 17.5% (16.2% EE) as calendar and partial wage hike headwinds were more than offset by operational efficiency and f/

9/11/2017 3:03:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate TVS Motor Company Ltd For Target Rs.750.00 - Prabhudas Lilladher

For Q2FY18 TVS motors reported revenue growth of 20% YoY at Rs40.5bn (Ple: Rs42.2bn) on back of ~16% YoY growth in volumes. While gross margins declined 110bps YoY, EBITDA margins surged 50bps YoY (up 240bps QoQ) to 8.6%, vs our expectations of 8.1%, on the back of lower employee costs and other expenses. Despite higher tax rate, finance cost as well as depreciation provision, adjusted profit c

9/11/2017 2:57:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate JSW Steel Ltd For Target Rs.294.00 - Emkay

* Revenue came in better than consensus at Rs168bn (+17%/+5% yoy/qoq) backed by better than expected offtake which stood at 3.92mt (+2%/+12% yoy/qoq) while blended realization fell by Rs1269/tn on weaker export prices and cheaper imports

* Better offtake and lower coking coal prices have helped EBITDA/tn to rise to Rs7,467/tn (+6/+19% yoy/qoq). Subsidiary performance remained lacklust

9/11/2017 2:52:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharti Airtel Ltd For Target Rs.680.00 - Motilal Oswal

Cost-structuring measures show results

n Africa delivers, finally: Consol. EBITDA of INR79.2b was up only 2% QoQ (- 16% YoY, 6% beat) due to a 1% QoQ drop in revenue. Africa surprised with a 7% QoQ revenue jump (-2% YoY) to INR52b, backed by a 5% dollar ARPU rise; Africa EBITDA surged 23% QoQ to INR16.8b on a leaner cost structure. India wireless reve

9/11/2017 2:46:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Central Depository Services (India) Ltd For Target Rs.435.00 - Reliance Sec

Strong Operating Performance; Maintain BUY

Central Depository Services (CDSL) has reported a strong set of operational numbers in 2QFY18. Its revenue rose by a healthy 22.4% YoY to Rs472mn led by 18.2% YoY growth in Depository segment. On the other hand, Data Processing revenue rose by a strong 35.2% YoY. The strong revenue growth was aided by good he

9/11/2017 2:34:09 PM | Posted in Broking Firm Views - Long Term Report read full news