Sell Voltas Ltd For Target Rs.400.00 - Motilal Oswal

Voltas-BEKO JV: Targeting 10% market share in 10 years

BEKO to bring technology, european brand, product range

We interacted with the senior management team of Arcelik on its plans for the Voltas-BEKO JV in India. Our key takeaways:

10-year targets: USD1b sales, 10% market share, 11% margin

19/06/2017 2:06:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tech Mahindra Ltd For Target Rs.470.00 - Emkay

Margins fall sharply in Q4; revival ahead

* TechM’s Mar’17 quarter results were disastrous on the margin front with EBIT margins slipping by 420 bps sequentially to 8.2% (lowest ever) resulting from both revenue and cost restructuring in Network Services business as well as large clients

* Enterprise business continues to do well

19/06/2017 1:54:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Time Technoplast Ltd For Target Rs.178.00 - Kotak Sec

Time Technoplast reported healthy operating level performance for Q4FY17. However profit estimates were missed due to higher tax provisions. Revenue growth was strong at 25% yoy aided by 24% y-o-y growth in volumes. EBITDA margins expanded on a y-o-y basis Stock. The company expects its debt to remain at the current levels as it would be meeting its future capex needs through internal accruals.

19/06/2017 1:46:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy KEC International Ltd For Target Rs.300.00 - Emkay

Stellar performance

* KECI operational performance exceeded our expectations. While revenues increased by 11% YoY, EBITDAM increased by 150bps YoY and APAT increased by 91% YoY.

* While the company reported 6.7% YoY revenue growth in T&D (excl. SAE), the railway segment surged 3x YoY. However, revenues in SAE declined by 2.6% YoY impacted

19/06/2017 1:39:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Castrol India Ltd For Target Rs.532.00 - Motilal Oswal

* We expect revenue to remain flat YoY (and grow +10% QoQ) at INR8.5b led by volume growth of ~1% YoY and realization at INR169/liter (flat YoY, +2% QoQ).

* We expect CSTRL to report EBITDA of INR2.3b (-7% YoY, +8% QoQ). EBITDA margin would be 27.4%, lower than 29.5% in 1QCY16.

* We estimate net profit at INR1.6b (-7% YoY, +2% QoQ).

* The stock trades at 28.8x CY17

17/06/2017 11:54:07 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate India Cements Ltd For Target Rs.222.00 - Emkay

Beats estimates amidst challenges; maintain ACCUMULATE

* India Cements’ (ICEM) Q4 results included impact of amalgamation of Trinetra Cement and Trishul Concrete and hence, it reported EBITDA of Rs1.9bn against our estimate of Rs1.5bn. Adjusted for the merger impact, we believe EBITDA was approx. Rs1.74bn.

* Cement sales volume was up 2

17/06/2017 11:46:11 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Parag Milk Food Ltd For Target Rs.245.00 - Motilal Oswal

Sales in-line; EBITDA margin expands 250bp YoY led by subsidiary turnaround

* PARAG reported net sales growth of 3.4% YoY (est. of +2.5%) to INR4.3b in 4QFY17. Healthy EBITDA margin versus low expectations after the disastrous 3QFY17 meant that EBITDA grew by 29.6% YoY (est. of -42%) to INR519m, and adj. PAT by 98% YoY to INR319m (est

17/06/2017 11:41:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Engineers India Ltd For Target Rs.195.00 - Kotak Sec

EIL reported Q4FY17 results, below estimates due to one off factors, adjusted for these costs result was higher than our estimates. Improved execution in PMC division and provision write back in LSTK (Lumpsun Turnkey Projects) led to PAT (net off one off costs) higher than our estimates. Order inflows remained encouraging in the quarter with order backlog at Rs 77 Bn implying three to four year

17/06/2017 11:37:18 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Triveni Turbine Ltd For Target Rs.138.00 - Emkay

Dull show as exports go downhill

* Triveni Turbine (TRIV) operational performance was below our and consensus expectations. While revenues declined by 13%YoY, EBITDAM declined by 530 bps YoY and APAT declined by 26% YoY.

* While domestic revenues increased by 28% YoY, exports declined by 39% YoY. Both product and aftermarket revenues declined

17/06/2017 11:24:06 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy MOIL Ltd For Target Rs.406.00 - Reliance Sec

Mixed Quarterly Performance; Volume to Remain Strong

MOIL has reported a mixed performance in 4QFY17. Its blended sales realisation zoomed 119% YoY and 20.4% QoQ to Rs11,309/tonne (vs. our estimate Rs9,250), while sales volume fell by 43% YoY and 38% QoQ to 2.16 lakh tonne vs. our estimate of 3.55 lakh tonne. Notably, MOIL liquidated substantial invent

17/06/2017 11:10:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Mirza International Ltd For Target Rs.161.00 - Kotak Sec

MIL management in Q4FY17 concall stated that company intends to double the revenue from domestic market in FY18 assuming strong contribution from new products and 20-25% growth in existing domestic brand business. The company has launched new products in sports segment and mid-range products under brand name Bondstreet. The management does not expect any major growth in exports business in FY18

17/06/2017 10:50:13 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral SITI Network Ltd For Target Rs.36.00 - Motilal Oswal

Re-aligning Phase III/IV monetization expectations; Maintain Neutral

Operational performance below expectations

* EBITDA (ex-activation) misses estimates:

Consol. EBITDA grew 5% QoQ to INR580m (est. of INR669m). EBITDA (ex-activation) grew 16% QoQ to INR96m (est. of INR127m), led

17/06/2017 10:35:39 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NTPC Ltd For Target Rs.179.00 - Emkay

One-offs impacted Q4 result; Upgrade to BUY on attractive valuation

* NTPC reported 11.4% YoY increase in reported revenue to Rs204.2 bn during Q4FY17. While revenues after adjusting for prior period sales increased 7.5% YoY to Rs199.1 bn (above our estimate of Rs192.1 bn).

* Derived realization and variable cost increased 4.5% YoY and 14.2%

17/06/2017 10:22:04 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Cummins India Ltd For Target Rs.1,018.00 - Kotak Sec

Cummins India underperformed Q4FY17 estimates on back of contraction in exports demand. Robust growth in domestic market offset subdued export performance in the quarter. Operating margins also disappointed due to unfavourable product mix.

Management gave FY18 growth guidance to 5-10% YY growth in domestic and flat to negative growth in international business. We roll forward our targ

17/06/2017 10:17:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Dhanuka Agritech Ltd For Target Rs.900.00 - Emkay

Normal monsoon to drive growth; Revise to Accumulate

* Dhanuka reported 9% drop in Q4FY17 revenues to Rs 1.6bn and was below our estimates (Rs 1.7bn) as well as consensus estimates. Low pest attacks, drought in South India were the key reasons for this weak performance

* Gross margins improved 660bps to 50.2% driven by better product mix and

17/06/2017 10:10:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Update On Procter & Gamble Hygiene & Health Care Ltd - Equirus Sec

We recently conducted channel checks to understand the demand scenario for sanitary napkins and how it could impact Whisper (PGHH brand). The opinion is that while there are near-term growth challenges in sanitary napkin category given low rural demand, long-term potential still remains intact. Our checks reaffirmed that PGHH (and all P&G companies likewise) are continuing to focus on profi

17/06/2017 10:02:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coal India Ltd For Target Rs.301.00 - Reliance Sec

Likely Demand Revival to Aid Off-take & Realisations

Coal India (CIL) has reported a subdued performance in the quarter ended March 31, 2017. In line with our estimate, its consolidated net sales rose by 8.3% YoY to Rs247bn in 4QFY17 driven by 5% YoY and 3% YoY increase in coal off-take and average realisation, respectively. Its net profit fell by

17/06/2017 9:54:05 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy HeidelbergCement Ltd For Target Rs.150.00 - Reliance Sec

Healthy Volume and Firm Pricing Aid Performance

HeidelbergCement India (HCIL) has reported in-line operating performance in 4QFY17 with its EBITDA coming in at Rs701mn (+9% YoY and +79% QoQ) vs. our estimate of Rs703mn. EBITDA/ tonne stood at Rs580 vs. Rs579 and Rs373 in 4QFY16 and 3QFY17, respectively. EBITDA margin stood at 15.5% (-74bps YoY and +536

17/06/2017 9:49:48 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Grasim Industries Ltd For Target Rs.1,236.00 - Kotak Sec

Result highlights

* Revenue growth largely in line with our estimates. Volumes continued to remain strong in VSF division and strong pricing in international markets supported firm prices during the quarter. VSF and Cement sales volume increased by 2% YoY each during the quarter while chemical division volumes declined by 6% YoY.

* Operating

16/06/2017 2:52:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bajaj Auto Ltd For Target Rs.2,900.00 - Emkay

Muted quarter; maintain HOLD on full valuation

Result highlights

* Bajaj Auto operating performance was tad below our and consensus estimates as EBITDA margins came 18.5% were below our consensus estimates of 19.2%/19.8% respectively. BSIII discount cost was Rs 160mn during the quarter.

* Management

16/06/2017 2:48:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jagran Prakashan Ltd For Target Rs.225.00 - Motilal Oswal

Ad performance better than peers in challenging environment

Note: Complete consol. P&L not reported for 4Q. All commentaries are on Standalone+Radio City+Mid-day – proxy to consolidated financials

* Consol. PAT up but misses estimate:

Consol. EBITDA grew 7.6% YoY to INR1.

16/06/2017 2:37:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Oil India Ltd For Target Rs.349.00 - Emkay

Below estimates

* Results missed our estimates due to higher employee expense and decline in crude oil/natural gas sales which led to lower reported EBITDA at Rs6.7bn v/s our est. of Rs9.4bn. An exceptional item of Rs.11.5bn. was reported on account of the differential royalty payment of pre-discount price and post-discount price.

* Thus, PAT

16/06/2017 2:23:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Motherson Sumi Systems Ltd For Target Rs.439.00 - Kotak Sec

MSSL's 4QFY17 revenues and PAT came in ahead of expectation. MSSL reported robust revenue growth in India and overseas operations. EBITDA margin at key subsidiaries improved during the quarter. We remain optimistic on MSSL's standalone business growth on account of healthy growth outlook for the passenger car industry and increasing wiring harness content in vehicles. At foreign subsidi

16/06/2017 2:10:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate CESC Ltd For Target Rs.894.00 - Emkay

Demerger announced: CESC to split into four listed entities

* CESC announced demerger of its business into four entities power generation, electricity distribution (Noida, Kolkatta & franchisee business), retail (Spencers') and other ventures (FSL). The move is aimed at unlocking values for its distinct businesses verticals.

* Standal

16/06/2017 2:01:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Coal India Ltd For Target Rs.279.00 - Emkay

Disappointing performance!

* Revenue came in at Rs 248 bn (+9%/+21% YoY/QoQ) higher than our estimate on the back of better than expected realizations. Realization of both FSA and E-Auction improved 6.8% and 3% to Rs 1376/tn and Rs 1611/tn respectively. FSA dispatch fell by 2.5% YoY.

* EBITDA stood at Rs 34 bn (-39%/-12% YoY/QoQ) due to overa

15/06/2017 2:47:34 PM | Posted in Broking Firm Views - Long Term Report read full news