Buy Kitex Garments Ltd For Target Rs.631.00 - Motilal Oswal

Revenue in line, but miss on EBITDA margin and PAT

* Kitex Garments’ (KTG) revenue increased 20.5% to INR1,424m (est. of INR1,394m) in 3QFY17 from INR1,181m in 3QFY16.

* Revenue of garments segment grew 19% YoY to INR1,253m, while that of fabrics (net of inter segment sales) grew 31% to INR171m.

* EBITDA grew 17% to INR486m (e

10/02/2017 12:11:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Eicher Motors Ltd For Target Rs.24,164.00 – Kotak Sec

EML’s 3QFY17 came broadly as per expectations. The Royal Enfield (RE) business reported 43% YoY growth in revenues, 352bps YoY expansion in EBITDA margin and PAT growth of 65%. VECV JV business performance was subdued as demonetization took its toll on commercial vehicle (CV) demand. EML’s 2W wheeler business performance remained unscathed from demonetization impact. Given capacity

10/02/2017 12:04:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bharat Electronics Ltd For Target Rs.1,700.00 - Sharekhan

Key points

* Strong quarter:

After delivering strong Q2FY2017 results, Bharat Electronics (BEL) has reported yet another robust quarter, with beat across revenue, margins and net income levels. Revenue for Q3FY2017 grew by 37% YoY to Rs2,191.3 crore, led by improved order execution. Key orders executed durin

10/02/2017 12:00:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold V-Guard Industries Ltd For Target Rs.185.00 - RCML

Demonetisation effects to fade away

VGRD’s Q3 revenues were slightly ahead of estimates at Rs 4.6bn (+10.4% YoY) while EBIDTA margins merely inched up 8bps YoY to 8.4% on higher employee and other costs. Adj. PAT jumped 30% to Rs 279.6mn on lower interest cost and tax provisions, and higher other income. VGRD expects the demonetisation impact to

10/02/2017 11:56:43 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tata Communications Ltd For Target Rs.740.00 – Emkay

Focus on cash generation

* Voice business continues to face structural headwinds with pressure on realizations and EBITDA. Data segment was impacted by one-offs (sale of India data center, one-off litigation and DeMon impact on ATM business).

* FCF in 9MFY17 stood at Rs4.6bn vs Rs2.9bn in 9MFY16. Data segment is expected to deliver healthy pe

10/02/2017 11:46:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy LG Balakrishnan & Bros Ltd For Target Rs.694.00 - JHP Sec

LGB & Bros reported tepid set of results with both topline and bottomline coming in 28335 BUY below our estimates. Topline was largely flat on a YoY basis (our estimate- 8.0% growth) at INR 2840 mn whereas PAT declined by 14.5% (our estimate- 2.5% growth) to INR 132 mn.

 

Demonetisation impacting the business

The trickledo

9/02/2017 12:14:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Manpasand Beverages Ltd For Target Rs.854.00 - Religare Sec

Demonetization impacted revenue, but bottom-line impresses

India's leading fruit juice player, Manpasand Beverages reported below than expected revenue due to currency ban but profit growth surprised positively. Net sales increased by 13.9%, while Net profit surged by 49.1% on YoY basis. With doubling of capacity in the next 12-18 months, entry in

9/02/2017 12:07:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Monsanto India Ltd - Motilal Oswal

Revenue miss, but EBITDA and PAT beat estimates

* MCHM’s revenue increased 6.7% to INR1,639m (est. of INR1,767m) in 3QFY17 from INR1,537m in 3QFY16.

 

* EBITDA grew to INR600m (est. of INR498m) from INR466m in 3QFY16, implying growth of 29%. Margin expanded to 36.6% (est. of 28.2%) from 30.3% in 3QFY16, driven by employee

9/02/2017 11:58:31 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mirza International Ltd For Target Rs.119.00 – Kotak Sec

Mirza International Ltd Q3FY17 results were better than our estimates. Net revenue for the quarter grew by 5.5% yoy to Rs 2.28 bn as against our estimates of Rs 2.13 bn. The 35% yoy growth in domestic Redtape brand business and 4% yoy growth in footwear exports business which nullified the negative impact of 38% yoy decline in overall tannery business due to slower demand. The company’s b

9/02/2017 11:53:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Sharda Cropchem Ltd For Target Rs.490.00 - RCML

Robust volume-driven growth; outlook positive

SHCR reported strong revenue/EBITDA/PAT growth of 34%/42%/37% YoY for Q3FY17, beating our estimates driven by (1) robust volume growth of 31% YoY and (2) higher other income. The company maintained its FY17 volume growth guidance at 15-20% YoY with 18-20% EBITDA margins. However, we expect rising RM prices

9/02/2017 11:47:53 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy KEC International Ltd For Target Rs.170.00 - Reliance Sec

Aided by improved operating margins, consolidated PAT of KEC International (KEC) grew strongly by 139% YoY to Rs626mn in 3QFY17. However, its revenue dipped by 7.4% YoY due to lower T&D sales and delay in conversion of L1 orders. Strong order inflow so far this fiscal is in line with our estimates. This confirms our conviction that KEC would deliver strong growth in earnings, going ahead. T

9/02/2017 11:41:25 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Developers Ltd For Target Rs.305.00 - Emkay

Resilient show

Result highlights

* IRB’s Q3FY17 consolidated revenue & EBITDA were in line with our estimates. However, PAT beat our as well as street estimates on the back of lower depreciation charge.

* Company’s recently bagged BOT projects namely a) Kishangarh Gulabpara b) Gulabp

9/02/2017 11:35:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Larsen & Toubro Ltd For Target Rs.1,665.00 - Sharekhan

Key points

* Robust operational performance:

Larsen & Toubro (L&T) reported strong operational performance for Q3FY2017, with its Operating Profit Margin (OPM) expanding by 140BPS to 9.6% even after accounting for Rs100 crore provisions for receivables for the Nabha power plant. As a result, the opera

9/02/2017 11:28:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Wonderla Holidays Ltd For Target Rs.430.00 – Religare Sec

Higher operating expenses weighed on margins…

Wonderla Holidays Ltd surprised the street by reporting 39% yoy growth in sales amidst demonetisation woes. EBITDA and PAT declined by 28% yoy and 66% yoy respectively, led by higher operating expenses on account of newly opened Hyderabad park and increase in advertising and marketing expenses. The m

8/02/2017 1:36:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Somany Ceramics Ltd For Target Rs.780.00 - Emkay Global

Margin improvement to continue; Upgrade to BUY

* In Q3FY17, Somany Ceramics (SOMC) reported a revenue growth of 1.5% yoy to Rs4.2bn, higher than our and consensus estimates, led by volume growth. While top-line growth was in line with industry leader, SOMC, continued margin expansion despite challenging environment surprised positively.

* Mar

8/02/2017 11:48:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy HCL Technologies Ltd For Target Rs.910.00 - Reliance Sec

Background & Business

HCL Technologies (HCLT) is India’s fifth-largest IT services firm with US$6.7bn in TTM revenue. It offers a wide range of IT services including ADM, IMS, Enterprise Solutions, Analytics, Cloud, Systems Integration and BPO to a variety of industries mainly Financial Services, Manufacturing, Telecom, Media, Retail, Health

8/02/2017 11:41:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold ICICI Bank Ltd For Target Rs.240.00 - RCML

Watchlist shrinks, non-watchlist slippages stable

ICICIBC’s Q3 PAT at Rs 24bn came in higher than RCMLe (Rs 22bn). GNPAs increased to 7.9% while slippages fell to Rs 70bn. The bank’s stressed asset watchlist declined 15% QoQ to Rs 275bn. Non-watchlist slippages have remained at ~Rs 20-24bn over last 2-3 quarters, a key positive in our view.

8/02/2017 11:36:19 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Raymond Ltd For Target Rs.550.00 - Sharekhan

Key points

* Demonetisation affects performance in Q3FY2017:

Raymond posted a subdued performance in Q3FY2017, with revenue declining by 5.6% YoY to Rs1,306.9 crore against our expectation of Rs1,389.2 crore, mainly due to lower revenue in all its segments (baring Branded Apparels). The Textile and Tools &am

8/02/2017 11:32:35 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat Pipavav Port Ltd For Target Rs.175.00 - Kotak Sec

Improving product mix (liquid and Ro-Ro account for 10% of volumes and are expected to grow at a fast pace), recent commissioning of Khatuwas terminal (aids pickup in double-stacked rail volumes and addresses imbalance), operating leverage benefits and ongoing cost-reduction program at the port has helped the company report sales of Rs 1.7 bn (+2.3% YoY) and EBIDTA of Rs 1.04 bn. This has trans

8/02/2017 11:27:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Wipro Ltd For Target Rs.590.00 - Angel Broking

Wipro posted below expectations results for 3QFY2017. The Company’s IT services recorded revenues of US$1,903mn (US$1,919mn expected) v/s US$1,916mn in 2QFY2017, a qoq de-growth of 0.7%. Revenue in Constant Currency (CC) came at 0.6% qoq. In Rupee terms, revenues came in at `13,688cr (`14,096cr expected) v/s `13,766cr in 2QFY2017, dip of 0.6% qoq. On EBIT front, the company posted EBIT of

8/02/2017 11:20:21 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On GE T&D India Ltd For Target Rs.320.00 - Motilal Oswal

Beat at operating level driven by strong execution

But gross margin disappoints

* Sales increased 63% YoY to INR11.6b, exceeding our estimate of INR8.5b and consensus of INR8.7b. Strong execution was likely driven by commissioning of Phase 1 of the Champa-Kurukshetra HVDC line, which was being executed for P

8/02/2017 11:14:06 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tech Mahindra Ltd For Target Rs.600.00 - Angel Broking

For 3QFY2017, Tech Mahindra posted results much better than expected on all fronts. The company posted sales of US$1,116mn (US$1,091mn expected) v/s US$1,072mn, a qoq growth of 4.1%. In Constant Currency (CC) terms, company posted a 5.4% qoq growth. On EBIT front, the company posted EBIT of 12.4% (12.1% expected) v/s 11.5% in 2QFY2016. The utilization levels improved to 83.0% v/s 82.0% in 2QFY2

7/02/2017 12:40:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On KM Sugar Mills Ltd - Religare sec

Incorporated in 1971, KM Sugar Mills Ltd. (KSML) is an integrated sugar company engaged in manufacturing and supplying of bulk sugar and distillery products like industrial alcohol (rectified spirit / fuel based ethanol) and country liquor. Based in UP (largest sugarcane producing state in India), KSML has a crushing capacity of 9,000TCD, distillery capacity of 45KLPD and power generation capac

7/02/2017 12:26:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Bharti Airtel Ltd For Target Rs.306.00 - Emkay

Pain to continue in India wireless business

* India performance was marred by free offering by Jio and also due to DeMon. Continued efforts on improving efficiency realized results, translating into better than expected operating performance in Africa with sustained margin expansion.

* India- Wireless revenue declined 6% qoq, underperforming

7/02/2017 12:14:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cadila Healthcare Ltd For Target Rs.422.00 - Reliance Sec

Quarterly performance of Cadila Healthcare (CDH) came below ours as well as street expectations with Sales, EBITDA & PAT declining by 4% yoy, 27% yoy & 24% yoy, respectively in 3QFY17. US sales dipped by US$18mn to US$130mn owing to pricing pressure in base product portfolio, lower sales of Tamsulosin and withdrawal of Bupropion XL from the US market. Domestic formulations business grew

7/02/2017 12:07:26 PM | Posted in Broking Firm Views - Long Term Report read full news