Accumulate The Tata Power Company Ltd For Target Rs.89.00 - Kotak Sec

Tata Power reported higher than expected recurring profits in the quarters aided mainly by higher profitability at its coal mining operations. Demand for power has continued to remain weak which is reflected in decline in standalone revenue.

Coal prices have risen in recent months which has improved profitability of coal mining investments.

We value the stock at 1.4x FY19 bo

15/06/2017 2:37:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold JSW Steel Ltd For Target Rs.218.00 - Emkay

EBITDA/ tonne in line; Capex mode on again

 * Standalone topline stood at Rs 169 bn, up 60% YoY and 16% QoQ backed by strong volume of 3.96 mt, up 21% YoY and 9% QoQ. Realizations stood at Rs 42,807/ tn, up 32% YoY and 7% QoQ. Dividend at Rs 2.25/share; Consol net Debt/EBIDTA fell to 3.41x

* Standalone EBITDA/ tonne rose by 29% YoY and f

15/06/2017 2:30:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ipca Laboratories Ltd For Target Rs.480.00 - Motilal Oswal

Weak quarter; resolution of FDA issue key

* 4QFY17 revenue of INR6.7b (+7% YoY) came in 16% below our estimate, primarily due to muted performance by the generic and domestic businesses. EBITDA margin contracted significantly to 10.2% (-480bp QoQ and flat YoY) due to muted sales and lower gross margin. Reported PAT of INR444m included the impact of def

15/06/2017 2:16:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Electricals Ltd For Target Rs.402.00 - Emkay

Contracting lifts FY17, Consumer recovery in FY18

Result highlights

* Maintain BUY and raise TP by 21% to INR402. Catalysts from recovery in consumer business in 2H.

* 4Q EPS growth of 9% YoY was above expectations. Revenue missed due to slower execution in contracting business.

* Consumer revenue decline

15/06/2017 1:56:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hindustan Media Ventures Ltd For Target Rs.307.00 - Kotak Sec

HMVL's 4QFY17 results have come in below estimates. Going forward, we see some risks to the company's margins from circulation growth initiatives likely in Uttar Pradesh. We are also wary about cash utilization. We value the stock at 11X FY19E PER (discount versus DB Corp is justified on higher non-operating income, in addition with the risks associated with cash usage). We downgrade th

15/06/2017 1:47:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hindustan Unilever Ltd For Target Rs.1,100.00 - Emkay

Future looks promising; Retain ACCUMULATE

* Strong quarter on all front: Revenue grew by 6.4% yoy to Rs82.1bn, EBITDA grew by 12.1% yoy to Rs16.5bn while APAT grew 11.2% yoy to Rs11.1bn

* Volume growth at 4% led by refilling trade pipeline (100-150bps) and healthy growth across segment. Premiumisation trend has been strong across categories l

15/06/2017 1:38:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Hindalco Industries Ltd For Target Rs.169.00 - Reliance Sec

In-line quarter; Valuation Continues to Remain Pricey

Hindalco Industries has delivered an in-line performance in 4QFY17 with its standalone operating profit growing by 14.4% YoY and 13.7% QoQ to Rs13.5bn (vs. our estimate of Rs12.2bn). Revenue from Aluminium segment increased by 9.4% YoY and 12.8% QoQ led by higher sales volume. However, segmental EBI

15/06/2017 12:27:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Hindustan Unilever Ltd For Target Rs.1,165.00 - Sharekhan

Key points

* Stock moved up by 10% in one month; provides limited upside:

Hindustan Unilever (HUL)’s stock price moved up by 10% in last one month post its strong performance in Q4FY2017 and in expectation of a better performance in FY2018. The stock is currently trading at ~40x its FY2019E earnings wh

14/06/2017 2:39:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy PVR Ltd For Target Rs.1,666.00 - Motilal Oswal

Recovering post demonetization; outlook remains strong

* Revenue in-line, EBITDA below estimate:

PVR reported overall revenue of INR4.8b (est. of INR4.6b), as against INR4.1b in 4QFY16, marking growth of 18.4%. EBITDA margin expanded to 9.7% (est. of 11.3%) in 4QFY17 from 8.8% in 4QFY16. EBITDA stood at INR46

14/06/2017 2:30:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Divis laboratories Ltd For Target Rs.630.00 - Emkay

The challenge starts now

Result highlights

* While overall results were below expectations, the focus has anyways shifted to pace to remediation measures over the regulatory issues highlighted by US FDA

* In near term additional compliance related costs as well as well as possible loss of volumes eve

14/06/2017 2:20:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Tata Steel Ltd For Target Rs.453.00 - Emkay

Robust Europe drives performance!

* Robust performance in European operations with EBITDA/ tn of US$ 103, up from restated figure of US$45 for Q3FY17 and a loss of US$18 in Q4FY16. QoQ rise of 22% and 3% in deliveries and realizations was helpful to more than offset the coking coal costs

* Domestic EBITDA/tn rose 20% QoQ and 67% YoY to Rs13,5

14/06/2017 2:14:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy D B Corp Ltd For Target Rs.572.00 - Kotak Sec

DB Corp's results missed estimates modestly, as circulation revenues came in below estimates. Advertising revenues, flattish in the quarter, have likely remained below trend in April (weakness in real-estate being the key factor); however, the management expressed confidence about lowteens growth in advertising revenues for the full-year (favourable base of 2HFY17). We continue to forecast

14/06/2017 2:09:47 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Crompton Greaves Consumer Electricals Ltd For Target Rs.246.00 - Reliance Sec

Decent Performance to Continue; Maintain HOLD

Crompton Greaves Consumer Electricals (CGCEL) has delivered a decent performance in 4QFY17. Its net sales grew by 7.4% YoY to Rs10.7bn matching our expectation of Rs10.7bn. Led by betterthan- expected expansion in operating margin, its EBITDA and adjusted net profit grew by 9% YoY and 29.8% YoY to Rs1386mn

14/06/2017 1:58:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Sobha Ltd For Target Rs.401.00 - Emkay

Resilient Show

* Revenue of Rs5.9bn was 11% higher than estimate owing to higher than expected contracting revenue of Rs2.4bn which led to EBITDA of Rs1.2bn that was 13% higher than estimate and APAT of Rs470mn vs. estimated Rs380mn.

* Q4FY17 sales volume stood at 0.72msf (up 18% QoQ) worth Rs5.1bn (up 35% QoQ in value terms) owing to higher

13/06/2017 3:06:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Mangalore Refinery And Petrochemicals Ltd For Target Rs.144.00 - Kotak Sec

Despite marginal decline in crude throughput, MRPL has posted highest ever quarterly net profit. It has reported a PAT of Rs.19.4 bn in Q4FY17, up 243% qoq and 44% yoy mainly due to strong operating performance, forex gain and significant provision written back (one-off). The company has declared a final dividend of Rs.6/share, resulting in a dividend yield of 4.4%.

Due to shut down o

13/06/2017 2:57:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Solar Industries India Ltd For Target Rs.825.00 - Motilal Oswal

Operational performance below estimates; Defense contribution disappoints

* Operational performance marginally below estimate:

Consol. revenue rose 7.6% YoY to INR4.4b (est. of INR5.3b) in 4QFY17. EBIDTA grew 7% YoY to INR919m (est. of INR1.0b), with margin stable YoY at 20.8%, led by adverse product mix. Ad

13/06/2017 2:45:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Advanced Enzyme Technologies Ltd For Target Rs.421.00 - Emkay

Future Underperformance = P/E burn; Maintain Buy on new potentials

* Revenues at Rs 860mn (6.9% yoy) was slightly above our estimate, driven by double-digit growth in Animal (+19% Y/Y | 16.7% of Rev), Food (+55.3% Y/Y | 6.9% of Rev), Industrial Process (+46.4% Y/Y | 4.8% of Rev) and Human (+11.8% Y/Y | 72% of Rev) segment.

* On back of muted

13/06/2017 2:27:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hindustan Unilever Ltd For Target Rs.1,100.00 - Kotak Sec

HUL has delivered a strong set of financials in 4QFY17. Further, management commentary indicates confidence in improving industry scenario (normalisation following demonetization, and rising consumer confidence). The company's margin has surprised positively, and management comments indicate that the drivers are sustainable. We build in 17% CAGR in FY17-FY19E EPS, and value the stock at 40X

13/06/2017 2:14:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Shree Cements Ltd For Target Rs.18,560.00 - Emkay

Higher opex leads to EBITDA miss; valuations rich

* Shree Cement’s Q4 performance was below our estimates with EBITDA at Rs5.1bn against our estimate of Rs6.1bn and OPM at 21.5% against our estimate of 26.4% as freight cost was up Rs168/tn QoQ. EBITDA/tn was at Rs818, up 11.9% YoY.

* Sales volume of cement and clinker was up 11.2% YoY t

13/06/2017 2:10:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Talwalkars Better Value Fitness Ltd For Target Rs.328.00 - Religare Sec

Growth story remains intact……

Talwalkars Better Value Fitness Ltd (TBVFL) reported inline numbers for Q4FY17 with a revenue and PAT growth of 17% & 23.6% YoY. Led by cost efficiencies, EBITDA margins expanded 274bps YoY to 70.7%, which was encouraging. With steady gym additions, healthy same store sales growth and higher contribution

13/06/2017 2:01:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NTPC Ltd For Target Rs.195.00 - Reliance Sec

Better Days Ahead

NTPC’s reported earnings declined by 25.0% YoY to Rs20.8bn in 4QFY17 owing to impairment of Rs7.8bn in Ratnagiri Gas & Power and Rs8.7bn provisioning towards incremental employee cost (revision as recommended by 7th Pay Commission). Out of Rs8.7bn provisioning, Rs5.2bn has been considered as pass-through by way of regulatory

13/06/2017 1:51:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Ltd For Target Rs.103.00 - Kotak Sec

NIIT's 4Q numbers were better than our expectations, with S&C reporting a 3% YoY rise in revenues and CLS (excluding one-off strategic sourcing revenues) bringing in a 16% YoY CC growth. While S&C has recovered from the demonetization impact, CLS growth is above the guided level of about 13% annual growth, as new projects scale up. Margins improved in S&C business while they wer

12/06/2017 3:24:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Time Technoplast Ltd - Emkay

Robust performance delivered; value added to drive growth

* Consolidated Net Revenue reported at Rs 8.1bn (+25.4% yoy /+20.7% qoq), led by 25% growth in polymer segment and 26.5% growth in composite products.

* Gross margins remained flat yoy at 29.4%. Employee costs & other expenses have gone up by 29.2% & 21.7% YoY respectively with

12/06/2017 3:16:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Phillips Carbon Black Ltd For Target Rs.606 .00 - SKP Sec

Company Background & Product Highlights

Phillips Carbon Black Limited (PCBL), incorporated in 1960, in collaboration with Phillips Petroleum Company, is a part of RP-Sanjiv Goenka Group. It is the largest manufacturer of carbon black (CB) in India (46% market share by capacity) and seventh largest in the world, having an installed capacity of 4,72,

12/06/2017 3:09:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Fortis Healthcare Ltd For Target Rs.240.00 - Motilal Oswal

Weak 4Q; margin improvement is key

FORH reported weak 4QFY17 results. Sales increased 3.2% YoY to INR11.2b (est. of INR11.3b). EBITDA came in at INR790m (est. of INR1.1b), as against loss of INR288m in 4QFY16, attributed to muted EBITDA margin at Hospital (5%) and SRL (20%). Demonetization, coupled with stent price control, led to the miss in numbers.

12/06/2017 2:56:36 PM | Posted in Broking Firm Views - Long Term Report read full news