Buy JK Lakshmi Cement Ltd For Target Rs.512.00 - Motilal Oswal

EBITDA beat led by higher-than-estimated realization

* Healthy realization in Gujarat market: JKLC’s volume increased 10% YoY (-17% QoQ) to 1.89mt (est. of 1.92mt), as capacity expansion led to strong volume growth in east. Realization rose 8% YoY (+4% QoQ) to INR4,109 (est. of INR3,814), led by healthy pricing i

1/12/2017 2:25:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jagran Prakashan Ltd For Target Rs.225.00 - Motilal Oswal

Print ad market yet to recover

* PAT down 19% YoY on weak revenue growth, higher cost: Consol. revenue increased 2% YoY to INR5.7b (4% miss) in 2QFY18. Consol. EBITDA declined 9.4% YoY (15% miss), with the margin contracting 310bp YoY to 24.5% due to higher employee/other expenses. Advertising revenue increased margina

30/11/2017 4:09:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Gujarat State Petronet Ltd For Target Rs.184.00 - Motilal Oswal

EBITDA below estimate; in-line transmission volumes

Reported revenue rose 31% YoY (+13% QoQ) to INR3.3b, falling short of our estimate of INR3.6b, primarily due to lower implied tariffs. EBITDA of INR2.9b (+27% YoY, +3% QoQ) was below our estimate of INR3.1b due to higher O&M expenses of INR123/mscm (+59% YoY, +144% QoQ). PAT came in at INR1.8b (i

30/11/2017 4:04:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Allcargo Logistics Ltd For Target Rs.205.00 - Kotak Sec

ALL has reported strong volume growth in the key segment of Multimodal Transport Operations (MTO) at 1.43 lakh TEUs (+3% QoQ and +12% YoY), however the Container Freight Station (CFS) segment disappointed at 65,362 TEUs (-5.6% QoQ and -17% YoY) with weak Exim trade, competition and negative impact of Direct Port Delivery (DPD) mechanism. Even project division disappointed with weak private cape

30/11/2017 3:59:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors For Target Rs.510.00 - Emkay

* JLR’s Q2FY18 OPM grew by +90bp yoy/ +390 bp qoq to 11.8%, above our estimate of 9.4%, owing to better mix, higher scale and benign forex. Realized forex losses are expected to be lower at GBP793mn for next 4 quarters vs GBP797 in last 2 quarters.

*  Standalone OPM expanded by +360bp yoy/ +700bp qoq to 6.2%, above our forecast of 4.4%, led by better mix, higher scale and c

30/11/2017 3:54:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Proctor and Gamble Hygiene and Health Care Ltd For Target Rs.9,267.00 - Motilal Oswal

Healthy operating performance, fair valuations

* 1QFY18 (June year-end) net sales grew 9.5% YoY (est. of -2.4%) to INR6.6b. EBITDA grew impressively by 24.0% YoY (est. of +19%) to INR1.15b. Adj. PAT rose 10.6% YoY (est. of +11.5%) to INR1.16b. Management called out a strong performance in the feminine hygiene and healt

30/11/2017 3:49:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Voltas Ltd For Target Rs.610.00 - Kotak Sec

Voltas delivered all-round good set of quarterly numbers led by strong performance of the MEP segment. As a result, broad numbers were higher than our estimates. Improvement in order book and sustained uptick in order intake is a positive for the MEP business.

We remain positive on the long term growth potential of the room AC industry. Voltas is the market leader and has a strong bra

30/11/2017 3:44:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NMDC Ltd For Target Rs.187.00 - Motilal Oswal

Strong operating performance

Some risk to pricing, but valuations are compelling; Buy

2QFY18 adj. EBITDA grew 56% YoY (-21% QoQ) to INR12.8b. The beat of 10% is driven by higher-than-expected realization and lower cost. EBITDA is adjusted for (a) rail line doubling payment of INR92m and (b) expected credit lo

30/11/2017 3:38:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Glaxo Smith Kline Consumer Healthcare Ltd For Target Rs.6,551.00 - Emkay

* Q2FY18 Revenue at Rs11.1bn, up 3.3% yoy (underlying growth of 4.8%); EBITDA up 6.6% yoy to Rs2.6bn and APAT grew by 4.7% yoy to Rs1.9bn in-line with our estimates.

* Domestic revenue grew by 6.4% with volume growth at 2.4%. Exports declined by 26%. CSD channel hit by GST disruption. It has restored back to 70% of its pre-GST run rate.

*  Gross margin declined by 130bp

30/11/2017 3:32:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan Petroleum Corporation Ltd For Target Rs.579.00 - Motilal Oswal

EBITDA significantly below estimate; Core GRM at USD5.6/bbl

*  HPCL’s reported EBITDA of INR27.2b (+129% YoY, +76% QoQ) in 2QFY18 was significantly lower than our estimate of INR52.5b due to lower GRM and inventory gains. EBITDA adjusted for inventory gains stood at INR21.2b (+14% YoY, -34% QoQ), below our estimate of INR33.4b, led by lower

30/11/2017 3:21:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coal India Ltd For Target Rs.335.00 - Motilal Oswal

Employee provisioning, other income impact results

Volume growth accelerating, concerns behind; Buy

* Coal India’s (COAL) 2QFY18 revenue grew ~12% YoY to INR181b (3% miss) on ~13% growth in offtake. Volume mix was better on higher e-auction volumes (23mt v/s estimate of 21mt); the revenue miss was on a

30/11/2017 2:48:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Larsen & Toubro Ltd For Target Rs.1337.00 - Kotak Sec

L&T reported mixed set of numbers. While revenue growth was tepid, there was surprise gains on the margin front, which beat our PAT estimates by a wide margins. However, order intake came in lower than estimates due to continued deferment of major orders in the domestic market. The company had to revise sharply downwards its order intake guidance for FY18. There was also some deterioration

30/11/2017 2:42:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate DCM Shriram Ltd For Target Rs.652.00 - Emkay

* Chemical revenue at Rs4.8bn (+30% yoy) was driven by 24% yoy increase in Chlor-alkali volume and 28% higher realization. Consequently, EBIT margin expanded by 1760bps yoy (1000bps qoq) to 37%, which is the highest ever quarterly margin.

* Sugar revenue rose by 30% yoy to Rs5.1bn, led by 35% yoy volume growth at 1.32mn quintals. Sugar EBIT rose by 18% yoy to Rs741mn while EBIT margin

30/11/2017 2:35:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NTPC Ltd For Target Rs.211.00 - Motilal Oswal

Strong perf. on RAB growth, efficiencies and incentives

EPS CAGR of ~14% over FY17-20E; valuations attractive; Buy

NTPC’s 2QFY18 PAT adjusting for prior periods and reversals (net of tax) increased 21% YoY to INR28.4b, well ahead of our estimate of INR24.4b, driven by regulated equity growth, efficiency

30/11/2017 2:29:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy TeamLease Services Pvt Ltd For Target Rs.2,300.00 - Motilal Oswal

A clear reflection of business model strengths

* Margin improvement, tax benefits boost PAT: Revenue grew 21.2% YoY to INR8.8b (4pp miss). Slowdown in hiring, led by an inward focus of customers post GST, led to 18% YoY growth in general staffing (v/s 20% in the previous quarter), which is also visible from the QoQ dec

30/11/2017 2:20:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Axis Bank Ltd For Target Rs.680.00 - Motilal Oswal

Strong capitalization to fast-track recovery; Upgrading to Buy

* Event: Axis Bank’s (AXSB) board has approved a capital raising plan amounting to USD1.79b (INR116.26b) to provide the necessary growth capital to the bank and support asset quality clean-up. Of the approved amount, USD1.4b (INR90.63b) is proposed to

29/11/2017 3:55:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Sun TV Network Ltd For Target Rs.878.00 - Kotak Sec

Sun TV Network’s 2QFY18 earnings came in ahead of our estimates as advertising revenues came in modestly ahead of estimates, costs were contained. Going forward, Sun TV’s valuations are likely to be quite volatile, as the stock is likely to react to development in TN politics, its OTT platform launch and take-up, and television viewership changes. We stay focussed on TV, where we se

29/11/2017 3:40:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Industries Ltd For Target Rs.1,077.00 - Motilal Oswal

Latin touch

Higher refining margins to sustain

* We had talked about the worsening refining glut in our thematic report, The Three Musketeers, January 2017. While we continue to believe capacity addition would remain strong, especially in low cost condensate splitters, utilization of the Latin American refiner

29/11/2017 3:19:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy CESC Ltd For Target Rs.1,248.00 - Emkay

* CESC demerger – The management expects the demerger to be consummated by MarchApril 2018. Shareholder’s meeting will be held on 15 December 2017 as per the order of National Company Law Tribunal (NCLT). CESC has been exempted from seeking creditors approval for demerger due to its healthy financial position.

* Standalone performance surpassed our expectation at PAT level

Hold Hexaware Technologies Ltd For Target Rs.285.00 - Reliance Sec

Weak Revenue; Trend to Continue in Next Quarter As Well

Led by client-specific issues, Hexaware Technologies (Hexaware) has delivered a weak performance in 3QCY17, with its USD revenue rising by 0.9% QoQ (0.4% QoQ in CC terms) to US$154mn, which was below our estimate by 0.7%. Volume growth came in at 0.9%, similar to revenue growth. Vertical-wise, th

29/11/2017 2:50:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Dr. Lal Pathlabs Ltd For Target Rs.963.00 - Prabhudas Lilladher

* Sales in line; margin, earnings beat consensus: DLPL’s revenue grew 6% YoY to Rs2.8bn in Q2FY18, in line with our estimates. Adj. EBITDA (adjusted for ESOP charges) and PAT declined by 1.5% and 3% YoY to Rs808m and Rs507m respectively. With favourable product mix, seasonal tailwind of Dengue outbreak and higher B‐2‐C contribution, Adj. EBITDA margin

29/11/2017 2:44:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Eveready Industries India Ltd For Target Rs.400.00 - Motilal Oswal

Segments recover from GST hiccup

* Revenue in-line, PAT beats estimates: EVRIN’s overall revenue increased 3.5% YoY to INR3,982m (est. INR4,155m) in 2QFY18. EBITDA margin expanded 70bp YoY to 11.8% (est. of 10.7%), while EBITDA grew 10.6% YoY to INR471m (est. of INR443) on account of a significant fall of 200bp in

29/11/2017 2:36:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shree Cements Ltd For Target Rs. 22,239.00 - Emkay

* Shree Cement’s Q2 operating performance was in-line with estimates with EBITDA at Rs5bn (adjusted for subsidies of Rs600mn) against our estimate of Rs4.9bn. Cement segment reported EBITDA/tn of Rs1,010 against our estimate of Rs936.

* Sales volume of Cement and Clinker was up by 6.8% yoy to 4.88mt. Realization was up 2% yoy to Rs4,047/tn. EBITDA from the cement segment decline

29/11/2017 2:28:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Allcargo Logistics Ltd For Target Rs.215.00 - Motilal Oswal

Strong performance from MTO; Higher provision impacts P&E segment

* EBITDA miss due to higher provisioning in P&E segment: 2QFY18 revenue increased 10% YoY to INR15.47b (est. of INR16b), led by 15% YoY growth in MTO revenues. EBITDA declined 17% YoY (+2% QoQ) to INR1.05b, driven by EBIT loss in the P&E segme

29/11/2017 2:22:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Essel Propack Ltd For Target Rs.305.00 - Emkay

* Revenue at Rs6.4bn, (+11.5% yoy); EBITDA at Rs1.4bn (+21.3% yoy) while EBITDA margins came in at 21.1% (+240bps yoy); APAT at Rs525mn, up 13% yoy

* India revenue grew by 3.4% on back of lower offtake in pharma segment and higher base (Q2FY17 – 15%). In CC terms consolidated revenue grew 14.6% yoy, with organic growth was 4.9%. Egypt continues to post healthy growth. Substantia

29/11/2017 2:17:07 PM | Posted in Broking Firm Views - Long Term Report read full news