Hold Oil India Ltd For Target Rs.360.00 – RCML

Risk-reward unfavourable – downgrade to HOLD

OINL’s Q3 PAT at Rs 4.5bn (+18% YoY) and EBITDA at Rs 6.6bn (+7% YoY) fell short of estimates on lower volumes and higher expenses. Oil/gas production volumes underperformed at 0.83mmt (+3% YoY)/0.74bcm (-5% YoY). Adjusting for one-off provisions (~Rs 2.5bn), operating costs declined QoQ to ~US$6

7/02/2017 12:01:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ashok Leyland Ltd For Target Rs.105.00 - Sharekhan

Key points

* Weak operating performance for Q3FY17 impacted by demonetisation; Net profit hit by forex loss:

Ashok Leyland’s (ALL) operating performance in Q3FY017 was impacted by pricing pressure due to government’s demonetisation move. The company’s topline grew by 8% YoY to Rs4,431 crore

7/02/2017 11:53:42 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Info Edge (India) Ltd For Target Rs.1,075.00 - Motilal Oswal

Slump in Recruitment segment drives significant miss

* 3QFY17 performance significantly below expectations: INFOE’s standalone 3QFY17 revenue growth decelerated to 7.3% YoY to INR1.86b, sharply below our estimate of INR2.13b. EBITDA margin was 25.3% (+310bp YoY), well below our estimate of 29.7%, led by the revenue miss. Adj. PAT was INR471m (+2

7/02/2017 11:48:33 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell MphasiS Ltd For Target Rs.524.00 – Kotak Sec

Mphasis once again disappointed with weak revenue performance and missed our estimates by about 2% in dollar terms. Revenues were impacted by lower Direct International which was down by 0.2% QoQ. Within Direct International, Digital Risk which contributes about 20% of DI revenue witnessed sharp decline of 6% on QoQ Basis. The balance 80% of DI revenue witnessed growth of 1.2% QoQ impacted by a

7/02/2017 11:36:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Inox Leisure Ltd For Target Rs.225.00 - Emkay

Poor show continues

* Q3 was an extension of Inox’ disappointing streak of performances. Revenue miss was of 3% while continued cost inflation led to EBITDA miss of 34%. Other operating costs increased 20% yoy (+17% YTD) due to revamp of two large properties.

* DeMon impacted F&B and advertisement revenues while weak content impacte

6/02/2017 12:31:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Emami Ltd For Target Rs.1,260.00 - Motilal Oswal

Robust domestic performance; margin expansion continues

* Emami's (HMN) sales were flat at INR7.3b (+0.2% YoY v/s est. of +5%)

in 3QFY17. EBITDA grew 3.7% YoY (est. of +1.9%), while PAT before amortization rose 4.8% YoY (est. of -6.8%) to INR2.05b. Domestic sales increased 3% YoY, led by volume growth of

6/02/2017 12:17:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Zee Entertainment Enterprises Ltd For Target Rs.400.00 - Kotak Sec

Zee Entertainment's 3QFY17 results have met estimates on operational parameters. We are positively surprised by the outperformance of Zee on advertising revenue growth; however, we believe that given weak performance of its Hindi GEC channels, the outperformance is unlikely to last. Further, we continue to see risks on several revenue streams of Zee Entertainment, if ratings in Hindi GECs r

6/02/2017 12:08:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ITC Ltd For Target Rs.295.00 - Sharekhan

Key points

* Revenue and PAT growth in single digits; better than our and street expectations:

For Q3FY2017, ITC’s gross revenue grew by 4.7% YoY to Rs13,570 crore, driven by a 2.2% YoY growth in the core Cigarette business (volume stood flat), a 7.3% YoY growth in the Hotel business and a 13.0% YoY gr

6/02/2017 12:02:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cholamandalam Investment & Finance Company Ltd For Target Rs.1,350.00 - RCML

Demonetisation erodes asset quality

CIFC’s Q3 PAT was in line at Rs 1.6bn (+12% YoY). Asset quality deteriorated, with 120dpd GNPAs rising 30bps QoQ to 3.8% largely due to demonetisation. On a positive note, CIFC did not use the RBI’s 90-day window to defer NPAs, but instead raised standard asset provisions by Rs 50mn to Rs 0.6bn for a smoo

6/02/2017 11:50:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Bajaj Auto Ltd - LKP Sec

Q3 FY17 results came in line with our expectations

Bajaj Auto posted a decent set of numbers despite the DeMon impact taking toll on its volume performance in Q3. We witnessed volume reduction for the company at 17.5% qoq and 10.5% yoy. Realizations growth came in at 1.4% yoy as product mix improved. Rs.170 mn of exchange benefit coupled with higher Pl

6/02/2017 11:42:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Oberoi Realty Ltd For Target Rs.372.00 - Emkay

Resilient in tough times

Result highlights

* Higher than expected bookings at Oberoi Esquire, Goregaon led to beat on revenue and profitability front.

* Sales bookings down 45% QoQ on demonetization impact but Sky City, Borivali project clocked decent sales bookings of 33 units worth Rs586mn.Collect

6/02/2017 11:34:50 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dabur India Ltd For Target Rs.315.00 - Reliance Sec

Background & Business

Dabur India (Dabur) is one of the leading FMCG players with a product portfolio based on ayurvedic, herbal and natural platform. It is the market leader in niche and fast-growing segments such as Honey, Chyawanprash & Fruit Juices among others. Its Revenues & Earnings have witnessed 10.4% & 15.3% CAGR through FY12

6/02/2017 11:27:08 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate MPS Ltd For Target Rs.770.00 – Emkay

Non top 10 clients led revenue growth

* Dec’16 quarter revenues at US$11.8mn increased by 13% YoY, ahead of our estimates; EBITDA margins at 32% were inline with our expectations.

* The revenue growth was led by strong traction amongst non-top 10 clients; US$ revenues from top 5/10 clients were muted with 1%/2% YoY growth, marking the f

4/02/2017 12:08:47 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Bharat Financial Inclusion Ltd For Target Rs.550.00 - RCML

Demonetisation hurts AUM growth

BHAFIN’s Q3 PAT grew 80% YoY to Rs 1.4bn while non-interest income was up 38% YoY driven by robust loan processing fees. However, AUM declined by 6% QoQ and management expects AUM to remain flat in Q4FY17 at Rs 8.5bn. Collection efficiency as of Q3 stood at 95% while GNPAs remained stable at 0.06%. We remain cautio

4/02/2017 12:00:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On L&T Finance Holdings Ltd - Sharekhan

Key points ŠŠ

Operating performance remains healthy:

L&T Finance Holdings (LTFH) reported Q3FY2017 results that were in line with expectations, underpinned by a healthy operating and earnings performance despite the demonetisation move disrupting business during the quarter. Net interest income (NII) grew by 16% YoY to Rs933.8 crore, while the non-interest income was u

4/02/2017 11:44:29 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell TVS Motor Company Ltd For Target Rs.344.00 - Kotak Sec

TVSM's 3QFY17 results came on expected lines. Revenues during the quarter increased by 3% YoY, to Rs29.8bn, EBITDA margin remained stagnant YoY, at 7.3% and PAT grew by 10% YoY, partly supported by high growth in other income and lower tax rate. In terms of volume performance, the worst seems to be behind us and we expect gradual improvement in two wheeler demand in 4QFY17 and healthy volum

4/02/2017 11:31:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Indoco Remedies Ltd For Target Rs.240.00 - Angel Broking

Indoco Remedies posted lower than expected numbers for 3QFY2017. In sales, the company posted revenues of `272cr (`276cr expected) v/s `256cr in 3QFY2016, growth of 6.2% yoy. The lower growth was on the back of the formulation business at `252.2cr, up 4.5% yoy, API at `18.2cr up 32.8% yoy. The domestic formulation at `144.2cr recorded a yoy growth of 5.2%. On EBITDA front, the company posted an

4/02/2017 11:26:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Finance Ltd For Target Rs.1,276.00 - Motilal Oswal

Profit beat led by strong AUM growth; Maintain Buy

* Bajaj Finance’s (BAF) 3QFY17 PAT increased 36% YoY to INR5.6b (26% above estimate), led by robust AUM growth of 33% YoY (est. of +27%) and better-than-expected margins performance. Marginal improvement in costs and asset quality also offered support.

* Despite demonetization, AUM con

4/02/2017 11:21:33 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Greenply Industries Ltd For Target Rs.304.00 - Religare Sec

Subdued demand impacted earnings...

Greenply Industries reported a dismal Q3FY17 result as plywood and MDF sales volume declined, impacted by demonetisation. The company reported 11.2%, 24.9% and 34% de-growth in sales, EBITDA and PAT over Q3FY16 respectively. The management has guided challenging Q4FY17E as demand has slowed down. We believe demonetis

4/02/2017 11:13:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Shree Cements Ltd For Target Rs.15,562.00 - Karvy

Profitability impacted from Power segment

Shree Cement’s Q3FY17 operational performance was below our estimates. Net sales/EBITDA came at Rs 18.4bn (+1% YoY)/Rs 4.7bn (+11% YoY) against our estimates of Rs 19.9bn/Rs 5.0bn. However, PAT at Rs 2.35bn (+129% YoY) came in-line with our estimate because of higher than expected other income & lower

4/02/2017 10:57:24 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra & Mahindra Financial Services Ltd For Target Rs.390.00 - RCML

Demonetisation hurts Q3 performance

MMFS posted a grim Q3 with an 88% YoY decline in PAT to Rs 117mn. AUM growth was weak at 13% YoY while disbursements grew 15%. Spreads declined 20bps QoQ to 7.4% and asset quality deteriorated slightly (GNPA: +10bps QoQ to 11.1%). MMFS used RBI’s special dispensation and deferred provisions of Rs 1.5bn, with d

3/02/2017 12:27:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold HT Media Ltd For Target Rs.90.00 - Emkay

Cost control aides operational performance

* Advertisement revenue both for English and Hindi was weaker than expected due to demonetization. Radio revenue grew 39% yoy, driven by contribution from new launches.

* Cost rationalization efforts have started yielding results, which led to better than expected operating performance during the qua

3/02/2017 12:23:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Idea Cellular Ltd - Motilal Oswal

Vo dafone-Idea merger: Telecom behemoth in the making

The merger to address key concern around Idea’s earnings visibility

Vodafone and Idea Cellular issued a press release on 30 January 2017 highlighting that they are in a preliminary discussion to explore merger opportunities. This deal is likely to h

3/02/2017 12:13:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Unichem Laboratories Ltd For Target Rs.336.00 - Karvy

Unichem Labs would announce its results tomorrow. Following are the key highlights

* We expect Net Revenues to grow by 14.1 % YoY to Rs 3,495 mn.

* Domestic formulations to grow by 8% and Export formulations to grow by 24% YoY. Margins are expected to improve from 11.1% to 11.4% on a YoY basis. 

* We expect PAT to increase by  11.6% YoY  and QoQ to R

3/02/2017 11:51:58 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Kajaria Ceramics Ltd For Target Rs.627.00 – Kotak Sec

Revenues for Q3FY17 were ahead of our estimates and impact of demonetization was much lesser than our expectations. Operating margins were under pressure due to higher operational costs on account of low capacity utilization at its plants. Net profit came ahead than estimates due to better than expected revenues. Lower gas prices has helped in cost reduction and would help in aiding margins goi

3/02/2017 11:45:43 AM | Posted in Broking Firm Views - Long Term Report read full news