Hold OCL India Ltd For Target Rs.1,488.00 - Emkay

* OCL India results were largely in line with our estimates, with EBITDA of Rs1.4bn against estimated Rs1.44bn. Refractories segment surprised positively with EBITDA of Rs18mn while Derived EBITDA in Cement was up 1.4% yoy at Rs1.4bn.

* Sales volume was up 1.9% yoy at 1.2mt. Realization was up 11.8% yoy, which we believe was due to increased sale of premium products and higher VAT inc

28/11/2017 3:41:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tata Motors For Target Rs.474.00 - Prabhudas Lilladher

Tata Motors reported a strong performance in Q2FY18. Consolidated adjusted profit surged 33.5% YoY to Rs24.3bn (above expectations). Standalone performance too saw significant improvement with operating margins coming in at ~7%; however, adjusted loss for the quarter stood at Rs2.2bn (fifth consecutive quarter for reported loss). Jaguar Land Rover’s (JLR) operating performance too bettere

28/11/2017 3:31:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Developers Ltd For Target Rs.270.00 - Emkay

Result highlights

* Construction revenues continued to drive the revenue growth and were up 17% YoY to Rs8.8bn; while BOT revenues were down 32.3% YoY majorly led by transfer of 7 assets to InVITS and hence not comparable.

*  IRB reported PAT of Rs2.3bn mainly led by higher OI of Rs1.4bn( up336% YoY) mainly led by ~Rs1bn booked on accou

28/11/2017 3:27:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Birla Corporation Ltd For Target Rs.1,435.00 - Motilal Oswal

EBITDA performance in line; increase in interest cost dents profits

* Volumes impacted due to sand mining: Bcorp’s consolidated volumes increased 10% YoY to 2.65mt (vs est of 2.85mt) on like to like basis led by ramp up of Reliance volumes. However volumes declined 19% QoQ due to sand mining ban in U.P (35% of volumes) and in Bihar. Realization/

28/11/2017 3:19:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Ashok Leyland Ltd For Target Rs.125.00 - Prabhudas Lilladher

Ashok Leyland’s (AL) Q2FY18 operating performance slightly missed estimates with EBITDA margin lowering 150bps YoY (however, up 290bps QoQ) to 10.1% (PLe: 11%). Operating margins for the quarter were adversely impacted on account of – (a) heavy discounting by competitors, (b) aggressive pricing for exports in order to push the unsold BS III inventory (c) loss of some excise duty ben

Buy SRF Ltd For Target Rs.1,992.00 - Motilal Oswal

New refrigerants, healing agchem to stabilize growth

* Re sults below estimates :  SRF’s revenue grew 5.8% YoY to INR12.86b (est. of  INR14.03b) in 2QFY18. Chemicals segment grew by 3.8% YoY, packaging rose  by 17.5% YoY, while Technical textile declined 1% YoY. EBITDA margin  contracted 330bp YoY to 16.4% (est. of 18.1%) in

28/11/2017 2:49:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Acumulate Arvind Ltd For Target Rs.458.00 - Emkay

* Consolidated revenues grew by 13% to Rs 26.2bn. EBITDA margins down 190bps at 8.1%; Despite 15% decline in interest cost APAT down by 15% to Rs 662mn

* B&R grew by 34% yoy to Rs 10.3bn, largely due to the consolidation of Tommy Hilfiger and CK in the brand portfolio and a strong growth in Unlimited. Textile business reported revenues of Rs 14.3bn, a muted growth of 1% yoy, impac

28/11/2017 2:42:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Bharat Heavy Electricals Ltd For Target Rs.75.00 - Emkay

* BHEL's Q2FY18 operational performance was below our estimates. Revenues declined by 4% yoy. While the company reported loss of Rs954mn at the EBITDA level, the PAT was up by 6% yoy aided by higher other income.

* Order inflow declined by 6% yoy to Rs18.7bn. Order backlog also declined by 6% yoy to Rs970bn of which ~Rs216bn are slow moving orders. The company is favourably placed

27/11/2017 4:27:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Amara Raja Batteries Ltd For Target Rs.856.00 - Motilal Oswal

Above est.; Favorable mix, price hikes, manufacturing efficiencies drive margins

* Revenue below est. led by decline in telecom segment: Net sales grew 7.1% YoY (-4.7% QoQ) to INR14.3b (est. of INR15.4b), driven by growth in auto, inverters and solar, while industrial segment revenue declined. Auto performance was drive

27/11/2017 4:22:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Torrent Pharmaceuticals Ltd For Target Rs.1,160.00 - Emkay

* Torrent Pharma’s Q2FY18 revenue disappointed marginally, with India growth continuing to recover while US and Brazil posted weaker revenue numbers.

*  TRP faces twin challenges – in medium term to integrate acquisition of Unichem’s domestic branded business while in long term revamp US growth plans, which have been set back by the significant pricing pressure

27/11/2017 4:17:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Godrej Consumer Products Ltd For Target Rs.1,120.00 - Reliance Sec

Improved Traction in Domestic Biz; Upgrade to BUY

Godrej Consumer Products (GCPL) posted an encouraging set of numbers in 2QFY18 on the back of strong performance in domestic business. While consolidated revenues came in at Rs25bn, marginally lower than our estimate of Rs25.2bn, EBITDA grew by 12.4% YoY to Rs5.2bn and net profit by 12.6% YoY to Rs3.6bn

27/11/2017 4:12:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Glaxo Smith Kline Consumer Healthcare Ltd For Target Rs.6,000.00 - Prabhudas Lilladher

GSK has given optimistic outlook in demand led by 1) Driving consumer access and availability with Rs.5 sachet 2) pricing just to cover inflation 3) drive growth in high growth niche segments like Lite, Growth plus and Mother Horlicks etc 4) Cost optimisation by supply chain efficiencies and value engineering 4) Higher investment behind brands. We estimate 5% volume CAGR over FY17‐20 as again

27/11/2017 4:03:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Cipla Ltd For Target Rs.580.00 - Emkay

* Cipla delivered stable set of numbers with revenue, EBITDA and net profit in line with expectations. We see the steady Q2FY18 numbers anchoring strong earnings growth expectations for the next 1-2 years.

* Overall growth guidance remains strong, with scheduled launch of one high-value niche product every quarter for the next 2 years. This should help it to clock 10% revenue CAGR and

27/11/2017 3:57:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Endurance Technologies Pvt Ltd For Target Rs.1,334.00 - Motilal Oswal

Operating performance in-line; higher tax restricts PAT growth

* Revenue growth in-line: Consolidated net sales grew 11.9% YoY to INR16.2b (in-line), led by EU. EBITDA margin expanded 30bp YoY (40bp QoQ) to 14.1% (our estimate: 13.9%). However, higher tax rate restricted PAT growth – up 11.6% YoY to ~INR997m (our

27/11/2017 3:51:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate TeamLease Services Pvt Ltd For Target Rs.1,860.00 - Prabhudas Lilladher

Teamlease delivered 2QFY18 PAT beat aided by EBIDTA margin beat and lower tax rate. Revenues at Rs8756mn were up 21.1% YoY and 2.7% QoQ and above our estimates (Rs8665mn). Organic growth for 2QFY18 would be 18.5% YoY (2QFY17 had only partial revenues from the IT staffing acquisitions). Consolidated EBIDTA margin stands at 1.73% up 20bps QoQ and above our estimates (Ple: 1.6%). PAT at Rs174mn wa

27/11/2017 3:45:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Parag Milk Foods Ltd For Target Rs.242.00 - Emkay

* Revenues below estimates, but beat on EBITDA margins – Revenue grew by 6.7% yoy to Rs 5bn; EBITDA at Rs 500mn, up 48% yoy; APAT at Rs 249mn, up 94.5% yoy

* The skimmed milk powder (SMP) reported 22.3% yoy growth to Rs 538mn. Liquid milk and milk products reported a tepid growth of 3.9% and 5.5% yoy respectively to Rs 1bn and Rs 3.4bn. We expect revenue CAGR of 13.5% for the co

27/11/2017 3:35:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Nalco Ltd For Target Rs.87.00 - Motilal Oswal

Inline; Aluminum ramping-up as expected

Maintain Neutral

NALCO’s 2QFY18 EBITDA, as expected, increased by healthy 47% QoQ/95% YoY to INR3.3b driven by higher realization and volumes. Though there was an impressive beat on alumina volumes, it was offset by lower than expected realization and cost inflat

27/11/2017 3:18:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Prism Cement Ltd For Target Rs.95.00 - Emkay

* Prism Cement’s Q2FY18 result was in line with our estimate, with EBITDA at Rs376mn against our estimate of Rs386mn and OPM at 3.2% against our estimate of 3.1%. TBK segment rebounded after 6 quarters of loss with EBITDA at Rs2mn.

* Cement realisation slumped approx. 5.1% yoy, as cement prices were under pressure in its key markets. Sand mining ban in Uttar Pradesh and Bihar le

27/11/2017 3:04:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce JSW Energy Ltd For Target Rs.72.00 - Reliance Sec

Current Rally Unsustainable; Fundamentals Weak

JSW Energy (JSWEL) has reported 5.8% YoY growth in revenue to Rs22.1bn in 2QFY18 owing to higher merchant realisation and other income (+230% YoY to Rs1.7bn) despite 2.5% YoY decline in generation. Led by higher realisation and other income, JSWEL’s PAT surged by 38.3% to Rs2.9bn in 2QFY18 from Rs2.

27/11/2017 2:58:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bayer Cropscience Ltd For Target Rs.3,924.00 - Emkay

* Bayer CropScience reported a 12% yoy increase in net revenue to Rs12.3bn, a marginally below our estimate of Rs12.9bn but in line with consensus estimate. Management indicated that liquidation of inventory was a problem owing to erratic monsoon and uneven rainfall distribution.

* Gross margin contracted 200bps yoy to 38% while EBITDA margin improved by 180bps yoy to 23% (100bps lowe

27/11/2017 2:50:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Voltas Ltd For Target Rs.550.00 - Motilal Oswal

Results exceeds expectation on strong UCP segment performance

* Results above expectations: Sales of INR10.4b (+7% YoY) were in line with our estimate of INR10.8b. EBITDA stood at INR857m (+25% YoY), with the margin of 8.3% (+120bp YoY) exceeding our estimate of 7%, led by higher sales contribution from UCP segment (40%

27/11/2017 2:44:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Larsen & Toubro Infotech Ltd For Target Rs.960.00 - Emkay

* LT Infotech (LTI) reported strong Q2FY18 numbers, with a revenue growth of c.3.5% qoq in Constant Currency terms, which was well ahead of our/consensus estimates. EBIT margin declined by mere 10bps - well ahead of estimates despite wage hike impact.

* Digital revenue accounted for 32% of total revenue in Q2FY18 and grew by 15% qoq (38% yoy). Revenue in the Traditional business has r

27/11/2017 2:38:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Alkem Laboratories Ltd For Target Rs.1,950.00 - Motilal Oswal

Strong numbers; operating leverage impact visible

* Revenue increased ~14% YoY to INR18.6b (8% beat; adjusted for GST, revenue growth stands at ~20%). EBITDA rose 48% YoY to INR4.6b (48% beat), with the margin at ~24.7% (+570bp YoY and 1740bp QoQ), as other expense declined ~500bp YoY (as % of sales). R&D expense stood at INR901m (4.8% of sales).

25/11/2017 12:33:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shriram Transport Finance Company Ltd For Target Rs.1,445.00 - Reliance Sec

Strong Sign of Recovery in Operating Performance; Maintain BUY

Shriram Transport Finance Company (STFC) has consistently been showing improvement on major operating matrix led by higher disbursement and improving operating profit. Its disbursement grew by 26.3% YoY and 14.5% QoQ to Rs123.8bn owing to strong growth in new CV financing and healthy growth

25/11/2017 12:26:41 PM | Posted in Broking Firm Views - Long Term Report read full news