Buy Housing Development Finance Corporation Ltd For Target Rs.1,580.00 - Reliance Sec

HDFC Limited continued to deliver a healthy operating performance as Net Interest Income (NII) grew by 20.5% YoY and 14.1% QoQ to Rs28.5bn in 3QFY17. Notably, decline in Cost of Funds (CoF) led to 10 bps increase in NIMs (Net Interest Margin) to 3.95%.A robust growth in loan book (+17% YoY & +4.2% QoQ) to Rs2,869bn with improved margins lead to double digit growth in net profit. Loan book g

3/02/2017 11:40:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy HDFC Bank Ltd For Target Rs.1,465.00 - RCML

Performance steady, asset quality stable

HDFCB’s loan growth came off to 13% YoY in Q3 due to lower demand for retail loans as well as induced repayments in some corporate segments. Retail growth has normalised by 70-80% post demonetisation, and should stabilise in the coming quarter. NIMs contracted 10bps QoQ due to higher deposits and reduction

3/02/2017 11:35:19 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy UPL Ltd For Target Rs.855.00 - Sharekhan

Key points

* Strong performance for Q3FY2017:

UPL posted a robust set of numbers for Q3FY2017, with the topline coming in at Rs3,987 crore, which was up 18% YoY and above estimate. All the geographies registered positive revenue growth during the quarter. India and Latin America markets recorded an impressiv

3/02/2017 11:29:23 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Alembic Pharmaceuticals Ltd - Angel Broking

Alembic Pharma posted lower than expected numbers for 3QFY2017. In sales, the company posted revenues of `770cr (`872cr expected) v/s `921cr in 3QFY2016, dip of 16.4% yoy. The dip in sales was mainly on the back of the International sales, which came in at `303cr v/s `521cr in 3QFY2016, a dip of 41.8%. The Indian branded sales came in at `294cr v/s `288cr, a yoy growth of 2.1%. On EBITDA front,

2/02/2017 2:06:47 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Amara Raja Batteries Ltd For Target Rs.835.00 - Karvy

Amara Raja would announce its results on 22nd January 2017, Sunday. We expect Amara Raja’s volume growth of 5% YoY primarily due to single digit growth in replacement segment and decent volumes from industrial segment, though OEM volume would decline, while pricing would be improve by ~2% YoY, due to better product mix. Accordingly, we expect Company’s revenue to grow by 7.4% YoY (d

2/02/2017 2:00:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Asian Paints Ltd For Target Rs.1050.00 – Kotak Sec

Defies Demonetisation

Low double digit volume growth in the decorative paint segment, improved performance in the industrial and auto OEM segment has led to revenue of Rs 39.4 bn (+2.6% YoY) despite 52 days of demonetisation in the 92 days of Q3FY17. Higher raw material prices (+1.5% QoQ) and weak performance of the home improvement segment eroded marg

2/02/2017 1:54:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Supreme Industries Ltd For Target Rs.1,067.00 - Sharekhan

Key points

* Stellar performance in a difficult environment:

Despite the adverse impact of demonetisation, Supreme Industries (SIL) reported impressive set of numbers for Q3FY2017 and beat the market expectations. Revenue for the quarter was higher by 11.6% YoY to Rs1,107.4 crore. The overall Plastic Product

2/02/2017 1:49:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Greenply Industries Ltd For Target Rs.265.00 - RCML

Demonetisation hits volumes, drives guidance revision

Greenply Industries’ (GIL) Q3 revenue declined 14% YoY to Rs 3.58bn, in line with expectations, as plywood/MDF volumes tumbled 6.8%/22.9% YoY due to demonetisation. EBITDA margins contracted 195bps YoY to 13.5%, in line with estimates. Adj. PAT declined 31.8% YoY to Rs 240mn, also matching exp

2/02/2017 1:43:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.583.00 - LKP Sec

Margins and adjusted PAT came in above expectations once again

Zee posted strong performance in Q3 despite advertising revenues shrinking at just 3.4% yoy. Subscription growth managed to record a lower teen growth at 13.7% while the overall topline grew at 3.4% slightly above our expectations. Advertising revenues witnessed a significant downturn as FM

2/02/2017 12:36:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Colgate-Palmolive (India) Ltd For Target Rs.1,028.00 - Reliance Sec

Colgate reported weak set of numbers for the quarter ended December’16 with net sales falling by 8.8% to Rs8.7bn and net profit by 22.5% at Rs1.3bn. EBITDA for the quarter was lower by 11% at Rs2bn. Considering the weak set of numbers in wake of demonetisation, we have reduced our earnings estimates downwards by 8% and now expect the company to report 9% growth in revenues and earnings th

2/02/2017 12:28:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate India Cements Ltd For Target Rs.169.00 – Emkay

Strong volumes, balance sheet deleveraging continues

* India Cements’ (ICEM) Q3 operating performance was better than our estimates with EBITDA at Rs1.89bn against an estimated Rs1.78bn and OPM at 14.9% against an estimated 14.5%, led by higher sales volume and realization.

* Sales volume growth was robust at 21.3% YoY. Realization was

2/02/2017 12:22:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy UltraTech Cement Ltd For Target Rs.4,450.00 - Karvy

UltraTech Cement would announce its results tomorrow.

Cement volume is expected to decline by ~5% YoY to 11.0 mt in Q3FY17 on account of negative impact on demand post the currency demonetization. Net realisation is expected to be flattish QoQ (down ~2% YoY) as the decline in pricing in North/Central would negate the impact of firm pricing in South/Wes

31/01/2017 12:13:01 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce HCL Technologies Ltd For Target Rs.873.00 – Kotak Sec

HCLT’s results were marginally ahead of expectations on both, revenues (3% CC growth) and profitability (30bps rise in margins). Excluding the IPR sharing deal, revenue growth was lower at about 2%, we believe. HCLT is making efforts to increase its relatively lower presence in the Digital / Platforms & Products space through the IBP IPR deal. While this is expected to reap dividends,

31/01/2017 12:08:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Swaraj Engines Ltd For Target Rs.1,736.00 - Religare Sec

Reaping benefits of a good monsoon

Swaraj Engines Ltd (SEL) reported impressive numbers for Q3FY17 with a strong growth of 46.6% & 82.5% YoY in Net Revenue and PAT, above our estimates. A 274bps YoY expansion in EBITDA margins was overwhelming. We remain upbeat on SEL's growth prospects, given healthy demand revival anticipated in the domestic

31/01/2017 12:00:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bharti Airtel Ltd For Target Rs.340.00 - Sharekhan

Key points

* India wireless business feels the heat from JIO entry:

For Q3FY2017, Bharti Airtel (Bharti) reported weak results on all fronts on account of Reliance Jio’s (JIO) free trial offer and demonetisation. Bharti’s revenue declined by 3.1% YoY and 5.3% QoQ to Rs23,364 crore, below our expe

31/01/2017 11:54:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell TVS Motor Company Ltd For Target Rs.345.00 - RCML

Margin expansion to be gradual – downgrade to SELL

TVS posted an above-expected Q3 with net sales up 3% YoY to Rs 29.8bn and EBITDA margins coming in at 7.3% (RCMLe 6.8%) on better gross margins. Adj. PAT grew 10% YoY to Rs 1.3bn, beating RCMLe on strong operating numbers. However, we see a gradual pick-up in TVSL’s margins to 9% by FY19 d

31/01/2017 11:50:32 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki Ltd For Target Rs.6,890.00 - LKP Sec

Higher realizations leading to margin maintenance at difficult times in Q3

Maruti Suzuki India Ltd (MSIL)’s Q3 FY17 numbers came broadly in line with street expectations but above our expectations. The top-line grew by 12.3% yoy at Rs.168bn. Despite volumes in the quarter having grown by just 3.5% yoy, due to demonetization, net realizations impr

31/01/2017 11:43:21 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Colgate Palmolive (India) Ltd For Target Rs.1,028.00 - Reliance Sec

Colgate reported weak set of numbers for the quarter ended December’16 with net sales falling by 8.8% to Rs8.7bn and net profit by 22.5% at Rs1.3bn. EBITDA for the quarter was lower by 11% at Rs2bn. Considering the weak set of numbers in wake of demonetisation, we have reduced our earnings estimates downwards by 8% and now expect the company to report 9% growth in revenues and earnings th

31/01/2017 11:27:11 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Heritage Foods Ltd For Target Rs.1,100.00 - Emkay

Strong levers for growth; Retain BUY

 Healthy quarter on all fronts – Revenue grew by 14.5% yoy to Rs6.7bn aided by retail segment, EBITDA grew 45.4% yoy to Rs291mn, APAT grew 75% yoy to Rs199mn

 Dairy segment grew at 6.8% yoy aided by healthy growth in value added products (grew 18.2% yoy). Price hike of 5% initiated in dairy seg

31/01/2017 11:22:42 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On United Phosphorus Ltd - Angel Broking

UPL posted robust numbers for 3QFY2017. In sales, the company posted gross revenues of `3,987cr v/s `3,377cr in 3QFY2016, growth of 18% yoy. The growth was driven by volume (18% yoy), while price dip was around 3% and exchange gains added 3% to the top-line rise. On EBITDA front, the company posted an EBITDA of 17.8% v/s 14.7% in 3QFY2016. Along with this, dip of 15% and 2% in the deprecation &

30/01/2017 11:51:34 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coromandel International Ltd For Target Rs.418.00 - Emkay

Focus on increasing non-subsidy business to be earnings accretive

* Coromandel (CRIN) posted 18% yoy drop in revenues to Rs22.7bn (below our estimate of Rs27.1bn) due to decline in fertiliser sales by 22% yoy while crop protection revenues increased 8% yoy to Rs3.2bn.

* However, EBIT margins across fertiliser and crop protection registered sh

30/01/2017 11:47:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy ITC Ltd For Target Rs.301.00 - Reliance Sec

ITC reported net sales of Rs91.5bn, a growth of 4.1% yoy, while net profit increased 5.7% to Rs26.5bn for quarter ended December’16. EBITDA for the quarter was largely flat at Rs34.5bn. We estimate that cigarette volumes, in wake of demonetisation fell by 2%.

As expected, Sanjiv Puri, the erstwhile COO of the company has been elevated as the CEO of ITC with Y C Deveshwar assumin

30/01/2017 11:41:52 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ashok Leyland Ltd For Target Rs.104.00 - LKP Sec

Good performance despite lots of headwinds

Ashok Leyland (ALL)’s Q3 FY17 results reported sales higher by 7.7% yoy on a slow 8.4% yoy volume growth led by the demonetization implementation at the start of November. However the company managed to gain market share quite handsomely at 33.7% from 30.1% yoy on rapid network expansion and higher disc

30/01/2017 11:37:11 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ashoka Buildcon Ltd For Target Rs.263.00 - Edelweiss

Ashoka Buildcon (ABL) posted robust Q3FY17 numbers with standalone revenue, at INR5.2bn, jumping 18.2% YoY. Operating leverage led to EBITDA margin improving 50bps YoY to 11.8%. Toll revenue was impacted as collection was stopped for 23 days due to demonetisation. Adjusting for this, toll collection remain weak for all projects excluding Dhankuni and Belgaum-Dharwad projects. Order book at quar

30/01/2017 11:29:29 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Wipro Ltd For Target Rs.550.00 - Sharekhan

Key points

* Revenue misses estimates, margin surprises positively:

Wipro’s IT Services revenue for Q3FY2017 stood at $1,902.8 million on Constant Currency (CC) basis, up 0.6% QoQ (below estimates). Appirio’s contribution to the overall revenue was around $20 million for five weeks. Excluding Appi

30/01/2017 11:22:36 AM | Posted in Broking Firm Views - Long Term Report read full news