Buy Insecticides India Ltd For Target Rs.737.00 - Emkay

Decent show despite weak season

* Insecticides India reported inline revenue at Rs1.76bn (-1.2% yoy) driven by 5% yoy growth in formulation segment to Rs1.3bn while external technical sales dropped 14% yoy to Rs470mn

* Gross margins contracted 650bps to 32% and was below our estimate of 35.4%. EBITDA margins expanded 300bps yoy to 7.6% due to

12/06/2017 2:42:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Kajaria Ceramics Ltd For Target Rs.757.00 - Kotak Sec

Revenues for Q4FY17 were ahead of our estimates and sales have started reviving back post demonetization. Operating margins were under pressure due to higher operational costs. Net profit came ahead of our estimates due to better than expected revenues. Gas prices have also moved up during the quarter but impact of higher gas prices was restricted to some extent by rupee appreciation. We believ

12/06/2017 2:36:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Symphony Ltd For Target Rs.1,074.00 - Emkay

Dominance wavering as competition heats up

* SYML Q4FY2017 operational performance was bit of a mixed bag. While sales grew by 34% YoY, EBITDAM declined by 1533 bps YoY resulting in flat profit growth.

* Launch of next generation range of air-coolers at discounted prices together with higher advertising spends impacts profitability in the dom

12/06/2017 2:31:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold NBCC (India) Ltd For Target Rs.195.00 - Reliance Sec

Robust Performance on Operational Parameters; Maintain HOLD

NBCC’s reported 4QFY17 performance has topped our estimates mainly on account of a substantial improvement in operating performance. Top-line grew by 5% YoY to Rs23.4bn aided by 114% YoY improvement in real estate revenue. While PMC revenue improved by 6% YoY to Rs20.7bn (89% of total re

12/06/2017 2:23:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Thermax Ltd For target Rs.780.00 - Motilal Oswal

Operating performance impressive; impairment loss on investment in subsidiaries hurts PAT

* Revenues grew 3.9% YoY to INR13.4b (marginally ahead of est. of INR12.8b). n Gross margin stood at 41.0% (-130bp YoY). n EBIDTA rose 23% YoY to INR1.5b, supported by lower other expenses (20% of sales v/s 23% in 4QFY16).

* EBIDTA margin of 11.3% (+173b

10/06/2017 11:20:46 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Century Plyboards (I) Ltd For Target Rs.300.00 -  Religare Sec

Healthy volume growth supported the earnings…

Century Plyboards (I) Ltd.’s Q4FY17 result was inline with our estimates. The company reported 9% yoy increase in net sales. Higher raw material cost and increase in operating expenses weighed on operating margin improvement. Lower interest cost supported PAT growth of 34.8% yoy. The management

10/06/2017 11:14:19 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Idea Cellular Ltd For Target Rs.70.00 - Emkay

Industry revenue repair still away

* Revenue was largely in-line with estimates while EBITDA beat of 14% was driven by cost optimization in Network opex and SG&A expenses. Network opex reduction is attributable to sites rationalization and cost reversals.

* Cost saving with implementation of E-KYC and negotiations with channel partners ar

10/06/2017 10:59:59 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Colgate-Palmolive (India) Ltd For Target Rs.980.00 - Kotak Sec

Colgate reported in-line revenues and gross margins for the quarter; however, advertising expenses came in significantly ahead of expectations (+24% y/y). The results indicate that the company is making a big push, amid less favourable circumstance, to drive volumes and market share. Colgate's pricing actions indicate that the company is likely willing to sacrifice margins to tide over the

10/06/2017 10:44:13 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Linc Pen & Plastics Ltd For Target Rs.310 .00 - SKP Sec

Company Background

Linc Pen & Plastics Limited (Linc), promoted by Mr. S M Jalan in 1994 is India’s leading manufacturer, marketer and exporter of compelete range of writing instruments. Its three manufacturing facilities are located at Falta SEZ and Serakole, West Bengal and Umergaon, Gujarat. Mitsubishi Pencil Company, Japan, a global writ

10/06/2017 10:39:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy The Ramco Cements Ltd For Target Rs.823.00 -  Motilal Oswal

Weak realization and higher other expenses drag margins

* Healthy volume growth:

TRCL’s volumes grew 10% YoY (+15% QoQ) to 2.28mt in 4QFY17 (est. of 2.21mt), driven by higher sales to the eastern markets and growth in the markets of AP/Telangana.

* Sharp decline in realizations:

10/06/2017 10:30:08 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Chennai Petroleum Corporation Ltd For Target Rs.455.00 - Kotak Sec

CPCL's Q4FY17 PAT decreased by 41% qoq (base effect) to Rs.1.7 bn reflecting lower crude throughput, one-time investment write-offs, higher operating expenses (includes one-time charge) and higher depreciation/ interest expense. CPCL has reported lower throughput of 2.09 mmt, resulting in mere 69% capacity utilization in Q4FY17. The Company has declared a dividend of Rs.21/share, resulting

10/06/2017 10:23:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Vedanta Ltd For Target Rs.294.00 -  Emkay

Better than expected performance!

* Revenue came at Rs 237 bn (+48%/+16% YoY/QoQ). Strong performance of domestic zinc business, gradual improvement in aluminium and power segment and better operational performance in oil & gas segment helped.

* EBITDA came at Rs 73.5 bn (+112%/+25% YoY/QoQ) on the back of stronger LME and higher volume.

10/06/2017 10:12:10 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Aurobindo Pharma Ltd For Target Rs.750.00 - Motilal Oswal

Better off compared to peers; positive outlook for FY18

* One-offs impact results: Net sales declined ~3% YoY (-7% QoQ) to ~INR36.4b (est. of ~INR38.5b). Gross margin expanded 210bp YoY (+260bp QoQ) to 58.7% due to favorable business mix change (low ARV sales and increase in US business contribution). EBITDA declined 13% YoY to ~INR7.7

9/06/2017 2:18:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Siemens India Ltd For Target Rs.1,170.00 - Kotak Sec

Siemens reported encouraging growth in order inflows in Q2FY17 across divisions. PAT outperformed our estimate on back of superior order execution across key verticals.

We maintain that currently at PER of 42.4x FY18 earnings company's stock fully discounts 1) gradual recovery in the domestic market, led by increased public spending across various infrastructure projects and 2) po

9/06/2017 2:04:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Magma Fincorp Ltd For Target Rs.163.00 - Religare Sec

Right steps towards a better future performance…

Kolkata-based Magma Fincorp Ltd (Magma) is a well-diversified NBFC with presence in utility vehicles/cars, construction equipment, commercial vehicles, used assets, tractors, SME loan and mortgage. Portfolio mix is largely skewed towards Commercial Finance (~50%) followed by Tractors (~20%), SME (

9/06/2017 1:45:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Power Finance Corporation Ltd - Equirus Sec

PFC delivered subdued 4QFY17 results due to re-alignment with RBI policy on Asset Classification and Asset Quality. The policy led to Rs. 34.3bn additional provision and Rs. 5.3bn of Income Reversal. The Net Interest Income (NII) was impacted by combination of interest reversal from the realignment + incremental NPA. We expect Rs. 72bn (out of Rs. 360bn) of Restructured Assets and Rs. 93.2bn (o

9/06/2017 1:33:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ramkrishna Forgings Ltd For Target Rs.613.00 - SPA Sec

Ramkrishna Forgings Limited (RKFL) is engaged in the manufacturing of forged components used in various industries (revenue contribution in FY16) which include Automotive (71%), Railways (4%) and Mining (3%). The company offers its products under categories such as rolled products, forged products and machined products. The company operates five manufacturing plants, three plants in Jamshedpur,

9/06/2017 12:27:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold DIVI`S Laboratories Ltd - Sharekhan

Key points

* Q4FY2017 performance lower than expectation:

Divis Laboratories’ (Divis) Q4FY2017 net sales declined by 2.6% YoY to Rs1,067 crore. The adjusted operating profit dipped by 2% YoY to Rs391 crore. The Operating Profit Margin (OPM) improved by 32BPS to 36.7%. The adjusted net profit for the quar

9/06/2017 12:03:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Aurobindo Pharma Ltd For Target Rs.700.00 - Reliance Sec

US Business to Drive Growth

Missing ours as well as street expectations, Aurobindo Pharma (ARBP) has delivered a weak performance in 4QFY17 with its Sales, EBITDA and PAT coming in at Rs36.4bn, Rs7.7bn and Rs5.6bn, respectively. Its overall revenue declined by 2.8% YoY due to weak Europe sales (-8% YoY to Rs 7.8bn) and ARV business (-20% YoY to Rs 2.6

9/06/2017 11:55:56 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Gujarat Pipavav Port Ltd For Target Rs.150.00 - Emkay

Mixed Bag

* Gujarat Pipavav Port Ltd.’s (GPPV) Q4FY17 performance was above expectations on the profitability front driven by non-recurring income streams and favorable volume mix; however volumes were lower YoY due to decline in container and bulk volumes

* Overall port volumes declined 11% YoY, container volumes declined 10.7% YoY and

9/06/2017 11:35:18 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Britannia Industries Ltd For Target Rs.4,050.00 - Motilal Oswal

Sales broadly in-line; margins far better than expectations

* BRIT’s consol. sales grew 5.2% YoY (est. of +7%) in 4QFY17. Standalone sales rose 6.6% YoY, but subsidiary sales fell 11% YoY, likely due to weak performance in the Middle East. Biscuits volume growth was 2% (est. of +3%), but this was on a base of 10% growth in 4QFY16. EBITDA grew 6.1% YoY (est. of -

8/06/2017 1:59:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell MT Educare Ltd For Target Rs.70.00 - Kotak Sec

MT's operating revenue for the quarter grew at 12.7% yoy to Rs 661 mn primarily on account of higher growth in working capital intensive skill development segment. The Robomate business continued to disappoint with 50% yoy decline in the quarter. In the year, the company could achieve Rs 210 mn revenue in the segment as against revised target of Rs 300 mn, despite aggressive branding exerci

8/06/2017 1:53:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Colgate-Palmolive India Ltd For Target Rs.1,000.00 - Emkay

Awaits revival in volumes

* Q4FY17 revenue was in-line with our estimate however margins was lower due to higher ad spends. Revenue & EBITDA grew by 2.5% yoy each to Rs10.3bn and Rs2.4bn respectively, while APAT declined by 0.5% yoy to Rs1.4bn

* Volume declined 3% yoy impacted by wholesale trade which is yet to normalize. Core and newly l

8/06/2017 1:49:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy The Byke Hospitality Ltd For Target Rs.242.00 - Religare Sec

A steady quarter, maintain Buy…

The Byke Hospitality reported in-line profit growth; however Net revenue was below our expectations. Total income and Net profit increased by 11.4% and 21.2% respectively on YoY basis. Hotel segment (owned and leased properties) reported 8.2% jump in revenue, whereas Room charting segment reported growth of 15.6%.

8/06/2017 1:43:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Sadbhav Engineering Ltd - Equirus Sec

Sadbhav outperformed on execution and profitability front but saw a spike in WC due to higher requirement related to EPC projects. The company has managed to build a sizeable order book of Rs. 92.6bn with a focus on HAM in FY17. With reducing margin and WC overhangs of legacy irrigation and NHAI EPC projects, the sizeable share of HAM projects should enable margin expansion and WC improvements.

8/06/2017 1:34:06 PM | Posted in Broking Firm Views - Long Term Report read full news