Sell Union Bank of India Ltd For Target Rs.110.00 - RCML

All misses no hits

UNBK’s Q3FY17 PAT tanked 41% QoQ to Rs 1bn due to a lower NII (-6% QoQ) and elevated provisions. Slippages were flat at Rs 33bn while the GNPA ratio inched up 100bps QoQ to 11.7%. During Q3, the bank refinanced accounts worth Rs 1.2bn under 5:25 and restructured loans worth Rs 6.6bn under SDR. Loan growth was weak at 3.5% while

24/02/2017 3:46:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tata Chemicals Ltd For Target Rs.652.00 - Emkay

Margin improvement across all segments drives Q3 PAT

*Tata Chemical reported in line revenues (after including discontinued operations pertaining to urea) at Rs 40.4bn (-12% yoy). Consolidated revenues from continued operations stood at Rs34.6bn (-12% yoy)

* Lower input prices and better sales mix drove fertiliser profitability as fertiliser

24/02/2017 3:40:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy GlaxoSmithKline Consumer Ltd For Target Rs. 5,916.00 - Reliance Sec

GlaxoSmithKline Consumer Healthcare (GSK Consumer) has delivered a weak performance in 3QFY17. Its net sales fell by 11.7% to Rs8.2bn, while net profit decreased 8.3% YoY to Rs1.4bn. Marred by demonetization and weak consumer demand environment, its volumes in the core HFD segment fell by 17% in the quarter. Trimming down our earnings estimate by 7% for FY18E in the wake of poor quarterly perfo

24/02/2017 3:26:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy J K Lakshmi Cement Ltd For target Rs. 455.00 - Motilal Oswal

Volume improvement offset by lower realizations

* Volume growth offset by weak prices:

Volumes rose 4% YoY (+7% QoQ) to 1.83mt (est. of INR1.73mt) in 3QFY17, driven by ramp-up in its east operations. Realizations fell 5% QoQ (-1% YoY) to INR3,645/t (est. of INR3,722) due to weak pricing in its focus markets of Gujarat and ea

24/02/2017 3:23:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Bharat Heavy Electricals Ltd For Target Rs. 106.00 - Emkay

* BHEL’s Q3FY17 operational performance was in-line with our expectations. Revenues increased by 19%YoY while EBIDTAM improved to 3.6% YoY driven by reduction in other expenses. APAT rose to Rs935mn.

* Order inflow declined by 73%YoY to Rs16bn. For 9MFY17 order inflow was down by 76%YoY to Rs68bn. Order backlog declined by 10%YoY to Rs984bn. Slow moving orders constitute ~45% of

24/02/2017 3:19:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy MOIL Ltd For Target Rs.409.00 - Reliance Sec

MOIL Stellar Performance to Continue; Upgrade to BUY

MOIL has reported enthusiastic performance in 3QFY17, topping ours as well as street estimates. Its sales volumes zoomed by 154% YoY and 12% QoQ to 348,000 tonne (vs. our estimate of 325,000 tonne), while blended realization surged by 64% YoY and 61% QoQ to Rs9,394/tonne (vs. our estimate of Rs7,500/

24/02/2017 12:07:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy CEAT Ltd For Target Rs.1,275.00 - RCML

Volumes on a roll but near-term stress on margins CEAT posted a strong 10% YoY growth in its Q3FY17 volumes, leading to above-expected revenues of Rs 14bn (RCMLe 12bn). However, EBITDA margins slid 200bps QoQ to 11% (RCMLe 11.5%) on higher RM prices and an adverse product mix. Adj. PAT stood at Rs 838mn, down 25% YoY. We cut our FY18/FY19 EPS by 6%/7% to build in rising RM pressures, and roll o

24/02/2017 12:03:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy SML Isuzu For Target Rs.1,560.00 - Religare Sec

Robust delivery; bright outlook...

SML Isuzu reported in-line Q3FY17 numbers, wherein Net sales increased by 18.3% to Rs. 228.1 Cr and Net profit stood at Rs. 3.1 Cr compared to Net loss of Rs. 0.9 Cr in Q3FY16. The total volume for the quarter stood at 2,623 units, up 12% on YoY basis. With investment on technology up gradation, capacity expansion and

24/02/2017 11:59:21 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Tata Steel Ltd For Target Rs.440.00 - RCML

Q3 beat, Q4 looks stronger – upgrade to HOLD

TATA’s consol. Q3 EBITDA/PAT of Rs 35.4bn/Rs 1.7bn beat street estimates by 14%/55% led by strong India operations (EBITDA: + 77% QoQ to Rs 33.8bn, EBITDA/t: Rs 11,300 vs. Rs 7,300 in Q2). With TATA guiding for better Q4 EU profits, we expect a stronger performance QoQ as India operations mitiga

24/02/2017 11:56:05 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Apollo Tyres Ltd For Target Rs.180.00 - Emkay

* APTY Q3 revenue/EBITDA has come in 11%/8% above consensus estimates largely on account of better performance from European business.

* EBITDA margin came in at 14.4% (-280bps YoY, +20bps QoQ) against consensus expectation of 14.7%. Standalone EBITDA margin came in at 14.6% (-130bps QoQ) on account of higher raw material costs.

* Management believes a 6-7% price hike is ess

24/02/2017 11:50:51 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Techno Electric & Engineering Ltd For Target Rs.411.00 - Reliance Sec

Techno Electric & Engineering (TEEC) has reported an impressive performance in 3QFY17 backed by improved sales and higher PLFs in wind segment. Its sales surged by11.8% YoY, while reported net profit zoomed by 44.4% YoY on reversal of losses in wind segment and better margins in EPC segment. Aided by both EPC & Wind segments, its overall margins improved significantly by 834bps to 21.1%

24/02/2017 11:45:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Ambuja Cement Ltd For Target Rs.211.00 - Karvy

•    Revenues expected to decline by ~4% YoY to Rs 22.64 bn as the lower volumes would partially negate the higher realisations. 

•    Cement volumes expected to de-grow by ~9% YoY to 5.2 mt primarily on account of sluggish cement demand during the quarter due to negative impact of de-monetization. 

•    N

24/02/2017 11:41:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Glenmark Pharmaceuticals Ltd For Target Rs.1,150 - Sharekhan

Key points

* Q3FY2017 profit better-than-expectation due to gZetia exclusivity:

Glenmark Pharmaceuticals (Glenmark Pharma) reported strong revenue growth of 42.6% YoY for Q3FY2017, while the operating profit grew by 106.9% YoY to Rs765 crore and the net profit improved by 143.4% to Rs477 crore. The excellent

24/02/2017 11:34:52 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Alkem Laboratories Ltd For Target Rs.1,996.00 - Angel Broking

Domestic business remains strong, US business shows strong growth:

Alkem reported revenue grew of 15% yoy in 3QFY17. Domestic revenue grew by 16.8% yoy to `1,030cr while exports grew by 18.7% to `432cr. US revenue grew by 30% yoy to `339cr. Other exports de-grew by 9.8% yoy as company continues to focus on select few international markets. Domestic bus

24/02/2017 11:31:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Gujarat State Petronet Ltd For Target Rs.175 - Kotak Sec

Optimistic outlook: Pipeline tariff revision and higher gas volumes key triggers

GSPL's management is optimistic about tariff hike and has also indicated that hosting of public consultation document by PNGRB is a step in the right direction, and expects the process to be completed in CY17. Hence, future earnings growth will be supported by margin

24/02/2017 11:22:23 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Bank of Baroda Ltd For Target Rs.180.00 - Prabhudas

BOB earnings were below estimates with PAT of Rs2.53bn (PLe: Rs6.54bn). Core performance was better mainly from a lower base last year. NII was impacted on back of interest reversals on SDR & higher slippages from mid corporate and some impact of lower yields on loans. Fees were slightly better and strong treasury supported PPOP. Asset quality was broadly stable but some higher slippages we

24/02/2017 11:16:08 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Nava Bharat Ventures Ltd - Sharekhan

Key points

* Slowly but surely moving forward to commissioning of Zambian Power Plant:

Nava Bharat Ventures’ (NBVL) Zambian subsidiary is envisaged to achieve the COD in Q4FY2017 (as per financing documents) without any cost over-run despite a seven-month delay. It has started booking revenue at commerc

24/02/2017 10:52:05 AM | Posted in Broking Firm Views - Long Term Report read full news
Update On GHCL Ltd - SPA Sec

GHCL has diversified businesses catering to chemicals (~58% of revenue), textiles (~40% of revenue) and consumer products (~2% of revenue). GHCL is one of the leading manufacturers of soda ash with 23% market share in India. Company has an integrated textile manufacturing presence from spinning to processing. GHCL recently entered in FMCG business with salt, honey and spices. GHCL reported meag

24/02/2017 10:49:54 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Simplex Infrastructures Ltd For Target Rs.283.00 - Karvy

Execution remains weak; Downgrade to Sell

Simplex Q3FY17 PAT of Rs 184 mn (-35% YoY) was better than our estimate of Rs 153 mn on account of higher than expected other income. Though, revenues of Rs 13.86bn (down by 1.7% YoY) was lower than estimate of Rs 15.5bn as the execution remained muted during the quarter. EBITDA of Rs 1.59bn (+4% YoY) was broa

24/02/2017 10:46:36 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy J. Kumar Infraprojects Ltd For Target Rs.270.00 - Reliance Sec

J. Kumar Infraprojects Decent Performance on Execution Ramp-up

Aided by pick-up in construction activities post monsoon and revenue flow from metro projects, J. Kumar Infraprojects (JKIL) has reported a healthy performance in 3QFY17. Its revenue surged by ~21% YoY and ~20% QoQ to Rs3.63bn. While EBITDA grew by ~25% YoY & ~14% QoQ to Rs567mn on heal

24/02/2017 10:40:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy J K Cement Ltd For Target Rs.938.00 - Motilal Oswal

Strong improvement in operational performance led by cost savings

* Stable realizations and better performance in white cement drive profits:

3Q revenue declined 2% YoY to INR8.9b (est. of INR9b). Grey cement revenue fell 4% YoY to INR5.9b (est. of INR6.2b) due to lower volumes in south operations. White cement rev

24/02/2017 10:37:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Brigade Enterprises Ltd For Target Rs.264.00 - Emkay

Result highlights

* Higher than expected revenue recognition from residential projects led to Brigade Enterprises (BRGD) reporting revenue and earnings well ahead of estimates.

* As expected, new sales bookings declined 45% QoQ in value terms to 0.3msf worth Rs 1.9bn owing to demonetization. However, impact of the same was cushioned by renta

24/02/2017 10:29:30 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jain Irrigation Systems Ltd For Target Rs.104.00 - Religare Sec

Good show in challenging environment...

Jain Irrigation Systems Ltd (JISL) reported healthy Q3FY17 results, beating the demonetisation woes. Net sales increased by 4.6% yoy, in the challenging demand environment. EBITDA and PAT increased by 27.7% yoy and 126.7% respectively. Prudent operating management and working capital efficiency led to margin impr

24/02/2017 10:23:42 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Strides Shasun Ltd For Target Rs.1,230.00 - RCML

Margins beat estimates; restructuring on cards

STR posted a decent beat on its Q3 EBITDA even with a miss on revenues. It is also on track to achieve its H2 EBITDA guidance of Rs 4.4-4.7bn despite a delay in gLovaza approval. With several acquisitions in FY16-FY17, STR would now focus on integrating them. The company is also restructuring its non-core busine

24/02/2017 10:19:39 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sun Pharma Ltd For Target Rs.847.00 - Angel

For 3QFY2017 Sun Pharmaceuticals posted results marginally lower than expectations on sales front, while OPM came in much below expectation, however, net profit was slightly below expectations. Sales came in at `7,683cr (v/s `7800cr expected) v/s `7,087cr in 3QFY2016, a yoy growth of 8.4%. Indian sales at `1,969cr, posted a yoy growth of 5%, while USA finished dosage sales (45% of sales) at US$

24/02/2017 10:15:07 AM | Posted in Broking Firm Views - Long Term Report read full news