Neutral Gruh Finance Ltd For Target Rs.450.00 - Motilal Oswal

Impressive all-round performance

* Gruh Finance (GRHF) reported PAT of INR722m (7% below our estimate) for 1QFY18, driven by higher-than-expected provisioning charge. Operating performance was robust and ahead of expectations.

* Loan growth was in line with trend at 19% YoY, driven by retail home loans. Disbursements continue to be strong in

20/07/2017 3:00:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Mindtree Ltd For Target Rs.490.00 - Emkay

Bluefin blues continue

* Q1FY18 performance was weak with a revenue growth of 1.2% qoq in CC terms. The revenue performance was affected by pricing decline of 140bps qoq largely on offshore delivery shift. Offshore volumes were up 5.2% qoq while onsite volumes were down 1.2% qoq.

* Deal win traction has been good in general but there was a de

20/07/2017 12:29:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jubilant Life Sciences Ltd For Target Rs.905.00 - Motilal Oswal

Growth levers intact, overall sales driven by LSI segment

* JLS delivered sales of INR15.6b in 1QFY18, marginally lower than our estimate of INR15.9b. EBITDA margin came in at 21.7% (est. of 22%), led by elevated margin in the pharmaceuticals business. PAT of INR1.4b missed our estimate of INR1.6b due to a higher tax rate for the quart

20/07/2017 12:25:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Havells India Ltd For Target Rs.440.00 - Emkay

Marred by interim challenges but outlook strong – Retain Hold

* Muted quarter - Revenue grew 26.8% yoy to Rs18.6bn while erstwhile Havells business grew 9% yoy; EBITDA at Rs1.7bn (-13.9% yoy) and APAT at Rs1.2bn (- 16.6% yoy)

* Cables and wires sales healthy (+19.5% yoy) aided by inventory up stocking due to higher GST rate. ECD (grew b

20/07/2017 12:15:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Finance Ltd For Target Rs.1,740.00 - Sharekhan

Key points

Enthusiastic operating performance:

Bajaj Finance Limited (BFL) reported robust operating performance for Q1FY2018. Net interest income (NII) surged by 48.9% YoY to Rs.2,087 crore. The impressive NII growth was driven by healthy growth in advances (up 35.9% YoY) and expansion of net interest

20/07/2017 12:12:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hindustan Unilever Ltd For Target Rs.1,216.00 - Kotak Sec

HUL reported a strong set of results, as volume growth, as well as margins came in ahead of estimates. The company has displayed an ability to drive margin expansion and also committed to a continued improvement in margins along with a healthy topline growth. We raise our EPS estimates by 4% following the results, and believe the results shall be viewed positively by the market as a signal for

20/07/2017 12:07:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sterlite Technologies Ltd For Target Rs.272.00 - Emkay

1Q exceeds expectations; EPS/TP upgraded

Result highlights

* Sterlite Technologies Ltd (SOTL) continues to surprise us positively on earnings performance. Q1FY18 net profit of Rs610m increased by 60% yoy and was 15% above our estimate.

* This is our third TP upgrade since our IC in Sept’16. We

20/07/2017 12:03:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral ITC Ltd For Target Rs.280.00 - Motilal Oswal

New GST rates a huge dampener

* On 17 July 2017, the Indian government announced the new GST rates applicable on cigarettes. The tone of the GST Council’s press release appeared to indicate a reversal to neutral GST levels, from the earlier indication of beneficial rates for ITC after the abolishment of additional excise duty (as per the 1 July

20/07/2017 11:45:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ultratech Cement Ltd For Target Rs.4,936.00 - Motilal Oswal

EBITDA beat led by higher margins; volumes miss estimate

* Net sales increased 6% YoY to ~INR66.26b, lower than our estimate of INR67.5b due to weaker volumes. Volumes (including white cement and putty) were flat YoY at 13.2mt (est. of 13.7mt).

* EBITDA increased 10% YoY (+22% QoQ) to ~INR15.6b (est. of INR14.7b), led by better-than-estimated

19/07/2017 12:11:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Gujarat State Petronet Ltd For Target Rs.182.00 - Kotak Sec

Pipeline tariff revision, Softer LNG prices and higher gas volumes are the key triggers

Multiple positive triggers in the offering for GSPL in FY18E and onwards which maintains our positive bias for the stock. In the immediate future softening of LNG prices, recent rupee appreciation, and possibility of ban on use of polluting fuels like furnace oil a

19/07/2017 12:00:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold ITC Ltd For Target Rs.325.00 - Sharekhan

Key points

* Event – Revised cess hike will lead to 8-9% increase in effective tax rate on cigarettes:

In the recent GST council meeting, the government hiked compensation cess on cigarettes to avoid any gains to cigarette manufacturers. The peak GST rate of 28% and ad valorem cess of 5% remained same. H

19/07/2017 11:55:53 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hindustan Unilever Ltd For Target Rs.1,250.00 - Emkay

Strong improvement in margins; Retain ACCUMULATE

* Strong quarter on profitability: Revenue grew by 4.9% yoy to Rs85.3bn, led by price hikes; EBITDA grew by 14.1% yoy to Rs18.7bn while APAT grew by 14.9% yoy to Rs12.9bn.

* Volume growth was flat, impacted by thinning of trade pipeline (CSD channel worst hit). If CSD channel was normal, volume

19/07/2017 11:47:17 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral ACC Ltd For Target Rs.1,662.00 - Motilal Oswal

Double-digit volume growth led by ramp-up of new capacities

* Market share gains led by ramp-up of new capacity in east: 2QCY17 volumes increased 10% YoY to 6.74mt (in-line), led by ramp-up of new capacities in the east. Cement realization of INR4,509/t (+7% YoY, +6% QoQ) was in line with our estimate. Sequential pricing improvement w

19/07/2017 11:41:19 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Jubilant FoodWorks Ltd For Target Rs.850.00 - Motilal Oswal

SSSG better than expectation; ‘Everyday Value’ strategy receives good response

* Results above expectations: 1QFY18 net sales grew 11.5% YoY (est. of +3%) to INR6.8b, EBITDA rose 37.8% YoY (est. of +3%) to INR796m and adj. PAT increased 25.6% YoY (est. of -4.8%) to INR181m. SSS grew 6.5% YoY (est. of -3%) for the quarter.<

19/07/2017 11:37:18 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Allcargo Logistics Ltd For Target Rs.205.00 - Kotak Sec

Weak Exim trade, demonetisation, weak global trade and competition in the CFS segment impacted the performance of the company in FY17. However, with improvement in volumes at major ports at 2.25 mn TEUS in Q1FY18 (from 2.12 mn TEUs in Q1FY17) is a positive sign for ALL. Also, the fourth container terminal at JNPT (total capacity = 4.8 mn TEUs and partially operational by end of CY17) and the st

19/07/2017 11:30:36 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Infosys Ltd For Target Rs.1,116.00 - Equirus Sec

While Infosys‟ quarterly performance was emphasized by India contribution, we were particularly enthused by the disclosures on „newer services‟. Given the backdrop of lack of precise definition, comprehending standalone Digital revenue contribution was a futile exercise. However, that could change with Infosys reporting contribution of „newer‟ services non-existent before 2015

19/07/2017 11:20:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Tata Consultancy Services Ltd For Target Rs.2,434.00 - Equirus Sec

1QFY18 earnings were a mixed bag with in-line revenues but miss on the margins. CC revenues grew 2% qoq as healthy volume growth (3.5%) was offset by drop in price realisations (1.5%). Interestingly, despite a decent start to FY18E (2% CQGR in the rest of FY18E translates to 7.5% yoy growth), commentary was tepid driven by lack of visibility in BFSI and Retail. Management alluded that though BF

18/07/2017 2:45:47 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold ACC Ltd For Target Rs.1,625.00 - Emkay

Strong volume growth, lower opex helps to beat estimates

* ACC reported EBITDA of Rs4.95bn against our estimate of Rs4.4bn, primarily due to lower operating costs (Rs73/tonne below estimate). EBITDA/tn of Cement was Rs708 against our estimate of Rs654. Jamul and Sindri plants led to a strong 10.1% yoy volume growth.

* Sales volume was up 10.1

18/07/2017 2:39:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Karnataka Bank Ltd For Target Rs.220.00 - Kotak Sec

Key Highlights of Karnataka Bank's Q1FY2018 Result

* Karnataka Bank reported a 10.1% yoy rise in its net profit for Q1FY2018 to Rs.133.85 crore as compared to Rs.121.54 crore. Provisions for the quarter grew by 45.9% yoy to Rs.198.88 crore as compared to Rs.136.31 crore;

* Whereas operating profit during the quarter grew by 18.2% yoy to R

18/07/2017 2:35:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Motherson Sumi Systems Ltd - Sharekhan

Key points

MSSL to outpace industry growth; Aims at $18 billion revenue by FY2020:

Motherson Sumi Systems Limited (MSSL) has given a revenue target of $18 billion for FY2020, indicating almost triple of revenues from $6.5 billion in FY2017. MSSL has indicated that half of the growth (about $6 billion)

18/07/2017 2:31:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Venkys India Ltd For Target Rs.2,200.00 - Kotak Sec

A fortnight ago, we published our report on Venky’s (India), with a price target of Rs 2150 (i.e. 50% upside over nine months), and a belief that the stock had potential to rise to ~ Rs 2900 over a two-year horizon, incumbent on certain assumptions. The stock breached our price target in five sessions, and has been consistently trading ahead of our (March’ 18) price target. As of no

18/07/2017 2:23:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Tata Consultancy Services Ltd For Target Rs.2,240.00 - Reliance Se

Revenue in Line, But Margins at 9-Year Low

Tata Consultancy Services has delivered largely an in-line performance in 1QFY18 with its USD revenue growing by 3.1% QoQ (+2% QoQ in CC terms). While volume grew by 3.5% QoQ, CC pricing declined by 1.5% QoQ. EBIT margin declined steeply by 236bps QoQ, which was well below our estimate by 74bps, which led net

18/07/2017 2:17:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Infosys Ltd For Target Rs.1,050.00 - Sharekhan

Key points

* Good Quarter:

Infosys reported higher-thanexpected earnings for Q1FY18 after posting lackluster performances in the past consecutive quarters. For Q1FY18, constant currency (CC) revenue up by 2.7% on a sequential basis and 3.2% on reported basis to $2651 mn, led by volume growth of 1.7% coupled w

17/07/2017 11:55:02 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Grasim Industries Ltd For Target Rs.1,384.00 - Motilal Oswal

Grasim holdco discount to remain at historical levels

See limited upside from present levels; Maintain Neutral

* Record date for Grasim’s shareholders to be entitled for 7 shares of ABCL (Aditya Birla Capital Limited) for every 5 shares of Grasim is 20th July implying ex-date to be 18th July.

* Grasim shares f

17/07/2017 11:47:08 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral DCB Bank Ltd For Target Rs.192.00 - Motilal Oswal

Healthy PAT growth backed by one-off other income and Opex control

* DCB Bank reported healthy PAT growth of 39% YoY (23% QoQ) to INR652m (10% above estimate). PPoP performance surprised (+18%/+47% QoQ/YoY, 14% above estimate) driven by one-off treasury gains of INR214m

* NII grew 32% YoY to INR2.3b, helped by 24% growth in interest earning a

17/07/2017 11:39:25 AM | Posted in Broking Firm Views - Long Term Report read full news