Buy Kajaria Ceramics Ltd For Target Rs.660.00 - Equirus Sec

Kajaria Ceramics Ltd (KJC) saw a 6% yoy growth in its 1QFY18 revenues (3% below EE) due to pre-GST led destocking at the dealer level, with the month of June seeing the maximum impact. Sales volume grew 3% yoy on higher outsourcing. Margins were down 300bps yoy due to higher fuel costs and advertisement expenses, and we expect some margin pressure in 2QFY18 as well. Accordingly, we pare our FY1

2/09/2017 10:09:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Power Company Ltd For Target Rs.88.00 - Reliance Sec

Improving Operational Performance; Maintain BUY

Tata Power Company (TPCL) has posted an improved performance in 1QFY18 with its consolidated net profit rising by 126% YoY to Rs1.64bn (vs. Rs0.72bn in 1QFY17) due to strong performance by the coal subsidiaries, renewable business and better operational performance. Notably, renewable business generated R

2/09/2017 10:02:27 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Finolex Cables Ltd For Target Rs.530.00 - Sharekhan

Key points

* Margins maintained despite higher input cost:

During Q1FY2018, Finolex Cables Limited (FCL) reported 22% YoY revenue growth to Rs.674 crore, led by growth in electrical cables (ECL) as well as communication cables (CC) segments. The ECL segment grew by 15% YoY to Rs.572 crore, led by improvement

1/09/2017 4:07:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy JK Lakshmi Cement Ltd For Target Rs.519.00 - Motilal Oswal

EBITDA disappointment led by cost push

* Strong realizations in core markets: JKLC’s volumes rose 8% YoY (flat QoQ) to 2.29mt (in-line) due to ramp-up in its east operations, where volumes rose 24% YoY. Realizations grew 7% YoY (+12% QoQ) to INR3,943 (est. of INR3,831) due to strong pricing in its focus markets of Gujarat. EBITD

1/09/2017 3:35:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jamna Auto Industries Ltd For Target Rs.279.00 - Religare Sec

Slowdown in MHCVs impacted Q1FY18

Jamna Auto reported dismal set of Q1FY18 result due to slowdown in MHCV segment on account of GST implementation. Total income and Net profit declined by 18.5% and 35.9% on YoY basis. However, we expect demand for MHCVs to revive in H2FY18, given bright outlook for the Indian economy and falling interest cost. Jamna Au

1/09/2017 3:13:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Godrej Consumer Products Ltd For Target Rs.995.00 - Motilal Oswal

Price hike-led sales growth in India, Indonesia drags international performance

* Godrej Consumer’s (GCPL) 1QFY18 consolidated net sales grew 2.8% YoY to INR21.7b (est. of +9%). Consol. EBITDA declined by 9.3% YoY to INR3.5b (est. of +2.9%) and adj. PAT by 9.2% YoY to INR2.3b (est. of +1.3%), representing a miss on all counts. O

1/09/2017 2:59:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate DCM Shriram Ltd For Target Rs.448.00 - Emkay

Volume growth continues in Sugar and Chemicals

* Chemical revenues at Rs5bn (+35% yoy) were driven by 42% yoy increase in chlor-alkali volumes. EBIT margins contracted 400bps yoy to 29% due to higher cost of coal but improved 335bps sequentially. EBIT stood at Rs1.4bn (+19% yoy)

* Sugar revenues increased 20% qoq and 139% yoy to Rs6.6bn drive

1/09/2017 2:52:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ratnamani Metals and Tubes Ltd For Target Rs.1,029.00 - Equirus Sec

Well, we did not expect it, but strong order inflows in the carbon steel (CS) segment catapulted RMT’s total order book to Rs 21bn+, 50% higher than its last peak order book. The best part of these order additions was the strong CS export order inflows, at Rs 5bn+ currently. On the other hand, the stainless steel (SS) order book is moving slower than expected; however, lower-margin CS ord

1/09/2017 2:36:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold CG Power and Industrial Solutions Ltd For Target Rs.78.00 - Reliance Sec

Exit from Loss-making Overseas Assets in Sight

CG Power & Industrial Solutions (CG Power) has reported a dismal performance in 1QFY18 with its consolidated net loss widening to Rs481mn in 1QFY18. However, net loss stood at Rs860mn including loss from discontinued operations of Rs379mn due to higher commodity prices, which could not be passed on owi

1/09/2017 2:14:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NYPC Ltd For Target Rs.185.00 - Emkay

TP raised to factor in higher asset capitalisation over FY18E/19E

* NTPC reported a 5.0% yoy increase in reported revenue to Rs198.8bn for Q1FY18. After adjusting for prior period sales, revenue increased 4.5% yoy to Rs198.4bn (in line with our estimate of Rs198.0bn).

* Derived realization and variable cost increased 5.3% yoy and 4.6% yoy to

31/08/2017 4:00:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy AIA Engineering Ltd For Target Rs.1,488.00 - Equirus Sec

AIA Engineering (AIAE) reported a soft 1QFY18 with a 9% yoy decline in EBITDA despite 17% yoy volume growth, as the quarter reeled under the dual impact of higher RM cost and lower USD-INR realizations. We believe that while RM costs will decline from 2Q due to a correction in ferro-chrome prices, AIAE will continue to see lower USD-INR realizations; we therefore prune our full-year realization

31/08/2017 3:18:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ahluwalia Contracts India Ltd For Target Rs.320.00 - Reliance Sec

Robust Performance on Healthy Execution; Upgrade to BUY

Led by improved execution, Ahluwalia Contracts (ACIL) has reported a strong and a betterthan- expected performance in 1QFY18. While its revenue surged by 65% YoY and 7% QoQ to Rs5.0bn, EBITDA grew by 26% YoY and 24% QoQ to Rs536mn vs. our estimate of Rs404mn. EBITDA margin stood 10.6% (-325bps YoY

31/08/2017 3:11:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate KEI Industries Ltd For Target Rs.288.00 - IIFL

KEI showcased another quarter of strong performance on the back of strong execution in its EPC division and robust export and cables sales. In domestic market, the company continued its thrust to expand its network across country and has managed to increase its dealer base by 23% yoy. It has added 99 dealers in Q1 FY18 taking the count to 1,246 active dealers. Also, expansion of presence in glo

31/08/2017 3:05:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Insecticides India Ltd For Target Rs.945.00 - Emkay

Strong show led by healthy volume growth

* Insecticides India reported robust revenue growth of 14% yoy to Rs3.1bn driven by 15% volume growth in formulation segment as well as external technical sales segment. Revenue from external technical sales increased 49% yoy to Rs524mn.

* Gross margin expanded 430bps to 29% and was above our estimate

30/08/2017 12:28:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Britannia Industries Ltd For Target Rs.4,665.00 - Sharekhan

Key points

* Steady operating performance in Q1FY2018:

Britannia’s Q1FY2018 operating performance was better than our expectation in a tough environment. The company’s revenue grew by 6.5% YoY to Rs.2,339.8 crore, driven by mix of 3% volume-led growth and 3.5% realisation-led growth. Excluding de

30/08/2017 12:23:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bodal Chemicals Ltd For Target Rs.292.00 - SPA Sec

Bodal Chemicals (BCL) is a leading manufacturer of dyes Intermediates/dyestuff and has diversified into speciality chemicals. Company has strong presence in domestic market and exports to 50+ countries. Company has recently ventured into high margin speciality chemicals and liquid dyestuff products. With increasing capacity of dyestuff and dye intermediates, Bodal has also expanded its Effluent

30/08/2017 12:15:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Jyothy Laboratories Ltd For Target Rs.395.00 - Motilal Oswal

Double-digit sales decline across segments; 2QFY18 showing signs of recovery

* Consol. net sales declined 16.1% YoY to INR3.6b (est. of +4%), with Power brand sales down 16.3% YoY. EBITDA fell by 45.9% YoY (est. of -7.5%) to INR437m and PAT by 53.6% YoY (est. of -11.1%) to INR206m.

* Consol. gross margin expanded 330

30/08/2017 12:09:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shilpa Medicare Ltd For Target Rs.805.00 - Motilal Oswal

Injecting growth

Product approvals, superior execution to drive earnings

* Shilpa Medicare (SLPA) has been engaged in the manufacture of active pharmaceutical ingredients (APIs) since 1987. However, over a period of time, it has shifted its focus toward creating a niche in pharmaceutical manufacturing. In the process, it ha

30/08/2017 12:04:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold JSW Steel Ltd For Target Rs.240.00 - Emkay

Weak performance, scope for improvement

* Standalone steel sales volume rose by 5% YoY while it fell by 11% QoQ to 3.51mt, slightly ahead of our expectations. QoQ fall in blended average realizations was restricted to Rs 425/ tonne to Rs 39,422/ tn due to better prices of galvanized and CRC.

* Standalone EBITDA/ tonne fell by 33% YoY and 18%

30/08/2017 11:57:59 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy HSIL Ltd For Target Rs.369.00 - Equirus Sec

HSIL’s 1QFY18 topline was flattish yoy while EBITDA and PAT declined as EBITDA margins were hit by lower packaging revenues, higher fuel costs (+14% yoy) and greater A&P expenses in the consumer product division (CPD). Revenues for building products division (BPD) and packaging grew 10%/12% yoy but EBITM for both divisions declined by 288bps/ 295bps yoy on lower packaging sales and hi

30/08/2017 11:52:30 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coal India Ltd For Target Rs.301.00 - Reliance Sec

Muted Quarterly Performance; Maintain BUY on Improved Outlook

In line with our estimate, Coal India (CIL) has delivered a muted performance in 1QFY18 with its net profit declining by 23.3% YoY to Rs23.5bn. Further, its EBITDA fell by 17.8% YoY to Rs35.2bn primarily due to higher provisioning towards pending wage negotiations and weak Fuel Supply Agreem

30/08/2017 11:45:48 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Equitas Holding Ltd For Target Rs.201.00 - Motilal Oswal

Steady shift to secured products; at PAR delinquencies in MF up marginally

* Equitas reported PAT growth of 126% QoQ (-75% YoY) to INR156m (15% miss). PPoP exceeded estimate by 31%, helped by lumpy PSLC fees and largely in-line NII. Other income of INR820m (1.6x beat) included INR600m of PSLC fees. However, provisions of INR441m (above est. of INR250m

29/08/2017 4:08:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy PC Jeweller Ltd For Target Rs.327.00 - Emkay

Multiple growth drivers in the offing; Maintain BUY

* Results ahead of expectation; Revenue at Rs 21.2bn, up 27% yoy; Gross margins down by 170bps to 14.3%, while EBITDA margins down 130bps to 11%; EBITDA up 13% at Rs 2.3bn; APAT at Rs 1.4bn, up 27% yoy

* Domestic business grew 32% yoy, led by 15% SSG and robust growth in gold jewellery (+40%

29/08/2017 4:04:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coal India Ltd For Target Rs.264.00 - Equirus Sec

Coal India’s (COAL) 1QFY18 EBITDA came in slightly below EE due to a 3% yoy decline in FSA realizations (7% below EE). We believe the drop in realizations stems from a downward revision in coal grades at ~41% of COAL’s mines earlier. However, with the decline steeper than our estimates, we cut our FY18/FY19 realization assumptions by 5%/3%. Due to lower FSA volume offtake (flat in 1

29/08/2017 4:01:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold NBCC India Ltd For Target Rs.195.00 - Reliance Sec

Soft Quarter; Recovery Ahead

NBCC’s reported 1QFY18 performance was soft and missed our estimates, as revenue booking was impacted due to slow progress in several projects including developmental projects. Topline grew by mere 1% YoY to Rs12.6bn mainly aided by 81% YoY improvement in EPC revenue. While PMC revenue declined by 2% YoY to Rs11.5bn (

29/08/2017 3:57:58 PM | Posted in Broking Firm Views - Long Term Report read full news