Update On Indian Oil Corporation Ltd - Sharekhan

Key points

* Inventory loss impacted earnings:

Indian Oil Corporation Limited (IOCL) reported Q1FY2018 operating profit of Rs.8,000 crore (down 41.5% YoY; up 81.5% QoQ). However, after adjusting for oneoff gain of Rs.2,808 crore (related to write-back of provision for entry tax in Haryana), operating profit

29/08/2017 3:51:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ceat Ltd For Target Rs.2,029.00 - Motilal Oswal

High-cost inventory, destocking impact perf; Pressure likely to ease

* Revenue in line; significant miss on EBITDA and PAT: CEAT reported overall revenue of INR16,286m (est. of INR15,474m) in 1QFY18, as against INR16,462m in 1QFY17, marking a decline of 1.1%. EBITDA stood at INR547m (est. of INR1,486m) v/s INR1,854m in 1QFY17, with the

28/08/2017 4:02:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral LIC Housing Finance Ltd For Target Rs.708.00 - Motilal Oswal

Under pressure

* LIC Housing Finance (LICHF) reported PAT of INR4.7b for 1QFY18, missing our estimate by 20%. Sharp sequential decline in margins and largely stable provisions YoY (despite high base in 1QFY17) were the key reasons for the miss. Overall, it was a subdued quarter for LICHF.

n Loan book growth remained in line with past trends a

28/08/2017 3:57:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Siemens Ltd For Target Rs.1,425.00 - Emkay

Steady performance

* SIEM reported better-than-expected operational performance for Q3FY17. Revenue increased by 25% yoy, largely aided by a 54% yoy growth in Energy Management (EM). Except Power & Gas (PG), the remaining segments posted a yoy growth in revenue. EBITDA margin declined by 30bps yoy to 8.5% while APAT increased by 51% yoy.

28/08/2017 3:40:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce EClerx Services Ltd For Target Rs.1,244.00 - Equirus Sec

eClerx Services (ESL) reported soft 1Q earnings as both revenue/margins were below EE. Though, management highlighted that pipeline across businesses is stronger than it has been in the past 18 months, productivity improvement led by automation & project roll-offs in large accounts continue to create growth pockets which are difficult to replenish. As for 2Q, revenues could decline 2-4% qoq

28/08/2017 3:29:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Adani Power Ltd For Target Rs.26.00 - Reliance Sec

Net Loss Doubles; Weakness to Persist

On expected lines, consolidated net loss of Adani Power (APL) widened to Rs4.5bn in 1QFY18 compared to Rs2.3bn in 1QFY17, albeit its net sales marginally rose by 3.8% YoY. Notably, APL continues to report dismal numbers due to lack of adequate coal supply from Bunyu mines (which has been forcing the Company to blen

28/08/2017 3:23:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Arvind Ltd For Target Rs.485.00 - Sharekhan

Key points

* Mixed performance in Q1FY2018 – Doubledigit revenue growth, but OPM decelerated:

Arvind Limited’s (Arvind) revenue for Q1FY2018 grew strong by 17.6% YoY to Rs.2,475 crore, driven by 40% growth in the branded apparel’s business and 17% growth in the garment business. The like-to

28/08/2017 3:16:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra & Mahindra Ltd For Target Rs.1,525.00 - Sharekhan

Key points

*  In-line operating performance:

Mahindra & Mahindra’s (M&M) topline for Q1FY2018 increased by 5% YoY to Rs11,094 crore on account of 2.7% YoY volume growth and 2.6% YoY increase in realisation. Farm equipment sales grew sharply by 12% YoY, while the auto segment’s revenu

26/08/2017 1:46:31 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat Mineral Development Corporation Ltd For Target Rs.177.00 - Equirus Sec

GMDC reported a strong operating performance for 1QFY18 with 32% yoy/23% qoq EBITDA growth driven by a 36% yoy and 8% qoq increase in lignite volumes. Power EBIT however declined 32% yoy owing to (1) a decline in wind PLFs to 30% from 37% in 1QFY17 due to lower wind velocity, even as fixed expenses increased with the commissioning of new wind mills, and (2) higher maintenance-related expenses f

26/08/2017 1:27:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Container Corporation of India Ltd For Target Rs.1,069.00 - Emkay

Operating performance drives profitability

*  Strong overall Q1FY18 volume of 842,709 TEUs that was up 14.6% YoY with EXIM volume up 12.8% and domestic volume up 26% YoY

*  CCRI’s double stacking drive and strict monitoring of empties led to a sharp increase of 272bps YoY in its EBITDA margin at 22.4% vs. our expectation of 19

26/08/2017 12:33:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral India Cements Ltd For Target Rs. 200.00 - Motilal Oswal

Lower-than-estimated earnings led by higher employee and interest cost

*  India Cements (ICEM) posted flat YoY volumes of 2.66mt, as south volumes declined 8% YoY, offset by 15% YoY increase in non-south volumes and growth in export markets. Blended cement realizations increased 5% QoQ due to price improvement in the focus markets. Revenues decli

26/08/2017 12:18:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Lupin Ltd For Target Rs.950.00 - Sharekhan

Key points

*  Disappointing performance:

During Q1FY2018, Lupin’s total sales (including operating income) declined by 12.8% to Rs.3,869.6 crore. Operating profit declined by 41.3% to Rs.768.4 crore and adjusted profit declined by 59.3% to Rs.359.1 crore. Disappointing performance for the quarter

Buy State Bank of India Ltd For Target Rs.355.00 - Reliance Sec

Post Merger Hiccups Impacted Performance; Maintain BUY

State Bank of India (SBI) has delivered a disappointing performance in 1QFY18 on asset quality and operating front following the merger of erstwhile associate banks (e-ABs) and Bharatiya Mahila Bank with itself. Its operating profit declined by 13.7% YoY and 31.4% QoQ to Rs118.7bn primarily due to

26/08/2017 10:35:03 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Avanti Feeds Ltd For Target Rs. 2,450.00 - Equirus Sec

Avanti Feeds Limited (AFL) reported 1QFY18 sales of Rs 9.98bn (+38% yoy and +13% above EE). Domestic feed business grew 40% yoy, largely led by volumes. Shrimp processing business also posted strong growth of 25% yoy. EBITDAM hit record-high of 23% (+1,204bps yoy) mainly helped by benign RM prices. While FY18 will be an exceptional year in terms of earnings growth given historically low RM pric

26/08/2017 10:23:51 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Power Ltd For Target Rs. 55.00 - Emkay

Lower PLF/PAF and elevated fixed cost impact Q1FY18 result

*  At Rs2.3bn (-32.2% yoy), the PAT is below our estimate of Rs2.7bn, primarily due to increased depreciation and interest expenses. Lower generation across Butibori and Sasan also impacted Q1FY18 result.

*  Sasan’s PLF in Q1FY18 declined to 86.1% vs 91.5% yoy, while i

26/08/2017 10:16:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Intrasoft Technologies Ltd For Target Rs.626.40 - Choice Broking

IntraSoft Technologies Ltd. (ITL) a multi-channel e-commerce retailer in the US, reported its Q1 FY18 numbers, which was above our expectations. The company reported a 12.2% Y-o-Y increase in the earnings on a 17.1% rise in total operating revenue.

 

Q1 FY18 Result Analysis:

Top-line increased by 17.1%: On the

25/08/2017 12:22:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Fortis Healthcare Ltd For Target Rs.220.00 - Motilal Oswal

Sequential improvement visible; recovery pace slower than expected

* Sales increased 3.2% YoY to INR11.6b, missing our estimate of INR12.2b, due to the impact of demonetization and stent price control. EBITDA rose 38% YoY to INR861m (est. of INR941b), with the margin at 7.4% (v/s est. of 7.7% and 5.6% in 1QFY17). Adj. PAT increased 41.1% YoY to INR228

25/08/2017 12:15:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sun Pharmaceutical Industries Ltd For Target Rs.558.00 - Angel Broking

Sun Pharmaceuticals posted poor set of numbers for 1QFY2018. Sales came in at `6,167cr (`6,825cr expected) v/s. `8,007cr in 1QFY2017, a yoy de-growth of 23.0%, mainly driven by the Indian formulation sales dip and US (which was impacted on the back of pricing pressures and base effect). On operating front, the EBITDA margins came in at 17.1% (17.7% expected) v/s. 33.5% in 1QFY2017, mainly on th

25/08/2017 12:08:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Escorts Ltd For Target Rs.732.00 - Motilal Oswal

Strong monsoon, early festive season to lay growth foundation

* Steady growth despite GST transitional hiccups: Overall revenue increased 11% to INR11.6b (est. of INR11.2b) in 1QFY18 from INR10.5b in 1QFY17, led by strong growth of 20% YoY in Construction Equipment and 10% YoY growth in Tractors. EBITDA margin shrunk 20bp YoY from 8.6%

25/08/2017 12:03:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate GE T&D India Ltd For Target Rs.444.00 - Emkay

Impresses with strong show

* GET&D (GETD) posted yet another quarter of strong operational performance. Revenue surged by 41% yoy, driven by strong execution and robust order backlog. EBITDA margin increased to 8.7%, while PAT increased to Rs617mn.

* Order inflows doubled yoy to Rs15.8bn while order backlog increased by 7% yoy to Rs84bn.

25/08/2017 11:57:13 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cadila Healthcare Ltd For Target Rs.552.00 - Equirus Sec

Cadila Healthcare’s (CDH) 1QFY18 results were below EE owing to a 19% yoy decline in domestic market revenues due to GST implementation. Gross margins remained flat qoq despite lower contribution from high-margin domestic business, implying margin improvement in other base businesses. We think CDH, with its robust pipeline, is well-poised among peers, and expect a 22% CAGR in its US busin

25/08/2017 11:51:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Steel Authority of India Ltd For Target Rs.51.00 - Reliance Sec

EBITDA Loss Shrinks on Higher Realisation; Maintain HOLD

Steel Authority of India (SAIL) has reported a better-than-estimated performance on operating front in 1QFY18 on account of improved realisation, which increased by 15.9% YoY and 3.8% QoQ to Rs38,242/tonne vs. our estimate of Rs35,100. Its sales volume increased by 8% YoY (down 12% QoQ) to 3.03mn

25/08/2017 11:40:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Century Plyboards Ltd For Target Rs.280.00 - Sharekhan

Key points

* GST-related initial issues along with rawmaterial supply constraints affects overall operating performance:

Century Plyboards (India) Limited (Century Plyboards) reported standalone net sales growth of 8.1% YoY to Rs.438.6 crore in Q1FY2018. The topline was supported by the plywood division (rev

25/08/2017 11:35:13 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Arvind Ltd For Target Rs.375.00 - Motilal Oswal

Pressure on Textiles; Brand & Retail to drive growth

Branded Apparels segment drives growth:

ARVND’s revenue grew 17.6% YoY to INR24.7b (est. of INR23b) in 1QFY18, led by growth of 39.6% YoY in Branded Apparels. EBITDA stood at INR2,070m (est. of INR2,212m) v/s INR2,445m in 1QFY17. EBITDA margin co

24/08/2017 4:46:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Accummulate SRF Ltd For Target Rs. 1,665.00 - Emkay

Chemical division impacts overall performance; Maintain ACCUMULATE

*  Revenue stood at Rs 13.8 bn (v/s Emkay Est. Rs16.6 bn), up 6.9% yoy. The key drivers for revenue growth were Technical Textiles (+11.3% yoy) and Packaging Films (+19.4% yoy). This was partially offset by 8.0% yoy decline in Chemicals & Polymers segment.

*  Con

24/08/2017 4:39:57 PM | Posted in Broking Firm Views - Long Term Report read full news