Update On JK Paper Ltd - Emkay

Higher realizations drive profitability

* Net Sales reported at Rs6.33bn (+6.1% yoy /-6% qoq). Realizations have improved by ~4% sequentially to Rs54,800/ton, primarily driven by price increase in copier segment, JK Paper (CPM)’s stronghold.

* Gross margin expanded to 44% (+630bps yoy/+235bps qoq) largely led by higher realizations and

26/01/2017 9:43:29 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Hindustan Unilever Ltd For Target Rs.877.00 - Kotak Sec

HUL's operating results beat our estimates as pricing growth came in ahead of estimates, leading to revenue as well as margin surprise against estimates. The company's commentary suggests that the worst impact of demonetization is likely behind, and the results suggest that competitive intensity is in control, which should help the company tide over near-term pressures from raw material

25/01/2017 11:55:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dewan Housing Finance Ltd For Target Rs.350.00 - Angel Broking

DHFL reported a strong 32.6% growth in PAT at `245 cr for 3QFY17, exceeding our expectations. Strong momentum in loan growth, easing cost of funds with improving NIM and lower credit cost resulted in better than expected results.

 

Loan growth remained strong, despite demonetization;

DHFL reported 18.7% YoY growth in AUM to `78

25/01/2017 11:49:20 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Asian Paints Ltd For Target Rs.850.00 - RCML

Demand outlook uncertain; RM inflation creeping in

APNT’s Q3FY17 consolidated net sales/EBITDA/adj. PAT grew +2.6%/-1.2%/ -8.4% YoY, with sales and EBITDA coming in ahead of estimates. Gross margins expanded 60bps YoY (-200bps QoQ), but higher other expenses and staff costs restricted EBITDA margins to 17.8% (-70bps YoY). We believe the stock is

25/01/2017 11:35:22 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Chennai Petroleum Corporation Ltd For Target Rs.356.00 – Kotak Sec

CPCL reported strong Q3FY17 results supported by strong margins and inventory gains. Despite 11% sequential decrease in crude throughput, CPCL's Q3FY17 PAT has increased by 197% qoq (partly base effect) to Rs.2.9 bn reflecting strong GRMs, lower raw material cost and presumably huge inventory gains. However, it has reported lower throughput of 2.60 mmt, resulting in mere 86% capacity utiliz

25/01/2017 11:26:10 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Persistent Systems Ltd For Target Rs.790.00 - Sharekhan

Key points

* Revenue beats estimate, but margins fall short of expectations:

During Q3FY2017, Persistent Systems’ (PSL) revenue grew at better-than-anticipated pace of 4.6% QoQ to $110.0 million, driven by a 6.9% QoQ growth in IP-led revenue and a 3.7% QoQ growth in IT Services (3.9% QoQ growth in volu

25/01/2017 11:18:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ashoka Buildcon Ltd For Target Rs.244.00 - Emkay

On a strong footing

Result highlights

* ASBL reported Q3FY17 standalone PAT of Rs 427mn (up 115% YoY) which were marginally above estimates. Revenue grew 18% YoY in line with expectation as road EPC execution picked up.

* Although Q3FY17 overall toll revenue of Rs 1.78bn was down 23% YoY owing to st

25/01/2017 11:14:32 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate UltraTech Cement Ltd For Target Rs.3829.00 – Kotak Sec

Demonetization pushed the cement demand recovery by few quarters.

Result overview: Revenues of the company for Q3FY17 were above our estimates due to lower than expected decline in cement dispatches due to demonetization while margins surprised positively due to reduction in other expenditure. Power and fuel and freight costs have been inching up sequ

25/01/2017 11:05:53 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Persistent Systems Ltd For Target Rs.660.00 - Emkay

Inline revenues led by strong show in Enterprise and IP led business

* 4.6% QoQ revenue growth on back of strong show in Enterprise and IP led business with muted ISV revenues; EBITDA margins at 15.9% improved 20bps QoQ though lower than our estimate

* Three of company’s recently created business units namely Digital, Alliance and Accel

25/01/2017 10:59:35 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy UltraTech Cement Ltd For Target Rs.3,950.00 - Sharekhan

Key points

* OPM sustained due to operational efficiency:

UltraTech Cement’s Q3FY2017 revenue at Rs5,540 crore (down 2% YoY; up 2.7% QoQ) was marginally affected by the demonetisation move. Lower volume of 11.4mt (down 0.6% YoY; up 2% QoQ) and reduced average blended cement realisation of Rs4,860/tonne

24/01/2017 12:12:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold DB Corp Ltd For Target Rs.403.00 - Emkay

Consistency to drive re-rating; Retain HOLD

* DB Corp reported marginal miss on print advertisement growth while reported healthy growth in Digital and Radio. Revenue beat of 2% was primarily driven by higher other operating income, which included one-time MTM gain on sale of investment.

* Circulation revenue growth continued to remain health

24/01/2017 12:03:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Rallis India Ltd For Target Rs.290.00 - RCML

Domestic market share gains continue

RALI reported Q3FY17 consolidated sales, EBITDA and PAT growth of 7%, 17% and 30% YoY respectively, led by strong volumes (11-12% YoY) and supported by benign RM costs. Realisations, however, declined 4-5% YoY. We believe the company continued to capture domestic market share in Q3 – this together with better

24/01/2017 11:55:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold UltraTech Cement Ltd For Target Rs.3750.00 - Reliance Sec

Reported operating performance of UltraTech Cement (UCL) came in broadly in-line with our estimates with reported EBITDA (+1% yoy & -5% qoq) at Rs10.4bn (vs. our estimate of Rs10.3bn) in 3QFY17. Though average net realizations dipped by ~2.5% qoq & ~1% yoy with visible upsurge in fuel prices, UCL’s operating cost/tonne remained resilient at Rs3,833 (-1.3% yoy & -0.4% qoq) owin

24/01/2017 11:48:02 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Rallis India Ltd For Target Rs.236.00 – Prabhudas

Rallis India results were in‐line with growth coming back in agrochemical exports led by Brazil. Domestic Pesticides business was stable with products like Origin, Contaf series, Takumi, Ergon and high margin PGN such as Tata Bahaar continue to do well. Seeds segment reported flattish revenues YoY primarily due to lower traction in paddy and coarse cereals which is reflected in Rabi sowing da

24/01/2017 11:41:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan Unilever Ltd For Target Rs.950.00 - Sharekhan

Key points

Volumes decline by 4% YoY; revenue flat due to higher realisations; OPM down YoY:

In Q3FY2017, Hindustan Unilever’s (HUL) revenue stood flat at Rs8,317.9 crore, which was affected by a 4% YoY decline in volumes due mainly to the government’s demonetisation move. The drop in volumes was

24/01/2017 11:37:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Motherson Sumi Systems Ltd For Target Rs.298.00 - Kotak Sec

MSSL has announced that they have approved a proposal to launch a voluntary public tender offer for the acquisition of the outstanding share capital of PKC Group Plc (PKC), Finland. PKC shareholders are being offered a cash consideration of Euro23.55 per share, representing an aggregate equity purchase price of ~ Euro571mn. PKC is a global tier 1 supplier of wiring harness to OEMs in the MHCV s

24/01/2017 11:30:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Ltd For Target Rs.110.00 - Emkay

Demonetization blip; underlying thesis stays intact

* NIIT Ltd reported weak operational performance for Dec’16 quarter impacted by demonetization blues on its Skills and Career (S&C) business while loss of a client impacted Corporate Learning Solution (CLS) business’ performance.

* Deal wins and scope extensions with large cl

24/01/2017 11:21:03 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Trident Ltd - Sharekhan

Key points ŠŠ

Better-than-expected Q3FY2017 results led by strong performance of Home Textiles division:

For Q3FY2017, Trident has reported a strong revenue growth of 25.9% YoY to Rs1,125.70 crore, which is better than our expectation of Rs1,049.30. The strong double-digit topline growth was mainly driven

23/01/2017 11:38:34 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Yes Bank Ltd For Target Rs.1,600.00 - RCML

Loan growth strong, asset quality stable – BUY

YES’s Q3 PAT grew 31% YoY to Rs 8.8bn led by strong growth in NII and non-interest income. Loan remained robust at 38% YoY whereas NIMs expanded 10bps QoQ to 3.5%. Asset quality was stable with GNPAs/NNPAs at 0.9%/0.3%. Slippages were lower sequentially at Rs 1.3bn but the bank evoked SDR on on

23/01/2017 11:24:34 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Technologies Ltd For Target Rs.95.00 - Kotak Sec

The S&C business has reported a 12.5% YoY fall in revenues in 3Q, because of the currency demonetization drive (our estimate : 9% de-growth). On the other hand, CLS reported an above-expected revenue growth of 14% QoQ in CC terms, as new projects scaled up. Margins in S&C were correspondingly hit whereas, the profitability in CLS was down to 10%, largely due to one-off provisions. The m

23/01/2017 11:19:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Axis Bank Ltd For Target Rs.465.00 - RCML

High non-watchlist slippages a concern – SELL

AXSB posted a grim Q3 as PAT spiraled down 73% YoY to Rs 5.8bn and asset quality sharply deteriorated (GNPA ratio 5.2% vs. 4.2% in Q2). While the bank’s watchlist of stressed assets declined 20% QoQ to Rs 111bn, nonwatchlist slippages remained high at 43% of total slippages. AXSB did not refina

23/01/2017 11:11:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On RBL Bank Ltd - Sharekhan

Key points ŠŠ

Strong operational performance, growth outpacing costs:

RBL Bank has posted stellar Q3FY2017 results, with its Net Interest Income (NII) coming in at Rs321.6 crore (up 44.6% YoY and 6.2% QoQ) while the net profit stood at Rs128.7 crore (up 58.8% YoY and 43.2% QoQ) on the back of robust busine

23/01/2017 10:55:32 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Canara Bank Ltd For Target Rs.200.00 - RCML

Stressed assets ratio high – maintain SELL

CBK reported an in-line PAT (Rs 3.2bn) and stable NIMs (2.2%) for Q3FY17. While slippages declined QoQ to Rs 22.3bn, stressed assets remained elevated at 13.6%. CBK had in-principal approval to restructure accounts worth Rs 25bn under S4A; outstanding loans under SDR/5:25 stood at Rs 75bn/Rs 63bn as of

23/01/2017 10:50:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Rallis India Ltd For Target Rs.236.00 – Emkay

Healthy volume growth in domestic segment; Upgrade to ACCUMULATE

* Consolidated revenues rose 7.5% yoy to Rs3.5bn and were marginally higher than our estimate of Rs3.4bn. Standalone revenues increased 8% yoy to Rs3.2bn while Metahelix revenues declined 5% yoy to Rs224mn.

* Gross margin improved 220bps yoy to 51.8% while EBITDA margin increase

23/01/2017 10:41:51 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold YES Bank Ltd For Target Rs.1,304.00 - Reliance Sec

YES Bank’s net profit grew strongly by 30.6% yoy & 10.1% qoq to Rs8.8bn in 3QFY17, led by robust growth in NII and 22.0% yoy & 28.6% qoq decline in provisioning expenses to Rs1.2bn. Its NII surged 30.3% yoy & 4.2% qoq to Rs15.1bn owing to strong growth in balance sheet and healthy NIMs (up 10bps to 3.5%). Loan book grew by 38.7% yoy (6.2% qoq) to Rs1171bn aided by 42.2% yoy &a

23/01/2017 10:33:57 AM | Posted in Broking Firm Views - Long Term Report read full news