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
Hold Thermax Ltd For Target Rs.950.00 - Sharekhan

Key points

Pricing pressure and one-time cost impacted margins despite cost-control measures:

During Q1FY2018, Thermax’s (TMX) topline declined by 10% YoY to Rs.713 crore due to GST implementation (Rs.80 crore) and malware attack on the logistics and shipping company (Rs.35 crore). The company’s g

24/08/2017 2:56:51 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Voltas Ltd For Target Rs.430.00 - Motilal Oswal

In-line results, UCP sales impacted by GST

Results in line with estimate:

1QFY18 revenue grew 5% YoY to INR19.5b (est. of INR19.6b). EBIDTA rose 6% YoY to INR2.1b (est. of INR2.0b), with operating margin stable at 10.9% YoY (est. of 10.5%). Adj. net profit rose 17% YoY to INR1.9b (est. of INR1.7b), led by hi

24/08/2017 2:37:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Britannia Industries Ltd ForTarget Rs.4,275.00 - Emkay

The bite gets crunchier; Upgrade to Accumulate

*  Revenue at Rs 22.6bn, +5.7% yoy; EBITDA at Rs 3.3bn, up 3.1% yoy; and APAT declined 1.3% yoy to Rs 2.2bn

*  Domestic business gross revenue grew by 6.8% yoy. Subsidiaries performance was subdued due to decline in international business. Bread grew in double digit and in diary focus i

24/08/2017 2:31:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Avanti Feeds Ltd For Target Rs.2,240.00 - Religare Sec

Exceptional Q1 performance; largely to continue

Avanti Feeds reported Q1FY18 result much ahead of expectations. Revenue and Net profit surged by 37.8% and 203.8% respectively on YoY basis led by strong demand for shrimp feeds and processed shrimps. Avanti has been our preferred pick in the aquaculture industry. Encouraged by the company’s Q1 perf

24/08/2017 2:25:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cummins India Ltd For Target Rs.1170.00 - Motilal Oswal

Results in-line; domestic execution drives growth

Operating performance in-line:

Cummins India’s (KKC) 4QFY17 revenue grew 7% YoY to INR13.4b (our estimate: INR13.2b). Gross margin contracted 130bp YoY to 34.9%. EBITDA declined 5% YoY to INR1.95b (our estimate: INR1.95b); EBITDA margin contracted 183bp Y

24/08/2017 2:17:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Gujarat Industries Power Company Ltd For Target Rs.132.00 - Emkay

Result broadly in line; Downgrade to HOLD on fair valuation

*  Gujarat Industries Power Co. (GIPCL) reported Q1FY18 earnings in line with our estimate. Generation was down 10.7% yoy and fuel cost declined 24.5% yoy due to non-operation of Vadodara II unit. Consequently, the PAT increased by 14.5% yoy to Rs629mn despite a fall in generation.

24/08/2017 2:08:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Dabur India Ltd For Target Rs.315.00 - Motilal Oswal

In-line revenue performance; International remains under pressure

* Dabur’s (DABUR) 1QFY18 consol. sales declined 8.3% YoY to INR17.9b (est. of - 6.0%). EBITDA fell by 11.4% YoY to INR 3.1b (est. -13.9%) and adj. PAT by 4.8% YoY to INR2.8b (est. -12.3%).

* Domestic FMCG business’ primary sales declined 5%

23/08/2017 2:37:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Srikalahasthi Pipes Ltd For Target Rs.416.00 - Religare Sec

Capacity expansion, demand uptick to drive growth

Srikalahasthi Pipes Ltd (SPL) reported in-line numbers on the profit front with 14.7% & 15.2% YoY de-growth in EBITDA and PAT. However, revenue growth of 55.1% YoY was impressive and significantly above our estimates. Going forward, driven by capacity expansion and demand revival, we expect SPL to d

23/08/2017 2:30:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Cipla Ltd For Target Rs.458.00 - Angel Broking

Cipla posted poor set of numbers for 1QFY2018. Sales came in at `3,432cr (`3,789cr expected) v/s. `3,566cr in 1QFY2017, a yoy de-growth of 3.5%, mainly driven by the dip in Indian formulation sales. Indian formulation sales registered (`1,271cr) a yoy dip of 12.9%, mainly on the back of GST implementation. On operating front, the EBITDA margins came in at 16.1% (15.5% expected) v/s. 14.8% in 1Q

23/08/2017 2:19:58 PM | Posted in Broking Firm Views - Long Term Report read full news