Buy Jyothy Laboratories Ltd For Target Rs.390.00 - Sharekhan

Key points

Volumes remain on a positive trajectory; OPM contracts by 60BPS due to higher input costs:

For Q3FY2017, Jyothy Laboratories’ (JLL) revenue (ex-excise duty) grew by ~3.3% YoY to Rs383.90 crore, driven by single-digit volume growth of 3.6% YoY. Demonetisation had an adverse impact on volume gr

21/01/2017 12:09:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy YES Bank Ltd For Target Rs.1,595.00 – Prabhudas

Yes Bank’s Q3FY17 performance continue to be on a strong foot on strong loan growth, stable NIMs and lower credit cost leading to strong PAT growth of +30% YoY. CASA franchise continued to improve partly helped by demonetisation and expect some CASA to remain in the bank. Valuations at 2.8x FY18E & 2.3x FY19E P/ABV looks attractive with significantly better growth & better asset q

21/01/2017 12:01:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Axis Bank Ltd For Target Rs.474.00 - Reliance Sec

On account of sharp 432.7% yoy (4.8% qoq) surge in provisioning expenses, Axis Bank continued to report below par performance in 3QFY17 as well. Upsurge in provisioning expenses led to earnings de-growth of 73.4% yoy. Higher provisioning was primarily attributable to Management’s decision to increase provision coverage ratio to 64% in 3QFY17 compared to 60% in 2QFY17 along with elevated f

21/01/2017 11:57:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Petronet LNG Ltd - Sharekhan

Key points Š

PLNG’s 5mmt Dahej expansion commissioned; de-risked business model:

Petronet LNG (PLNG) has expanded its Dahej terminal nameplate capacity to 15mmt (from 10mmt) in August 2016. By March 2017, the full capacity would come under the use or pay (UoP) system as the expanded capacity has a 6-m

21/01/2017 11:47:53 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Federal Bank Ltd For Target Rs.86.00 – Prabhudas

Federal Bank reported another quarter of strong performance with (i) NII growth of +30% YoY on better loan growth of 32% (partly due to acquired book in Q2FY17) (ii) sustained fees growth and (iii) comparatively lower credit cost sequentially on lower slippages. Asset quality trends were steady with slippage run‐rate coming off across segments except for retail which saw slight increase. We i

21/01/2017 11:36:27 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Axis Bank Ltd For Target Rs.560.00 - Sharekhan

Key points

* Asset quality decline impacts profits:

Axis Bank posted an unimpressive Q3FY17 results owing to asset quality issues and decelerated business growth impaired by demonetization. The net interest income grew by just 4.1% YoY due to tepid loan book growth of 10.1% YoY and high provisions. Net inter

21/01/2017 11:26:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Mindtree Ltd For Target Rs.490.00 - Reliance Sec

Mindtree has delivered a largely in-line performance in 3QFY17, with revenue declining by 0.4% qoq to US$192.2mn, while EBIT margin and PAT (Rs1bn) rising by 95bps qoq 8.8% qoq, respectively. The mid-sized IT firm has been able to arrest the revenue decline seen in 2QFY17. Notably, its order book metrics remained highly impressive as well, with highest-ever order wins of US$314m (up 71% qoq &am

21/01/2017 11:07:53 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold LIC Housing Finance Ltd For Target Rs.530.00 - RCML

Non-core business drives growth

LICHFL’s disbursements grew 15% YoY in Q3FY17 largely due to strong growth in developer loans, while the individual loan segment slowed down. Individual loans excluding LAP grew only 9%YoY. NIM increased by 7bps QoQ to 2.75% on account of a lower cost of funds. The incremental cost of borrowings in Q3 was less than

21/01/2017 11:02:56 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Havells India Ltd For Target Rs.325.00 - RCML

Dealer sops aid topline, but depress margins – SELL

HAVL posted an above-expected Q3 (revenue/adj. PAT: Rs 15bn/Rs 1.3bn; +13%/+12% YoY) as the company introduced pro-dealer measures to beat the demonetisation-led slowdown. However, these measures along with an adverse product mix depressed margins to 12.7%. We cut our FY17E/FY18E EPS by 2%/6% t

20/01/2017 11:44:39 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Gujarat State Petronet Ltd - Sharekhan

Key points ŠŠ

PNGRB issued a public consultation paper for views of stakeholders on GSPL’s tariff application – the wait for a long pending tariff revision may end soon:

PNGRB (Petroleum and Natural Gas Regulatory Board) has issued a public consultation paper (PCP) for stakeholder’s comme

20/01/2017 11:39:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Mindtree Ltd For Target Rs.560.00 - Emkay

On the mend

* Mindtree reported a tepid revenue performance in line with seasonal trends and Management’s indication of flat revenue growth. However, EBIT margins improved by ~100bp sequentially aided largely by cost controls, which percolated to a net profit beat.

* Revenue performance at top 5 clients showed some initial signs of reco

20/01/2017 11:34:39 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Yes Bank Ltd For Target Rs.1,520.00 - Sharekhan

Key points

Strong NII, declining COFs help profits:

Yes Bank posted strong results for Q3FY2017 with a strong net interest income (NII) growth as well maintaining the asset quality. The NII for Q3FY2017 increased by 30.3% year on year (YoY) to Rs1,507.5 crore on the back of strong advances and growth in the c

20/01/2017 11:29:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce KPIT Technologies Ltd For Target Rs.125.00 - Reliance Sec

After a fairly impressive performance in 2QFY17, with healthy revenue growth and slight expansion in margin, KPIT Technologies’ adjusted USD revenue came in 1% below our estimate, while margin declined by 82bps qoq (142bps below our estimate) and PAT (adjusted for extraordinary items and taxes) dipped by ~5% qoq (13% below our estimate) in 3QFY17. Further to our anticipation in 2QFY17 res

20/01/2017 11:25:21 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell KPIT Technologies Ltd For Target Rs.128.00 - Kotak Sec

KPIT reported revenues below our estimates with decline of 0.4% in dollar terms at USD122.88mn (v/s estimate of USD 125mn). Revenues declined on the back of divestment of Safety Product Business(about $0.5mn ) and due to loss of billing days.The degrowth has been across verticals except Manufacturing. Digital Transformation SBU reported robust growth sequentially and contributed about 11.4% of

20/01/2017 11:18:24 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Havells India Ltd For Target Rs.370.00 - Emkay

Demand continues to be in limbo; Retain HOLD

* Healthy quarter - Revenue grew 13.2% yoy to Rs15.1bn; the EBITDA at Rs 1.9bn grew 4% yoy; while APAT grew 11.7% yoy to Rs1.3bn, aided by higher other income

* Company gained market share across categories, helped by drastic paring down in the presence of unorganized players post demonetization. C

20/01/2017 11:12:00 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cholamandalam Investment & Finance Company Ltd For Target Rs.1,230.00 - Angel Broking

Cholamandalam Investment & Finance Company (CIFC), part of the Murugappa Group is one of the dominant players in the Vehicle Finance business with a market share of ~9%. Focused business model, strong management and high corporate governance standards are the key differentiating parameters of CIFC.

 

Balanced portfolio, without much concentration risk

20/01/2017 11:03:52 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan Media Ventures Ltd For Target Rs.355.00 - Emkay

Growth to get reinstated in FY18E, Retain BUY

* The reported operating performance for the quarter is not comparable with preceding quarters as the company has accounted for adjustments related to carve-out of HT Digital Streams Ltd (HTDSL), attributable for 9MFY17, in Q3FY17.

* Advertisement revenue decline was on expected lines with higher

19/01/2017 12:08:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Havells India Ltd - Sharekhan

Key points Š

Cable and consumer durable segment bucks demonetisation event:

For Q3FY2017 Havells India (Havells) reported a double-digit top line growth of 13% year on year (YoY) to Rs1,506 crore due to a strong performance of the cable and consumer electrical segments (both grew by 18% YoY) during the quart

19/01/2017 11:55:08 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Technologies Ltd For Target Rs.520.00 - Prabhudas

NIIT Technologies’ (NIIT Tech’s) Q3FY17 results were marginally above our expectations. USD revenues, Constant currency growth and EBITDA margin beat our estimates. Order book executable over the next twelve months came at US$311m, up 0.6% QoQ and 3.3% YoY. NIIT Tech has recently announced two senior hires to rampup the management team (Mr Joel Lindsay to Head the Digital Business a

19/01/2017 11:49:31 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Consultancy Services Ltd For Target Rs.2,620.00 - Angel Broking

TCS posted numbers slightly better than expected for 3QFY2017 on the sales and EBIT front. The company reported a 0.3% sequential growth in USD revenues to US$4,387mn v/s US$4,383mn expected. On Constant Currency (CC) terms, the growth came in at 2.0%. Volume growth during the quarter came in at 1.0% qoq. On EBIT front, the company recorded an EBIT of 26.0% v/s 25.5% expected, flat qoq. Consequ

19/01/2017 11:40:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Technologies Ltd For Target Rs.482.00 - Kotak Sec

NIITT reported muted CC revenue growth of 0.6%, which was in line with estimates. Revenues were flattish due to the expected scale-down in the T&T client and headwinds in the UK insurance business due to Brexit. EBIDTA rose by 23bps to an above-expected margins level of 16.75%, because of higher off-shore content and GIS revenues. Order booking at $101mn were lower QoQ as 2Q order booking i

19/01/2017 11:34:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sterlite Technologies Ltd For Target Rs.126.00 - Emkay

3Q upbeat; Encouraging OF sales

Result highlights 

* SOTL reported strong 3Q net profit of Rs500mn, up 100% QoQ and 63% YoY. This is 11% above our estimate. We maintain BUY with TP of Rs126. 

* We were positively surprised by Optic Fiber (OF) sales volume of 6.8m KM in 3Q, up 11% QoQ and 26% YoY. T

19/01/2017 11:31:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate LIC Housing Finance Ltd For Target Rs.645.00 - Prabhudas

LICHF net earnings of Rs4.99bn were in‐line with our estimates with strong NII growth of 22.6% YoY at Rs9.15bn (PLe: Rs8.82bn) but was offset by lower fee income (down 45% QoQ). Overall loan book grew at 15.3% YoY, but growth was mainly led by strong growth in developer book (45% YoY) and LAP book (87% YoY). Core retail book growth continue to be slow at 9.4% YoY. Competitive landscape contin

19/01/2017 11:23:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate NIIT Technologies Ltd For Target Rs.560.00 - Emkay

Inline revenues; operating margins surprise positively

* NIIT Tech reported largely inline revenues for Dec’16 quarter however operating margins surprised positively. EBITDA margins at 16.7% improved 20bps QoQ V/s our estimate of 30bps QoQ decline

* Order intake at US$101mn was decent. Company continues to improve working capital manage

19/01/2017 11:17:23 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy LIC Housing Finance Ltd For Target Rs.630.00 - Angel Broking

LICHF came out with a positive set of results for 3QFY2017 with the PAT growing by 19.2% yoy. While we were expecting moderation in business growth, due to demonetization, better result was possible backed by growth in non-retail segment.

 

Sluggish growth in retail; non-retail portfolio gained momentum:

LICHF’s total loa

18/01/2017 12:02:44 PM | Posted in Broking Firm Views - Long Term Report read full news