Hold Asian Paints Ltd For Target Rs.1,300.00 - Emkay

* Strong quarter - Consolidated revenues were marginally ahead of our estimates and grew by 13.3% yoy to Rs42.6bn, EBITDA increased by 12.4% yoy to Rs8bn while APAT at Rs5.26bn is up by 6.3% yoy

*  Domestic decorative paints volume grew by c.8% ahead of our estimate of 6%, boosted by early festive season sales and good offtake in the month of September. July and August were slugg

26/10/2017 1:16:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Allcargo LogisticsLtd For Target Rs.213.00 - Motilal Oswal

Contract logistics, land monetization to add value

Management initiatives to improve return ratios

* We expect AGLL to create value in the medium term from strong growth in contract logistics through its subsidiary, ACCI. Monetization of land parcels by roping in strategic partners would add further value to

26/10/2017 1:11:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Ambuja Cements Ltd For Target Rs.235.00 - Emkay

* Ambuja Cements’ (ACEM) result was below estimates with EBITDA at Rs3.1bn (adjusted for non-recognition of GST incentives and reversal of DMF provisions) against estimated Rs3.9bn and EBITDA/tn at Rs617 against estimated Rs759.

* Sales volume was up 10.1% yoy to 5.03mt (vs. estimated 4.94mt) supported by low base of last year (volume was down 5.6% in Q3CY16). Realization was up

25/10/2017 3:05:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Hindustan Zinc Ltd For Target Rs.322.00 - Motilal Oswal

Zinc price outlook bullish, but priced in; Maintain Neutral

Strong performance as expected

* HZL’s 2QFY17 EBITDA grew 46% YoY/27% QoQ to INR30.2b (in-line).

* Mine production was contained (-6% QoQ to 219kt) to draw down inventory. Sales volumes grew 2% QoQ for zinc (to 193kt), 18% QoQ for le

25/10/2017 2:59:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Radico Khaitan Ltd For Target Rs.296.00 - Emkay

Excellent 2Q results, 3Q to be even better

*  Maintain BUY with new TP of Rs296. RDCK delivered on all fronts with sales volume growth, margin expansion and FCF generation.

*  Margins expansion continued thanks to improving product mix and stable raw material prices. Low interest cost contributed to the record quarterly profit of R

25/10/2017 2:55:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Havells India Ltd For Target Rs.442.00 - Kotak Sec

HIL reported Q2FY18 revenue in line with our estimate, however higher margins in Lloyd and cable division led to PAT higher than our estimate. Other divisions (comparable business, ex-Lloyd) reported muted YY revenue growth affected by lower primary sales due to GST implementation.

We tweak FY18/FY19 earnings estimate to factor in sluggish sales in key segments due to GST transition.

25/10/2017 2:45:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HDFC Bank Ltd For Target Rs.2,136.00 - Prabhudas Lilladher

HDFCB continued to deliver strong operational performance led by strong NII & other income. The blip on the strong performance was from by elevated credit cost which was done on one project loan exposure as contingent provision (Rs4.0bn + Rs3.0bn from floating). Loan growth continued to be decent and led by retail helping maintain overall margin trend. We continue to remain positive given t

25/10/2017 2:41:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tata Sponge Iron Ltd For Target Rs.1020.00 - Kotak Sec

Tata Sponge’s net sales during the quarter grew 20.5% YoY to Rs1,672 mn (down 4.5% QoQ), the sequential decline in revenue was on account of lower volume due to a maintenance shutdown in 2QFY18. EBITDA during the quarter declined ~11% QoQ to Rs344 mn, with an EBITDA margin of 20.6% (est of 19%). The company reported PAT of Rs276mn, lower than our estimates. Considering TTSP’s strong

25/10/2017 2:35:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Asian Paints Ltd For Target Rs.1,239.00 - Prabhudas Lilladher

APNT reported high single‐digit volume growth in domestic decorative business in Q2FY18 as post GST recovery and festival demand was visible only from September 2017. Gross margins in Q2 declined by 310bps YoY due to carry‐over input cost inventory till August end, despite some softening in Q2. We expect H2FY18 growth to accelerate, given low base due to demonetisation in Q3FY17 and expecte

25/10/2017 1:32:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Hindustan Zinc Ltd For Target Rs.369.00 - Equirus Sec

Hindustan Zinc (HZ) reported an in-line 2Q with 46% yoy growth in EBITDA driven by volume as well as pricing growth. As highlighted in our earlier notes, zinc remains the strongest among base metals due to shortage of concentrate in the market, and HZ is minting benefits of the same. We raise our FY18/FY19E zinc pricing estimates by 11%/14% to US$ 2,933/3,012 per tonne and lead by 5%/4% to US$

25/10/2017 1:06:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell ABB India Ltd. For Target Rs.1,235.00 - Motilal Oswal

* ABB has received orders to supply solar inverters to 750 railway stations in North India.

* During the quarter, we expect ABB to register 12% YoY growth in revenue, led by robust performance from the electrification products segment (+32% YoY growth).

* We expect 150bp gross margin improvement on YoY basis to 35.8%, led by efficiencies generated on account of supply chain

24/10/2017 3:48:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Havells India Ltd For Target Rs.570.00 - Motilal Oswal

Operating performance exceeds expectations

* Operating performance impressive led by better-than-estimated margins: Revenue grew 22.4% YoY to INR17.8b (est. of INR19b) in 2QFY18. However, operating profit of INR2.6b (+26.3% YoY) was ahead of our estimate of INR2.2b, led by price hikes in the cables & wires segment,

24/10/2017 3:44:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold HT Media Ltd For Target Rs.107.00 - Emkay

* Curtailed Advertising spend and continued sluggishness in English Print segment impacted the Print Ad revenue. Both Hindi and English Ad revenue declined by 8% yoy each. Radio revenue grew by 18% yoy, driven by new launches.

* Sharp fall in expenses was driven by continued efforts on cost rationalization and discontinuation of non-performing editions, leading to robust EBITDA growth

24/10/2017 3:37:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Indiabulls Housing Finance Ltd For Target Rs.1,550.00 - Motilal Oswal

Strong growth, stable performance overall

* Indiabulls Housing Finance's (IHFL) PAT grew 26% YoY to INR8.6b (4% above our estimate). Core operating performance was robust, with strong AUM growth (+33% YoY) and stable spreads. However, other income (income from the liquid investment book) remains subdued due to lower incremental yields. Note that I

24/10/2017 3:33:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Auto Ltd For Target Rs.3,631.00 - Kotak Sec

BAL’s 2QFY18 results were operationally ahead of our expectation. Revenue for the quarter grew by 9% YoY, EBITDA margin declined YoY but improved QoQ and net profit was flat YoY. As against our estimates, EBITDA was 7% higher. Over the past many years, BAL has faced multiple volume growth headwind – both in the domestic and export market. However, we believe that the weak volume per

24/10/2017 3:21:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan Media Ventures Ltd For Target Rs.317.00 - Emkay

* GST led transition affected Advertising growth while competitive intensity in core markets dented Circulation revenue growth. EBITDA decline was restricted to 10% yoy owing to strict cost-control initiatives. Total expenditure was 10% lower than our estimate.

* Ad revenue decline of 8% yoy was led by 20% yoy drop in UP on account of a higher base. Bihar and Jharkhand recorded margin

24/10/2017 3:17:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Blue Dart Express For Target Rs.4860.00 - Kotak Sec

Mid -single digit volume growth YoY despite increasing competition, weakness in the economy post demonetisation and implementation of GST, but strong growth in the e-commerce segment led to revenue of Rs 7.03 bn (+6% YoY) in Q2FY18 for BDE. Cost control measures within the company post implementation of strategy of Mckinsey led to strong EBIDTA of Rs 767 mn translating into EBIDTA margin of 10.

24/10/2017 3:08:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hindustan Zinc Ltd For Target Rs.370.00 - Prabhudas Lilladher

Hindustan Zinc (HZ) reported Q2FY18 earnings tad below our expectation due to lower than expected zinc volumes. Our earnings estimates remain unchanged for FY18E/FY19E on the back of firm outlook on Zinc prices and improved visibility on volumes from expansion. Driven by strong outlook on Zinc and quality assets, we maintain “Accumulate” with TP of Rs370 at an EV/EBITDA of 10x FY19E

24/10/2017 2:58:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold DCB Bank Ltd For Target Rs.200.00 - Arihant Capital

DCB Bank Ltd. reported Strong growth This Quarter.Operating Profit Came In at Rs.124 Cr. For Q2Fy18 As Against Rs.101 Cr. in Q1 FY17 Registering Robust Growth Of 23%. Net Profit Increased To Rs.59 Cr Up By 21% YoY and De-grew By 10% Sequentially.

 

Deposits:
Deposits For The Bank Grew At 16% YoY And 7% Sequentially. The CASA Porti

23/10/2017 1:31:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Havells India Ltd For Target Rs.460.00 - Motilal Oswal

* Standalone revenue is expected to register growth of 31% YoY, driven by revenue contribution from recently acquired Lloyd (INR3.2b). We expect the cables segment to register 5% YoY growth, led by an improvement in the prices of copper. Electrical consumer durables, lighting and switch gears sales would be impacted, as sales are being booked at net level post GST.

* We expect operati

23/10/2017 1:07:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Gruh Finance Ltd For Target Rs.500.00 - Motilal Oswal

Impressive all-round performance

* Gruh Finance (GRHF) reported PAT of INR778m (4% above our estimate) for 2QFY18, largely driven by lower-than-expected operating expenses. Opex growth slowed down to 11% YoY, resulting in 300bp YoY reduction in C/I ratio to 17.6%. In FY17, the company had incurred significant lagged expenses of branches opened in FY16

23/10/2017 1:03:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Ultratech Cement Ltd For Target Rs.4,091.00 - Prabhudas Lilladher

Ultratech (UTCEM) reported Q2FY18 earnings ahead of our expectation. The key surprise came on account of lower other expenses. Given the lumpiness of cost components and stabilisation of acquired assets underway, we believe that current quarter don’t reflect the steady run‐rate of other expenses and hence, we keep our earnings estimates unchanged for FY18E/FY19E. Given the rich valuatio

23/10/2017 12:52:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dewan Housing Finance Corporation Ltd For Target Rs.690.00 - Motilal Oswal

Growth surprises positively; re-rating to continue

* Dewan Housing Finance’s (DEWH) 2QFY18 PAT grew 26% YoY to INR2.9b. The quarter was characterized by sturdy AUM growth, healthy decline in C/I ratio, continued decline in cost of funds, and mild expansion in return ratios.

* AUM grew 25% YoY to INR941b, largely driven by 50% YoY disbu

23/10/2017 12:48:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate NIIT Technologies Ltd For Target Rs.670.00 - Prabhudas Lilladher

NIIT Tech’s Q2FY18 results were steady with revenue and PAT ahead of our estimates. EBIDTA margin was modestly below our estimates. Revenues at USD112.8mn were up 5.3% QoQ above our estimates (USD111mn). Organic revenue growth for the quarter was 4.4% and rest owing to full impact of RuleTek acquisition. We note that 2QFY18 is the second consecutive quarter of revenue beat which is key po

23/10/2017 12:41:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Auto Ltd For Target Rs.3,753.00 - Motilal Oswal

Better mix, lower staff cost drive above-estimate operating performance

* Favorable product mix drives realization: Net sales rose 8.7% YoY (+20.9% QoQ) to INR65.8b (in-line), led by volume growth of 3.8% YoY (+20.6% QoQ). Realization improved 4.7% YoY (flat QoQ) due to a favorable mix (higher share of 3W).

 

*

23/10/2017 12:36:58 PM | Posted in Broking Firm Views - Long Term Report read full news