Buy Crompton Greaves Consumer Electricals Ltd For Target Rs.240.00 - Motilal Oswal

Adverse revenue mix, channel destocking impact performance

* Results below expectations, impacted by GST-led channel destocking: CG Consumer Electricals (CGCEL) reported 1QFY18 sales of INR10.6b (-3.7% YoY), below our estimate. Sales were impacted, as dealers resorted to channel destocking in May and June on transition to GST (impact

23/08/2017 2:14:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Hexaware Technologies Ltd For Target Rs.240.00 - Emkay

Stellar show marred by upcoming challenges at top clients

* Hexaware reported a strong revenue performance in Jun’17 quarter with a 5.5% QoQ US$ revenue growth, significantly ahead of Street/Emkay estimates.

* EBIT margins came in at 14.6%, down by 60bps QoQ albeit still a tad better than estimates. Net profits at Rs1.2bn were supported

23/08/2017 2:06:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Sun Pharmaceuticals Ltd For Target Rs.472.00 - Equirus Sec

Sun Pharma’s 1QFY18 results came below EE across all fronts largely owing to price erosion in the US market, GST led destocking in domestic market, Modafinil Settlement (onetime cost of Rs. 9.5bn). We expect business to remain under pressure owing to continuing pricing pressure in the US market, new competition in gDoxil, further expected competition in gGleevec as well as guided cut in t

23/08/2017 2:01:47 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cadila Healthcare Ltd For Target Rs.554.00 - Reliance Sec

Background & Business

Cadila Healthcare (CDH) is a well-diversified pharmaceutical company with presence across over 100 countries. Domestic business contributes >34% to its total sales. CDH’s US business contributes major chunk to its total revenues, as it is among the Top-15 generic companies in the US in terms of prescriptions.

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23/08/2017 1:54:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ramco Cements Ltd For Target Rs.750.00 - Sharekhan

Key points

* Challenges in the southern region with erosion of low fuel cost advantage affects operational performance:

The Ramco cements posted 6.7% YoY growth in net sales (net of excise duty) to Rs1,029 crore during Q1FY2018 on account of a 4.1% YoY growth in cement volume while the blended realization was flat Yo

23/08/2017 1:44:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan Petroleum Corporation Ltd For Target Rs.510.00 - Motilal Oswal

Adj. EBITDA exceeds estimate led by strong core GRM of USD8.8/bbl

HPCL’s EBITDA, excluding INR16b of inventory losses, increased 49% YoY (+14% QoQ) to INR32b, significantly ahead of our estimate of INR20b, primarily due to higher-thanexpected core GRM. Inventory loss included INR6.3b in refining and INR9.6b in marketing. Reported PAT of INR9.3b

22/08/2017 3:14:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NRB Bearing Ltd For Target Rs.139.00 - Religare Sec

A temporary blip; future remains bright

NRB Bearings' Revenue increased by 2.9%; however Net profit declined 3.2% on YoY basis. NRB Bearings derives 65% of its total revenue from domestic OEMs and was impacted by slowdown in the domestic CV industry and replacement market sales. However, it reported positive growth in PVs, tractors and two wheelers

22/08/2017 3:10:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cholamandalam Investment and Finance Ltd For Target Rs.1,400.00 - Motilal Oswal

Strong quarter; HE getting back on track

* Cholamandalam Investment and Finance’s (CIFC) 1QFY18 PAT grew 25% YoY to INR2.07b, beating our estimate by 5%, largely driven by stronger-thanexpected margins (7.9% v/s 7.3% YoY).

* The strong margins performance was driven by lower CoF, higher share of securitized assets, increased share of VF

22/08/2017 3:05:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate UPL Ltd For Target Rs.944.00 - Emkay

Steady quarter; Maintain Accumulate

* UPL posted stable volume growth of 10% yoy during Q1FY18 driven by steady performance across ROW and North America. However, realization declined by 1% and adverse currency movement of 3% resulted in 6% growth in net revenues to Rs38.5bn

* Gross margins improved 115 bps yoy to 57% while EBITDA margins sto

22/08/2017 3:01:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Fiem Industries Ltd For Target Rs.1,254.00 - Kotak Sec

Strong two wheeler dispatches by key customers is expected to improve FIEM’s performance going ahead. Post slowdown in 2HFY17, two wheeler demand has made a strong comeback with volume growth at ~9% (FY18 YTD) on a relatively higher base. FIEM derives 89% of its revenues from the two wheeler segment and demand recovery in this segment is positive for the company. FIEM also benefits from f

22/08/2017 2:56:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy TD Power Systems Ltd For Target Rs.260.00 - Equirus Sec

TD Power Systems’ (TDPS) 1QFY18 performance was hit by lower dispatches on account of GST and currency volatility. The domestic market is seeing high pricing competition. Management highlighted a high-margin € 5-6mn renewable opportunity in Turkey. TDPS is also positive on delivery spill overs and a pick-up in 2H18E, leading to ~Rs 4bn manufacturing revenues in FY18E. We see a favour

22/08/2017 2:52:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy India Cement Ltd For Target Rs.211.00 - Reliance Sec

Background & Business

India Cements (ICL), established in 1946, is one of the leading cement manufacturing companies in India and also a market leader in South India. Currently, it has a total installed capacity of 15.6mnT spread over Southern, Northern and Western states.

 

Investment Rationale

22/08/2017 2:47:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jyothy Laboratories Ltd For Target Rs.435.00 - Sharekhan

Key points

* Q1FY2018 performance marred by GST led de-stocking:

Like other FMCG companies, Jyothy Laboratories Ltd (JLL) performance for Q1FY2018 was marred by GST led de-stocking undertaken by various trade channels in the month of June 2017. The consolidated revenues declined by 14.8% to Rs385.8 crore wit

22/08/2017 2:40:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Century Plyboards Ltd For Target Rs.307.00 - Religare Sec

Margins miss; outlook intact

Century Plyboards (I) Ltd.'s (CPIL) Q1FY18 result was a mixed bag. The company reported 8.7% YoY increase in Net sales while EBITDA and PAT were down by 19.7% and 18.5% respectively over Q1FY17. Despite weak Q1FY18 results, the management has guided for healthy volume growth led by capacity expansion and GST implementat

21/08/2017 3:45:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Glenmark Pharmaceuticals Ltd For Target Rs.775.00 - Motilal Oswal

No impact of GST in 1Q; Zetia boosts US sales

* Net sales grew 22% YoY (but declined 4% QoQ) to INR23.2b (v/s our estimate of INR23.5b). EBITDA margin expanded >600bp YoY (and QoQ) to 23.3% on strong ramp-up in US sales (up 55% YoY and 9% QoQ), strong growth in India despite GST impact (up ~15% YoY), lower R&D cost at INR2.55b (down ~INR1b QoQ),

21/08/2017 3:34:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Torrent Pharmaceuticals Ltd For Target Rs.1,075.00 - Emkay

So far so good but revenue growth a challenge, Maintain SELL

* Overall reported Q1FY18 numbers had no major negatives, with some surprises along the way including an India business that didn’t seem impacted by GST led destocking, much higher other income and a sequential jump in gross margins by 500bps.

* Company’s India business

21/08/2017 3:28:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sadbhav Infrastructure Projects Ltd For Target Rs.137.00 - Equirus Sec

Sadbhav Infra (SIPL) reported in line toll revenues but lower EBITDA due to Ind AS adjustments while quarterly cash generation was in line with EE. We expect the monetization of its stable operational assets to be concluded by Dec 17. With positive traffic growth in August, we expect steady growth to return over next 2 quarters. The company will continue its focus on more HAM projects and reduc

21/08/2017 3:21:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kalpataru Power Transmission Ltd For Target Rs.397.00 - Reliance Sec

Earnings Continue to Remain Robust on High Order Book

In line with our estimate, standalone revenue of Kalpataru Power Transmission (KPTL) grew by 1.6% YoY to Rs12.0bn in 1QFY18 owing to muted growth in T&D business. Revenues from T&D declined by 3% YoY on back of deferrals due to GST. Notably, revenue from Railways and Piping business grew by

21/08/2017 3:11:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Emami Ltd For Target Rs.1,245.00 - Sharekhan

Key points

* Q1 performance affected by down-stocking in domestic market and inventory correction in international market:

In Q1FY2018, Emami’s revenue declined by 16.1% YoY to Rs.541.1 crore, significantly impacted by down-stocking in domestic business and a 19% decline in the international business rev

21/08/2017 3:04:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Tech Mahindra Ltd For Target Rs.420.00 - Emkay

Recovery will be gradual

* Tech Mahindra reported decline in organic revenues for Q1FY18 but remains confident on improved business traction both on Enterprise as well as Telecom business (ex LCC). LCC business would bottom in Q2FY18 and should then stabilize.

* Commentary is confident on revenue traction driven by strong TCV signings of US$

19/08/2017 12:03:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ashoka Buildcon Ltd For Target Rs.276.00 - Equirus Sec

Ashoka Buildcon’s (ASBL) saw strong execution ramp-up during 1Q18. Its current order book stands at Rs 64bn and order book/TTM ratio at 2.8x, giving us confidence on the company achieving 20% revenue CAGR over FY17-FY20E. Toll collections grew 14% yoy with most projects seeing decent traffic growth. We expect new HAM project wins, sale of SBI Macquarie stake and steady EPC performance to

19/08/2017 11:58:07 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold JSW Energy Ltd For Target Rs.69.00 - Reliance Sec

Foray into Electric Vehicle Manufacturing Biz – A Big Challenge

JSW Energy (JSWEL) has reported a subdued performance in 1QFY18 largely due to lower generation from thermal plants and lower merchant realisation. Its revenue dipped by 8.9% YoY to Rs22.3 bn owing to 4.4% YoY decline in generation and lower average realisation of Rs3.5/unit vs. Rs3.

19/08/2017 11:44:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive Sundram Fasteners Ltd - Sharekhan

Key points

* Healthy operating performance and lower interest cost led to robust PAT growth, results in-line with expectations:

Sundram Fasteners Limited (SFL) registered healthy double-digit topline growth (11% YoY) for Q1FY2018, driven by improved demand scenario and new product additions. The company&rsquo

19/08/2017 11:39:47 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Hero MotoCorp Ltd For Target Rs.3,727.00 - IIFL

Better than forecasted OPM offset by higher tax rate

Hero Motocorp (HMCL) revenues were below estimates,OPM was better than forecasts but PAT was in line with estimates.HMCL reported a revenue growth of 7.7%,which was lower than forecasts as realizations came in weaker than expectations owing to Rs500mn impact of dealer compenation for GST. OPM at 16.3

19/08/2017 11:35:47 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Mangalam Cement Ltd For Target Rs.355.00 - Emkay

Operating performance beats estimates; Maintain HOLD

* Mangalam Cement’s (MGC) Q1FY18 results surprised positively on operational parameters, with EBITDA at Rs405mn coming in against estimate of Rs295mn, led by higher realization and inclusion of other operating income in revenue.

* Sales volume was up 3.3% yoy at 0.63mt. Reported reali

19/08/2017 11:02:45 AM | Posted in Broking Firm Views - Long Term Report read full news