Update On Repco Home Finance Ltd - Sharekhan

Key points

* Operational performance below expectation:

For Q1FY2018, Repco Home Finance (RHF) posted net interest income (NII) growth of 14.2% YoY, slightly below our expectation on account of sequential contraction in net interest margin (NIM, down 40BPS QoQ to 4.30%) coupled with slower loan book growth.

19/08/2017 10:55:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Andhra Bank Ltd For Target Rs.53.00 - SPA Sec

Andhra Bank reported lower NIMs at 3.12% (47bps q-o-q) but better operational performance (cost to income ratio of 38% (100bps q-o-q)) resulted in 5% q-o-q decline in PPOP. Other Income grew by 16% q-o-q to INR 7.5bn and GNPA stood at 13.33% (108bps q-o-q). Credit growth remained muted at 1% q-o-q and PAT declined by 15% q-o-q to INR 404mn. We recommend a HOLD on the stock with a TP of INR 53 i

19/08/2017 10:50:50 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra and Mahindra Ltd For Target Rs.1,618.00 - Motilal Oswal

Operating performance in line post adjusting impact of GST

* 1QFY18 volumes grew 2.7% YoY to 201.5k units, driven by 13% growth in Tractors, partially offset by ~2% decline in UVs. Net realizations stood at ~INR550.6k (est. of ~INR541k). Net revenues grew 5% YoY to ~INR110.9b (est. of ~INR109.1b).

* Reported EBITDA margin shrunk 110bp YoY (+

19/08/2017 10:46:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy The Byke Hospitality Ltd For Target Rs.242.00 - Religare Sec

Accounting changes mar Q1 performance...

The Byke Hospitality reported a subdued performance as Net profit fell 1.9% on YoY basis. Net revenue came at Rs. 37.1 cr against Rs. 61.9 cr in Q1FY17 due to change in accounting method for room charting segment. However, we have a positive view on the company given bright prospects of domestic tourism industry

19/08/2017 10:39:23 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Biocon Ltd For Target Rs.330.00 - Motilal Oswal

Malaysian plant commercialization impacts profits

* Biocon (BIOS) reported weak 1QFY18 results. Revenue declined 5% YoY to INR9.3b (est. of INR10b), mainly due to weak performance in the Small molecules (-17% YoY) and Branded formulations (-13% YoY) segments. With commercialization of the Malaysian plant, operational expense and fixed cost (depreciati

19/08/2017 10:33:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coromandel International Ltd For Target Rs.511.00 - Emkay

Robust volume growth; Maintain BUY

* Coromandel’s Q1 EBITDA increased 94% yoy to Rs1.7bn on the back of low base of last year. Fertiliser EBIT stood at Rs1.3bn (+280% yoy) while crop protection EBIT fell 5% yoy to Rs561mn.

* Consolidated revenues increased 11% yoy to Rs22.8bn and were broadly in-line with our estimate. Fertiliser posted

19/08/2017 10:27:22 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cipla Ltd For Target Rs.596.00 - Equirus Sec

Cipla’s 1QFY18 sales came in 12% below EE on a muted domestic market due to GST-led destocking. Lower sales had a spillover impact on EBITDA and earnings, but were compensated by a 350bps expansion in gross margins (of which 150bps impact was one-time) and one-time income recognition from divestment in the animal healthcare business. Management remains confident on a domestic business rec

19/08/2017 10:20:00 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Hindalco Industries Ltd For Target Rs.169.00 - Reliance Sec

In-line quarter; Valuation Continues to Remain Pricey

Hindalco Industries has again delivered an in-line performance in 1QFY18 with its standalone operating profit growing by 2% YoY (down 15% QoQ) to Rs11.48bn (vs. our estimate of Rs11.86bn). Though revenue from Aluminium segment increased by 9.1% YoY, it declined by 9.7% QoQ largely due to lower sales

19/08/2017 10:15:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Kewal Kiran Clothing Ltd For Target Rs.1,780.00 - Sharekhan

Key points

* Dismal performance with double-digit decline in revenue and PAT:

For Q1FY2018, Kewal Kiran Clothing Limited (KKCL) reported a 24.9% decline in its revenue to Rs.80 crore. This was mainly due to a 25.94% YoY decline in volume in Q1FY2018 because of de-stocking of inventory at distributors’ e

19/08/2017 10:06:18 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Simplex Infrastructures Ltd For Target Rs.529.00 - IIFL

Simplex Infrastructure Ltd (SIL) Q1 FY18 performance was largely inline with our expectations. The standalone topline grew 7.4% yoy aided by better execution. Operating margin however remained under pressure and declined 25bps yoy owing to higher input costs. Higher other income coupled with lower tax outgo improved SIL’s performance at the net level. With fresh order inflow of ~Rs.14bn d

19/08/2017 10:00:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Firstsource Solutions Ltd For Target Rs.45.00 - Emkay

ISGN recovery, pruning of domestic biz to spur margins

* Firstsource reported tad lower than expected revenues at Rs 8.7 bn (-1.6% QoQ ,-1.8% YoY). Top-line comprised of 2 months incremental revenues from SKY deal. In constant currency terms revenues increased by 0.8% QoQ and 6% YoY.

* Despite headwinds from INR appreciation and weak seasonal

18/08/2017 3:33:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Astral Poly Technik Ltd - Sharekhan

Key points

* Soft quarter, owing to GST implementation:

Astral Poly Technik (Astral) delivered a soft quarter led by major destocking from the distributers owing to GST roll out. Consolidated net revenues were down by 6.6% YoY to Rs440.2 crore , led by a 5% decline in the plastic segment to Rs300 crore (volume

18/08/2017 3:25:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat State Fertilizers and Chemicals Ltd For Target Rs.150.00 - SPA Sec

GSFC reported ~10% YoY growth in net sales in Q1FY18 to INR 11376mn due to strong 16% volume and ~14% revenue growth in fertilizer segment. Industrial products revenue remained flat during the quarter due to shutdown of its ammonia plant in May and June. Capro-Benzene spread at $900/ton in July would help EBITDA margins in coming quarters. GSFC received AS subsidy of INR 2 bn and expects paymen

18/08/2017 2:48:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy PNC Infratech Ltd For Target Rs.174.00 - IIFL

PNC Infratech Ltd (PNC) reported weak topline growth during Q1 FY18 which was as per our and street expectations. On standalone basis, PNC’s topline declined 31% yoy mainly due to delay in appointed date declaration for certain NHAI projects which impacted execution. Its operating margin however improved 155bps yoy to 14.6% due to lower input costs and certain one off benefits. With subdu

18/08/2017 2:40:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ramco Cements Ltd For Target Rs.806.00 - Motilal Oswal

In-line result; capacity expansion to drive growth

* East continues to gain momentum: TRCL’s volumes grew 4% YoY (-6% QoQ) to 2.15mt (est. of 2.16mt) in 1QFY18, driven by increased sales to the east markets. Volumes for the southern operations declined due to weak demand in Tamil Nadu on account of sand shortage.

*

18/08/2017 2:30:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Manpasand Beverages Ltd For Target Rs.891.00 - Religare Sec

A steady quarter...

Manpasand Beverages reported decent set of numbers for Q1FY18. Net sales increased by 28.6%, while Net profit was up by 25.5% on YoY basis. With doubling of capacity in the next 12-18 months, entry in new markets and launch of new brands, we expect the company to post healthy growth in the coming years. Thus, we maintain a BUY on th

18/08/2017 2:23:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Indoco Remedies Ltd For Target Rs.153.00 - Angel Broking

For 1QFY2018 Indoco Remedies posted poor set of numbers. Sales came in at `204cr (`214cr expected) v/s. `253cr in 1QFY2017, a yoy de-growth of 19.1%. The company witnessed a disruptive 1QFY2018, with domestic as well International sales getting affected adversely due to GST implementation in India and voluntary stoppage of ophthalmic product supplies to US respectively. On operating front, the

18/08/2017 12:27:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Idea Cellular Ltd For Target Rs.110.00 - Motilal Oswal

Latent synergies to bolster growth

* Flat consolidated revenues – a solace to Idea: Marred by disruption in the sector over the last two quarters, Idea’s revenue for 1QFY18 came in flat QoQ (-14% YoY) at INR81.7b. Recovery in voice revenue growth to 2% QoQ (to INR61b) was offset by data revenue decline of 7% QoQ (to INR13.7

18/08/2017 12:22:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Sharda Cropchem Ltd For Target Rs.533.00 - Emkay

Higher RM costs weigh on margins

* Revenues in Q1FY18 up 8.4% yoy to Rs3.4bn driven by robust volume growth of 15.7% yoy which was partly offset by adverse currency impact of 5.4% and 1.9% of price/product mix. NAFTA region reported stellar growth of 49.7%yoy.

* Gross margins contracted by 358bps yoy to 32.3% on high raw material and adverse

18/08/2017 12:15:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy JSW Energy Ltd For Target Rs.67.00 - Equirus Sec

JSW Energy (JSWEL) 1QFY18 performance was impacted by lower PLFs at thermal plants and subdued merchant realization. Management highlighted that going ahead thrust will on reduction of debt, capacities tie up and efficiency improvement. JSWEL has announced its foray into e-vehicles and energy storage systems with approx. capex of Rs 40bn over three years with first e-vehicle planned to come up

18/08/2017 12:05:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold CESC Ltd For Target Rs.903.00 - Reliance Sec

In-line Quarter; Positives Priced in

CESC’s net profit grew by 2.3% YoY to Rs1.78bn in 1QFY18, in line with our estimate of Rs1.79bn. Its revenue rose by 8.5% YoY to Rs21.8bn led by rise in PLF at Haldia & Dhariwal plants and 5.8% YoY rise in realisation to Rs7.66/unit.

Witnessing a sharp rally since our last recommendation, CESC ha

18/08/2017 11:31:46 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Shree Cement Ltd For Target Rs.19,600.00 - Sharekhan

Key points

* Higher volume and realization negated by elevated opex; higher depreciation and interest outgo dents earnings:

Shree Cement’s Q1FY2018 revenue grew by 13.9% YoY to Rs2,536 crore, driven by a 13.9% YoY volume growth (due to capacity ramp-up in the East) and a 7.5% YoY growth in realisations

18/08/2017 11:26:48 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Sun Pharmaceutical Industries Ltd For Target Rs.500.00 - Emkay

Taro numbers indicate elevated pricing pressure: Maintain REDUCE

Result highlights

* Taro (TARO) reported Q1FY18 numbers that are below estimates, with revenue of US$161mn (estimate: US$194mn), EBITDA of US$81mn (estimate: US$100mn) and net income of US$74mn (estimate: US$86mn).

* Overall EBITDA margin stood at 50.

17/08/2017 3:10:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ramkrishna Forgings Ltd For Target Rs.602.00 - SPA Sec

Ramkrishna Forgings Ltd. (RKFL) reported revenue of INR 2576 mn in Q1 FY18 (18.5% jump over INR 2175 mn YoY) and a PAT of INR 91 mn (71.9% jump over INR 53 mn YoY) on the back of pickup in export volume and improved realizations in domestic market. EBITDAM has improved by 8.4 bps YoY despite delay in passing of increased RM cost to the clients. RM cost as % of sales increased by 79.6 bps. Emplo

17/08/2017 3:02:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Wonderla Holidays Ltd For Target Rs.430.00 - Religare Sec

On a growth path…

Wonderla Holiday Ltd. (WHL) reported steady Q1FY18 results on expected lines. Net sales increased by 18.3% YoY to Rs 102.3crs, primarily led by increase in realisation. EBITDA increased by 17.3% YoY to Rs 47.3crs. Net profit came in at Rs 26crs, a growth of 15.7% over Q1FY17. The Company has acquired land in Chennai for its 4th

17/08/2017 2:52:19 PM | Posted in Broking Firm Views - Long Term Report read full news