Update On OnMobile Global Ltd - Emkay

Growth and re-rating hinges on success of new products

*  We recently interacted with the management to get an update on the new product development, its growth prospects and launch strategy. We also delved into the existing business’ outlook and scope of cost rationalization, if any.

*  The company has recently launched its b

14/01/2017 11:26:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cyient Ltd For Target Rs.565.00 - Reliance Sec

On expected lines, Cyient posted a soft performance in 3QFY17, with revenue at US$135.8mn (-0.5% qoq; +0.6% in CC terms). Implied volumes declined 0.5% qoq, while pricing declined 1.1% qoq. An adverse cross-currency impact of 110bps was also witnessed. A positive factor was healthy growth in Design-Led Manufacturing (DLM) segment (10.2% qoq rise in USD revenue). EBITDA margin declined 66bps qoq

14/01/2017 11:04:30 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tata Consultancy Services Ltd For Target Rs.2,600.00 - Prabhudas

TCS delivered a steady set of results for Q3FY17 with USD revenues and PAT beating our expectations. Growth beat in Q3 was driven by traction in emerging markets (Latin America and India). Notably, Equipment and software sales aided most of the incremental revenue growth for the quarter. BFSI vertical (40.4% of total revenues) which was an area of concern in 1H has delivered a steady growth of

14/01/2017 10:56:45 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,350.00 - RCML

Unmoved by demonetisation – maintain BUY

IIB reported strong Q3FY17 results, with profits surging 29% YoY to Rs 7.5bn despite demonetisation. Loan growth slowed down marginally to 25% YoY while growth in CV loans moderated to 10% YoY. Asset quality was largely stable with the GNPA ratio at 0.94%. NIMs remained flat at 4% despite lower cost of fun

14/01/2017 10:47:13 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Infosys Ltd For Target RS. 1,150.00 - Sharekhan

Key points

*  Beats estimates:

Infosys reported a weak revenue performance for Q3FY2017, owing to ramp-down of the RBS contract (impact equivalent to over 1% of total revenue) and seasonal softness, but the results were still broadly in line with estimates. The company’s constant currency (CC) rev

14/01/2017 10:38:56 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sutlej Textiles & Industries Ltd For Target Rs.1,032.00 - Religare Sec

Incorporated in 2005, Sutlej Textiles Industries Ltd. (STIL) is India's largest spun dyed yarn manufacturer and a leading textile player with presence across value chain from Yarn to Home Textile. It holds leadership position in cotton melange yarn segment. With a total installed capacity of 3.78 lac spindles of Yarn and 8.4mn metres of Home Textiles, STIL's state-of-the-art manufacturi

13/01/2017 11:57:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Inox Wind Ltd For Target Rs.258.00 - Reliance Sec

Inox Wind (INXW) has corrected ~ 50% in last 12 months on account of concerns over working capital. However, with the recent Gujarat Wind Policy and feed-in tariff order in place, we expect power plant commissioning will pick-up pace from 4QFY17E onwards, which will result in lower working capital by 2HFY17E. As strong outstanding order book and impeccable execution capabilities will continue t

13/01/2017 11:48:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy UPL Ltd For Target Rs.820.00 - RCML

Diversified global play

We initiate coverage on UPLL with BUY and a Mar’18 TP of Rs 820 set at 16x FY19E EPS. UPLL has been outperforming its global peers on the strength of (1) a balanced presence across geographies, product segments and crops, (2) rising market share in high-growth countries like Brazil and India, and (3) a presence across the

13/01/2017 11:43:53 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy ABB India Ltd For Target Rs.1,331.00 - Reliance Sec

ABB India (ABB) has been passing through a difficult phase during 2009-2014 marked by significant erosion in earning on the back of deteriorating market position, pricing pressure and cost overruns. Its operating margins took a big hit after it exited noncore rural electrification business, while executing certain strategic orders at relatively lower margins also dragged its profitability. Howe

13/01/2017 11:36:51 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Tata Consultancy Services Ltd For Target Rs.2,450.00 - Sharekhan

Key points

Stable numbers in a seasonally weak quarter:

Tata Consultancy Services (TCS) has delivered a better-than-expected revenue performance, with a constant currency (CC) growth of 2% QoQ (1% QoQ volume growth) and 0.3% QoQ growth on a reported basis to $4,387 million in a seasonally weak quarter. EBIT ma

13/01/2017 11:27:09 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Sharda Cropchem Ltd For Target Rs.490.00 - RCML

Divergent play

We initiate coverage on SHCR with HOLD and a Mar’18 TP of Rs 490. SHCR has a differentiated asset-light business model with a focus on product registrations. A robust 43% CAGR (FY10-FY16) in registrations in highly regulated markets and strong sourcing capabilities reinforce its execution credentials. SHCR is on the cusp of exponen

13/01/2017 11:22:46 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Tata Consultancy Services Ltd For Target Rs.2,200.00 - Reliance Sec

Tata Consultancy Services (TCS) has delivered decent performance in a seasonally weak quarter with its USD revenue growing by 0.3% qoq (2% qoq in CC terms) in 3QFY17, which has topped our estimate by 0.3%. EBIT margin remained flat (albeit 30bps above our estimate), while net profit rose 2.9% qoq (4.9% above our estimate). However, we envisage the appointment of N Chandrasekaran as Chairman of

13/01/2017 11:19:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Rallis India Ltd For Target Rs.290.00 - RCML

At an inflection point – upgrade to BUY

Our analysis suggests that RALI has regained domestic market share in H1FY17 after reporting market share losses over FY12-FY16. The company’s exports and seeds businesses also continue to perform well. We think RALI is an inflection point with domestic market share gains, better export traction and

13/01/2017 10:53:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Sun Pharmaceutical Industries Ltd For Target Rs.734.00 - Emkay

Merrimack divests liposomal assets; Favourable for Sun Pharma

* Merrimack Pharma (MACK) seen as one of the leading companies developing Liposomal generics has divested its entire liposomal assets to IPSEN (IPN).

* IPN investor release seems to indicate that the acquirer is primarily interested in ONIVYDE, a liposomal variant of regular Irinot

12/01/2017 12:02:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold PI Industries Ltd For Target Rs.910.00 - RCML

Challenging year ahead, valuations cap upside

We initiate coverage on PI with HOLD and a Mar’18 TP of Rs 910. PI has posted a stellar 24%/63% sales/PAT CAGR over FY08-FY16 driven by both domestic (18% CAGR) and CSM (36% CAGR) segments. However, we expect growth to moderate to 13%/18% over FY16-FY19E due to a slowdown in the global agrochemicals

12/01/2017 11:56:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,352.00 - Prabhudas

IIB remained undeterred from the demonetisation effect and continued its robust growth in NII and earnings beating our expectations with PAT growth of 29% YoY at Rs7.51bn (PLe: Rs6.83bn). Loan growth continued at 25% YoY with stable margins of 4.0%, leading to NII growth of 34.5% YoY. Fee income was in‐line with trends, while credit cost was under control though there was slight deterioration

12/01/2017 11:52:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dhanuka Agritech Ltd For Target Rs.890.00 - RCML

Superior product mix to boost growth

We initiate coverage on DAGRI with BUY and a Mar’18 TP of Rs 890 set at 25x FY19E EPS. DAGRI has a unique asset-light business model underpinned by an extensive marketing network (7,000 dealers/distributors selling to 75,000+ retailers across India), giving it an edge over competitors. The company has an exci

12/01/2017 11:46:54 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors Ltd For Target Rs.600.00 - Emkay

JLR Volumes: Decent show in December; all eyes on launches

* JLR recorded decent wholesale volumes for December, with 4% YoY increase to 53,063 units, while retail sales grew 12% to 55,374 units, led by 95% growth in Jaguar (FY17: +84%) and -5% in Land Rover (FY17: +3%)

* Jaguar retail sales were driven by strong volumes from for XF (3,597 un

12/01/2017 11:41:32 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Steel Strips Wheels Ltd For Target Rs.940.00 - JHP Sec

Steel Strips Wheels Ltd. (SSWL), India’s 2nd largest wheel rim manufacturer, operates in PV/CV/Tractors/2&3 wheeler segment (41%/37%/15%/7% of revenue). It has strategic tie-up with Kalink, Sumitomo, GS Global and Tata Steel.

 

* Alloy Wheels to fuel the next phase of growth

The Indian alloy wheel market is expected

12/01/2017 11:35:23 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On KM Sugar Mills Ltd - Sharekhan

Key points

A mid-sized sugar company with integrated operations, low leverage and healthy free cash flows:

KM Sugar Mills (KSM) is an integrated sugar company based in one of the largest sugarcane producing states of India - Uttar Pradesh (UP). It has crushing capacity of 9,000TCD, distillery capacity of 45KLP

12/01/2017 11:14:42 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bayer CropScience Ltd For Target Rs.4,660.00 - RCML

Steady business, but valuations rich

We initiate coverage on BYRCS with HOLD and a Mar’18 TP of Rs 4,660. BYRCS leads India’s agrochemicals market with a dominant 45-50% share in hybrid rice seeds and a 14% share in agrochemicals. A comprehensive distribution network, branded portfolio, innovative launches ahead and strong R&D capabili

12/01/2017 11:05:50 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,447.00 - Reliance Sec

IndusInd Bank has surprised the market by reporting strong growth on both profitability as well as loan book fronts. Its net profit grew by 29.2% yoy & 6.6% qoq to Rs7.5bn led by 34.5% yoy & 8.1% qoq growth in NII and 21.2% yoy & 4.8% qoq growth in other income. About 70% of its loan book is on fixed rate, which helps the Bank it to report a strong growth on NII front amid a declini

11/01/2017 11:48:52 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Repco Home Finance Ltd For Target Rs.720.00 - RCML

Uniquely positioned – initiate with BUY

REPCO is our only pick among HFCs as we expect the company to grow ahead of peers (loan book CAGR of 20% for FY16-FY19E) backed by (1) its niche, volume-led business that targets the small-ticket needs of the underbanked, (2) planned expansion into new markets, and (3) government sops for low-cost housing.

11/01/2017 11:43:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jubilant FoodWorks Ltd For Target Rs.1,000.00 - Reliance Sec

Jubilant FoodWorks (JFL) has been undergoing a tumultuous time for last few quarters – marked by stagnant Same Store Sales (SSS) growth, pressure on margins and high level exits – with which the stock has corrected by 40% in past one year and by 22% in past three months. Despite near-term uncertainties, we believe that risk reward ratio is turning to be favourable, while revival in

11/01/2017 11:40:35 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On IndusInd Bank Ltd - Sharekhan

Key points Š

No visible impact of demonetisation:

IndusInd Bank (IndusInd) posted strong Q3FY2017 numbers, with a 25% YoY loan book expansion on the back of a better-than-expected NII and PAT. The bank’s Corporate loan book (58% of total loan book) propelled the growth, with loans to Large Corporates/M

11/01/2017 11:35:24 AM | Posted in Broking Firm Views - Long Term Report read full news