Update On Shriram Transport Finance Company Ltd - Emkay

Operating performance improves

* Shriram Transport Finance’s (SHTF) Q1FY18 performance was well above our as well as street estimates due to strong operating performance led by healthy margin expansion, while asset quality remained stable qoq

* AUMs grew 9% yoy (+4% qoq) to Rs816bn as disbursements expanded (+3% qoq) at Rs108bn +1.5% yo

16/08/2017 12:18:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jyothy Laboratories Ltd For Target Rs.422.00 - Equirus Sec

JYL registered sales de-growth of 16% yoy (volume de-growth 17%), lower than EE of 2% yoy growth mainly due to de-stocking on account of GST implementation. 1QFY18 EBIDTAM stood at 11.5% (EE of 14.3%), down 670/213bps yoy/qoq, while absolute EBIDTA for the qtr stood at Rs. 421mn lower by 47% on yoy basis. Gross margins during the qtr were a pleasant surprise improving by 339bps/877bps on yoy/qo

16/08/2017 12:13:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Nava Bharat Ventures Ltd - Sharekhan

Key points

* Handsome return of 26% since our last update, Book profits:

Nava Bharat Ventures Limited (NBVL) has given handsome return of 26% since our last update on 31st January 2017 on account of achieving provisional acceptance of Zambia Power Plant (300MW) recently. The completion guarantees that test f

16/08/2017 12:08:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy PVR Ltd For Target Rs.1,628.00 - Motilal Oswal

Expansion in southern market to lead growth

* Revenue in-line, EBITDA and PAT below estimates: PVR reported overall revenue of INR6.4b (est. INR6.3b) in 1QFY18 as against INR5.6b in 1QFY17 marking a YoY growth of 13.2%. EBITDA margins declined to 17.6% in 1QFY18 (est. 20.5%) from 19% in 1QFY17. EBITDA stood at INR1,120m (est. INR1,309

16/08/2017 12:04:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Orient Cement Ltd For Target Rs.163.00 - IIFL

Lower than anticipated volume growth drags revenue

Orient Cement (OCL) sales grew at 30%yoy, falling short of our estimates of 40% yoy growth. The underperformamnce can be largely attributed to lower dispatches of 1.4mtpa (our estimate 1.6mtpa). Lower off-take led to lower capacity utilization at 70% (87% in pprior quarter). Realizations improved 18% s

16/08/2017 12:00:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy CESC Ltd For Target Rs.1,360.00 - Motilal Oswal

Turnaround in Spencer & Dhariwal

Demerger to re-rate Distribution business; Upgrading TP to INR1360

We went through the FY17 annual reports of CESC and its various subsidiaries. Asset sweating and cost reductions are driving turnaround at Spencer and Dhariwal. Efficiencies and cost reductions are driving

15/08/2017 1:45:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold LIC Housing Finance Ltd For Target Rs.730.00 - Emkay

Margins and asset quality surprise negatively

* LIC Housing Finance (LICHF) surprised negatively with a steep increase in NPLs (both in corporate as well as individual loans) and a sharp drop in its net interest margins, which lead to a significant miss in earnings from our as well as street estimates

* Gross NPLs rose 70% qoq mainly led by a

15/08/2017 1:30:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Balmer Lawrie and Company Ltd For Target Rs.289.00 - Kotak Sec

Key Highlights of Balmer Lawrie Company’s Q1FY2018 Results

* Balmer Lawrie Company has reported a 19.2% yoy fall in its net profit for Q1FY2018 to Rs.299 million as comparedto Rs.370.10 million in Q1FY2017;

* Operating profit during the quarter also came down by 19.2% yoy to Rs.526.30 million as compared to Rs.651.50million in the same

15/08/2017 12:28:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Marico Ltd For Target Rs.308.00 - Equirus Sec

Marico’s (MRCO) 1QFY18 consolidated sales of Rs 16.8bn came in 6% below EE (India volumes down 9% yoy). EBIDTAM stood at 19.3%, 61bps lower than EE, as higher prices of key raw materials (copra, LLP) squeezed gross margins. With additional price hikes in Parachute post 2QFY18, we expect MRCO to post 12% earnings CAGR over FY17-FY19E. However, given FY15/FY16/FY17 volume growth for MRCO&rs

15/08/2017 12:24:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Torrent Pharmaceuticals Ltd For Target Rs.1,190.00 - Sharekhan

Key points

* Mixed bag performance:

Sales for the quarter reported a de-growth of 11.1% to Rs 1374 crore (lower than our expectation). The operating profit declined by 32% to Rs 297 crore (lower than expectation); operating profit margin declined by 667BPS to 21.6% and adjusted profit for the quarter declined

15/08/2017 12:20:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Bharat Financial Inclusion Ltd For Target Rs.820.00 - Motilal Oswal

Up-fronting provisions; stressed loans pool declines

* BHAFIN reported 1QFY18 net loss of INR371m, driven by a provision hit of INR1.76b. The company up-fronted bulk of the provisions which it plans to make for the year. We view this as a key positive.

* Collection efficiency trends have been encouraging. First month collection rate improved

15/08/2017 12:16:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NCC Ltd For Target Rs.120.00 - Emkay

Execution the key

* NCC reported standalone revenue of Rs20.1bn and EBITDA of Rs1.7bn respectively which were in line with our expectations. Adj Pat stood at Rs0.6bn which was above our as well as street estimates mainly because of lower interest cost.

* Interest costs were down on the back of improvement in NCC’s debt ratings; however

15/08/2017 12:11:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Greaves Cotton Ltd For Target Rs.190.00 - Sharekhan

Key points

Q1FY2018 weak results:

Greaves Cotton Limited (GCL) reported a weak set of numbers for Q1FY2018, below our estimates across parameters. The company’s topline remained flat at Rs.406 crore. Subdued automotive engine volumes and slowdown in the aftermarket segment due to dealer destockin

15/08/2017 12:02:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Colgate Palmolive India Ltd For Target Rs.1,285.00 - Motilal Oswal

Vo lumes miss, but performance better than peers despite high rural salience

* Colgate (CLGT) posted volumes decline of 5% YoY (est. of flat volumes). Realization was lower than expected, possibly because of mix, and thus, sales declined by 3.6% (est. of +7%) to INR9.7b in 1QFY18. EBITDA rose 5.0% YoY (est. of +12.9%) to INR2.2b. PAT grew 8.5% YoY (est

15/08/2017 11:56:08 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tech Mahindra Ltd For Target Rs.533.00 - Angel Broking

For 1QFY2018 Tech Mahindra posted good set of numbers. The sales came in at US$1,138mn (US$1,127mn expected) v/s. US$1,131mn in 4QFY2017, a qoq growth of 0.6%. In Rupee terms, sales came in at `7,336cr (`7,262cr expected) v/s. `7,495cr in 4QFY2017, a qoq dip of 2.1%. On operating front, the EBIT margins came in at 9.4% (8.6% expected v/s. 8.2% in 4QFY2017, a qoq expansion of 117bps, mainly on t

15/08/2017 11:46:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Mphasis Ltd For Target Rs.610.00 - Motilal Oswal

Tapping of new opportunities…

…reflected in growth, deal wins and margins

* HP-led revenue beat: MPHL reported 4.2% QoQ revenue growth to USD231m, above our estimate of +2.0% QoQ. Growth in the HP channel jumped to 10% QoQ after three quarters of stability, reflecting expanded relationship tha

15/08/2017 11:42:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Advanced Enzyme Technologies Ltd For Target Rs.421.00 - Emkay

Evoxx acquisition is long-term positive; Maintain BUY

* ADVENZY announced the acquisition of Evoxx Technologies GmbH, formerly known as Evocatal GmbH on July 27, 2017. It was started in 2006 and is involved in developing and producing enzymes and fine chemicals for chemical and pharmaceutical industries.

* Its biocatalysts have applications i

15/08/2017 11:38:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bombay Burmah Trading Corporation Ltd For Target Rs.1,130.00 - Kotak Sec

We initiate our BUY recommendation on Bombay Burmah Trading Corp. Ltd (BBTC)

The Bombay Burmah Trading Corporation, Limited (BBTC), a 150 year old company, founded its fortunes on teak business in the year 1863. BBTC is part of the Wadia Group, which has interests in plantations, foods, textiles, chemicals, electronics and light engineering, health care and real estate. BBTC is the se

15/08/2017 11:33:31 AM | Posted in Broking Firm Views - Long Term Report read full news
Update On Century Plyboards Ltd - Equirus Sec

Centuryply Plyboards’ (CPBI) 1QFY18 revenues were up 8% yoy but fell 4% short of EE. Plywood volumes jumped 12% yoy led by aggressive marketing, while laminates business saw a slight decline due to pre-GST led de-stocking. EBITDAM disappointed on the back of higher RM costs in plywood and below-expected volume growth in laminates. MDF is expected to start contributing from 2H18 as against

15/08/2017 11:25:43 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy UPL Ltd For Target Rs.980.00 - Sharekhan

Key points

* Revenues in-line; Margins missed estimates:

The topline for Q1FY18 was up 6% YoY to Rs 3,851 crores driven by a 10% volumes growth while realizations dipped 4% (including a 3% dip on account of adverse forex movement). The topline was in line with our estimate. The operating profit margins (OPM)

15/08/2017 11:21:23 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Amara Raja Batteries Ltd For Target Rs.1,095.00 - Motilal Oswal

Strengthening products and market presence

Expanding technology and offerings to challenge leader

AMRJ’s FY17 annual report, themed ‘Expanding Horizons’ highlights initiatives on new technologies, applications and markets. It has prioritized segments such as e-rickshaws, renewable energy, motive power prod

15/08/2017 11:17:31 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce NMDC Ltd For Target Rs.130.00 - Kotak Sec

NMDC numbers were above estimates, on account of higher than expected realisation and lower costs. Net sales during the quarter grew 65.1% YoY to Rs28.42bn. Volume during the quarter grew 18.2% YoY to 9.18MT (down 68.2% QoQ), while realisation during the quarter stood at Rs3,068/tonne. Strong operating performance, led to 36.3%/89.4% YoY/QoQ increase in PAT to Rs9.69 bn, higher than estimates o

14/08/2017 2:39:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Hexaware Technologies Ltd For Target Rs.241.00 - Equirus Sec

Hexaware reported another superlative quarterly performance (revenues grew 5.5%/17.7% qoq/yoy) led by broad based growth across verticals, service lines and geo‟s. EBITDAM declined 65bps qoq to 16.2%, modestly higher than our 16.5%/38bps decline estimate as GM efficiency was offset by increase in SG&A. Though Hexaware raised its reported revenue/ebitda guidance (expected to grow 14-15%),

14/08/2017 2:36:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Godrej Consumer Products Ltd For Target Rs.1,075.00 - Sharekhan

Key points

* Revenue grew in single digit and OPM declined on a YoY basis:

For Q1FY2018, Godrej Consumer Products Ltd.’s (GCPL) revenue grew by 3.4% YoY to Rs.2,266.7crore. The single-digit revenue growth can be attributed to 6.6% growth in the revenue of the domestic business, while revenue of the int

14/08/2017 2:28:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Federal Bank Ltd For Target Rs.139.00 - Motilal Oswal

Slippages dent profitability; Underlying story intact

* Federal Bank’s (FB) 1QFY18 PAT declined 18% QoQ (+26% YoY) to INR2.1b (14% miss), despite in-line PPoP (+2%/31% QoQ/YoY), due to the twin impact on NII and provisions from a spike in corporate slippages, with a restructured account slipping into NPA.

* NII growth came in at -5%/16

14/08/2017 2:23:42 PM | Posted in Broking Firm Views - Long Term Report read full news