Hold LIC Housing Finance Ltd For Target Rs.530.00 - RCML

Resilient model but valuations full – initiate with HOLD

LICHF’s high lending exposure to the salaried class and government employees imparts resilience to its loan book in a demonetised real estate market compared to other large HFCs. We expect loan growth to come off but remain ahead of peers at 8%/12% in FY18/FY19 (vs. a 17% CAGR reporte

11/01/2017 11:22:25 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Aurobindo Pharma Ltd For Target Rs.891.00 - Emkay Global

Portugal acquisition - Earnings accretive & enable revenue diversity

* Aurobindo Pharma (ARBP) has acquired Generis Farmaceutica SA, the second largest generic company in Portugal, for Euro 135mn. The deal would catapult ARBP to the No 1 generic player position in Portugal. ARBP also gets access to an orals manufacturing facility which at present i

11/01/2017 11:19:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cyient Ltd For Target Rs.565.00 - Reliance Sec

Cyient is a mid-sized IT firm focused on 3 businesses i.e. Engineering Services (ENGG), Data Transformation, Network & Operations (DNO) & Design-led Manufacturing (DLM). We believe recent improvement in core services growth will be key driver for re-rating. Healthy order book and positive outlook in key verticals underpin our confidence for sustained growth. While strong client relation

11/01/2017 11:14:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Housing Development Finance Corporation Ltd For Target Rs.1,250.00 - RCML

Loan growth risks priced in – initiate with HOLD

We expect HDFC’s loan growth to decelerate to ~10% over FY18-FY19 as (1) demand for home loans drops in anticipation of a property price correction post-demonetisation and (2) growth opportunities in the corporate segment shrink as the cash crunch and weak property prices take their toll. HD

11/01/2017 11:08:04 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Aurobindo Pharma Ltd For Target Rs.991.00 - Reliance Sec

Generis acquisition to strengthen ARBP’s Europe business

Aurobindo Pharma (ARBP) has acquired Generis Farmaceutica SA (Generis) for €135mn (including net working capital of €21.7mn) with reasonable valuation at 2.1x EV/Sales and 10.4x EV/EBITDA. With this acquisition (Generis SA: 2nd largest player by value), combined entity would becom

10/01/2017 12:05:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Nandan Denim Ltd For Target Rs.140.00 - GEPL

Company Snapshot

Nandan Denim is a part of Gujarat based, a leading conglomerate Chiripal Group. Company commenced its operations in 1994 with textile trading business & later forayed into textile manufacturing in 2004. Company currently engaged in manufacturing of denims, cotton fabrics & khakis. Company has one of the largest denim fabric man

10/01/2017 12:01:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NBCC (India) Ltd For Target Rs.340.00 - Sharekhan

Key points Deal with Air India hits a speed breaker:

In December 2014, NBCC (India) had signed a Memorandum of Understanding (MoU) with Air India to develop or sell various land parcels across the country. The company is working on two-three models wherein 1) NBCC will charge PMC charges/marketing charges of 10%/1% and will get some interest on equity

7/01/2017 11:42:54 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Yes Bank Ltd For Target Rs.1,500.00 - Motilal Oswal

Best placed in the current environment

RoEs best among the peers

 We believe the mid-size private banks are likely to be the key beneficiaries of demonetization and the digitalization drive of the Government of India (GoI). With significant investments in people (18,530 v/s 3,929 in FY11), branches (950 v

6/01/2017 4:32:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dish TV India Ltd For Target Rs.115.00 - Motilal Oswal

Dish TV-Videocon d2h: Synergies decoded

But wait, there’s more!

* The Dish TV-Videocon (DITV-VDTH) merger is likely to rake in synergies worth INR6.9b-7.6b (largely cost-led) over FY19-20. When the synergies play out, peak capex would be behind – both for the industry and for DITVVDTH. Consequent

5/01/2017 2:59:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Insecticides (India) Ltd - Sharekhan

Key points Š

A long-term investment, re-rating on the horizon:

Insecticides India is trading at a Price-to-Earnings (PE) ratio of 19.8/14/10.8x on FY2017/FY2018/FY2019 estimates vs Dhanuka Agritech (nearest competitor among its peers), which is trading at a PE ratio of 30/23.8/20.1x on FY2017/FY2018/FY2019 e

5/01/2017 11:15:16 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Oil India Ltd For Target Rs.446.00 - Sharekhan

Key points

Increase in oil price to negate benefit of lower cess:

The cess payout for Oil India (OIL) works out to be $8.5 per barrel (bbl) (marginally lower than the fixed $9/bbl cess burden earlier), assuming a net realisation of $50.7/bbl. Therefore, the benefit of lower cess payment due to the revision to 16.67% ad valorem duty vs the fi

5/01/2017 11:08:22 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy PVR Ltd For Target Rs.1,429.00 - Motilal Oswal

Demonetization impact lower than initial expectations

The movie ‘Dangal’ was a savior; Maintaining Buy

* ‘Dangal’ crosses INR2.5b NBO collection, PVR has 20% market share:

The Hindi film Dangal reported stellar net box office collection (NBO)

4/01/2017 2:34:31 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Engineers India Ltd For Target Rs.168.00 - Kotak Sec

EIL stock has risen sharply since our previous update (post Q2FY17 results); we believe that current valuations at 19.3x reasonably discounts the near/medium term positive business outlook driven by 1) improved order flows from domestic oil refineries and 2) improved profitability acertained by higher proportion of consultancy orders.

We maintain our earnings estimate; value stock at

4/01/2017 12:07:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cadila Healthcare Ltd For Target Rs.405.00 - Reliance Sec

Background & Business

Cadila Healthcare (CDH) – a well-diversified pharmaceutical company with presence across over 100 countries – is one of the few Indian players having presence in Consumer & Animal Healthcare businesses. It ranks among the Top-5 companies in the Indian market. The India branded business contributes >30% to it

4/01/2017 11:49:09 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dr. Lal Pathlabs Ltd For Target Rs.1,250.00 - LKP Sec

Dr. Lal Pathlabs (DLP) is a leading player in the fragmented & competitive Indian diagnostics market. Established in 1949, this Delhi based company has been able to widen its reach to a pan-India network on the back of a strong brand and scalable hub & spoke model. This network boasts of a National Reference Laboratory in Delhi, over 172 clinical laboratories, 1,559 patient service cent

4/01/2017 11:46:00 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Asian Paints Ltd For Target Rs.1010.00 - Reliance Sec

Background & Business

Asian Paints is India’s leading paint manufacturer and marketer, with a dominant share in the decorative segment. It has operations in 17 countries with 26 paint manufacturing facilities servicing consumers in over 65 countries. The Company has forayed into home improvement and décor space in India with acquisitio

4/01/2017 11:37:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Alkem Laboratories Ltd For Target Rs.1,989.00 - Angel Broking

Alkem Laboratories is a Mumbai based pharma company engaged in manufacturing and marketing of generic drugs, APIs and neutraceutical products. Company sells its drugs in India and ~50 countries including the US. It has 16 manufacturing facilities of which 14 are in India and two in the USA.

 

Strong domestic business–

Alk

4/01/2017 11:31:20 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bajaj Auto Ltd For Target Rs.2,910.00 - Sharekhan

Key points

Demonetisation to hit domestic demand in near term:

The Government’s demonetisation measure has led to a severe liquidity crunch and has an adverse impact on the cash-driven motorcycle sales (about 65% of motorcycles are purchased in cash). The domestic motorcycle industry’s growth slipp

3/01/2017 12:20:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Finserv Ltd For Target Rs.3,450.00 - Sharekhan

Key points

Lending subsidiary impacted by demonetisation:

Recently, the management of Bajaj Finance (BFL; 58% shareholding) indicated that the demand environment has been impacted by the demonetisation drive. The enquiries have reduced by 17% YoY, and while different segments have been impacted differently, so far, the segments like Consumer

3/01/2017 12:15:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Coal India Ltd For Target Rs.300.00 - Emkay

Dispatch continues to be flat on YTD basis…

Coal India’s December’16 both production and dispatch rose by 4.1% and 6.8% YoY

* For the month of December’16, dispatch stood at 51.46 mt (+6.8% both YoY/MoM). This was 98% of the target for the month. On a per day basis December’16 d

2/01/2017 11:36:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Gujarat State Petronet Ltd - Sharekhan

Key points

Growing LNG supplies to drive long-term volume growth:

Affordable LNG prices [spot price of $7-8 per million British Thermal Units (mmbtu) and RasGas contracted long-term price of $7 per mmbtu], and doubling of LNG capacity in Gujarat to 30 million metric tonne (mmt) would substantially improve Guja

31/12/2016 10:50:45 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy KEI Industries Ltd For Target Rs.153.00 - Angel Broking

KEI Industries (KEI) is a cable manufacturing company and also engaged in Engineering, Procurement and Construction (EPC) business. It offers high and low tension cables, control and instrumentation cables, house wires, stainless steel wires, and high-technology specialty cables. Its manufacturing facilities are located at Bhiwadi, Chopanki & Silvassa. Through export KEI is present in over

30/12/2016 4:05:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Mangalore Refinery And Petrochemicals Ltd For Target Rs.104.00 - Kotak Sec

Strong product prices, Robust cracks, Weak Currency and Inventory gains are the key triggers

We expect MRPL's financial performance to improve on account of strong margins in the short term, improvement in operational performance in the medium term and ongoing improvement in financial metrics. In fact, strong performance in H1FY17 emphasizes the s

30/12/2016 11:19:59 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Balrampur Chini Mills Ltd - Sharekhan

Key points Š

Sugar prices firmed up in FY2017; likely to remain relatively stable in FY2018 due to favorable demand-supply scenario:

The Indian sugar companies are in a sweet spot, as sugar prices have firmed up to Rs35-36 per kg in the domestic market (from the lows of Rs20 per kg in July 2015) due to a dema

30/12/2016 11:12:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kajaria Ceramics Ltd For Target Rs.533.00 - Kotak Sec

We recently interacted with the management of Kajaria Ceramics to understand the impact of demonetization on the company. We believe that sales in the cash segment from the dealer to the end users have been impacted due to lack of demand as well as liquidity. Overall sales are expected to be impacted adversely by 20-25% based on our interactions with the company management as well as industry p

29/12/2016 11:12:39 AM | Posted in Broking Firm Views - Long Term Report read full news