Neutral Wipro Ltd For Target Rs.280.00 - Motilal Oswal

Asymmetrical growth dynamics

… …continue restricting broad-based revival

* Revenue growth below expectations: 2QFY18 CC revenue growth of 0.3% QoQ was below our estimate of 1% QoQ and at the lower end of WPRO’s guidance of -0.5% to +1.5% QoQ. Barring Communications (-4.4% QoQ CC) and Healt

19/10/2017 9:30:54 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Colgate Palmolive (India) Ltd For Target Rs.1,108.00 - Emkay

*  Net revenues at Rs 10.8bn, up 2.8% yoy on an adjusted basis, below our estimates of Rs 11.2bn. Colgate has taken price cuts of 8-9% to pass on the benefit of reduced GST rates. Volumes declined by 0.9% v/s our estimate of 3% growth

* This is the fifth consecutive quarter where Colgate saw a decline in its toothpaste market share which stood at 54%, down 170bps yoy and 30bps qo

19/10/2017 9:25:28 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Federal Bank Ltd For Target Rs.146.00 - Motilal Oswal

Strong operating performance; Growth continues with asset quality stable

* Federal Bank (FB) recorded robust PPoP growth of 5%/23% QoQ/YoY (INR5.8b, 8% beat), led by 12%/24% QoQ/YoY NII growth, and controlled opex growth (+5%/+18% QoQ/YoY; 7% beat) on curbed employee expenses (+7% YoY).

* NII growth came in at 12%/24% QoQ/YoY (3% beat), aide

19/10/2017 9:16:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bajaj Auto Ltd For Target Rs.3,150.00 - Emkay

*  Bajaj Auto’s EBITDA margin expanded by +250bp qoq to 19.7% (Emkay: 19.6%; Consensus: 18.8%), led by better realizations and higher scale. On a yoy basis, margin fell by –170bp due to higher input prices and expiry of Pantnagar plant tax benefits.

* Management expects margins at 20% in H2FY18 led by better scale and mix, despite higher input prices. On the demand si

19/10/2017 9:09:24 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kansai Nerolac Paints Ltd For Target Rs.520.00 - Prabhudas Lilladher

KNPL’s strong performance continued with 16.2% sales growth led by 18% volume growth. Early onset of festival season and post GST re‐stocking enabled 20% volume growth in decorative paints. Strong durable re‐stocking and strong auto OEM volumes provided flip to Industrial paints. While KNPL’s raw material basket witnessed some relief in Q2 with TiO2 prices declining by 7.7%, ove

18/10/2017 3:38:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy TV18 Broadcast Ltd For Target Rs.50 - Kotak Sec

While TV18 Broadcast’s 2QFY18 results have come in below estimates (PAT Rs 73 mn vs est. Rs 134 mn), we believe: i/ a large part of underperformance relative to estimates is on account of GST-related disturbances (therefore likely nonrecurring), and the advertising environment is likely to pick up significantly in the coming quarters, ii/ the company has undertaken significant cost initia

18/10/2017 3:28:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Persistent Systems Ltd For Target Rs.730.00 - Prabhudas Lilladher

Persistent Systems 2QFY18 results were a mixed bag.  Revenues were in‐line with our estimates while the quantum of EBIDTA margin expansion was below our estimates. Revenues at USD118.1mn were up 4.5% QoQ (Organic growth for the quarter stood at 2.9% and rest was on account of PARX acquisition). EBIDTA margin at 15.2% was up 90bps QoQ and marginally below our estimates (15.5%). Headcount

18/10/2017 3:00:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Cyient Ltd For Target Rs.576.00 - Kotak Sec

Cyients USD revenue grew by 6.6% QoQ to USD150mn in 2QFY18 vs our estimate of USD 146.2mn.Core service business grew by 4% QoQ after 3.1%. The growth was further supported by DLM business which grew by 33.5% to USD15.8mn vs our estimate of USD14.55mn.

However, some near term headwinds being faced by Cyient largest Client UTC owing to work load rebalancing can be a matter of concern. E

18/10/2017 2:51:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Bajaj Finance Ltd For Target Rs.2,000.00 - Emkay

* Bajaj Finance’s (BAF) Q2FY18 earnings missed our estimates marginally; however, the operating performance was broadly in line with expectations with AUM, PPOP as well as PAT growing at a 35%+ run rate

* Notably, continued expansion in its distribution reach helped BAF acquire 1.32mn new to Bajaj customers, up 60% yoy (notwithstanding the pre-GST destocking exercise by dealers

18/10/2017 1:14:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.2,000 - Motilal Oswal

IIB announces merger with BHAFIN

Gains strong edge in rural distribution; synergies to further boost earnings

IndusInd Bank (IIB) finally announced the long awaited merger with Bharat Financial Inclusion (BHAFIN). As per terms of the agreement IIB will issue 639 shares for every 1000 shares of BHAFIN to the

18/10/2017 1:06:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sterlite Technologies Ltd For Target Rs.318.00 - Emkay

Forecast EPS CAGR of 40% for FY17-20E

* Reiterate BUY with 21% upside to our revised TP (+18%). In addition to its strong profit momentum, we believe SOTL’s earnings visibility is one of the highest within the sector.

* This is supported by its track record of new capacity expansion, robust optic fiber demand and strong efficiency impr

18/10/2017 1:00:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Industries Ltd For Target Rs.1,005 - Motilal Oswal

Standalone EBITDA in line; RJio delivers +ve EBIT from 1st quarter itself

Reliance Industries’ (RIL) 2QFY18 standalone EBITDA rose 23% YoY (+12% QoQ) to INR129.8b, largely in line with our estimate of INR126b. PAT rose 7% YoY (+1% QoQ) to INR82.6b, below our estimate of INR88.2b, due to higher interest expense of INR13b (est. of INR9.4b) and a hi

18/10/2017 12:53:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Finance Ltd For Target Rs.2,300.00 - Motilal Oswal

Strong growth continues; RoE of 20%+ despite large capital raise n Bajaj Finance’s (BAF) 2QFY18 PAT increased 37% YoY to INR5.57b (2% miss). Performance across parameters was largely in line with the trend. 

*  AUM continued its robust growth trajectory (+38% YoY, +5% QoQ) to reach INR721b, led by impressive growth in consumer finance (+42% YoY) and commercial business

17/10/2017 4:18:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Colgate Ltd For Target Rs.1,325.00 - Motilal Oswal

Volumes miss, but high rural salience to drive performance

* Colgate’s (CLGT) volumes declined 0.9% YoY (est. of +7%) in 2QFY18. Realization was slightly lower than expected, and thus, sales grew only 2.7% YoY to INR10.8b. EBITDA was up 9.4% YoY (est. of +17.1%) to INR3b. Adj. PAT declined 2.1% YoY to INR1.8b (est. of +10.7%). Market share in too

17/10/2017 4:00:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Prime Focus Ltd For Target Rs.130.00 - Motilal Oswal

Set to run the show Forte in global media services to drive profitable growth

* Prime Focus Ltd (PFL) is a full-service media player offering creative solutions, including visual effects (VFX), animation, 3D conversion and media-focused ERP solutions, in India and abroad.

* The company turned profitable in FY17 post completion of the M&A

17/10/2017 3:56:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Persistent Systems Ltd For Target Rs.660.00 - Emkay

* Persistent reported largely inline revenues at US$118mn up 4.5% QoQ with organic revenue growth of 2.9% QoQ. Revenue growth was aided by strong growth in Digital business and continued traction in Services business. US$ revenues from Accelerite increased by 2% QoQ while Alliance (i.e IBM) revenues declined by 2.3% QoQ

* EBITDA margins at 15.2% were tad better than our estimate and i

17/10/2017 3:46:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Delta Corp Ltd For Target Rs.267.00 - Emkay

Further traction in growth ahead; maintain BUY

* 2QFY18 net profit of Rs433m (+35% YoY, +112% QoQ) trounced expectations at 117% of our estimates.

* Coming quarters, we expect even stronger earnings growth momentum, driven by rising footfalls in Goa/Sikkim casinos and ramp up of online gaming business.

* On that, we lift our FY18/F

17/10/2017 3:39:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Federal Bank Ltd For Target Rs.144.00 - Prabhudas Lilladher

FB reported strong net earnings of Rs2.64bn (first quarter post Q4FY15) mainly led by strong NII growth of ~24% and loan growth of ~25% YoY (despite higher base of bought loan book). Credit cost which had remained a elevated for the last few quarters is stabilizing and bank expect it to remain at steady range for next few quarters. Bank continues to focus on upgrading technology, improving proc

17/10/2017 3:30:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy South Indian Bank Ltd For Target Rs.36.00.00 - Motilal Oswal

PPoP growth offset by elevated provisions; asset quality stable

* South Indian Bank (SIB) reported robust PPoP growth of 21%/55% QoQ/YoY on the back of strong other income (fee income growth of 1.2x, led by lumpy PSLC fees of INR590m). As % of total income, other income was the second highest in 13 quarters (36%), except 3QFY17. However, elevated provi

17/10/2017 3:16:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Reliance Industries Ltd For Target Rs.800.00 - Prabhudas Lilladher

Strong performance: RIL reported highest quarterly profits in Q2FY18. Results were in line with our estimates; Standalone EBITDA of Rs129.8bn (PLe: Rs126.4bn), PAT of Rs82.7bn (PLe: Rs84.6bn). Healthy performance was supported by better than expected petrochemicals profitability partly nullified by higher interest and tax charges.  

*

17/10/2017 3:08:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cyient Ltd For Target Rs.600.00 - Motilal Oswal

Both engines firing… …

on track to achieving double-digit growth in FY18

* Strength in Services and DLM: 4.2% QoQ growth in Services and 34% QoQ growth in Rangsons drove in-line revenue growth of 6.5% QoQ. Double-digit growth expectations for FY18 get validated by the performance so far, placing

16/10/2017 3:45:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy MCX Ltd For Target Rs.1,300.00 - Motilal Oswal

* Total volumes at MCX traded during the quarter stood at INR14.1t, up 17.0% QoQ and down 14.0% YoY.

* Volumes at MCX have been severely impacted post demonetization. Barring bullion, other commodities have been seeing stability in the past few months. Gold volumes in 2QFY18 are down 38.7% YoY. However, volumes have seen a sharp rebound on a sequential basis, growing by 12.0% YoY, whi

16/10/2017 3:36:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy United Spirits Ltd For Target Rs.2660.00 - Choice Broking

• United Spirits (USL), is the largest spirits company in India and a flagship entity of UB group. It manufactures wide range of whisky, vodka, rum and other spirits. United Spirits is among the top three spirits companies in the world. USL has a global footprint with exports to over 37 countries. It has a sizeable presence in India with distilleries and sales offices all across the countr

16/10/2017 3:24:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Bharti Airtel Ltd For Target Rs.460.00 - Emkay

* Bharti Airtel has been driving the ongoing industry consolidation with 5 big deals in the last 15 months. In the latest deal, it has agreed to merge the consumer business of Tata Teleservices (TTSL), which includes both Mobility Services as well as Data (dongles).

* TTSL has 40mn subscribers (35mn VLR subscribers) with a revenue market share (RMS) of 5.9% as of Q1FY18. Bharti will t

16/10/2017 3:11:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Reliance Industries Ltd For Target Rs.843.00.00 - Emkay

* Standalone PAT came lower than expected at Rs82bn (vs our estimate of Rs93bn), mainly on account of: 1) capitalization of interest & depreciation and higher tax outgo due to commissioning of new projects. However, positive EBIT in JIO (Rs2.6bn) surprised us positively.

* JIO has reported net revenue of Rs61.5bn (net of GST) and EBITDA of Rs14.4bn with EBITDA margin of 23.5%. Tot

16/10/2017 3:01:39 PM | Posted in Broking Firm Views - Long Term Report read full news