Buy Equitas Holding Ltd For Target Rs.210.00 - Motilal Oswal

Risk aversion mars growth; bank transition drags profits lower

* In a quarter marred by uncertainty over the MFI portfolio, Equitas’ PAT fell 85% YoY/QoQ to INR69m (~82% miss). Flat AUM QoQ, interest reversal on MFI loans (INR38m) and a decline in high-yielding loans led to net interest income miss of 7% (-4% QoQ, but +30% YoY). NIM contracted 7

17/05/2017 12:09:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Coal India Ltd For Target Rs320.00 - Emkay

Production slowing down while dispatch improved…

Coal India’s production fell down by 4.7% while dispatch picked up by 6% YoY.

* For the month of April’17, dispatch stood at 45.29 mt (+6%/-13% YoY/MoM). This was 91% of the target for the month. On per day basis dispatch stood at 1.5 mt/day, -10% MoM

16/05/2017 1:49:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.592.00 - Religare Sec

Another quarter of strong performance…

Zee Entertainment Enterprises Ltd (ZZEL) reported healthy Q4FY17 results on all parameters. Post demonetisation, advertising revenue was under pressure for media companies, however, the ad industry growth is back on growth track. Digitisation has played a major role in terms of bringing incremental subscrip

16/05/2017 1:41:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Asian Paints Ltd For Target Rs.1,171.00 - Prabhudas Lilladher

APNT reported low double digit volumes in decorative business and improved growth in automotive and Industrial paints indicating gradual improvement in demand. Long term demand outlook looks bright, notwithstanding near term disruption in 1HFY18 due to GST implementation. Input cost scenario looks challenging with firm Tio2 and monomer prices forcing 5.7% price increase in past 3 months. We bel

16/05/2017 1:32:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Gujarat Mineral Development Corporation Ltd For Target Rs.150.00 - Equirus Sec

Volume growth to remain robust, GST strong trigger for pricing, maintain LONG

GMDC posted strong numbers during 4Q with 116% yoy EBITDA growth, which came 21% ahead of EE, driven by 31% yoy growth in lignite sales volume and corresponding benefit of operating leverage. Mine closure expenses declined 47% yoy as company has already completed full provisi

16/05/2017 12:31:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Greaves Cotton Ltd For Target Rs.190.00 - Sharekhan

Key points

* Weak operating performance:

Greaves Cotton has reported a weak operating performance across the key parameters in Q4FY2017. The topline fell by 3.4% YoY to Rs390.7 crore (slightly below our estimate of Rs404.5 crore), driven by a 6% YoY drop in the Engine segment revenue. Subdued demand in Three Wheelers (3W) a

16/05/2017 12:24:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Godrej Consumer Products Ltd For Target Rs.1,846.00 - Reliance Sec

Resilient Performance but Valuations Pricey

Godrej Consumer Products (GCPL) has posted an impressive performance in 4QFY17 with its consolidated revenues, EBITDA and consolidated net profit growing by 11.8% YoY, 19.3% and 22% to Rs23.8bn, Rs5.4bn and Rs3.8bn, respectively. While its domestic business grew by 10% YoY, international business revenues inc

16/05/2017 12:19:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Cholamandalam Investment and Finance Company Ltd For Target Rs1,350.00 - Emkay

Moving ahead steadily

* Cholamandalam Finance’s (CIFC) Q4FY17 performance was better than expected despite transitioning to 90-dpd NPL recognition; Vehicle finance division delivered strong performance while home equity segment witnessed a subdued quarter

* Gross NPLs rose to 4.7% on 90-dpd NPL recognition basis as against 3.8% in Q3FY1

16/05/2017 12:13:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Emami Ltd For Target Rs.1,50.00 - Motilal Oswal

Sales and EBITDA decline as expected; International business the key drag

* Emami's (HMN) 4QFY17 consolidated sales declined 4.4% YoY (est. of -2.1%) to INR5.78b. Domestic volumes fell 1.5% YoY (est. of -4%). Domestic sales grew 3% YoY, but the international business (-38% YoY) was severely affected.

* Gross margin contracted 150bp YoY (

16/05/2017 12:06:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Nutral Union Bank of India Ltd For Target Rs.174.00 - Motilal Oswal

Elevated provisioning leads to pre-tax loss; net slippages down QoQ

* UNBK reported pre-tax loss of INR3.1b, led by elevated provisioning (+42% beat). While net income was largely in line, controlled opex performance (7% beat) led to a beat on PPoP (+51% YoY, 12% beat).

 

* Key Highlights:

15/05/2017 2:51:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra CIE Automotive Ltd For Target Rs.297.00 - Sharekhan

Company Snapshot

Mahindra CIE Automotive Ltd (MCAL) is head quartered in Mumbai and is amalgamated entity between Mahindra group and CIE Automotive after combining their forging and other automotive component businesses. The Company offers forging and casting components to passenger vehicles in India and Supply forging components to commercial and pas

15/05/2017 2:27:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.568.00 - LKP Sec

Decent set of numbers in difficult times

Zee’s topline fell by a slight 0.3% as domestic subscription revenues and international revenues posted weak performance. Domestic Advertising revenues showed resilience by growing 8.6% (ex-sports business) despite the DeMo pangs having a negative impact on the FMCG sector. Subscription revenues were down

15/05/2017 2:19:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce On Asian Paints Ltd For Target Rs.1,059.00 - Equirus Sec

Double digit volume growth a positive surprise; earnings momentum to slow down while rich valuations limit upside; Retain REDUCE

APNT reported revenue growth of 8% yoy, in-line with EE on consolidated basis with standalone sales increasing by 9% yoy with strong volume growth (low double digit volume growth in decorative paints). Gross margins contracted by 151/16bps o

15/05/2017 2:11:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NBCC Ltd For Target Rs.245.00 - Sharekhan

Key points

* Acquisition to be EPS accretive from FY2018 itself:

NBCC India completed the acquisition of Hindusthan Steelworks Construction Ltd (HSCL) for Rs35 crore (for a 51% stake) on April 1, 2017. HSCL is a debt-free company and has an order backlog of Rs8,000 crore (60% PMC and 40% EPC) as of the start of FY2018. In FY

15/05/2017 2:02:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HDFC Bank Ltd For Target Rs.1,786.00 - Reliance Sec

Improving Outlook; Maintain BUY

HDFC has reported a strong performance in line with our estimate for another quarter led by strong growth in NII (+13.2% YoY and 12.7% QoQ to Rs31.2bn) and lower operating expenses (+12.8% YoY and -11.1% QoQ to Rs1.9bn). Overall AUM growth remained healthy at 16% YoY, led by continued pick-up in non individual loans book

15/05/2017 1:55:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Dabur India Ltd For Target Rs280.00 - Emkay

Growth challenges persist in most of its categories; Maintain HOLD

* Domestic FMCG grew 0.1% yoy with volume growth of 2.4%. Healthy growth in Foods portfolio (+10%); however, Hair care (-4%) & Home care (-6.5%) performance was subdued. EBITDA margin healthy aided by lower media spends and employee expenditure

* International business dec

15/05/2017 1:48:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Nutral On Canara Bank Ltd For Target Rs.380.00 - Motilal Oswal

Gross slippages jump QoQ; elevated provisions led to PAT miss

* Canara Bank’s (CBK) earnings (INR2.1b; -105% YoY) missed our estimate by ~53% due to elevated provisions of INR27.1b (27% miss). Loan growth for FY17 stood at 5% YoY, with infra loans (15% of advances) declining 8% YoY, but retail loans growing 7% YoY.

 

* R

15/05/2017 1:41:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive Apollo Tyres Ltd For Target Rs.266.00 - LKP Sec

Muted Q4, new plant commission and momentum in auto sector to drive growth

Higher RM costs have a sinking effect on profitability

Apollo’s standalone net sales grew by 10.6% yoy and 8.3% qoq to ₹ 25.9bn. The yoy growth came on the back of 9% blended volume growth, out of which the PCR segment contributed 20%, while T

12/05/2017 5:15:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Zee Learn Ltd - Ventura Sec

Zee Learn is fast emerging as a dominant player in the play school and K12 segment through its Kidzee and Mount Litera Zee School (MLZS) brands. The compelling growth dynamics of the Indian demographics, rising affluence and a strong ethos of good quality education are expected to drive growth for education in the country. Being predominantly a franchisee based business, we believe that Zee Lea

12/05/2017 3:10:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apollo Tyres Ltd For Target Rs.270.00 - Sharekhan

Key points

* Weak operating performance; hardening RM prices dent margins:

Apollo Tyres (ATL) has reported a weak operating performance for Q4FY2017, with the results coming below our as well as consensus estimates. The consolidated topline for the quarter grew by 10% YoY to Rs3,326 crore (lower than our estimate of Rs3,759

12/05/2017 2:58:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold ICICI Bank Ltd For Target Rs.287.00 - Reliance Sec

Lacklustre Performance Continues; Reiterate HOLD

ICICI Bank has reported lacklustre performance on operating as well as asset quality front in 4QFY17. Its operating profit declined by 28.1% YoY and 7.5% QoQ to Rs51.1bn, while asset quality continued to remain under stress with fresh slippages of Rs112.9bn vs. Rs70.4bn in 3QFY17 and Rs70bn in 4QFY16. M

12/05/2017 2:45:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate UPL Ltd For Target Rs994.00 - Emkay

Geographical diversification continues to drive growth

* UPL posted yet another quarter of double-digit volume growth at 21% yoy driven by strong performance North America, Europe and RoW where revenues increased by 25%/21%/ 28% yoy respectively. Latin America also posted healthy sales growth of 17% yoy.

* Consolidated revenues came 6% ahead

12/05/2017 2:38:01 PM | Posted in Broking Firm Views - Long Term Report read full news
Nutral ABB India Ltd For Target Rs.1,200.00 - Motilal Oswal

Q1CY17 results below estimates; orders grow 28% YoY

Gross margins highest since CY08; offset by higher other expenses

* Sales at INR21.7b (+8% YoY) marginally below our estimate of INR22.1b. Sales growth driven by a 11% growth in Robotics and Motion and a 13% growth in Power Grid

* Gross margins at 36.2% (+30bps Yo

12/05/2017 2:28:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Ambuja Cement India Ltd For Target Rs228.00 - Emkay

Sales volume in line; higher opex impacts operating performance

* Ambuja Cements’ (ACEM) result was below our estimates with EBITDA at Rs3.7bn against estimated Rs4.2bn and EBITDA/tn of Rs606 against estimated Rs699 led by lower realization (3% below estimates) and higher operating costs (freight and employee).

* Sales volume was at 6mt

11/05/2017 3:00:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki India Ltd For Target Rs.6,861.00 - LKP Sec

Gujarat plant commencement led to margin decline in Q4

Maruti Suzuki India Ltd (MSIL)’s Q4 FY17 numbers came broadly in line with street expectations at the revenue level, however at the margin level, it was a tad bit below expectations. The top-line grew by 19.8% yoy and 8.7% qoq at ₹183bn. Despite volumes in the quarter having grown by 15.1% yoy, net realiz

11/05/2017 2:54:35 PM | Posted in Broking Firm Views - Long Term Report read full news