Sell Bharat Heavy Electricals Ltd For Target Rs.78.00 - Motilal Oswal

Operating performance below expectations; maintain Sell

* 2QFY18 operating performance disappoints: Sales came in muted at INR61.7b (-5.5% YoY) in 2QFY18, below our estimate of INR68.9b, led by weak execution in Industrial (-28% YoY) and lower sales in Power (INR50.6b; -3.6% YoY). Sales during the quarter were impacted

17/11/2017 2:44:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Cipla Ltd For Target Rs.600.00 - Motilal Oswal

Domestic business recovers strongly; GM includes one-time cost

* 2QFY18 revenue grew 9% YoY to INR40.8b (~5% miss). Gross margin shrunk to 61.1%, from 63.8% in 2QFY17 and 65.7% in 1QFY18. Reclassification of GST and other one-time charges led to a contraction in GM by ~200-250bp. CIPLA estimates GM at ~64% in 2H. EBITDA came in at INR8.04b (4% beat),

17/11/2017 2:37:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Eclerx Services Ltd For Target Rs.1,240.00 - Emkay

* eClerx Services reported revenue of US$48.4mn (-0.8% qoq, -1% yoy), better than our estimate of a 2.3% decline. Constant Currency (CC) revenue declined by 1.8% qoq.

* Revenue beat was driven by better-than-expected performance of emerging clients across 3 verticals (revenue up 11% qoq, contributing 29% to total revenue).

* EBIT margin came in at 25.2%, down 160bps qoq lowe

17/11/2017 2:25:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Lupin Ltd For Target Rs.1,000.00 - Motilal Oswal

Goa and Indore plant receives Warning Letter

~1/3rd of pending ANDAs from these two facilities

* No data integrity issue was highlighted in the warning letter. Two key things highlighted by US FDA in the Warning Letter was – 1) investigation of OOS studies was not proper; 2) hold time study procedure re

17/11/2017 2:24:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apar Industries Ltd For Target Rs.898.00 - Emkay

* Apar Industries’ (Apar) reported a disappointing Q2FY18 earning below our and consensus estimate. While revenues declined 2.9% yoy to Rs12.5 bn; EBITDA declined 13.0% yoy to Rs915 mn and PAT declined 43.3% yoy to Rs262 mn during the quarter

* Revenue declined across the conductors segment by 31.4% yoy to Rs4.9 bn on account of 28.1% yoy decline in volumes. Revenues across its

17/11/2017 12:42:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold KPIT Technologies Ltd For Target Rs.147.00 - Reliance Sec

Solid Performance; Upgrade to HOLD

KPIT Technologies (KPIT) has delivered a stellar performance in 2QFY18 with its revenue growing by a healthy 5.5% QoQ (4.3% QoQ in CC terms) to US$141.8mn. Notably, revenue growth was led mainly by Product Engineering business, which grew by a strong 13.2% QoQ in USD terms. Despite wage hike impact, EBITDA margin exp

17/11/2017 12:36:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Apollo Tyres Ltd - Equirus Sec

Apollo Tyres (APTY) reported below-expected 2Q numbers due to the India margin miss and disappointment on both sales and EBITDA fronts in Europe. India volumes grew by a strong 10% (in line with EE) driven by robust growth in OEM sales, which pushed up the OEM revenue share by 6% yoy. We don’t expect APTY’s margin expansion in 2H to match our expectations, and therefore cut our FY18

17/11/2017 12:30:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Orient Cement Ltd For Target Rs.142.00 - Emkay

* Orient Cement’s Q2 result was marginally below our estimates with EBITDA at Rs746mn against estimated Rs776mn and EBITDA/tn at Rs570 against estimated Rs615. Strong improvement in realization led to 4.5x yoy increase in EBITDA.

*  Sales volume was up 11.5% yoy to 1.31mt (vs. estimated 1.26mt). Capacity utilization was at 65% against 59% in Q2FY17. Change in billing method

17/11/2017 12:23:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral SITI Cable Network Ltd For Target Rs.27.00 - Motilal Oswal

Phase 3/4 monetization to boost revenue

* EBITDA miss led by subdued revenue: Revenue declined 3% QoQ to INR3,523m (in-line) due to a steep 48% QoQ fall in activation revenue. EBITDA fell 33% QoQ to INR672m (13% miss) on the back of a subdued top line and a 12% rise in other expense. Margin shrunk 860bp QoQ to 19%. Net

16/11/2017 4:14:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ramco Cements Ltd For Target Rs.717.00 - Emkay

* Ramco Cements’ Q2FY18 operating performance was above our estimate, with EBITDA at Rs2.6bn against estimated Rs2.1bn and EBITDA/tonne at Rs1,193 against estimated Rs974, led by higher-than-estimated realization (Rs250/tn higher-than-estimate).

* Sales volume grew by 6.3% yoy to 2.15mt (vs. our estimate of 4.2% yoy growth). Realization was flat yoy (but up 3.8% qoq) to Rs4,783/

16/11/2017 4:10:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zensar Technologies Ltd For Target Rs.1,020.00 - Motilal Oswal

Waiting for the big guns to start firing

* Revenue beat despite IM weakness: ZENT’s 3.3% QoQ CC growth was higher than our estimate of +2.3%. In USD terms, revenue grew 3.8% QoQ to USD119m. While Application Services grew 5.2% QoQ CC, a decline in Infrastructure Management (IM) dragged growth lower. EBITDA margin expanded 140bp QoQ to 11.6%, desp

16/11/2017 4:05:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral KEC International Ltd For Target Rs.350.00 - Motilal Oswal

Operating performance above expectations led by margins beat

* Revenue performance below estimates: Consol. revenue grew 3% YoY to INR21.3b in 2QFY18. We note that revenue growth would be been much better at 5% YoY if not for the GST-led impact. All business segments, excluding T&D, witnessed growth. T&D business including SAE Tower sales decli

16/11/2017 3:58:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Glenmark Pharmaceuticals Ltd For Target Rs.733.00 - Prabhudas Lilladher

* Adj. Revenues, EBITDA, PAT, EU Revenues above estimates: Glenmark (GNP) sales and adj. EBITDA and PAT were Rs22.2bn, Rs3.3bn and Rs2.1bn respectively vs our estimates of Rs21.4bn, 1.1bn and Rs83mn respectively in Q2FY18. The higher revenue was due to growth of 49% YoY in EU sales while beat in headline profits were due to strong cost controls in COGS, R&D

16/11/2017 3:53:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maharashtra Seamless Ltd For Target Rs.560.00 - Kotak Sec

MSL Q2FY18 PAT declined 12.5% YY despite significant growth in revenue due to execution of low margin legacy orders. EBITDA margin contracted YY due to 1/ booking of low margin legacy orders and 2/ high base of Q2FY17.

We consider that this is a quarterly aberration and maintain our FY19 earnings estimate. We believe that MSL valuations can get rerated on back of strong growth in comp

16/11/2017 3:48:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apollo Tyres Ltd For Target Rs.290.00 - Emkay

* Apollo Tyres’ consolidated EBITDA margin expanded by 220bps qoq to 10.5% (Emkay Est: 11.2%; Consensus Est: 11.2%), supported by higher standalone margin, owing to benign RM cost and a low base. Margin was below estimate due to weak margin in the European operations amid the ramp-up phase of the Hungary plant.

* We downgrade FY18E/FY19E EPS by 23%/19% to Rs12.7/Rs18.3, led by 1

16/11/2017 3:36:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral GE T&D India Ltd For Target Rs.440.00 - Motilal Oswal

Operating performance above expectations

* Performance aided by margin improvement: Sales grew by a muted 4% YoY to INR8.7b in 2QFY18, below our estimate of INR9.3b, impacted by deferment of sales on account of GST implementation. EBITDA stood at INR805m, higher than INR349m in 2QFY17 and our estimate of INR700m, led b

16/11/2017 3:30:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Gujarat Gas Company Ltd For Target Rs.721.00 - Motilal Oswal

Roller coaster continues; both volume and EBITDA/scm poor

* GUJGA reported EBITDA of INR2.0b (-3% YoY, -25% QoQ), below our estimate of INR2.3b, led by a lower-than-expected margin. PAT came in at INR611m (-12% YoY, -41% QoQ), significantly below our estimate, led by higher-than-expected interest cost and lower-than-expected other income.

*

16/11/2017 3:23:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Music Broadcast Ltd - Equirus Securities Ltd

Music Broadcast Limited’s (MBL) 2QFY18 revenues grew 10% yoy to Rs 758mn, in line with EE. Revenue growth was mainly driven by higher volumes (new station launches) and better pricing in legacy stations. Normalised EBITDA margins contracted 446bps yoy as other expenses increased with new station launches and higher marketing expenses. Advertising spends picked up in the months of Septembe

16/11/2017 3:03:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Titan Industries Ltd For Target Rs.759.00 - Prabhudas Lilladher

We are upgrading TTAN from Accumulate to BUY as we increase FY18 and FY19 EPS estimates by 20‐25%. This follows 68.5% PAT growth in 2Q18 led by 1) 49% grammage growth in jewellery 2) 260bps jewellery margin expansion 3) smart margin recovery in watches despite absorbing higher GST and 2% additional dealer discounts 4) market share gain in Jewellery and 100bps share gain in watches in LFS. We

16/11/2017 2:48:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shree Cement Ltd For Target Rs.21,913.00 - Kotak Sec

* Company’s revenues for Q2FY18 reported an improvement of 6% YoY,marginally lower than our estimates. Growth in revenues was mainly led by 7%YoY improvement in cement volumes and 5% YoY jump in cement realizationsbut impacted by sharp fall in power segment sales.

* Operating margins stood strong at 26.2% for the quarter, though impacted byhigher costs such as pet coke and diese

16/11/2017 2:40:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Indian Bank Ltd For Target Rs.438.00 - Motilal Oswal

Strong operational performance with asset quality improvement

* INBK reported PAT of INR4.5b (13% beat) v/s INR4.05b in 2QFY17, led by strong revenue growth and controlled operating expenses.

* NII grew 21% YoY to INR15.4b (5% beat), led by 13% YoY loan growth and a 12bp QoQ improvement in the global margin. This, supported by healthy 22% YoY growth i

16/11/2017 2:30:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Symphony Ltd For Target Rs.1,213.00 - Emkay

* Symphony’s (SYML) Q2FY18 operational performance surpassed our expectations. While sales grew by 23% yoy, EBIDTAM increased by 54bps yoy and PAT expanded by 19% yoy.

* SYML had withdrawn introductory discounts on Touch series models from July’17 and increased prices by 15-23% across various models. These price hikes enabled SYML to report strong EBITDAM of ~35%.

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16/11/2017 2:29:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral BSE Ltd For Target Rs.1,100.00 - Motilal Oswal

Continued thrust in new segments but dependence on this is still too low

*  Overall beat led by higher revenue: BSE’s 2QFY18 revenue declined 11.5% YoY to INR1,232m, better than our estimate of INR1.132m (-18.7% YoY). The revenue beat also led to a higher-than-expected EBITDA margin of 31.2% (- 160bp YoY; est. of 16.3%). PAT declined by 4.2

16/11/2017 1:20:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Union Bank of India For Target Rs.175.00 - Motilal Oswal

Loss led by muted PPoP growth and high provisions

* UNBK reported a loss of INR15.3b. PPoP growth of -6%/+7% QoQ/YoY was nullified by elevated provisions of INR35.5b (119% YoY). Provisions included INR327m of additional provisions towards standard accounts in telecom and power sector; however, NPA provisions also remained elevated at INR34.6b, owing to

16/11/2017 1:16:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shriram City Union Finance Ltd For Target Rs.2,650.00 - Motilal Oswal

He adwinds wither, albeit slowly

*  2QFY18 PAT declined 3% YoY to INR2.0b. Operating profit rose 20% YoY (3% beat), driven by strong loan growth and controlled opex. However, a sharp increase in credit costs (+71% YoY) weighed on the bottom line.

* Recovery has been slow post demonetization and rollout of GST. In the last four quarters s

15/11/2017 3:55:22 PM | Posted in Broking Firm Views - Long Term Report read full news