Buy Muthoot Finance Ltd For Target Rs.550.00 - Motilal Oswal

Strong quarter; operating leverage benefits playing out

* Muthoot Finance’s (MUTH) 1QFY18 PAT grew 30% YoY (and 9% QoQ) to INR3.51b (in-line). Though there was a 5% revenue miss, it was offset by lower-than-expected provisioning.

* AUM growth remained anemic at 8% YoY (2% QoQ) to INR278b. The management has guided ~10% AUM growth in go

19/09/2017 2:38:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Communications Ltd For Target Rs.822.00 - Religare Sec

Turning the corner

It’s portfolio includes transmission, IP, converged voice, mobility, managed network connectivity, hosted data centre, communications solutions and business transformation services to global and Indian enterprises & service providers, as well as broadband and content services to Indian consumers. Its services portfolio incl

19/09/2017 2:34:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Electronics Ltd For Target Rs.210.00 - Motilal Oswal

Robust execution leads to better than expected performance

* 1QFY18 operational results ahead of estimates: BHE reported revenue of INR17.2b (+98% YoY; our estimate: INR12b) and operating profit of INR1.6b (v/s loss of INR0.5b in 1QFY17; our estimate: loss of INR0.2b). Net profit rose 247% YoY to INR1.3b. Exports were USD4.4m (INR286m

19/09/2017 2:30:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Berger Paints India Ltd For Target Rs.255.00 - Emkay

Steady performance amid challenges; Retain Hold

* Consolidated revenue at Rs12.5bn, up 11.5% yoy; EBITDA down 5.1% yoy to Rs1.9bn; EBITDA margin at 14.8% (-260bps yoy); APAT at Rs1.1bn, down 6.5% yoy

* Decorative volume growth at ~6% led by distribution expansion and healthy growth in advertised products. General and Automotive business repor

19/09/2017 2:26:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Venkys India Ltd For Target Rs.2,650.00 - Kotak Sec

Following some weakness in July/ early August, poultry prices have picked up significantly over the last one month. In the one month ending 15th Sep, broiler prices were, on average ~30% higher (y/y). Along with continued weakness in key raw material prices, these trends augur well for near-term earnings, and provide greater visibility on FY18 earnings (2HFY18 has a favorable base, due to demon

19/09/2017 2:22:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate OCL India Ltd For Target Rs.1,317.00 - Emkay

Good operating performance continues

* OCL India reported better-than-estimated Q1FY18 results, with EBITDA of Rs2bn against estimated Rs1.8bn, led by: a) lower loss in Refractories segment (derived EBITDA loss at Rs23mn vs. estimated Rs150mn, and b) 3% beat in Cement segment’s EBITDA.

* Sales volume was up 3.2% yoy at 1.6mt. Realizatio

18/09/2017 4:01:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy DCB Bank Ltd For Target Rs.210.00 - Equirus Sec

We recently met the management of DCB Bank (DCB) and key takeaways are: (1) Despite intense competition, focus remains on maintaining healthy asset quality. (2) The bank intends to double its balance sheet in the next 3.5 years driven by growth in small-ticket loans. (3) Productivity improvement from newly-added branches would bring down the C/I ratio. (4) DCB is offering SA interest rates of 6

18/09/2017 3:56:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate NHPC Ltd For Target Rs.33.00 - Emkay

Upgrade to ACCUMULATE on better project execution visibility

* Q1FY18 PAT came in at Rs8.6bn, which was broadly in line with our expectation of Rs8.4bn. Generation increased 13.0% yoy to 8.55bn units while realization was down 5.6% yoy to Rs3.1/unit. Revenue increased 6.7% yoy to Rs23.3bn.

* NHPC didn’t commission any fresh capacity dur

18/09/2017 3:50:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy TVS Motor Company Ltd For Target Rs.610.00 - Sharekhan

Key points

* Q1FY2018 operating performance in line with estimates, excluding one-off expenses:

TVS Motors’ (TVSM) Q1FY2018 results were impacted by one-off expenses. The topline for the quarter at Rs.3,399.5 crore increased by robust 18% YoY (broadly in line) on account of strong 11.7% YoY volume grow

18/09/2017 3:42:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NMDC Ltd For Target Rs.180.00 - Motilal Oswal

Strong operating performance; pricing power improving

Valuations are compelling; Reiterating Buy

1QFY18 adj. EBITDA grew 98% YoY (+13% QoQ) to INR16.2b, exceeding estimate by 7%, due to higher regional and mix premiums. EBITDA is adjusted for (a) rail line doubling payment of INR411m and (b) expected credit loss of INR815m, w

18/09/2017 3:37:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Talwalkars Better Value Fitness Ltd For Target Rs.346.00 - Religare Sec

On a steady growth path

Talwalkars Better Value Fitness Ltd. (TBVFL) reported inline numbers for Q1FY18 with a net revenue and PAT growth of 12.9% & 28.9% YoY. Led by cost efficiencies, EBITDA margins expanded 200bps YoY to 50.2%, which was encouraging. We remain positive on TBVFL's medium to long term growth prospects given the bright prospect

18/09/2017 3:30:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Container Corporation of India Ltd For Target Rs.1,214.00 - Motilal Oswal

Beat led by volume growth and margin expansion

* Revenue increased 9% YoY (-6% QoQ) to INR14.5b in 1QFY18, ahead of our estimate of INR13.8b, led by strong volume growth. EBITDA of INR3.3b (+25% YoY, -34% QoQ) too exceeded our est. of INR2.6b, boosted by (i) strong volume growth (market share gains), (ii) Margin expansion (higher double-stacking and lo

18/09/2017 3:21:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ONGC Ltd For Target Rs.185.00 - IIFL

Multiplication of 360 degree by applying square of 9 from the significant high of Rs212 is placed around Rs158. The same coincides with 61.8% retracement mark of the entire move from Rs125 to Rs212. So, base building pattern was seen around the point of confluence (between Rs155-158). In previous week’s trade, ONGC attempted to breakout from the base building pattern, suggesting a medium-

18/09/2017 2:52:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold GlaxoSmithKline Consumer Healthcare Ltd For Target Rs. 5,715.00 - Sharekhan

Key points

*  Revenue stood flat; high input prices and lower operating leverage affected OPM:

GlaxoSmithkline Consumer Healthcare’s (GSK Consumer) revenue declined marginally by 1.3% YoY to Rs.1,045.9 crore in Q1FY2018 on account of canteen stores department (CSD) consumption loss and reduction i

16/09/2017 2:41:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Suzlon Energy Ltd For Target Rs. 26.00 - Emkay

The tunnel just got over

Two states ready to sign PPAs; Full visibility for FY18 volumes

*  Reiterate BUY with Rs26 TP. Catalysts from PPA agreements in Andhra Pradesh and Karnataka.

*  SUEL stock declined 20% from its May peak levels as investors were worried that the company would fall s

16/09/2017 2:33:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cera Sanitaryware Ltd For Target Rs. 3,153.00 - Equirus Sec

Cera Sanitaryware’s (CRS) 1QFY18 sales were in line with EE (+10% yoy), but EBITDA fell 16% short of EE (-10% yoy) with EBITDA margins coming in at 14.1%, 316bps lower yoy due to higher outsourcing and employee costs. Sanitary-ware/faucet-ware/tiles contributed 58%/21%/19% of 1QFY18 revenues. Demand was hit by GST-led destocking by trade channels in Jun’17. We pare our FY18/FY19 sal

16/09/2017 2:27:31 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Britannia Industries Ltd For Target Rs. 4,660.00 - Motilal Oswal

Be st-of-breed earnings growth visibility commands premium multiples

*  BRIT’s consolidated sales grew 6% YoY (est. of +4%) in 1QFY18. Standalone (S/A) sales increased 6.6% YoY, but subsidiary sales were down 5.9% YoY. We expect base business volume growth to have come in at ~2%, as against our estimate of flat volumes. Thi

16/09/2017 2:19:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Petronet LNG Ltd - Sharekhan

Key points

*  In-line operating profit; Dahej utilisation robust at 96% despite a decline in India’s LNG imports:

Petronet LNG (PLNG) reported operating profit of Rs.744 crore (+15.8% YoY; +20.7% QoQ) for Q1FY2018, in line with our estimate of Rs.750 crore. Strong growth was driven by a sharp incr

16/09/2017 2:10:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Steel Authority of India Ltd For Target Rs. 53.00 - Emkay

Better realization helps restrict loss

*  Revenue stood at Rs130bn (+26% yoy/-9% qoq), which was better than our estimate, backed by better realization. Realization came in at Rs38,242/tonne (+15% yoy/+3.8% qoq) while sales volume was in line with estimate at 3.03mt (+9% yoy/-12% qoq).

*  EBITDA stood at (-)Rs839mn [vs Rs2,338mn in

16/09/2017 2:03:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apex Frozen Foods Ltd For Target Rs.290.00 - Equirus Sec

India’s shrimp industry is still at a nascent stage and has large, untapped potential. India is also a major exporter of shrimps to the US, with its share in US shrimp imports more-than-doubling from ~13% in 2011 to ~31% at 2016. With growing global demand for Indian shrimps, we think large, integrated players such as Apex Frozen Foods (APEX) are on a strong footing. The company’s n

16/09/2017 1:57:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Torrent Pharma Ltd For Target Rs.1,450.00 - Reliance Sec

Domestic Formulation Biz to Sustain Growth Trajectory

Torrent Pharmaceuticals (TRP) is focused on developing complex generic drugs with presence across India, Brazil, US and Emerging Markets. It has a strong presence in high-margin and cash flow sticky chronic segment, which account for ~75% of its total domestic sales. Looking ahead, we expect TRP&rs

16/09/2017 1:50:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Grasim Industries Ltd For Target Rs.1,201.00 - Emkay

Better performance amidst challenges; Maintain HOLD

* Grasim Industries’ Q1FY18 result is above our estimate, with EBITDA at Rs5.6bn coming in ahead of our estimate of Rs5.2bn and OPM of 20.3% against our estimate of 19.7%. EBITDA/kg in VSF stood at Rs28.8 against the estimate of Rs27/kg.

* VSF realization was up 11.5% yoy due to a

15/09/2017 4:00:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kajaria Ceramics Ltd For Target Rs.861.00 - Reliance Sec

Growing from Strength to Strength

Market leadership in tiles, accelerated macro initiatives, implementation of GST, improved operating leverage and strong new product funnel would be the key growth drivers for Kajaria Ceramics, going forward. We expect the Company to post 13.9% revenue and 19.3% earnings CAGR through FY17-19E. We initiate coverage on t

15/09/2017 3:38:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Minda Industries Ltd For Target Rs.881.00 - Equirus Sec

Minda Industries (MNDA) delivered yet another strong quarter with 25% yoy consolidated sales growth in 1QFY18; of this, ~9% growth was driven by the Rinder India (Rinder) acquisition last year, and the rest by ramp-up at alloy wheel business and other subsidiaries. Management stated it would consolidate associate and group companies Mindarika and Ften in 2HFY18; hence, we have included these in

15/09/2017 3:27:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Sanghi Industries Ltd For Target Rs.90.00 - Emkay

Realisation spike leads to EBITDA beat; Downgrade to ACCUMULATE

* Sanghi Industries (SNGI) Q1FY18 result is above our estimate, with EBITDA at Rs661mn against our estimate of Rs536mn and EBITDA/tonne at Rs993 against our estimate of Rs850, led by a steep 37.3% qoq increase in realization.

* Sales volume of cement was flat yoy, but clinker exp

15/09/2017 3:23:21 PM | Posted in Broking Firm Views - Long Term Report read full news