Hold UltraTech Cement Ltd For Target Rs.3,350.00 - Sharekhan

Key points

Demand environment deteriorates due to demonetisation; to affect volume in near term:

Our channel checks with cement dealers across India hint that cement volumes across regions are down 25-40% since demonetisation. Further, the average cement price witnessed a correction of around Rs10/bag in Decem

29/12/2016 11:04:48 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gabriel India Ltd For Target Rs.139.00 - LKP Sec

Can absorb demonetization shock

Gabriel India Ltd (Gabriel), the flagship company of Anand Group is a pioneer in ride control products in automobiles such as 1). Front forks and Rear Shock absorbers used in 2W and 3W 2). Struts and shock absorbers in passenger cars and 3). Shock absorbers and cabin & seat dampers for commercial vehicles. The compan

29/12/2016 10:59:16 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Petronet LNG Ltd For Target Rs.411.00 - Motilal Oswal

Opportunity in the blip

Expect LNG prices to soften

* Spot LNG prices in Asia-Pacific increased from USD4.2/mmbtu in May 2016 to USD8.0 in December 2016 and as much as USD9.2 for February delivery. As a result, LNG import in November declined to 1.5mmt, 5% below monthly import in 1HFY17. However, import in Nov

28/12/2016 5:12:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy JK Cement Ltd For Target Rs.67.00 - Motilal Oswal

Mangrol unit efficiency among the best in the industry

Takeaways from visits to JK Cement plants

We visited JK Cement’s new and old cement plants near Udaipur. Key takeaways are as follows:

 The new Mangrol unit’s efficiency is among the best in the in

28/12/2016 4:44:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gateway Distriparks Ltd For Target Rs.313.00 - Motilal Oswal

Ga teway Distriparks Limited (GDPL) is an integrated logistics player. Together with its subsidiaries, it has a presence in key verticals like Rail, Container Freight Station (CFS), and Cold Chain. Its subsidiary, Gateway Rail Freight (GRFL) is India’s largest private sector Container Train Operator (CTO), with ~5% market share. GDPL is one of India’s largest CFS players, with signi

28/12/2016 4:34:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Escorts Ltd - JHP Sec

Escorts Ltd is India's leading automotive & engineering conglomerate operating in the high growth sectors of Agri-machinery, construction & material handling equipment and railway equipment. Agri-machinery accounts for 80%, Construction Equipment 14% and Railway segment 6% of the revenue.

 

* Robust outlook for the tractor segment

28/12/2016 3:52:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Voltas Ltd For Target Rs.347.00 - Kotak Sec

The voltas management believes that the impact of demonetization of currency should normalize by February, well in time before the peak season kicks in. Inventory levels at industry-wide level is also within limits and is not a concern. However, delivering revenue growth in UCP segment could be tough as it would have to grapple with 1) Demonetisation impact 2) Relatively high base of Q3FY16.

28/12/2016 11:22:17 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Marico Ltd For Target Rs.290.00 - Sharekhan

Key points

Demonetisation impact - Wholesale and Rural sales affected; Modern Trade and Chemist channels performing well:

Like other FMCG companies, Marico is also feeling the pinch from the Government’s demonetisation measure, with its sales expected to be lower in H2FY2017. About 30-35% of Marico&rsquo

28/12/2016 11:14:08 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy India Bulls Housing Finance Ltd For Target Rs.1,010.00 - Ventura Sec

Indiabulls Housing Finance (IHFL) is now focused on the housing loan segment. It has executed consistently on its strategy of expansion by

* focusing on the affordable housing segment,

* growing its loan book using better technology,

* leveraging its financial strength and improving its ratings to increase competitiveness

28/12/2016 11:07:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Update On Unichem Laboratories Ltd - SPA Sec

Unichem laboratories is mainly focused on formulations, API manufacturing and caters to various therapeutic areas like gastroenterology, cardiology, diabetology, anti-bacterials, anti-infectives etc. Company's domestic business accounts for ~58% revenue and has strong brands like Losar, Losar H, Ampoxin etc. Exports accounts for ~42% of revenue of which US business is major contributor with

27/12/2016 3:50:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Cipla Ltd For Target Rs.610.00 - Sharekhan

Key points

The event:

Cipla recently received the UKMHRA’s approval to launch its combination inhaler Sereflo (gSeretide - indicated for Asthma treatment) in the UK market. The UK sales for gSeretide stood at $288 million (around Rs1,950 crore) as of June 2016 end. The UK is a lucrative market for gSere

27/12/2016 11:12:46 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat State Petronet Ltd For Target Rs.157.00 - Kotak Sec

The recent spike in Spot LNG prices (31% qoq) due to seasonal factors/ higher crude oil prices reduces the relative attractiveness of LNG to alternate fuels like Naphtha/FO. Additionally, slowing industrial demand due to demonetization will impact gas demand in the near future, we opine. Though, we are hopeful that this trend will change earlier than expected but will negatively impact GSPL'

27/12/2016 11:09:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy LIC Housing Finance Ltd For Target Rs.700.00 - Sharekhan

Key points

* We believe that LIC Housing Finance (LIC Housing) stands to gain materially in the medium to long term from the Government’s demonetisation drive and its after-effects. Although in the near term, the company’s business could witness some deceleration, in line with most of the financial sector, we are positive on the long-term p

27/12/2016 11:04:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Fiem Industries Ltd For Target Rs.1,315.00 - Religare Sec

Fiem Industries is among the leading manufacturers of automobile lightings, signaling equipment and rear view mirror for two wheelers and four wheelers. It has also forayed in LED luminaires for indoor and outdoor applications and Integrated Passenger Information System with display and softwares for buses, metros and railways. It has 9 manufacturing units in India with diversified products bas

27/12/2016 10:53:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Divis Laboratories Ltd - Sharekhan

Key points

ŠEvent:

The US Food & Drug Administration (USFDA) inspected Divis Laboratories’ (Divis Lab) Unit-II at Visakhapatnam (Vizag) from November 29 to December 06. The USFDA has issued Form 483 with five observations, which are moderate to serious in nature. One of the five observations: that

26/12/2016 11:04:11 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Developers Ltd For Target Rs.281.00 - Kotak Sec

We recently met with the management of IRB Infrastructure and following are the key takeaways of the meeting-

* Order inflows stood fairly strong during FY17. Expects healthy IRR on these projects.

* Company is on track to list InVIT by March, 2017.

* Recent arbitration claims to ease debt burden

* Demonetization didn't impact the construction schedul

26/12/2016 11:00:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Gayatri Projects Ltd For Target Rs. 700.00 - Sharekhan

Key points

*  Seasonally weak quarter affected by delay in project execution:

In Q2FY2017, the standalone revenue of Gayatri Projects (GPL) grew by 10.3% YoY to Rs350 crore, hindered by a prolonged monsoon and land acquisition delays in starting work at new project sites. Further, the Operating Profit Ma

24/12/2016 2:15:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On BEML Ltd - Kotak Sec

* We attended the analyst meet of BEML in which the company outlined its outlook on the three broad revenue segments ie Mining, Railways and Defence.

* The company believes that all the three segment have strong growth potential. The company is a play on rollout of Urban transit systems across country. Railways offer huge growth opportunities in terms of replacement of existing coache

23/12/2016 11:41:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Credit Analysis and Research Ltd For Target Rs.1,694.00 - Religare Sec

Credit Analysis and Research Ltd (CARE) is in the business of analysing and giving financial ratings to companies based on their financial health. Apart from this, it rates debt and bond instruments floated by various institutions. It is the second largest rating agency in India in terms of rating revenue.

 

Investment rationale:

23/12/2016 11:36:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Hindustan Zinc Ltd For Target Rs.240.00 - Kotak Sec

Surplus deficit to keep zinc prices firm

LME zinc price is up ~63% YTD CY16 and has significantly outperformed other base metals. The sharp rally in the prices is driven by mine closures, leading to deficits in both the concentrate and refined metal markets. In addition, decline in inventory to 429kt has also supported the zinc prices. We expect, zinc

23/12/2016 11:13:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Apollo Tyres Ltd For Target Rs.210.00 - Sharekhan

Key points

Demonetisation to impact demand in Indian operations:

The Government of India’s demonetisation move (banning of high denominated currency notes of Rs500 and Rs1000) has led to a cash crunch situation and has impacted demand in the consumption space (FMCG, Consumer Discretionary). Post the demonetisation announcement, the RBI

23/12/2016 11:06:21 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Finance Ltd For Target Rs.1,020.00 - Emkay

Fears of transit pain overshadows long term potential; Upgrade to BUY

The recent demonetization move has led to fears of growth moderation and deterioration in asset quality in LAP and business loans for Bajaj Finance (BAF). Although the initial data points shared by the management point towards stability, situation warrants close monitoring. We believ

23/12/2016 11:01:59 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Developers Ltd For Target Rs.260.00 - Sharekhan

Key points

IRB Infrastructure receives Rs270 crore arbitration claim for two projects:

IRB Infrastructure Developers (IRB Infra) has received 75% of the arbitration award amounts for two projects, namely Ahmedabad Vadodara Super Expressway (Rs21 crore) and Goa/Karnataka Border to Panaji/Goa (Rs249 crore), aggr

23/12/2016 10:53:04 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Voltas Ltd For Target Rs.335.00 - Prabhudas

We met Voltas’ management and the key takeaways from the meeting are: (1) Demand for AC should normalise as liquidity improves in the system over next 2‐3 months and is preparing for the summer demand as per schedule, (2) Focus continues to be on profitability and improving brand equity for the UCP business, (3) After the launch of Air Cooler, Voltas is also looking at adding more produ

23/12/2016 10:43:29 AM | Posted in Broking Firm Views - Long Term Report read full news
Update On BEML Ltd - Emkay

A fresh start – walking away from the past

* We attended the analyst meet of Bharat Earth Movers Ltd (BEML) wherein the company spelt out the revised strategy and focus areas for improving the segment performance. While the company indicated its FY18 revenue growth plans across all segments, management refrained from commenting on segment EBITM.<

22/12/2016 3:04:20 PM | Posted in Broking Firm Views - Long Term Report read full news