Buy Bharti Infratel Ltd For Target Rs.435.00 - Motilal Oswal

Operating leverage drives EBITDA margin

* Pro forma consolidated revenue rose 11% YoY (+4% QoQ) to INR35.2b (in-line). Pro forma consolidated rental revenue remained steady at INR21.8b (+7% YoY, +3% QoQ).

* Consolidated co-locations at 210,606 rose 8% YoY (+3% QoQ; in-line). Colocation adds at 5,673 sustained a healthy run-rate, after peakin

11/05/2017 1:52:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On ICICI Bank Ltd For Target Rs.320.00 - Equirus Sec

ICICI Bank (ICICIBC IN) reported PAT at Rs. 20.2bn (EE – Rs. 25bn) with NII growth of 10.3% yoy driven by NIM improving to 3.6% (+45bp qoq). Domestic loan growth was 14% yoy driven by retail (+18.5% yoy) and SME (+17.5% yoy). Fresh slippages remained elevated at Rs. 113bn leading to GNPL/NNPL ratio rising to 7.9%/4.9%. However, management expects lower slippages in FY18E and healthy recov

10/05/2017 3:10:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Bharat Financial Inclusion Ltd For Target Rs.860.00 - Morgan Stanley

BHAFIN's F18 guidance – which management mentioned could be conservative – is 35-40% below Bloomberg consensus and our estimate. We cut our F18 EPS estimate meaningfully, but relative impact on F19 underlying earnings is much lower. We will revisit based on quarterly progress. Maintain OW.

 

Details of BHAFIN's guidance:<

10/05/2017 2:58:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Housing Development Finance Corporation Ltd For Target Rs.1,80.00 - Sharekhan

Key points

* Operating performance healthy, NIM expands:

HDFC Ltd (HDFC) has reported a good set of numbers for Q4FY2014, helped by strong AUM growth and expansion in Net Interest Margin (NIM). HDFC has posted Net Interest Income (NII) of Rs2,852 crore, up by 15.5% YoY (10.8% QoQ), which was slightly ahead of expectation, as

10/05/2017 2:48:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy JSW Energy Ltd For Target Rs.74.00 - Reliance Sec

Lower Generation & Higher Fuel Cost Dent Performance

JSW Energy (JSWEL) has reported a subdued performance in 4QFY17. its net profit declined by 91.7% led by lower generation and higher fuel cost. Net generation dipped by 31.1% YoY to 4,017mn units mainly due to lower system demand. With 29.2% YoY, 45.5% YoY & 91.7% YoY decline in revenue, EBIT

10/05/2017 2:40:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki India Ltd For Target Rs7,100.00 - Emkay

Results in line; good times to continue- Maintain Buy

* MSIL’s Q4 operating margin stood at 14.0% which was in line with our and consensus estimates. However adjusting for pre-operation cost to the tune of Rs 1.2bn, margins were at 14.6%.

* In the concall, the management guided for a double digit growth in FY18 and optimism on new produ

10/05/2017 2:32:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ONGC Ltd For Target Rs.233.00 - Motilal Oswal

Crude price dip an opportunity to buy

Demand growth to tighten oil prices in 2HCY17

* Brent has declined by ~5% to a five-month low due to concerns on oversupply, led by production growth in the US.

* However, compliance by OPEC has been strong at 98% since January 2017. Russia has also been complying, though not fully. Both OPEC a

10/05/2017 2:23:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Financial Inclusion Ltd For Target Rs.950.00 - UBS

Q4FY17 results – Loss on high provisions; growth guidance maintained

Bharat Financial (BHAFIN) reported loss of Rs2.35bn (vs UBSe of Rs330mn profit) as it provided Rs3.35bn (4% of Dec '17 loan book) on its on-balance sheet NPLs and managed book (originated for IndusInd Bank). However, core operating performance was healthy, in our view, and

9/05/2017 2:55:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Supreme Industries Ltd For Target Rs.1,087.00 - Sharekhan

Key points

* Topline dented by demonetisation’s after-effects:

Demonetisation affected Supreme Industries’ topline growth in Q4FY2017, which grew by 6.9% YoY to Rs1,282.6 crore (below estimate). Overall plastics volumes were down by 5.5% YoY to 95,870MT. The worst hit by demonetisation was the Pla

9/05/2017 2:44:51 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dabur India Ltd For Target Rs.330.00 - Reliance Sec

Domestic Business Recovery Underway

Dabur India has reported a decent performance in 4QFY17 amid weak consumer demand environment especially in the aftermath of demonetisation. While its consolidated sales fell by 4.7% YoY to Rs19.5bn, EBITDA and PAT remained flat at Rs4.2bn and Rs3.3bn, respectively. Though its standalone sales came in flat at Rs14.3b

9/05/2017 2:36:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Shriram Transport Finance Company Ltd For Target Rs850.00 - Emkay

No respite in sight

* Shriram Transport Finance’s (SHTF) Q4FY17 performance was well below our as well as street estimates due to sharp uptick in credit costs (4.5% of average AUMs, annualized) as the company transitioned to 120-dpd NPL recognition method

* GNPLs inched up to 8.2% vs. 6.7% in Q3FY17 due to 120-dpd migration. AUM growth

9/05/2017 2:30:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy UltraTech Cement Ltd For Target Rs.4,734.00 - Motilal Oswal

* 4QFY17 cement volumes are estimated to decline 0.3% YoY to 13.56mt due to a high base. Realizations are estimated to increase 0.7% YoY (-2.2% QoQ) to INR3,972/ton.

* We estimate grey cement EBITDA/ton at INR654 (-INR125/ton QoQ) due to weak realizations. EBITDA margin is expected to contract 2.3pp QoQ to 16.6%.

* EBITDA is estimated to decline 17.5% YoY to INR10.6b, transl

9/05/2017 2:23:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy UPL Ltd For Target Rs.918.00 - Sharekhan

Key points

* Strong performance:

UPL has posted a decent set of numbers for Q4FY2017. The company has adopted the IND AS accounting standards and therefore the numbers for comparable periods have been re-classified accordingly. The net income from operation for the quarter stood at Rs5,341 crore, which grew by

8/05/2017 3:11:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kotak Mahindra Bank Ltd For Target Rs.1,010.00 - Reliance Sec

Steady Performance Continues; Upgrade to BUY

Kotak Mahindra Bank (KMB) has delivered a healthy performance in 4QFY17 on operating and assets quality front despite adverse operating environment. Net profit grew by 40.3% YoY and 11% QoQ to Rs9.8bn led by robust growth in operating profit (42.5% YoY and 11.4% QoQ) to Rs17bn. Sharp upsurge in operating pro

8/05/2017 3:01:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell TVS Motor Company Ltd For Target Rs370.00 - Emkay

Adj margins better; valuations steep – downgrade to Sell

* TVSL’s Q4 reported operating margin was at 5.7%, below with our and consensus estimates of 6.4%. However adjusting for higher discounting of Rs570mn (BS III) vehicles during the quarter, EBITDA margins were at 7.7%.

* Management opined that by FY19 it will have margins in

8/05/2017 2:53:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Reliance Industries Ltd For Target Rs.1,259.00 - Motilal Oswal

* We expect RIL to report GRM of USD10.2/bbl v/s USD10.8/bbl in 3QFY17 and USD10.8/bbl in 4QFY16.

* RIL’s refining segment profit is likely to remain subdued due to decline in GRMs. Petchem profitability is expected to increase YoY, led by improved deltas.

* We expect RIL to report EBITDA of INR106.7b v/s INR106.2b in 3QFY17 and INR95.1b in 4QFY16.

* We expec

8/05/2017 2:48:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Indiabulls Housing Finance Ltd For Target Rs.1,150.00 - Motilal Oswal

* We expect strong loan growth to continue, driven by retail home loans. We estimate 8% QoQ and 28% YoY loan growth.

* Margins are expected to remain largely stable. Net income should grow 27% YoY.

* Expenses are likely to grow 22% YoY, resulting in modest decline in cost-income ratio.

* Asset quality is expected to remain stable. In 3QFY17, GNPAs were at 0.85% and

6/05/2017 12:36:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Financial Inclusion Ltd For Target Rs.894.00 - Edelweiss

Bharat Financial Inclusion (BFI) reported Q4FY17 loss of INR2.35bn, lower than our and Street’s estimates on higher credit cost (INR3.35bn) as the company sustained its aggressive NPL recognition policy (60dpd versus RBI’s mandate of 90dpd). But, core operating performance was healthy (AUM growth of >19%), indicating swift recovery post demonetisation. Management continues to tar

5/05/2017 2:32:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Axis Bank Ltd For Target Rs.507.00 - HDFC Sec

Wounded, not healing soon

AXSB’s 4QFY17 earnings beat estimates, but only optically. The NIM improvement was led by a one-off benefit from write back of interest reversals (13bps). One-off recoveries/upgrades and higher write-offs kept GNPAs in check, despite high slippages (incl. the one-off cement exposure).

AXSB also utilised SDR and

5/05/2017 2:17:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Federal Bank Ltd For Target Rs.125.00 - Sharekhan

Key points

* Business momentum continues:

Federal Bank has posted robust results for Q4FY2017 on the back of strong business traction and an improved asset quality, which was a significant achievement considering the continued challenges confronted by some of its comparable peers. At Rs842 crore, Net

5/05/2017 2:10:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shriram Transport Finance Ltd For Target Rs.1,159.00 - Reliance Sec

Operating Performance In-line; Higher Provisioning Drags PAT

Shriram Transport Finance Company (STFC) has reported a subdued performance in 4QFY17 with its net profit rising by mere 4% YoY (-56.7% QoQ) to Rs1.5bn. Provisioning for bad debts rose by 6.3% YoY and 44.6% QoQ to Rs6.1bn, as collections continued to remain sluggish in certain pockets along w

5/05/2017 2:03:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold LIC Housing Finance Ltd For Target Rs730.00 - Emkay

Margins surprise positively

* LIC Housing Finance’s (LICHF) operating performance in Q4FY17 was better than expected on the back of better than expected margins; however, higher than expected provisioning costs led to in line earnings

* NIMs expanded 23bp qoq (+26bp yoy) to 2.97% (higher than expected) as the fall in calculated cost of

5/05/2017 1:56:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Hexaware Technologies Ltd For Target Rs.220.00 - Motilal Oswal

* We expect USD revenue to grow 0.8% QoQ to USD140m (0.5% QoQ CC).

* Although QoQ growth is expected to be soft, the quarter would strike 15% YoY growth, signifying strong momentum in the business.

* EBITDA margins have been steady over the last two quarters despite wage hike, resulting out of strong volume growth and improvement in operational efficiencies.

* Howe

5/05/2017 1:47:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ambuja Cement Ltd For Target Rs.240.00 - Reliance Sec

Performance Misses Estimates Despite Better Volume

Ambuja Cements (ACL) has reported a lower-than-estimated operating performance in 1QCY17 owing to subdued realizations and higher-than-estimated jump in operating cost. Its EBITDA came in at Rs3.65bn (-14% YoY and +24% QoQ), while EBITDA margin stood at 14.4% (-328 bps YoY). EBITDA/tonne came in merely

4/05/2017 3:05:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ashok Leyland Ltd For Target Rs.98.00 - Motilal Oswal

EGR Solution for BS4 could give competitive advantage

Focus on making business acyclic

We attended the Ashok Leylands’ Global Conference 2017, themed ‘Conquer New Frontiers’. Mr Dheeraj Hinduja (Chairman) and Mr Vinod Dasari (MD) highlighted initiatives taken by AL to leverage on evolving CV industry dynamics and making busi