Buy Maruti Suzuki Ltd For Target Rs.7.070.00 - HDFC Sec

Premium virtues

Maruti Suzuki (MSIL) delivered in line revenue (+20% YoY to Rs 183bn) in 4Q. EBIDTA margins came in lower at 13.9% (-129bps YoY), impacted by higher commodity prices and RM cost (+359bps YoY). APAT came in lower than expectations at Rs 17bn (+15% YoY), owing to margin contraction and higher-than-expected depreciation.

We remai

4/05/2017 2:40:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Federal Bank Ltd For Target Rs.125.00 - Reliance Sec

Fabulous Feat on all Fronts

Federal Bank has surprised the market for another successive quarter by delivering strong growth in operating profit and loan book in 4QFY17. Its operating profit grew by 39.2 YoY & 15.6% QoQ to Rs5.5bn led by 22.8% YoY & 6.4% QoQ growth in NII and 41% YoY & 21.5% QoQ growth in other income. Provisioning expenses

4/05/2017 2:16:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Rallis India Ltd For Target Rs246.00 - Emkay

Operating performance in line with estimates

* Q4 consolidated revenues declined marginally by 1% yoy to Rs3.7bn and below our estimate of Rs3.8bn. Standalone revenues came flat yoy at Rs3.5bn while Metahelix revenues declined 20% yoy to Rs205mn.

* Gross margin improved 290bps yoy to 42.7% on the back of better product mix while EBITDA margin

4/05/2017 2:09:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Forge Ltd For Target Rs.1,266.00 - Motilal Oswal

Creating a future ready organization

Import substitution and Defence offers multi-decade opportunity

We visited Bharat Forges’ Kalyani Center for Technology Innovation (KCTI) at Pune. KCTI is an umbrella unit catering to BHFC’s requirement of innovation, R&D, testing and advanced learning. We g

4/05/2017 2:01:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ACC Ltd For Target Rs.1,521.00 - Motilal Oswal

Volume growth led by capacity expansion

* Volume trend reversal after three quarters: 1QCY17 volumes increased 3.8% YoY to 6.60mt (est. of 6.49mt), led by ramp-up of new capacity in the east. Cement realization of INR4,265/t (+4% YoY, -2% QoQ) was marginally below our estimate of INR4,297/t. However, the full impact of

3/05/2017 4:02:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold KPIT Technologies Ltd For Target Rs.130.00 - Reliance Sec

‘Balancing Act’ for FY18 – A Challenge Too Steep

KPIT Technologies (KPIT) recorded a healthy growth in USD revenue by 4.5% QoQ to US$128.3mn (including an inorganic component of US$4mn) in 4QFY17. On an organic basis, KPIT recorded sequential growth of 1.2%. EBITDA margin remained flattish despite strong revenue growth and slightly hi

2/05/2017 3:19:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Mahindra Finance Ltd For Target Rs290.00 - Emkay

Long road to recovery

* Mahindra Finance’s (MMFS) Q4FY17 performance continued to disappoint on the asset quality front with NPLs as well as credit costs remaining at elevated levels. Persistent asset quality pressures led to reversal of provisioning benefits taken during Q1FY17

* Reported GNPLs fell 17% qoq (-27% qoq without RBI dispen

2/05/2017 3:13:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HDFC Bank Ltd For Target Rs.1,790.00 - Motilal Oswal

Stellar performance on all fronts

* HDFC Bank’s (HDFCB) 4QFY17 PAT grew 18% YoY (2% beat) to INR39.9b, led by 27% YoY PPoP growth (10% beat). The bank delivered robust loan growth, strong cost control, margins improvement and impeccable asset quality.

* Loans grew 12% QoQ and 19% YoY to INR5.55t. Note that sequential growth is off a low

2/05/2017 2:53:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zensar Technologies Ltd For Target Rs.1,023.00 - HDFC Sec

Short-term blip, digital onboarding

Zensar delivered poor 4Q numbers, both on the revenue and margin fronts, led by a steep decline in IMS revenue (-25.6% QoQ). Digital (34.1% of revenue) remains Zensar’s core strength, and grew 8.2% QoQ led by the Foolproof acquisition and 11 digital deal wins. We believe that (1) A strong relationship with Orac

2/05/2017 2:46:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Developers Ltd For Target Rs.305.00 - Sharekhan

Key points

* Launch of India’s maiden InvIT at conservative valuation:

IRB Infrastructure Developers will be launching India’s maiden Infrastructure Investment Trust (InvIT) to raise Rs5,035 crore (comprising a fresh issue of Rs4,300 crore and offer for sale of 3.48 crore units) at a price band o

2/05/2017 2:37:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Axis Bank Ltd For Target Rs.502.00 - Reliance Sec

Elevated Credit Cost to Drag Performance

Axis Bank has delivered yet another dismal quarterly performance on operating and assets quality front in 4QFY17. Its operating profit declined by 0.5% YoY and 5.7% QoQ to Rs43.7bn led by muted growth in operating income (+6.8% YoY and +0.1% QoQ to Rs77.4bn) and higher operating expenses (+18.2% YoY and +8.8% Qo

2/05/2017 2:30:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Persistent Systems Ltd For Target Rs620.00 - Emkay

Hoping for margin uplift alive after a long streak of moderation

* Persistent’s overall revenue performance remained below in the Mar’17 quarter despite very solid performance in the Digital and Accelerite portfolio (+10% QoQ in each)

* EBITDA margins improved by 40 bps sequentially to 16.3% despite one time provisions on litigati

2/05/2017 2:25:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy MindTree Ltd For Target Rs.530.00 - Motilal Oswal

* MTCL’s performance has been impacted since the last couple of quarters because of softness in top accounts, project cancellations, delays in decision making and deterioration in the performance of acquisitions.

* These factors are expected to play on performance in 4Q as well, restricting signs of a revival. While we expect 1.5% QoQ CC growth, we expect a headwind of 40bp due

2/05/2017 2:17:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Wipro Ltd For Target Rs460.00 - Emkay

Flatters to deceive

* Mar’17 quarter revenue performance decent with strong sequential revenue performance across verticals like Financial Services, E&U and Retail. IT Services EBIT margins however declined by ~70 bps sequentially to 17.6%, adjusted for one off items

* June’17 quarter revenue guidance disappoints ;continuing t

1/05/2017 11:27:00 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan ZincLtd For Target Rs.268.00 - Motilal Oswal

* We expect HZL’s EBITDA to increase 29% QoQ (+2x YoY) to INR35.8b on higher prices and volumes. Zinc LME is up 10% QoQ to USD2,777/t, while lead LME is up 6% QoQ to USD2,276/t. Mine production is estimated to increase by 11% QoQ to 305kt. Refined zinc sales volumes, however, are estimated to be flat QoQ at 210kt as company sold concentrates. We expect ~25kt of concentrate sales during th

1/05/2017 11:17:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell LIC Housing Finance Ltd For Target Rs.600.00 - HDFC Sec

Margin boost through non-core book

LICHF’s 4Q results came in better than expectations, owing to higher growth (64%/28% YoY/QoQ) in the non-core (LAP+ Project) portfolio, thereby increasing its share to 16.7% (11.5% in 4QFY16). NIM expanded to 2.97% supported drop in COF, which fell 66bps.

Supported by higher NII, PAT increased 18% to R

1/05/2017 10:56:35 AM | Posted in Broking Firm Views - Long Term Report read full news
Update On Bodal Chemicals Ltd - SPA Sec

Bodal Chemicals (BCL) is a leading manufacturer of dyes Intermediates/dyestuff and has diversified into speciality chemicals. Company's products are used in diverse industries such as Textile, Paper, Plastic, Leather etc. Stricter environmental norms and increased costs substantially eradicated low cost advantage of Chinese dye manufacturers. BCL with presence across dyestuff value chain an

1/05/2017 10:43:04 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kewal Kiran Clothing Ltd For Target Rs.2,250.00 - Sharekhan

Key points

* Operating performance stable in a weak environment; higher other income leads to strong growth in PAT:

For Q4FY2017, Kewal Kiran Clothing’s (KKCL) overall revenue was marginally up by 2.9% to Rs130.3 crore, driven by a 7.7% YoY rise in realisation per unit, which resulted in a value growth o

1/05/2017 10:25:24 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Indian Bank Ltd For Target Rs.341.00 - Reliance Sec

Impressive Performance; Reiterate BUY

Indian Bank has delivered a healthy operating performance in 4QFY17. Its operating profit surged by 29.3% YoY and 4.8% QoQ to Rs10.7bn led by strong growth in NII (22.1% YoY & 11.1% QoQ to Rs13.9bn) and relatively lower (7.6% YoY and 9.1% QoQ) opex at Rs9bn. However, provisioning expense increased by 49.3% QoQ

1/05/2017 10:15:50 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cyient Ltd For Target Rs.600.00 - Motilal Oswal

* We expect CYL’s USD revenue to grow 3.3% QoQ in 4QFY17 (+2.7% QoQ in CC).

* In the core services business, CYL’s revenue is expected to increase by 1.9% QoQ. Revenue growth is expected to pick up post the seasonal weakness witnessed in the previous quarter.

* We expect USD17m in revenue in Rangsons, which would imply annual revenue of USD55m; +42% YoY, short of

1/05/2017 9:55:31 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ultratech Cement Ltd For Target Rs.3,639.00 - Emkay

Sales volume stagnant; valuations stretched

* UltraTech (UTCEM)’s Q4FY17 operating performance was lower than estimates with EBITDA at Rs11.8bn (adjusted for other operating income) against our estimate of Rs12.7bn. EBITDA/tn was at Rs872 against our estimate of Rs933.

* Domestic sales volume was flat YoY at 13.35mt. Grey cement realiza

1/05/2017 9:42:52 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Nestle India Ltd For Target Rs.6,665.00 - Motilal Oswal

Non-Maggi volumes continue to be tepid

Increasing cash and cash equivalents restricting RoCE improvement

* Key takeaways from Nestle India's (NEST) CY16 annual report:

* Continued poor volumes in non-Maggi portfolio n Blended realization growth lower than earlier years

* A&P to sale

29/04/2017 11:43:58 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy LIC Housing Finance Ltd For Target Rs.780.00 - Sharekhan

Key points

* Strong operating performance; Ninth consecutive quarter of 20%+ growth in NII:

LIC Housing Finance (LICHF) has posted better-than-expected results for Q4FY2017 with a strong net profit growth of 18.1% YoY to Rs529.2 crore, driven by a healthy 30.6% YoY growth in the Net Interest Income (NII) and c

29/04/2017 11:36:10 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hexaware Technologies Ltd For Target Rs.240.00 - Emkay

Strong performance in line with thesis

* Hexaware reported a strong revenue performance in Mar’17 quarter with a 4.1% QoQ US$ revenue growth ( best sequential growth in Q1 since 2012), significantly ahead of Street/Emkay estimates

* EBIT margins came in at 15.3%, down by 50 bps QoQ albeit still better than estimates. Robust headcount ad

29/04/2017 11:30:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Yes Bank Ltd For Target Rs.2,110.00 - Motilal Oswal

Inline; Asset quality impacted by one off large account

* Yes Bank’s (YES) NII grew 32% YoY (+10% QoQ) to INR16.4b, helped by 20bp YoY NIM improvement (to 3.6%) and customer assets growth of 36% YoY (+15% QoQ). Strong NII and beat on other income (27% beat; +57% YoY) drove PPoP outperformance (+38% YoY; 14% beat). However, significantly higher pr

29/04/2017 11:24:46 AM | Posted in Broking Firm Views - Long Term Report read full news