Buy Lupin Ltd For Target Rs.1,125.00 - Motilal Oswal

Recovery expected only from 2H

* Lupin's (LPC) 1QFY18 revenue declined ~13% YoY to INR38.7b (12% miss), primarily due to weak US business (-27% YoY to USD238m) on the back of lower Glumetza sales. EBITDA declined 41% YoY to INR7.7b, with margins coming in lowest in 16 quarters at 20%.

* Guidance lowered for FY18: LPC gui

12/08/2017 10:57:18 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Federal Bank Ltd For Target Rs.140.00 - Angel Broking

Federal Bank’s 3QFY17 results were better than our expectations. PAT growth of 26.4% YoY, with stable asset quality and accelerated loan growth were the key developments during the quarter.

 

Business growth remained buoyant:

Loan growth momentum continued to remain strong up 29.1% YoY. After a 26.2% growth in FY17, this

12/08/2017 10:52:21 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy L&T Finance Holdings Ltd For Target Rs.200.00 - Motilal Oswal

Strong fee income traction; meaningful asset quality improvement

* L&T Finance Holding’s (LTFH) 1QFY18 PAT grew 49% YoY to INR3.09b. Robust core disbursement growth of 95% YoY, strong fee income across all lending segments, sharp reduction in the GNPL ratio and shoring up of the provision buffer were key highlights of the quarter.

12/08/2017 10:48:52 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Ltd For Target Rs.100.00 - Emkay

Execution on right track

* NIIT has transitioned to IndAS reporting from Q1FY18 quarter, rendering full-year numbers for FY18E un-comparable.

* On like-to-like basis, the reported revenue at Rs2,088mn was largely flat yoy, dragged down by weak revenue from Skills & Career segment/Schools business while Corporate Learning Solutions revenue

12/08/2017 10:42:30 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors Ltd For Target Rs.514.00 - Kotak Sec

TAMO reported weak financial performance in 1QFY18. Adjusted for extraordinary income, performance was below expectation. Loss in the standalone business and significantly weak operating performance for JLR led to consolidated EBITDA declining by 45% YoY. 1QFY18 was impacted on various counts – of which some will sustain in the near term. In the standalone business, MHCV demand is expecte

12/08/2017 10:38:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy GreenPly Industries Ltd For Target Rs.297.00 - Equirus Sec

We analysed Greenply Industries Limited’s (Greenply) FY17 Annual Report (AR) and key takeaways are:

* Greenply posted a tepid 1%/1%/-7% growth in its FY17 revenue/EBITDA/PAT due to subdued real estate demand and the impact of demonetization in 3QFY17.

* Overall plywood sales volumes/revenues have grown at a 6%/8% CAGR over FY12-FY17 while trading volu

12/08/2017 10:35:06 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Aurobindo Pharma Ltd For Target Rs.800.00 - Reliance Sec

Injectable Portfolio, New Launches to Drive US Biz; Maintain BUY

Aurobindo Pharma (ARBP) has delivered a better performance compared to its peers in 1QFY18. Its sales, EBITDA and net profit stood at Rs36.8bn, Rs8.4bn and Rs5.3bn, respectively. Despite challenging environment, its US revenue increased by 3.5% YoY and 7.0% QoQ (in CC term), which albeit

12/08/2017 10:28:09 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Larsen and Toubro Ltd For Target Rs.1,260.00 - Sharekhan

Key points

* Better execution in domestic infrastructure segment drives revenue growth:

During Q1FY2018, Larsen & Toubro’s (L&T) net sales grew by 10% YoY to Rs.23,811 crore, driven by healthy execution in infrastructure (up 16% YoY), hydrocarbons (up 19% YoY) and electricals and automation (E&

12/08/2017 10:23:34 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Nestle India Ltd For Target Rs.5,740.00 - Motilal Oswal

Results miss estimates, higher RM costs impact margins

* Net sales were up by only 6.9% YoY (est. of +16%) to INR23.9b (Ind-AS). EBITDA (Ind-AS) was down 6.1% YoY (est. of +10%) to INR4.4b. Adj. PAT was down 11.8% YoY (est. of +5.4% YoY) to INR2.5b (Ind-AS).

* Weak base makes revenue performance disappointing:

12/08/2017 10:18:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Jagran Prakashan Ltd For Target Rs.184.00 - Arihant Capital

For the quarter ended March 2017, Jagran Prakashan Ltd. reported profitability with net profit growing by 2% YoY to Rs 78 cr and 3% sequentially.

Total revenue for the company grew by 4% YoY to Rs 492 cr while sequentially the revenue grew by 5%. Advertisement revenue for the company grew by 3.9% YoY to Rs 346 cr while the circulation revenue grew by 1.5% YoY to Rs 102 cr. Digital Adv

12/08/2017 10:11:05 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Colgate Palmolive India Ltd For Target Rs.1,235.00 - Reliance Sec

Strong performance in back drop of GST

Colgate-Palmolive has reported a decent set of numbers for 1QFY18 despite GST roll-out and resultant trade de-stocking. While net sales fell by 3.5% YoY to Rs9.7bn, EBITDA grew by 4.6% YoY to Rs2.1bn and net profit increased by 8.5% YoY to Rs1.4bn. Expecting recovery in demand going forward aided by trade up-stock

11/08/2017 3:35:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Crompton Greaves Consumer Ltd - Sharekhan

Key points

* Stable margins despite commodity inflation:

The net sales of CGCEL declined 4% YoY to Rs1,055 crores due to poor performance in the Electrical Consumer Durables (ECD) segment while lighting segment showed strong performance in Q1FY2018. The ECD segment missed our estimates due to channel de-stoc

11/08/2017 3:31:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharti Airtel Ltd For Target Rs.490.00 - Motilal Oswal

Decent quarter; light at the end of the tunnel

* Consolidated EBITDA drops meager 1% QoQ: Consol. EBITDA fell 1% QoQ (-19% YoY) to INR77.6b (4% above estimate) on the back of flat revenue. Bucking the last two quarter’s declining trend, India wireless revenues stabilized in 1QFY18 (+0.4% QoQ, -14.2% YoY) to INR129.1b, as traffic

11/08/2017 3:27:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat State Fertilizers And Chemicals Ltd For Target Rs.148.00 - Emkay

Volume growth robust, margins hurt by higher RM cost

* The company registered a healthy 15% yoy growth in fertiliser volumes to 302,000MT on the back of improved demand and lower channel inventory. Caprolactam volume growth was flat yoy at 14,000MT due to unavailability of ammonia.

* Fertiliser EBIT at Rs463mn (-25% yoy) was below our estimat

11/08/2017 3:20:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Relaxo Footwears Ltd For Target Rs.560.00 - Sharekhan

Key points

* Revenue grew in double digits; higher rawmaterial cost dents margins:

For Q1FY2018, Relaxo Footwears Limited’s (Relaxo) revenue grew by 19.8% YoY to Rs.490.5 crore. The company witnessed increased volumes across all product categories and geographies. Gross margin contracted by 476BPS YoY

11/08/2017 3:14:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shree Pushkar Chemicals and Fertilisers Ltd For Target Rs.240.00 - SPA Sec

Shree Pushkar Chemicals & Fertilizers (SPCF) reported strong ~24%/16% YoY growth in Q1FY18 revenue/PAT driven by increased contribution of dyestuff segment (20% of revenue) and ~46% volume growth in fertilizer segment. Additional dyestuff capacity of 3000 MTPA is expected to be operational by H1FY18. Completely integrated dye business coupled with textile auxiliary chemicals plant would hel

11/08/2017 3:09:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Indian Oil Corporation Ltd For Target Rs.458.00 - Motilal Oswal

Adj. EBITDA marginally above est.; Core GRM at USD7.6/bbl

IOCL’s adj. EBITDA increased 38% YoY (+9% QoQ) to INR91.2b, marginally above our estimate of INR87.7b, primarily due to higher-than-expected core GRM of USD7.6/bbl (est. of USD7.1/bb). Reported GRM of USD4.32/bbl was below our estimate of USD4.6, led by crude inventory loss of INR28b. Mar

11/08/2017 2:59:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy LIC Housing Finance Ltd For Target Rs.748.00 - Religare Sec

Subdued quarter, though largely in-line…

LIC Housing reported a slightly subdued performance with NIMs of 2.5%, leading to a muted 9% YoY NII growth. Overall GNPAs rose to 0.72% (0.43% in FY17) with individual GNPAs rising to 0.42% (0.20% in FY17) owing to seasonality. PAT improved by 15% YoY to Rs 470cr. Strong earnings visibility, stable asset

11/08/2017 12:22:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Syngene International Ltd For Target Rs.558.00 - Angel Broking

Result in line with expectations:

Syngene’s net sales grew by 6% yoy to `291cr and PAT grew by 3.7% yoy to `62cr. EBITDA grew by 8.1% yoy to `96cr due to margin improvement led by superior business mix. EBITDA margin improved to 33% in 1QFY18 from 32.3% in 1QFY17. We had expected PAT of `61cr on the topline of `296cr hence the result has met our

11/08/2017 12:17:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Dr. Reddy`s Laboratories Ltd For Target Rs.2,500.00 - Motilal Oswal

Weak quarter; margin recovery is key

* Weak operating performance: Net sales grew 2.5% YoY to ~INR33.2b (9% miss). Gross margin shrunk ~450bp YoY, primarily due to four factors: 1) double-digit price erosion in the US business (due to new competition and channel consolidation). 2) Impact of GST implementation. 3) Manufacturing overhea

11/08/2017 12:13:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Idea Cellular Ltd For Target Rs.74.00 - Emkay

Pain to persist

* Akin to Bharti and Vodafone India, Idea reported flat qoq revenues while underlying subscriber addition and ARPU trend was divergent for Idea. Voice ARPU for Idea improved marginally while for Bharti it declined 3%qoq. Similarly, Data ARPU for Idea registered growth of 8.2% qoq while it decline 4% qoq for Bharti.

* Despite b

11/08/2017 12:08:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gabriel India Ltd For Target Rs.190.00 - Kotak Sec

Gabriel reported healthy operational performance in 1QFY18. Revenues during the quarter came in at Rs4,189mn, 13.7% growth over 1QFY17. EBITDA margin at 9.6% remained static YoY. Lower other income and higher tax provision limited net profit to 2% YoY. Revenues and EBITDA were 5% and 8% ahead of our estimates. However, PAT was 3% below estimate due to low other income and high tax provision. Ga

11/08/2017 12:04:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Kewal Kiran Clothing Ltd - Equirus Sec

Kewal Kiran Clothing Limited’s (KKCL) 1QFY18 revenues/EBITDA declined 25%/63% yoy mainly due to pre-GST de-stocking across various channels. Even after a month into the GST regime, the pace of re-stocking has been slow. We expect growth to recover on (a) a low base as TTM revenue is flat, and (2) restocking by various channels. Management stated that it will give priority to revenue growt

11/08/2017 11:59:54 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy KEC International Ltd For Target Rs.335.00 - Reliance Sec

Strong Quarterly Performance Continues; Maintain BUY

KEC International (KEC) has delivered a strong performance in 1QFY18 with its net profit rising by 103% YoY to Rs630mn led by higher margin (+90bps YoY) and lower interest cost (-12% YoY). Its revenue grew by 6.2% YoY to Rs18.9bn vs. our estimate of Rs19.0bn. Notably, GST roll-out impacted KEC’

11/08/2017 11:55:09 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Glenmark Pharmaceuticals Ltd For Target Rs.855.00 - Sharekhan

Key points

* Q1FY2018 results better than expectation on account of gZetia exclusivity and strong domestic business:

Glenmark Pharmaceuticals (Glenmark) reported revenue growth of 20% YoY to Rs.2,363 crore for Q1FY2018, while operating profit grew by 52.3% to Rs.577.4 crore and adjusted profit (before excepti

11/08/2017 11:50:42 AM | Posted in Broking Firm Views - Long Term Report read full news