Neutral Marico Ltd For Target Rs.340.00 - Motilal Oswal

Volumes recover; high input costs continue to impact margins

Marico’s 2QFY18 sales grew 6.7% YoY to INR15.4b (est. of INR16.4b). Domestic volume growth stood at 8% YoY (in-line), while overall volume growth was 5% YoY. Domestic revenues grew 12% YoY, while reported international revenue fell 8% YoY (1% gro

6/11/2017 4:38:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Yes Bank Ltd - Equirus Sec

YES Bank (YES) reported a 25% yoy growth in its 2QFY18 PAT to Rs 10bn (EE: Rs 10.2bn) with NII/non-interest income growth of 30.4%/40.6% yoy. NIM was steady qoq at 3.7% while CASA/C/I ratio improved to 37.2%/39.2% vs. 36.8%/42.1% in 1QFY18. Elevated provisions (+177% yoy) include Rs 4.43bn towards divergence provisioning. For the divergence of Rs 133.5bn over the past three years, NPLs are cont

6/11/2017 4:32:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Tata Steel Ltd For Target Rs.672.00 - Motilal Oswal

Missed estimates on squeeze in spreads

FCF still missing; net debt up INR60b in 1HFY18

Tata Steel’s (TATA) 2QFY18 consolidated EBITDA increased 59% YoY to INR47.2b, but missed estimates by 11% due to lower margins both in India and Europe. Sales volumes increased 14% YoY to 6.5mt. EBITDA per ton rose 42

6/11/2017 4:22:47 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce JSW Steel Ltd For Target Rs.261.00 - Kotak Sec

JSW Steel’s (JSTL) 2QFY18, revenue was in-line with expectations. EBITDA during the quarter came in at Rs30.36 bn (lower than estimates of Rs31.04 bn), with an EBITDA margin of 18.1%. JSTL reported profit of Rs8.36 bn up 24.3%/34% YoY/QoQ (estimates of Rs9.04 bn). The consolidated sales for the quarter came at Rs168.2 bn, up 16.6%/5.3% YoY/QoQ. The sequential growth in EBITDA during the q

6/11/2017 4:15:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Navin Fluorine International Ltd For Target Rs.922.00 - Emkay

* Navin Fluorine International Ltd (NFIL) Q2FY18 results were in line with our estimates on revenue as well as EBITDA front on account of incremental revenue from the CRAMS business (up 63% yoy) and improvement in the Inorganic segment (up 32% yoy).

* NFIL reported net sales/EBITDA growth of 20% yoy/30% yoy to Rs2.18bn/Rs529mn. A favorable product mix led to 172bps yoy improvement in

6/11/2017 4:12:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Bharat Financial Inclusion Ltd - Motilal Oswal

Post-demonetization recovery taking root

* BHAFIN reported 2QFY18 PAT of INR1.2b (3% miss), driven by a healthy uptick in net income (+4% beat), offset by higher-than-expected credit costs. We believe that a post-demonetization recovery is taking root, and is likely to continue in the coming quarters.

* AUM grew 17% YoY to INR106b, reflectin

6/11/2017 4:01:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Tata Communication Ltd For Target Rs.654.00 - Emkay

* Tata Communications once again disappointed, with 5% EBITDA miss on muted expectations. Data segment EBITDA was 10% lower than our estimate, impacted by various factors. Data revenue grew by mere 2.2% yoy but was flat qoq.

* Tata Teleservices (TTSL) affected Transformation Services business and Traditional data business was sluggish while Growth Services continued to deliver with a

6/11/2017 3:54:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HDFC Ltd For Target Rs.2,000.00 - Motilal Oswal

Uptick in retail lending encouraging

* HDFC reported strong numbers overall. While there was a 5% miss on core PBT, a QoQ rise in the share of individual AUM was a positive surprise. Individual loans grew 4% QoQ and 16% YoY, driven by 23% disbursement growth in individual loans. This is the second quarter of 20%+ growth in individual lending, which is

6/11/2017 3:49:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Marico Ltd For Target Rs. 315.00 - Kotak Sec

Marico’s 2QFY18 results missed estimates. Revenue growth came in weaker than expectations, largely on weakness in international operations. While domestic operations registered robust, volume-driven growth, the company’s gross margin contracted due to sharp rise in copra prices. EBITDA came in 4% lower than estimates. We cut our FY18/FY19 EPS estimates by 5%/4%, and cut our price ta

4/11/2017 11:46:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Oil and Natural Gas Corporation Ltd For Target Rs . 220.00 - Emkay

Tops estimates; Retain BUY

* Result were better than our estimates, with EBITDA at Rs91bn up by 3.5% qoq (vs our estimate of Rs88bn) while PAT came in at Rs51bn, up by 32% qoq (vs our estimate of Rs44bn). Beat on estimates was largely on account of lower other expenditure, higher other income and lower tax rate (29%). 

* Sales-to-product

4/11/2017 11:37:51 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral on LIC Housing Finance Ltd For Target Rs. 680.00 - Motilal Oswal

Core home loan growth pick-up remains elusive

* LIC Housing Finance (LICHF) reported a weak set of numbers for 2QFY18. PAT declined 1% YoY to INR4.9b (8% below our estimates).

* Loan book growth was in line with the past trends at ~15-16% YoY, with retail loan book growth muted at 9-10% YoY. There was a slight shift in mix toward non-core loa

4/11/2017 11:30:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Power Grid Corporation Ltd For Target Rs. 244.00 - Reliance Sec

Background & Business

Power Grid Corporation of India (PGCIL) enjoys “Navratna” status that provides authority to undertake new transmission projects of any amount without any government approval. It is also entrusted with the role of CTU by the Government of India. In this role, PGCIL operates as one of the chief agencies for planning

4/11/2017 11:25:11 AM | Posted in Broking Firm Views - Long Term Report read full news
Update On HDFC Bank - Equirus Securities Private Ltd

HDFC Bank (HDFCB) reported an in-line 2QFY18 PAT of Rs 41.5bn (EE Rs 41.6bn) driven by healthy NIMs (4.3%) and loan growth (+22% yoy). Wholesale loans grew 27% yoy while the CASA ratio declined to 42.9% (1QFY18: 44%). Provisions jumped 97% yoy as the bank provided ~Rs 7bn towards one standard 5:25 restructured account which is currently under discussion with the regulator. Slippages came in at

4/11/2017 11:15:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Dabur India Ltd For Target Rs. 342.00 - Prabhudas Lilladher

Dabur has given cautiously optimistic growth outlook given 7.2% volume growth in 2Q and expected pickup in rural demand. Dabur expects flat margins in near term and sustained expansion once the sales growth revives over coming 2/3 quarters. Headwinds like GST led trade disruptions, Patanjali’s onslaught and currency and demand issues in IBD have peaked out which should enable Dabur to pos

4/11/2017 11:06:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold PVR Ltd For Target Rs. 1,294.00 - Emkay

Estimates already factoring content revival

* Headline financials are not comparable on account of 1) sale of bowling alley business and 2) transition to GST. KPI’s were sub-par due to weak content performance; Footfall growth of mere 1% and 5% decline in footfalls for comparable properties and 2) ATP increase was restricted to 1%.

* Ad

4/11/2017 10:49:34 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral on Bharti Infratel Ltd For Target Rs. 440.00 - Motilal Oswal

Colocation exits may put pressure on growth

Rental revenue/EBITDA disappoints:

Consol. revenue increased 3.5% QoQ (+11% YoY) to INR36.5b (in-line), despite flat QoQ rental revenue (at INR22.6b; 1% miss), offset by a 9% QoQ rise in energy revenue. Consol. EBITDA rose 2.5% QoQ (+11% YoY) to INR16.1b (in-line),

4/11/2017 10:42:08 AM | 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

2QFY18 operational results exceed estimates: BHE reported revenue of INR24.3b (+45% YoY; our estimate: INR19.8b) and operating profit of INR5.9b (+76% YoY; our estimate: INR2.5b). Net profit rose 19% YoY to INR4.1b. Exports stood at USD8.9m (or INR578m)

3/11/2017 4:39:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Capital First Ltd For Target Rs.965.00 - Prabhudas Lilladher

CAFL’s 2QFY18 earnings were slightly above our estimates with PAT at Rs785mn (PLe: Rs763mn). Higher beat was on NII which grew by 44% YoY on back of strong AUM growth of 28% YoY which was led by strong retail growth and resultant improvement in margins to 10% up 23bps QoQ. Asset quality on 90dpd improved sequentially on good loan base and some write‐offs. CAFL continues to show strong g

3/11/2017 4:32:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Accmulate JSW Steel Ltd For Target Rs.290.00 - Prabhudas Lilladher

JSW Steel (JSTL) reported Q2FY18 earnings below our estimates due to lower realisations. Weak realisations in Exports, suppressed spreads in coated products and steeper fall in Long products prices drove the miss in realisations. However, we keep our estimates unchanged for FY18e/FY19e on the back of improvement in Exports realisations, higher realisations in Flat product contracts and seasonal

3/11/2017 4:28:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Supreme Industries Ltd For Target Rs.1,248.00 - Kotak Sec

Supreme Industries Q2FY18 results were ahead of our estimates led by strong volume growth across most of the segments. The company reported 19.5% yoy growth in revenue backed by 18.3% yoy growth in total volume. The volume growth in the quarter was led by aggressive discount policy adopted by the company particularly in agri-based PVC pipes segment. The company’s piping segment grew by 17

3/11/2017 4:23:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Engineers India Ltd For Target Rs.212.00 - Kotak Sec

EIL Q2FY18 outperformed our estimate due to 1/ strong execution in PMC division; 2/ higher operating margin supported by operating leverage and 3/ provision write back (one off items) in the LST division (Lump Sum Turnkey Project). Order inflows grew substantially in the quarter led by PMC orders; current order backlog stands at Rs 88.1 Bn (highest level ever) implying three year revenue visibi

3/11/2017 4:17:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Emami Ltd For Target Rs.1,350.00 - Emkay

* Strong quarter - Revenues at Rs6.3bn (+14% yoy on a comparable basis), EBITDA at Rs2bn (+7.7% yoy), PAT at Rs987.5mn (+ 27% yoy) on account of lower interest burden and lower tax outgo.

* Domestic volumes grew 10% yoy ahead of our estimate of 8% while domestic revenues grew by 14% yoy (on a comparable basis). Growth was led by Boroplus portfolio which grew by 38%. Increasing direct

3/11/2017 4:12:31 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coromandel International Ltd For Target Rs.568.00 - Emkay

* Coromandel’s Q2 EBITDA increased 48% yoy to Rs5.7bn and was above our estimates driven by improved operating efficiency, benign RM price and better product mix. Consolidated revenues at Rs36.5bn (+4% yoy) were broadly in-line with our estimate.

* Fertiliser revenue stood flat yoy at 32.2bn due to muted phosphatic volume growth of 3% yoy. However, Fertiliser EBIT jumped 57% yoy

3/11/2017 3:56:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kaveri Seed Company Ltd For Target Rs.738.00 - Motilal Oswal

Lower write-offs boost profitability

* Revenue marginally below estimates, significant beat on EBITDA and PAT: KSCL’s overall revenue increased 2.7% YoY to INR696m (est. of INR745m) in 2QFY18. EBITDA grew 337% YoY to INR147m (est. of INR43m), with the margin expanding 1,620bp YoY to 21.2% (est. of 5.8%) on account of

3/11/2017 3:49:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Lupin Ltd For Target Rs.1,030.00 - Reliance Sec

US Biz to Remain Weak; Maintain HOLD

Led by weak performance in the US markets, Lupin (LPC) has delivered a weak performance in 2QFY18 on all counts. Its revenues, EBITDA and net profit declined by 8% YoY, 17% YoY and 31% YoY, respectively. Notably, LPC’s US sales declined by 30% YoY to US$204mn vis-à-vis US$292mn and US$238mn in 2QFY17 an

3/11/2017 3:39:43 PM | Posted in Broking Firm Views - Long Term Report read full news