Hold Inox Leisure Ltd For Traget Rs.255.00 - Sharekhan

Key points

* Demonetisation impacting ticket sales and ad revenue:

The Government’s demonetisation move is hurting the multiplex industry, with footfalls and ad revenues both down. In the wake of the cash crunch environment, Inox Leisure (ILL) witnessed ~25-30% lower footfalls in November, adversely impa

12/12/2016 10:39:32 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Steel Authority of India Ltd For Target Rs.43.00 - Reliance Sec

Steel Authority of India Ltd (SAIL) reported decent numbers during the quarter under review. Sales volume at 3.56mn tonnes was considerably higher than our estimate of 2.9mn tonnes, largely due to higher exports. The company posted an EBITDA/tonne of Rs313 (our estimate loss of Rs368), the same was largely aided by adoption of IND-AS, which led to downward revision of many costs due to capitali

10/12/2016 11:53:30 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bharti Airtel Ltd For Target Rs.340.00 - RCML

Bharti introduces ‘Jio’ style plans

* Two new bundled plans launched:

Bharti today announced two prepaid plans priced at Rs 145 and Rs 345, which put it squarely in competition with Reliance Jio’s ‘free calls plus data’ packs worth Rs 149 and Rs 299 respectively. The pricing decl

10/12/2016 11:49:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Steel Authority of India (SAIL) Ltd For Target Rs.37.00 - Emkay Global

Weaker than expected performance!

* Weaker than expected performance on lower realizations and higher stock adjustments. Topline stood at Rs125.8bn, up 21% YoY and 22% QoQ, primarily driven by strong sales volume of 3.6mt, up 31% YoY and 29% QoQ.

* EBITDA came at Rs1.1bn, lower than expectations, and down by 52% QoQ. EBITDA/ tonne stood at Rs

10/12/2016 11:44:47 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.592.00 - Religare Sec

Zee Entertainment Enterprises Ltd, a part of Essel Group, is one of the largest broadcasting networks in India. It offers content in multiple languages and operates 33 domestic and 38 international channels. The company has a content library of more than 222,703 hours of television programming and rights to more than 3,818 movie titles from premiere studios. 'Zee', the flagship channel

10/12/2016 11:12:21 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Simplex Infrastructures Ltd For Target Rs.330.00 – Kotak Securities

Execution during Q2FY17 was impacted by monsoons and came lower than our estimates while operating margins came ahead of our estimates due to high margin order book mix. Due to adoption of Ind-AS, net profit for Q2FY16 has been restated upwards due to which net profit decline is quite sharp for Q2FY17. Company’s order inflow during Q2FY17 has been below our expectations. Government’

10/12/2016 10:51:25 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sonata Software Ltd For Target Rs.185.00 - Reliance Sec

Sonata Software (Sonata) – a mid-sized IT firm based in Bangalore – caters to Travel, Retail & Distribution and OPD verticals in its IT services business, offering consulting, ADM, ERP, Microsoft Dynamics AX, testing, IMS, cloud, mobility and platform services. We believe platform focus is a key differentiator that will stand Sonata in good stead, enabling double digit USD reven

10/12/2016 10:46:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Aditya Birla Fashion & Retail Ltd - Sharekhan

Key points

ŠŠ Revenue grows but new investments in MFL leads to drop in OPM:

For Q2FY2017, Aditya Birla Fashion & Retail’s (ABFRL) overall revenue grew by 13% YoY, mainly led by a 22% YoY growth in Pantaloons and 5% YoY growth in Madura Fashion & Lifestyle (MFL). But, MFL witnessed a 10% YoY decline in revenue on a like-to-lik

10/12/2016 10:40:27 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Axis Bank Ltd For Target Rs.465.00 - RCML

Industry-leading retail growth to continue

We met Mr. Rajiv Anand, AXSB’s retail banking head, to get an update on the bank’s retail strategy. Key takeaways: (1) Industry retail credit will follow a cycle and could see growth and asset quality pressures, but a FY08-like scenario is unlikely. (2) AXSB will continue to grow faster than the i

10/12/2016 10:33:58 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Suven Life Sciences Ltd - Sharekhan

Key points

* On August 11, 2016, we had initiated viewpoint coverage on Suven Life Sciences (Suven) at a price of Rs205, as we saw visibility in sales growth for the next 2-3 years and improving profitability (on account of a better product mix). However, we feel that the recent correction in the Pharma stocks gives us a good entry point in Suven, as w

9/12/2016 11:49:25 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Crompton Greaves Ltd For Target Rs.59.00 - Reliance Sec

Consolidated net revenues of Crompton Greaves (CG) grew by modest 4.6% yoy to Rs14.9bn in 2QFY17 compared to Rs14.2bn in 2QFY16 primarily due to better performance of Industrial businesses. On the back of poor operational performance of power system, CG’s PAT from continuing operation declined by 46% yoy to Rs268 mn in 2QFY17 compared to Rs497mn in 2QFY16, while net loss from discontinuin

9/12/2016 11:38:54 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Siemens India Ltd For Target Rs.1170.00 - Kotak Sec

We attended the analyst meet organized by Siemens India and came out encouraged by the positive long term business outlook reiterated by the management. Business trend continues to improve on back of improved government spending across sectors like Railways and Power T&D. Industrial demand continues to remain lackluster, however with visible improvement across specific industries.

9/12/2016 11:30:25 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy TVS Motor Company Ltd For Target Rs.455.00 - Sharekhan

Key points

* Demonetisation to impact 2W industry demand in near term:

The Government’s demonetisation move (banning of Rs500 and Rs1000 notes) has impacted Two Wheeler (2W) industry demand. 2Ws are sold majorly in the rural areas, where the transactions are largely cash based (rural sales account for ~

9/12/2016 11:21:06 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Siemens India Ltd For Target Rs.1,251.00 - Prabhudas

We attended Siemens (SIEM) analyst meet and returned with a positive outlook in the medium‐to‐long term. SIEM highlighted that while some green shoots were visible in private capex, demand is largely driven by public capex. Transportation and Power T&D continues to be key growth drivers in near term for the company. The company is increasing its focus on providing digital solution to it

8/12/2016 12:23:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ratnamani Metals & Tubes Ltd For Target Rs.600.00 - Sharekhan

Key points

Weak quarterly performance:

Ratnamani Metals & Tubes (RMTL) reported weak earnings performance for Q2FY2017, owing to a 13% YoY drop in overall volume and 9% YoY fall in blended realisations. The company’s revenue declined by 24% YoY to Rs336.0 crore on account of 11% YoY and 13% YoY fall

8/12/2016 12:16:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bata India Ltd For Target Rs.483.00 - Motilal Oswal

Aggressive, focused strategy to drive growth

* New designs to aid sales growth:

Bata’s revenues have declined ~10-15% in November – sales were severely affected in the first week of demonetization, but somewhat improved thereafter. Bata rolled out some company-level schemes in the second week of de

8/12/2016 12:11:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Ashoka Buildcon Ltd For Target Rs.174.00 - Prabhudas

* EPC execution weak, expect H2 to better:

Ashoka Buildcon(ASBL) reported standalone sales at Rs4.7bn, down 5.3% YoY. EPC segment revenue was down 3.7% YoY to Rs4.3bn, while BOT revenues were up 75% YoY to 84mn. EBITDA was up 10% YoY at Rs698m; EBITDA margins were up 230bps YoY to 15.8%. EBIT margins of EPC segment were up 420bps YoY to 17.1 %( cost s

8/12/2016 12:03:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Zee Entertainment Enterprises Ltd For Target Rs.400.00 - Kotak Sec

We provide an update on Zee Entertainment, post: a/ recent acquisition of RBN channels, b/ continued weak performance of flagship Hindi GEC "Zee TV" over the past few weeks, c/ potential changes in regulation that could have a negative impact on the company's revenue stream (more so, when combined with b above) and d/ demonetization. Treating demonetization as a one-off event (non

8/12/2016 11:58:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Minda Corporation Ltd For Target Rs.117.00 - Religare Sec

Minda Corporation is amongst the leading automotive component companies with a diversified product portfolio that encompasses Safety, Security & Restraint Systems; Driver Information & Telematics Systems and Interior Systems for auto OEMs. These products cater to 2/3 wheelers, Passenger Vehicles, Commercial Vehicles and aftermarket. The Company has 32 state of the art manufacturing faci

8/12/2016 11:48:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Shemaroo Entertainment Ltd For Target Rs.400.00 - RCML

Risk-reward unfavourable – downgrade to SELL

SHEM has been our small-cap content pick given strong growth in its new media business, but the recent share price uptick and slowdown in telecom data uptake makes the risk-reward unfavourable. We believe debt capital employed (for content) will continue to expand and this coupled with slower growth wi

8/12/2016 11:37:51 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IL&FS Transportation Networks Ltd For Target Rs.120.00 - Sharekhan

Key points

Lower execution affected by monsoon + higher leverage hurt profitability:

IL&FS Transportation Networks’ (ITNL) standalone revenue declined by 26.5% YoY to Rs978 crore on account of a 25% YoY drop (affected by southwest monsoon) in Construction Income at Rs649 crore. The tolling revenue, t

8/12/2016 11:22:06 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Srikalahasthi Pipes Ltd For Target Rs.329.00 - SKP Sec

Company Background

Srikalahasti Pipes Ltd (SPL), formerly known as Lanco Industries Ltd. (LIL), part of Electrosteel Group, India’s leading manufacturer of Ductile Iron (DI) pipes, a valuable input in water infrastructure for movement of drinking water supply, sewerage and irrigation. Having a production capacity of 3,00,000 MTPA of DI pipes, it

7/12/2016 1:26:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Power Company Ltd For Target Rs.85.00 - Reliance Sec

Post negative other comprehensive income, consolidated net profit of Tata Power Company (TPCL) rose by 77.0% yoy to Rs698mn in 2QFY17. However, its reported consolidated PAT – before comprehensive income – stood at Rs3.36bn (loss in 2QFY16) owing to lower MTM losses at Coastal Gujarat Power (CGPL) and better operating performances by key subsidiaries and Indonesian coal mines. Tarif

7/12/2016 12:36:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat State Petronet Ltd For Target Rs.195.00 - RCML

Volumes trend lower, tariff hike imminent

GUJS reported in-line Q2 earnings of Rs 1.3bn (+19% YoY) driven by higher other income. However, operational performance disappointed as volumes remained stagnant at ~25mmscmd; note that GUJS’s volumes are trailing a 12mmscmd increase in India’s gas consumption. Tariff realisations (Rs 1.06/ scm, f

7/12/2016 12:31:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy The Ramco Cements Ltd For Target Rs.730 - Prabhudas

The Ramco Cements (TRCL) reported Q2FY17 earnings above our expectation. The key take‐away from the earnings lies in the strong volume growth (+19% YoY) while maintaining margins (EBITDA/t@Rs1500), unlike other south based majors facing sharp cut in earnings. We expect demand recovery to sustain on the back of enhanced focus of state governments on infra spending, new capital development in A

7/12/2016 12:23:52 PM | Posted in Broking Firm Views - Long Term Report read full news