Reduce Can Fin Homes Ltd For Target Rs.554.00 - Equirus Sec

CanFin Homes’ (CANF) 2QFY18 PAT of Rs 750mn (+36.2% yoy) came in marginally ahead of our estimates of Rs 730mn. NII growth was healthy at 26.7% yoy with stable NIMs of 3.64%. However, growth in approvals/disbursements was tepid at 3.8%/3.7% yoy owing to the combined impact of demonetization, RERA and GST on the real estate sector. We remain watchful of possible pressures on NIM, a slowdow

3/11/2017 3:31:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Heidelberg Cement India Ltd For Target Rs.180.00 - Prabhudas Lilladher

Heidelberg cement (HEIM) reported exceptionally strong Q2FY18 result beating our expectations across the fronts. We upgrade our EBITDA estimates by 12%/10% for FY18e/FY19e to factor in lower costs and higher realisations. Despite continued shortage of sand in UP and Bihar, HEIM registered growth of 6.5% YoY in volumes on the back of strong retail network and movement to far markets. Demand is e

3/11/2017 3:23:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Mahindra and Mahindra Financial Services Ltd For Target Rs.290.00 - Emkay

* Mahindra Finance’s (MMFS) Q2 performance was better than expectations adjusting for the transitory impact of the 90-dpd NPL recognition, as the company migrated to more stringent NPL recognition norms ahead of the RBI deadline of Mar 2018

* At 120-dpd basis, GNPLs stayed flat qoq at ~10% levels; Impact of migration to 90-dpd NPL recognition: Reported GNPLs rose 24% qoq to 12.5

3/11/2017 3:14:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IOC Ltd For Target Rs.554.00 - Motilal Oswal

EBITDA/PAT significantly below est.; CP GRM at USD9.14/bbl

IOCL’s adj. EBITDA rose 11% YoY (-25% QoQ) to INR73.7b, significantly below our estimate of INR116b, primarily due to lower-than-expected reported GRM of USD7.98/bbl inclusive of inventory gains (est. of USD9.5/bbl and SG GRM of USD8.3/bbl) and lower refinery throughput of 16mmt (est. of

3/11/2017 3:07:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Kajaria Ceramics Ltd For Target Rs.730.00 - Kotak Sec

Revenue for Q2FY18 was ahead of our estimates led by 5% YoY volume improvement and 2% YoY pricing improvement. Operating margins were under pressure due to higher power and other costs. Net profit performance on YoY basis was impacted by fall in margins. Going ahead, we expect company to improve its market share by capturing the market share of unorganized players as well as with improvement in

3/11/2017 3:01:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Jubilant Foodworks Ltd For Target Rs.1,725.00 - Emkay

* Jubilant FoodWorks (JFW)’s results were ahead of our expectations. Revenues were up 9.2% yoy at Rs 7.3bn; EBITDA at Rs 1bn, up 59% yoy. APAT at Rs 485, up 2.2x yoy  SSG at 5.5%, despite an unfavorable base, led by a change in the company strategy and product refresh in pizzas. We expect 8%/6% SSG growth in FY18E/19E

*  Gross margin declined by 70bps yoy to 74.1%, impac

3/11/2017 3:00:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Canara Bank Ltd For Target Rs.386.00 - Motilal Oswal

Elevated provisions offset PPoP growth; asset quality stress persists

* Canara Bank’s (CBK) PPoP growth of 16% YoY (9% beat on opex beat of 4%) was offset by elevated provisions of INR21.6b (44% miss), leading to a 27% YoY decline in PAT to INR2.6b.

* Reported NIM was flat QoQ at 2.34% (domestic NIM at 2.6% v/s 2.56 in 1Q). NII grew 3%/

3/11/2017 2:43:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Cummins India Ltd For Target Rs.1018.00 - Kotak Sec

Cummins India reported Q2FY18 result below our estimates. Domestic business suffered from lower offtake driven by GST transition in the quarter. However, management believes that the situation has already started to improve and company would make up for the lost sales in 9MFY18. Operating margins contracted YY driven by lower volumes, however company maintained gross margin driven by various co

2/11/2017 4:19:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ABB India Ltd For Target Rs.1,607.00 - Reliance Sec

Improving Fundamentals; Robust Order Book

Led by better operating margins, ABB India’s PAT grew by 18.2% YoY to Rs0.83bn in 3QCY17. However, its top-line declined by 13.1% YoY to Rs18.8bn, as all its businesses reported lower revenues following GST roll-out. Though the stock has gained ~25% since our initiation report in Jan’17, we continue

2/11/2017 4:13:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Chambal Fertilizers and chemicals Ltd For Target Rs.228.00 - SKP Sec

Company Background

Chambal Fertilizers and Chemicals Ltd (Chambal), promoted by Late K K Birla in 1985, now professionally managed under Chairmanship of Mr Saroj Poddar, is India’s largest private sector urea manufacturer. Its two hi-tech nitrogenous fertilizer plants are located at Gadepan, District Kota, Rajasthan, with an installed capacity o

2/11/2017 4:06:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On HCL Technologies Ltd - Equirus Sec

HCL Technologies‟ (HCLT) weak 2QFY18 earnings were led by softness in both App Services and IMS business, itself impacted by the completion of few large SI projects in India. Though the company retained its CC guidance (10.5%-12.5%) and reiterated that Application Services/IMS ex-India grew 1%/1.8% qoq, its guidance achievement commentary has moderated to „lower end‟ vs. „mid-po

2/11/2017 3:57:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Crompton Greaves Consumer Electricals Ltd For Target Rs.270.00 - Prabhudas Lilladher

Crompton Greaves Consumer Electrical ltd (CGCEL) delivered very strong set of numbers with a 22.3% growth in Profit after Tax at Rs708mn. Revenues came in at Rs9.6bn, up 9.8% YoY (Adjusted comparable growth – 15% YoY). Crompton gained significant market share in the Fans and the Lighting (LED) segment. The company’s focus on a) investing and increasing brand awareness, b) developing

2/11/2017 3:47:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ITC Ltd For Target Rs.306.00 - Kotak Sec

ITC reported weak 2QFY18 results as cigarette business profits disappointed (weaker than expected volume growth in cigarettes). Our EPS estimates are revised marginally (1%) downward. Cigarette volumes have come in weaker than estimates; however, we continue to believe that volume growth will stabilize in the coming quarters. We continue to be voataries for greater convergence between valuation

2/11/2017 3:42:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ramkrishna Forgings Ltd For Target Rs.827.00 - SPA Sec

Ramkrishna Forgings Ltd. (RKFL) reported net sales of INR 3333 mn in 2Q FY18 (114.1% jump over INR 1557 mn YoY) and a PAT of INR 235 mn (loss of INR 50 mn YoY) on the back of pickup in both domestic export volume and improved realizations. EBITDAM has improved by 164.5 bps YoY despite delay in passing of increased RM cost to the clients. RM cost as % of sales increased by 1618 bps. Employee exp

2/11/2017 3:36:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Quess Corp Ltd For Target Rs.1,040.00 - Motilal Oswal

Growth story on track; Profit boosted by tax incentives

* Strong revenue momentum; PAT surges on tax benefits: QUESS’ 25.2% YoY growth to INR12.7b was 4% ahead of our estimate; organic growth was 16% YoY (excl. Comtel). EBITDA margin shrunk 20bp YoY to 5.2% (est. of 5.4%). Margins expanded in all segments barring

2/11/2017 3:26:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Exide Industries Ltd For Target Rs.235.00 - Emkay

* Q2FY18 revenue grew strongly by 23% yoy/13% qoq to Rs23.7bn (Emkay Est: Rs21.4bn; Consensus Est: Rs21.7bn), post muted 5% yoy growth in Q1FY18, owing to GST transition effect. Restocking post GST has supported dispatches. Automotive, Motorcycles and UPS segments have witnessed strong growth.

* EBITDA margin came in below estimate, declining by 250bps yoy/290bps qoq to 12.5% (Emkay E

2/11/2017 3:19:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Communication Ltd For Target Rs.780.00 - Motilal Oswal

A weak quarter, but long-term prospects promising

Flat EBITDA on weak data segment performance: Consol. revenue fell 2% QoQ (-6.5% YoY) to INR 42.2b (4% miss) due to a decline in voice revenue (-6.4% QoQ, -20% YoY) to INR14.3b. Consol. EBITDA stood at INR5.6b, marginally up by 1% QoQ (-14% YoY, 4% miss), as a 2% drop i

2/11/2017 3:13:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold NIIT Technologies Ltd For Target Rs.109.00 - Emkay

*  While the Corporate Learning Solution (CLS) segment continued to deliver a steady performance (14% yoy growth in CC terms with 15.5% EBITDA margin), the weak performance in Skills & Career Business (S&C) and Schools Business led to lower-thanestimated operating performance.

* Overall EBITDA margin at 8.5% was down c.40bps yoy, impacted by c.80bps yoy decline in S&C

2/11/2017 3:09:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ICICI Bank Ltd For Target Rs.365.00 - Prabhudas Lilladher

ICICIBC’s core operating performance was largely in‐line with expectations with NII growth of ~9% YoY on back of 6% loan growth. Key positives were (I) Margins holding up at 3.27% as bank saw some recovery in interest from earlier NPLs. (ii) Domestic loan book growth saw good growth of 13% YoY led by both corporate & retail and (iii) strong CASA accretion especially on SA profile (5

2/11/2017 2:57:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki Ltd For Target Rs.9120.00 - Kotak Sec

MSIL reported strong 2QFY18 earnings – comprehensively beating our and street expectation. Strong show on the volume front translated into 22% YoY growth in revenues. EBITDA margin for the quarter came in at 16.9% (versus 17% in 2QFY17 and 13.3% in 1QFY18), ahead of our and consensus estimate of 14.6%. Unlike many other car manufacturers, MSIL is in a unique position of high demand for it

2/11/2017 2:41:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra and Mahindra Financial Services Ltd For Target Rs.481.00 - Motilal Oswal

Migrates to 90dpd; targets 9-10% GNPL ratio on 90dpd by end-FY18

* Mahindra & Mahindra Financial Services (MMFS) reported strong operating performance. AUM grew 14% YoY to almost reach INR500b, registering the fifth straight quarter of 13-14% AUM growth. Growth was driven primarily by tractors (+14% YoY), pre-owned vehicles (+14% YoY), and SME (+71

2/11/2017 2:35:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Mind Tree Ltd For Target Rs.510.00 - Emkay

* Mindtree reported 2.1% qoq growth in CC terms, which was below our estimate (volume growth of 1.8% qoq), but OPM surprised positively, gaining 40bps despite wage hike and one-time charges.

* Added US$207mn of new TCV (US$77mn new), of which TCV expiring within 1 year stood at US$166mn. 12-month TCV on TTM basis still remains negative and suggests continued softness in growth in the

2/11/2017 2:24:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell ABB India Ltd. For Target Rs.1,230.00 - Motilal Oswal

GST implementation-led execution slowdown impacts performance

* Operational performance below expectations: 3QCY17 revenue declined 7% YoY to INR19.2b, missing our estimate of INR23.1b. Adjusted EBIDTA margin of 5.4% (-40bp YoY) too was below our estimate of 8.5%. Adjusting for forex gain of INR300m, EBITDA declined 12% YoY to INR1.0b, below our estim

2/11/2017 1:16:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Infosys Ltd For Target Rs.938.00 - Equirus Sec

Infosys (INFO) reported mixed 2QFY18 earnings with growth (2.9% vs. 3.6% EE) modestly below EE but EBITM coming in above estimates (24.2% vs. 23.5%). Growth was broad-based across verticals and geos, but was offset by India weakness. Consolidated IT services revenue growth (3% qoq) was driven by volumes (1.6% qoq; onsite/offshore -0.7%/2.6%) and pricing (1.4% qoq; onsite/offshore 1.9%/2.7%). Ma

1/11/2017 4:27:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Engineers India Ltd For Target Rs.200.00 - Prabhudas Lilladher

* Strong execution and margins: EIL reported overall sales of Rs4.29bn up 26.6% YoY (PLe Rs.3.71bn). Sales for Consultancy & Engineering Projects segment was up by 21% YoY to Rs3.3bn while sales for Turnkey Projects were up by 50% YoY to Rs. 961mn largely due to a settlement of a price discount which has been booked as revenues in this quarter (Rs374mn). EBI

1/11/2017 4:18:55 PM | Posted in Broking Firm Views - Long Term Report read full news