Buy Yes Bank Ltd For Target Rs.2,142.00 - SPA Sec

Yes Bank reported good set of numbers with NII growth of 44% y-o-y on the back of improved C/D ratio (+674bps y-o-y) and higher other income resulting in 32% y-o-y growth in PAT. NIMs improved by 10bps y-o-y to 3.70% due to better spreads, higher loan book growth of 32.1% y-o-y and an improved CASA ratio. GNPA / NNPA / PCR stood at 0.97% / 0.39% / 60% respectively for the quarter. We expect ret

9/08/2017 2:18:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HCL Technologies Ltd For Target Rs.1,014.00 - Angel Broking

For 1QFY2018, HCL Tech posted results below expectations on sales front, while EBIT and net profit came in higher than expected. The sales came in at US$1,884mn (v/s. US$1,891mn expected) v/s. US$1,817mn in 4QFY2017, a qoq growth of 3.7% qoq. Revenue in Constant Currency (CC) terms was up 2.6% qoq. The EBIT margin came in at 20.1% (v/s. 19.5% expected) v/s. 20.0% in 4QFY2017, a qoq expansion of

9/08/2017 2:09:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ONGC Ltd For Target Rs.195.00 - Motilal Oswal

EBITDA below estimate; gas/oil production up 11/3% YoY

* ONGC’s reported revenue of INR190.7b (+8% YoY, -12% QoQ) came in below our estimate of INR203b due to lower sales/production ratio (-4% QoQ). Reported EBITDA of INR98.8b (+7% YoY, +47% QoQ) was lower than our estimate of INR109.7b, led by higher other expenditure (actual USD6.5/boe v/s est.

9/08/2017 12:29:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Cholamandalam Finance Ltd For Target Rs.1,350.00 - Emkay

Strong performance continues

* Cholamandalam Finance’s (CIFC) Q1FY18 performance was strong, with stable asset quality (under 90-dpd NPL recognition regime) and margins; Vehicle finance division continues to drive growth even as home equity segment remains subdued

* Sequentially, gross NPLs remained static at 4.7% on 90-dpd NPL recognit

9/08/2017 12:23:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jindal Steel and Power Ltd For Target Rs.472.00 - Ventura Sec

We believe that the steel industry is headed for a cyclical upturn given that China has undertaken intiatives to cut excess capacities citing environmental issues. Following this we have seen a rebound in global steel prices. In India too the government measures to check dumping have resulted in prices firming up. With prices set to rally there is always the threat of imports increasing, especi

9/08/2017 12:19:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Avanti Feeds Ltd For Target Rs.2,270.00 - Equirus Sec

We analyzed Avanti Feeds Limited’s (AFL) annual report for FY17. Key takeaways: (a) The company has set up a new processing plant at Andhra Pradesh (AP), which however did not commence production till June’17. Accordingly, we trim our sales estimates for 1QFY18 by 8% (b) Raw material prices remain benign but feed prices have been steady. Amid this conductive environment, we expect A

9/08/2017 12:13:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Punjab National Bank Ltd For Target Rs.167.00 - Reliance Sec

Credit Cost to Remain Elevated; Reiterate HOLD

Punjab National Bank (PNB) has delivered a healthy performance in 1QFY18. Its PAT surged by 12.1% YoY and 31.2% QoQ to Rs3.4bn led by lower provisioning expenses (-4.7% YoY & -54.7% QoQ to Rs26.1bn) and higher treasury and exchange income (+47.2% YoY and +0.3% QoQ to Rs10.7bn). Fresh slippages declined

9/08/2017 12:06:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra and Mahindra Financial Services Ltd For Target Rs.459.00 - Motilal Oswal

Operating performance strong; Strengthening the balance sheet

* Mahindra & Mahindra Financial Services (MMFS) had a strong quarter on the operating front. Value of assets financed increased 16% YoY in 1QFY18 – the fourth consecutive quarter of 15%+ YoY growth. This comes after a span of over 12 quarters of sluggish growth, caused by a variety

9/08/2017 11:52:07 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hero MotoCorp Ltd For Target Rs.4,130.00 - Angel Broking

Result meeting consensus estimates:

Hero Motocorp’s (HMCL) Q1FY18 number to a great extent, meet the consensus estimates. Net sales were at `7,972cr, up 7.7% yoy. EBITDA was at `1,296cr up 5.4% yoy and PAT was at `914cr, up 3.5% yoy. Consensus estimates of revenue, EBITDA and PAT were `8,053cr, `1,280cr and `912cr. HMCL’s performance looks

8/08/2017 3:27:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate India Cements Ltd For Target Rs. 223.00 - Emkay

Higher opex impacts profit, maintain ACCUMULATE

* India Cements' (ICEM) Q1 results was below our estimates with EBITDA at Rs1,856mn against estimated Rs2,075mn, primarily due to higher employee cost (impact of ESOP and revision in salaries). Employee cost will normalize at Q4FY17 levels going ahead.

* Cement sales volume was down 1.3% YoY

8/08/2017 3:06:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Pidilite Industries Ltd For Target Rs. 640.00 - Emkay

Margin concern intensifies; Downgrade to SELL

* Subdued quarter - Revenues declined by 2.6% yoy to Rs15.3bn, Standalone business declined by 1.5% yoy; Consolidated EBITDA at Rs3.2bn decline 18.5% yoy, APAT at Rs2.3bn, down 17.2% yoy. Subsidiaries reported better operating performance.

* Volume & value declined by 0.3% in consumer & ba

8/08/2017 3:00:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate NIIT Ltd For Target Rs. 110.00 - Kotak Sec

NIIT Ltd moved to Ind AS from this quarter due to which numbers are not strictly in line with the numbers reported earlier as per IndGAAP. On the restated numbers as per Ind AS revenues declined by about 1% sequentially and was flat on YoY basis. Revenue from focus area grew by 10% YoY. EBITDA margins came below our estimates at 7.8% down 100bps YoY. Margins within CLS business improved margina

8/08/2017 2:44:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Voltamp Transformers Ltd - Equirus Sec

We recently met the management of Voltamp Transformers Ltd (Voltamp). The company, established in 1963, manufactures (a) distribution transformers including oil filled transformers up to 160MVA, 220KV class, (b) resin impregnated dry type transformers up to 5MVA, 11KV class and (c) cast resin dry type transformers up to 12.5MVA, 33KV class. Voltamp has an installed capacity of ~13,000MVA and ha

8/08/2017 12:31:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ramco Cements Ltd For Target Rs.760.00 - Reliance Sec

Higher Fuel Cost Impacts Performance; Maintain BUY

Operating profit of Ramco Cements (RCL) declined by 8.3% YoY to Rs2.5bn in 1QFY18 (vs. our estimate of Rs2.6bn) owing to decline in sales volume to 2.15mnT (+3.6% YoY and -5.6% QoQ) and a significant 27% QoQ spike in Power & Fuel cost/tonne. Cement EBITDA/tonne stood at Rs1,173 in 1QFY18 vs. Rs1,32

8/08/2017 12:22:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Supreme Industries Ltd For Target Rs.1,250.00 - Sharekhan

Key points

* Weak quarter owing to GST roll out:

On the anticipated line, Supreme Industries Limited (SIL) delivered a weak set of numbers for Q1FY2018, led by major destocking from distributers owing to GST roll out. Revenue declined by 2.3% YoY to Rs.1,161.7 crore, led by volume decline across the product s

8/08/2017 12:17:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral GlaxoSmithKline Pharmaceuticals Ltd For Target Rs.2,500.00 - Motilal Oswal

GST impacts revenues, margins tank

* GSK Pharma’s (GLXO) 1QFY18 sales declined 14.4% YoY to INR5.9b (24% miss). It recorded EBITDA loss of INR6m (est. of INR1.2b) due to lower turnover, and higher other expense (includes one-time expense of INR111m relating to arrears in payment of State Entry Tax) and employee expense. Reported PAT declined 63%

8/08/2017 12:11:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold ICICI Bank Ltd For Target Rs.330.00 - Sharekhan

Key points

Satisfactory operating performance:

The operating performance of ICICI Bank was very much in line with our expectations as the net interest income (NII) growth stood at 8.4% YoY to Rs5589.8 crore. The non-interest income declined by 1.2% YoY. The fee income reported a decent growth of 10.3% YoY. Dur

7/08/2017 2:52:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Exide Industries Ltd For Target Rs. 245.00 - Emkay Global

Operationally strong quarter; Maintain BUY

*  Net revenue grew by 5% YoY/ 6% QoQ to Rs21bn (Emkay: Rs21.2bn; Consensus: Rs21.9bn), broadly in line with our estimates. Automotive and motorcycle segments have continued to witness positive growth, while demand for Home UPS batteries were subdued

*  Management expects growth momentum to

7/08/2017 2:45:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Hero MotoCorp Ltd For Target Rs.3,818.00 - Motilal Oswal

GST compensation, RM hurt margin; Volume guidance slightly lowered

GST-related dealer compensation and higher RM cost impact margins:

Revenue increased 7.7% YoY to INR79.7b (est. of INR80b) as volumes grew by 6% YoY and realizations by 1.7% YoY to INR43.1k/unit (est. of INR43.3k). Higher RM costs due to commodity inflation

7/08/2017 2:32:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Rallis India Ltd - Angel Broking

Performance Highlights

For 1QFY2018 Rallis India (Rallis) reported a yoy de-growth of 1.0% in sales to `446cr (v/s. `450cr in 1QFY2017). The performance of Rallis was impacted during the quarter on the back of transition to GST and high channel inventory. On the operating front, the OPM came in at 15.6% (v/s. 16.7% in 1QFY2017). Owing to lower sales gr

7/08/2017 2:26:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Dr. Reddy`s Laboratories Ltd For Target Rs.2,380.00 - Emkay Global

Earnings seem to have bottomed out; maintain HOLD

*  Q1 results impacted by number of transitory factors including GST led impact on India business. Underlying margin trends are extremely weak even on factoring some of the fleeting factors. In our opinion this reflects the continuing intensity of pricing pressure in the US base business.

7/08/2017 2:15:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Vedanta Ltd For Target Rs. For Target Rs.316 - Motilal Oswal

Many segments were weak; cost pressure in AL

Zinc outlook remains bullish; Maintain Buy

*  Cons. EBITDA increased 42% YoY to INR48.7b (est. of INR50.7b), driven by strong growth in zinc, O&G and aluminum (AL). The iron ore, copper (Cu) and power segments, however, reported weak operating performance.

* &nb

7/08/2017 2:09:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HCL Technologies Ltd For Target Rs.965.00 - Sharekhan

Key points

Strong operating performance:

HCL Technologies (HCL Tech) reported yet another good quarter, with constant currency (CC) revenue growth of 2.6% QoQ. This was driven by a CC growth of 7.9% QoQ in Engineering and R&D Services (ERD) services (includes inorganic revenue from Geometric consolidation

7/08/2017 2:01:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki India Ltd For Target Rs.8,250.00 - Emkay Global

Operating performance impacted by one-offs; Outlook remains intact

*  Maruti Suzuki’s EBITDA margin contracted by 150bp YoY/70bp QoQ to 13.3% (Emkay: 15.1%; Consensus: 14.3%), led by GST transition losses, increased discounts, higher procurement from Gujarat plant and rise in commodity prices.

*  Net revenue grew strongly by 1

7/08/2017 1:56:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Asian Paints Ltd For Target 1,200.00 - Motilal Oswal

Impacted by GST-related challenges; RM costs pull down margins

Asian Paints (APNT) reported consol. sales growth of 6.4% YoY (est. of +2%) to INR38.2b,

with volume growth of ~4% (est. of flat growth) in the domestic decorative paints business. The quarter failed to build on a good start due to destocking ahead of GST implemen

7/08/2017 1:48:28 PM | Posted in Broking Firm Views - Long Term Report read full news