Buy DCB Bank Ltd For Target Rs.207.00 - Reliance Sec

Strong Performance Continues on Key Metrics; Reiterate BUY

DCB Bank has reported substantially improved performance on operating parameters in 4QFY17. Its NII rose by 30.6% YoY & 5.1% QoQ to Rs2.2bn led by robust growth in loan book (22.4% YoY & 8.5% QoQ) and 10bps YoY rise in NIMs to 4.04%. Despite higher provisioning of Rs339mn (24.5% YoY &am

18/04/2017 3:34:47 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mayur Uniquoters Ltd For Target Rs.478.00 - Religare Sec

At an inflection point…

Mayur Uniquoters Ltd. (MUL) is the largest manufacturer of artificial leather/ PVC vinyl in India. The company is a leading synthetic leather supplier to branded footwear, automotive and leather goods and garments companies in India and abroad.

 

Investment rationale

18/04/2017 3:21:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat State Petronet Ltd For Target Rs.193.00 - Emkay Global

Triggers ahead

* Gas transmission volume should grow by a CAGR of 8.3% in FY17-19 to 30.6mmscmd. Majority of the incremental volume is expected to come from 1) Pick up in ceramic volumes on addition of new vitrified tiles capacity 2) Rising CGD penetration in Gujarat 3) Demand from refining industry on favorable LNG prices versus alternative fuels &

18/04/2017 3:14:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra & Mahindra Ltd For Target Rs1,573.00 - Motilal Oswal

* Overall volumes were up ~1% YoY (-7% QoQ), as a 16% YoY growth in tractors was offset by 4% YoY decline in the automotive segment. UVs (incl pick-ups) declined by 1% due to competition and benign rural growth.

* MM (including MVML)’s realization is expected to decline by ~1% YoY (+4% QoQ), as better product mix due to increase in share of tractors is offset by increase in lowe

17/04/2017 3:19:10 PM | Posted in Broking Firm Views - Long Term Report read full news
BUy Hero MotoCorp Ltd For Target Rs.3,390.00 - Motilal Oswal

* Sales volume declined ~6% YoY (+10% QoQ) to 1.62m units, led by gradual recovery post demonetization impact derailed November and December sales volumes. Also due to higher inventory at dealer level of BS-III vehicle post ban by apex court, the focus was to clear the inventory at dealer level. The retail sale for March 2017 was 15% higher than wholesale for the month.

* Realization

17/04/2017 3:13:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Exide Industries Ltd For Target Rs.270.00 - Motilal Oswal

* We expect net revenue to grow 13% YoY (+15% QoQ) to INR19.9b as better replacement demand recovery post demonetization and higher OEM demand too.

* EBITDA margin is likely to remain flat YoY (+180bp QoQ) to 15.1% as replacement price has been increased by 10% from Nov 16 to Mar 17 due to increase in Lead prices.

* Lead prices have gone down by ~4% QoQ in 3QFY17, the effect

17/04/2017 2:44:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Power Ltd For Target Rs.59.00 - Emkay

Lower PLF and PAF impacted Q4 result

* PAT at Rs2.2bn (+251% YoY) was below our estimates of Rs3.1bn, primarily due to lower than anticipated realization and higher other expenses during the quarter. Lower generation across Rosa and Butibori also impacted blended realization during Q4FY17.

* Sasan’s PLF in Q4FY17 declined to 91.0% vs 94

17/04/2017 11:36:10 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Escorts Ltd For Target Rs.608.00 - Motilal Oswal

* We expect 22% YoY growth in revenue to INR9.8b, led by strong performance in the tractor division. Construction equipment division is also expected to perform well along with railways.

* EBITDA margin is likely to improve 350bp YoY to 8.3%, translating into EBITDA growth of 110% YoY to INR815m.

* We expect PAT to grow 69% YoY to INR513m. Buy.

 

14/04/2017 11:15:50 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Infosys Ltd For Target Rs.1,050.00 - Sharekhan

Key points

* Lackluster performance:

After a weak Q3FY2017, Infosys reported another lowerthan- expected performance for Q4FY2017. For the quarter, constant currency (CC) revenue remained flat on a sequential basis (QoQ), while the revenue in US dollar terms increased by 0.7% QoQ to $2,569 million. The below

14/04/2017 11:11:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Eicher Motors Ltd For Target Rs.28,811.00 - Motilal Oswal

* Royal Enfield’s volumes grew by 20% YoY (+2.5% QoQ) to 173,838 units, insulated by demonetization as it has an average waiting period of 2-3 months. Net realization is expected to improve by 1.8% YoY (+0.6 QoQ), supported by price hikes. EBITDA margin should expand 240bp YoY to 32% (+50bp QoQ), driven by operating leverage.

* VECV’s volume increased by ~11% YoY (+46.2% Q

14/04/2017 11:05:03 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Infosys Ltd For Target Rs.1,040.00 - Reliance Sec

Discouraging Performance, Disappointing Guidance

Infosys has delivered a below-par sequential performance in 4QFY17, with both revenue and margins missing our estimates by 1% and 46bps, respectively. USD revenue rose by 0.7% QoQ with flat revenue in CC terms, which reflects pressure in Retail (-2.7% QoQ) and Healthcare (-12.4% QoQ) verticals. Rather di

14/04/2017 10:55:36 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ceat Ltd For Target Rs.1,406.00 - Motilal Oswal

* We expect revenue to grow 2% YoY (QoQ up 6%) to INR16.5b in 4QFY17. Revenue growth will be subdued on account of volumes decline in Truck and Bus segment, and a fall in realizations.

* Margins are likely to contract 230bp YoY to 9% on account of volatility in raw material prices. EBITDA is expected to decline 19% YoY to INR1,488m.

* Thus, we estimate adjusted PAT at INR777

14/04/2017 10:50:18 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Infosys Ltd For Target Rs.1,000.00 - Emkay

FY17 started on a high and ends in a whimper

* Mar’17 quarter results missed expectations marking an end to a difficult FY17 that started on a high and ended on a low. The weak performance implies that the usual March blues stay for the company with Mar’16 quarter performance being the sole blip in recent years.

* Contrary to cert

14/04/2017 10:25:29 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Bosch Ltd For Target Rs.22,924.00 - Motilal Oswal

* Net revenue is likely to grow ~13% YoY (+4.4% QoQ) to INR27.9b led by pre buying sales before implementation of BS-IV in commercial vehicle and higher PV sales.

* EBITDA margin is expected to remain flat YoY, led by lower gross margin due to higher trading content and higher commodity prices.

* EBITDA is projected to grow 13% YoY to ~INR6.2b.

* Adjusted PAT is li

14/04/2017 10:15:39 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Essel Propack Ltd For Target Rs.254.00 - Emkay

Growth revival holds the key; Retain HOLD

We met with the management of Essel Propack to get recent updates on business and strategy for the company going ahead

* India business has attained normalcy in most of the categories post demonetization barring cosmetic business which is yet to normalize as companies

13/04/2017 3:57:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Forge Ltd For Target Rs.1,182.00 - Motilal Oswal

* We expect BHFC’s shipment tonnage to remain flat YoY to 52,649 tons, which is a an improvement from decline in the previous quarters as demand for class 8 trucks are showing signs of improvements along with revival in industrial segments. Net realization is likely to increase ~7% YoY to ~INR205.1k/ton.

* As a result net revenue would increase 7% YoY (+14% QoQ) to ~INR10.8b.

13/04/2017 3:39:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Auto Ltd For Target Rs.3,282.00 - Motilal Oswal

* Overall volume declined ~10% YoY (-7.5% QoQ) to 788k units due to a ~14% YoY decline in domestic volume, while Exports declined by ~3% YoY due to the impact of demonetization and transition to BS-IV from BS-III. Total 2W sales declined by ~7% in 4QFY17, while 3W volumes fell sharply by 28% YoY led by both domestic and exports falling by 30% & 25% respectively led by demonetization and cur

13/04/2017 3:34:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Amara Raja Batteries Ltd For Target Rs.1,084.00 - Motilal Oswal

* We expect AMRJ’s revenue to grow 15% YoY (+1% QoQ) to INR13.4b. Price hikes of 10% were taken from Nov-16 to Mar-17.

* Spot LME lead prices decreased ~4% QoQ in 3QFY17 —the impact is likely to be reflected in 4QFY17.

* EBITDA margin is likely to contract ~30bp YoY (+60bp YoY) to 16%. Price increase of 10% in last 5 months to offset the increase in raw material

13/04/2017 3:32:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ashok Leyland Ltd For Target Rs.94.00 - Motilal Oswal

* Volumes grew by 8% YoY (+45% QoQ), as M&HCV and LCV sales grew 10% and 3% YoY respectively, led by lower than expected pre buying before BS-IV implementation.

* We expect realization to decline by 1.6% YoY (-1.3% QoQ) led by continuous higher discounts due to lower demand.

* Net revenue is likely to grow 6.5% YoY (+43% QoQ), led by growth in volume and decline in reali

13/04/2017 3:27:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Future Lifestyle Fashions Ltd For Target Rs.331.00 - Emkay

Deleveraging the balance sheet

* In line with its stated strategy of de-leveraging the balance sheet, Future Lifestyle Fashions Limited (FLFL) has completed two transaction 1) Sale of 26% stake in Lee Cooper and raised Rs2.5bn and 2) Sale of 51% stake in investee brands and raised Rs4.5bn.

* Future Speciality Retail Limited (FSRL), housing th

13/04/2017 12:25:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Indoco Remedies Ltd - SPA Sec

Indoco Remedies is engaged in manufacturing, marketing and distribution of pharmaceutical products/services in domestic & international markets. Company has vast marketing network in domestic market and has supply agreements with companies like Actavis & Aspen to supply formulations to regulated markets. Company has 9 manufacturing facilities of which 4 are FDA approved. On account of F

13/04/2017 11:24:31 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Kaveri Seed Company Ltd - Sharekhan

Key points

* Stock run-up leaves less room for upside:

Since our initiation of the viewpoint note on Kaveri Seed Company (KSCL) on December 19, 2016, the stock has delivered ~36% return and is currently trading at a valuation of 16x /13x its FY2018E/FY2019E earnings. Our positive view was based on the govern

8/04/2017 11:44:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Phoenix Mills Ltd For Target Rs.431.00 - Emkay

Island Star throws positive valuation surprise

Key highlights of deal

*  Canada Pension Plan Investment Board (CPPIB) will initially infuse Rs7.24bn to own 30% in Island Star SPV and will take this up to 49% by investing ~Rs16bn cumulatively.

*  The money infused will be used for buying ou

6/04/2017 3:11:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Shree Cement Ltd For Target Rs.18,200 - Sharekhan

Key points

Cement price hike of Rs20/bag MoM in April 2017 implies better demand environment:

Shree Cement has undertaken a price hike of Rs20/bag MoM in April 2017 across all the regions where it has a presence. This clearly indicates pricing discipline and is in line with the price hikes undertaken by large pan-India cemen

6/04/2017 3:01:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Magma Fincorp Ltd For Target Rs.150.00 - Emkay

Moving in the right direction; Upgrade to BUY

Magma Fincorp recently concluded the sale of its hard bucket non-performing loans to the tune of Rs6.8bn (consolidated) at a haircut of Rs1.4bn (post-tax). Notwithstanding the one-time P&L hit, the sale should reduce asset quality pressures given the scheduled migration to 90-dpd NPL recognition in FY18

5/04/2017 4:40:54 PM | Posted in Broking Firm Views - Long Term Report read full news