Buy Yes Bank Ltd For Target Rs.382.00 - Motilal Oswal

Asset quality plays a spoilsport; loan/revenue growth remains robust

*  Yes Bank (YES) reported robust PPoP growth of 38% YoY/12% QoQ to INR19.1b (10% beat), led by strong 34% YoY growth in total revenues and controlled opex. However, asset quality deteriorated sharply, adversely impacted by high divergence of INR63.55b, and thus, resulted in 56%

1/11/2017 4:11:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cummins India Ltd For Target Rs.1,019.00 - Prabhudas Lilladher

Cummins (KKC) Q2FY18 performance was below expectations largely led by weak sales. Both domestic and export sales were weak, below expectations. Export sales were down 17% YoY while domestic sales were down 7% YoY. The slump in domestic sales was mainly due to disruptions from GST implementation and supply chain related issues. The outlook in domestic market continues to be positive led by stro

1/11/2017 4:04:47 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Hindustan Unilever Ltd For Target Rs.1278.00 - Kotak Sec

HUL’s 2QFY19 operating earnings were in-line with our estimates, while reported PAT came in 7% ahead of estimates (higher other income, and lower effective tax rate). Our earnings estimates are revised modestly upward. We believe revenue visibility has improved since last quarter (as the uncertainties associated with GST are overcome); however, higher input costs (crude-related) limit ups

1/11/2017 4:00:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Rallis India Ltd For Target Rs.233.00 - Emkay

* Standalone revenue increased by 11% yoy to Rs5.5bn, led by double-digit volume growth in domestic as well as international business. EBITDA margin improved by 100bps yoy to 23%, resulting in 16% yoy growth in EBITDA to Rs1.3bn.

* Metahelix revenue declined by 13% yoy to Rs393mn on account of higher-than-anticipated sales returns mainly of millet. However, EBITDA loss narrowed to Rs4

1/11/2017 3:55:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral United Spirits Ltd For Target Rs.2,970.00 - Motilal Oswal

Significant EBITDA beat led by gross margin improvement

* UNSP’s standalone net sales fell 3.7% YoY to INR19.5b, with a 15.9% YoY decline (est. of -7%) in overall volumes. Management attributed the decline in sales to the highway ban and the one-off impact of operating model changes. Management expects the highwa

1/11/2017 3:47:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Mphasis Ltd For Target Rs.670.00 - Motilal Oswal

Operating performance ahead of estimates; But again on the back of Services / Technical Helpdesk

* Strong growth and deal wins: MPHL’s revenue growth of 4.9% QoQ to USD242m was better than our estimate of 2.4%, and more broad-based with HP channel up 6% and Direct International pitching in 5%. It reported deals T

1/11/2017 3:40:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy L and T Finance Holdings Ltd For Target Rs.240.00 - Motilal Oswal

Strong performance continues

L&T Finance Holding’s (LTFH) 2QFY18 PAT grew 45% YoY to INR3.6b (12% above estimates). Robust core disbursement growth of 81% YoY (excluding IPO financing, which is more opportunistic), a pick-up in fee income across lending segments and a low tax rate were the key highlig

31/10/2017 4:19:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cummins India Ltd For Target Rs.1,150.00 - Motilal Oswal

Results miss estimates due to subdued revenues

* Operating performance below estimates: Cummins India’s (KKC) 2QFY18 revenue declined 10% YoY to INR11.5b (our estimate: INR14.1b). Gross margin improved 170bp YoY to 36.9%. EBITDA declined 16% YoY to INR1.7b (our estimate: INR2.3b), with the margin contracting 110b

31/10/2017 4:13:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.589.00 - LKP

Moving ahead steadily, confident guidance

Good quarter despite regulatory overhang

Zee’s topline in Q2 fell by 6.7% as domestic and international subscription revenues posted weak performances at a decline of 13.5% yoy and 14.1% yoy. Domestic Advertising revenues grew by just 2.9% yoy in difficult envir

31/10/2017 4:02:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki Ltd For target Rs.9,250.00 - Prabhudas Lilladher

It is safe to say that Maruti Suzuki’s (MSIL’s) Q2FY18 result surpassed expectations. The beat was on account of higher than estimated gross margins which was partially offset by lower than expected other income. Overall revenue growth for the quarter was up 21.2% YoY at Rs217.7bn, with absolute EBITDA up 21% YoY at Rs36.8bn (PLe: Rs30.9bn) and EBITDA margins at 16.9% (PLe: 14.3%),

31/10/2017 3:55:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Crompton Greaves Consumer Electricals Ltd For Target Rs.260.00 - Motilal Oswal

Robust all-round performance

* Results meaningfully above estimates: CG Consumer Electricals (CGCEL) reported a strong set of numbers. 2QFY18 sales stood at INR9.6b (+9.8% YoY, +15.9% YoY adjusted for excise duty on manufactured and sourced products), meaningfully above our estimates, led by market share gains in the F

31/10/2017 3:50:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Asian Paints Ltd For Target Rs.1230.00 - Kotak Sec

Healthy performance, but valuations commanding

High single digit volume growth in the decorative paint segment on the back of near normal monsoon, onset of festive season from October and latent demand post GST implantation, satisfactory performance in the industrial segment, but weak performance in the automotive paint segment were the highlight of t

31/10/2017 3:45:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hindustan Unilever Ltd For Target Rs.1,480.00 - Emkay

* Strong quarter on all fronts: Comparable domestic business grew by 10%; backed by 4% volume. Revenue stood at Rs82bn; EBITDA grew by 20% yoy to Rs16.8bn while APAT grew by 14% yoy to Rs12.4bn.

* All business segment reported strong growth with wholesale and CSD channel normalizing. Rural growth revival is expected to remain gradual. Management remains optimistic on rural recovery ba

31/10/2017 3:40:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Biocon Ltd For Target Rs.335.00 - Motilal Oswal

Plant disruption impacted performance; early remediation is key

* BIOS reported weak 2QFY18 results. Revenue declined 2% YoY to INR9.6b (est. of INR10.9b). The muted performance can primarily be ascribed to disruption at the Bangalore facility, pricing pressure in the US and delays in tenders in the emerging market. EBITDA declined 24.1% YoY (-5% QoQ)

31/10/2017 3:34:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold HCL Technologies Ltd For Target Rs.990.00 - Emkay

* HCL Tech reported revenues below estimate with CC growth of 0.9% qoq. Growth was impacted by closure of certain SI deals in India geography impacting revenue by c.US$20mn; adjusting for this, both IMS/AMS revenue would have been positive.

* It expects the impact to continue in H2FY18 to the tune of US$75mn due to absence of SI revenue in India business in subsequent quarters, along

30/10/2017 3:59:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Mind Tree Ltd For Target Rs.480.00 - Motilal Oswal

In-line operating performance; outlook for gradual recovery

* Adjusted profitability marginally ahead: MTCL’s 2Q revenue growth of 2.1% QoQ CC (est. of +2.2%) and dollar revenue growth of 3% QoQ to USD206m (est. of USD207m) were in line with our expectations. EBITDA margin expanded 50bp QoQ to 11.6% (est. of 11.8

30/10/2017 3:53:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Rallis India Ltd For target Rs.261.00 - Prabhudas Lilladher

Rallis India results were tad above our estimates with 9.1% & 16% growth in revenues and earnings respectively. Performance was driven by strong growth in agrochemical segment with 11.2% revenue growth; largely contributed by higher volumes. While new launches like Summit and Epic have started performing well,   Contaf series, Applaud, Takumi, Ergon etc have continued their good p

30/10/2017 3:47:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Zee Entertainment Enterprises Ltd For Target Rs.526.00 - Kotak Sec

Zee Entertainment’s operational results have come in modestly below our estimates (EBITDA lower 4%). While the company’s revenues have come in below estimates, the company’s advertising revenues have beaten industry growth. Reported PAT benefited from notional gains/ exceptional items. The management’s commentary on expectations in industry advertising revenue growth is

30/10/2017 3:38:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Exide Industries Ltd For Target Rs.254.00 - Motilal Oswal

EBITDA margin below estimate; lead inflation, mix dent performance

* Volume growth in Automotive, UPS, Telecom and Infra drives revenue: Net sales increased 23.2% YoY to INR23.7b (est. of INRb21.7), driven by growth in Auto OEM and replacement market (both 2Ws and 4Ws), UPS, Telecom and Infrastructure batteries. Our ch

30/10/2017 3:31:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Jayant Agro-Organics Ltd - SPA Sec

Jayant Agro-Organics Ltd (JAOL), manufactures castor oil and castor-oil-based derivative products. Company in total has 100+ products and also has more than 300 products in R&D. Company has complete value chain of castor oil and has also diversified by forming JV's with other companies. In our recent interaction, management sounded optimistic about growth given India's strong hold i

30/10/2017 3:23:46 PM | Posted in Broking Firm Views - Long Term Report read full news
AccumulateChambal Fertilisers and Chemicals Ltd For Target Rs.158.00 - Emkay

* In line revenues at Rs20.9bn (-3% yoy) on the back of muted sale of urea as well traded fertilizers due to advancement of sales to Q1FY18. EBITDA came in at Rs2.2bn (flat yoy) and was also in line with our estimate

* EBITDA per MT stood flat yoy at Rs2420/MT but was lower compared to Q1FY18 at Rs2530/MT. EBITDA margins improved marginally by 30bps yoy to 10.6% and was tad lower than

30/10/2017 3:10:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral GlaxoSmithKline Pharmaceuticals Ltd For Target Rs.2,500.00 - Motilal Oswal

Revenue impacted by GST rollout; margins surprise positively

* GSK Pharma’s (GLXO) 2QFY18 sales increased 6.8% YoY (+43% QoQ) to INR8.4b (5% miss). Other income came in lower at INR96m v/s INR343m in 2QFY17. EBITDA increased significantly by 54.3% YoY to INR1.9b (+25% v/s our est.), primarily led by a decline in other expense (as % of sales) by

30/10/2017 12:39:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Raymond Ltd For Target Rs. 1,059.00 - Emkay

Revenue in-line, but beat on margins

*  Revenue in-line, but beat on EBITDA margins; Consolidated revenue grew by 3% yoy to Rs 15.9bn. EBITDA margins improved by 200bps to 8.6% driven by operational efficiencies; APAT stood at Rs 390mn, up 29% yoy

*  While branded apparels grew by 13%, weak exports and suiting sales impacted branded

28/10/2017 2:21:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Radico Khaitan Ltd For Target Rs. 236.00 - Kotak Sec

Radico Khaitan Ltd (RKL) Q2FY18 results were ahead of our estimates. The net revenue for the quarter grew by 0.6% yoy to Rs 4.48 bn and was ahead of our estimates, led by above expected volume in the quarter, which grew by 4.3% to 4.7 mn cases. The impact of recent highway liquor ban started to normalize in Q2FY18 after the Supreme Court clarification which allowed highways liquor stores within

28/10/2017 2:14:01 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Infosys Ltd For Target Rs. 1,070.00 - Prabhudas Lilladher

Infosys’ results were steady with USD revenues in‐line with our estimates and EBIT margin and PAT ahead of our estimates. EBIT Margins at 24.2% has surprised positively (PLe: 23.3%) led by headcount reduction and mix shift of effort in favour of offshore. Constant currency revenue growth for the quarter stood at 2.2% QoQ in‐line with our estimates (PLe: 2.2%). We note that TCS deliver

28/10/2017 2:09:18 PM | Posted in Broking Firm Views - Long Term Report read full news