Buy Indiabulls Housing Finance Ltd For Target Rs.1,150.00 - Motilal Oswal

* We expect strong loan growth to continue, driven by retail home loans. We estimate 8% QoQ and 28% YoY loan growth.

* Margins are expected to remain largely stable. Net income should grow 27% YoY.

* Expenses are likely to grow 22% YoY, resulting in modest decline in cost-income ratio.

* Asset quality is expected to remain stable. In 3QFY17, GNPAs were at 0.85% and

6/05/2017 12:36:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Financial Inclusion Ltd For Target Rs.894.00 - Edelweiss

Bharat Financial Inclusion (BFI) reported Q4FY17 loss of INR2.35bn, lower than our and Street’s estimates on higher credit cost (INR3.35bn) as the company sustained its aggressive NPL recognition policy (60dpd versus RBI’s mandate of 90dpd). But, core operating performance was healthy (AUM growth of >19%), indicating swift recovery post demonetisation. Management continues to tar

5/05/2017 2:32:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Axis Bank Ltd For Target Rs.507.00 - HDFC Sec

Wounded, not healing soon

AXSB’s 4QFY17 earnings beat estimates, but only optically. The NIM improvement was led by a one-off benefit from write back of interest reversals (13bps). One-off recoveries/upgrades and higher write-offs kept GNPAs in check, despite high slippages (incl. the one-off cement exposure).

AXSB also utilised SDR and

5/05/2017 2:17:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Federal Bank Ltd For Target Rs.125.00 - Sharekhan

Key points

* Business momentum continues:

Federal Bank has posted robust results for Q4FY2017 on the back of strong business traction and an improved asset quality, which was a significant achievement considering the continued challenges confronted by some of its comparable peers. At Rs842 crore, Net

5/05/2017 2:10:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shriram Transport Finance Ltd For Target Rs.1,159.00 - Reliance Sec

Operating Performance In-line; Higher Provisioning Drags PAT

Shriram Transport Finance Company (STFC) has reported a subdued performance in 4QFY17 with its net profit rising by mere 4% YoY (-56.7% QoQ) to Rs1.5bn. Provisioning for bad debts rose by 6.3% YoY and 44.6% QoQ to Rs6.1bn, as collections continued to remain sluggish in certain pockets along w

5/05/2017 2:03:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold LIC Housing Finance Ltd For Target Rs730.00 - Emkay

Margins surprise positively

* LIC Housing Finance’s (LICHF) operating performance in Q4FY17 was better than expected on the back of better than expected margins; however, higher than expected provisioning costs led to in line earnings

* NIMs expanded 23bp qoq (+26bp yoy) to 2.97% (higher than expected) as the fall in calculated cost of

5/05/2017 1:56:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Hexaware Technologies Ltd For Target Rs.220.00 - Motilal Oswal

* We expect USD revenue to grow 0.8% QoQ to USD140m (0.5% QoQ CC).

* Although QoQ growth is expected to be soft, the quarter would strike 15% YoY growth, signifying strong momentum in the business.

* EBITDA margins have been steady over the last two quarters despite wage hike, resulting out of strong volume growth and improvement in operational efficiencies.

* Howe

5/05/2017 1:47:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ambuja Cement Ltd For Target Rs.240.00 - Reliance Sec

Performance Misses Estimates Despite Better Volume

Ambuja Cements (ACL) has reported a lower-than-estimated operating performance in 1QCY17 owing to subdued realizations and higher-than-estimated jump in operating cost. Its EBITDA came in at Rs3.65bn (-14% YoY and +24% QoQ), while EBITDA margin stood at 14.4% (-328 bps YoY). EBITDA/tonne came in merely

4/05/2017 3:05:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ashok Leyland Ltd For Target Rs.98.00 - Motilal Oswal

EGR Solution for BS4 could give competitive advantage

Focus on making business acyclic

We attended the Ashok Leylands’ Global Conference 2017, themed ‘Conquer New Frontiers’. Mr Dheeraj Hinduja (Chairman) and Mr Vinod Dasari (MD) highlighted initiatives taken by AL to leverage on evolving CV industry dynamics and making busi

Buy Maruti Suzuki Ltd For Target Rs.7.070.00 - HDFC Sec

Premium virtues

Maruti Suzuki (MSIL) delivered in line revenue (+20% YoY to Rs 183bn) in 4Q. EBIDTA margins came in lower at 13.9% (-129bps YoY), impacted by higher commodity prices and RM cost (+359bps YoY). APAT came in lower than expectations at Rs 17bn (+15% YoY), owing to margin contraction and higher-than-expected depreciation.

We remai

4/05/2017 2:40:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Federal Bank Ltd For Target Rs.125.00 - Reliance Sec

Fabulous Feat on all Fronts

Federal Bank has surprised the market for another successive quarter by delivering strong growth in operating profit and loan book in 4QFY17. Its operating profit grew by 39.2 YoY & 15.6% QoQ to Rs5.5bn led by 22.8% YoY & 6.4% QoQ growth in NII and 41% YoY & 21.5% QoQ growth in other income. Provisioning expenses

4/05/2017 2:16:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Rallis India Ltd For Target Rs246.00 - Emkay

Operating performance in line with estimates

* Q4 consolidated revenues declined marginally by 1% yoy to Rs3.7bn and below our estimate of Rs3.8bn. Standalone revenues came flat yoy at Rs3.5bn while Metahelix revenues declined 20% yoy to Rs205mn.

* Gross margin improved 290bps yoy to 42.7% on the back of better product mix while EBITDA margin

4/05/2017 2:09:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Forge Ltd For Target Rs.1,266.00 - Motilal Oswal

Creating a future ready organization

Import substitution and Defence offers multi-decade opportunity

We visited Bharat Forges’ Kalyani Center for Technology Innovation (KCTI) at Pune. KCTI is an umbrella unit catering to BHFC’s requirement of innovation, R&D, testing and advanced learning. We g

4/05/2017 2:01:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ACC Ltd For Target Rs.1,521.00 - Motilal Oswal

Volume growth led by capacity expansion

* Volume trend reversal after three quarters: 1QCY17 volumes increased 3.8% YoY to 6.60mt (est. of 6.49mt), led by ramp-up of new capacity in the east. Cement realization of INR4,265/t (+4% YoY, -2% QoQ) was marginally below our estimate of INR4,297/t. However, the full impact of

3/05/2017 4:02:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold KPIT Technologies Ltd For Target Rs.130.00 - Reliance Sec

‘Balancing Act’ for FY18 – A Challenge Too Steep

KPIT Technologies (KPIT) recorded a healthy growth in USD revenue by 4.5% QoQ to US$128.3mn (including an inorganic component of US$4mn) in 4QFY17. On an organic basis, KPIT recorded sequential growth of 1.2%. EBITDA margin remained flattish despite strong revenue growth and slightly hi

2/05/2017 3:19:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Mahindra Finance Ltd For Target Rs290.00 - Emkay

Long road to recovery

* Mahindra Finance’s (MMFS) Q4FY17 performance continued to disappoint on the asset quality front with NPLs as well as credit costs remaining at elevated levels. Persistent asset quality pressures led to reversal of provisioning benefits taken during Q1FY17

* Reported GNPLs fell 17% qoq (-27% qoq without RBI dispen

2/05/2017 3:13:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HDFC Bank Ltd For Target Rs.1,790.00 - Motilal Oswal

Stellar performance on all fronts

* HDFC Bank’s (HDFCB) 4QFY17 PAT grew 18% YoY (2% beat) to INR39.9b, led by 27% YoY PPoP growth (10% beat). The bank delivered robust loan growth, strong cost control, margins improvement and impeccable asset quality.

* Loans grew 12% QoQ and 19% YoY to INR5.55t. Note that sequential growth is off a low

2/05/2017 2:53:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zensar Technologies Ltd For Target Rs.1,023.00 - HDFC Sec

Short-term blip, digital onboarding

Zensar delivered poor 4Q numbers, both on the revenue and margin fronts, led by a steep decline in IMS revenue (-25.6% QoQ). Digital (34.1% of revenue) remains Zensar’s core strength, and grew 8.2% QoQ led by the Foolproof acquisition and 11 digital deal wins. We believe that (1) A strong relationship with Orac

2/05/2017 2:46:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Developers Ltd For Target Rs.305.00 - Sharekhan

Key points

* Launch of India’s maiden InvIT at conservative valuation:

IRB Infrastructure Developers will be launching India’s maiden Infrastructure Investment Trust (InvIT) to raise Rs5,035 crore (comprising a fresh issue of Rs4,300 crore and offer for sale of 3.48 crore units) at a price band o

2/05/2017 2:37:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Axis Bank Ltd For Target Rs.502.00 - Reliance Sec

Elevated Credit Cost to Drag Performance

Axis Bank has delivered yet another dismal quarterly performance on operating and assets quality front in 4QFY17. Its operating profit declined by 0.5% YoY and 5.7% QoQ to Rs43.7bn led by muted growth in operating income (+6.8% YoY and +0.1% QoQ to Rs77.4bn) and higher operating expenses (+18.2% YoY and +8.8% Qo

2/05/2017 2:30:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Persistent Systems Ltd For Target Rs620.00 - Emkay

Hoping for margin uplift alive after a long streak of moderation

* Persistent’s overall revenue performance remained below in the Mar’17 quarter despite very solid performance in the Digital and Accelerite portfolio (+10% QoQ in each)

* EBITDA margins improved by 40 bps sequentially to 16.3% despite one time provisions on litigati

2/05/2017 2:25:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy MindTree Ltd For Target Rs.530.00 - Motilal Oswal

* MTCL’s performance has been impacted since the last couple of quarters because of softness in top accounts, project cancellations, delays in decision making and deterioration in the performance of acquisitions.

* These factors are expected to play on performance in 4Q as well, restricting signs of a revival. While we expect 1.5% QoQ CC growth, we expect a headwind of 40bp due

2/05/2017 2:17:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Wipro Ltd For Target Rs460.00 - Emkay

Flatters to deceive

* Mar’17 quarter revenue performance decent with strong sequential revenue performance across verticals like Financial Services, E&U and Retail. IT Services EBIT margins however declined by ~70 bps sequentially to 17.6%, adjusted for one off items

* June’17 quarter revenue guidance disappoints ;continuing t

1/05/2017 11:27:00 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan ZincLtd For Target Rs.268.00 - Motilal Oswal

* We expect HZL’s EBITDA to increase 29% QoQ (+2x YoY) to INR35.8b on higher prices and volumes. Zinc LME is up 10% QoQ to USD2,777/t, while lead LME is up 6% QoQ to USD2,276/t. Mine production is estimated to increase by 11% QoQ to 305kt. Refined zinc sales volumes, however, are estimated to be flat QoQ at 210kt as company sold concentrates. We expect ~25kt of concentrate sales during th

1/05/2017 11:17:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell LIC Housing Finance Ltd For Target Rs.600.00 - HDFC Sec

Margin boost through non-core book

LICHF’s 4Q results came in better than expectations, owing to higher growth (64%/28% YoY/QoQ) in the non-core (LAP+ Project) portfolio, thereby increasing its share to 16.7% (11.5% in 4QFY16). NIM expanded to 2.97% supported drop in COF, which fell 66bps.

Supported by higher NII, PAT increased 18% to R

1/05/2017 10:56:35 AM | Posted in Broking Firm Views - Long Term Report read full news