Buy Manpasand Beverages Ltd For Target Rs.843.00 -   Motilal Oswal Sec

EBITDA margin beats estimate, capacity expansion on track; Buy

* Revenue in line; EBITDA and PAT higher than estimated:

MANB’s revenue grew 11.6% YoY to INR1,025m (our estimate: INR989m). EBITDA margin expanded 70bp YoY to 20% (our estimate: 18.1%), driven by 460bp YoY dip in other expenses, but partly o

7/03/2017 2:40:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Adani Ports Ltd For Target Rs.355.00 - Emkay

Muted quarter

* Adani Ports (ADSEZ) consolidated revenue stood at Rs22.3 bn; adjusting for SEZ income of Rs2.01 bn, revenue came at Rs20.3 bn +19.7% YoY higher than expectations of Rs18.4 bn, driven by higher realizations, up 11% on a blended basis at Rs494/ton

* Port income stood at Rs17.5 bn +18.6% YoY as consolidated volume grew by 8% YoY

6/03/2017 3:55:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Natco Pharma Ltd For Target Rs.655.00 - RCML

gTamiflu drives Q3 beat; valuations expensive – SELL

NTCPH has posted stellar results yet again, with Q3FY17 revenue/PAT beating our estimates by 43%/89%, driven by exclusivity sales in gTamiflu. We remain optimistic on NTCPH’s long-term outlook given its strong R&D skillset and US pipeline enhancement post-Vizag commercialisation. But

6/03/2017 3:50:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Repco Home Finance Ltd For Target Rs.720 - RCML

Big miss on asset quality 

REPCO’s Q3FY17 PAT stood at Rs 464mn (+20% YoY), in line with our estimates. The loan book grew 21% YoY while sanctions/disbursements declined 31%/14% YoY. NIMs and spreads were down 10bps QoQ. REPCO’s GNPA ratio deteriorated by 25bps QoQ to 2.65% (4.2% without RBI forbearance). Management expects the demonet

6/03/2017 3:44:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell SAIL Ltd For Target Rs.44.00 - Emkay

Better Realizations offset by higher cost

* Topline stood at Rs126bn, up 25% YoY and 0.3% QoQ, primarily driven by higher volume at 3.3 mt (+14%/-8% YoY/QoQ) and better realization at Rs 38241 (+10%/+9.5% YoY/QoQ).

* EBITDA was in red at Rs -428 mn (vs our expectation of Rs 158 mn loss). More than expected Increase in raw material cost (+32%

6/03/2017 3:13:01 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Escorts Ltd For Target Rs.469.00 - Motilal Oswal Sec

Strong quarter; Margin expansion to drive earnings

* Tractors drive strong performance:

3QFY17 revenue grew robustly by 23% YoY to INR10,929m (est. of INR10,746m), driven by a strong performance in Tractors (revenue +26% YoY, volumes +25% YoY) and Construction equipment (revenue +14% YoY). On account of unfavo

6/03/2017 3:01:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Orient Refractories Ltd For Target Rs.183.00 - Emkay

Imminent takeoff; Powered by structural moat

* Orient Refractories Ltd (ORIENT) demonstrates inherent strength on margin and returns despite being in a cyclical business, a combination that draws a favorable picture. Investment rational draws upon improving global prospects and rising domestic penetration.

* On the back of parental support (R

6/03/2017 2:54:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Endurance Technologies Ltd For Target Rs.732.00 - Motilal Oswal Sec

Above est.; strong growth in subs; lower other exp. drives performance

* Consol. net sales grew ~2.4% YoY to ~INR13.2b (est. of ~INR12.9b), driven by ~10% growth in EU business. S/A revenues fell ~1% YoY, despite ~4.4% decline in 2W volumes, driven by RE, ramp-up with HMSI/HMCL, and strong growth in Aftermarket (+33% YoY) and Exports (+24%). EU busines

6/03/2017 2:35:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold NMDC Ltd For Target Rs.140.00 - RCML

Strong Q3 but steel capex a key overhang – HOLD

NMDC’s Q3 adj. EBITDA/PAT surged 72%/28% QoQ to Rs 14bn/Rs 9.8bn, beating estimates on account of stronger volumes and realisations. While the volume-led profitability rebound and expectations of a high dividend payout are key positives, an exit from the steel business and GOI’s stake sa

6/03/2017 2:22:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy United Breweries Ltd For Target Rs.1,044.00 - Motilal Oswal Sec

Operating performance slightly below expectations

* UBBL’s net sales declined 6.6% YoY (est. of -1.1%) to INR10.25b, with underlying volume down 8% YoY, in line with industry. Liquidity crunch post demonetization impacted sales. YTD volumes were flat in a period when industry declined by 2%. EBITDA declined 27.3% YoY (est. of -22

4/03/2017 2:42:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Triveni Turbine Ltd For Target Rs.140.00 - Sharekhan

Key points

* Better execution of export orders leads to strong operational performance:

Triveni Turbine’s Q3FY2017 revenue was flat YoY at Rs198 crore. This was mainly led by a decline in domestic revenue (down 47% YoY) due to a muted capex cycle. However, exports revenue grew manifold to Rs105 crore fro

4/03/2017 2:33:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Accmulate Magma Fincorp Ltd For Target Rs.115.00 - Emkay

Demonetizationderails the recovery process

* Magma Fincorp’s Q3FY17 earnings came in above expectations on the back of RBI dispensation utilized for the tractor portfolio and maintenance of tight leash on opex during the quarter; disbursements growth and asset quality was hit due to demonetization

* Gross NPLs (on 120-dpd basis) rose to

4/03/2017 2:19:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ahluwalia Contracts (India) Ltd For Target Rs.350.00 - RCML

Strong YoY performance, order backlog comfortable

AHLU’s Q3FY17 results (revenue/PAT: +12%/+23% YoY to Rs 3.6bn/ Rs 244mn) were slightly behind RCMLe. However, the company saw strong YoY growth led by a higher opening order book and better profitability as margins rose 82bps YoY to 13.2%. AHLU ended Q3 with an order backlog of Rs 40bn to be execu

4/03/2017 2:05:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral ABB India Ltd For Target Rs.1,190.00 - Motilal Oswal Sec

In line at the operating level; order jump driven by HVDC order

* Operational performance in line with expectations:

4QCY16 revenues of INR24.9b (+3% YoY) came in below our estimate of INR26.8b, while EBIDTA margin of 11.3% (+40bp YoY) was ahead of our estimate of 10.2%. Miss on revenue was due to weak executi

4/03/2017 1:47:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Mangalam Cement Ltd For Target Rs.302.00 - Emkay

Cost pressures inching up, downgrade to HOLD

* Mangalam Cement’s (MGC) Q3 result was better than our estimates with EBITDA at Rs205mn against an estimated Rs156mn and OPM at 8.8% against an estimated 7.7%, led by higher-than-estimated volume and realization.

* Sales volume was up 5.4% YoY to 0.64mt (estimate: 0.57mt). Realization was up

4/03/2017 1:38:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Petronet LNG Ltd For Target Rs.480.00 - RCML

Transitioning to utility model

PLNG underperformed on key operating metrics in Q3FY17, with PAT at Rs 4bn (-14% QoQ) due to (a) lower EBITDA of Rs 6bn (-16% QoQ) or Rs 32/mmbtu (-18% QoQ) on softer spot LNG volumes and (b) muted volumes at 191tbtu (+1% QoQ). The expanded capacity at Dahej is operating at 95% utilisation levels led by a pick-up in offta

4/03/2017 1:30:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On KM Sugar Mills Ltd - Sharekhan

Key points

* Re-iterate positive stance; delivers 17% returns since our initiation under a month back:

KM Sugar Mills’ (KM Sugar) stock price has surged by 17% since our viewpoint initiation on January 11 on the back of exceptionally strong Q3FY2017 results and overall uptrend in sugar stocks. We see fur

4/03/2017 12:40:01 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold AIA Engineering Ltd For Target Rs.1,250.00 - RCML

Volume beat; valuations rich – HOLD

AIAE’s Q3FY17 consolidated EBITDA/PAT were in line with our expectations at Rs 1.7bn/Rs 1.2bn, up 8.4%/7% QoQ. Volumes beat estimates with mining volume share increasing 290bps QoQ to 64%. Management continues to expect 120kt of volume addition over the next three years. We like the stock but find valuati

1/03/2017 4:21:31 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bayer CropScience Ltd For Target Rs.4,660.00 - Religare Sec

Challenging outlook, rich valuations

BYRCS’s Q3FY17 revenue grew 21% YoY driven by both domestic sales (+18% YoY, +16% YTD) and exports (+46% YoY, -10% YTD). EBITDA grew a mere 4% YoY due to a sharp increase in raw material expense. Management indicated that 2017 would be challenging year, though a good monsoon could offer some respite. We expect

1/03/2017 4:08:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sutlej Textiles and Industries Ltd For Target Rs.1,032.00 - Religare Sec

Sutlej Textiles

Incorporated in 2005, Sutlej Textiles Industries Ltd. (STIL) is India's largest spun dyed yarn manufacturer and a leading textile player with presence across value chain from Yarn to Home Textile. It holds leadership position in cotton melange yarn segment. With a total installed capacity of 3.78 lac spindles of Yarn and 8.4mn metre

1/03/2017 3:25:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ratnamani Metals & Tubes Ltd For Target Rs.770.00 - Sharekhan

Key points

* Robust operating performance:

Ratnamani Metals & Tubes (RMTL) reported better-than-expected Operating Profit Margin (OPM) at 20.4% (up by 640BPS YoY and 500BPS QoQ) in Q3FY2017, led by lower input costs and higher contribution from the value-added products. Consequently, the net profit grew by

1/03/2017 3:10:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Crompton Greaves Ltd For Target Rs.45.00 - Motilal Oswal

Standalone performance ahead of expectations

* Standalone business delivers above expectation performance

Standalone revenues rose 10% YoY to INR11.6b (estimate of INR10.4b), driven by 16.2% growth in the industrial segment. EBIDTA margin at 6.6% were in-line with our estimate of 6.6%. PAT of INR0.8b was ahead

1/03/2017 2:40:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Lpca Laboratories Ltd For Target Rs.540.00 - Motilal Oswal

Weak quarter; resolution of FDA issue key

* 3QFY17 revenue of INR7.4b (+8% YoY) came in 8% below our estimate, primarily due to lower-than-expected domestic formulations sales growth of ~9% YoY. Although gross margin expanded >400bp QoQ due to seasonality, EBITDA margin was flat QoQ due to higher other expenses (31% of sales) and employee cost (22%)

1/03/2017 2:33:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Idea Cellular Ltd - Emkay

Painful quarter

* Competitive headwinds from Jio’s free offering dented Idea’s performance, similar to that of Bharti Airtel and Vodafone India’s performance. Both voice (-10.6% qoq) and data realization (-15.2% qoq) were weaker than expected.

* Higher voice traffic was on account of double digit increase in incoming minutes

1/03/2017 1:13:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Srikalahasthi Pipes Ltd For Target Rs.390.00 - Reliance Sec

Piping Gains

Srikalahasthi Pipes (SPL) – formerly Lanco Industries – is an Andhra Pradesh based integrated manufacturer of Ductile Iron (DI) pipes. In DI pipes segment, SPL enjoys ~15% market share on pan-India basis, while in focussed Southern & Western markets, it enjoys ~75% market share. On the back of fresh governmental thrust on i

1/03/2017 12:56:30 PM | Posted in Broking Firm Views - Long Term Report read full news