Positive On Aditya Birla Fashion & Retail Ltd - Sharekhan

Key points

* Revenue ahead of expectation, higher rent expenses hurt profitability:

For Q3FY2017, Aditya Birla Fashion & Retail’s (ABFRL) overall revenue grew by 4.7% YoY, mainly led by a 12% YoY growth in Pantaloons, while Madura Fashion & Lifestyle’s (MFL) revenue marginally declined dur

28/02/2017 4:12:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coal India Ltd For Target Rs.345.00 - RCML

E-auction business on road to recovery

Coal India’s (CIL) Q3 net sales and EBITDA were largely in line, while PAT at Rs 28.8bn missed estimates by 6%. The key positive was a 31%/17% QoQ rise in e-auction volumes/prices. FSA realisations are yet to pick up as the 6.3% price hike taken in May’16 has been offset by a poorer grade mix thus far

28/02/2017 4:03:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Thermax Ltd For Target Rs.831.00 - Emkay

International business offset domestic slowdown

* TMX Q3FY17 operational results have come in below our expectations. Consolidated revenues declined by 20% YoY while EBIDTAM increased by 210bpsYoY to 9%. APAT remained stable at Rs548mn.

* Consolidated order booking increased by 19%YoY to Rs12bn while order backlog declined by 4%YoY to Rs46bn.

28/02/2017 3:56:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy CESC Ltd For Target Rs.970.00 - Motilal Oswal

Spencer turns EBITDA break-even

Standalone PAT grew 4.8% YoY in 3QFY17

n CESC’s 3QFY17 standalone PAT grew 4.8% YoY to INR1.5b (5% beat), as it continues to efficiently manage the impact of the negative bid for the captive coal block through regulated equity growth and operating efficiency.

n

28/02/2017 3:49:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gabriel India Ltd For Target Rs.130.00 - Sharekhan

Key points

* Q3FY2017 results surprise positively; decent nos despite demonetisation pressure:

Gabriel India (GIL) posted decent set of results for Q3FY2017 in spite of a challenging environment on the back of demonetisation. Revenue grew by 5% YoY to Rs374 crore as against our expectation of a flat topline.

28/02/2017 3:40:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sun TV Network Ltd For Target Rs.850.00 - Emkay

Looking beyond FY17

* Sun TV’s advertisement revenues (-6.8% yoy) were impacted by demonetization, which was more intense as compared to Zee Entertainment, due to higher dependence on regional/local advertisers.

* Cable TV subscription revenues were higher than estimate albeit partially due to change in accounting treatment. Content cos

28/02/2017 3:32:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Bharat Petroleum Corporation Ltd For Target Rs.675.00 - RCML

GRMs outperform but positives priced in BPCL reported Q3FY17 earnings of Rs 22.7bn, higher than our estimate on account of GRM outperformance at US$ 5.9/bbl and inventory gains of Rs 6.7bn. Marketing margins, adjusted for inventory gains, were under pressure (EBITDA/mt: -28.5% YoY, -12.5% QoQ). Market sale volumes at 10.5mmt (+8% YoY) underperformed industry growth, implying loss in market shar

28/02/2017 3:17:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Nestle India Ltd For Target Rs.5647.00 - Reliance Sec

Benefiting from lower base effect, Nestlé India has reported 16.2% YoY growth in revenue to Rs22.6bn in 4QCY16. Its domestic sales increased by 17% YoY, while exports sales registered 8% YoY growth. Despite 12.2% YoY rise in EBITDA to Rs3.8bn, net profit fell by 8.7% YoY to Rs1.7bn primarily due to provisions for contingencies of Rs810mn. Though we expect Nestlé to report revenue

28/02/2017 3:11:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Aurobindo Pharma Ltd For Target Rs.860.00 - Emkay

Pricing dynamics deteriorate; Injectables portfolio a saving grace

Result highlights

* Revenues in line but minor miss across EBITDA and Net income. EBITDA margins came lower by c120bps as compared to our estimates. Net debt levels have fallen from USD640mn in March 2016 to USD410mn; however debt to trend hig

28/02/2017 1:37:25 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mayur Uniquoters Ltd For Target Rs.490.00 - RCML

Demonetisation hurts growth

MUNI reported a 5.3% YoY drop in its Q3 revenues to Rs 1.1bn, as volumes declined ~6% YoY on a slowdown in the domestic footwear segment post demonetisation. Despite higher gross margins, (+158bps YoY), EBITDA margins slid ~119bps YoY to ~26.2% on higher other expenditure (+368bps YoY). Adj. PAT was in line at Rs 172mn (-9.

28/02/2017 1:31:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Power Ltd For Target Rs.59.00 - Emkay

Adjusted PAT in line with estimates; Maintain a BUY

* PAT at Rs2.8bn (+14.4% YoY) was below our estimates of Rs2.4bn, however after adjusting for quarterly one-offs of Rs1500mn for depreciation, Rs750mn for interest and Rs750mn for other income; adjusted PAT came in at Rs4.0bn (in line with our estimate)

* Sasan’s PLF in Q3FY17 declined

28/02/2017 12:35:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kalpataru Power Transmission Ltd For Target Rs.342.00 - Reliance Sec

Kalpataru Power Transmission (KPTL) has delivered a strong performance in 3QFY17, aided by better execution of projects. Though its standalone revenue grew by 29% YoY, its subsidiaries reported decline in revenue. JMC Projects’ revenue declined by 4.8% YoY with margins at 8.8%, while Shree Shubham Logistics’ revenue plunged by 55% impacted by demonetization. We expect KPTL to be a k

28/02/2017 12:28:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Siemens Ltd For Target Rs.1,340.00 - Motilal Oswal

Operational performance above estimates

* Operating performance above expectations:

Siemens’ (SIEM) 1QFY17 operating performance was above our expectations. Revenues from continuing business (excl. MT and healthcare) were up 16% YoY to INR22.9b (marginally above our estimate of INR22.7b). EBIDTA stood

28/02/2017 12:22:01 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Relaxo Footwears Ltd For Target Rs.525.00 - Sharekhan

Key points

* Performance better despite ‘demon’ phase; PAT grows at low single digit rate:

For Q3FY2017, Relaxo Footwears’ (Relaxo) revenue stood flat at Rs391.0 crore in the demonetisation phase, but was better than our expectation of Rs357.8 crore. The better revenue performance can be att

28/02/2017 12:16:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Forge Ltd For Target Rs.1,110.00 - Motilal Oswal

In-line; Recovery seen in majority of segments

* Tonnage declined ~7% YoY (+2% QoQ) to ~47,068MT, while realizations improved 4% QoQ (-4% YoY) to ~INR200k/tonne, driven by mix improvement. Net revenues declined 11% YoY (+6% QoQ) to INR9.4b (est. of INR9.2b).

 

* Export revenues increased ~7% QoQ (-24% YoY), driven by a recover

28/02/2017 12:05:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Lupin Ltd For Target Rs.1,730.00 - Prabhudas

* Overall beat on better show in US and ROW markets:

Lupin’s sales, adj. EBITDA and PAT grew by 31%, 75% and 21% yoy respectively vs our estimates of 22%, 34% and 14%.. Lupin revenue growth from US and ROW markets were 58% and 22% YoY respectively. Glumetza was major driver in US market and Branded business drove ROW market growth in Q3FY17. Wit

28/02/2017 11:56:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy HSIL Ltd For Target Rs.350.00 - Emkay

Revenue revival in Building Products segment holds key; Retain BUY

* Steady revenue but margins drag – Revenues at Rs 4.8bn down 1.4% yoy, EBITDA down 24.3% yoy to Rs 722mn and APAT at Rs 265mn down 33.6% yoy

* Building products grew by 5.5% amid challenging market. Sanitaryware grew by 2% and Faucets grew in double digits while consume

25/02/2017 4:37:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hero Motocorp Ltd For Target Rs.3,375.00 - RCML

Margins ride on lower RM cost, LEAP benefits

HMCL posted above-expected EBITDA margins of 17% (RCMLe: 15.1%) for Q3 driven by lower commodity costs and LEAP programme benefits. PAT too beat estimates (Rs 7.7bn vs. RCMLe Rs 7bn) on better operating metrics. Margins however are likely to trend down due to RM cost pressures in Q4. We raise our FY18/FY19 E

25/02/2017 4:20:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Oriental Bank of Commerce For Target Rs.114.00 - Motilal Oswal

Stress addition remains high; Return ratios to remain low

* OBC delivered a weak core performance with reported loss of INR1.3b (est. of earnings of INR2b), primarily led by weak core operating profit (-9% YoY to INR5.5b) and high NPL provisions (INR14.3b – second highest in the history of the bank; est. of INR6.1b).

 

*

25/02/2017 4:05:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sobha Ltd For Target Rs.401.00 - Emkay

Awaiting recovery

Result highlights

* Higher than expected revenue recognition from real estate as well as contractual segment led to Sobha (SOBHA) reporting revenues and earnings well ahead of estimates.

* As expected, new sales bookings declined 24% YoY in volume terms to 0.61msf and 22% in value t

25/02/2017 3:31:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Indraprastha Gas Ltd For Target Rs.1,027.00 - Emkay

Meets expectations; Maintain Buy

* Results came in line with our and consensus estimates as EBITDA came in at Rs2.47bn (+0.9% qoq) v/s our estimate of Rs2.42bn while PAT came in at Rs1.45bn (+0.3% qoq) against our estimate of Rs1.42bn.

* As expected, CNG volumes declined -1.7% qoq to 309mmscm due to demonetization while PNG volumes grew +2.0%

25/02/2017 3:27:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold NALCO Ltd For Target Rs.60.00 - Reliance Sec

National Aluminium Company (NALCO) has posted strong performance in 3QFY17, which was largely in-line with our estimate. EBITDA increased by 102% YoY and 66% QoQ to Rs2.85bn tad lower than our estimate of Rs2.98bn, as its alumina realization declined to US$269/tonne vs. our estimate of US$295/tonne. Continuing its northward movement, power cost rose by 16% YoY and 12% QoQ to Rs5.9bn, which we a

25/02/2017 3:18:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Union Bank of India Ltd For Target Rs.110.00 - RCML

All misses no hits

UNBK’s Q3FY17 PAT tanked 41% QoQ to Rs 1bn due to a lower NII (-6% QoQ) and elevated provisions. Slippages were flat at Rs 33bn while the GNPA ratio inched up 100bps QoQ to 11.7%. During Q3, the bank refinanced accounts worth Rs 1.2bn under 5:25 and restructured loans worth Rs 6.6bn under SDR. Loan growth was weak at 3.5% while

24/02/2017 3:46:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tata Chemicals Ltd For Target Rs.652.00 - Emkay

Margin improvement across all segments drives Q3 PAT

*Tata Chemical reported in line revenues (after including discontinued operations pertaining to urea) at Rs 40.4bn (-12% yoy). Consolidated revenues from continued operations stood at Rs34.6bn (-12% yoy)

* Lower input prices and better sales mix drove fertiliser profitability as fertiliser

24/02/2017 3:40:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy GlaxoSmithKline Consumer Ltd For Target Rs. 5,916.00 - Reliance Sec

GlaxoSmithKline Consumer Healthcare (GSK Consumer) has delivered a weak performance in 3QFY17. Its net sales fell by 11.7% to Rs8.2bn, while net profit decreased 8.3% YoY to Rs1.4bn. Marred by demonetization and weak consumer demand environment, its volumes in the core HFD segment fell by 17% in the quarter. Trimming down our earnings estimate by 7% for FY18E in the wake of poor quarterly perfo

24/02/2017 3:26:49 PM | Posted in Broking Firm Views - Long Term Report read full news