Update On Bodal Chemicals Ltd - SPA Sec

Bodal Chemicals (BCL) is a leading manufacturer of dyes Intermediates/dyestuff and has diversified into speciality chemicals. Company's products are used in diverse industries such as Textile, Paper, Plastic, Leather etc. Stricter environmental norms and increased costs substantially eradicated low cost advantage of Chinese dye manufacturers. BCL with presence across dyestuff value chain an

1/05/2017 10:43:04 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kewal Kiran Clothing Ltd For Target Rs.2,250.00 - Sharekhan

Key points

* Operating performance stable in a weak environment; higher other income leads to strong growth in PAT:

For Q4FY2017, Kewal Kiran Clothing’s (KKCL) overall revenue was marginally up by 2.9% to Rs130.3 crore, driven by a 7.7% YoY rise in realisation per unit, which resulted in a value growth o

1/05/2017 10:25:24 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Indian Bank Ltd For Target Rs.341.00 - Reliance Sec

Impressive Performance; Reiterate BUY

Indian Bank has delivered a healthy operating performance in 4QFY17. Its operating profit surged by 29.3% YoY and 4.8% QoQ to Rs10.7bn led by strong growth in NII (22.1% YoY & 11.1% QoQ to Rs13.9bn) and relatively lower (7.6% YoY and 9.1% QoQ) opex at Rs9bn. However, provisioning expense increased by 49.3% QoQ

1/05/2017 10:15:50 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cyient Ltd For Target Rs.600.00 - Motilal Oswal

* We expect CYL’s USD revenue to grow 3.3% QoQ in 4QFY17 (+2.7% QoQ in CC).

* In the core services business, CYL’s revenue is expected to increase by 1.9% QoQ. Revenue growth is expected to pick up post the seasonal weakness witnessed in the previous quarter.

* We expect USD17m in revenue in Rangsons, which would imply annual revenue of USD55m; +42% YoY, short of

1/05/2017 9:55:31 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ultratech Cement Ltd For Target Rs.3,639.00 - Emkay

Sales volume stagnant; valuations stretched

* UltraTech (UTCEM)’s Q4FY17 operating performance was lower than estimates with EBITDA at Rs11.8bn (adjusted for other operating income) against our estimate of Rs12.7bn. EBITDA/tn was at Rs872 against our estimate of Rs933.

* Domestic sales volume was flat YoY at 13.35mt. Grey cement realiza

1/05/2017 9:42:52 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Nestle India Ltd For Target Rs.6,665.00 - Motilal Oswal

Non-Maggi volumes continue to be tepid

Increasing cash and cash equivalents restricting RoCE improvement

* Key takeaways from Nestle India's (NEST) CY16 annual report:

* Continued poor volumes in non-Maggi portfolio n Blended realization growth lower than earlier years

* A&P to sale

29/04/2017 11:43:58 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy LIC Housing Finance Ltd For Target Rs.780.00 - Sharekhan

Key points

* Strong operating performance; Ninth consecutive quarter of 20%+ growth in NII:

LIC Housing Finance (LICHF) has posted better-than-expected results for Q4FY2017 with a strong net profit growth of 18.1% YoY to Rs529.2 crore, driven by a healthy 30.6% YoY growth in the Net Interest Income (NII) and c

29/04/2017 11:36:10 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hexaware Technologies Ltd For Target Rs.240.00 - Emkay

Strong performance in line with thesis

* Hexaware reported a strong revenue performance in Mar’17 quarter with a 4.1% QoQ US$ revenue growth ( best sequential growth in Q1 since 2012), significantly ahead of Street/Emkay estimates

* EBIT margins came in at 15.3%, down by 50 bps QoQ albeit still better than estimates. Robust headcount ad

29/04/2017 11:30:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Yes Bank Ltd For Target Rs.2,110.00 - Motilal Oswal

Inline; Asset quality impacted by one off large account

* Yes Bank’s (YES) NII grew 32% YoY (+10% QoQ) to INR16.4b, helped by 20bp YoY NIM improvement (to 3.6%) and customer assets growth of 36% YoY (+15% QoQ). Strong NII and beat on other income (27% beat; +57% YoY) drove PPoP outperformance (+38% YoY; 14% beat). However, significantly higher pr

29/04/2017 11:24:46 AM | Posted in Broking Firm Views - Long Term Report read full news
Update On Unichem Laboratories Ltd - Sharekhan

Key points

* The event - Doctors directed to prescribe generics compulsorily:

According to media reports, the government is considering drafting a legislation, making it mandatory for the doctors to prescribe generic drugs as against branded drugs (as is being done now). A circular in this regard is already b

29/04/2017 11:19:28 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy CRISIL Ltd For Target Rs.2,540.00 - Religare Sec

Steady Q1 notwithstanding a 'forex' blip…

CRISIL's 11.9% YoY Revenue growth in Q1CY17 was driven by pick-up in the research business while Operating margins came in largely in-line at 30.3%. However, adverse forex impact of Rs 11.9 cr led to flattish profit growth of Rs 73.3 cr. Though sluggish credit offtake and diminished prospects

29/04/2017 11:10:58 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Industries Ltd For Target Rs.1,517.00 - Emkay

Broadly in-line; Maintain Buy

* Results beat marginally our estimates with EBITDA at Rs113bn (against our estimates of Rs111bn) due to higher than expected GRM. Also PAT came in at Rs81.5bn vs our estimate of Rs79.5bn. Due to forex gain interest expenses came down qoq. While tax out go was lower due to benefit of IndAS implementation which is expected

29/04/2017 10:59:51 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,700.00 - Motilal Oswal

One-off provision mars strong operating performance

* IndusInd Bank’s (IIB) 4QFY17 PAT grew 21% YoY (in-line) to INR7.5b. Provisions were elevated at INR4.3b as they included one-off amount of INR1.22b on a bridge loan for a cement M&A transaction (account remains standard), where the receivable is in June (likely to get reversed in 1QFY18).

29/04/2017 10:46:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat Gas Company Ltd For Target Rs.735.00 - Motilal Oswal

Abundant opportunity in long term, but short-medium term concerns to
continue

* The long-term opportunity for GUJGA is sizable, given just 18% penetration in the
PNG-domestic segment and 30% penetration in the CNG segment, coupled with
possible regulatory push.
* Combined pre-merger peak sales were 8-9mmscmd. Morbi, the largest

28/04/2017 4:17:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HDFC Bank Ltd For Target Rs.1,750.00 - Sharekhan

Key points

* Solid performance in a challenging period: During Q4FY2017, HDFC Bank (HDFCBK) registered a strong performance (ahead of our as well as street expectation), with the Net Interest Income (NII) growing by 21.5% YoY to Rs9,055 crore on the back of asset growth of ~19% YoY and a core Net Interest Margin (NIM) of 4.3% vs 4.1% QoQ (4.2% YoY). N

28/04/2017 3:51:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold UltraTech Cement Ltd For Target Rs.4,542.00 - Karvy

Volumes remain muted…

UltraTech’s Q4FY17 operational performance was broadly in-line with our estimates with revenues/EBITDA came at Rs 65.9bn/12.8bn against our estimates of Rs 64.7.3bn/12.5bn. Blended cement sales volume remained flattish YoY while realisation declined 2% QoQ. EBITDA/ton declined 8% YoY to Rs 908/t (in-line with estimate

28/04/2017 3:46:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sun TV Network Ltd For Target Rs.1,051.00 - Emkay

SUN is shining- Now with clarity on digitization in TN

* Recently, the Ministry of Information & Broadcasting finally issued a provisional digital addressable system (DAS) license to Tamil Nadu (TN) government-owned ARASU Cable TV Corporation but with the condition to complete digitation in three months

* This announcement paves the way f

28/04/2017 3:38:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Yes Bank Ltd For Target Rs.2,110.00 - Motilal Oswal

* We expect loan growth to be significantly ahead of system average at 25% YoY (nearly 5x industry growth rate) on the back of refinancing opportunities and strong growth in retail banking.

* We expect NIM to remain largely stable with falling yields negated by lower cost of funds on account of CASA inflows post demonetization and re-pricing of bulk deposits. Consequently, NII growth

27/04/2017 3:48:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Industries Ltd For Target Rs.1,550 - Sharekhan

Key points

* Higher than expected GRM leads to beat in operating profit: Reliance Industries (RIL) reported better-than-expected Q4FY2017 operating profit of Rs11,280 crore compared to our estimate of Rs10,711 crore, primarily on the account of a strong beat in GRM at $11.5/bbl (vs our expectation of $10.5/bbl) while the Petrochemicals EBIT margin at

27/04/2017 3:41:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,685.00 - Motilal Oswal

* We expect strong loan growth of ~24% in 4QFY17 – significantly ahead of system loan growth. Deposit growth would be strong at 32% YoY, aided by demonetization in 3Q. Continued market share gains in VF would remain a key factor to monitor.

* NIM is likely to decline marginally (by 5bp QoQ), but would remain at 3.8-3.9%. The quantum of CASA retained would be a key factor.

27/04/2017 3:29:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Hexaware Technologies Ltd For Target Rs.245.00 - Reliance Sec

Revenue Growth Enthuses; Guidance Reiterated

Hexaware Technologies (Hexaware) recorded a strong performance in 1QCY17 led by focus on niche sub-verticals like Travel and Capital Markets. USD revenue grew 4.2% QoQ in 1QCY17 (4% in CC terms) to $144.7mn (3.1% above estimate) mainly on strong volume growth of 3.8% QoQ. Vertical-wise, strong growth was rec

27/04/2017 3:17:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell ACC Cement Ltd For Target Rs.1,552 - Karvy

Lower costs led better than expected margins

ACC’s Q1CY17 operational performance better than our & consensus estimates, led by higher than expected volumes and lower than expected fixed costs. EBITDA of Rs 3.42 bn (-9% YoY) was 18% higher than our estimate of Rs 2.88 bn. Volume growth of 4% YoY was better than expectations. EBITDA/t stood a

25/04/2017 4:30:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Gruh Finance Ltd For Target Rs.421.00 - Motilal Oswal

Impressive all-round performance

* Gruh Finance (GRHF) reported PAT of INR1,104m (6% above our estimate) for 4QFY17, driven by strong loan growth, controlled operating expenses and lower provisioning charge.

* Loan growth for the quarter was a robust 19% YoY, marginally ahead of our expectation, driven by growth of 19% in housing loans and 37

25/04/2017 4:23:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Ltd For Target Rs.305.00 - Emkay

INVIT listing a positive trigger

Key INVIT listing highlights

* IRB’s upcoming INVIT listing for 6 projects priced at an EV of Rs58-59bn (1x implied P/B) will lead to net debt reduction of Rs47.4bn (includes Rs33bn of SPV level debt and Rs14bn of subordinated debt given by IRB to these SPVs).

25/04/2017 4:17:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Indraprastha Gas Ltd For Target Rs.1,023.00 - Motilal Oswal

Moving in the right direction, but fairly valued

We recently met management of Indraprastha Gas (IGL). Key takeaways:

CNG segment to see 8-10% growth

* At peak, Delhi Transport Corporation (DTC) had a fleet of 5,500 buses. However, due to the phasing out of older buses and the inability to add newer

25/04/2017 4:06:29 PM | Posted in Broking Firm Views - Long Term Report read full news