Neutral On Tata Consultancy Services Ltd For Target Rs.2,400.00 - Motilal Oswal

Margin aspirations face a stern test

 Mirrors opportunities and concerns similar to INFO: Retail and BFSI dragged TCS’ 4QFY17 CC revenue growth to 1% QoQ (est. of +2%). Like INFO, TCS demonstrated strength in Communications, cited concerns in Retail and optimism in BFSI through the course of the year. We now model 8.2% CC revenue growth for

22/04/2017 12:27:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold ACC Ltd For Target Rs.1,560.00 - Emkay

Lower costs led to beat at operating level, maintain HOLD

* ACC reported EBITDA of Rs3.4bn against our estimate of Rs3.1bn supported by lower opex/tn and impact of Ind-AS. EBITDA/tn of Cement was at Rs476 against our estimate of Rs429. Sales volume growth at 3.8% YoY was a positive surprise

* Sales volume was at 6.6mt against our estimate of

22/04/2017 12:16:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coal India Ltd For Target Rs.335.00 - Motilal Oswal

COAL’s dispatch growth to accelerate despite substitution by RE

* Apparent coal demand growth has disappointed with a decline of 2.4% in FY17 due to destocking, efficiency gains, substitution (pet coke) and pick-up in renewable power generation. However, real consumption growth remains robust (e.g., 5% growth in the power sector).

* We

22/04/2017 12:07:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ITD Cementation Ltd For Target Rs.203.00 - Emkay

Building a strong moat

Key highlights from CY16 Annual Report

* ITD Cementation India (ITCE) delivered a stable performance in CY16 with flat YoY revenue while EBITDA margin expanded by 60bps YoY to 6.8% and adjusted for cost overruns, ITCE’s EBITDA margin was 8.6%.

* Net debt reduced further t

22/04/2017 11:48:13 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On DCB Bank Ltd For Target Rs.158.00 - Motilal Oswal

* Loan growth (22% YoY) and deposit growth (28% YoY) are expected to be significantly above industry average. We expect NII to grow 24% YoY, led by strong loan growth, although margins are expected to contract ~10bp QoQ/YoY owing to pressure on yields.

* Non-interest income is expected to grow by ~22% YoY, led by healthy fee income and trading gains.

* Overall, we expect rev

22/04/2017 11:34:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Yes Bank Ltd For Target Rs.1,483.00 - Reliance Sec

Assets Quality Risks Persist; Reiterate HOLD

YES Bank has negatively surprised on both assets quality and bottom line front in 4QFY17 led by NPA recognition of few large corporate accounts in conformity with the divergences observed by the RBI. The Bank’s fresh slippages stood at Rs19bn in 4QFY17 compared to Rs1.3bn in 3QFY17 and Rs3.3bn in 4QFY1

22/04/2017 11:25:11 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Infosys Ltd For Target Rs.1,250.00 - Motilal Oswal

* In 3Q, INFO narrowed its guidance band to 8.4-8.8% YoY CC, implying 4Q revenue growth of 0.3-1.8% QoQ (mid-point of 0.1%).

* In CC terms, our revenue growth estimate is 1% QoQ on the back of improvement in top clients after the sharp fall seen in 3Q and the RBS ramp-down being behind. Cross-currency tailwinds of 50bp would result in USD revenue growth of 1.5%.

* Given the

22/04/2017 11:18:10 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Hindustan Zinc Ltd For Target Rs.293.00 - Emkay

Strong performance as expected!

* Revenue came in at Rs67.6 bn (+116%/+26% YoY/QoQ) driven by higher LME and volume. LME for Zinc stood at US$ 2773(+65%/+10% YoY/QoQ) & Lead at US$ 2269 (+30%/+6% YoY/QoQ) whereas volume surged by 37% and 15% YoY respectively for zinc and lead

* EBITDA stood at Rs 37.5 bn (+187%/+35% YoY/QoQ) due to operat

22/04/2017 11:08:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Jyothy Laboratories Ltd - Sharekhan

Key points

Stock surges by 16% in recent times; positives priced in:

Jyothy Laboratories’ (JLL) stock price has seen a strong run-up of ~16% in the last 15 days in the wake of Henkel AG (Henkel) getting more time to exercise its option of acquiring upto 26% stake in the company. Henkel has got an extensi

21/04/2017 3:52:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Larsen & Toubro Ltd For Target Rs.1,750.00 - Motilal Oswal

* LT announced order intake of INR278b in 4QFY17 compared to INR297b in 4QFY16. Order inflow during the quarter has been supported by large order finalization (>INR15b).

* Large orders worth INR210b were finalized during the quarter, of which domestic orders were INR105b and the balance were from overseas. Domestic order wins are supported by order finalization in the hydrocarbon a

21/04/2017 3:44:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apollo Tyres Ltd For Target Rs.270.00 - Sharekhan

Key points

Commissioning of Hungary plant and receding threat from Chinese imports to boost topline:

Apollo Tyres (ATL) recently commenced operations at a greenfield facility in Hungary (Eastern Europe). The plant is already certified by leading OEMs for supplies and ATL can serve the OEMs through this new pla

21/04/2017 3:38:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Havells India Ltd For Target Rs.425.00 - Motilal Oswal

* During the quarter, Havells acquired the consumer durables segment of Lloyd Electric and Engineering Limited for an enterprise value of INR16b on a debt-free, cash-free basis. Lloyd’s consumer durables arm has an annual turnover of INR12.4b.

* Standalone revenue is expected to register growth of 8% YoY. We expect the cables segment, which contributes 41% of the company’s

21/04/2017 3:28:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,716.00 - Reliance Sec

Operating Performance Remains Healthy; Reiterate BUY

IndusInd Bank (IIB) has delivered a healthy performance on operating front in 4QFY17. Its operating profit grew by 36.6% YoY and 15.3% QoQto Rs15.7bn led by robust growth in balance sheet and healthy improvement in NII and fee-based income. Its NII grew by strong 31.5% YoY & 5.6% QoQ to Rs16.8bn.

21/04/2017 3:20:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Cummins India Ltd For Target Rs.990.00 - Motilal Oswal

* We expect revenue to grow 19% YoY, supported by growth in the industrial (23%) and automotive (12%) segments. Industrial segment growth would be driven by a pick-up in infrastructure (roads and metros) and data center segments.

* Pick-up in the domestic demand environment and various pricing actions taken by KKC would help it to regain lost market share post CPCB-2 compliance.

21/04/2017 3:09:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cyient Ltd For Target Rs.565.00 - Reliance Sec

Commendable Show on All Counts; FY18 Looks Encouraging

Cyient has delivered a strong show in 4QFY17 - on expected lines - with its USD revenue growing by a healthy 3.8% QoQ (3.6% in CC terms) to US$141mn. A healthy 3.3% sequential growth in Core Services business is a positive factor, in our view. While the DNO business grew by a good pace of 3% QoQ, t

21/04/2017 3:08:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On IndusInd Bank Ltd - Sharekhan

Key points

* Operational performance continues to be robust:

IndusInd Bank (IIB) has posted mixed results for Q4FY2017. While on the one hand, the bank has registered strong operational performance in terms of growth in Net Interest Income (NII) and Pre-Provisioning Operating Profit (PPOP), on the other hand,

20/04/2017 3:51:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Electronics Ltd For Target Rs.180.00 - Motilal Oswal

* Bharat Electronics (BHE) has received an offset contract from Elbit Systems for supply of 10 units of CoMPASS systems for use in the light combat helicopters being manufactured by HAL.

* BHE has launched a remote-controlled weapon system for MBT Arjun MK II, a weapon control system for 12.7mm gun of MBT Arjun MK II battle tank.

* BHE registered provisional revenue of INR88

20/04/2017 3:45:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Yes Bank Ltd For Target Rs.1,780.00 - Sharekhan

Key points

Sturdy operational performance continues to impress:

Yes Bank posted mixed set of numbers for Q4FY2017, with its operating performance largely in line with expectations, but the near doubling of GNPA sequentially (QoQ) marred the otherwise stellar performance. The bank has reported a Net Interest I

20/04/2017 3:41:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On ABB Ltd For Target Rs.1,190.00 - Motilal Oswal

* ABB has received an order of INR43.5b from PGCIL to set up a transmission link between Raigarh and Pugular with 800KV HVDC systems.

* ABB continues to focus on increased localization and cost optimization. Its direct RM costs have declined to 64.5% of revenue from a peak of 81% in 4QCY10, well below its internal target of 65%. This has aided margins, despite negative operating lever

20/04/2017 3:31:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Vinati Organics Ltd For Target Rs.828.00 - GEPL

Company Snapshot

Vinati organics ltd. (VOL) Established in 1989, Vinati Organics Limited (VOL) is a specialty chemical company, focusing on manufacturing specialty chemicals and organic intermediaries. VOL have two plants, both situated in Maharashtra at Mahad (Raigad) and Lote Parashuram (Ratnagiri), both the plants are ISO 9001: 2008, ISO 14001: 2004

20/04/2017 3:24:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors Ltd For Target Rs.609.00 - Sharekhan

* We expect JLR’s (incl JV) volume to be ~6% YoY (+13% QoQ) led by phasing out of Discovery volume. Net realization should increase by ~14% YoY (flat QoQ) led by ramp up of F-Pace and increase in share of China. EBITDA margin would decline 550bp YoY (+140bp QoQ) to 10.7% led by GBP650m of forex hedge loss estimated for the quarter along with phasing out cost of Discovery. Adjusted PAT lik

20/04/2017 3:16:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Industries Ltd For Target Rs.1,517.00 - Emkay

Performance reliant on JIO

* Petchem EBIDTA is expected to grow by a CAGR of 13% to Rs220bn during FY17-19 driven by capacity addition and margin expansion. Also, GRM should remain robust at $10.9/12.8bbl in FY18/19. With the phase of mega capex drawing to an end in FY17, FCF generation is expected to be positive from FY18 onwards.

* The comp

20/04/2017 3:11:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki Ltd For Target Rs.7,299.00 - Motilal Oswal

* Volume grew by ~15% YoY (+7% QoQ) in 4QFY17 to ~414,439 units, led by continuous better performance from Baleno and Brezza, with ongoing high waiting period.

* Net realization is likely to improve 6% YoY (+3.3% QoQ) to INR449,769 per unit, boosting net revenue by ~22% YoY (+10.5% QoQ) to INR186.4b. Growth in realization is likely to be driven by improvement in product mix due to com

20/04/2017 3:01:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Voltas Ltd For Target Rs.374.00 - Motilal Oswal

* Unitary cooling division (UCP) is likely to report revenue growth of 8% YoY, given primary channel filling, driven by a strong summer and LG vacating the fixed-speed air conditioning segment.

* We expect revenue growth of 6% YoY in the MEP segment, led by high base effect (37% YoY growth in 4QFY16). However, the key monitorable would be sustainability of margins in the segment. VOLT

19/04/2017 1:10:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Natco Pharma Ltd - Sharekhan

Key points

* Delivers strong 91.3% return since initiation nine months ago; downgrade to Neutral on expensive valuation:

We had initiated coverage on Natco Pharma (Natco) through a viewpoint report dated June 8, 2016 on expectation of an exponential growth on the back of a strong product pipeline. In line wi

19/04/2017 1:06:39 PM | Posted in Broking Firm Views - Long Term Report read full news