Buy NIIT Technologies Ltd For Target Rs. 485.00 - Reliance Sec

Background & Business

NIIT Technologies (NIIT Tech) is a global IT solutions firm servicing clients in Travel & Transportation, Banking & Financial Services, Insurance, Manufacturing and Media verticals across Americas, Europe, Asia and Australia. It has been assessed at leading global quality benchmarks and standards including the ISO 900

24/02/2017 9:47:05 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Gujarat State Petronet Ltd For Target Rs.163.00 - Motilal Oswal Securities Ltd

In-line results; Volumes and tariff increase

Reported revenue rose 6% YoY (+2% QoQ) to INR2.6b (est. of INR2.5b), primarily led by higher volumes. Despite the revenue beat, EBITDA of INR2.2b (+7% YoY, flat QoQ) was in line due to higher employee expenses (INR144m v/s est. of INR96m; +27% YoY, +82% QoQ) and opex (INR185m v/s est. of INR156m; +53% YoY, +58% Qo

24/02/2017 9:35:17 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ahluwalia Contracts Ltd For Target Rs.310 - Karvy

Fairly Valued; Maintain Hold

Ahluwalia’s Q3FY17 performance was broadly in-line with our expectations. Revenue increased by 12% YoY to Rs 3.6bn (vs. our estimate of Rs 3.5bn) driven by pick-up in execution. EBITDA margin remained flattish YoY at 13.2% while EBITDA increased 19% YoY to Rs 472 mn. PAT increased by 12% YoY to Rs 244 mn (vs. estimate of Rs

24/02/2017 9:31:47 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Firstsource Solutions Ltd for Target Rs. 43.00 - Sharekhan

Key points

Weak performance:

Firstsource Solutions’ (FSL) Q3FY2017 revenue grew by 2.1% QoQ on constant currency (CC) basis. However, on a reported basis, total revenue remained flat at Rs885.4 crore on a sequential basis (QoQ). The Operating Profit Margin (OPM) contracted by 63BPS QoQ to 12.1%, below our expectation, owing

24/02/2017 9:27:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dalmia Bharat Ltd For Target Rs.2,246.00 - Motilal Oswal

Strong performance by subsidiary OCL drives profitability

* Strong volume growth:

Cement volumes grew 20% YoY to 3.56mt (est. of 3.43mt), led by ramp-up of new capacity in Belgaum and strong volume growth in south due to increased construction activity in AP/Telangana. Realizations declined 3% YoY to INR 4845

23/02/2017 3:40:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Shemaroo Entertainment Ltd For Target Rs.400.00 - Religare Sec

Mixed Q3 as both new and traditional media slow down

* SHEM’s Q3FY17 revenues came in at Rs 1.13bn, up 12% YoY vs. 16% YoY in the year-ago quarter. The slower growth this quarter was led by a drop in the revenue momentum of traditional media.

* New media segment grew by 41% YoY and traditional media by a much slower 6% YoY. Growth in ne

23/02/2017 3:29:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Radico Khaitan Ltd For Target Rs.147.00 - Angel

Performance Highlights

Radico Khaitan’s (RKL) results for 3QFY2017 were below our estimates both on top-line as well as bottom-line fronts. The company’s top-line grew by ~4% yoy to `415cr owing to the impact of demonetization, which led to a decline in consumer spending. Moreover, lower sales volume and subdued operating performance led to

23/02/2017 3:22:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shoppers Stop Ltd For Target Rs.380.00 - Emkay

Results outperform estimates; Maintain BUY

* Results above estimates – SSG at 6.4% yoy; Revenue at Rs 10bn, up 13% yoy; EBITDA margin at 6.8%, down 70bps yoy due to weaker mix and higher other expenses. APAT at Rs 190mn, down 15% yoy.

* Like-to-like volumes up 4.2% yoy. Higher mix of non-apparel portfolio led by demand traction in watch

23/02/2017 3:13:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors Ltd For Target Rs.535.00 - Karvy

Disappointing Performance…but JLR’s New
Products and Favorable Currency to Benefit in FY19

Tata Motors (TTMT) delivered disappointing Q3FY17 performance with deterioration across all the parameters in both the business, primarily due to forex loss on its hedging contracts. Its consolidated Revenues/EBIDTA declined by 4.3%/41.7% YoY

23/02/2017 3:03:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shree Pushkar Chemicals & Fertilisers Ltd For Target Rs.251.00 - SPA Sec

Shree Pushkar Chemicals & Fertilisers (SPCF) is an established player in the manufacturing of Dye Intermediates. Company owns a completely integrated manufacturing facility located at Lote Parshuram, Maharashtra. Company is now forward integrating to reactive dyes (primarily used in textiles) with capacity of 6000 MTPA and has a waste to wealth mechanism which helps in effluent management.

23/02/2017 2:55:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hindustan Zinc Ltd For Target Rs.360.00 - Prabhudas Lilladher

Earnings in line; the best play on structural deficit in Zn

Hindustan Zinc (HZ) reported Q3FY17 earnings in‐line‐with our expectation on the back of lower costs. In line with our expectation, Zinc prices turned out to be the best perfomer in Base metals pack with a rise of ~25% YoY (FYTD) to US$2300. We factor in an increase of 15% in FY18 LME zinc

23/02/2017 2:44:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra & Mahindra Ltd For Target Rs.1,454.00 - LKP

Tractors cycle’s upward trajectory and subsidiaries value to drive performance

FES segment saves the day

M&M’s standalone Q3FY17 revenues came in at 109 bn, de-growing at 0.4% yoy and growing by 4.3% sequentially. Automotive volumes in the quarter declined by 7.7% yoy and 4.2% qoq on DeMon blue

23/02/2017 2:26:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy TD Power Systems Ltd For Target Rs.214.00 - Emkay

Lower deliveries weigh on performance

* TD Power Systems (TDPS) reported weaker than expected operational performance. Revenues declined by 43% YoY; Manufacturing and Project segments declined by 40% YoY and 8% YoY respectively. The company posted losses at EBIDTA and PAT level.

* Order inflow (Manufacturing segment) declined by 36% YoY to Rs

23/02/2017 12:49:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy CRISIL Ltd For Target Rs.2,540.00 - Religare Sec

A 'well-rated' business model

CRISIL Ltd is India's leading credit rating, research, risk & policy advisory company having pioneered the concept of credit rating in India in 1987. S&P, the world's leading credit rating agency by market share, is its major shareholder (67%).

 

Investment ra

23/02/2017 12:37:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold PVR Ltd For Target Rs.1,293.00 - Emkay

Limited upside, downgrade to HOLD

* PVR reported muted operating performance, which was in-line with estimates. Ticket sale were largely impacted by weak content performance while advertisement and F&B revenues were impacted by demonetization

* Like-to-like yoy comparison is restricted as DT Cinema consolidation is reflected from Jun&rsqu

23/02/2017 12:20:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy State Bank of India Ltd For Target Rs.326.00 - Reliance Sec

Operating Performance Improves; Maintain BUY

State Bank of India (SBI) has delivered an improved performance in 3QFY17 with its operating profit growing by 30.7% YoY (+11.8% QoQ) to Rs125.4bn. While fresh slippages declined to Rs103.6bn from Rs118.5bn in 2QFY17 and Rs206.9bn in 3QFY16, PCR rose to 62.9% from 62.1% in 2QFY17 and 60.7% in 4QFY16. Operati

23/02/2017 12:10:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zydus Wellness Ltd For Target Rs.960.00 - Sharekhan

Key points

* Revenue flat but higher RM costs lead to lower PAT:

During Q3FY2017, Zydus Wellness’ revenue came in flat YoY at Rs102.6 crore on the back of a subdued performance of all its key brands such as Sugarfree, Nutralite and Everyuth due to the government’s demonetisation move. The consolida

23/02/2017 12:01:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Jammu and Kashmir Bank Ltd For Target Rs.75.00 - Motilal Oswal

Higher provisions dent profitability; PCR improves sharply QoQ

* JKBK reported net loss of INR5b v/s loss of INR6b in 2QFY17, led by elevated NPL provisioning of INR5.7b (annualized credit cost of 4.9%). While slippages were contained (annualized slippage ratio of 1.6% v/s average of 11.7% in preceding three quarters), ageing of the NPL portfolio led t

23/02/2017 11:52:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Sun Pharmaceuticals Industries For Target Rs.697.00 - Karvy

Muted revenue growth impact results

Net Revenues for the quarter grew by 11% YoY to Rs 79126 mn and was below our expectation of Rs 86532 mn. EBDITA Margins for the quarter moved up from 31 % to 31.9 % YoY (Q2 FY17 company received milestone payment of USD 45 mn from Alimrali), in line with our expectation of 31.9%. Profits for the quarter were lower b

23/02/2017 11:45:16 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kewal Kiran Clothing Ltd For Target Rs.1,725.00 - Sharekhan

Key points

* Demonetisation affects operating performance – revenue flat;

OPM falls due to higher operating cost: For Q3FY2017, Kewal Kiran Clothing’s (KKCL) overall revenue was marginally up by 2.4% at Rs98.5 crore due to demonetisation, which affected the overall consumer discretionary spends dur

22/02/2017 3:53:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold NCC Ltd For Target Rs.93.00 - Karvy

Weaker execution impacts revenues

NCC’s Q3FY17 Adjusted PAT of Rs 661 mn was better than our estimate of Rs 460 mn, mainly on account of higher than expected other income and lower effective tax rate. Revenues of Rs 19.04 bn declined ~7% YoY (lower than our estimate of Rs 19.95bn) due to slowdown in execution marred by de-monetization. EBITDA of

22/02/2017 3:42:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Hexaware Technologies Ltd For Target Rs.220.00 - Motilal Oswal

Strong revenue growth overshadowed by guidance

* Strong growth in a seasonally weak quarter

4QCY16 revenue growth of 3.4% QoQ CC beat our estimate of +1%. Traction in underlying business was strong with volumes growth of 8.4% QoQ, but seasonality pulled it down by 390bp. Although 4Q was also marred by seasonal

22/02/2017 3:33:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NTPC Ltd For Target Rs.178.00 - Reliance Sec

Improving Performance on Operational Metrics

NTPC has delivered an improved performance on key operational metrics in 3QFY17 with EBITDA and pre-tax profit rising by 9.3% YoY and 9.8% YoY, respectively. Net sales surged by 10.9% YoY owing to higher realisation and ~8% growth in regulated equity led by commissioning of new capacity. In line with our exp

22/02/2017 3:24:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kolte-Patil Developers Ltd For Target Rs.182.00 - Emkay

Result highlights

*Higher than expected revenue recognition from Wakad, Pune project led to Kolte-Patil Developers (KPDL) reporting revenue and earnings well ahead of estimates.

* As expected, new sales bookings declined 44% QoQ to 0.32msf (worth Rs1.95bn). However, collections remained strong at Rs247mn (up 6% QoQ).

* While demonet

22/02/2017 3:18:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dhanuka Agritech Ltd For Target Rs.890.00 - RCML

Superior margins spur profitability, outlook positive

DAGRI’s Q3FY17 revenue grew 1.5% YoY to Rs 2.1bn (RCMLe Rs 2.2bn) as volume growth spiraled down to 3.5% YoY (9MFY17: +12-13%) due to demonetisation. However, EBITDA and PAT grew 18% YoY each on lower RM costs and a better product mix. DAGRI has guided to FY18 revenue growth of 15% YoY subject

22/02/2017 3:07:13 PM | Posted in Broking Firm Views - Long Term Report read full news