Buy KNR Constructions Ltd ForTarget Rs.830.00 - Reliance sec

Aided by a healthy order inflow over last 12-months with execution ramp-up from new projects, KNR Constructions (KNRC) has reported a better-than-expected revenue booking in 2QFY17 with its revenue surging by ~71% yoy to Rs3.63bn way ahead our estimate. Though its EBITDA rose by strong 31% yoy to Rs457mn, EBITDA margin contracted 385bps yoy to 12.6% mainly owing to low-margin component works. K

25/11/2016 2:40:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Wonderla Holidays Ltd For Target Rs.395.00 - Sharekhan

Key points

* H2FY2017 footfalls face danger from demonitisation drive:

Demonitisation of Rs500, Rs1,000 currency notes would have a larger impact on the discretionary consumer spends (including Restaurants and Amusement Park businesses). Being a seasonally strong quarter for Wonderla Holidays (WHL), Q3FY2017

25/11/2016 2:36:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HSIL Ltd For Target Rs.390.00 - Emkay

Traction in core business reassuring; Retain BUY

* Healthy quarter – Revenues up 15.2% yoy at Rs4.7bn, EBITDA grew 7.5% yoy to Rs814mn and APAT grew 8.4% yoy to Rs315mn

* Building products grew by 17.5% led by strong growth across segments. Sanitaryware and Faucets grew in double digits while consumer appliances continues to see strong

25/11/2016 2:29:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Garware Wall Ropes Ltd For Target Rs.686.00 - Religare Sec

* Revenue growth improves:

After two straight quarters of de-growth, Garware Wall Ropes (GWRL's) revenues grew by 8.4% YoY to Rs 233cr in Q2FY17. The growth was driven by good performance from domestic fisheries and aquaculture business. New product launches, especially the value-added products, have been the primary growth drivers across the busi

24/11/2016 11:53:50 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sanghi Industries Ltd For Target Rs.105.00 - Emkay

Strong operating performance, maintain BUY

 Sanghi industries (SNGI) reported strong numbers with EBITDA at Rs469mn, up 84% yoy and EBITDA/tn at Rs829, up 68% yoy led by 23.4% yoy decline in opex/tn. OPM was up 11pp yoy to 22.7%

 Cement sales volume was up 9.5% yoy to 0.57mt. However, pressure on cement prices in Gujarat markets led to

24/11/2016 11:47:59 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Nestle India Ltd For Target Rs.5,850.00 - RCML

Moving briskly ahead but valuations rich

NEST’s Q3CY16 total sales/EBITDA/adj. PAT grew 36%/58%/74% YoY, with EBITDA margins expanding 290bps to 20.9%. While ramp-ups to recoup lost sales and market share continue, we await sustained aggression on product launches and signs of resilience against competitors across categories before turning positi

24/11/2016 11:42:59 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Kalpataru Power Transmissions Ltd For Target Rs.268.00 - Prabhudas

* Strong execution:

Kalpataru Power Transmission (KPTL) reported sales of Rs11.1bn, up 19.6% YoY (PLe: Rs10bn). Sales for T&D segment was up 20% to ~Rs10bn, while sales for Infrastructure segment was up 33% YoY to Rs1.3bn. EBITDA improved 6.2% YoY to Rs1.2bn (PLe: Rs1.1bn), while EBITDA margin came in at 10.9%, down 138bps YoY (PLe: 10.8%) on accou

24/11/2016 11:35:34 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Hindalco Industries Ltd For Target Rs.128.00 - Reliance sec

Hindalco’s standalone EBITDA surged by 88% yoy (+2% qoq) to Rs11.6bn in 2QFY17, largely in-line with our estimate of Rs11bn. Aided by higher sales volume, the revenue from Aluminium segment grew by 10% yoy (+16% qoq), while the segmental EBITDA margins increased by 1,023bps yoy (down 475bps qoq) to 16.4%. Notably, the segmental margins were at a multi-year high in 1QFY17 largely due to st

24/11/2016 11:22:33 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Thomas Cook (India) Ltd For Target Rs.229.00 - Sharekhan

Key points

* Demonitisation to impact bookings for summer holidays:

The top management of Thomas Cook India (TCI) has indicated that the government’s demonitisation drive will have near-term impact on the performance of its Travel & Tourism business. The bookings for summer holidays 2017 (Q1FY2018)

24/11/2016 11:15:36 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Chennai Petroleum Corporation Ltd For Target Rs.235.00 - Kotak sec

CPCL Q2FY17 result is lower than our expectation. Despite 11% qoq increase in crude throughput, CPCL's Q2FY17 PAT has decreased 79% qoq (base effect) to Rs.980 mn reflecting weak GRMs and higher raw material cost. In Q2FY17, CPCL reported a throughput of 2.93 mmt, higher 11% qoq and 44% yoy, resulting in 97% capacity utilization. CPCL's estimated GRM is lower at US$ 3.4/bbl for Q2FY17 a

24/11/2016 11:07:20 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Apar Industries Ltd For Target Rs.627.00 - Emkay Global

Result surpassed estimate; Downgrade to Accumulate

* Apar reported a strong Q2FY17 earning growth which were above our and consensus estimate. Revenues increased at a moderate rate of 1.6% YoY to Rs 12.6bn; EBITDA went up 12.5% YoY to Rs 1.0bn; while APAT increased 82.2% YoY to Rs 457mn

* Revenue increased across the conductors (+3.5% YoY to

24/11/2016 11:01:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Britannia Industries For Target Rs.3,100.00 - RCML

RM inflation creeping in; risk-reward balanced – HOLD

BRIT’s Q2FY17 results were ahead of estimates on the sales front but below on EBITDA and adj. PAT. Consolidated net sales/EBITDA/adj. PAT grew 11%/5%/6% YoY. Overall volumes grew 7% with base business (biscuits, cakes and rusk) volumes up 11% YoY. Consolidated EBITDA margins contracted

23/11/2016 4:35:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Bharat Heavy Electricals Ltd For Target Rs.102.00 - Emkay

Strong performance, but retain sell

* BHEL Q2FY17 operational performance exceeded our expectations, largely driven by reduction in other expenses. Revenues increased by 12%YoY while EBIDTAM improved to 2.3%. APAT rose to Rs1bn.

* Order inflow declined by 24%YoY to Rs 20bn (Rs 26bn YoY). Order inflow for 1HFY2017 was down by 76% YoY to Rs52bn

23/11/2016 12:34:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Pidilite Industries Ltd For Target Rs.720.00 - RCML

Q2 slightly below estimates – maintain HOLD

PIDI’s Q2 revenues at Rs 14.1bn (+7.6% YoY) came in slightly below estimates with overseas subsidiaries posting +7% CC YoY growth and the core CBP segment ~7.8%YoY volume growth. Despite higher gross margins (+170bps YoY), consolidated EBITDA margins declined ~9bps YoY to 22.9% on higher other exp

23/11/2016 12:28:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate GlaxoSmithkline Consumer Healthcare Ltd For Target Rs.6,550.00 - Emkay Global

Actions being taken to revive growth; Retain ACCUMULATE

* Weak quarter led by volume miss - Revenues at Rs11.4bn, down 1.3% yoy, EBITDA margin up 40bps yoy to 18.4% and APAT at Rs1.8bn, up 11.8% yoy

* HFD volumes declined by 3% yoy impacted by weak category growth. Underlying value growth flat supported by price hikes. Continued to gain volum

23/11/2016 12:19:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy The Phoenix Mills Ltd For Target Rs.366.00 - Kotak sec

Phoenix mills reported 16.2% YoY growth in consolidated revenues led by increased rentals and consumption seen in its flagship mall High Street Phoenix, better than our estimates. Better than expected margins led to profitability coming ahead of our estimates.

During Q2FY17, rentals have witnessed an improvement for the quarter for most of the market cities along with improvement in c

23/11/2016 12:08:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Max Financial Services Ltd For Target Rs.570.00 - Sharekhan

Key points

* Decent operating performance, consistent growth:

Max Financial Services (MFS) holds 70.01% stake in Max Life Insurance, which saw an improvement in its key customer metrics during Q2FY2017, with renewal premiums growing by 11% YoY while the first-year premium income jumped by 17% YoY. Max Life h

23/11/2016 11:55:24 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Majesco Ltd For Target Rs.660.00 - Reliance sec

As expected, Majesco Limited announced a soft performance on revenue front in 2QFY17, while profitability came in better than expected. USD revenue dipped 3.7% qoq to US$31.6mn, while in INR terms it declined 4.1% qoq to Rs2.1bn. This was owing to delays in a client transformation program. Owing to successful integration and cost improvements at Cover All and higher Licence revenue, Majesco&rsq

23/11/2016 11:45:05 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Petroleum Corporation Ltd For Target Rs.754.00 - Prabhudas Lilladher

* Weak GRMs, marketing inventory losses drag earnings:

BPCL reported Q2FY17 results lower than our estimates; EBITDA at Rs13.8bn (PLe: Rs30.8bn) (+2%YoY, ‐ 65%QoQ) and PAT at Rs13.1bn (PLe: Rs19.5bn) (+26%YoY, ‐50%QoQ). Lowerthan‐ expected earnings were due to 1) weak GRMs of US$3.1/bbl (Q1 US$6.1/bbl) and 2) marketing inventory loss of Rs3.6bn.

23/11/2016 11:38:24 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Triveni Turbine Ltd For Target Rs.140.00 - Sharekhan

Key points

* Flattish operational performance; higher other income lifts earnings:

Triveni Turbine’s Q2FY2017 revenue grew at a healthy pace of 13% YoY to Rs202 crore. While the export revenue witnessed a robust growth (72% YoY), the domestic revenue declined by 21% YoY. Largely, the revenue growth was

22/11/2016 12:07:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Insecticides (India) Ltd For Target Rs.650.00 - Emkay

Earnings delivery back on track; Upgrade to BUY

* Insecticides India reported 26% yoy revenue growth to Rs4.7mn, broadly in-line with our estimate. Performance across both segments remained healthy, with formulation revenues at Rs4.2bn (+27% yoy) and technical revenues at Rs788mn (+16% yoy).

* EBITDA at Rs478mn registered robust growth of 36.

22/11/2016 12:01:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bank of Baroda For Target Rs.149.00 - SPA Sec

BoB reported good set of numbers with improvement in both operating performance and asset quality. NII increased by 5.6% YoY to INR 34.26bn supported by 29bps improvement in NIM while loan book declined by 14.6%. Pre-Provisioning Operating profit (PPOP) increased by 15% YoY supported by 36.5% increase in other income. Asset quality improved QoQ on back of lower slippages of INR 22.52bn (2.5% of

22/11/2016 11:46:25 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Divis Laboratories Ltd For Target Rs.1,400.00 - RCML

Listless quarter but guidance intact

DIVI’s Q2FY17 earnings growth declined 25% YoY due to a weak topline and higher expenses. Management retained its FY17 sales growth guidance of 15% and EBITDA margin guidance of 36-37%. DIVI expects a six-month delay in commissioning of the new Kakinada plant due to farmer agitation for higher compensation. On

22/11/2016 11:31:58 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Motherson Sumi Systems Ltd For Target Rs.381.00 - Karvy

Strong Q2FY17 Result…On Track to Achieve Targeted Performance

Motherson Sumi Systems Ltd. (MSSL) reported strong performance in Q2FY17 despite challenging global business environment. It’s consolidated Rev/EBIDTA/adj PAT grew by 14.3%/10.7%/16.8% YoY and -3%/6%/14.0% QoQ to Rs 101.4bn/9.97bn/3.5bn (our estimate of Rs 105.7bn/9.5bn/3.3bn).

22/11/2016 11:26:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy OnMobile Global Ltd For Target Rs.140.00 - India Nivesh

Q2FY17 revenue for OnMobile Global Ltd remained flat (down ~0.8% Q/Q) to ~Rs.1871mn (v/s INSL est: ~Rs1898mn). Rupee‐revenue was down by 9.6% Y/Y, primarily on the account of LatAm and termination of RBT services in Vivo, Brasil during this quarter. Man power cost reduced by 2.5%/4.8% as compared to Q1FY17 and Q2FY16. Operating expenses during the quarter included the forex loss of Rs.13mn. E

22/11/2016 11:22:01 AM | Posted in Broking Firm Views - Long Term Report read full news