Accumulate Cummins India Ltd For Target Rs.984.00 - Emkay Global

In-line performance, retain Accumulate

* Cummins (CIL) Q2FY17 operational performance was largely in-line with our expectations. While revenues increased by 5% YoY, the EBITDAM declined by 100bps YoY. APAT decreased by 1% YoY.

* Domestic sales increased by 8% YoY, in line with the slow pace of domestic recovery, mainly driven by government sp

8/11/2016 11:07:04 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cadila Healthcare Ltd For Target Rs.395.00 - RCML

Modest Q2; US business at inflection point – BUY

 CDH posted a below-expected operating performance for Q2 as margins missed estimates by ~150bps owing to forex losses of Rs 264mn. Revenues were flattish YoY but with a ramp-up in gAsacol HD and full impact of HCQS in the base, we expect a better H2 ahead. We cut FY17/FY18 EPS by 9%/7% on a

7/11/2016 12:14:00 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Rallis India Ltd - Angel Broking

For 2QFY2017, Rallis India (Rallis) reported a yoy growth of 20.8% in sales to `540cr (vs. `447cr in 2QFY2016). On the operating front, the gross margin came in at 38.9% (vs. 52.4% in 2QFY2016), which along with sales growth aided the OPM to come in at 17.7% (V/s 19.2% in 2QFY2016). Aided by sales growth, a good operating performance and surge in other income (`12cr vs. `5cr in 2QFY2016), the A

7/11/2016 12:01:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Maruti Suzuki Ltd For Target Rs.6,356.00 - Prabhudas

Maruti Suzuki’s (MSIL’s) performance in Q2FY17 was robust, with healthier‐thanexpected EBITDA margins at 17%. Despite unfavourable forex movements, MSIL’s EBITDA grew 35.3% YoY to Rs30.4bn, on the back of material cost reduction, lower discounts, lower selling and distribution expenses and greater operating leverage. However, due to significantly higher non‐operating incom

7/11/2016 11:54:31 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Thomas Cook (India) Ltd For Target Rs.255.00 - Sharekhan

Key points

* Strong performance continues:

TCIL’s consolidated revenue grew by 56.5% YoY to Rs2,051.6 crore in Q2FY2017, driven by a 2x revenue growth in the core Travel business (including the consolidation of Kuoni’s Travel businesses) and 25%+ growth each in Human Resource (HR) services and Vaca

7/11/2016 11:39:39 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Emami Ltd For Target Rs. 1,050.00 - RCML

Good quarter, valuations cap upside

Emami’s Q2FY17 net sales/EBITDA/adj. PAT grew 10%/15%/9% YoY. Volumes increased 10% YoY (6% ex-Kesh King), while gross margins (+60bps YoY) and EBITDA margins (+130bps YoY) continued to expand. Going forward, we believe the sluggish demand environment and higher A&P spends needed to push demand and support

7/11/2016 11:34:38 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Glenmark Pharmaceuticals Ltd For Target Rs.965.00 - Reliance Sec

Primarily led by strong growth in US business, Glenmark Pharmaceuticals (GNP) has delivered operationally better performance in 2QFY17, beating our EBITDA 15% yoy and margin estimate (up 240bps yoy). Revenues and PAT were in-line with our estimates. Adjusted to one-time milestone income and variable pay in employee expenses, overall sales, EBITDA & PAT stood at Rs21.9bn (up 14.7% yoy), Rs4.

7/11/2016 11:26:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate PVR Ltd For Target Rs.1,268.00 - Emkay Global

Limited upside; Cut to ACCUMULATE

* Ticket sales were weaker than expected as footfalls decline was steeper. However, superior underlying KPIs continue to highlight execution strength of PVR. Robust movie distribution income partially aided overall performance. 

* Q1FY17 reflects full quarter consolidation of DT Cinema, therefore restrictin

7/11/2016 11:20:35 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mold-Tek Packaging Ltd For Target Rs.260.00 – Kotak Sec

Mold Tek Packaging reported in line numbers. Revenue stood at Rs759mn, up 18.7% YoY, while volume growth for the quarter stood at 23%, mainly driven by growth in the paint industry. An increase in In-Mold Labeling (IML) sales during the quarter helped the company to report 100bps YoY expansion in EBITDA margin, despite higher employee costs. We expect volume growth to continue to remain strong

7/11/2016 11:15:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tech Mahindra Ltd For Target Rs.490.00 - Emkay

More confident of recovery in Communications ahead

* Tech Mahindra reported a 5% QoQ constant currency (CC) revenue growth, aided by both inorganic growth (+2.5% QoQ) as well as improving growth in the Communications vertical (+2.4% QoQ; highest in over 4 quarters).

* EBITDA margin was flat QoQ at 14.9%, adversely impacted by one-time restruc

5/11/2016 12:08:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Grasim Industries Ltd For Target Rs.1068.00 - Kotak Sec

* Revenues of the company for Q2FY17 were lower than our estimates due to lower than expected performance in VSF and cement division

* Operating margins improved on yearly basis across all divisions due to lower costs in cement division as well as better pricing in VSF and chemicals. However, sequentially margins have witnessed a decline.

* Net profit performance for the qua

5/11/2016 11:54:25 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy JK Lakshmi Cement Ltd For Target Rs.550.00 - Reliance sec

JK Lakshmi Cement (JKLC) has reported a below par performance on operating front with EBITDA rising by 40% yoy and down by 20% qoq to Rs0.94bn vis-à-vis our estimate of Rs1.03bn mainly on account of lower-than-estimated sales volume, which stood at 1.72mnT (-2% yoy & -19% qoq). Operating cost/tonne declined by just ~1% yoy, while surging by 4% sequentially. Increase in power and fuel

5/11/2016 11:38:18 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Firstsource Solutions Ltd For Target Rs.55.00 - RCML

Soft quarter but growth trajectory to improve; BUY

FSOL’s Q2 revenues at Rs 8.8bn missed RCMLe (Rs 9bn; +1.2% QoQ CC) even as EBIT margins at 10.9% came in above estimates (10.6%). Net debt came down further to US$ 84mn (Q1: US$ 97mn). Despite a soft Q2, management maintained its revenue growth guidance of 10%+ with margin improvement for the yea

5/11/2016 11:25:07 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Supreme Industries Ltd For Target Rs.1,067.00 - Sharekhan

Key points

* Impressive topline performance:

With the impact of fiscal year-end transition over in Q1FY2017, Supreme Industries (SIL) reported strong revenue growth of 14.2% YoY to Rs882.9 crore in Q2FY2017, which was ahead of our expectations. SIL shifted its fiscal year to March-ending from June earlier, wh

5/11/2016 11:14:32 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Hero Motocorp Ltd For Target Rs.3,554.00 - Prabhudas

During Q1FY17, HMCL reported a healthy operational performance, which was better than expected. While revenue growth was 14.5% YoY, EBITDA margin was 17.6%, which was an improvement of 150bps YoY. EBITDA growth was 24.9% YoY. Adjusted profit growth was at 27.7% YoY to Rs10bn (PLe: Rs9.4bn), which was slightly better than expected due to higher other income.

Q2FY17 marked a healthy ope

5/11/2016 11:09:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tanla Solutions Ltd For Target Rs.51.00 - GEPL

Company Snapshot

Tanla Solution is a Hyderabad based IT software product company. Company was founded in the year 1999. Tanla solution is the largest provider of A2P messaging service provider globally. Tanla’s fastrack platform is used by enterprises of all sizes including social media, banks, ecommerce, logistics service providers to deliver m

5/11/2016 10:54:20 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Wipro Ltd For Target Rs.590.00 - Angel Broking

On the sales front, Wipro posted a 0.8% sequential de-growth in its IT Services revenues to US$1,916mn (V/s US$1,921mn expected v/s US$1,931mn in 1QFY2017). In Constant Currency (CC) terms, the company posted a qoq growth of 0.9%. In terms of verticals, Healthcare, Life Sciences & Services posted a CC qoq growth of 4.3%; while in terms of geography, US posted a CC qoq growth of 1.8%. The EB

5/11/2016 10:46:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy MoIL Ltd For Target Rs.360.00 - Emkay

Getting back to good old days!!

Highlights

* Manganese ore prices have rallied sharply in recent times after remaining weak during Q4 and Q1. This helped MOIL to raise its prices in September and in October months. 38% grade lump prices (CNF India) rose from US$3.2/ dmtu to US$7/ dmtu in 3 months

*

4/11/2016 12:25:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Asian Granito India Ltd For Target Rs.351.00 - Angel Broking

For 2QFY2017, Asian Granito’s results have come in line with our estimates on the bottom-line front while the top-line front disappointed. Revenues grew by ~6% yoy, which is lower than our estimate. On the operating front, the company reported margin improvement, primarily on account of lower power & fuel cost. Further, on the bottom-line front, the company reported strong growth on a

4/11/2016 12:12:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tech Mahindra Ltd For Target Rs.525.00 - Prabhudas Lilladher

Tech Mahindra’s (TECHM’s) Q2FY17 revenues and margins were ahead of estimates. Revenues grew 5% QoQ in CC terms and organic growth was 2.5%. Revenue growth was aided by recovery in Telecom vertical which grew 2.4%QoQ after a weak performance in the past few quarters. EBIT margins were largely inline with estimates. Company took a one‐time, restructuring charge of US$13m in the qua

4/11/2016 11:46:48 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy PI Industries Ltd For Target Rs.955.00 - Sharekhan

Key points

* Stellar show in Q2FY2017:

PI Industries (PII) recorded an exceptional performance for Q2FY2017, with a topline growth of 22% YoY at Rs544 crore, primarily driven by improved demand from exports business (advancements of global orders). In the domestic market, new product launches in the recent pas

4/11/2016 11:40:30 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Somany Ceramics Ltd For Target Rs.695.00 - RCML

Strong margin expansion

SOMC reported in-line Q2FY17 revenues of Rs 4.4bn (+10.2% YoY) backed by healthy volume growth of 10.8% YoY. EBITDA margins were ahead of estimates at 9.2%, increasing 230bps YoY mainly due to lower raw material cost. Management has guided for 7-8% revenue growth in FY17 (vs. 9-10% earlier). We raise our FY17 earnings estimates

4/11/2016 11:35:16 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy HDFC Bank Ltd For Target Rs.1,433.00 - Reliance sec

Led by strong growth in NII, treasury and forex income, HDFC Bank has reported healthy growth in profit in 2QFY17. Its NII grew by strong 19.6% yoy (2.7% qoq) led by 18.1% yoy (5.1% qoq) growth in loan book. However, NIMs declined by 20bps qoq as the Bank managed to maintain higher liquidity to facilitate redemption of FCNR deposits. Deposit growth remained sanguine on account of robust growth

4/11/2016 11:28:22 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce JSW Steel Ltd For Target Rs.1680.00 - Kotak sec

JSW Steel's (JSTL) reported strong set of numbers, led by better than expected realisations and higher volumes. JSTL reported profit of Rs7.27bn in 2QFY17 as against estimated profit of Rs6.45bn. The consolidated net sales for the quarter came at Rs132.28bn, due to the better-than-expected realisation and higher volumes. EBITDA grew 65% YoY to Rs29.59bn (down 9.5% QoQ), with an EBITDA margi

4/11/2016 11:18:31 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate MPS Ltd For Target Rs.770.00 - Emkay Global

MagPlus consolidation boosts revenue performance

* MPS’ Sep’16 quarter revenues at US$11.2mn* rose by 16.8% YoY / 22% QoQ, aided by consolidation of MagPlus. US$ revenue from top-5/10 clients reported a modest growth of 1.8%/0.9% YoY, marking the fourth consecutive quarter of their soft performance

* EBITDA margin at 31.4% decline

4/11/2016 11:14:26 AM | Posted in Broking Firm Views - Long Term Report read full news