Buy Hindustan Unilever Ltd For Target Rs.995.00 - Sharekhan

Key points

* Volume growth at 4% YoY; margin expansion continues:

In Q1FY2017, Hindustan Unilever’s (HUL) revenues grew by 3.6% YoY to Rs7,987.7 crore, with volume growth at 4% YoY (in line with Q4FY2016, but lower than our and consensus estimate of 5% YoY). The impact of phase out of excise duty benef

19/07/2016 12:17:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Uniphos Enterprises Ltd For Target Rs.630.00 - Reliance sec

Background & Business

UPL is global agrochemical company headquartered in India with 28 manufacturing locations in 9 countries across 3 continents. UPL has a large product portfolio and a strong marketing and distribution network with direct presence in 40 countries. UPL will also soon own a 100% stake in seed company Advanta India and it has a goo

19/07/2016 12:09:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate NIIT Technologies Ltd For Target Rs.502.00 - Kotak Sec

NIITT reported lower-than-expected results for 1QFY17. Revenues de-grew by 1.2% in USD terms, mainly due to the seasonal fall in GIS revenues and lack of scale up in new projects. About 17% of NIITT's billing is in GBP. Thus, the recent GBP depreciation as well as delays and deferments in projects will pose headwinds. However, T&T revenues should pick up WEF 2Q, as scale-downs have bott

19/07/2016 12:00:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell MindTree Ltd For Target Rs.540.00 - RCML

Yet another red flag in Indian IT; Reiterate SELL

MTCL, the poster boy of India’s IT mid-cap space, missed earnings estimates by 17% with margins falling 245bps short of expectations. Besides, metrics look weak (pricing decline, lower TCV, weak headcount) and Q2 should see a 200bps margin headwind. Despite this, management remained optimistic on

19/07/2016 11:56:07 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy DCB Bank Ltd For Target Rs.118.00 - Emkay Global

Strong core earnings, stable asset quality; maintain Buy

 DCB Bank's 3QFY16 pre-provisioning profit growth was robust, driven by strong NII growth of 31.6%, healthy growth in fees (17.6% yoy) and a lower core cost-income of 60.7% (down 381bps yoy, 596bps qoq) 

Led by fresh slippages of Rs550m (2.1% of loans), chiefly from the SME segmen

19/07/2016 11:50:47 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Infosys Technologies Ltd For Target Rs.1232.00 - Kotak Sec

Infosys' results disappointed with a 1.7% CC revenue growth (1.9% in 4QFY16). EBIT margins fell by 140bps, but came in higher than our estimates. Revenues fell short because of unexpected headwinds in discretionary spends and slower-than-anticipated ramp up in large accounts won in previous quarters. However, these are not reflective of the macro scene and will likely start improving 2QFY17

19/07/2016 11:40:08 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Tata Consultancy Services Ltd For Target Rs.2,650 - Motilal Oswal

Slu ggish BFSI will remain an overhang

* Growth acceleration thwarted by BFSI…:

TCS’ 1QFY17 constant currency growth of 3.1% QoQ was marginally below our estimate of 3.9% QoQ. While the performance was broad-based, BFSI growth of 1.7% QoQ CC lagged remaining business, driven by an uncertain macr

19/07/2016 11:33:20 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate NIIT Technologies Ltd For Target Rs.630.00 - Emkay Global

Internals on track; focused on ensuring a more predictable performance

* NIIT Tech detailed out it’s progress on the Corporate Agenda over the past 12 months which have resulted in significant improvement in margins over the past few quarters

* NIIT Tech continues to focus on improving its business profile (read: higher share of interna

19/07/2016 11:21:11 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Larsen & Toubro Ltd For Target Rs.1,770.00 - Motilal Oswal

The Monitorable Troika

Focus shifts to order inflows, execution and working capital

 Key focus areas for FY17 are order inflows, domestic execution and working capital improvement; asset divestments to aid improvement in ROE.

 “Lakshya” – five-year (FY17-21) strategic plan ai

18/07/2016 12:56:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Industries Ltd For Target Rs.1,160.00 - Emkay Global

Good show in core biz

* Results were above our and consensus est. with PAT at Rs73.2bn (vs. our est. of Rs68.3bn) on back of robust operational performance in both Reining and Petchem. While EBIDTA came in at Rs107bn (vs. our est. of Rs102bn), which grew by 4.4% qoq.

* Refining EBIT margins has improved sequentially by 300bps to 15.8% with Rs

18/07/2016 12:44:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Infosys Ltd For Target Rs.1,275.00 - Reliance sec

Polar opposites with TCS!

In a 180 degree reversal of TCS, Infosys after several quarters of good performances delivered a disappointing quarter in 1QFY17. USD revenue 1.7% in CC terms vs our est of 2.4%. As a result, CC revenue growth guidance for FY17 has been downgraded to 10.5%-12.5% (11.5%-13.5% earlier). A positive - key verticals like insurance, MFG, r

18/07/2016 12:30:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Infosys Ltd - Prabhudas

First Cut: Q1FY17 below expectations; $EBIT growth at 11% YoY

Infosys’ Q1FY17 revenues grew 2.2% QoQ in US$ against expectations of ~4%. Revenue in CC term grew by 1.7% QoQ against our expectations of 4% growth. Revenue miss of ~2.3% is meaningful. Company has lowered the FY17 CC revenue growth guidance by 1‐1.5% to 10.5%‐12% YoY from 11.5%

18/07/2016 12:24:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cyient Ltd For Target Rs.550.00 - Motilal Oswal

Services traction offset by margin outlook

* Broad-based services traction:

CYL’s 1QFY17 revenue grew 2.6% QoQ (and 2% QoQ in constant currency) to USD124m, compared to our estimate of USD123m. Services business grew 5.4% QoQ to USD115m (v/s our estimate of USD113m), registering the highest growth in 7

18/07/2016 12:13:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Infosys Ltd For Target Rs.1,200.00 - RCML

Forgettable quarter

INFO posted a disappointing Q1FY17, with revenues merely inching up 1.7% CC QoQ vs. 3.3% CC QoQ implied by its FY17 guidance. This led INFO to cut its FY17 CC guidance by 100-150bps, which still implies a 2.7-3.2% CQGR for the year. A company of INFO’s stature is not often found cutting its annual guidance between April and Ju

18/07/2016 10:58:11 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Cera Sanitaryware Ltd For Target Rs.2703.00 - SKP Sec

Company Background

Cera Sanitaryware Ltd. (CERA), promoted by Mr. Vikram Somany, is India’s third largest player in sanitaryware products, with organised market share of ~23%, after HSIL (~40%) and Parryware Roca (~30%). It also manufacturer’s faucets and has presence in tiles. It is now putting up its first tile manufacturing facility und

18/07/2016 10:46:55 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tata Consultancy Services Ltd For Target Rs.2,620.00 - Prabhudas

Tata Consultancy Services’ (TCS’) Q1FY17 revenues were below expectations, while margins were above expectations. Q1FY17 CC revenues are up 10.1% YoY, while EBIT margins are down 120bps YoY, resulting in muted 3% YoY USD EBIT growth. Company’s specific headwinds such as Diligenta, Insurance, Latin America have bottomed out; however, Brexit may be an additional headwind in FY17

18/07/2016 9:48:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cyient Ltd For Target Rs. 575 - SPA Securities Ltd

Cyient's Q1FY17 numbers were in line with our estimates with positive surprise on the operating margin front. Revenue grew QoQ by 1.8% to INR 8306mn (SPAe: INR 8342mn) while PAT grew by 12% to INR 740mn (SPAe: INR 758mn). Due to partial wage hike, higher utilization and improvement in onsite margin, operating profit improved by 09bps QoQ to 13.12% (SPAe: 11.55%). However, there will be some

16/07/2016 5:29:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Consultancy Services Ltd For Target Rs.2,775.00 - Reliance sec

Smooth quarter after several disappointing ones

After several quarters of disappointment, TCS delivered a solid 1QFY17. USD revenue rose 3.7% QoQ at US$ 4,362mn, EBIT margin was 59bps above estimate; growth was broad-based, an encouraging factor. YoY growth improved for the 2nd successive quarter. Management is not seeing any major headwinds in any mar

16/07/2016 5:20:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Dr. Reddy's Laboratories Ltd For Target Rs.3,280.00 - RCML

gZegerid an interesting near-term opportunity

*   Zegerid patent expires today:

The patent for Zegerid capsules (20mg/40mg dosage; prescribed for heartburn disease) expires today, and DRRD has a settlement to launch its generic version on 16 July’16 with the innovator (Valeant). We believe this ca

16/07/2016 4:42:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Tata Consultancy Services Ltd For Target Rs.2602.00 - Kotak Securities Ltd

TCS results were marginally better than our expectations on the margin front with revenues coming in line. Revenues grew by 3.1% in CC terms with a 100bps fall in EBIDTA margins. Digital revenues continued to grow above the company average and formed 15.9% of 1Q revenues as against 15.5% in 4QFY16. The headwinds from Diligenta have also subsided with revenues expected to be stable / grow margin

15/07/2016 12:26:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Consultancy Services Ltd For Target Rs.2,750.00 - Sharekhan

Key points

Good quarter, margin performance surprises positively:

For Q1FY2017, Tata Consultancy Services (TCS) has delivered an in-line revenue performance with a 3.1% quarter-on-quarter (QoQ) growth on constant-currency (CC) basis, driven by volume growth of 3.4%, positive cross currency movement (60 BPS) a

15/07/2016 12:25:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Cyient Ltd For Target Rs.509.00 - Kotak Securities Ltd

Cyient's 1QFY17 results were marginally better than estimates, with CC revenues growing by 2% QoQ and margins rising by about 10bps QoQ (only partial increments given in 1Q). Excluding Product Realisations (PR) business, USD revenues grew by 5.4% QoQ, almost in line with estimates. Revenue growth was helped partly by the spill-over of projects from 4QFY16 to 1QFY17. Softential revenues also

15/07/2016 12:19:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Granules India Ltd For Target Rs.162.00 - Emkay

Another deal to ‘Jump-Start’ generic pipeline

* Granules acquired a 12.5% stake in USpharma, a privately held US generic company. The investment gives Granules access to USpharma’s future R&D pipeline with a first right of refusal and also potentially raise its stake further in future

* Granules had earlier in-licensed 4

15/07/2016 11:57:40 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Tata Consultancy Services Ltd For Target Rs.2,300.00 - Religare

Margin-led beat but upgrades unlikely; maintain SELL

TCS reported a steady 3.7% QoQ US$ growth in its Q1FY17 revenues (RCMLe: +2.8%) led by a 3.4% QoQ growth in volumes; revenues grew 3.1% QoQ in CC terms. Despite multiple margin headwinds, EBIT margins beat estimates and came in at 25.1% (RCMLe: 23.7%). While margin management is commendable, we note that des

15/07/2016 11:42:58 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Tata Consultancy Services Ltd For Target Rs.2,400.00 - Emkay Global

June’16 quarter just about manages to meet broader expectations 

 June’16 quarter just about manages to meet broader expectations. A 3.1% QoQ c.c revenue growth is the slowest sequential revenue growth in over 7 years confirming both the large base and growth challenges that the sector faces 

EBIT margins at 25.1%, (-100 bp

15/07/2016 11:32:28 AM | Posted in Broking Firm Views - Long Term Report read full news