Buy Sanghi Industries Ltd For Target Rs.90 - RCML

Strong Q1, capacity to double by FY20 – BUY

SNGI’s Q1 EBITDA/t beat estimates at Rs 960 (RCMLe: Rs 903) driven by 9% YoY growth in blended realisations and a higher proportion of grey cement sales. But PAT at Rs 238mn (RCMLe Rs 268mn) was tad lower due to higher interest and taxes. SNGI plans to double its capacity to 8MT by FY20. We roll

27/08/2016 11:43:52 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Godrej Properties Ltd For Target Rs.391 - Motilal Oswal

Operationally weak quarter, led by lower realizations

Margins improve sequentially:

Revenue grew 53% YoY to INR3b. Margins expanded from 12.3% in 4QFY16 to 13.1%, though 33% revenue contribution from the relatively lower margin BKC asset was a drag. PAT grew 9.2% YoY to INR435m, aided by lower tax ou

27/08/2016 11:35:25 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apar Industries Ltd For Target Rs.627 - Emkay

Strong operating performance

*  Miss on revenues, but beat on EBITDA and PAT. Revenues at Rs 10.8bn, down 13%; EBITDA at Rs 1.1bn, up 22%; APAT at Rs 456mn, up 78% yoy

*  Tepid demand environment, delayed dispatches and low raw material costs resulted in conductor revenues declining by 23% yoy to Rs 4.9bn and Oil segment revenues de

27/08/2016 11:20:01 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate MindTree Ltd For Target Rs.600 - Prabhudas

Well‐positioned to capture new age Digital opportunities

We attended Mindtree’s (MTCL’s) Analyst/Investor meet where the company showcased its capabilities across two core areas – Digital and Traditional IT services. Company envisioned the digital trend early and currently derives 38% of revenues from Digital. Company has also used

27/08/2016 11:02:28 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shree Cements Ltd For Target Rs.19,000 - RCML

Stellar quarter – maintain BUY

SRCM’s Q1FY17 cement EBITDA/t nearly doubled to Rs 1,262, spiraling up Rs 493 QoQ/ Rs 599 YoY as realisations improved 15%/11% QoQ/YoY and costs trended lower. Higher operating profits and lower depreciation led to a solid PAT beat (Rs 5.1bn vs. RCMLe Rs 3bn). We raise estimates to build in a stellar Q1, and

27/08/2016 10:46:03 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NCC Ltd For Target Rs.90 - Karvy

Decline in interest cost drives earnings; Maintain Buy

NCC Q1FY17 operational performance was in-line with our expectations. Revenue increased 11% YoY to Rs 18.9bn, led by pick up in execution. EBITDA increased moderately by 5% YoY to Rs 1.65bn as the margin declined 50 bps YoY to 8.7%. Other income declined sharply by 45% YoY (in-line with estimate)

27/08/2016 10:39:05 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Inox Leisure Ltd For Target Rs.278 - Emkay

*  In-line revenues while EBITDA missed estimates due to higher than expected employee cost. Miss on advertisement revenue was offset by other operating income

*  Consolidated footfalls grew 7% yoy while for comparable properties it was down 1% yoy. ATP improved by 5.5% yoy to Rs174. F&B revenue grew 9% yoy with gross margin expansion of 209bps yoy to 77.2%.

*&

27/08/2016 10:19:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Britannia Industries Ltd For Target Rs.3,660.00 - Motilal Oswal

Impressive volumes in weak environment; good recovery potential

* Operating performance below expectations:

Britannia’s (BRIT) 1QFY17 consolidated net sales grew 8.5% YoY (est. of +11% YoY) to INR21.1b (Ind-AS). Volumes increased impressively by 8% YoY (est. of +10% YoY) against the backdrop of flat indu

25/08/2016 11:50:10 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Speciality Restaurants Ltd For Target Rs.115.00 - Sharekhan

Key points

* Q1FY2017 – disappointment continues; discretionary spends remain lower:

Speciality Restaurants’ (SRL) Q1FY2017 revenue declined by 1.9% YoY to Rs78.6 crore, affected by a continued slowdown in the consumer discretionary spending (same-store-sales were down by 8% YoY). Gross Profit Margin (GPM)

25/08/2016 11:39:45 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sun Pharmaceutical Industries Ltd For Target Rs.880.00 - Reliance Sec

Background & Business

Sun Pharmaceutical Industries (SUNP) is the largest Indian pharmaceutical player in the US market with presence niche segments. Its presence in the US has further been strengthened by multiple acquisitions such as Caraco, Taro Pharma, URL Pharma, DUSA Pharmaceuticals etc. At the same time post Ranbaxy acquisition, SUNP is ran

25/08/2016 11:34:28 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Power Finance Corp Ltd For Target Rs.170.00 - RCML

Profits backed by one-offs; loan growth stays elusive

* One-offs drive earnings beat:

POWF’s Q1FY17 PAT grew 9% YoY to Rs 17.1bn, higher than our and consensus estimates. The earnings beat was led by changes in the accounting policy for NPAs that drove PBT higher by Rs 2.8bn.

 

25/08/2016 11:26:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy TD Power Systems Ltd For Target Rs.345.00 - Emkay

Starting over with a clean state

* TD Power Systems (TDPS) reported weak quarterly performance (i) Consolidated revenues down by 37% YoY (ii) Manufacturing revenues decline by 4% YoY (iii) Losses at the EBIDTA level on account of one-time write-off and provisioning for liquidated damages

* Order backlog at Rs2.9bn. Expect strong traction in e

25/08/2016 11:18:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Thermax Ltd For Target Rs.807.00 - Kotak Sec

Thermax reported weak set of numbers as depleting order book has started to weigh on the revenue and profits. Outlook remains subdued as investment pipeline is dry in major user industries like Power, Refineries and Metals. Given the continuing contraction in order book, we forecast the company to report decline in revenues and profits in FY17. Thus, in view of the subdued near-term earnings an

25/08/2016 11:10:42 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy TeamLease Services Ltd For Target Rs.1,170.00 - Prabhudas Lilladher

TeamLease (TL) started FY17 on a healthy note, with Q1FY17 Revenue/EBITDA/PAT growth of 21%/46%/48% YoY, respectively. EBITDA margin expansion was driven by fixed cost leverage and benefits of technology investments made in H2FY16. We expect further margin expansion driven by fixed cost leverage (core employee headcount to remain flat in FY17) and growth in higher margin HR services business.

25/08/2016 11:06:06 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Sharda Cropchem Ltd For Target Rs.330.00 - Emkay Global

Operationally in line performance

 Sharda’s Q1FY17 results were driven by better than estimated growth in Latin America region (+25% yoy) and Europe (23% yoy) while NAFTA region remained flat primarily due to demand pressure in Mexico even as USA growth remained steady

 Consolidated revenues increased 13% yoy to Rs 3.1bn in-line w

25/08/2016 10:58:00 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Shree Cement Ltd For Target Rs.13,000.00 - Reliance sec

Better Realization Aids Robust Performance; Valuations Pricey

Shree Cement (SCL) has reported a better-than-anticipated operating performance in 1QFY17 with its EBITDA rising by 108% yoy to Rs7.3bn mainly led by above-estimated surge in average realization (+15% yoy). Further, a sharp decline in power and fuel cost (-28% yoy & -9% qoq on per tonne

24/08/2016 11:57:14 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Birla Corporation Ltd For Target Rs.741.00 - Motilal Oswal

Strong beat led by volume boost, strong realizations and higher other income

* 1QFY17 characterized by strong volumes and realizations:

Birla Corporation’s (BCORP) volumes grew strongly by 11% YoY (est. of +8% YoY) to 0.22mt in 1QFY17. Realizations were up 13% QoQ (4.5% YoY) due to strong pricing in no

24/08/2016 11:42:13 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Va Tech Wabag Ltd For Target Rs.650.00 - Sharekhan

Key points

* Consolidated earnings improve as overseas operations turn black:

Va Tech Wabag’s (VTW) consolidated earnings exhibited a sharp improvement in Q1FY2017 with a profit of Rs5 crore compared to a loss of Rs10 crore in Q1FY2016. During Q1FY2016, VTW’s profitability had suffered due to losse

24/08/2016 11:35:03 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Somany Ceramics Ltd For Target Rs.615.00 - RCML

Margins on an upward trajectory

We attended the analyst meet hosted by SOMC and the key takeaways were: (1) Expect volume-led revenue growth of 8-10% in FY17. (2) Demand to pick up from H2FY17 aided by a good monsoon and 7th CPC implementation. (3) Margins to remain strong due to benign input prices. (4) Working capital to remain stable despite tough

24/08/2016 11:30:36 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Cadila Healthcare Ltd For Target Rs.400.00 - Angel Broking

For 1QFY2017, the company posted lower than expected results. The company posted sales of `2,216cr V/s `2,607cr expected and V/s `2,267cr in 1QFY2016, a yoy de-growth of 2.2%. On the operating front, the EBITDA margin came in at 20.4% V/s 20.9% expected and V/s 20.3% in 1QFY2016. The dip in the OPM was saved in spite of an underperformance on the sales front as the GPM improved to 65.1% V/s 64.

24/08/2016 11:05:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Marico Ltd For Target Rs.292.00 - Prabhudas

We are increasing FY17 and FY18 EPS estimates by 6‐7% following 1) broad‐based volume growth of 8% 2) share gains across segments like Coconut Oil, Hair Oil, Hair Gels and Oats and 3) 5% price increase in Parachute Coconut Oil. MRCO has been able to do a commendable job in VAHO with brands like Shanti Amla gaining share steadily. MRCO is taking Parachute Ayurvedic Gold oil across India whic

24/08/2016 10:58:25 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Developers Ltd For Target Rs.297.00 - Kotak Sec

Result highlights

* Revenues of the company for Q1FY17 were ahead of our estimates due to better than expected EPC revenues on execution ramp up across new projects as well as improvement in traffic volumes.

* Margins declined in EPC divisions on yearly basis and consolidated operating margins stood at 52% vs 57.7% during Q1FY17 due to higher

24/08/2016 10:42:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold HT Media Ltd For Target Rs.88.00 - Emkay

Weak advertisement growth

* Print advertisement revenue was lower than expected in both English and Hindi business. English advertisement revenues (-1.6% yoy) continue to remain depressed as national advertisers are curtailing spends

* Radio business registered strong growth on favorable base and contribution from new channels. Launch expense

24/08/2016 9:40:07 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bayer CropScience Ltd For Target Rs.4,050.00 - Emkay

In-line performance; Result significantly restated due to Ind-AS

* Bayer’s Q1FY17 revenues and expenditure has been significantly restated downwards due to transition to Ind-AS. While revenues have been cut by 43%, expenditure has been restated downward by 48% under Ind-AS

* Revenues at Rs 8.6bn (+7% yoy) was in-line with our estimate a

23/08/2016 12:15:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Navneet Education Ltd For Target Rs.124.00 - Prabhudas

Navneet reported strong set of numbers aided by pick‐up in sales from rural Maharashtra and changes in 9th and 10th Syllabus in Gujarat. Margin improvement in Publishing by 110bps YoY to 41.5% and stationery by 300bps to 20.1% was on account of lower RM cost and better efficiency. Earnings jumped 15.5% YoY to Rs 1.13bn (PLe Rs1.1bn) marginally ahead of estimates. We feel Navneet was hit hard

23/08/2016 12:06:36 PM | Posted in Broking Firm Views - Long Term Report read full news