Buy Aurobindo Pharma Ltd For Target Rs.810.00 - Reliance Sec

Injectable Portfolio, New Launches to Drive US Biz; Maintain BUY

Aurobindo Pharma (ARBP) has reported a better-than-expected performance in 2QFY18. Sales grew by 17.5% YoY to Rs44.4bn on the back of strong growth in US (+25% YoY), Europe (+37% YoY) and RoW (+38% YoY). US revenue increased by 25% YoY and 24% QoQ (in CC terms) to US$323mn due to new prod

18/12/2017 3:31:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy JK Cement Ltd For Target Rs.1,286.00 - Emkay

Good show amidst challenges; Upgrade to BUY

* JK Cement’s Q2FY18 result was ahead of our estimates, with EBITDA at Rs1.95bn against estimated Rs1.75bn and OPM at 17.6% against estimated 16.9% led by higher profit from Grey Cement (EBITDA/tn of Rs547 against our estimate of Rs450).

* Volume of grey cement grew 16.8% yoy to 1.93mt, led by

18/12/2017 3:26:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Persistent Systems Ltd For Target Rs.780.00 - Motilal Oswal

So lutions in sight

Analyst Day Takeaways

We attended the PSYS Analyst day in Pune, where the company demonstrated its multiple solutions ready to hit the market, while also laying out its growth strategy and explaining the opportunities in Blockchain, though long drawn.

Appended below are our key ta

18/12/2017 3:19:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy State Bank of India Ltd For Target Rs.370.00 - Reliance Sec

Asset Quality Surprises Positively; Maintain BUY

State Bank of India (SBI) has positively surprised on fresh slippages front in 2QFY18, which sequentially fell to Rs106.3bn (vs. our estimate of ~Rs155bn) from Rs300.6bn in 1QFY18. Further, the Management chose to strengthen the balance sheet over profitability by increasing Provision Coverage Ratio (PCR

18/12/2017 3:15:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Grasim Industries Ltd For target Rs.1,420.00 - Emkay

Strong performance; Upgrade to ACCUMULATE

* Grasim Industries’ Q2 result was above estimates with EBITDA at Rs7.9bn against estimated Rs6.6bn and OPM at 19.4% against estimated 16.1% led by better-thanestimated profit of transferred business segments of Aditya Birla Nuvo.

* VSF sales volume was up 4.8% yoy. Realization was up 5.6% YoY d

18/12/2017 3:09:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Biocon Ltd For Target Rs.485.00 - Motilal Oswal

M ylan/ Biocon received Trastuzumab approval in US

* Mylan/ Biocon announced on Friday that US FDA approved Mylan’s Ogivr (trastuzumab-dkst), a biosimilar to Herceptin (trastuzumab), co-developed with Biocon. Ogivri™ is the first FDA-approved biosimilar to Herceptin and the first biosimilar from Mylan and Biocon’s joint portfolio app

18/12/2017 2:58:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tata Chemicals Ltd For target Rs.761.00 - Emkay

Marked improvement in Fertiliser, America and Africa performance

*  Consolidated EBITDA increased by 31% yoy to Rs7.4bn, led by turnaround in Fertiliser operations (from loss of Rs27mn in Q2FY17 to a profit of Rs666mn), and improved performance in US Soda Ash and Africa operations.

*  Africa business reported a sharp allround improv

16/12/2017 2:09:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Capital First Ltd For Target Rs.925.00 - Motilal Oswal

Grinding along

Return ratios to improve with scale and mix

*  We recently met management of Capital First (CAFL) at our ‘Midcap Conference’.

*  The company’s growth prospects appear bullish to us. Given the strong performance in 1HFY18, coupled with better-than-expected demand in the fest

16/12/2017 2:02:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jindal Stainless Ltd For Target Rs.145.00 - Emkay

Stock adjustment weighs on EBITDA

*  Revenue stood at Rs26bn (+36% yoy/29% qoq), better than our estimate, backed by higher volume offtake at 202kt (+40% yoy/+41% qoq), and better realization at Rs1,28,816/tonne (+5% yoy/-16% qoq).

*  EBITDA/tn, impacted by liquidation of high inventory cost, fell by 9% yoy to Rs12,669 (-27% qoq). I

16/12/2017 1:49:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Siemens Ltd For Target Rs.1335.00 - Motilal Oswal

Better than estimated margins lead to in line results at the operating level

*  Sales at INR31.4b (+1.2% YoY) was below our estimates of INR39.4b. Muted revenue performance was on account of revenue decline in mobility segment (INR2.6b -25.4% YoY), process industries and drives (INR5.8b, -13.3% YoY), power and gas (INR3.9b -13% YoY) .

*

16/12/2017 1:39:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Prabhat Dairy Ltd For Target Rs.172.00 - Emkay

B2C portfolio to drive the Vision 2020

*  Revenue grew by 18.8% yoy to Rs 3.9bn, EBITDA at Rs 317mn, up 14.8% yoy. APAT at Rs 91mn, up 1.6% yoy impacted by higher depreciation. Interest cost and tax rate  Revenue growth aided by healthy growth in pouch milk and cheese categories. Share of value added products stood at 79%. Company is ramping up

16/12/2017 1:32:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Alkem Laboratories Ltd For Target Rs.2500.00 - Motilal Oswal

Uniquely positioned

Fundamentals strong; valuations reasonable

Domestic business set to grow at >20% over next three quarters:

Alkem Laboratories (ALKEM) has guided for GST-adjusted (impact of ~7%) growth of mid-teens in the domestic market in FY18. This would translate into >20% growth in 2

16/12/2017 1:23:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Triveni Turbine Ltd For Target Rs.147.00 - Emkay

GST transition pangs impact performance

*  Triveni Turbine (TRIV)’s operational performance was below our and consensus expectations. Revenues increased by 8.8% yoy. EBITDAM increased by 30bps and PAT declined by 17%.

*  While export revenues remained flat, the domestic bookings increased by 20% yoy. While product revenues mar

16/12/2017 12:25:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jyothy Laboratories Ltd For Target Rs.421.00 - Reliance Sec

Henkel Buyback Lapses; Overshadows Decent Operating Performance

Jyothy Laboratories (JYL) has reported a decent set of results in 2QFY18. While its reported consolidated sales grew by 4.3% YoY to Rs4.3bn, comparable revenue growth – post accounting for GST – stood at 9.6% YoY. Volume grew by a modest 3.5% YoY during the quarter. Consolidate

15/12/2017 4:09:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Whirlpool Of India Ltd - Motilal Oswal

Focus on premium segment and bridging product gaps

Guides for double-digit growth in revenue

We attended Whirlpool Limited’s analyst meet.

Key highlights: Focus on premium products and bridging product gaps

*  P

15/12/2017 4:01:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Forge Ltd For Target Rs.900.00 - IIFL

Strong revenue visibility across segments

Bharat Forge is set to achieve sustained strength in revenues driven by traction across segments. While CV exports will gain momentum in the wake of surging US class 8 truck sales, growing industrial capex and shale asset spends would boost industrial exports. Passenger car component exports are yet at a nascen

15/12/2017 3:49:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Heidelberg Cement India For Target Rs.170.00 - Reliance Sec

Strong Performance on Healthy NCR and Cost Benefits

HeidelbergCement India (HCIL) has reported a strong performance in 2QFY18 amid challenging environment primarily led by better-than-expected NCR, cost benefits and one-time reversal (Rs57mn) of provisioning towards DMF for the prior period. Reported EBITDA surged by 46% YoY and 52% QoQ to Rs874mn surp

15/12/2017 3:43:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shriram Transport Finance Company Ltd For Target Rs.2,020.00 - IIFl

Shriram Transport Finance (STFC) is entering a sweet phase of business cycle, which would be marked by steady asset growth recovery, robust growth in pre-provisioning operating profit, and significant earnings jump, thereby collectively lifting valuations towards cyclical peaks. We believe the franchise’s unique and tough-to-replicate positioning helped it achieve healthy profitability de

14/12/2017 3:31:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Majesco Ltd For Target Rs.667.00 - Reliance Sec

Good Performance

Majesco Limited (Majesco) has reported a good set of numbers for 2QFY18, with revenue rising by a solid 8.8% QoQ in USD terms to US$30.3mn (8.6% in CC terms), while in INR terms revenue rose at a similar rate of 8.8% QoQ to nearly Rs2bn. Profitability improved owing to healthy revenue growth, with improved EBITDA margin (+395bps QoQ) a

14/12/2017 3:24:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold HISL Ltd For Target Rs.450.00 - Emkay

*  Revenue at Rs5.3bn up 7.4% yoy, EBITDA down 8.8% yoy to Rs721mn and APAT at Rs 235mn down 17.7% yoy

* Building products grew by 6.7% yoy to Rs2.6bn while EBIT margins saw an uptick of 30bps to 19.2% due to better product mix in sanitary ware. Packaging products revenue was flat at Rs2bn, EBIT margins came in at 7.5% down 470bps impacted by Supreme Court judgment on highway liq

14/12/2017 3:15:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sadbhav Engineering Ltd For Target Rs.405.00 - Emkay

* Sadbhav Engineering’s (SADE) topline grew by 12.6% yoy to Rs6.9bn (Emkay Est: Rs6.8bn), mainly driven by strong execution of its EPC orders and robust order inflows (worth Rs17.2bn) witnessed during 1HFY18.

* The company has received LoA for 5 HAM projects and have started construction work on these projects with execution expected to pick up further from 2HFY18.

* S

14/12/2017 3:10:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy KEC International Ltd For Target Rs.372.00 - Reliance Sec

Operating Margin Continues to Remain Healthy; Maintain BUY

Aided by strong improvement in operating margin, consolidated PAT of KEC International (KEC) surged by 42% YoY to Rs894 mn in 2QFY18. However, its revenue remained flat (+0.5% YoY) at Rs21.3bn owing to the initial impact of GST roll-out. We expect KEC’s earnings to witness 25% CAGR over F

14/12/2017 3:03:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Motherson Sumi Systems Ltd - Motilal Oswal

On track to attain Vision 2020

Beyond 2020, targeting areas like aerospace, defence and IT security

We attended MSS’s investors meet to update on Vision 2020 (Click here for the presentation made at the Meet). It is on track to attain its targets for FY20 of revenues of USD18b and RoCE of 40% driven by

14/12/2017 2:58:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NHPC Ltd For Traget Rs.33.00 - Emkay

* Generation declined 1.6% yoy to 8.8 bn unit, while realization declined 5.0% yoy to Rs2.9/unit. Revenue (after adjusting for Rs2.8 bn one offs related to high provisioning of Parbati units tariff) declined 6.5% yoy to Rs22.5 bn. PAT was up 16.3% yoy to Rs12.9 bn

* NHPC expects to commission 330MW Kishanganga project in Q4FY18 which will be capitalized in FY19E. NGT has referred the

14/12/2017 2:52:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold NMDC Ltd For Target Rs.128.00 - Emkay

* Revenue came in at Rs24bn (+39% yoy/-15% qoq). Sales volume was slightly better than our estimate while realization was in line with our estimate. Volume grew by 4% yoy to 8.3mt (-10% qoq) while realization rose by 36% yoy to Rs2,887/tonne (-6% qoq).

* EBITDA/tn stood at Rs1,450 (+41% yoy/-11% yoy). EBITDA stood at Rs12bn (+46% yoy/- 20% qoq). Other expenses included Rs1.54bn of exp

14/12/2017 2:46:52 PM | Posted in Broking Firm Views - Long Term Report read full news