Buy KEC International Ltd For Target Rs.170.00 - Reliance sec

Background & Business

KEC International Limited is one of the largest Power Transmission & EPC companies in the world. KEC strengths its presence in the areas of Design, Manufacture, Supply and Construction of Turnkey Projects, execution of Railway Electrification projects and Telecom Infrastructure Services. KEC has gradually ventured into po

5/08/2016 3:01:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cholamandalam Investment & Finance Company Ltd For Target Rs.1,000 .00 - Emkay

Cholamandalam Finance (CIFC) has developed a diversified and de-risked product portfolio, which insulated it from the CV downcycle. With 1) growth returning in the vehicle finance portfolio, 2) low overall auto financing market share and 3) Home Equity (HE; LAP) portfolio growing at a healthy pace while, quality being maintained, we believe, CIFC is better placed than its peers. The stock trade

5/08/2016 2:54:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shriram City Union Finance Ltd For Target Rs.1,950.00 - RCML

Steady going

SCUF’s Q1FY17 PAT of Rs 1.8bn (+23% YoY) was higher than our and consensus estimates due to better margins and asset quality. GNPA and NNPA were stable QoQ at 5.11% and 1.5% respectively. NPA coverage remained healthy at +70%. AUM growth stood at 17% YoY driven by personal loans, two-wheeler financing and SMEs. We expect a gradual up

5/08/2016 2:46:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.525.00 - Sharekhan

Key points

* Stellar operating performance:

For Q1FY2017, Zee Entertainment Enterprises (ZEEL) has delivered a strong operating performance, with 18.5% YoY growth in revenue at Rs1,571.6 crore, led by healthy 19% YoY growth in advertisement revenues, 14% YoY rise in subscription revenues and 33% YoY increase

5/08/2016 1:16:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Hexaware Technologies Ltd For Target Rs.240.00 - Reliance sec

Hexaware Technologies’ (Hexaware) USD revenue grew by strong 6.6% qoq to US$129.7mn (3.5% above estimate) in 2QCY16. However, we note three key negative areas i.e. (1) lower-than-expected 74 bps qoq rise in EBIT margin (ex-ESOP compensation cost) to 14.5% (75 bps below our estimate) due to higher SG&A costs; (2) Sharp reduction in dividend payout to Re1 per share (from Rs2.5 per share

5/08/2016 1:11:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Aurobindo Pharma Ltd For Target Rs.905 .00 - Emkay

Investment Argument:

Strong operating leverage & move-up the value chain in the offing with a).EPS CAGR over FY16-18 - >20%; & b).ROE/ROIC >30%;

 

* High re-rating potential:

driven by (a) improvement in business mix (higher US revenues), (b) one of the highest no. of AN

5/08/2016 12:34:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold AIA Engineering Ltd For Target Rs.1,030.00 - RCML

FY16 Annual Report highlights

Key highlights of AIAE’s FY16 Annual Report are: (1) management reiterates mining replacement demand estimate of 2.5-3mtpa; (2) delivery of higher metal recovery a focus area; (3) capacity expansion to 440ktpa by Oct’17 on track; (4) lower RM and other costs aided 4.5% EBITDA growth in FY16; (5) sharp increase

5/08/2016 12:20:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Tata Sponge Iron Ltd For Target Rs.615.00 - Kotak Sec

1QFY17 performance was below our estimates, with an EBITDA of Rs81mn and an EBTIDA margin of 7.6%. Net sales declined to Rs1.08bn. PAT came in at Rs106mn, down 17.6% QoQ. The weak performance was on account of lower sales volume, which was impacted by logistics issues and the decline in realisation. Going ahead, we believe the raw material costs to likely remain stable at lower levels, while we

5/08/2016 12:14:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy InterGlobe Aviation Ltd For Target Rs.1,383.00 - Motilal Oswal

High growth/low oil revive industry-wide growth plans

Expect yields to lag ATF rise, price discipline critical to sustain profitability

* Sustained low oil price is strengthening airlines’ balance sheets and emboldening them to announce fleet expansion. As we enter 2Q (the weakest quarter seasonally),

5/08/2016 12:06:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate TVS Motors Company Ltd For Target Rs.333.00 - Prabhudas

With healthy 12.5% YoY volume growth in Q1FY16, TVS Motors reported decent results with marginally improved EBITDA margins at 7%. Realisations were lower 0.3% YoY, which led to 11.9% YoY revenue growth to Rs28.8bn. EBITDA grew 16% YoY to Rs2bn. Profit growth was 21.2% YoY to Rs1.2bn, boosted by higher nonoperating income and lower interest expense, partially set‐off by higher depreciation.

5/08/2016 11:53:45 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Maruti Suzuki Ltd For Target Rs.4,800.00 - Karvy

Maruti Suzuki (MSIL) delivered strong Q1FY17 performance despite challenging business environment. Its performance was supported by healthy product mix, lower input cost and higher non operating income during the quarter. Its EBIDTA margin at 14.8%, as against our estimate of 14.8% (down 136 bps YoY, and 51 bps QoQ) was on account of adverse currency movement. Its RM/Sales increased by 45 bps Y

5/08/2016 11:46:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Info Edge (India) Ltd For Target Rs.950.00 - Sharekhan

Key points

* In-line revenue, margins miss estimate:

For earnings analysis, we are following the old Indian GAAP reporting. For Q1FY2017, Info Edge has delivered in-line revenue growth performance (up 17.3% YoY at Rs201.5 crore vs our estimate of Rs204.6 crore), driven by 17.1% YoY growth in the recruitment b

4/08/2016 4:29:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Federal Bank Ltd For Target Rs.65.00 - Prabhudas

Federal reported decent quarter led by (i) pick‐up in NII growth to 14.5% on better loan growth of 19.3% & reduced cost of funds and (ii) robust treasury gains (up 100% YoY) & pick up in fees income. Slippages rate came off sharply on lower corporate slippages, but lower upgrades/recoveries led to slight asset quality deterioration. FB guided for better asset quality trends in FY17E t

4/08/2016 4:23:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Unichem Laboratories Ltd For Target Rs.351.00 - Anand Rathi Sec

We are positive about Unichem’s long-term growth story and retain our Buy on the stock with a revised price target of `351. We raise our FY17e and FY18e PAT respectively 12.8% and 13.4% to factor in the operating efficiency. Q1 FY17 revenue and adj. PAT are largely in-line with our estimates.

 

Decent quarter.

Unichem&rsq

4/08/2016 4:14:18 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Indiabulls Housing Finance Ltd For Target Rs.866.00 - Motilal Oswal

* Indiabulls Housing Finance’s (IHFL) PAT grew 23% YoY but declined 7% QoQ to INR6.3b (In-line with our est. of INR6.2b). Strong AUM growth of 30.9% YoY, stable asset quality and book spreads of 318bp were the key highlights of the quarter.

* AUM growth remained healthy at 31% YoY to INR 710b; Loan mix continues to shift in favor of housing loans—will increase from the exi

4/08/2016 4:06:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coromandel International Ltd For Target Rs.272.00 - Emkay

Results affected by one offs, expect strong performance going forward

* Weaker than estimated results of Coromandel (CIL) were mainly on account of higher dealer discounts / inventory losses in fertiliser business due to recent government guidance to lower NPK prices while non fertiliser business performance was encouraging

* Revenues at Rs 2

4/08/2016 3:57:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Torrent Pharmaceuticals Ltd For Target Rs.1,560.00 - RCML

Brazilian business recovers; maintain HOLD

TRP’s Q1FY17 earnings missed our/consensus estimates by 9-12% due to weak domestic growth and price erosion in gAbilify. However, the Brazilian business rebounded strongly with a 21%YoY growth – the highest in last 2-3 years. Also, the US base business (ex-gAbilify) posted low double-digit growth

4/08/2016 3:49:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy NIIT Ltd For Target Rs.104.00 - Kotak Sec

NIIT's 1QFY17 performance beat our estimates, both on the revenue and margins front. Revenues grew by double-digits YoY (12%) for the first time in past 16 quarters and margins improved 150bps YoY. While CLS revenues continued to grow at a strong rate of 13% YoY in CC terms, S&C reported an above-expected growth of 6.6% on a YoY basis. S&C revenues had grown by 5.2% YoY in 4QFY16. M

4/08/2016 3:43:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Asian Paints Ltd For Target Rs.1,031.00 - Reliance sec

Asian Paints reported stellar set of numbers in 1QFY17 with its consolidated revenues growing by 9% yoy to Rs35.9bn and net profit rising by 18.5% yoy to Rs5.5bn. In our view, volume growth of ~12% for the quarter is impressive considering the current consumer demand environment. However, while we expect 13.3% revenue and 19.8% earnings CAGR through FY16-18E, the valuations have turned prohibit

4/08/2016 3:36:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy JSW Steel Ltd For Target Rs.1,929.00 - Emkay

Stellar performance!!

* Stellar performance. Consolidated revenue came in at Rs 128.86 bn (+2% YoY/+10% QoQ), higher than our estimate. Blended realization stood at Rs 35992/ tn, (flat YoY/+11% QoQ). Volume grew by 7.5% YoY and 1.8% QoQ to 3.34 supported by exports

* Standalone EBITDA/ tonne rose 72% YoY 57% to Rs 9276, sharply higher than es

4/08/2016 1:09:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell United Spirits Ltd For Target Rs.2,400.00 - RCML

Heady expectations

UNSP’s Q1FY17 net sales grew 9.7% YoY to Rs 20.3bn led by direct sales of Diageo brands, which contributed 12% to Prestige and Above (P&A) sales growth. Volumes were flattish YoY as 11% growth in the P&A segment was offset by a 7% decline in the Popular category. UNSP reported an adj. EBITDA margin (ex-one-offs) of 10.

4/08/2016 12:59:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Dish TV India Ltd For Target Rs.110.00 - Kotak Sec

Although Dish TV has missed our profit estimates in the quarter, the same is largely a result of discretionary spends that shall be contained in the coming quarters. Leaving our key assumptions/ estimates unchanged, we account for lower license fees in the annual estimates and raise our EPS estimates 4%. Dish TV is potentially positively exposed to changes in regulation (GST, interconnect agree

4/08/2016 12:51:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Rallis India Ltd - Angel Broking

For 1QFY2017, Rallis India (Rallis) reported a yoy growth of 7.2% in sales to `445cr (V/s `415cr in 1QFY2016). On the operating front, the gross margin came in at 45.4% (V/s 44.8% in 1QFY2016), which along with sales growth aided the OPM to come in at 15.8% (V/s 13.5% in 1QFY2016). Aided by sales growth, a good operating performance and surge in other income (`7cr V/s `5cr in 1QFY2016), the Adj

4/08/2016 12:45:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Canara Bank Ltd For Target Rs.240.00 - Motilal Oswal

We ak core operating performance continues; NSL increases 40bp QoQ

* Canara Bank (CBK) reported a 41% PAT miss, led by weak core PPoP growth (- 59% YoY) and elevated credit costs (1.8%), partly offset by high trading gains (186% of PBT).

 

* Gross slippages moderated to INR38.8b (4.8% of loans, annualized) vs. INR146b (17.7%)

4/08/2016 12:38:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy L&T Finance Holdings Ltd For Target Rs.89.00 - Prabhudas

L&T Finance Holdings (LTFH) reported modest ~8% YoY growth in adjusted net profits at Rs2.07bn (PLe: Rs2.17 bn) on back of slightly higher credit cost from farm & infra business. NII growth stood at 15% YoY (PLe: 8.32) as loan growth of 19% YoY remained robust. Loan growth was led by microfinance, housing & renewable in respective businesses. LTFH has moved to 120dpd from 150dpd and

4/08/2016 12:27:11 PM | Posted in Broking Firm Views - Long Term Report read full news