Neutral United Spirits Ltd For Target Rs.2,525.00 - Motilal Oswal

Highway alcohol sale ban to impact volumes over coming quarters

* UNSP’s standalone revenue declined 12.7% YoY (est. flat) to INR17.8b in 1QFY18, with volumes down 18.9% YoY (est. of -9%). According to management, adjusted for operating model changes, sales were down 7% YoY. Trade down-stocking in anticipation of highway ban also impacted sales

1/08/2017 3:32:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold HDFC Bank Ltd For Target Rs.1,874.00 - Arihant Capital

HDFC Bank reported steady set of numbers. Interest Income increased by 13% YoY to Rs. 18,669 cr, while on QoQ basis it increased by 3%. Interest Expenses increased by 6% YoY, while on QoQ basis it increased by 3% to Rs. 9,298 cr. Net Interest Income increased by 20% on YoY basis and 3% on QoQ basis to Rs. 9371 cr. Reported Net Interest Margin increased to 4.4 vs 4.3 on QoQ basis.

Non-

1/08/2017 3:27:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Vedanta Ltd For Target Rs.313.00 - Emkay

Weaker performance; improvement likely ahead!

* Revenue stood at Rs 193.4 bn, up 26% YoY but down 18% QoQ. Pot outage at Jharsuguda, shut down at copper smelter, fire at TSPL and weaker iron ore offtake were the reasons behind QoQ fall; YoY improvement is due to new projects and better LME

* EBITDA at Rs 48.7 bn (+42%/-34% YoY/QoQ) came lower

1/08/2017 3:19:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Crisil Ltd For Target Rs.2,419.00 - Religare Sec

BUY Short-term hiccups…

Crisil reported a growth of 8.6% YoY in its consolidated revenue backed by a growth of 9.2%/5.7% in the research/rating segments. Operating Profit grew 15.4% YoY with improved operating margins of 25.7%, up 154 bps YoY. PAT grew 9.3% YoY to Rs 67.3cr. Company reported an adverse forex impact of Rs 2.1cr for the quarter (R

1/08/2017 3:13:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bajaj Auto Ltd For Target Rs.3,151.00 - Angel Broking

Results below estimates on weak sales: Bajaj Auto reported weak Q1 result due to lower volumes sold in the quarter and higher RM cost. Revenue and EBITDA were 1.5% and 13% below the consensus estimates respectively. Though PAT beat the street estimates by 2%, this was due to 71% jump in the other income (dividend by KTM). Net sales and PAT declined by 5% (yoy) and 6% (yoy) resp

1/08/2017 3:05:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki Ltd For Target Rs.8,863.00 - Motilal Oswal

In-line; EBIT margin impacted by pre-GST expenses

* EBIT margin hit by pre-GST expense: Net sales grew ~17% YoY to INR175.5b (est. of INR175.4b), driven by 13% growth in volumes and 4% increase in realizations to INR445k (in-line). EBITDA margin shrunk 150bp YoY (-130bp QoQ) to 13.3% (est. of 13.8%), dragged by pre-GST expenses (50bp

1/08/2017 3:01:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Navin Fluorine International Ltd For Target Rs.648.00 - Emkay

CRAMS drives performance; maintain ACCUMULATE

* NFIL Q1FY18 results were ahead of our and street estimates on all fronts mainly on account of incremental revenue from the CRAMS segment (up 278% yoy). Refrigerant, Specialty & Inorganic segments grew by 10% yoy, 2% yoy and 7% yoy, respectively.

* In Q1FY18 NFIL reported Sales / EBITDA growt

1/08/2017 2:57:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Blue Dart Express Ltd For Target Rs.5,150.00 - Kotak Sec

Weak business environment (esp. B2B segment), poor off-take of volumes by corporates and retail customers in the month of June 2017 before implementation of GST and competition were the factors responsible for weak performance of BDE in Q1FY18. However, improved outlook, a fresh strategy under the observation of Mckinsey, implementation of GST, and benign fuel cost are expected to keep the grow

1/08/2017 2:52:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Supreme Industries Ltd For Target Rs.1,012.00 - Equirus Sec

Supreme Industries (SIL) reported a 5% yoy decline in volumes and a 2% yoy drop in revenues (on a low base) due to pre-GST destocking and tepid pipe, packaging and consumer volumes. A correction in PVC prices and an 11% yoy decline in value-added products led to a ~330bps margin contraction to 13.7% and a 22%/26% yoy decline in EBITDA/PAT. Management has guided to FY18 volume growth of 12% (vs.

1/08/2017 2:48:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HCL Technologies Ltd For Target Rs.1,030.00 - Reliance Se

Another Good Quarter, Guidance Maintained

HCL Technologies (HCLT) has delivered a healthy performance in 1QFY18 with USD revenue growing by 3.7% QoQ (2.6% QoQ in CC terms) to US$1,884mn, marginally ahead of our estimate of US$1,873mn. Aided by revenue growth and slightly improved utilisation, its EBIT margin beat our estimate by 77bps. Maintaining CC r

1/08/2017 2:42:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Gulf Oil Lubricants India Ltd - Sharekhan

Key points

* Strong Q1; retain positive stance despite run up:

The strong performance of Gulf Oil Lubricants India (GOLI) in Q1FY2018 has reinforced our positive stance on the stock. We had recommended the stock at Rs787 on June 19, 2017 on the back of falling crude prices, the focus of the company on improv

1/08/2017 2:38:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ambuja Cements Ltd For Target Rs.308.00 - Motilal Oswal

Sharp pricing improvement drives multi-year-high EBITDA/t

* Moderate volume growth: 2QCY17 standalone revenue of INR28.23b (+12% YoY) came in only marginally below our estimate of INR28.49b, led by strong realization improvement to INR4,651 (+7.6% YoY, +10.5% QoQ; largely in line with est. of INR4,663) on sharp price increases in the

1/08/2017 2:29:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Federal Bank Ltd For Target Rs.124.00 - Arihant Capital

For the quarter ended Q1 FY18 Federal bank reported steady profitability. The net profit stood at Rs 210 cr vs. Rs 167 cr in the corresponding quarter of the previous year and Rs 256 cr in the sequential quarter.

 

NII:

The bank’s top-line performance was up as net interest income increased by 16% to Rs 801 crs compared

1/08/2017 2:25:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Developers Ltd For Target Rs.283.00 - Emkay

EPC revenues drives profit

Result highlights

* IRB reported Q1FY18 consolidated revenue of Rs18.2bn that was 19% above our estimate of Rs15.3bn owing largely to strong EPC revenue of Rs13.6bn (up 45% YoY) vs. our estimate of 10% YoY EPC revenue growth.

* Post the INViT listing in Q1FY18, IRB has rec

1/08/2017 2:21:01 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold HCL Technologies Ltd For Target Rs.930.00 - Emkay

Weak commentary in IMS evinces detrimental longer term prospects

* HCLT registered strong revenue growth of 2.6% qoq in CC terms, led by balanced traction in both organic as well as inorganic factors. It signed 13 large transformation deals in the quarter and achieved 6% productivity gains in Q1FY18 on LTM basis.

* Commentary pertaining to th

31/07/2017 3:57:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy DB Corp Ltd For Target Rs.480.00 - Equirus Sec

DB Corp (DBCL) reported 1QFY18 revenues of Rs 5.9bn (+3% yoy and 3% below EE). Print advertising grew by 5% yoy, posting a decent performance given GST uncertainties and a high base of last year (20% growth). Going forward, comps are set to get easier and we estimate advertising growth to accelerate in 2HFY18. Circulation growth will be driven by volumes as no cover price hike is expected in FY

31/07/2017 3:35:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Indian Bank Ltd For Target Rs.341.00 - Reliance Se

Strong Operating Performance Continues

Indian Bank has delivered a healthy operating performance in 1QFY18. Its operating profit surged by 38.7% YoY and 17% QoQ to Rs12.5bn led by strong growth in NII (18.1% YoY & 5.4% QoQ to Rs14.6bn) and relatively lower opex (10.9% YoY and -4.6% QoQ) of Rs8.6bn. Resultantly, the Bank’s net profit grew by 2

31/07/2017 3:10:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Divis Laboratories Ltd - Sharekhan

Key points

* Lower-than-expected Q1FY2018 performance:

During Q1FY2018, Divis Laboratories Limited (Divis) reported a 19.3% YoY decline in its net sales to Rs.821.2 crore. Operating profit declined by 39.4% to Rs.244.8 crore. Operating profit margin (OPM) declined by 988BPS to 29.8%. Adjusted profit for the q

31/07/2017 2:57:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.630.00 - Motilal Oswal

Ad performance in-line; subscription surprises positively

* Operational performance exceeds expectations: 1QFY18 EBITDA grew 7% YoY to INR4.84b (3.5% above estimate of INR4.68b). Revenue exceeded our expectation, led by better-than-expected subscription income and other sales & services. While revenue declined 2% YoY, it was up 10

31/07/2017 12:31:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Yes Bank Ltd For Target Rs.2,013.00 - Arihant Capital

Total Advances grew by 32% to Rs 1,39,972 crore as at Q1 FY18. Corporate banking accounted for 68.1% of the Advances portfolio while Retail & Business Banking constituted 31.9% due to increase in consumer banking and business banking. Total Deposits grew by 22.6% to Rs 1,50,241 crore. The CASA deposits grew by 52.2% y-o-y to Rs 55,215 crore taking up the CASA ratio to 36.8% up from 29.6% in

31/07/2017 12:18:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hero Motocorp Ltd For Target Rs.4,230.00 - Emkay

Operationally strong quarter; Maintain BUY

Result highlights

* Hero MotoCorp’s 1QFY18 operating performance was above our and consensus estimates; EBITDA margin for the quarter stood at 16.3% (+250bp QoQ) vs our and consensus estimates of 15.3%/15.9% primarily on account of lower RM cost.

* Net

31/07/2017 12:10:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Zee Entertainment Enterprises Ltd For Target Rs.506.00 - Kotak Sec

ZEEL has reported in-line operating financials for 1QFY18. Results were on expected lines, affected adversely by GST rollout. Weakness in advertising revenues is likely to spill-over to an extent into 2QFY18 as well. Recent improvement in the ratings of the flagship channel (Zee TV) has led to an appreciation in the stock – we raise our price target to Rs 506 (Rs 470 earlier) in recogniti

29/07/2017 2:05:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Wipro Ltd For Target Rs.265.00 - Equirus Sec

Wipro reported better than expected 1QFY18 earnings with IT services $ revenues growing 0.9% qoq to $ 1,972mn above our 0.5% qoq decline/$ 1,945mn estimate and its guided range (-2% to 0%). Consolidated EBITM grew 166bps qoq while IT services margins (16.8%) declined 80 bps qoq (after adjusting for one-off in 4Q) led by 1month impact of wage hikes and rupee. Though 2Q guidance (-0.5% to 1.5% qo

29/07/2017 2:02:01 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Nestle India Ltd For Target Rs.6,624.00 - Reliance Se

Good Performance Irrespective of GST Pangs

Nestlé India has reported a good set of numbers for 2QCY17 in spite of trade pipeline correction in June prior to GST roll-out. While net sales increased by 6.9% YoY to Rs23.9bn (vs. our estimate of Rs22.8bn), EBITDA fell by 5.9% YoY to Rs4.6bn (vs. our estimate of Rs4.3bn). Net profit for the quarter p

29/07/2017 1:50:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Axis Bank Ltd For Target Rs.610.00 - Sharekhan

Key points

* Operating performance decent:

Axis Bank posted decent operating performance in Q1FY18. Net interest income (NII) was marginally up by 2.2% YoY on account of relatively moderate growth in advances and contraction in the net interest margin (NIM). The non-interest income was up by 9.6% YoY to Rs 29

29/07/2017 1:41:57 PM | Posted in Broking Firm Views - Long Term Report read full news