Accumulate Thermax Ltd For Target Rs.1,018.00 - Prabhudas Lilladher

We recently met the Management of Thermax (TMX) and our key takeaways are:

1) The general enquiry levels from the domestic market were better YoY, both in standard project and medium project business.

2) The sectors in domestic market enjoying good enquiry levels are Textile/Light chemical/Food and food processing/Fertilizer/Steel/Cement/Hospitality largely

21/09/2017 3:49:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy KEC International Ltd For Target Rs.375.00 - Equirus Sec

KEC International (KECI), a global power T&D leader, has diversified its EPC presence by foraying into high-growth verticals such as railways, solar, civil and cables. Its legacy strength in T&D along with government thrust on transmission, railways and solar energy should create a plethora of opportunities over the next few years. We think KECI is well-placed due to its steady executio

21/09/2017 3:46:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Page Industries Ltd For Target Rs.16,502.00 - Emkay

Maintaining legacy growth rates; Retain HOLD

* Result broadly in-line - Revenue stood at Rs 6.9bn, up 22.5% yoy, EBIDTA margins improved by 40bps yoy to 19.6% & APAT stood at Rs 853mn, up 25.5% yoy

* Clocked overall volume growth of 13.4% yoy versus our estimate of 12%. Men’s wear/Women’s wear/Sportswear reported volume growth

21/09/2017 3:40:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Kalpataru Power Transmission Ltd For Target Rs.407.00 - Sharekhan

Key points

* Revenue growth disrupted due to GST impact, Profitability expands:

KPTL’s standalone net sales grew marginally by 1.4% YoY to Rs1,170 crores with revenue from domestic T&D segment witnessing negative growth of 3% disrupted by GST implementation. . Both Railways and Pipeline business gr

21/09/2017 3:33:32 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Endurance Technologies Ltd For Target Rs.1,059.00 - Motilal Oswal

Consolidated performance in-line

* India business drives consolidated performance: Consolidated net sales grew 7.6% YoY to INR15.5b (our estimate: INR15.8b), led by India business. Consolidated EBITDA margin expanded 80bp YoY (flat QoQ) to 13.8% (our estimate: 13.7%), led by internal cost control initiatives and ramp-up in supplies to

21/09/2017 3:30:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy KNR Constructions Ltd For Target Rs.236.00 - Kotak Sec

KNR Constructions is focusing on growing its order book by adding new projects in road and irrigation space. The company has strong bid pipeline in road sector from Hybrid Annuity Model (HAM) based projects in south India. The company targets to add Rs 20-25 bn per annum of new orders in FY18E and FY19E. It is well placed/L1 in ~Rs 16 bn of new projects in road and irrigation space which would

21/09/2017 3:26:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shriram City Union Finance Ltd For Target Rs.2,800.00 - Motilal Oswal

Sluggish quarter; quantum of write-offs inching up

* Shriram City Union Finance’s (SCUF) 1QFY18 PAT increased 7% YoY to INR1.9b. Operating profit was up 20% YoY (in line), driven by strong loan growth and controlled opex. However, sharp increase in provisions (higher write-offs) drove moderate profit growth.

* After strong performance

21/09/2017 3:23:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sadbhav Engineering Ltd For Target Rs.381.00 - IIFL

Sadbhav Engineering Ltd (SEL), an established infrastructure player, has presence across Roads, Mining and Irrigation segments. The Company has witnessed order inflows of Rs.47 bn during last three quarters and is currently sitting on an order book of Rs.84 bn (~2.5x FY17 revenues), providing strong revenue visibility. During last few years, SEL refrained from bidding for orders during industry

21/09/2017 3:19:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral National Aluminium Company Ltd For Target Rs.63.00 - Motilal Oswal

Volumes suffer ahead of GST rollout

Higher wages, electricity duty eroding raw material cost advantage

Nalco’s 1QFY18 performance disappointed, with EBITDA of INR2.3b (+17% YoY/ -47% QoQ) coming in below estimate of INR3.6b due to lower sales volume on inventory build-up ahead of GST rollout and weaker alumina realizat

20/09/2017 3:46:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Heritage Foods Ltd For Target Rs.1,325.00 - Emkay

Reliance dairy synergy key trackable; Retain Accumulate

* Revenue strong but margins subdued - Revenue grew by 32% yoy to Rs6.2bn aided by healthy growth (16.2% yoy) in erstwhile Heritage business and Reliance dairy acquisition, EBITDA at Rs269mn (-33.3% yoy) and APAT at Rs103mn (-57.4% yoy)

* Dairy segment grew at 32.2% yoy with milk pr

20/09/2017 3:39:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Sun Pharmaceutical Industries Ltd For Target Rs.472.00 - Equirus Sec

Sun Pharmaceutical’s (SUNP) FY17 Annual Report emphasizes the company’s efforts on building its specialty pipeline; while this is encouraging, SUNP’s high initial investments (development costs, sales force build-up) would keep its near-term earnings muted. Meanwhile, management commentary suggests no medium-term respite from competitive pressures in the US. We retain REDUCE o

20/09/2017 3:32:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Gujarat Pipavav Port Ltd For Target Rs.155.00 - Emkay

Steady performance

* Gujarat Pipavav Port Ltd.’s (GPPV) Q1FY18 performance was above expectations on the realizations front driven by higher fertilizer volume leading to overall net profit beat; however container volumes continue to remain a concern

* Overall port volumes declined 3.1% YoY, container volumes declined 3.8% YoY, bulk volu

20/09/2017 3:24:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Bank of India Ltd For Target Rs.149.00 - Motilal Oswal

Operating performance disappoints on all fronts

* BOI’s reported PAT of INR877m was 71% below estimate, even as PPoP exceeded estimate by 12% (helped by strong treasury gains and one-off opex benefits), as provisions at INR22.45b were 36% above estimates. Provisions included INR132.3m toward stressed sectors. The bank has to provide additional I

20/09/2017 3:19:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy CESC Ltd For Target Rs.1,030.00 - Sharekhan

Key points

* Improved revenue due to volume growth; higher power purchase impacted margins:

During Q1FY2018, CESC’s total revenue grew by 4% YoY to Rs.1,990 crore (post deduction of regulatory expenses worth Rs.194 crore), driven by volume growth. Volumes stood at 2853MU, growth of 3% YoY; while realis

20/09/2017 2:59:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Marico Ltd For Target Rs.355.00 - Motilal Oswal

Domestic volumes down 9%, performance affected by pipeline issues

* MRCO’s consol. net sales declined 4% YoY (est. of flat sales) to INR16.8b. Domestic volumes declined by 9% YoY (est. of -3%) and revenues by 4% YoY. International revenue grew 6% YoY on constant currency (CC) basis, with 1% overall sales decline. Rural sales fel

20/09/2017 2:52:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bombay Burmah Trading Corporation Ltd For Target Rs.1,486.00 - Kotak Sec

The stock price of Bombay Burmah Trading Corporation Limited (BBTC) in Friday’s trade breached our short term target price of Rs.1,130 to close at Rs.1,239. Though the stock has moved up by 41% from our initiation price within a short span of time, we continue to recommend a BUY on the stock with another 6 to 12 months investment perspective with a revised target price of Rs.1,486/-.

20/09/2017 2:45:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Time Technoplast Ltd For Target Rs.304.00 - Ventura Sec

Time Technoplast Ltd (TTL) has emerged as a clear winner in the packaging space after having perfected its business model to iron out all deficiencies that it used to face earlier. In a short span of 10 years, it has scaled its business to become a multinational conglomerate with market leadership in 8 countries. All its segments have witnessed high growth with products like composite cylinders

19/09/2017 2:54:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Oil India Ltd For Target Rs.300.00 - Sharekhan

Key points

* Operating profit beats estimate on account of lower than expected operating expenses:

At Rs874 crore (+1.3% YoY; +30.2% QoQ), Oil India’s (OIL) Q1FY2018 operating profit was 38% above our estimate of Rs633 crore due to lower than expected operating expenses (down 20.8% QoQ). On the operati

19/09/2017 2:49:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Advanced Enzyme Technologies Ltd - SPA Sec

Advanced Enzymes (AETL) is a market leader in the manufacturing of enzymes. Company provides solutions to a wide variety of industries like human health care/nutrition, animal nutrition, food/non-food processing etc. It is engaged in R&D, manufacturing and marketing of more than 400 proprietary enzyme products developed from 60 indigenous enzymes. Company has 700+ customers across the globe

19/09/2017 2:44:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Muthoot Finance Ltd For Target Rs.550.00 - Motilal Oswal

Strong quarter; operating leverage benefits playing out

* Muthoot Finance’s (MUTH) 1QFY18 PAT grew 30% YoY (and 9% QoQ) to INR3.51b (in-line). Though there was a 5% revenue miss, it was offset by lower-than-expected provisioning.

* AUM growth remained anemic at 8% YoY (2% QoQ) to INR278b. The management has guided ~10% AUM growth in go

19/09/2017 2:38:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Communications Ltd For Target Rs.822.00 - Religare Sec

Turning the corner

It’s portfolio includes transmission, IP, converged voice, mobility, managed network connectivity, hosted data centre, communications solutions and business transformation services to global and Indian enterprises & service providers, as well as broadband and content services to Indian consumers. Its services portfolio incl

19/09/2017 2:34:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Electronics Ltd For Target Rs.210.00 - Motilal Oswal

Robust execution leads to better than expected performance

* 1QFY18 operational results ahead of estimates: BHE reported revenue of INR17.2b (+98% YoY; our estimate: INR12b) and operating profit of INR1.6b (v/s loss of INR0.5b in 1QFY17; our estimate: loss of INR0.2b). Net profit rose 247% YoY to INR1.3b. Exports were USD4.4m (INR286m

19/09/2017 2:30:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Berger Paints India Ltd For Target Rs.255.00 - Emkay

Steady performance amid challenges; Retain Hold

* Consolidated revenue at Rs12.5bn, up 11.5% yoy; EBITDA down 5.1% yoy to Rs1.9bn; EBITDA margin at 14.8% (-260bps yoy); APAT at Rs1.1bn, down 6.5% yoy

* Decorative volume growth at ~6% led by distribution expansion and healthy growth in advertised products. General and Automotive business repor

19/09/2017 2:26:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Venkys India Ltd For Target Rs.2,650.00 - Kotak Sec

Following some weakness in July/ early August, poultry prices have picked up significantly over the last one month. In the one month ending 15th Sep, broiler prices were, on average ~30% higher (y/y). Along with continued weakness in key raw material prices, these trends augur well for near-term earnings, and provide greater visibility on FY18 earnings (2HFY18 has a favorable base, due to demon

19/09/2017 2:22:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate OCL India Ltd For Target Rs.1,317.00 - Emkay

Good operating performance continues

* OCL India reported better-than-estimated Q1FY18 results, with EBITDA of Rs2bn against estimated Rs1.8bn, led by: a) lower loss in Refractories segment (derived EBITDA loss at Rs23mn vs. estimated Rs150mn, and b) 3% beat in Cement segment’s EBITDA.

* Sales volume was up 3.2% yoy at 1.6mt. Realizatio

18/09/2017 4:01:04 PM | Posted in Broking Firm Views - Long Term Report read full news