Neutral On Bank Of Baroda Ltd - Angel

Performance Highlights

BoB’s 3QFY17 results remained disappointing. The bank continues to face headwinds on asset quality on one hand, while on the other hand the balance sheet continued to de-grow as the management intentionally downsized some low margin business. Coming few quarters might be challenging for the bank.

 

18/02/2017 11:36:16 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce eClerx Services Ltd For Target Rs.1,315.00 - Reliance Sec

Disastrous Performance on All Counts

eClerx Services (eClerx) has delivered a disastrous performance in 3QFY17 with below par numbers on all key parameters. Revenue declined by 3.5% QoQ in USD terms (-2.6% QoQ in CC terms) to $47.2mn (4.4% below our estimate). EBIT margin nosedived by 620bps QoQ (643bps below our estimate), which resulted in 11.5% QoQ

17/02/2017 3:29:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apar Industries Ltd For Target Rs.762.00 - Emkay

* Apar reported a strong Q3FY17 earning growth which were above our estimate. While revenues declined 4.6% YoY to Rs 11.3bn; EBITDA went up 26.4% YoY to Rs 1.06bn and APAT increased 54.4% YoY to Rs 433mn

*Revenue declined across the conductors on account of processing of conductors for some parties (-12.5% YoY to Rs5.1 bn) and Speciality oil business due to lower realization (-11.7% Y

17/02/2017 3:22:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Info Edge (India) Ltd For Target Rs.950.00 - Sharekhan

Key points

* Weak performance affected by demonetisation: For Q3FY2017, Info Edge (India) has delivered a weak set of numbers, owing to the government’s demonetisation measure. For the quarter, revenue grew by 5.8% YoY to Rs186 crore due to a modest growth in the core Recruitment business (up by 8.6% YoY to Rs140.

17/02/2017 3:12:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ramco Cements Ltd For Target Rs.723.00 - Karvy

Strong volume growth leads to better performance

Ramco Cements Q3FY17 EBITDA of Rs 2.62 bn (+7% YoY) came marginally lower than expected on account of lower than expected margins. Though volume growth of 22% YoY was better than expectation of 13% YoY, realisation came a tad lower with ~2% QoQ decline. EBITDA/ton stood at Rs 1319/t, declined by 12% YoY

17/02/2017 3:00:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral ACC Ltd For Target Rs.1,339.00 - Motilal Oswal

Weak volumes, coupled with higher cost, impact profit

*Sharp volumes decline: 4QCY16 volumes declined 9% YoY to 5.45mt (est. of 5.48mt) due to the impact of demonetization, particularly in non-south regions. Cement realization of INR4,377/t (+1% YoY, flat QoQ) came in better than our estimate of INR4,285/t. The company

17/02/2017 2:53:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Punjab National Bank Ltd For Target Rs.147.00 - Reliance Sec

Punjab National Bank

Asset Quality Pressure Recedes; Reiterate HOLD

Punjab National Bank (PNB) has delivered improved performance on asset quality front in 3QFY17 with fresh slippages declining to Rs56.6bn from Rs62.1bn and Rs92.1bn in 2QFY17 and 1QFY17, respectively. Further, its PCR improved to 55% in 3QFY17

17/02/2017 2:40:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Alkem Laboratories Ltd For Target Rs.1,996.00 - Angel

Alkem Laboratories

Domestic business remains strong, US business shows strong growth:

Alkem reported revenue grew of 15% yoy in 3QFY17. Domestic revenue grew by 16.8% yoy to `1,030cr while exports grew by 18.7% to `432cr. US revenue grew by 30% yoy to `339cr. Other exports de-grew by 9.8% yoy as company contin

17/02/2017 2:32:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Coal India Ltd For Target Rs.300.00 - Emkay

Coal India’s January’17 both production and dispatch rose by 6% YoY

*For January’17, dispatch stood at 51 mt (+6%/-0.2% YoY/MoM). This was 92% of the target for the month. On a per day basis January’17 dispatch rose by 3% MoM to 1.66 mt. Offtake at ECL & MCL fell considerably by 12% and 3% YoY respectively.

* YT

17/02/2017 2:22:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Dr. Reddy`s Laboratories Ltd For Target Rs.3,100.00 - Reliance Sec

Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories (DRRD) has topped our estimates in 3QFY17. EBITDA margin strongly improved by 5.9% QoQ led by a) better product-mix, b) seasonality in CIS, c) cost control measures, d) higher realization from biosimilar business, and e) favourable currency movement in Emerging Markets (EMs). This is despite

16/02/2017 3:12:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ITC Ltd For Target Rs.280.00 - RCML

ITC

6% excise hike manageable; GST a new goalpost

In its Union Budget today, the government announced a weighted average excise duty hike of ~6% on cigarettes (same across lengths). Unlike the last few years, we think this increase is rational and in line with nominal inflation growth. This along with ITC&rsqu

16/02/2017 2:58:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Granules India Ltd For Target Rs.152.00 - Emkay

Granules India

Result highlights

*Re-inspection of Gagillapur by Portugal regulator Inframed shortly likely to limit any revenue loss from stoppage of supplies to Europe

* Capacity constraints which have dragged growth likely to be resolved with new API capacities expected to come on stream by mid FY

16/02/2017 2:43:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy JK Lakshmi Cement Ltd For Target Rs.471.00 - Karvy

Lower costs led margin improvement

Q3FY17 operational performance was better than estimates. EBITDA came at Rs 827mn (vs. our estimate of Rs 520mn) led by better volumes and lower operating cost/ton. Volume growth of 4% YoY (led by East operations) was significantly better than estimate of ~7% de-growth. Margins were also better than estimates (EBITDA/

16/02/2017 2:29:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell BHEL Ltd For Target Rs.115.00 - Motilal Oswal

BHEL

Results beat, but weak execution and order pipeline warrant Sell

3QFY17 performance above estimates: Sales increased 18.7% YoY to INR63.2b, exceeding our estimate INR60.5b. Power segment sales grew by 18% YoY to INR50.9b and Industry segment sales by 20% YoY to INR13.7b. Improved pace of execution was dri

16/02/2017 1:20:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Marico Ltd For Target Rs.270.00 - Reliance Sec

Marico

Volumes under Pressure; Stock Fairly Priced

Marico has reported mixed results in 2QFY17 with its consolidated revenues falling by 0.9% yoy to Rs14.4bn, while PAT rose by 18.1% yoy to Rs1.8bn. While volume grew by 3.5% yoy, flagship brand Parachute’s volume dipped by sharp 6% yoy. Trimming down our

16/02/2017 1:01:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold JSW Steel Ltd For Target Rs. 213.00 - Emkay

JSW Steel

Better than expected performance

* Standalone topline stood at Rs 153 bn, up 60% YoY and 6% QoQ backed by positive surprise in realization at Rs 40,063/tn as revenues from gas sales contributed Rs 4 bn. Saleable steel sales came in at 3.64 mt (+22% YTD) in line with our estimate.

*Standalon

16/02/2017 11:59:57 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sanghi Industries Ltd For Target Rs.79.00 - Emkay

Momentary blip; valuations attractive

* Sanghi industries (SNGI) Q3 result missed our estimates due to lower-than-estimated realization of Rs3,239/tn (estimated: Rs3,486/tn). The company reported EBITDA of Rs424mn against estimated Rs573mn and EBITDA/tn of Rs504 against estimated Rs686

* Sales volume of Cement & Clinker was up 20% YoY to

15/02/2017 12:29:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Gujarat State Fertilizers and Chemicals Ltd For Target Rs.105.00 - SPA Sec

GSFC reported a dismal performance as volume decreased by ~17% yoy. Topline and PAT declined by 30% and 41% YoY to INR 11503mn and 612mn respectively. EBITDAM contracted by ~350 bps yoy to ~8%. Company has decided to shift to NPK and reduce focus on DAP which is positive for fertilizer segment. Capro-Benzene spread above $1000/ton and commissioning of Nylon plant are positives for industrial se

15/02/2017 12:23:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Emami Ltd For Target Rs.1,300.00 - Sharekhan

Key points

* Revenue flat; margin expansion persists:

Emami’s Q3FY2017 revenue stood flat at Rs725.2 crore, with the domestic business revenue growing by 3% YoY (driven by flat sales volumes), while the international business revenue de-grew by 16% YoY (affected by a substantial decline in MENAP revenue

15/02/2017 12:13:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Shriram City Union Finance Ltd For Target Rs.2,220.00 - Emkay

Near term outlook remains uncertain

* Shriram City Union Finance (SCUF) delivered stable operating performance in Q3 on the back of 23% yoy growth in non-gold AUMs and largely stable margins; however, higher provisioning on NPLS led by demonetization affected earnings growth

* Disbursements fell 8% qoq (+10% yoy) at Rs51.5bn on the back of sl

15/02/2017 12:04:24 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hero MotoCorp Ltd For Target Rs.3,700.00 - Karvy

Hero MotoCorp’s overall volume declined by 12.8% YoY and 19.2% QoQ to 1,473,548 units in Q3FY17. Its domestic volume declined by 12.7% YoY to 1,430,569 units, while exports declined by 16% YoY to 42,979 units in the quarter. We expect the Company to report a decline of 10.5% YoY and 16.2% QoQ in top-line at Rs 65bn. We expect company’s operating margins to decrease by 103 bps YoY an

15/02/2017 11:56:09 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindalco Industries Ltd For Target Rs.230.00 - Motilal Oswal

Novelis: FY17 FCF guidance raised to USD350m

Margin outlook stable despite headwinds in Cans; Maintain Buy

Novelis’ 3QFY17 adj. EBITDA (adj. for metal price lag) increased 7% YoY to USD255m (below est. of USD273m) led by operating efficiency and favorable currency benefit, partly offset by lower volumes

15/02/2017 11:47:02 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bharat Heavy Electricals Ltd For Target Rs.170.00 - India Nivesh

BHEL’s Q3FY17 operating performance was above our expectations. Q3FY17 revenue grew 18.7% YoY to Rs 63.2bn, which was a tad higher than our estimate of Rs 62.3bn. This was the fourth successive quarter of strong revenue growth after fourteen consecutive quarters of revenue de‐growth. EBITDA margin improved to 3.5% from ‐30.3% YoY against our estimate of 1.9%, mainly due to 65.2% YoY d

15/02/2017 11:41:39 AM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Kaveri Seed Company Ltd - Sharekhan

Key points

* Disappointing quarter:

Kaveri Seed Company (KSCL) reported a weak set of numbers for Q3FY2017, with the topline down by 2.7% YoY to Rs67.9 crore, as Maize performance was affected by lower acreage in Bihar and coastal Andhra Pradesh. EBITDA margin shrunk by 1,829BPS from 23.3% to 5%, mainly due

14/02/2017 11:59:27 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,535.00 – Motilal Oswal

IB/BHAFIN merger – Win-win for both

Better profitability – strong market share gain

The Economic Times, in its article published last week, reported that IndusInd Bank (IIB) and Bharat Financial Inclusion (BHAFIN) are in talks to explore a merger opportunity. In this note, we present a short summar

14/02/2017 11:55:19 AM | Posted in Broking Firm Views - Long Term Report read full news