Positive On Aarti Industries Ltd - Sharekhan

Key points

* Strong foothold in Benzene-based products; increasing focus on downstream products:

Aarti Industries (AIL) is ranked in the top four globally for 75% of its product portfolio, with more than 50% of its revenue being derived from exports. With a strong foothold in Benzene-based value chain, globall

22/03/2017 3:15:51 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Divis Laboratories Ltd - Sharekhan

Key points

The event:

The US Food & Drug Administration (USFDA) has issued an import alert for Divis Laboratories’ Unit-2 at Visakhapatnam, Andhra Pradesh. The US regulator has exempted ten products of the company from the import alert (Levetiracetam, Gabapentin, Lamotrigine, Capecitabine, Naproxen

22/03/2017 12:30:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Emami Ltd For Target Rs.1,200.00 - Emaky

Focus on double digit volume growth; Maintain Buy

We had a conference call with Emami management to get recent updates on business and strategy for the company going ahead

* The impact of demonetization persist and demand still not back to pre-DeMon levels. Gradual improvement is witnessed but wholesale channel (50% of sales) has still not co

22/03/2017 12:23:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HCL Technologies Ltd For Target Rs.965.00 - Sharekhan

Key points

To return ~27% of cash to investors through buyback:

The Board of Directors of HCL Technologies (HCL Tech) at its meeting held on March 20, 2017, approved the buyback of up to 3.5 crore equity shares (2.48% of outstanding equity capital after the allotment of shares to the shareholders of Geometric

22/03/2017 12:15:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Divis Laboratories Ltd For Target Rs.600.00 - RCML

Import alert shocker at Vizag; downgrade to HOLD

The USFDA has issued an import alert at DIVI’s Unit-II Vizag plant, albeit with some product exemptions. While this is better than a full import ban, we worry about the potential cascade of structural issues such as order cancellations, loss of customer confidence and rigorous inspections by other

22/03/2017 12:06:17 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Future Lifestyle Fashions Ltd For Target Rs.316.00 - Emkay

The Future is Bright

* Future Lifestyle Fashions Ltd. (FLFL) is a leading branded-fashion player in the country with a portfolio of over 25 brands. We expect FLFL's revenue to grow by 18% CAGR over FY16-19E

* Owned and licensed brands command higher gross margins and have outpaced third-party brands over the past two years. We expect impr

21/03/2017 4:08:12 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy City Union Bank Ltd For Target Rs.170.00 - LKP Sec

Incorporated in the year 1904, City Union Bank (CUB) is an old generation private sector bank headquartered in Tamil Nadu. A professionally managed bank with no identifiable promoters, CUB mainly caters to the retail/wholesale traders with a granular asset profile. With a workforce of 4,709 employees (Average age <30 years), CUB has a network of 528 branches and 1408 ATMs as on January 01, 2

21/03/2017 3:48:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On RBL Bank Ltd - Sharekhan

Key points

* Strategy of modernising bank with deeper customer engagement:

RBL Bank has been successful in transforming itself from a regional bank to a new-age private bank. We are also positive on its strategy of deeper customer engagement. Addressing funding needs by following strategies to engage clients m

21/03/2017 2:19:59 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Idea Cellular Ltd - Emkay

Betting on long term cost synergies, near term challenges to persist

* Idea Cellular and Vodafone India announced merger with equal rights in the combined entity. The merged entity would exclude Vodafone's 42% stake in Indus Towers while Idea’s 11.15% stake in Indus is part of the deal. Idea is valued at enterprise value of Rs722bn while Voda

21/03/2017 12:41:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold UltraTech Cement Ltd For Target Rs.4,240.00 - Sharekhan

Key points

Pan-India cement price hike at Rs15-30/bag MoM in March 2017 barring South; demand continues to be weak:

Our discussion with the cement dealers across India hints that cement prices increased by Rs15-30 per bag MoM in March 2017 across the country except South (where cement prices declined by ~Rs20

21/03/2017 12:34:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Idea Cellular Ltd For Target Rs.90.00 - RCML

Idea-Vodafone merger – A long road ahead

Idea and Vodafone have formally announced a merger, wherein implied valuations, synergy estimates and timelines are all largely in line with our expectations. While the merger is clearly a positive outcome for Idea as it gives the company scale and access to capital, we believe that defending market share

21/03/2017 12:25:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Greenply Industries Ltd For Target Rs.265.00 - RCML

Plywood expansion to boost earnings from FY20

* Plywood capacity to be expanded by ~40%:

Greenply Industries’ board has decided to expand the company’s plywood and allied product capacity by 13.5mn sqm to a total of 45.9mn sqm. This expansion is planned at a new facility in Hardoi, Uttar Pradesh, a

20/03/2017 3:13:37 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Kansai Nerolac Paints Ltd - Sharekhan

Key points

* Positives priced in the current valuation; book profit with a handsome gain of ~20%:

Since our initiation of viewpoint report on Kansai Nerolac Paints (KNPL) on June 21, 2016, the stock has delivered ~20% return and is currently trading at a premium valuation of 38x its FY2018E earnings. The curr

18/03/2017 12:16:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy VIP Industries Ltd For Target Rs.189.00 - LKP Sec

VIP Industries (VIP) has delivered a robust performance in 9MFY17 with a disproportionate ~ 21.3 % yoy rise in net profits despite a muted ~ 2.9 % growth in its operational revenues. While the company managed to augment its top-line at a steady ~ 7.7 % in Q3FY17 despite demonetization, the absence of the Haj institutional tender this fiscal that it won in Q2FY16 partly contributed to the flat y

18/03/2017 12:11:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Sundram Fasteners Ltd - Sharekhan

Key points

* Diversified product portfolio aids in providing strong growth visibility; SFL to outpace industry growth:

Sundram Fasteners (SFL) has substantially diversified its product portfolio over the past few years. The company has introduced new products, which include Engine Components, Pump Assemblies

18/03/2017 12:01:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Entertainment Network India Ltd - Motilal Oswal

Ad volumes from new stations to support growth

Potential of 300-400bp margin expansion in next 3-4 years

¢ Three-pronged strategy of price increase in existing stations, expansion in new Phase- III stations, and growth in non-FCT business should support growth.

¢ EBITDA breakeven of new sta

18/03/2017 11:55:46 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Tata Consultancy Services Ltd For Target Rs.2,420.00 - Emkay

Optimistic about demand trends; however awaits validation

* While remaining shy of sharing near term business outlook (Mar’17 quarter), Company continues to believe that macro improvement in US should translate into better client spending trends however it awaits more clarity on deal closures/signings during the month of Mar’17 to validate

17/03/2017 3:07:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Gateway DistriparksSharekhan

Key points

* Freight outlook for FY2018 to improve owing to railway action plan:

The Union Railway Ministry unveiled key freight-related initiatives on March 2, which highlights its action plan to bring back traffic lost in recent years to the road sector. The Railways is targeting 8.5% YoY growth in its freig

17/03/2017 3:00:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Mahindra CIE Ltd - Motilal Oswal

Focus on M&A for exponential growth

* Focus on consolidation and customer diversification:

After facing bottlenecks at its European operations and slowdown at its key India customers (TTMT and MM) over the past two years, MACA will now look to expand and consolidate its businesses. CY17E growth is likely t

17/03/2017 2:56:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On SP Apparels Ltd - Sharekhan

Key points

*Leading manufacturer/exporter of infant and children garments in India:

SP Apparels (SPAL) is one of the leading manufacturers and exporters of knitted garments for infants and children, providing end-to-end solutions from greige fabrics to finished products. Some of the company’s key strengt

17/03/2017 2:43:28 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Dr. Reddy's Laboratories Ltd - Motilal Oswal

DR REDDY’S LABORATORIES

Strong cash flow growth, earnings remain subdued

Dr. Reddy’s Laboratories’ (DRRD) FY16 annual report analysis highlights a muted 4% increase in consolidated operating revenue to INR154.7b (FY15: INR148.2b), primarily on account of (a) USFDA warning letter, which has de

17/03/2017 2:24:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Yes Bank Ltd For Target Rs.1,680.00 - Sharekhan

Key points

* Consistent performance; transformation into a universal bank augurs well:

Yes Bank is undergoing a transformation from a wholesale funded bank to more of a diversified bank, with an attractive retail franchise. During the last five years, Yes Bank has been able to maintain attractive return ratios

17/03/2017 2:15:31 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat State Petronet Ltd For Target Rs.210.00 - RCML

Robust volume outlook

We met the management of GUJS who indicated an improved outlook for gas demand in Gujarat. GUJS expects to sell higher volumes in FY18 (+3-5mmscmd) given stronger demand from RIL and OPAL units. But we see risks to volume growth post-FY18, once RIL’s petcoke gasification unit comes on-stream. A pipeline tariff hike is certai

17/03/2017 2:01:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors Ltd For Target Rs.653.00 - Motilal Oswal

JLR Feb-17 below est at 54,576 units (+4% YoY)

LR volume declines ~9%, while Jaguar grew ~57% driven by F-Pace and XE

* JLR Feb-17 wholesale volumes grew ~4.3% YoY (+12% MoM) to 54,576 units (estimate: 58,000 units), driven by F-pace and XE.

* Jaguar volumes grew ~57% YoY to 16,096 units (estimate: 16,500 units), dr

16/03/2017 3:24:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Idea Cellular Ltd For Target Rs.102.00 -  India Nivesh Sec

Good source of value unlocking

* As per media sources American Tower Corporation is looking to buy the assets of ICISL (Idea Cellular Infrastructure Services Ltd), a wholly owned subsidiary of Idea Cellular. Idea Cellular through a business transfer agreement has transferred all its towers (9722) to ICISL w.e.f. August 01, 2016. Although, Idea has decl

16/03/2017 3:20:20 PM | Posted in Broking Firm Views - Long Term Report read full news