Buy Coal India Ltd For Target Rs.335.00 - Motilal Oswal

October 2017: Dispatch growth remains strong

Domestic shortage driving e-auction prices

Dispatches grew ~12% YoY in October, likely to exceed full-year estimate

* Coal India’s (COAL) dispatch growth remains strong, as it grew 12.2% YoY to 48.3mt in October 2017

13/11/2017 3:16:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jammu And Kashmir Bank Ltd For Target Rs.100.00 - Motilal Oswal

Asset quality concerns easing; Upgrade to Buy

* JKBK reported PAT of INR716m in 2QFY18 (+1.37x QoQ on a low base), 14% above estimate, aided by strong revenue growth. PPoP was flat QoQ on account of slightly higher opex, raising the CI ratio to 56%. Provisions of INR2.43b were in line with our estimate.

* NII grew ~13% YoY (+1% QoQ), led by

11/11/2017 12:28:38 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Century Plyboards Ltd For Target Rs.300.00 - Emkay

* Weak quarter – Revenue grew by meagre 2.6% to Rs4.7bn, EBITDA declined by 2.2% to Rs740mn below our estimate of Rs805mn and APAT came in at Rs401mn, down 18.6% yoy due to higher tax rate (lower profitability at exempted Assam unit).

* Plywood segment revenues declined by 6% to Rs3.1bn; realisations were affected due to unfavourable mix which also led to decline in the EBIT mar

11/11/2017 12:23:40 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate VRL Logistics Ltd For Target Rs.370.00 - Kotak Sec

VRL 2QFY18 results were largely in line with estimates with revenue at Rs4.5bn (up 0.4% YoY), EBITDA margins at 12.3% vs. 11.1% YoY & PAT at Rs216m (up 55.8%YoY). Key highlight has been (i) In GT segment while environemnt was challenging    & activity was sluggish due to post‐GST chaos & protests (leading to 10% dip in volumes), 11% higher realisations helped post f

11/11/2017 12:07:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Kajaria Ceramics Ltd For Target Rs.647.00 - Equirus Sec

Kajaria Ceramics Ltd (KJC) saw a 7% yoy growth in its 2QFY18 revenues to Rs 6.7bn (in line with EE) even amid a challenging environment marked by subdued real estate activity and slower-than-expected dealer-level restocking post GST. Sales volumes were up 5% yoy led by higher outsourcing. Gross margins were hit by GST-related one-time adjustment (Rs 330mn moved to COGS from other expenses). We

11/11/2017 12:02:50 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Castrol India Ltd For Target Rs.437.00 - Kotak Sec

Castrol’s performance is better than our expectation. The company has reported a PAT growth of 29% qoq and 28% yoy basis to Rs.1.78 bn mainly on account of better realization, marginally higher volumes (despite GST impact) and higher other income. Overall revenue has increased by 13% yoy to Rs. 8.6 bn. Operating margin improved impressively by 150 bps to 29% in Q3CY17. The Company has als

11/11/2017 11:56:33 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Godrej Consumer Products Ltd For Target Rs.1,160.00 - Emkay

* GCPL’s Q2FY18’s consolidated revenues came in at Rs25bn, up 6% yoy on a comparable basis, EBITDA at Rs5.3bn, up 16% yoy, and APAT at Rs3.7bn, down 15% yoy

* Domestic volumes grew by 10% and revenue grew by 11% yoy to Rs13.7bn. Soaps category grew by 26% led by double digit volume growth while hair colours and HI grew by 4% each. International business grew 2%; with 9% in

11/11/2017 11:47:33 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell JSW Energy Ltd For Target Rs.51.00 - Motilal Oswal

In-line; sharp reduction in net debt and interest cost

Merchant prices higher, but coal prices also increasing; Maintain Sell

JSW Energy’s (JSWE) 2QFY18 EBITDA declined 8% YoY to INR8.8b (in-line). PAT was up 37% YoY to INR2.9b due to certain one-offs in other income (+230% YoY to INR1.7b). Standalone E

11/11/2017 11:41:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Ambuja Cements Ltd For Target Rs.289.00 - Arihant Capital

Ambuja Cements Ltd. reported 10% rise in its net profit for the quarter ended June, 2017, which came in at Rs 272 crore vs. Rs 248 crore in corresponding quarter of the previous year owing to the higher income from operations. Total income of the company increased by 15% to Rs 2,320 crore for quarter under review as compared to Rs 2,015 crore for the corresponding quarter of previous year. Top

11/11/2017 11:35:09 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jammu And Kashmir Bank Ltd For Target Rs.135.00 - Prabhudas Lilladher

JKBK’s 2QFY18 performance was better than expected on back of decent NII growth as loan growth improved driving up NIMs and also relatively lower provisioning cushioning earnings. Asset quality was largely stable and bank continued its stance to improve balance sheet by maintaining PCR at 60%. Much positive was the loan growth improvement led by J&K state portfolio which are also marg

11/11/2017 11:29:12 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce TVS Motor Company Ltd For Target Rs.670.00 - Emkay

* TVS Motor’s Q2FY18 EBITDA margin improved by 50bps yoy (240bps qoq) to 8.6% (Emkay Est: 8.4%; Consensus Est: 7.9%), led by better scale, favorable mix and cost reduction initiatives.

*  Management expects strong volume growth and market share gains in domestic motorcycles/scooters, propelled by network expansion and new launches. On EBITDA margin, management aspires to re

11/11/2017 11:14:16 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Hexaware Technologies Ltd For Target Rs.270.00 - Motilal Oswal

Impressive margin execution despite client issues; But the pain isn’t over yet

* Strong underlying momentum…: HEXW’s revenue growth of 0.9% QoQ was in line with our estimate, which had baked in ramp-down of two of its top customers. Growth in the underlying business, however, continued to exhibit str

11/11/2017 11:08:35 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold JSW Steel Ltd For Target Rs.282.00 - Reliance Sec

In-line Performance; Margins to Remain Strong

JSW Steel (JSTL) has delivered an in-line performance in 2QFY18 with its standalone sales volume increasing by 2% YoY and 11.7% QoQ to 3.92mnT vs. our estimate of 3.95 mnT. Notably, JSTL recorded the highest 2Q sales volume. However, NSR fell by 3.2% QoQ to Rs38,153/tonne vs. our estimate of Rs40,879/tonne

11/11/2017 11:03:15 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral HDFC Bank Ltd For Target Rs.1,880.00 - Arihant Capital

HDFC Bank reported steady set of numbers. Interest Income increased by 15% YoY to Rs. 19,670 cr, while on QoQ basis it increased by 5%. Interest Expenses increased by 9% YoY, while on QoQ basis it increased by 7% to Rs. 9,916 cr. Net Interest Income increased by 22% on YoY basis and 4% on QoQ basis to Rs. 9,725 cr. Reported Net Interest Margin stood steady at 4.3% on QoQ basis.

Non-In

11/11/2017 10:56:37 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold PVR Ltd For Target Rs.1,294.00 - Emkay

* Headline financials are not comparable on account of 1) sale of bowling alley business and 2) transition to GST. KPI’s were sub-par due to weak content performance; Footfall growth of mere 1% and 5% decline in footfalls for comparable properties and 2) ATP increase was restricted to 1%.

*  Advertisement growth of 10% yoy and increase in distributor share was led by GST tr

11/11/2017 10:51:47 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Container Corporation Of India Ltd For Target Rs.1,496.00 - Motilal Oswal

Cost efficiencies to drive up margins

* Revenue grew 5% YoY (but declined 2% QoQ) to INR14.3b, lower than our estimate due to lower than estimated realizations. EBITDA margin was 19.7% (-2.7pp QoQ; +3pp YoY); sequential decline in margin was on account of one-time income of INR400m booked in 1QFY18. EBITDA increased 24% YoY (but declined 14% QoQ) to I

11/11/2017 10:47:22 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ultratech Cement Ltd For Target Rs.4,571.00 - Arihant Capital

For the quarter Q1 FY18 Ultratech Cement’s realizations witnessed a steady growth of 7.28% on a YoY basis. Domestic sales volume increased by 17.6% to 12.41 mnt while the total volumes grew by 17.3% to 13.1 mnt YoY.

Ultratech Cement’s standalone revenue came in at Rs 6671 cr vs. Rs. 6195 cr, a growth of 7.6% on Y-o-Y basis. On consolidated basis the revenue for the quarter

11/11/2017 10:32:27 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Bharti Airtel Ltd For Target Rs.600.00 - Emkay

* Bharti surprised positively on operating performance, driven by strict control on costs. Bharti’s cost control over the last few quarters has been remarkable and it would drive healthy operating leverage with rebound in revenues going forward.

 India- Wireless revenue was down 5% qoq, impacted by multiple factors. Cost control initiatives had kept network opex stable on seq

10/11/2017 4:20:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold ICICI Bank Ltd For Target Rs.284.00 - Reliance Sec

Lower Provision Coverage to Drag Earnings

ICICI Bank continued to surprise negatively on core operating performance and credit cost front in 2QFY18. Adjusting for one-time gain from stake sale in ICICI Lombard, its operating profit dipped by 4% QoQ, while provisioning expenses rose by 72.6% QoQ to Rs45bn. However, the Bank witnessed sequential moderati

10/11/2017 4:13:19 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Shriram Transport Finance Company Ltd For Target Rs.1,415.00 - Motilal Oswal

Strong quarter; expect buoyancy going forward

* SHTF had an excellent 2Q. Strong disbursement growth of 14% QoQ/26% YoY led to a 14% YoY increase in AUM for the quarter. Management is confident that AUM growth for FY18 will be at the upper end of its 12-15% guidance range. To capitalize on the growth opportunity, the company opened 73 more branches in

10/11/2017 4:05:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Canara Bank Ltd For Target Rs.390.00 - Reliance Sec

Elevated Credit Cost Continue to Impede Performance

Canara Bank has delivered a healthy operating performance in 2QFY18. Its operating profit surged by 15.8% YoY and 0.3% QoQ to Rs24.8bn led by strong growth in NII (14.1% YoY & 2.6% QoQ to Rs27.8bn) and relatively lower opex (7.5% YoY and -4.7% QoQ) of Rs22.4bn. However, provisioning expenses rema

10/11/2017 3:59:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Container Corporation Of India Ltd For Target Rs.1,236.00 - Emkay

* Container Corporation of India Ltd (CCRI) reported healthy volume growth of 11.2% yoy at ~870,830 TEUs, mainly supported by increase in EXIM volume to 752,867 TEUs (11% yoy rise) and domestic volume of 117,963 TEUs (up 12.6% yoy).

* CCRI’s Q2FY18 standalone revenue increased by 5.1% yoy to Rs14.3bn, in line with our estimate of Rs14.3bn. Adj. PAT increased by ~41% yoy to Rs2,2

10/11/2017 3:49:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Godrej Consumer Products Ltd For Target Rs.1,015.00 - Motilal Oswal

Soaps drives India biz growth; Indonesia continues to underperform

* Godrej Consumer’s (GCPL) 2QFY18 consolidated net sales grew 6% YoY to INR25b. Consol. EBITDA increased by 14.7% YoY (est. of +19%) to INR5.3b and adj. PAT by 13.8% YoY (est. of +18.3%) to INR3.7b. Consolidated comparable (adjusted for GST accoun

10/11/2017 3:38:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Hero MotoCorp Ltd For Target Rs.3,818.00 - Motilal Oswal

In-line results; GST leads to accounting changes; Lower other expenses drive margin beat

* Impact of higher RM cost offset by lower other expenses: Revenue increased 7.3% YoY to INR83.6b (est. of INR87b), as volume grew 10.9% YoY, but realizations declined 3.3% YoY to INR41.3k/unit (est. of INR43k). GST-led changes in accounting (for indirect tax at H

10/11/2017 3:31:52 PM | Posted in Broking Firm Views - Long Term Report read full news
Update On Symphony Ltd - Equirus Sec

Symphony (SYML) registered a strong operational performance for 2QFY18, in line with our investment thesis. Revenues grew 22% yoy to Rs 1.8bn, 5% above EE, driven largely by the inventory building exercise at dealer levels - clearly reflecting the high level of faith among dealers on the Symphony brand and products, and their willingness to build inventories in

10/11/2017 3:29:47 PM | Posted in Broking Firm Views - Long Term Report read full news