Buy MRF Ltd For Target Rs.43,500 - Anand Rathi

Outstripping yet again; retaining our Buy

MRF’s Q1 FY17 revenue was flattish yoy because of competition (Chinese tyres) and lower realisations. Yet, its greater operating efficiency resulted in its highest-ever margin of 24.1%. We expect some shrinking in margins due to higher rubber prices. But, we believe the industry might very comfortably pa

20/08/2016 12:34:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ahluwalia Contracts (India) Ltd For Target Rs.320- RCML

Strong order inflows, improving margin profile – BUY

AHLU’s Q1FY17 PAT at Rs 215mn (+14.5% YoY) was in line with estimates even as topline fell short of expectations due to delays in certification of bills. Cost optimisation and a better order mix drove a 160bps expansion in EBITDA margins to 14%. Order inflows of Rs 9.5bn till date in FY1

20/08/2016 12:25:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Hindalco Industries Ltd For Target Rs.128 - Reliance

Robust Quarterly Performance; Valuations Pricey

Hindalco’s standalone EBITDA surged 30% yoy (-3% qoq) to Rs11.3bn in 1QFY17, topping our estimate of Rs10bn. Revenue from Aluminium segment rose by 8% yoy (-10% qoq) on higher sales volume with which Aluminium EBITDAM rose by 727bps yoy to 21.1% (Note: not comparable on qoq basis as it earlier repo

20/08/2016 11:59:46 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Magma Fincorp Ltd For Target Rs.135 - SPA Sec

Magma reported mixed set of numbers with below estimate earnings due to lower disbursement but improvement in its operating parameters like NIM and OPEX. Due to cautious approach adopted by the company (prompted by asset quality challenges in mortgages), disbursement grew by 2.5% YoY, leading to loan book contraction of 7% YoY to INR 178bn. For FY17, management has lowered its loan assets growt

20/08/2016 11:46:39 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ipca Laboratories Ltd For Target Rs.568 - Karvy

Improvement in Business continues but US plant clearance critical for US and Institutional business

In Q1FY17, total revenues of IPCA Labs increased by 9%YoY to Rs 8,125mn (our estimates Rs 8004 mn) mainly due to increase in domestic formulations. The Company’s operating margins increased by 450 bps YoY to 15.3% (higher than our estimates 14.9%)

20/08/2016 11:37:19 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Majesco Ltd For Target Rs. 750.00 -  Anand Rathi

Soft quarter, profitability improving; retaining our Buy

While Q1 was steady and revenue growth, order backlog and operating parameters were flattish, the highlights were greater profitability and cash generation. Majesco increased its investments last year and is looking to build profitability this year, supported by revenue growth. It had a setback

19/08/2016 3:30:20 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coromandel International Ltd For Target Rs. 590.00 - Motilal Oswal

Results below estimates; Outlook positive due to normal monsoon

Results below estimates:

Coromandel International’s (CRIN) overall revenues fell 6.6% YoY to INR20.5b (est. of INR24.4b) in 1QFY17. EBITDA declined 5% YoY to INR886m (est. of INR1,075m), while margins improved 10bp YoY to 4.3% (est. of 4.4

19/08/2016 3:20:04 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Bank of Baroda For Target Rs. 149.00 - SPA Sec

BoB reported mixed set of numbers with improvement in operating performance but continued stress on the asset quality. Though NII declined by 2.5% YoY to INR 33.71bn on back of 5.5% decline in loan book, NIM improved by 12bps YoY and Pre-Provisioning Operating profit (PPOP) increased by 21% YoY supported by 49% increase in other income. While slippages at INR 60.96bn (6.7% of advances) continue

19/08/2016 3:15:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Colgate India Ltd For Target Rs. 920.00 - RCML

Good quarter, valuations full

CLGT posted Q1FY17 total sales growth of 8.8% YoY, with domestic volumes up 5% YoY (6% incl. exports). Toothpaste volume market share expanded 60bps QoQ. EBITDA grew 3.7% YoY to Rs 2.1bn while a higher tax rate (+840bps YoY) resulted in a decline in adj. PAT by 8.8% YoY. Though we like CLGT’s established franchise, w

19/08/2016 3:12:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Adani Power Ltd For Target Rs. 32.00 - Reliance Sec

Net loss Shrinks; EBITDA Margin Sees Substantial Growth

Aided by lower fuel cost and increased realization, consolidated net loss of Adani Power (APL) shrank to Rs0.33bn in 1QFY17 as against Rs1.7bn in 1QFY16. As the results for 1QFY17 are in compliance with Indian Accounting Standards (Ind ASs), the 1QFY16 result has been restated to comply with the n

19/08/2016 3:06:54 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Forge Ltd For Target Rs. 946.00 - Prabhudas Lilladher Ltd

With export sales recording a fourth successive quarter of YoY decline, BHFC’s standalone revenues declined 20.6% YoY and 10.3% QoQ during Q1FY17. EBITDA margin was lower 430bps YoY and 260bps QoQ to 27% due to lower volume and an adverse product mix. Standalone adjusted profit in Q1FY17 was lower than expected at Rs1.22bn, a decline of 37.7% YoY. However, wholly‐owned subsidiaries sust

19/08/2016 3:03:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Bajaj Electricals Ltd For Target Rs. 277.00 - Angel

For 1QFY2017, Bajaj Electricals (BEL)’ top-line and bottom-line have come in below our estimates. The top-line growth was dampened by the poor performance of the Consumer durables and E&P segments. However, on the bottom-line front, the company reported a modest growth due to slight improvement in the operating performance and lower interest cost, depreciation cost and taxes.

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19/08/2016 2:59:07 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Tata Chemicals Ltd For Target Rs. 590.00 - Emkay

*  Tata Chemicals has proposed to divest its urea and customized fertiliser business on a slump sale basis to Yara India (Indian arm of Yara International) for Rs 26.7bn. As part of the deal, Yara will acquire all the assets and working capital related to this business

*  Tata Chemical’s urea facility has a production capacity of 1.2mn MT while the customized fertilise

19/08/2016 2:54:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Entertainment Network (India) Ltd For Target Rs.776.00 - Emkay Global

One-off quarter; long term story intact

* Headline numbers missed estimates largely on account of weaker than expected revenues. Decline in non-radio was the primary reason for miss in revenue while radio registered heathy growth of 24% yoy

* Like to like revenue grew by 7.3% yoy to Rs1090mn, on account of 10% volume growth and 2.2% yield imp

18/08/2016 12:22:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy JK Cement Ltd For Target Rs.860.00 - Reliance sec

Backed by better-than-estimated jump in average realization of grey cement (+1.5% yoy & +8.7% qoq) and improved operating synergies, J.K. Cement (JKC) has reported a healthy operating performance in 1QFY17 with its EBITDA surging by 95% yoy to Rs1.66bn topping our estimate of Rs1.52bn. Grey Cement EBITDA spiked by ~135% yoy to Rs1.0bn. Notably, raw material cost/tonne jumped by ~5% yoy &

18/08/2016 12:14:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Union Bank of India Ltd For Target Rs.150.00 - Prabhudas

Union Bank reported net earnings better than our estimates with PAT of Rs1.66bn (PLe: Rs1.06bn). Operating performance was supported by strong other income led by treasury & FX gains, but higher provisions continues to impact profitability. Asset quality deterioration continued with high slippages of Rs36.0bn from Corporate/SME/Retail and net stressed assets ratio (NNPA+SRA) remains at ~9%

18/08/2016 12:08:55 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy V-Mart Retail Ltd For Target Rs.600.00 - RCML

Tepid Q1; demand pick-up likely in H2 – BUY

VMART reported a muted Q1FY17 with below-expected revenue growth of ~11% YoY to Rs 2.3bn and negative SSSg of 4% YoY. EBIDTA margins too missed estimates, sliding ~245bps YoY to 7.9% on higher employee costs and other expenditure. This in turn brought down adj. PAT by 18% YoY to Rs 91.5mn. Management i

18/08/2016 12:02:33 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tech Mahindra Ltd For Target Rs.700.00 - Angel Broking Pvt Ltd

For 1QFY2017, Tech Mahindra’s revenue came in at US$1,032mn V/s US$1,027mn expected and V/s US$1,023mn in 4QFY2016, a QOQ growth of 0.9%, driven by USA (which was 49.0% of sales V/s 46.8% in 4QFY2016), while ROW, constituting ~22.8% of sales V/s 24.7% in 4QFY2016 was a drag. On the operating front, the EBIT margin came in at 12.0% V/s 12.3% expected and V/s 13.7% in 4QFY2016, QoQ dip of 1

18/08/2016 11:55:28 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Hindustan Media Ventures Ltd For Target Rs.365.00 - Emkay

Weak advertisement growth; H2FY17 to be better

* Muted revenue growth of 6.8% was attributable to weaker than expected advertisement growth of 6.7% (vs estimate of 11%). Circulation revenue growth of 5.4% at Rs563mn was in-line with estimate

* EBITDA was in-line with estimate despite weaker than expected revenue growth, attributable to modera

18/08/2016 11:50:59 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Thomas Cook (India) Ltd For Target Rs.255.00 - Sharekhan

Thomas Cook India’s (TCIL) Q1FY2017 results are not comparable on a Year-on-Year (YoY) basis due to integration of acquisitions (including the takeover of Kuoni’s India and Hong Kong operations) done in the past few quarters. Also, the company has changed the accounting standards, resulting in change in financial presentation.

 

Key points

18/08/2016 11:43:07 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy NATCO Pharma Ltd For Target Rs.750.00 - Kotak Sec

Natco pharma revenues were lower than expected led by lower API sales as well as lower export formulations revenues. EBIDTA margins however, were ahead of estimates (due to lower contribution from low margin segment - API). PAT though came in lower than expected due to miss on revenues. Natco has been our preferred pick in the mid cap pharma space due to its R&D capabilities and robust grow

18/08/2016 11:36:43 AM | Posted in Broking Firm Views - Long Term Report read full news
Update On Take Solutions Ltd - Sharekhan

Key points ŠŠ

Book profit with gain of 19%:

Since our view point initiation, the share price of Take Solution has gained ~19%, leaving limited scope for further upside post the recent run-up. We had highlighted key positives, like growth potential in Life Sciences vertical, margin expansion, and likely imp

17/08/2016 12:28:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy PVR Ltd For Target Rs.1,279.00 - Emkay

* PVR continued strong show with 9% EBITDA beat, once again strong execution in good content times is clearly visible. Revenue beat was on account of ticket sales and movie distribution income. Underlying KPI growth remain strong with upbeat on content quality

* Footfalls grew 9% yoy, while for comparable properties, it was up merely 1% yoy, impacted by high base. ATP improved 7% yoy

17/08/2016 12:23:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Garware Wall Ropes Ltd For Target Rs.524.00 - Angel Broking Pvt Ltd

Garware Wall Ropes (GWRL)’ 1QFY2017 results outperformed our estimates on the bottom-line front while the top-line disappointed as it de-grew by ~6% yoy. On the operating front, the company reported margin improvement, primarily on account of lower raw material costs. Further, on the bottom-line front, the company reported strong growth on account of a favorable operating performance.

17/08/2016 12:17:30 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Siemens Ltd For Target Rs.1,312.00 - Prabhudas

Siemens (SIEM) reported PAT at Rs1.3bn, down 22.7% YoY, which was below ours and street estimates due to lower‐than‐expected margins. Order inflow was strong, up 43% YoY, led by Railways and T&D segment. SIEM highlighted that the macro indicators are positive and moving in the right direction. Public capex continues to dominate ordering, while private capex recovery is muted. SIEM will

17/08/2016 12:06:24 PM | Posted in Broking Firm Views - Long Term Report read full news