India Financial - US roadshow: Key takeaways - RCML

We met ~20 investors during a recent roadshow to the US. Discussions on banking sector NPAs revealed that most investors believe NPAs have been successfully identified, but are skeptical of their resolution. Interestingly, SBIN was the flavour of the season, garnering keener interest than AXSB and ICICBC. As for YES, investors would like to wait for the QIP to conclude before taking any fresh l

14/10/2016 12:35:01 PM | Posted in Broking Firm Views - Sector Report read full news
Banking - Business growth tepid; asset quality banks on recoveries - ICICI Sec

We expect business growth for banks in Q2FY17 to remain muted, with private sector banks continuing to maintain a relatively higher growth momentum. Although core spreads are likely to improve on declining cost of funds and relatively lower slippages, margins are estimated to remain flat sequentially on change in business mix. Sharpe decline in bond yields would aid trading gains and relatively

14/10/2016 12:29:48 PM | Posted in Broking Firm Views - Sector Report read full news
Ports - The September PORTfolio - Emkay

Key highlights

* Indian Major Ports handled 50.7 mn tons in the month of September 2016, clocking a growth of 8.1% YoY, however declined 2.4% MoM, growth was seen in POL (+21.1% YoY), iron ore (+379.5% YoY) and other liquids (+19.8% YoY) offset by decline in other cargo (-36.3% YoY), coal (-13% YoY), container (-2% YoY) and fertlisers (-4.9% YoY)

14/10/2016 12:22:16 PM | Posted in Broking Firm Views - Sector Report read full news
India Pharmaceuticals - Q2 Preview: Another anaemic quarter - RCML

Our pharma universe is headed for a muted Q2FY17 with expected revenue/PAT growth of 10.3%/5.1% YoY. QoQ, EBITDA margins are forecast to contract 140bps and earnings to decline 7.9% due to competition in key products, a lack of approvals and high R&D costs. We see a silver lining from stronger growth in domestic markets (inventory restocking + positive seasonality) and EMs (forex tailwinds)

14/10/2016 12:09:45 PM | Posted in Broking Firm Views - Sector Report read full news
Quarterly Preview Q2FY17 Results, expects a better outlook - Prabhudas

PL universe of stocks is expected to see a 9.4% and 2.8% increase in revenues YoY
and QoQ, increase in EBITDA by 24.1% YoY and contraction of 1.6% QoQ, increase
EBITDA margin by 241bps YoY and a contraction of 91bps QoQ with PAT seeing a
19.5% increase YoY and a decline of 6.3% QoQ. We expect the banks to lead the
earnings growth in FY17 and it is expected to be more

13/10/2016 4:14:35 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile - 2QFY17 Results Preview - Festive Cheers - Reliance Sec

With strong volume growth we expect our Auto Universe to register 5.6% yoy & 10.2% yoy rise in revenue and EBITDA, respectively in 2QFY17. Excluding TML, we expect our coverage universe to register 17.1% yoy & 11.4% yoy rise in revenue and EBITDA, respectively as two-wheeler universe is expected to register better revenue growth compared to four-wheeler universe. Our two-wheeler univers

13/10/2016 3:47:24 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Q2 Preview: Gas utilities to lead earnings growth - RCML

Q2FY17 would be a test of efficiency for downstream and upstream oil companies as macro parameters such as oil prices, USD/INR and benchmark GRMs remain flattish QoQ. OMCs are unlikely to see any significant gains from inventories, while sustaining GRMs could be a challenge, especially for HPCL. RIL’s earnings could surprise yet again, driven by improving petrochemicals spreads. Gas utili

13/10/2016 11:56:35 AM | Posted in Broking Firm Views - Sector Report read full news
Power & Capital Goods - 2QFY17 Results Preview - Poor Power Demand to Impact Revenues - Reliance Sec

Power Sector witnessed lower generation growth of 1.3% yoy in 2QFY17 on the back of lower system demand despite higher coal availability. All-India generation rose by 1.3% yoy to 287bn units (BUs) during the quarter. Thermal generation rose by meagre 0.3% yoy lower owing to lower system demand despite higher coal inventory, while hydel generation improved by 3.5% yoy due to improved reservoir l

13/10/2016 11:51:47 AM | Posted in Broking Firm Views - Sector Report read full news
Cement - 2QFY17 Results Preview - Resilient pricing amid seasonal crisis to aid performance - Reliance sec

2QFY17E Sector Preview

Favourable realizations along with cost benefits is likely to aid cement companies to continue to report healthy growth in earnings on yoy basis. The companies under our coverage are likely to witness EBITDA and earnings improvement to the tune of ~23% yoy & ~47% yoy, respectively. However, seasonal overhang and hardening of

13/10/2016 11:36:00 AM | Posted in Broking Firm Views - Sector Report read full news
Q2FY2017 earnings preview - Sharekhan

Q2FY2017 to be another weak quarter:

The headline growth figures for the Sensex companies do not inspire much confidence in Q2FY2017 also. The aggregate net profit of the Sensex companies is likely to remain flat in the quarter despite a mid-single digit growth in the revenue and a margin expansion of close to 50 basis points as compared with the corr

13/10/2016 11:32:33 AM | Posted in Broking Firm Views - Sector Report read full news
FMCG - 2QFY17 Results preview - More of the same - Reliance sec

We expect our Consumer Goods coverage universe consisting of 14 companies to report 8.6% and 13.4% growth in net sales and net profit, respectively for the quarter ended September 2016. Excluding Nestle (lower base effect), overall growth is likely to be 7.6% for revenues and 12.3% for net profit for the same period.
 
Divergent Trends in Volume Growth

13/10/2016 11:30:11 AM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Update > Q2FY2017 earnings preview - Sharekhan

Q2FY2017 result expectations

Improved rural sentiment coupled with the onset of the festive season to lead to a double-digit top line growth:

Sharekhan’s automobile universe (ex Tata Motors [TAMO]) is expected to register a healthy double-digit top line growth of 14% year on year (YoY) driven mainly by

13/10/2016 11:25:35 AM | Posted in Broking Firm Views - Sector Report read full news
Metal & Mining Sector Update - Kotak Sec

Global steel prices improved marginally in the month of September 2016, but demand continued to remain tepid. Despite the tepid demand, India and China registered the higher production in the month of September 2016. On the raw material front, iron ore prices fell to US$57/tonne, while spot coking coal prices rose by ~54% to over US$200/tonne in the last month. Given the sharp increase in cost

13/10/2016 11:18:28 AM | Posted in Broking Firm Views - Sector Report read full news
2QFY17 PREVIEW - Return of cyclicals; multi-quarter high growth - Motilal Oswal

2QFY17 – earnings growth at nine-quarter high We expect 2QFY17 earnings performance to mark (a) recovery in revenue growth (back on growth path after 8 quarters), and (b) continued recovery in PAT growth (9 quarter high PAT growth). MOSL Universe revenue should grow 2%, the first positive print since 2QFY15. EBITDA growth is likely to be 17%, the highest in 8 quarters. PAT is expected to

12/10/2016 4:34:19 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - Healthy growth despite seasonal weakness - RCML

The Indian Pharmaceutical Market (IPM) grew at a healthy rate of 12.6% YoY in Sep’16, albeit lower than the 15.3% figure seen in August due to seasonality in the anti-infective and anti-malarial segments, which curbed volume growth  (+6.5% vs. +9.1% in Aug). The NLEM market was hit by list additions and price cuts, while FDCs slumped on the back of distressed volumes and muted price

12/10/2016 4:21:48 PM | Posted in Broking Firm Views - Sector Report read full news
Automobiles - Q2 Preview: Expect volume-led profit growth -RCML

We expect Q2FY17 revenue and EBITDA growth of 15% YoY for our auto universe, with flat EBITDA margins. Volumes of 2Ws (+20% YoY) and PVs (+18% YoY) have surged in Q2 on channel filling in anticipation of festive sales in Oct’16. We expect volume-led margin gains for JLR (120bps), TVSL (100bps) and MSIL (70bps), with these players set to lead earnings growth as well. AL is the only player

12/10/2016 3:52:50 PM | Posted in Broking Firm Views - Sector Report read full news
India Metals & Mining Q2 Preview: HZ, HNDL and Tata to outshine peers -RCML

The RCML metals & mining universe is likely to report negative EBITDA growth of 3% QoQ for Q2FY17. Miners CIL/NMDC (EBITDA: -26%/-14% YoY) would drive the underperformance, while HZ, HNDL and Tata would outshine. While Tata would benefit from increased steel deliveries, HZ should report an above-expected quarter with 46% EBITDA growth QoQ on higher zinc output. For HNDL, profits should cont

12/10/2016 3:40:34 PM | Posted in Broking Firm Views - Sector Report read full news
Telecommunications - Déjà vu on payouts from incumbents - Emkay

* On expected lines bidding intensity was muted, while the total payout by incumbent operators was surprisingly high due to higher quantum of spectrum purchased

* Bharti Airtel and R-Jio added spectrum to enhance network capacity while Idea Cellular and Vodafone purchased 2300Mhz and 2500Mhz to fill coverage gaps. In 2100Mhz, band incumbent operators focused on both filling gaps and i

11/10/2016 11:08:31 AM | Posted in Broking Firm Views - Sector Report read full news
The Second Quarter Results Preview Stands Mixed - Dynamic Levels

Now that the second quarter ended on the 30th September, the Street has its eyes set on the results. After a disappointing show in the previous quarter result, India Inc is likely to report a bounce back in revenue and net profit for the September quarter. The revenue has witnessed a series of fall in five quarters and is now expected to grow for the third consecutive quarter, reflecting a stea

10/10/2016 3:18:04 PM | Posted in Broking Firm Views - Sector Report read full news
India Telecom - Spectrum auctions see aggressive capacity building - RCML

The Oct’16 spectrum auctions saw higher-than-expected outlay from telecom operators. While Idea and Vodafone expectedly filled up data portfolio gaps, the extent of capacity-led bidding by players was surprising. 700 and 900MHz bands were entirely unsold due to high reserve price, which should now see a downward revision. Such aggressive capacity building amid slowing data adoption would

8/10/2016 5:09:03 PM | Posted in Broking Firm Views - Sector Report read full news
Banking and NBFC - Sector Update > Q2FY2017 earnings preview - Sharekhan

Q2FY2017 result expectations

Incremental slippages expected to be lower:

Coming after couple of challenging quarters, when asset quality pressures increased sharply, Q2FY2017 will be a significant quarter, as overall performance of the banks is likely to improve a tad (relatively speaking). Lower intensity in

8/10/2016 4:01:17 PM | Posted in Broking Firm Views - Sector Report read full news
India Telecom - Q2 Preview: Seasonally weak quarter; stay selective - RCML

We expect our telecom universe to report tepid QoQ wireless revenue in Q2FY17 due to negative seasonality and slower data adoption. Margins are likely to dip QoQ due to lower voice minutes and ARPMs. For Bharti-Africa, we expect a weaker performance primarily due to unfavourable currency movements (NGN depreciated 47% QoQ vs USD). TCOM should deliver steady data growth but margins are likely to

8/10/2016 3:28:10 PM | Posted in Broking Firm Views - Sector Report read full news
Which Sectors Will Draw Maximum Attention Of Investors? - Dynamic Levels

Last ten days have been very eventful for the market. The traders a sharp fall amid political tension between India and its neighbor Pakistan. However as soon as the tension subsided Nifty share price picked up and went back to the level of 8800. Wednesday and Thursday saw some profit booking though and the index gave correction.

The June quarter saw a mixed basket of earnings and all

8/10/2016 11:28:40 AM | Posted in Broking Firm Views - Sector Report read full news
Vodafone wins the auction, followed by Airtel, Jio, and Idea - Dynamic Levels

Thursday witnessed the end of the India’s largest but tepid Spectrum sale. The government raised 657.9 billion rupees against the spectrum of Rs. 5.6 trillion. This means nearly 60% of the airwaves were left unsold, including the premium 4G bands. Around 956 MHz was sold by the government amounting to 41% of the total spectrum put up for sale. The sale also missed the estimates of brokera

7/10/2016 5:05:25 PM | Posted in Broking Firm Views - Sector Report read full news