Pharma Sector - Mixed Performance in the US Biz; Domestic Biz to See Moderate Growth - Reliance Sec

We expect 3QFY17E will be a mixed quarter for the Indian pharmaceutical companies with some of them are expected to deliver healthy sales growth led by improved ANDA approvals rate by the US FDA, no incremental pricing pressure in the US business and relatively stable currency in Emerging Markets. Few other companies are expected to deliver muted performance due to regulatory headwinds in the U

17/01/2017 12:31:18 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Pharma has immediate support placed at 10150 levels - GEPL

NIFTY PHARMA    Current Close: 10445.10   Trend : Negative

Observation

* NIFTY PHARMA is one of the underperforming sectoral indices, as it closed down by around 0.26% at 10445.10, as against an up move of 2.16% in benchmark NIFTY 50.

* failed to sustain at higher levels and also formed a Double Top f

17/01/2017 12:22:11 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Metal holds strong Bullish momentum - GEPL

NIFTY METAL   Current Close: 2952.30   Trend : Positive

Observation

* NIFTY METAL is one of the most outperforming sector amongst all the indices last week. It moved up a good 5.52%, as against an up move of 2.16% in benchmark NIFTY 50.

* In the month of Nov. 2016, the Sector created a 52 Week High at 2891

17/01/2017 12:18:13 PM | Posted in Broking Firm Views - Sector Report read full news
Metals & Mining Sector - Price Hikes to Drive Performance - Reliance Sec

Sector Preview 

3QFY17E is expected to be strong for both ferrous and non-ferrous companies, while the ferrous players are set to report sequentially weak numbers (due to higher raw material prices), while their yoy performance is expected to be stellar. The non-ferrous players are expected to report remarkable performance both yoy and qoq parlanc

16/01/2017 4:05:58 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update - Q3FY2017 earnings preview - Sharekhan

Q3FY2017 result expectations

Indian Power sector scenario: Power generation in India is expected to grow by 5.2% YoY (up 0.3% QoQ) to 289BU in Q3FY2017. During this quarter, the base energy deficit declined to 0.6% from 1.9% during Q3FY2016. As a result, the average spot power exchange rate dropped by 14% YoY to Rs2.37/unit (up 5% QoQ). The Plant Load

13/01/2017 12:01:51 PM | Posted in Broking Firm Views - Sector Report read full news
India Utilities - Q3 Preview: Mixed quarter - RCML

According to CEA, gross power generation (incl. imports from Bhutan) grew moderately by 5.22%/5.15% YoY in Q3/9MFY17. Thermal generation was up 4.9%/6.2% YoY. While central/state sector generation grew by ~7% YoY each in Q3, IPPs registered tepid growth of 1.7%, reflecting limited discom demand and high cost structures of IPPs. PWGR remains our top pick as it is shielded from the low PLF situat

12/01/2017 4:07:52 PM | Posted in Broking Firm Views - Sector Report read full news
Imminent Capex Visibility in T&D Space to Aid Key Segmental Players - Reliance Sec

The Indian Capital Goods sector has relatively underperformed vs. BSE Sensex in last 2 years on the back of continuous slowdown in order-inflows, declining margins, execution delay and diminishing return ratios. We are cautious on the Indian Electrical BTG segment amid concerns over weak order inflow from power generation marked by lower margins, while we are positive on power T&D space on

12/01/2017 2:54:01 PM | Posted in Broking Firm Views - Sector Report read full news
India NBFCs - Banks to LAP up market share - RCML

Discussions about the LAP market with regional heads of select NBFCs and direct sales agents across India suggest: (1) balance transfers from NBFCs to banks have increased due to the reduction in lending rates, (2) banks could gain market share in LAP as demonetisation has led to higher customer income disclosure, and (3) loan repayments could take a hit from Jan’17, leading to a spike in

12/01/2017 2:34:14 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG - Demonetisation Steals the Show...Literally! - Reliance Sec

Demonetisation has had a major impact on performance of the consumer companies in 3QFY17E. We expect single-digit fall in revenues in the quarter on the back of instability in the system marked by cash crunch following demonetisation drive. However, we expect the impact on net profit to be limited as the companies have recalibrated their A&P and other expenses in wake of sharp decline in sa

12/01/2017 2:20:40 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - Seasonality, currency ban cramp Dec sales - RCML

As per AIOCD AWACS, the Indian Pharmaceutical Market (IPM) grew at a muted 7.2% YoY in Dec’16 (5.8% ex-anti-diabetic and cardiac sales), half of last month’s 15.3% run-rate. December is a seasonally weak month and growth was further dented by demonetisation. Pricing remained under pressure while volume growth fell sharply to 1.8% from November’s 9.6%. Therapy-wise, antidiabeti

12/01/2017 12:13:21 PM | Posted in Broking Firm Views - Sector Report read full news
Ports - The December PORTfolio - Emkay Global

* Major Indian ports handled 57.1mn tons of freight in the month of December 2016, clocking a growth of 13.7% YoY and 5.6% MoM. YoY growth was led by POL (+14.1% YoY), iron ore (+237.5% YoY) and others category (+80.4% YoY). Growth was weighed down by a decline in coal (-12.6% YoY), fertilizer (-37.6% YoY) and other liquids (-32.2% YoY)

* New Mangalore (+24.6% YoY), Mormugao (+63.9% Y

11/01/2017 6:03:32 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - A Dismal Quarter on Unexpected Demonetization - Reliance Sec

3QFY17E Sector Preview

An insipid demand scenario marked by impact of currency crunch following demonetization drive, hardening of fuel prices and higher fixed costs will take a toll on 3QFY17 earnings of the cement companies. Barring Southern companies, Shree Cement & Mangalam Cement, all other cement companies under our coverage are likely to re

11/01/2017 5:31:05 PM | Posted in Broking Firm Views - Sector Report read full news
India Metals and Mining - Q3 Preview: NMDC, HZ to outperform - RCML

We expect Q3FY17 non-ferrous earnings to be stronger than the ferrous sector as the latter has been hit by rising RM costs. NMDC/HZ are likely to outperform with EBITDA growth of 59%/34% QoQ, helped by rising ore and zinc prices. While we remain cautious on ferrous players, the decline in profitability in the subsequent quarter may be less than envisaged earlier due to a softening of coking coa

11/01/2017 5:24:53 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank has immediate support placed at 2840 levels - GEPL

NIFTY PSU BANK   Current Close: 2969.85   Trend : Negative

Observation

* NIFTY PSU BANK is one of the few sectoral index which has closed in a negative territory, down by 0.41% at 2969.85, as against an up move of 0.71% in benchmark NIFTY 50.

* The Sector made a recent swing high @ 3503.90 a few weeks bac

11/01/2017 3:21:29 PM | Posted in Broking Firm Views - Sector Report read full news
India Agrochemicals - On fertile ground - RCML

India’s agrochemicals sector, riding on its inherent structural drivers and strong entry barriers, is set to grow at a 12% CAGR over FY16-FY19E. Besides, products worth US$ 6.3bn would go off-patent by 2020, offering an attractive opportunity for generic players. While stricter regulations could cap return ratios, we are fundamentally positive on the sector and like Dhanuka Agritech for i

11/01/2017 3:11:10 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Auto holds Bullish momentum - GEPL

NIFTY AUTO    Current Close: 9506.65    Trend : Positive

Observation

* NIFTY AUTO is one of the outperforming sectoral indices, as it has closed up sharply by around 3.99% at 9506.65, as against an up move of 0.71% in benchmark NIFTY 50.

* In the month of Sept. 2016, the Sector created an All Tim

11/01/2017 2:52:53 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - OMC marketing margins may have peaked - RCML

OMCs’ marketing margins on retail fuel sales look to have peaked

given the government-imposed 0.75% discount on cashless fuel sales, potential fee burden of ~1% on card transactions and competition from private players offering discounts. While OMCs will eventually pass on these charges to consumers, the scope for margin expansion in FY18 has re

11/01/2017 12:31:40 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Update - Q3FY2017 earnings preview - Sharekhan

Q3FY2017 result expectations

Demonetisation woes to dent revenue growth in Q3FY2017:

After several quarters of double-digit topline growth, Sharekhan’s Automobile universe’s (ex-TAMO) revenue growth is expected to slow to 5% YoY in Q3FY2017, primarily led by slowdown in volumes. The demonetisatio

11/01/2017 12:22:56 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Monthly Sector Update - Realizations Softened on Insipid Demand - Reliance Sec

Demand environment continued to remain dismal in Dec’16 led by impact of demonetization, which affected trade segment sales in most pockets. However, price cut (-2.2% m-o-m) undertaken by the industry aided monthly demand to improve as most companies saw a monthly volume uptick in the range of ~5-15%. Notably, there has been a pickup in the construction of selected real estate projects as

11/01/2017 12:18:16 PM | Posted in Broking Firm Views - Sector Report read full news
Banking and NBFC - Sector Update - Q3FY2017 earnings preview - Sharekhan

Q3FY2017 result expectations

Key developments:

1) The falling G-Sec yields (touched a low of 6.187%, down 60BPS during Q3FY2017); 2) Redemption of FCNR deposits (outflow of $7.14 billion from April-October 2017), and overall improving outlook for demand. However, the Government’s demonetisation drive cer

11/01/2017 12:01:25 PM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector - Monthly round up – Jan’17 - Emkay Global

* Crude oil prices appreciated:

Brent crude oil jumped up by 18% MoM to reach $53/bbl by end of December’16 as OPEC members reached a deal to cut production by $1.2mbpd. This deal is expected to bring back balance in the oil market. Light-Heavy (L-H) differential was up by $0.3/bbl MoM to $3.2/bbl.

 

* Low

11/01/2017 11:55:17 AM | Posted in Broking Firm Views - Sector Report read full news
India Housing Finance - Down and out – REPCO our only pick - RCML

With demonetisation set to stifle growth in India’s cash-heavy real estate market, we expect HFCs to bear the brunt as (1) poor demand shrinks loan growth to 12% (FY16-FY19E) vs. 19% earlier, (2) margin levers fade as high-yield products turn risky and competition from banks rises, and (3) stress emerges on LAP/developer loans due to property price corrections. REPCO is our only pick (nic

11/01/2017 9:55:02 AM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - A flat quarter - ICICI Sec

Q3FY17E volume, average realisations, costs and EBITDA/te for cement companies under our coverage are expected to be broadly flat YoY; though region-wise and hence company-wise trends could vary significantly. Volume growth in the South (+12% YoY on a low base) led by better demand in Andhra Pradesh / Telangana is expected to offset volume decline in the North / West regions. Similarly, higher

10/01/2017 3:45:21 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector - Q3FY17: Non-ferrous pack to outperform - ICICI Sec

Q3FY17 will clearly be better for non-ferrous plays. Steel demand growth has been at 4-6% Y-Y. Steel companies will have to handle steeper RM costs starting Q3FY17, with average spot coking coal prices doubling and iron ore prices having increased by 20% between Q2FY17 and Q3FY17. Average steel price hike of Rs3,500 taken during the quarter will not be enough to offset this higher cost profile

10/01/2017 3:26:38 PM | Posted in Broking Firm Views - Sector Report read full news
Cement - Sector Update - Q3FY2017 earnings preview - Sharekhan

Q3FY2017 result expectations

Weak demand, pricing pressure and change in sales mix to affect topline:

We expect the Q3FY2017 revenue of the Cement companies under our coverage (ex-Grasim) to decline by 0.9% YoY (down 14.1% QoQ), largely affected by lower demand on account of demonetisation (trade segment hit

10/01/2017 11:54:10 AM | Posted in Broking Firm Views - Sector Report read full news