Stellar Comeback aided by Ferrous Companies - Reliance sec

Our Metals & Mining universe recorded 8% qoq (4% yoy) revenue de-growth in 1QFY17, largely due to Hindustan Zinc (HZL) reporting subdued numbers owing to decline in output which affected the volume. Excluding HZL, revenue of our universe remained essentially flat on yoy basis despite fall in LME prices. The sequential decline could be attributed to seasonality factor (JanMar quarter is the

21/09/2016 5:54:21 PM | Posted in Broking Firm Views - Sector Report read full news
India Metals & Mining - Haircuts essential to prune steel sector debt -RCML

Our analysis of the Q1FY17 performance of six stressed steel companies (total borrowings of Rs 710bn) suggests that debt servicing will be possible only if banks take a 35-40% haircut on these loans. In Q1, the six players reported cumulative interest costs of Rs 19bn, 2.7x more than their combined EBITDA of Rs 6.9bn. While higher capacity utilisation could raise EBITDA levels, we expect most g

21/09/2016 5:37:01 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector - SEB’s Finance - Improvement on the back of lower cost - ICICI Sec

Power Finance Corporation’s (PFC) recent report on the health of SEBs highlights the interesting trend of improvement in financial performance of SEBs primarily on the back of lower Average Cost of Supply (ACS) in FY15. AT&C losses widened YoY as the base year had benefit of sharp reduction in Uttar Pradesh’s AT&C losses (on receipt of payment from the state government). Whi

21/09/2016 5:30:53 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Deposit growth climbs back to 9.8% - RCML

As per RBI data, credit growth for the fortnight ended 2 Sep increased to 9.8% YoY. Deposit growth that had declined to 9.2% in the previous fortnight rebounded to 9.8%. Investment growth increased to 7.3% YoY from 5.7% earlier, while SLR remained largely stable at 27%. Credit growth has been weak over the last few months due to low corporate demand and a lack of fresh investments. We do not se

19/09/2016 5:38:21 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - Strong volume-led growth in Aug’16 - RCML

The Indian Pharmaceutical Market (IPM) witnessed strong growth of 15.3% YoY in August, led by a ramp-up in volumes (+9.1% vs. 12M avg. of 2.5%) on the back of strong seasonality in the anti-infective and respiratory segments. The FDC market slumped further, with distressed volumes and muted price hikes. Therapy-wise, the respiratory segment posted solid growth at 32.3% and the anti-infective an

19/09/2016 5:31:35 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Metal has immediate support placed at 2250 levels - GEPL

NIFTY METAL    Current Close: 2450.90     Trend : Negative

Observation

* NIFTY METAL is one of the most underperforming sectoral indices last week, as it has closed down sharply by 5.99% at 2450.90, as against a down move of 0.98% in benchmark NIFTY 50.

* The Sector found a strong resistance @ 2

19/09/2016 4:29:13 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty FMCG holds Bullish momentum - GEPL

NIFTY FMCG    Current Close: 22762.50     Trend : Positive

Observation

* NIFTY FMCG is the only outperforming sectors amongst the indices last week, as it has closed in GREEN & was marginal up by 0.26%, as against a down move of 0.98% in benchmark NIFTY 50.

* In the previous week, the Sector

19/09/2016 4:22:06 PM | Posted in Broking Firm Views - Sector Report read full news
Telcos Remain Mum, Jio Makes Noise In Spectrum Sale - Dynamic Levels

Seven telecom operators have deposited over 14 cr rupees as earnest money for the spectrum auction which is scheduled to commence from 1st October. The telcos have to deposit 10-12% of the reserve price of the spectrum they are to bid for. The EMD - earnest money deposit by telcos points out to a muted response to the spectrum auction since at this rate airwaves worth about Rs.1.40 lac crore co

17/09/2016 2:27:24 PM | Posted in Broking Firm Views - Sector Report read full news
Top sector gainers today - Banks and FMCG Beverages - Dynamic Levels

The dawn of 16th September saw the rise of the Banking and FMCG Beverage Sectors. The Banking Sector stocks rallied up 1.92 per cent while the FMCG Beverage Sector stocks surged 2.48 per cent.

 

Banking Sector:

Yesterday, a US data showed that factory orders and retail sales were below market expectations. This led to a rise in

17/09/2016 2:19:45 PM | Posted in Broking Firm Views - Sector Report read full news
Chemical Sector: The stellar of D-Street Today - Dynamic Levels

The Indian Chemical Sector is quite diverse. It produces a range of products including petrochemicals, plastics, Pharmaceutical ingredients and paint. Chemical is one of the vital sectors of India in terms of both production and export performance. As per the latest data of Association of Chemical Companies the sector contributes 7% of GDP and 13% of both industrial output and total exports. In

16/09/2016 5:14:24 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Grows Firm on the Upcoming Festive Season - Dynamic Levels

According to a recent report passenger vehicle (PV) along with the two-wheeler segments of the automobile industry have posted robust double digit growth in the month of August.

 

The Growth Inputs

The study indicates a strong revival in demand, backed by improved rural sentiment as well as the increasing urban demand due to i

16/09/2016 5:06:25 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Volumes remain muted in Aug’16; prices remain firm - ICICI Sec

Reason for report: Sector update

Our channel checks suggest cement industry volumes are likely to have grown in low single-digit YoY to ~22mnte during Aug’16 (production grew 1.4% YoY during Jul’16 as pe r DIPP) impacte d by he av y rains and sand mining issues, particularly in the North and the Central regions. The East likely continued it

16/09/2016 4:37:19 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector- The Sunrise Sector of Indian Economy - Dynamic Levels

With the bar for the Business excellence set high, the Industry is synonymous with innovation and creativity. The Indian M&E Industry, i.e. Media and Entertainment Industry is making high growth strides and proving its resilience to the world. Banking on the technology, the sector has seen tremendous growth in last few years.

 

The Market Dynamics:

16/09/2016 4:05:22 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Surge in consumption - RCML

India’s petroleum product consumption grew at one of the highest levels in five years in Aug’16, rising 11.4% YoY to 15.8mmt (vs. +9.5% YoY on a rolling three-month basis). Diesel/petrol led the way, growing at 14%/25% YoY. Consumption of other industrial and commercial products such as ATF, fuel oil and petcoke also surged, pointing to robust economic activity. Kerosene consumption

14/09/2016 5:36:36 PM | Posted in Broking Firm Views - Sector Report read full news
Cement: A Definite Beneficiary of Economic Reforms - Reliance sec

Demand Set to Accelerate in 2HFY17E on Strong Project Segment Sales & Rural Demand Uptick

We believe 2HFY17E would witness a favourable demand environment mainly driven by pick-up in construction of projects awarded in last 12-18 months and likely improvement in rural demand on the backdrop of favourable monsoon and disbursal of pay-outs following

14/09/2016 5:32:19 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Pharma unable to sustain at 12000 levels - GEPL

NIFTY PHARMA   Current Close: 11818.80    Trend : Negative

Observation

* NIFTY PHARMA is one of the underperforming the sectoral indices over last one odd year, as while the benchmark NIFTY 50 created fresh 52 week HIGHS, the NIFTY PHARMA still seems to struggle to cross it’s 3 month HIGH.

* Th

12/09/2016 5:06:16 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank holds Bullish momentum - GEPL

NIFTY PSU BANK    Current Close: 3287.95     Trend : Positive

Observation

* NIFTY PSU BANK is one of the most outperforming sectors amongst the indices last week, as it has moved up sharply by 5.08%, as against an up move of 0.65% in benchmark NIFTY 50.

* In the last week, the Sector has breached

12/09/2016 4:59:29 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update - Dynamic Levels

Central institutions such as NTPC and the SEBs - State Electricity Boards continue to dominate the power sector in India. The nation has adopted a blend of hydel, thermal and nuclear sources with an aim to increase the availability of electricity. Thermal plants account for about 60 per cent of the total power generation capacity in the country, followed by hydro-electricity (15 per cent share)

10/09/2016 4:41:23 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Energy cost benefits to reverse in Q3/Q4; Pricing power to improve - Emkay

■    Pet coke prices have increased by 81% during  Jan-Sept'16, post decline of 39% between Sep'15 to Jan'16, which will lead to reversal in energy costs savings (from Q3/Q4 as companies may have low cost inventories) enjoyed by cement sector in last 2 quarters

■    For our coverage universe, energy cost per tonne declined by 21.3% yoy and 6.3%

10/09/2016 4:24:46 PM | Posted in Broking Firm Views - Sector Report read full news
Pharmaceuticals - Early signs of growth recovery - Emkay

India Pharma Market- Monthly Checkup

* Indian pharmaceutical market showed a strong growth of c14.7% in July 2016 as against growth of c9.7% in June 2016 and growth of 10.8% in May 2016. Moderate growth in 4 months from March 2016 to June 2016 resulted in MAT sales growth of 13.3% (August 2015- July 2016)

* The growth was led by therapeutic a

10/09/2016 3:52:00 PM | Posted in Broking Firm Views - Sector Report read full news
India Consumer - Q1 Review: Tepid sales, rich valuations - RCML

Our consumer universe posted Q1FY17 net sales/EBITDA/adj. PAT growth of 8.3%/11.6%/12.7% YoY. Volumes remained tepid while EBITDA margins expanded 85bps YoY to 22% (RCMLe: 22.1%) driven by soft input costs. We believe sales growth would remain anaemic in FY17. Also, margins and valuations look to be at peak levels, leaving little room for upsides. We reiterate our cautious view on the sector &n

10/09/2016 3:39:15 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector - Dynamic Levels

The Government is working hard towards strengthening the Financial Sector to aid in boosting the country’s economy. Needless to say, Banks are the backbone of not only the Sector but the economy as a whole. For shoring up Bank’s ability, Government has put in place a bankruptcy code, amending securitization laws and strengthening Debt recovery tribunals. Moreover, massive financial

10/09/2016 12:07:49 PM | Posted in Broking Firm Views - Sector Report read full news
Infrastructure - Better liquidity scenario for the companies - Prabhudas

We hosted Mr Abizer Diwanji – Senior Partner, Ernst & Young to discusses the impact of recent decision of “The Cabinet Committee on Economic Affairs for the government to pay 75% of the arbitral award amount to an escrow account against margin free bank guarantee, in those cases where the award is challenged”.

 

* Move to improve liq

9/09/2016 4:00:28 PM | Posted in Broking Firm Views - Sector Report read full news
Chemicals and Specialty Chemicals - Leaders’ Talk - Emkay

Key highlights of interviews

* S H Kelkar, a leading player in fragrances and flavours industry is targeting for long-term revenue growth of 15% CAGR. The growth will be supported by addition of new clients in its international business and increase in utilisation rates (current ~45%)

* Advanced Enzymes, present into the niche enzyme segment

9/09/2016 3:53:28 PM | Posted in Broking Firm Views - Sector Report read full news
Pharmaceuticals - Q2CY16 DMF update: Some interesting filings - Emkay

* Q2 CY16 DMF filings reveal Indian companies filed for 44% of total filings during the quarter, in line with the 45% aggregate in CY2015 and CY2014. Cumulatively Indian companies filed for 59 molecules in Q2 CY16 compared to 84 in Q1 CY16

* Lupin expanded its phosphate binder portfolio and is the first DMF filer for– Sucroferric Oxyhydroxide (gVelphoro). Lupin is currently the

8/09/2016 6:03:31 PM | Posted in Broking Firm Views - Sector Report read full news