Metals & Mining - Kotak Sec

The base metal prices varied across the products in the month of August 2016, with zinc continue to remain strong. Copper prices declined, while aluminium closed with marginal gain. On the ferrous front, Steel prices in China reversed their fall in the last two months on the back of a marginal uptick in demand and capacity shutdown. Steel prices globally rose across the region in the range of 1

8/09/2016 5:44:28 PM | Posted in Broking Firm Views - Sector Report read full news
Banking & Financial Services - NBFCs: FY16 Annual Report Analysis - Emkay

We analyzed the annual reports of asset financing NBFCs under our coverage universe, and the key findings are as follows:

 

Yields under pressure; lower cost of borrowings help augment NIMs:

Our analysis of the breakup of core interest and other income indicates that the lending yields for most NBFCs under our

8/09/2016 5:38:59 PM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector - Monthly round up – Sep’16 - Emkay Global

Rise in Crude oil prices:

Crude oil prices are up MoM by 0.3%, mainly because of the expectations from the meeting in September for freezing output. Also recently, a brewing storm in the Gulf of Mexico forced the oil producers to suspend their activities, leading to a slight rise in prices. Light-Heavy (L-H) differential declined by $0.3/bbl MoM to $3.0/bbl.

8/09/2016 4:43:51 PM | Posted in Broking Firm Views - Sector Report read full news
Automobiles Sector- Two-wheeler growth accelerates; CV volumes remain under pressure - Sharekhan

Automobile sales for August 2016

The two-wheeler (2W) industry gained momentum in August 2016 with a robust 20% YoY volume growth during the month. Improved rural sentiments due to a normal monsoon after two consecutive droughts and hike in government employees’ salaries along with arrears resulted in sharp improvement in 2W volumes. The Passeng

5/09/2016 12:05:49 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector - MIP uncertainty continues; Zn highest since May’15 - Emkay

Key observations

*  Global steel prices continued to improve in the month of August, as some buying have reported emerged in most of the parts. Slight decline in Chinese output seems also helped. Domestic prices too after weakening a bit started stabilizing in the later part of August

*  The CIS (FoB Black Sea) HRC prices rose by 2

3/09/2016 5:49:27 PM | Posted in Broking Firm Views - Sector Report read full news
India Cement Sector - Religare Capital Markets Ltd

Q1 Review: Prices up, demand to follow in H2FY17

Higher realisations (+4% QoQ, flat YoY) and lower petcoke costs boosted EBITDA/PAT growth of our cement universe by 16%/25% QoQ (46%/80% YoY). Revenue was up 6% YoY backed by volume growth of 7%. Aggregate EBITDA/t expanded to Rs 926/t (+Rs 170 QoQ) as power & fuel cost dropped 16% QoQ. With recent s

3/09/2016 5:15:37 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Dealers check: Seasonal Overhang Persists; Outlook Remains Strong - Reliance sec

All India average cement prices have corrected by ~1.5% month-on-month (m-o-m) in Aug’16 mainly on seasonal effects as heavy rains and floods in most parts of the country impacted construction activities. Notably, Western & Central regions witnessed maximum correction to the extent of ~3-4% m-o-m (Rs150-200/tonne) as excess rains and floods in many parts of UP (other than Western UP)

3/09/2016 4:28:03 PM | Posted in Broking Firm Views - Sector Report read full news
Financial Sector- The Rising Rock Stars Of the Time - Dynamic Levels

The Financial Sector has been undergoing certain financial reforms of late. NBFCs are still showing quite a lot of room for growth. Banking sectors have been benefitting from the Government’s decisions. Recently, Honorable Finance Minister Arun Jaitely eased up rules for starting small finance banks and payments bank. RBI allowing Banks to sell their stressed assets to NBFCs, Financial in

3/09/2016 4:26:48 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Ancillary Sector - Preparation for Festive Demand - Reliance sec

Preparation for Festive Demand

auto ancecryWhile PV and Two-wheeler players reported robust growth in volume in August 2016, the M&HCV segment continued to show weakness. We believe that the dispatches did not necessarily reflect the actual demand scenario, as the OEMs have built-up inventory for upcoming festive seasons, given festive season is ab

3/09/2016 4:10:09 PM | Posted in Broking Firm Views - Sector Report read full news
Sugar Industry: A Step-In or a Step-Out - Dynamic Levels

Sugar Industry: A Step-In or a Step-Out

The rising price of sugar has been a reason for concern in the Country. According to a report published by Rabobank, sugar prices have been on a roll for the last six months and it is likely to hold its zeal in the near to medium term. As a result of which the food and beverage (F&B) companies have been expos

3/09/2016 4:01:03 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector - Banks-The New Investment Gems - 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

3/09/2016 1:34:05 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector Update - Angel Broking Pvt Ltd

Jio’s aggressive pricing could hurt competition

Reliance Industries Chairman Mukesh Ambani has today revealed details of Reliance Jio’s launch on the occasion of the company's 42nd AGM. Reliance is planning a very aggressive launch of the Jio by resorting to heavy price cutting. The company has already incurred a relatively high sum of

3/09/2016 11:52:53 AM | Posted in Broking Firm Views - Sector Report read full news
Monthly Auto Sales - August 2016 - SPA Securities Ltd

Auto sales for the month of August clocked growth of 17% YoY led by 20% YoY growth in 2 wheelers and 12% growth in PV sales. CV sales stood flat and 3 wheeler sales declined by 15% YoY, but registered a growth of 1% on a MoM basis. Although exports of Bajaj Auto and TVS Motors have recovered from the lows (up 17%), but still the declining trend in export continues due to lack of availability of

2/09/2016 5:18:22 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector - Passenger vehicles, 2Ws in fast lane, MHCVs hit a speed breaker - LKP Securities Ltd

Passenger vehicles, 2Ws in fast lane, MHCVs hit a speed breaker

Month of August saw a good traction in the domestic 2W and passenger vehicles sales, while MHCV growth fell further. MHCV sales growth has been witnessing a falling trend since the month of June on high base of last year, implementation of 1% TCS (Tax Collected at Source) and overall slowd

2/09/2016 4:09:31 PM | Posted in Broking Firm Views - Sector Report read full news
Oil and Gas Sector - Muted core earnings - Emkay

*  Core earnings of OMCs adjusted for inventory gain came in at Rs10.1, Rs32.5 and Rs13.7/share for BPCL/HPCL/IOCL respt., against the reported EPS of Rs18.1/62/34/share

*   As expected, decline in Auto and Industrial fuel margins have hit BPCL,HPCL and IOCL margins by 39%, 28% and 26% qoq to Rs 4218, Rs 4410 and Rs 3695/mt respectively

*  Adjusting for refini

2/09/2016 2:37:10 PM | Posted in Broking Firm Views - Sector Report read full news
Telecommunications - Jio grabbing the pie- A pricing destruction or a bait - Emkay

*  Reliance Jio today announced preview launch of services from 5th September’16 and much awaited commercial launch on 31st December 2016. All services on Jio are offered free during preview period till 31st Dec’16

*  Jio announced life time free voice services across networks including roaming. Free voice offering is more negative as compared to steep cut in dat

2/09/2016 1:54:42 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials- Large credit remains subdued, but green shoots in small credit-Prabhudas

RBI’s monthly sectoral deployment data shows that though credit growth improved slightly to 8.3% YoY in Jul’16 compared to a growth of 7.9% YoY as at Jun’16, the overall growth continues to remain weak on tepid offtake from industrial segment. Improved growth was from retail (18.8% YoY, 0.7% MoM) & Agri (13.4% YoY, 0.9% MoM), while services (10.8% YoY, ‐0.6% MoM) & i

1/09/2016 4:41:07 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Lower costs drive earnings; Q2 impacted by heavy monsoon - Prabhudas

Cement companies in our coverage universe reported earnings in line with our expectations. Earnings were driven by lower than expected costs (primarily on account of sharp fall in energy costs), mitigating the impact of lower than estimated realisations. Sales volume in 1QFY17 for our coverage universe (57% share in aggregate volumes of the listed cos) grew 6.5% YoY, ahead of 5.8% growth in res

1/09/2016 4:34:31 PM | Posted in Broking Firm Views - Sector Report read full news
Healthcare Sector - IPM growth recuperates in July 2016 - Motilal

IPM growth recuperates in July 2016

* Indian pharmaceutical market’s (IPM) growth recovered to 9.5% YoY in July 2016 (from 6.3% YoY in June), after being impacted by external factors like FDC ban and NLEM 2013 since 3-4 months.

* Moving annual (MAT) growth for July stood at 10.3% YoY, primarily driven by pricing increase of 4.5% YoY; v

1/09/2016 4:28:47 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector Update - CCI Issues Fresh Order Against Cement Companies - Kotak

CCI ISSUES FRESH ORDER AGAINST CEMENT COMPANIES

* CCI in its fresh order has imposed penalties on 11 cement companies for indulging in acts of cartelization.

* Competition Appellate tribunal (COMPAT) had asked CCI in Dec, 2015 to conduct fresh investigations. COMPAT had sat aside the original order of CCI and directed it to issue fresh order

1/09/2016 4:22:25 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Worse seems to be over, though challenges remai - Prabhudas

Analysis of 1QFY17 results for the PL BFSI coverage universe threw up some interesting observations. (1) Top line headwinds continued with loan growth remaining weak, and income de‐recognition continuing on high slippages, (2) PPoP growth was supported by strong treasury gains especially for PSBs contributing ~13% of PPOP, (3) Most banks continued to show weak asset quality trends with high s

1/09/2016 4:17:04 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector Review Q1FY17 - Kotak Securities Ltd

Cement Sector Review Q1FY17

* Commissioning of new capacities and demand revival from government related projects led to healthy growth in dispatches during the quarter.

* Realizations remained under pressure except for companies which have exposure in northern and central region where prices had remained fairly strong during Q1FY17.

1/09/2016 4:09:59 PM | Posted in Broking Firm Views - Sector Report read full news
Oil and Gas Sector Update - Prabhudas Lilladher Ltd

* Risk –reward continue to remain favourable:

Risk‐reward for the OMCs continue to remain favourable despite sharp outperformance over benchmark indices over the past 12 months. FY16 consolidated earnings growth of 109% YoY has set a high benchmark for the OMCs to repeat, despite inventory losses of Rs133bn; adjusted FY16 EPS 21‐67% higher th

1/09/2016 4:05:41 PM | Posted in Broking Firm Views - Sector Report read full news