Construction Sector Update - Kotak Securities Ltd

RELIEF IN CLAIM SETTLEMENTS

Under the proposal put forward by NITI Aayog and approved by the CCEA

A) Government agencies would release 75% of the arbitral award amount to an escrow account against margin free bank guarantee, in those cases where the award is challenged and had initially come in favour of cont

1/09/2016 4:00:50 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile Sector - Eyes of Festive Demand - Reliance sec

* Key factors which affected the Auto Sector in 1QFY17 were: (1) change in accounting standard, and (2) unfavourable foreign currency movement.

* Cumulative performance was dragged by TML, as excluding TML, the Auto Universe performed better. ff Our Two-wheeler universe performed better compared to than that of Four-wheeler universe.

* Though our Auto Universe registered hea

31/08/2016 4:02:55 PM | Posted in Broking Firm Views - Sector Report read full news
Accumulate NIIT Technologies Ltd For Target Rs.560.00 - Emkay

*  NIIT Tech has announced the exit of Mr Sudhir Chaturvedi, COO and a key lynchpin in the transformation agenda that the company has undertaken through recent years

*  Internal like order intake in International Geographies (up 18% in FY16 as overall intake was flat) reflect initial success under the COO. Lower Government business benefitted margins immensely but was a drag

30/08/2016 4:28:17 PM | Posted in Broking Firm Views - Sector Report read full news
Healthcare - IPM growth recuperates in July 2016 - Motilal Oswal

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; vo

24/08/2016 4:04:56 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

24/08/2016 3:58:55 PM | Posted in Broking Firm Views - Sector Report read full news
Telecommunications - Hoping for Sensible and Selective bidding - Emkay

* Impending spectrum auction is expected to be far less aggressive as compared to last two rounds as 1) there will not be any pressure of renewals, 2) enough spectrum supply and 3) focus will be on filling spectrum gaps with 3G or 4G spectrum in most of the circles

* Exorbitantly high reserve price of 700Mhz would refrain operators from participation. Lack of participation could resul

24/08/2016 3:52:52 PM | Posted in Broking Firm Views - Sector Report read full news
Robust performance continues on cost benefits - Reliance sec

Sector Review

Cement industry’s 1QFY17 performance was strong and exceeded our estimates on operating front mainly on account of better-than-expected reduction in operating costs mainly led by sharp fall in Power & Fuel costs (down by 23% yoy & 7% qoq on per tonne basis). Though demand environment softened on sequentially, it grew modera

24/08/2016 1:18:39 PM | Posted in Broking Firm Views - Sector Report read full news
Consumer goods and services Sector Update - Q1FY2017 earnings review - Sharekhan

Q1FY2017 result review

Revenue growth remains in high single digits; largely volume led:

As anticipated by us, most of the FMCG companies under our coverage have posted single-digit revenue growth (barring companies such as Emami and Zydus Wellness) in Q1FY2017, as the demand environment is yet to revive in th

23/08/2016 5:48:26 PM | Posted in Broking Firm Views - Sector Report read full news
Banking and NBFC Sector Update - Q1FY2017 earnings review - Sharekhan

Q1FY2017 result review

Public Sector Banks’ performance still crimped by asset quality stress:

Q1FY2017 marked one of the weakest quarters for the banking sector in recent times, especially for the Public Sector Banks (PSB). Overall, PSBs continued to witness dismal topline and earnings growth on a seq

23/08/2016 5:42:21 PM | Posted in Broking Firm Views - Sector Report read full news
Tracking World Steel Production - India tops July output growth - Emkay

Capacity utilization level fell on MoM basis indicating possible impact of controlled output and curtailment of capacities. On YoY basis however, major producing countries still witnessed higher output for the month of July. India remains on the top of the chart as far as the production growth is concerned. With strong output growth and weak demand, prices remain under pressure.

* Wor

23/08/2016 5:21:53 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Deposit growth picks up to 9.8% - RCML

As per RBI data, credit growth for the fortnight ended 5 Aug was largely stable at 9.8% YoY while deposit growth increased to 9.8% vs. 9.5% the previous fortnight. Investment growth improved sharply to 7.3% YoY from 6.4% earlier, driving SLR higher to 27.1%. Credit growth has been weak over the last few months due to low corporate demand and a lack of fresh investments. We do not see material i

23/08/2016 4:09:27 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank holds Bullish momentum - GEPL

NIFTY PSU BANK   Current Close: 3135.65    Trend : Positive

Observation

* NIFTY PSU BANK is one of the most outperforming sector amongst the indices last week, as it has moved up sharply by 5.91%, as against a flattish move of -0.06% in benchmark NIFTY 50.

* In the previous week, the Sector has cleare

23/08/2016 12:29:29 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector - Pricing pressure bottoming out - ICICI Sec

Reason for report: Sector Update

Domestic Airlines have been stressed by intense pricing pressure during most of the 1HCY16. However, there are signs of reversal in the same with unusually strong recovery witnessed in August in particular. Our case is based on end to end fare consideration and thus do not include the effect of the spike in fares during

22/08/2016 3:57:04 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector - July-16 domestic air passenger growth at 25.6% YoY - Motilal Oswal

Domestic load factor at 84%; IndiGo’s domestic ASK/RPK share highest

* Domestic air passengers in India grew 25.6% YoY to 8.5m in Jul-16 (v/s +29.8% in Jul- 15; +21% in 1QFY17; ~22% in FY16). However, we believe this strong growth would be at the cost of yields, as seen in headline fares.

* While Jul-16 ASK growth stood at 20.2% YoY (v

22/08/2016 3:42:55 PM | Posted in Broking Firm Views - Sector Report read full news
Jewellery - Structural play; better earnings growth momentum ahead - ICICI Sec

Reason for report: Sector update

As highlighted in our note on jewellery sector – Near term concerns vs medium term gains dated 29th March 2016 – we believe the ongoing albeit silent structural change in favour of organised jewellers remains one of the best themes to bet on for long-only investors. We reckon, the street is overly concerned

22/08/2016 3:34:25 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Higher oil prices needed for a change in outlook - RCML

India Energy

Higher oil prices needed for a change in outlook

 As Brent oil prices move closer to US$ 50/bbl, upstream PSUs (especially ONGC) could see their gains capped by a higher cess outgo. Nonetheless, we believe OINL (and GAIL) remain the best bets considering their attractive valuations. Under-rec

22/08/2016 3:27:32 PM | Posted in Broking Firm Views - Sector Report read full news
Sugar Sector - Is the sweetness in the Sugar Sector for real? - Dynamic Levels

It has been a very sweet monsoon for sugar companies with their stock prices rallying over 50-200%. Investors have been scrambling to buy Sugar companies stock. But the question is, how long will the sweetness last? The month of June witnessed nine sugar stocks emerging as heroes of the street over the hopes of a good monsoon. The stock prices in sugar sector skyrocketed over 20% in past two mo

20/08/2016 4:26:46 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Update > Q1FY2017 earnings review - Sharekhan

Q1FY2017 results review

Auto universe maintainQ1FY2017 results review Auto universe maintains double-digit revenue growth given the uptrend in the volumes:

Sharekhan’s Auto universe maintained double digit topline growth trend for the second consecutive quarter (topline grew by 9.6% YoY in Q1FY2017). T

20/08/2016 11:23:34 AM | Posted in Broking Firm Views - Sector Report read full news
Power Sector - Muted volume in July; rising coal prices is advantage Tata Power - ICICI Sec

Reason for report: Sector update

Power generation growth for July’16 stood at just 1.5% YoY after registering strong increase of 9.2% YoY in Q1FY17, providing little to cheer about to the power sector. However, we believe the sharp increase in international coal prices is positive for Tata Power (TPWR), given its ownership of mines in Indonesia;

17/08/2016 5:32:35 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector- Domestic Steel benefitting from mercantilism - ICICI Sec

Reason for report: Sector update

Benefits of regulations restricting imports continue to help the domestic steel industry as duties now exist in multiple ways from safeguards, anti-dumping duty and also the minimum import price. This heightened mercantilism augurs well for steel players. On a cumulative basis, these duties now cover 80-90% of the produ

17/08/2016 5:07:43 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Consumption uptrend to benefit cyclicals - RCML

Recent reforms have transformed downstream companies into an attractive bet on the India consumption growth story, especially oil marketing companies (OMCs). Benefits of reforms would eventually reach upstream companies as well, but not before a sharp rally in oil prices (to +US$ 60/bbl). RIL offers one of the best plays on the improving oil demand outlook through its refining and petrochemical

17/08/2016 4:42:17 PM | Posted in Broking Firm Views - Sector Report read full news
Electricity, mining drive Jun IIP to 2.1% - July CPI worsens to 6.1% on high food prices - RCML

IIP growth climbed to an eight-month high of 2.1% in Jun’16 led by healthy electricity growth and a pick-up in mining activity. In terms of inflation, the CPI worsened to a 23-month high in Jul’16 as food inflation remained elevated (8.4%). Despite a good monsoon, we see upside risks to inflation and thus limited room for further rate cuts. However, the stance of the new RBI governo

17/08/2016 4:18:02 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Pharma continues its down trend with support only around 11000 - GEPL

NIFTY PHARMA   Current Close: 11362.40    Trend : Negative

Observation

* NIFTY PHARMA is the most underperforming amongst the sectoral indices, as it closed down by 2.71% at 11362.40, as against a flattish move of -0.13% in benchmark NIFTY 50.

* Sector has been facing a strong resistance of medium te

17/08/2016 3:47:39 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank holds Bullish momentum - GEPL

NIFTY PSU BANK   Current Close: 2960.70    Trend : Positive

Observation

* NIFTY PSU BANK is one of the outperforming sectors amongst the indices last week, as it has moved up by 1.57%, as against a flattish move of -0.13% in benchmark NIFTY 50.

* In the last week, the Sector has created a FRESH 5 wee

17/08/2016 3:43:51 PM | Posted in Broking Firm Views - Sector Report read full news
Building Materials - Leaders Talk - Emkay Global

Key highlights of interviews

* Both the leading tile companies namely Kajaria Ceramics and Somany Ceramics are positive on higher growth in H2 FY17 given that imposition of anti-dumping duty will bring down imports further and festive season will boost demand

* Leading players in plywood industry – Century ply and Greenply are currently

15/08/2016 11:59:35 AM | Posted in Broking Firm Views - Sector Report read full news