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
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