Banking Sector Update Flattish performance as high provisions for bad loans - Kotak Sec

Stable performance.

A broadly similar performance to 4QFY17 is expected though better treasury income and NII growth would help offset a high provision requirement for bad loans. We expect volatility in NPL recognition across banks as a few large corporate exposures are likely to slip while we await to see the impact of RBI’s new provisioning no

6/07/2017 2:03:34 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector Update Revenues on recovery path: Will VoLTE feature phone disrupt it? - ICICI Sec

Revenues on recovery path: Will VoLTE feature phone disrupt it?

Q1FY18 mobile revenue likely to be stable QoQ indicating some recovery for Bharti Airtel (Bharti) and Idea Cellular (Idea) on the back of strong volume growth, but realisations continue to shrink. Though their ARPUs remain on a downtrend, the decline has significantly decelerated. Reliance

5/07/2017 11:13:46 AM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update Modest revenue growth, c/c tailwind of 30-80 bps and EBIT margin decline - Kotak Sec

Weakness persists.

We expect Tier 1 IT companies to report muted growth in a seasonally strong quarter due to lack of much anticipated financial services kicker and slower pace of large deal closures. Margin headwinds exist from Rupee appreciation and wage revision. Infosys will have the highest and Tech Mahindra the weakest growth on organic c/c basi

4/07/2017 2:31:15 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update TANGEDCO solar bid finalized at Rs3.47/unit - Emkay

TANGEDCO solar bid finalized at Rs3.47/unit

* Generation increased 7.2% YoY in May 2017 (excl. renewables) driven by rise in demand from the onset of peak summer. Growth was fuelled by 6.8% YoY and 15.8% YoY rise in generation across the Cal based plant and Hydro plants respectively.

* The overall industry PLF declined 246 bps YoY to 53.7% (e

4/07/2017 2:25:24 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector Update Air India on the block-can the elephant dance - ICICI Sec

Please find attached report on Aviation sector.

Yes, it can and if there was any opportune time, it is now. The singular concern for any suitor of Air India is its overleveraged balance sheet and much will depend upon the ability of the Government to monetize the assets. Airline industry right now enjoys multiple tailwinds which has considerably de-ris

3/07/2017 2:48:00 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector Update Retail loan growth: the only game in town - Kotak Sec

Retail loan growth: the only game in town.

FY2016 data reaffirms our broad hypothesis that private banks continue to focus on retail loans to drive growth. However, the growth was balanced between average ticket size and volume for FY2016 although the past 5-year data was skewed more towards increase in average ticket size. The initial discussion of GS

1/07/2017 3:06:43 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update Long-term fundamentals not as rosy as sentiment suggests - ICICI Sec

Midcap IT: Long-term fundamentals not as rosy as sentiment suggests

* Midcap IT has failed to capitalise on “Two-speed” IT. While it is intuitive to believe mid-size IT services companies can grow revenues and EBITDA materially faster than their large cap counterparts given their small base, reality is far from it. Though o

1/07/2017 12:31:43 PM | Posted in Broking Firm Views - Sector Report read full news
Government collected INR5.2t from petroleum sector in FY17- Motilal Oswal

Government collected INR5.2t from petroleum sector in FY17

Petroleum products unlikely to be included under GST even at a later stage

* It is generally argued that the states appealed to keep key petroleum products out of the GST ambit, citing them as their main source of income. However, the center’s dependence on pet

30/06/2017 4:56:44 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update Another tough year for Indian IT - Kotak Sec

Another tough year for Indian IT.

Our conversations with Indian IT companies, consultants and the ecosystem indicate another tough year for the industry. Muted spending, slow pace of deal closures, continuing captive shift, share and lack of much anticipated kicker to financial services spending are the contributing factors. These will lead to marginal

30/06/2017 4:45:49 PM | Posted in Broking Firm Views - Sector Report read full news
Metal and Mining Sector Update Aluminum pricing the bull and the bear of it - Kotak Sec

Aluminum pricing—the bull and the bear of it.

Supply side reforms in China markets remain the most important factor in setting an aluminum pricing trajectory. Given the large deficit outside China, prices can either (1) rally on meaningful capacity closures later this year or (2) pull back in case of disappointment as current firm prices are fac

30/06/2017 4:41:53 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update Shifting landscape transmitting power is better than moving coal - ICICI Sec

Shifting landscape – transmitting power is better than moving coal

Reason for the report: Sector update

India, in recent years, has been on a transmission infrastructure creation spree, in its attempts to overhaul the existing setup, electrify the entire country and create adequate power transmission capacity to meet th

29/06/2017 5:33:54 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update Sprouts of improvement visible, but data inconsistencies cause discomfort - ICICI Sec

Sprouts of improvement visible, but data inconsistencies cause discomfort

Reason for the report: Sector update

In this report, we take a look at how the various states are faring on the operational and financial parameters tracked under the Union government’s Ujwal DISCOM Assurance Yojana (UDAY), and the improvement the

29/06/2017 5:20:07 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update Q1 unlikey to assuage investor concerns on demand - ICICI Sec

Q1 unlikey to assuage investor concerns on demand

* Expect revenue growth in Q1FY18 to be softer relative to typical strong seasonality. We expect Q1FY18 to be another quarter where demand trends will be on the softer side of seasonality with each company witnessing near-term challenges in different sectors and verticals. TCS is seeing

29/06/2017 9:39:40 AM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update Accenture tightens revenue growth guidance band - Kotak Sec

Accenture—tightens revenue growth guidance band.

Accenture reported c/c revenue growth of 7% for May 2017 (3QFY17) quarter, at the upper-end of guidance band. However, the company tightened FY2017 revenue growth guidance band to 6-7% from 6-8% earlier with the tightening capturing slower-than-expected initiation of new projects due to continued u

23/06/2017 1:50:51 PM | Posted in Broking Firm Views - Sector Report read full news
Metals and Mining Sector Update India Steel on a recovery path - Kotak Sec

India Steel—on a recovery path.

Indian steel markets started FY2017 on a weak note with muted demand (+4%) due to lower off-take from the construction sector. Trade protection measures remain effective and have largely curtailed steel dumping. The recent weakness in global steel and raw material prices has led to correction in Indian steel price

23/06/2017 1:46:09 PM | Posted in Broking Firm Views - Sector Report read full news
Real Estate Sector Update Annuity asset plays remain the preferred bet - Emkay

Annuity plays remain the preferred bet

* In March 2017 we had highlighted our preference for annuity based plays based on our thesis of continued leasing traction in the Indian office market, retailers preference for well managed malls and an uptick in occupancies for the hotel industry. Since then, the BSE Realty Index has delivered returns of 34% in the last 3 months with indiv

23/06/2017 1:35:48 PM | Posted in Broking Firm Views - Sector Report read full news
Oil and Gas Sector update Lacks synergies but supportive for ONGC`s valuation - Emkay

ONGC+HPCL= Lacks synergies but supportive for ONGC’s valuation

* The deal will allow ONGC to navigate periods of oil price downturns relatively smoothly, as refining margins typically expand during such periods. In addition, the enhanced size of the combined entity can be leveraged to some extent while competing with international giants.

23/06/2017 12:23:05 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update US drug pricing task force spells bad news for generic companies - Emkay

US drug pricing task force spells bad news for generic companies

Key highlights

 As per news reports, the US administration has put together a Task Force to rein in drug prices, which the new administration had repeatedly talked about during last year’s election campaigning {Link here} and {Link here}. The task force has a mandate t

22/06/2017 5:56:18 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update GIC`s threat is here to stay and intensify - Emkay

*   Discussions with several industry participants continue to provide incremental evidence on the increasing preference for GIC’s, as we revisit our thesis on the resurgence in GIC/Captive activity.

*  Industry data and news flow over the past 12 months continue to reflect both expansion and new Captive set-ups (FY17 saw announcement of 50+ new GIC operations). GIC re

21/06/2017 5:57:15 PM | Posted in Broking Firm Views - Sector Report read full news