Pharma Sector - Q1FY17 results preview - ICICI Sec

We expect pharmaceutical companies to post mixed set of results for the quarter ended June'16. Strong performance would be registered by: 1) Lupin due to Gavis integration, exclusivity of Glumetza and price hike in Fortamet, 2) Sun Pharma due to exclusivity of generic Gleevec, and 3) Glenmark on the back of product approvals in US and low base. Whereas, we expect weak results by 1) Dr Reddy

15/07/2016 1:34:43 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - Q1FY17E: Positive newsflow from US markets; currency to aid revenues….limited upside - Karvy

Key Highlights of the Quarter

Domestic formulations have clocked single digit growth on back of NLEM 2015 and FDC (Fixed Dose Combination) directives while better performance in emerging markets on a Q-o-Q basis and better newsflow from the US markets are the key takeaways for the quarter.

The domestic formulations business

15/07/2016 1:24:01 PM | Posted in Broking Firm Views - Sector Report read full news
SEB visit diaries - Vol. 8 : Telangana – Preparing for a demand surge - ICICI Sec

Reason for the report: Takeaways from visit to Telangana SEB

We visited Telangana and met with the SEB officials to assess the situation on ground. The purpose of visit, besides understanding the progress on government various initiatives to improve SEB health, was to understand the reasons for ordering large generation capacity despite significant ove

15/07/2016 1:14:49 PM | Posted in Broking Firm Views - Sector Report read full news
Paint Sector - Deco volume growth expected healthy for Q1FY17 - ICICI Sec

Paint companies under our coverage are likely to continue with strong growth momentum in volumes particularly in the decoratives segment post a strong H2FY16. In Q1FY17, the industry leader Asian Paints is likely to post a volume growth of 11-12%. Berger Paints is expected to show similar growth; however, Kansai Nerolac is expected to post 10-11% overall volume growth due to lower growth in ind

15/07/2016 1:05:47 PM | Posted in Broking Firm Views - Sector Report read full news
Metal & Mining Sector - Benefit of higher commodity prices to continue - Reliance sec

Sector Preview

1QFY17E is expected to be strong for both ferrous as well as non-ferrous companies. Domestic steelmakers are slated to report a sharp improvement in earnings due to higher steel prices and increased volumes due to reduced import pressure post the introduction of MIP in 4QFY16. As far as non-ferrous companies are concerned, earnings are

15/07/2016 12:34:26 PM | Posted in Broking Firm Views - Sector Report read full news
India Strategy - Q1FY17 Results, will we see an improvement? - Prabhudas Lilladher Ltd

The expectations of a good monsoon have seen the market rally especially in case of the bottomed out companies and sectors. The time is now set for the Q1FY17 results and we expect to see a beginning in terms of improvement corporate performance.

Our universe of stocks is expected to report a better performance in Q1FY17. While the revenue growth is expected to be muted 1.3% YoY and 0

14/07/2016 5:53:20 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector - FY16 loan mix: Unsecured retail loans drive market share gains - ICICI Sec

Overall loan growth remained muted for FY16 with retail loan growth showing relatively better momentum. To further understand the behaviour of the retail book and overall market share, we analysed loan mix for 29 listed banks (covered and non-covered) for FY16, constituting ~90% of the systemic loan and with total market cap of US$180bn. The key highlights of our research are: 

&

14/07/2016 5:13:19 PM | Posted in Broking Firm Views - Sector Report read full news
India IT Services - Beyond Q1 Margin recovery on a weak wicket - RCML

Growth has spiraled down for our large-cap IT universe in FY16, with sector margins weak despite INR depreciation. We expect margins to witness a sizeable drop in Q1 and continued pricing pressure to make margin recovery difficult through FY17. Slowing growth would continue to weigh on margins, and in the absence of sharp INR deprecation in FY17, risks to margins and earnings remain high. We re

14/07/2016 5:08:52 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG Sector - Improving revenues; stabilizing margins - ICICI Sec

We estimate FMCG companies under our coverage to report an aggregate revenue growth of 9% YoY in Q1FY17 (vs 5.5% in Q4FY16, 1.1% in Q3FY16 and - 0.3% in Q2FY16). The jump in revenue growth is mainly due to better growth expected in Nestle. This quarter marks the anniversary of Maggi noodles crisis. We expect gross margin expansion for companies under our coverage to continue in Q1FY17, albeit a

14/07/2016 4:41:54 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Q1FY17E: Strong volumes to drive performance - Karvy

Aggregate volume growth of coverage is estimated at ~10% YoY in Q1FY17

Industry volume growth for Q1FY16 is expected to be at ~4% YoY, slowing down from significant growth of ~11% YoY seen in Q4FY16. Cement production (as per eight core industries data) grew by 3.4% YoY during Apr-May 2016 as compared to 8% YoY during H2FY16 (which was primarily led by

14/07/2016 4:27:13 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Price recovery and favourable demand to aid 1Q performance - ICICI Sec

1QFY17E Sector Preview

Improved realization environment along with better demand on yearly comparison (despite softening sequentially) is likely to cast a positive impact on the performance of cement companies in 1QFY17E, as the companies under our coverage are likely to witness earnings improvement to the tune of ~44% yoy. Given the visible hardening

14/07/2016 4:19:10 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector - New aircraft orders to have no near term impact - ICICI Sec

Reason for report: Sector update

aircraft deal is usually signed during this event and post the first two days, Airbus continues to dominate the South East Asian market with Go Air having signed a preliminary agreement for 72 additional A320 neos while Air Asia placed a firm order for 100 A321neos. The big SpiceJet deal remains in the offing which woul

14/07/2016 4:12:48 PM | Posted in Broking Firm Views - Sector Report read full news
India Quantitative - Foreign fund-flow tracker - Kotak Sec

KIE’s foreign fund-flow tracker gives a comprehensive view of the market-flow by listed funds into India and its emerging market (EM) peers. These market participants are further classified based on their investment styles (passive ETFs or active non-ETFs) in an attempt to understand the intent and sentiments governing the flows.

 

Key constituents

14/07/2016 4:02:31 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Price survey, production analysis and capacity details - Emkay Global

* In the North region, cement prices remained flat in NCR and there was a decline of Rs5- 30/bag in Rajasthan. Demand continues to remain weak in the region. Prices in Punjab and Haryana improved between Rs5-20/bag. Cement dealers expect some weakness in prices due to weak demand and monsoon season

* In the Central region, there was a price increase of Rs10-30/bag in most of the citie

14/07/2016 3:57:28 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector - Metals 1QFY17 preview - Motilal Oswal

Metals 1QFY17 preview

Aluminum outperforms; Raising TP for Hindalco, JSW Steel, Nalco and Vedanta

* The outlook for base metal prices has improved. We are raising LME assumption for Zinc from USD1,850 to USD2,000 for FY18E and Aluminum from USD1,528/1,541to USD1,609/1,650 for FY17/18E, respectively.

14/07/2016 3:34:07 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile Sector - Eye on EBITDA margin - Reliance sec

Result Expectations / Sector Preview

In 1QFY17, the leading four-wheeler players are expected to register contraction in EBIDTA margin as gross margin is expected to squeeze on rise in commodity prices. Tata Motors’ JLR business is likely to register normalized operating performance and hence overall performance of our coverage universe may see

14/07/2016 1:12:39 PM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector- Strong Buying Seen In Metal Shares Worldwide - Dynamic Levels

Huge buying was noticed in the metal index after Alcoa reported its quarterly result which beat analyst expectations. Alcoa is the largest US Aluminum producer. The company announced it second quarter results on 11th July 2016. This has changed the overall sentiment for metal shares globally.

Nalco Share Price surged 12.37% intraday. The stock which was trading at Rs. 43.80 on 8th Jul

13/07/2016 6:00:51 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Refinancing risk to hurt bank earnings, growth - RCML

We attended a conference hosted by India Ratings & Research on the refinancing risk faced by corporates. The rating agency highlighted that 240 corporates with a total debt of Rs 11.8trn are exposed to significant refinancing risk during FY17. Corporates classified as stressed or with an elevated risk of refinancing are highly leveraged and need significant debt reduction (4x) and equity in

13/07/2016 5:37:51 PM | Posted in Broking Firm Views - Sector Report read full news
Sanitaryware industry Update - Testing times - ICICI Sec

Reason for report: Initiating coverage

The Indian sanitaryware industry, currently pegged at Rs35.6bn, is growing in single-digits over the past two years as compared to 13-15% CAGR over FY10- FY14, largely due to significant slowdown in the real estate sector. Further, lower potential for consumer shift from unbranded to branded products and significa

13/07/2016 5:10:07 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY17 Results Preview - Demand improves but earnings slow as margin declines - Emkay Global

Demand improves but earnings slow as margin declines

* Following a stupendous Q4FY16, corporate earnings in Q1FY17E is expected to weaken as the benefit of margin expansion wanes even while sales growth continues to improve. Demand impulses are seen improving due to higher revenue spending of the government and better realization from rise in commodity

13/07/2016 5:03:46 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG Sector - Steady growth in earnings - Reliance sec

1QFY17 Results preview

We expect our FMCG coverage universe of 13 companies to report 10.5% growth in net sales and 19.6% growth in reported earnings for the quarter ended June’16. Excluding Nestle (base quarter was impacted due to ban on Maggi), the sector is expected to post 9.8% growth in revenues and 13.5% growth in earnings. Volume growth tr

13/07/2016 4:56:42 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - Is the tide turning positive? - Motilal Oswal

Three companies receive USFDA inspection closure reports

* In the last one year, the BSE Healthcare Index has underperformed the market index by ~10%, primarily on the back of concerns about regulatory scrutiny on key Indian pharma players. The spate of FDA actions (regulatory) on Indian companies like SUNP, DRRD, CDH and IPCA over the past 12 months h

13/07/2016 4:27:51 PM | Posted in Broking Firm Views - Sector Report read full news
Capital goods and engineering Sector Update > Q1FY2017 earnings preview - Sharekhan

Q1FY2017 result expectations

Revenue traction healthy on adjusted basis:

The revenue performance of our capital goods and engineering universe is likely to be ~6-7% in Q1FY2017. Most of the coverage companies are likely to deliver double-digit topline growth, but Crompton Greaves (CGL) is expected to witness a drop in its topl

13/07/2016 4:24:17 PM | Posted in Broking Firm Views - Sector Report read full news
Profitability Likely to Improve on Higher Generation & Rise in Margins - Reliance sec

Result Expectations / Sector Preview

Power Sector witnessed decent development in growth of generation (9.0%) yoy in 1QFY17 on the back of higher coal off take. All-India generation in Apr-Jun’16 quarter rose by 9.0% to 296bn units (BU) yoy and thermal generation was up 13.3%. Hydro generation declined by 11.5% yoy due to decrease in reservoir l

13/07/2016 4:19:05 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update > Q1FY2017 earnings preview - Sharekhan

Q1FY2017 result expectations

Steady quarter due to favorable currency movements: During Q1FY2017, INR depreciated by 7% (YoY) against USD. A weaker INR will thus support revenue growth in US generics (and to some extent will help to mitigate pricing pressure). As far as Emerging Market (EM) currencies are concerned, YoY movements were unfavorable, but there has been

13/07/2016 4:11:09 PM | Posted in Broking Firm Views - Sector Report read full news