Transportation and Logistics Sector Update - ICICI Securities

Latest data on core EXIM trade growth (defined as total exports plus total imports minus petroleum exports, and oil and gold imports in USD) continues to indicate weakness, with core imports remaining soft, while core exports showed marginal improvement post the trough levels in December 2015. The core trade deficit (in USD), which had widened significantly in FY15, has narrowed in last three m

18/06/2016 4:57:21 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector Weekly Updated - Motilal Oswal

Domestic long product prices down 3% WoW; Zinc up 4%

* Indian steel market:

Long product (TMT Mumbai) prices were down 3% WoW. Trade segment reported that SAIL has cut long product prices by ~INR500/t in June, amid weak buying activity. Sponge iron and domestic scarp prices were marginally lower WoW. Pellet p

17/06/2016 2:46:24 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector - Flying high amid good times - ICICI Sec

Reason for Report: Sector thematic and initiating coverage

benefit all the incumbent players, particularly on a benign crude price outlook. Our supply-demand model for domestic air traffic implies 14% growth in passengers as evidenced from firm aircraft orders and latest delivery schedules. With yield management becoming the singular strategy lever for

17/06/2016 2:39:50 PM | Posted in Broking Firm Views - Sector Report read full news
Insurance Sector Update - Kotak Securities Ltd

Business bounces back. After a subdued April, yoy APE growth bounced back to 26% for private players (translating to 19% yoy growth FYTD); this was largely led by higher ticket size of the business. LIC reported 22% growth on the back of higher volumes. Equity market inflows to equity mutual funds continue to remain strong; this may be driving growth in ULIPs as

17/06/2016 1:02:07 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector - Promoters get legroom on stressed assets as RBI tweaks norms - ICICI Sec

Reason for report: Sector update

The Reserve Bank of India (RBI) has introduced a ‘Scheme for Sustainable Structuring of Stressed Assets’ (SSSA) as an enhancement to its earlier Strategic Debt Restructuring (SDR) mechanism in order to ensure that adequate deep financial restructuring is done to ensure that projects have a chance of sustaine

16/06/2016 6:12:47 PM | Posted in Broking Firm Views - Sector Report read full news
Right time to ‘buy’ the T&D capex story - ICICI Sec

Reason for report: Sector update

Our thesis on continued power T&D capex and SEBs as one of the growth drivers of the T&D equipment business is further corroborated by ground feedback obtained by our Utilities team, which visited seven major SEBs. While the team expects a few resets before growth starts kicking-in for the power sector as a whol

16/06/2016 4:34:45 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - New norms on stressed assets – not a game changer - RCML

New norms on stressed assets – not a game changer

The RBI has issued guidelines on sustainable restructuring of stressed assets, which would be applicable to accounts where projects have commenced operations with more than Rs 5bn debt. Existing debt will be divided into Part A and B.

 

* Part A loans, i.e.

14/06/2016 4:27:55 PM | Posted in Broking Firm Views - Sector Report read full news
Strong AGR market share prints for Bharti Airtel and Idea - ICICI Sec

Reason for report: Q4FY16 revenue market share

Research Analyst: Sanjesh Jain sanjesh.jain@icicisecurities.com +91 22 6637 7153 INDIA In Q4FY16, the top-3 operators’ AGR market share rose to 74.6% (up 220bps YoY) driven by robust incremental AGR market share of 93.7% YoY. Bharti Airtel’s incremental AGR market share (YoY) came in strong at

14/06/2016 3:44:26 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Bank watchlists: A numbers game - RCML

Bank watchlists: A numbers game

Given the wide divergence in asset watchlist calculations, we endeavoured to streamline the lists disclosed by the top 3 banks to derive a more plausible yardstick for asset quality. Baking in our assumptions of the missing components, we arrived at stressed asset figures far in excess of those disclosed, i.e. 35% higher

14/06/2016 3:12:51 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector - ZEEL slips in Hindi GEC; Regional strong - ICICI Sec

ZEEL slips in Hindi GEC; Regional strong

Reason for report: Sector update Research Analysts: Vikash Mantri vikash.mantri@icicisecurities.com +91 22 6637 7161 Jayant Dongre jayant.dongre@icicisecurities.com +91 22 6637 7339 INDIA In the past few weeks, ZEEL’s Hindi GEC channels (Zee TV and &TV channels) have been losing market share to Colors

14/06/2016 3:04:18 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Painful quarter at net level: Tale of Two halves - Prabhudas

PL banking coverage universe continued to be a story of two halves with retail focus banks continuing to fare well, while corporate banks from both private and PSBs continuing to face head winds led by asset quality and weak loan growth. PPoP growth for our coverage marked slight improvement to ~13% YoY from 10% YoY in Q3FY16, mainly backed by better other income trends and better NII (higher i

14/06/2016 2:25:49 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Pharma continues its down trend with support only around 10300 - GEPL

NIFTY PHARMA    Current Close: 10657.60    Trend : Negative

Observation

* NIFTY PHARMA is one of the underperforming amongst the sectoral indices, as it closed down by 1.39% at 10657.60, as against a 0.62% down-move in benchmark NIFTY 50.

* Sector has been facing a strong resistance of medium ter

14/06/2016 12:32:31 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Metal enters a Breakout stage - GEPL

NIFTY METAL   Current Close: 2113.75    Trend : Positive

Observation

* NIFTY METAL is one of the top outperforming sectors amongst the indices last week, as it has moved up by 3.23%, as against a downward move of 0.62% in benchmark NIFTY 50.

* The Sector has given a major Price Range breakout @ 1960

14/06/2016 12:27:44 PM | Posted in Broking Firm Views - Sector Report read full news
India Cement Sector - Q4 Review: Volumes up, costs down; price hikes next - RCML

Q4 Review: Volumes up, costs down; price hikes next

Lower costs and high volumes helped overcome a weak pricing climate for our cement universe in Q4FY16, with EBITDA/PAT rising 31%/77% QoQ. Revenue was up 10% QoQ backed by strong 15% (17% YoY) volume growth. Aggregate EBITDA/t expanded to Rs 756/t (+Rs 86 QoQ) as power & fuel cost dropped 10% QoQ.

13/06/2016 4:57:39 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG Sector- Full-scale recovery to take time - Reliance

Full-scale recovery to take time

4QFY16 Results Review

We believe that the subdued environment – being witnessed for last 6-8 quarters – marked with weak consumer demand in FMCG sector has bottomed out. Though a full-scale recovery is still few quarters away, we expect volume growth to gain momentum, going forward. Our FM

13/06/2016 4:44:14 PM | Posted in Broking Firm Views - Sector Report read full news
IT Services -Mar 16 qtr review: Growth challenges persist FY17E likely a test on margins - Emkay

Mar’16 qtr review: Growth challenges persist; FY17E likely a test on margins

*  Stabilization in US$ revenue growth trajectory visible for TWITCH group largely due to abating cross currency headwinds as YoY constant currency growth moderated to 10.3% YoY in Mar’16 quarter V/s 12% YoY growth in Dec’15 quarter

*   Low double

13/06/2016 4:37:25 PM | Posted in Broking Firm Views - Sector Report read full news
Robust Growth in Revenue & Operating Profit; Interest & Depreciation Cost Restrict Net Profit

4QFY16 Results Review

Our Power Universe has reported 34.1% yoy growth in revenue better than market expectations owing to improved realization, higher generation and increased capacity. However, net profit grew by 18.2% yoy driven by higher growth in Tata Power (126%) & Power Grid (13%). Higher interest and depreciation cost due to commissioning

13/06/2016 4:34:50 PM | Posted in Broking Firm Views - Sector Report read full news
Metals & Mining Sector - Recovery in Sight - Reliance

Recovery in Sight

Better Sequential Show on Higher Realization, Lower Cost

Our Metals & Mining universe reported a revenue growth of 18% qoq, but declined 9% yoy. While seasonality factor (Jan-Mar quarter being the strongest period) partially aided sequential recovery, a few benefited from higher operating leverage (largely steel

13/06/2016 4:25:50 PM | Posted in Broking Firm Views - Sector Report read full news
Q4FY16 Results Review - Stronger results aided by recovery in sales - Emkay Global

Stronger results aided by recovery in sales

* Q4FY16 earnings rebound After 5 quarters of contraction, sales growth turned positive in Q4 to 5.6% (ex oil & financials) for Sensex and Nifty companies. Recovery in sales is attributable to higher commodity prices, depreciation INR, higher government spending and lower base. Earnings

13/06/2016 4:24:34 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - FDC ban remains an overhang -RCML

According to AIOCD AWACS, the Indian Pharmaceutical Market (IPM) grew at a modest rate of 7.7% YoY in May (vs. 3.5% last month) – uncertainty around the FDC ban and NLEM price cuts remain the key overhangs, in our view. FDC drugs continue to witness weak growth, mostly in anti-infective and dermatology therapies. Therapy-wise, the anti-diabetic, neurology/CNS and cardiac segments outperfo

13/06/2016 4:13:52 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Price recovery to aid earnings in 1Q; demand outlook improving - Prabhudas

Price recovery to aid earnings in 1Q; demand outlook improving

Our channel checks suggest that demand continued to remain weak across regions except East. East continues to be an exception with strong growth across the states on higher spending by state governments. Despite weak base, demand growth tapered down in South in May16 as cement producers collectively

13/06/2016 3:59:03 PM | Posted in Broking Firm Views - Sector Report read full news