Consumer discretionary Sector Update > Q4FY2016 earnings review - Sharekhan

Q4FY2016 result review

Soft revenue performance amid weak demand, high competition:

Sluggish consumer demand, coupled with heightened competition resulted in consumer discretionary companies posting high single to low double-digit revenue growth for the quarter. Further, Titan’s results (2% decline in

10/06/2016 3:28:40 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update > Q4FY2016 earnings review - Sharekhan

Q4FY2016 result review A mixed quarter:

During Q4FY2016, the power sector reported mixed results. While PTC India (PTC) and Power Grid Corporation of India (PGCIL) registered earnings growth on a YoY basis, power generating companies like NTPC and CESC reported muted numbers. PTC recorded a very strong 44% YoY earnings growth in Q4FY2016, which was ma

10/06/2016 3:21:53 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector Update > Q4FY2016 earnings review - Sharekhan

Q4FY2016 result review

Good revenue performance; divergent drivers:

Both Bharti Airtel (Bharti) and Idea Cellular (Idea) posted strong revenue performance. Bharti’s India mobile growth stood at 4.8% QoQ while Idea’s revenue growth came in at 5.3% QoQ. Interestingly, the growth posted by both the pl

10/06/2016 3:06:40 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update > Q4FY2016 earnings review - Sharekhan

Q4FY2016 result review

Q4FY2016 performance in line with expectation:

In Q4FY2016, the performance of pharmaceutical companies in our coverage universe was largely in line with our expectations. On an aggregate basis, our coverage universe reported a 20.4% YoY growth in revenues while the Operating Profit Ma

10/06/2016 12:18:08 PM | Posted in Broking Firm Views - Sector Report read full news
Banking and NBFC Sector Update > Q4FY2016 earnings review - Sharekhan

Q4FY2016 result review

Another quarter of asset quality stress with spike in provisions:

Q4FY2016 was one of the weakest quarters for the banking sector in recent times, as earnings continued to be depressed due to persistent rise in asset quality stress (for both, our coverage universe as well as the bankin

10/06/2016 12:14:15 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Credit growth steady at 9.8% - Religare

Credit growth steady at 9.8%

As per RBI data, credit growth remained stable at 9.8% for the fortnight ended 27 May. Deposit growth declined to 9.5% YoY vs. 9.8% in the previous fortnight. Investment growth inched up to 5.1% after declining for three consecutive fortnights, while SLR was largely stable at 26.5%. Credit growth has been weak over the last

9/06/2016 4:13:10 PM | Posted in Broking Firm Views - Sector Report read full news
Consumer goods and services Sector Update - Q4FY2016 earnings review - Sharekhan

Q4FY2016 result review

Realisations flat; volume growth sustains at mid-to-high single digit:

Most of the FMCG companies under our coverage have posted mid-to-high single digit volume growth in the domestic business due to sluggish rural demand. The volume growth of our coverage companies has not seen any mean

9/06/2016 4:06:10 PM | Posted in Broking Firm Views - Sector Report read full news
India Pharma - NPPA fixes ceiling price of 56 scheduled formulations - Religare

NPPA fixes ceiling price of 56 scheduled formulations

In two separate notifications dated 2 Jun’16, the National Pharmaceutical Pricing Authority (NPPA) has revised/fixed ceiling prices of 56 scheduled formulations under Drug Price Control Orders (DPCO). NPPA has also fixed retail prices (ex-local taxes) of eight formulations.

 

9/06/2016 3:59:19 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Update - Q4FY2016 earnings review - Sharekhan

Q4FY2016 results review

Healthy double-digit revenue growth driven by upsurge in volume:

After a gap of several quarters, the Sharekhan Auto universe (ex-TAMO) has reported double-digit topline growth (12.6% in Q4FY2016). The growth was mainly backed by surge in volumes across the automotive segments (ex-Passenger Vehicles). Domestic Medium

9/06/2016 3:52:28 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector – 4QFY16 Result Review - Reliance

Sector Review

Banking sector is undergoing a historic moment as first time in the history the Reserve Bank of India (RBI) is conducting concurrent Assets Quality Review (AQR) across the banks. It set up Central Repository of Information on Large Credits (CRILC) in September 2013 to identify large borrowers’ financial distress at early stage so t

8/06/2016 5:29:08 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Lower costs drive outperformance - ICICI Securities

Reason for report: Sector update and Q4FY16 result review

 Cement companies under our coverage posted 10% YoY EBITDA growth during Q4FY16 – higher than our estimate of 2% – mainly led by lower costs. While realisations declined 8% YoY (4% QoQ) – higher than our estimate of 7% YoY decline, lower costs (down 8% YoY against our esti

8/06/2016 4:44:27 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Dealers check: Prices inched up moderately mom on better demand - Reliance

All India average cement price recovered by ~2% month-on-month (mom) mainly supported by substantial price recovery (+6% mom) seen in Southern region followed by Northern region (+4% yoy). Further, pre-monsoon hike also aided the price during the month. Notably, demand scenario continued to remain supportive in many pockets due to pre-monsoon pick-up in activities and favourable government spen

8/06/2016 2:19:06 PM | Posted in Broking Firm Views - Sector Report read full news
Oil Marketing Companies - Strong set of numbers - Emkay Global Financial Services Ltd

 As expected HPCL/BPCL/IOCL, GRM declined on qoq to $7.56/bbl/$6.3/bbl/$3/bbl in Q4FY16 from $7.92/bbl/$7.67/bbl/$5.96/bbl in Q3FY16 respectively on correction in Gasoline, Naphtha and Middle Distillate cracks

 All the three OMC’s have shown significant improvement in marketing margins. Within OMC’s BPCL fared better on the marketing margin front with 42% qoq increase to

7/06/2016 3:38:02 PM | Posted in Broking Firm Views - Sector Report read full news
MarketFresh: FMCG Tracker - RM inflation creeping in; no pricing action yet - Religare Capital Markets Ltd

RM inflation creeping in; no pricing action yet

The RCML RM index increased 3.5% MoM in Apr’16 with prices of both crude and agri baskets inching up. However, consumer companies (barring CLGT, MRCO), constrained by a weak macro and lack of pricing power in a benign commodities environment, are yet to take any pricing action in key products. With

7/06/2016 3:25:40 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Auto enters a Breakout stage - GEPLCapital Ltd

NIFTY AUTO     Current Close: 8749.25     Trend : Positive

Observation

* NIFTY AUTO is one of the top outperformer sector amongst the indices, as it has moved up sharply by 4.23% at 8749.25, as against an upward move of 0.79% in benchmark NIFTY 50.

* After the Sector made an all time high @ 9110

7/06/2016 10:51:06 AM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update > Q4FY2016 earnings review - Sharekhan

Broadly an in-line quarter:

The top five Indian IT service companies delivered an overall in-line revenue performance, while HCL Technologies (HCL Tech) missed the estimate during the quarter ending March 31, 2016. During Q4FY16, the top five companies reported a growth of 2.0% QoQ on a constant-currency (CC) basis and 1.6% (versus our estimate of 1.8

6/06/2016 4:51:48 PM | Posted in Broking Firm Views - Sector Report read full news
India Metals & Mining - Q4 Review: Strong quarter; Q1FY17 to be better - Religare Capital Markets Ltd

* Q4 Review:

Strong quarter; Q1FY17 to be better The RCML metals & mining universe posted a 9.2% EBITDA beat in Q4FY16, with HNDL the star (50% beat). TATA and JSTL too excelled, but depend on MIP renewal ahead. For HNDL, debt levels may reduce given its committed capex for FY17. In Q1FY17, steel companies (ex-NMDC) could see better margins on hig

4/06/2016 5:53:53 PM | Posted in Broking Firm Views - Sector Report read full news
Macro Preview - Q4 to see GVA pick-up, current account surplus - Religare Capital Markets Ltd

Q4 to see GVA pick-up, current account surplus

GDP and BOP numbers for Q4FY16 and FY16 are due for release this week. We expect GVA growth to pick up to 7.2% in Q4 (Q3: 7.1%) off a favourable base. On the BOP front, India is set to witness its first current account surplus (US$ 1.9bn) in a decade in Q4. For FY16, we expect GVA to rise by 7.2% vs. G

6/2/2016 2:38:52 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Credit growth inches up to 9.8% - Religare Capital Markets Ltd

Credit growth inches up to 9.8%

As per RBI data, both credit and deposits growth increased to 9.8% for the fortnight ended 13 May’16. Investment growth declined for the second consecutive fortnight to 4.2% YoY but SLR remained largely stable at 26.3%. Credit growth has been weak over the last few months due to low corporate demand and a lack

6/2/2016 2:18:32 PM | Posted in Broking Firm Views - Sector Report read full news
SEB visit diaries-Karnataka – Well managed; but needs supply as per plan, not UDAY - ICICISecurities

Reason for the report: Takeaways from visit to Karnataka SEB

In our ongoing series of SEB visits, we travelled to Bangalore to meet officials at the Karnataka SEB. The purpose of our visit was to understand the reasons behind the SEB’s strong financial and operational performance despite the proportion of agricultural consumption being one of

6/2/2016 2:00:15 PM | Posted in Broking Firm Views - Sector Report read full news
India Internet - Zomato: Capturing India’s online food delivery space - Religare Capital Markets Ltd

Zomato: Capturing India’s online food delivery space

* Zomato currently operates restaurant discovery and online-delivery businesses in 23 countries, including India, U.A.E., Australia, Turkey, U.K., U.S., and Philippines.

* As per management channel checks, Zomato routes 75% market share for restaurants, including restaurant disco

6/2/2016 3:09:19 PM | Posted in Broking Firm Views - Sector Report read full news
Specialty Chemicals - Opportunities are shifting to India - Emkay Global Financial Services Ltd

 We are structurally positive on Indian Specialty chemicals given India’s expertise in this space and the gradual shifting of opportunities from China to India. Our recent visit to Ahmedabad and meeting with various specialty chemical companies validates our thesis

 Although there is gradual shift from China to India, selecting a company with the right product profile is t

6/1/2016 3:56:24 PM | Posted in Broking Firm Views - Sector Report read full news