India PharmaScope - April sees weakest growth in last two years - Religare Capital Markets Ltd

April sees weakest growth in last two years

As per AIOCD AWACS, the Indian Pharmaceutical Market (IPM) posted weak growth of 3.5% YoY in Apr’16 – its lowest in last two years – due to the FDC ban, NLEM price cuts and seasonality effect. Therapy-wise, the anti-diabetic and neurology/CNS segments outperformed IPM growth by 550bps-850bps, whi

5/11/2016 3:29:10 PM | Posted in Broking Firm Views - Sector Report read full news
Foreign investment flows - Capital flows jump in March; FY16 FDI at a record high - Religare Capital Markets Ltd

Capital flows jump in March; FY16 FDI at a record high

Healthy capital flows in Mar’16: As per the RBI’s monthly bulletin for May’16, foreign investment inflows to India shot up to US$ 6.2bn in Mar’16 from just US$ 0.7bn in the preceding month. This was entirely driven by FIIs, who pumped in US$ 4.4bn after withdrawing money in each

5/11/2016 3:19:30 PM | Posted in Broking Firm Views - Sector Report read full news
India Strategy: Q4FY16 Institutional flows-FPI inflows to continue in Q1FY17- ICICISecurities

Q4FY16 Institutional flows-FPI inflows to continue in Q1FY17

The Jan- Feb, 2016 FPI outflows reversed considerably in March ‘16 resulting in a net inflow of USD 1.2 bn during Q4FY16. In sync with the global rally in EM’s, which was triggered by rising commodity prices, FPIs were net buyers in Energy, Utilities and Metals (they have been increasi

5/11/2016 3:09:29 PM | Posted in Broking Firm Views - Sector Report read full news
India Media - Shemaroo Q4 results – Massive margin-led EPS beat - Religare Capital Markets Ltd

Shemaroo Q4 results – Massive margin-led EPS beat

* Shemaroo’s (SHEM) Q4FY16 revenues came in at Rs 1.03bn (+18% YoY), beating our estimates of Rs 970mn.

* New media grew 54% YoY in the quarter and traditional media clocked a decent growth of 13% YoY. The revenue beat was led by better performance in both traditional and new media seg

5/10/2016 2:54:30 PM | Posted in Broking Firm Views - Sector Report read full news
Earnings downgrade continue in spite of marginally better results - ICICISecurities

Q4FY16 results in neutral to marginally positive zone although downgrades continue:

Overall Q4FY16 results season for the Nifty companies has been in neutral to marginally positive zone so far, although it has resulted in more downgrades than upgrades to consensus FY17 Nifty EPS. Out of the 18 Nifty companies which have declared their results so far, consen

5/9/2016 2:49:13 PM | Posted in Broking Firm Views - Sector Report read full news
India IT Services - Cognizant: Weak Q1; CY16 guidance band tightened - Religare Capital Markets Ltd

Key takeaways from Cognizant’s (CTSH) Q1CY16 results are: (1) US$ revenues down 0.9% QoQ (low end of guidance) led by 1.4%/2.3% QoQ drop in US/UK markets; (2) FSI and healthcare verticals down 1.7%/4% QoQ; and (3) Q2 US$ revenue growth guidance healthy at 4.3-6.2% QoQ but CY16 guidance cut from 10-14% to 10-13%. Apart from the negative guidance revision, we note that the growth outlook

5/7/2016 5:31:59 PM | Posted in Broking Firm Views - Sector Report read full news
India IT Services - Earnings trajectory weak; Stay selective - Religare Capital Markets Ltd

Growth has moderated sharply for our large-cap IT universe in FY16 and this, coupled with pricing pressure, has begun to hurt sector margins despite a weaker INR. Steady earnings downgrades have compressed large-cap P/E multiples and we think that earnings expectations haven’t completely re-adjusted and thus re-rating from current levels will be restricted unless growth recovers. With

5/6/2016 3:53:21 PM | Posted in Broking Firm Views - Sector Report read full news
Autobobile Sector Update - Healthy show in April, upcoming marriage season to drive demand in the near-term.

Healthy show in April, upcoming marriage season to drive demand in the near-term

* Most of the OEMs reported decent volume growth in April 2016 on the back of healthy demand of newly launched products and shifting of important festivals i.e. Gudi Padwa & Chetichand by one month to April in 2016.

* While MHCV segment continues to maintain str

5/6/2016 1:00:21 PM | Posted in Broking Firm Views - Sector Report read full news
Automobiles Sector Update - Sharekhan

Automobile sales for April 2016

The fiscal year 2017 started on a strong note for the automotive industry with all the segments reporting a double digit volume growth in April 2016. After a gap of three months, the passenger vehicle (PV) segment growth picked up reporting a double-digit growth. Spate of new launches (Maruti’s Vitara Brezza, Mahindra&r

5/6/2016 2:06:35 PM | Posted in Broking Firm Views - Sector Report read full news
India Automobiles - 2Ws gain momentum, tractors show recovery - Religare Capital Markets Ltd

* 2Ws volumes have gained significant momentum with strong domestic volumes for industry players in Apr’16. HMCL reported the third straight month of double-digit growth at 15% YoY (RCMLe 8.5%). TVSL’s overall 2W volumes grew ↑19.5% with scooters leading the charge at ↑28%, followed by motorcycles at ↑21% and mopeds at ↑11%. Its domestic 2W volumes were up &ua

5/5/2016 3:17:38 PM | Posted in Broking Firm Views - Sector Report read full news
India Telecom - RCOM migrating CDMA subs. to 4G; pricing aggressive - Religare Capital Markets Ltd

RCOM migrating CDMA subs. to 4G; pricing aggressive

* Making the switch:

Starting today, Reliance Communications (RCOM, Not Rated) has initiated attractive offers to move its CDMA subscribers to 4G platform (part of Jio alliance). This is currently available to only existing CDMA subscribers and all users need to compulso

5/5/2016 3:03:05 PM | Posted in Broking Firm Views - Sector Report read full news
Mining: Iron Ore - Is iron ore price sustainable? - Kotak Securities Ltd

Is iron ore price sustainable?

The recent increase in global iron ore prices is unlikely to sustain in near to medium term, as incremental production from large miners would further add to the global surplus, while global demand continues to remain weak. Weak demand and increase in iron ore supply, would keep prices under pressure. In addition to the global

5/5/2016 2:36:33 PM | Posted in Broking Firm Views - Sector Report read full news
India Inc. Banking On Its Non Banking Finance Companies - Dynamic Levels

NBFC THE NEW BANKING ALTERNATIVE

NBFC’s are fast turning out to be a clear alternative to mainstream banking. The sector is also emerging as an integral part of the Indian Financial System and has actively contributed to the Government’s agenda of financial inclusion. They have lead from the front in offering credit to retail consumers beyond th

5/4/2016 4:46:39 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector Monthly Update - Dealers check: Demand continued to remain firm, albeit marginally soft month-on-month

All India average cement price has improved merely by ~1% month-on-month (mom) mainly supported by substantial price recovery (+6% mom) seen in Western region. Notably, demand scenario continued to remain supportive on yearly comparison (though softened on mom basis), as execution pickup in infrastructure projects before the onset of monsoons led to a meaningful growth in project segment sal

5/4/2016 4:41:24 PM | Posted in Broking Firm Views - Sector Report read full news
Metallica Sector Update - Steel price rally: will it sustain? - Emkay Global Financial Services Ltd

Key observations

* Global steel prices continued to rally driven primarily by sharp uptick in China. This can be attributed to the restocking, as inventory levels were low. Domestic prices however, have been lower than the MIP levels in absence of stronger demand and oversupply

* The CIS (FoB Black Sea) HRC prices soared another 19% MoM to US$ 4

5/4/2016 4:00:31 PM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector Monthly Update - Emkay Global Financial Services Ltd

Summary

* Crude oil price moved up further:

Crude oil price moved up significantly from its bottom of $27/bbl to $39/bbl on account of declined in US production and inventory levels coupled with weak USD. Also expectation of likely action to control output by Major oil producers like Russia & OPEC. Light-Heavy (L-H) d

5/4/2016 4:03:37 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG Sector - Saffola becomes an indomitable market leader - ICICISecurities

We notice stark differences in approaches of two players in healthy edible oil segment. Marico continues to invest behind Saffola as a key growth driver whereas Agro Tech is focusing to utilise Sundrop’s profits in developing portfolio of other food products. We believe Saffola will continue to increase market share in the space.

 

* Why Agro Tech

5/4/2016 3:58:24 PM | Posted in Broking Firm Views - Sector Report read full news
Q4FY16 Results Review - Ventura Securities Ltd

The 2nd week of Q4FY16 has been a mixed bag.

Axis Bank’s NII growth was led by health growth in loan book. However, net profit of the bank decreased during the quarter due to higher pre-provisioning expenses and lower growth in other income.

HDFC Bank’s result was in line with street estimates. It reported stable NIM and marginal improvement in asset quality

5/4/2016 4:06:05 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Media enters a Breakout stage - GEPLCapital Ltd

NIFTY MEDIA      Current Close: 2423.95        Trend : Positive

Observation

* NIFTY MEDIA is one of the outperformer sector amongst the indices, as it has moved up by 1.90% at 2423.35, as against a downside move of 0.63% in benchmark NIFTY 50.

* The Sector has

5/3/2016 4:46:36 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - LNG consumption surges, signals changing dynamics - Religare Capital Markets Ltd

* LNG imports surge 58% YoY in March:

Govt. data on the natural gas sector points to a 10% MoM/58% YoY increase in LNG imports to ~1.95mmt for Mar’16; while for FY16, LNG imports are up 15% YoY to ~21mmt. The consumption levels are equivalent to the available re-gas capacities in India currently (adjusting for lack of connectivity at the Kochi termina

5/3/2016 2:45:13 PM | Posted in Broking Firm Views - Sector Report read full news
India Banks - Axis and ICICI – Where do we go from here? - Religare Capital Markets Ltd

We reiterate our SELL ratings on AXSB and ICICIBC as we see 20% downside for both stocks, given growth skewed towards high-risk segments, flagging margins and elevated credit costs. Asset quality disclosures have been stepped up by both banks in Q4FY16, but do not materially ease concerns. We will be closely monitoring the following stock triggers before turning positive: (1) slippage breaku

5/3/2016 2:37:30 PM | Posted in Broking Firm Views - Sector Report read full news
Eight-core output at a 16-month high - Low base effect shores up growth in Mar’16 - Religare Capital Markets Ltd

* Mar’16 eight-core output at a 16-month high:

Output of the eight core industries rose by 6.4% in Mar’16 (Mar’15/Feb’16: -0.7%/5.7%) – at its fastest pace in the last 16 months. Growth has accelerated significantly in the last three months, averaging at 5% during the quarter to Mar’16 as against just 1.9% during 9MFY16,

5/3/2016 2:41:21 PM | Posted in Broking Firm Views - Sector Report read full news
India Metals & Mining - Odisha trip takeaways - Religare Capital Markets Ltd

Our three-day roadtrip to the state of Odisha (Bhubaneswar, Talcher and Barbil) from 28-30 April 2016 gave us an on-theground perspective of the budding mining revival in the state and its impact on allied sectors. During our trip, we visited Mahanadi Coal’s Bhuvneshwari mine and also met iron ore merchant miners (Rungta Mines, KJS Ahluwalia Group) as well as construction equipment and

5/3/2016 2:19:43 PM | Posted in Broking Firm Views - Sector Report read full news