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
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