Agri Input - Agrochemicals Sector Update - Emkay

* Successive failure of North-East monsoon since last two years and below normal rainfall (82-85% of LPA) in South India during South-West monsoon has result in drought like situation in Tamil Nadu and Karnataka and few districts of AP and Telangana

* Our interaction with agri-input dealers and farmers in these states suggest that due to low water levels in reservoirs, yields of most

13/04/2017 2:53:45 PM | Posted in Broking Firm Views - Sector Report read full news
Refining marketing - Kotak Sec

Refining > marketing.

We believe Street’s renewed rhetoric on the potential increase in marketing margins may take time to play out for OMCs given rising competition from private players over the next few years amid slower volume growth; a daily change in fuel prices, if implemented, will moderate earnings volatility to begin with. We expect O

13/04/2017 11:39:56 AM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Earnings weakness persists - Kotak Sec

Earnings weakness persists.

An adverse combination of weak volumes, muted prices and increasing costs will put pressure on earnings of cement companies. Save for a few regional names, we expect EBITDA decline of up to 15% yoy. Regional names will likely report better volume growth as they continue to gain market share on expanded capacity base. Rich va

13/04/2017 11:32:37 AM | Posted in Broking Firm Views - Sector Report read full news
Indian Steel Industry - Consumption stagnant; Definitive ADD recommended! - Emkay

As per the JPC provisional data, finished steel production scaled a new high of 17%, whereas consumption growth contracted further to 2.2% YoY. For FY17, production from ESSAR+JSW+JSPL has increased significantly by 21% to 31.4 mt followed by Tata Steel by +18% (~11.2 mt), RINL by +16% (3.2 mt) and SAIL by +14% (11.6 mt). On daily basis, MoM production growth has been highest at RINL (+11.3% Mo

13/04/2017 11:05:53 AM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector Update - Q4FY2017 earnings preview - Sharekhan

Q4FY2017 result expectations

Refining margins decline QoQ; domestic MS/HSD demand also falls - expect weak quarter for downstream companies:

The benchmark Singapore GRM declined by 4.5% QoQ to $6.4/bbl in Q4FY2017 due to weaker Jet Kerosene Cracks (down $1/ bbl QoQ) and Fuel Oil Cracks (down $1.2/bbl) while t

8/04/2017 11:35:02 AM | Posted in Broking Firm Views - Sector Report read full news
India Consumer - Q4 Preview: Slow grind up - RCML

Demand across our consumer universe remained lacklustre yearon- year in Q4FY17 (albeit up sequentially), as consumer offtake failed to pick up despite abating demonetisation headwinds. We expect aggregate Q4 sales/adj. PAT growth of 7%/10.7% YoY. Volume growth is likely to revive only in H2FY18 post-GST, with the pace of recovery contingent on a monsoon-backed return of rural growth. We reitera

8/04/2017 11:13:42 AM | Posted in Broking Firm Views - Sector Report read full news
Sector Update - Fertilisers Sector - ICICI Sec

Fertiliser sector has seen a spate of policy changes recently, resulting in altered ground realities, as it braces itself for game-changing nation-wide DBT implementation. In this note, we discuss the recent policy changes and their impact on the sector and our coverage universe.

 

Urea policy revision highlights structural improvement; sentiment positive

7/04/2017 5:43:58 PM | Posted in Broking Firm Views - Sector Report read full news
Operators` performance under immense pressure - ICICI Sec

Q4FY17 performance of telecom operators would be impacted by:

1) the free services offer from Reliance Jio (RJio) on the higher subscriber-base, and

2) reset of higher-value ARPU subscribers with higher allowances on lower packs by Bharti Airtel (Bharti) and Idea Cellular (Idea). Though increasing adoption of bundled packs makes realisations

7/04/2017 5:35:36 PM | Posted in Broking Firm Views - Sector Report read full news
Sector Update - Monthly Auto Sales - SPA Sec

This year has been an eventful year for the Indian automotive industry. From the ban on diesel cars to demonetization and the very recent ban on sale and registration of BS 3 vehicles, auto manufacturers in India have experienced a handful of major challenges in this fiscal year. And despite these trials of strategies and policies, companies seem to have largely observed positive growth. With 3

6/04/2017 4:20:14 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector - Will price correction sustain - Emkay Global

Key observations

*  Ferrous space witnessed price correction in the raw material segment, while steel prices remained flat without any new trigger and also due to weakness in raw material prices.

*  Iron ore prices of both 62% and 58% grade fell by 12% and 15% MoM to US$80/tn and US$63/tn respectively. Hard coking coal fell by anot

6/04/2017 3:45:02 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector : Non-ferrous outperformance to continue - ICICI Sec

Q4FY17: Non-ferrous outperformance to continue Reason for report:

Q4FY17 results preview

 In a continued trend, Q4FY17 will again be better for non-ferrous plays as steel companies will have to handle steeper RM costs. Average steel price hike of Rs 1,500-2,500 taken during the quarter will not be enough to offset this

6/04/2017 3:34:31 PM | Posted in Broking Firm Views - Sector Report read full news
Sector Update - Automobiles - Sharekhan

The domestic automobile sales for March 2017 were mixed bag with the Passenger Vehicles (PV) segment posting a double digit growth of 11% YoY. Commercial Vehicles (CV) sales grew by 7% YoY while the Two Wheeler (2W) segment reported flat volumes. The PV segment growth accelerated to double digits as against a high single digit growth posted earlier, led by new launches and an improved demand sc

6/04/2017 3:18:55 PM | Posted in Broking Firm Views - Sector Report read full news
Decent performance amid BS-IV transition - ICICI Sec

Reason for report: Monthly volume analysis

Two-wheelers: Decent show despite uncertainty over SC ruling on BS-III inventory

*  Hero MotoCorp (Hero) March volumes surprised positively and grew 1% YoY and 16% MoM to ~610k units, despite the impending SC verdict on BS-III inventory likely impacting dispatches in the last 2

5/04/2017 3:57:49 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector - Testing quarter before a promising summer - ICICI Sec

Testing quarter before a promising summer

Reason for report: Quarterly results preview

Research Analysts: Ansuman Deb ansuman.deb@icicisecurities.com +91 22 6637 7312 Q4FY17 is likely to be the bottom for airline margins as cost tailwinds come back from Q1FY18. As such, valuations will not depend on this quarterly performanc

5/04/2017 3:49:44 PM | Posted in Broking Firm Views - Sector Report read full news
Agri Sector : New subsidy rates fixed for P&K fertilisers - Emkay

New subsidy rates fixed for P&K fertilisers

*  Government has reduced the subsidy on Phosphorous (P) and Potash (K) by 9% and 20% respectively on the back of falling prices of phosphoric acid and potash. However, due to sharp increase in prices of ammonia in the recent months, subsidy on Nitrogen (N) has been increased by 20%. Subsidy on Sulph

5/04/2017 3:19:11 PM | Posted in Broking Firm Views - Sector Report read full news
Sector Update - Infrastructure Sector -Equirus Sec

Key updates

HAM bidding update

*  Results for 4 Hybrid Annuity projects were declared on 22nd Mar, 2017:

1. Dilip Buildcon bagged 3 projects while Sadbhav managed 1 project

2. Also recently, Chitradurga - Davanagere was awarded to PNC Infra and Ranastalam - Anandapuram was awarded to Ashoka Buildcon

5/04/2017 3:07:09 PM | Posted in Broking Firm Views - Sector Report read full news
Logistics Sector - DFC - Trying to accelerate phased commissioning - ICICI Sec

Reason for report: Sector update Research Analysts:

Abhijit Mitra abhijit.mitra@icicisecurities.com +9122 6637 7289 Ansuman Deb ansuman.deb@icicisecurities.com +9122 6637 7312 We met with DFCCIL, the agency in charge of implementation of Dedicated freight corridor (DFC). Following are some of the key takeaways. We feel DFC can start creating some impa

4/04/2017 11:00:52 AM | Posted in Broking Firm Views - Sector Report read full news
IT Sector - Meaningful surprises unlikely - ICICI Sec

The bullish thesis on Indian IT services is hinged on the following:

1) Likelihood of an improving demand backdrop in the BFSI vertical through the course of FY18, especially around short cycle discretionary projects,

2) downstream digital integration work, which lends itself better to a global delivery model (GDM) and where the market share

4/04/2017 10:51:29 AM | Posted in Broking Firm Views - Sector Report read full news
NIFTY PHARMA has immediate support placed at 10050 levels - GEPL

Observation

*  NIFTY PHARMA is one of the perennially underperforming sectoral indices, as it closed down by around 1.38% at 104116.15, as against an up move of 0.72% in benchmark NIFTY 50.

*  The Sector had made a recent swing high @ 11215.45 in the month of Dec 2016, lower, as compared to Sep 2016. Thus it has failed to sustain at

3/04/2017 11:43:10 AM | Posted in Broking Firm Views - Sector Report read full news
NIFTY PSU BANK holds strong Bullish momentum - GEPL

Observation

*   NIFTY PSU BANK is the most outperforming sectors amongst all the indices last week. It moved up sharply by 4.96%, as against an up move of 0.72% in benchmark NIFTY 50.

*  The Sector is in medium term Bullish Trend with the formation of Higher Top Higher Bottom sequences in all time frames charts as Daily, Weekly as w

3/04/2017 5:08:39 PM | Posted in Broking Firm Views - Sector Report read full news
PLF down to historic low due to incremental capacity & soft demand - Emkay

PLF down to historic low due to incremental capacity & soft demand

*  Generation largely remained flat at -0.1% YoY in February 2017 primarily due to soft demand and incremental capacity. Growth was also down due to high base effect as FY16 was a leap year with 29 days in February 2016 vs 28 in February 2017

*  The overall industry PLF declined

3/04/2017 9:13:46 AM | Posted in Broking Firm Views - Sector Report read full news
Agri Input & Chemicals - Agri Digest - Drought like situation grips South India - Emkay

* Successive failure of North-East monsoon since last two years and below normal rainfall (82-85% of LPA) in South India during South-West monsoon has result in drought like situation in Tamil Nadu and Karnataka and few districts of AP and Telangana

* Our interaction with agri-input dealers and farmers in these states suggest that due to low water levels in reservoirs, yields of most

31/03/2017 9:10:13 AM | Posted in Broking Firm Views - Sector Report read full news
Print Media Sector - Vernacular print stays steady while English struggles, Radio to grow the fastest - Equirus Sec

Indian media industry grew a little bit slower at 9.1% in CY16 compared to a CAGR of 11.6% for the last 5 years mainly due to adverse impact of demonetisation in 3QFY17. Print advertising revenue growth slowed to 6.3% yoy in CY16 (vs. +7.3% yoy in CY15). However, within Print, Hindi/vernacular print grew at 7-9% while English print grew modestly by 4% yoy. Digital advertising continues to gain

29/03/2017 11:54:38 AM | Posted in Broking Firm Views - Sector Report read full news
Earnest states start showing improvement - ICICI Sec

Earnest states start showing improvement

The Union ministry of power, in order to help the sector tide over risks posed by the alarming weakness in financial position of discoms, unveiled UDAY (Ujwal Discom Assurance Yojana). The scheme, which aims at operational and financial improvements in discoms, has been subscribed to by 22 states so far. In this

28/03/2017 3:32:19 PM | Posted in Broking Firm Views - Sector Report read full news