Construction Sector Review Post Q1FY15 - Kotak Securities Ltd

Construction sector has witnessed a sharp re-rating post the election outcome during Q1FY15 on expectations of improvement in overall macroeconomic environment and order inflows. Companies have started witnessing improvement in order inflows in select segments like buildings, urban infra and roads but improvement is yet to be seen in power, industrial, railways, irrigation and mining. Though

22/Aug/2014 05:30 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 earnings review Sector Update - Sharekhan

High double-digit earnings growth with important encouraging signs

The aggregate earnings growth of 17.5% in the Sensex companies seen in Q1FY2015 was largely contributed by the usual export-driven sectors like information technology (IT) services and pharmaceuticals (pharma) in addition to private sector banks and a few select companies like Tata Motors a

21/Aug/2014 12:21 PM | Posted in Broking Firm Views - Sector Report read full news
Update On Media & Entertainment Sector - IDFC Securities Ltd

Indian Media & Entertainment (IME) is a mixed bag. Digitization has failed on the ‘monetization’ promise as revenue-share impasse between LCOs and MSOs is keeping collections low at Rs65/ STB (though traction seen in new DTH subs). Also, broadcasters are seeking ARPU share, which will further dent MSO profitability. Meanwhile, viewership fragmentation is forcing broadcasters

20/Aug/2014 02:33 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 Capital goods Sector & engineering Sector earnings review - Sharekhan

Key points 

* The top line performance of the capital goods and engineering companies under our coverage was a mixed bag in Q1FY2015. While KPTL, V-Guard, Crompton Greaves and Bajaj Electricals reported a revenue growth in the range of 10-20% YoY, the power equipment manufacturers like BHEL and Thermax continued to witness a declining trend in revenues Yo

20/Aug/2014 12:29 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 Auto Sector earnings review - Sharekhan

Key points 

* The automobile sector reported an improved performance in Q1FY2015 with a volume growth across segments except CVs. In the CV segment too, the rate of decline reduced and a drop in the discount levels enabled the OEMs to report an improved performance. Our auto universe ex TAMO reported a 9.8% increase in revenues and a healthy 14.1% growth

20/Aug/2014 12:07 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 FMCG earnings review - Sharekhan

Key points 

* The volume growth of the FMCG companies remained muted in Q1FY2015 as well, though the pressure on the sales volume is showing signs of easing out. The relatively smaller companies (like Bajaj Corp) reported a low singledigit decline in volumes in Q1FY2015 (compared with a double-digit dip in the previous quarter). On the other hand, FMCG co

19/Aug/2014 10:03 AM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 Banking Sector earnings review - Sharekhan

Key points

* In Q1FY2015 The aggregate earnings growth of our banking universe was 5.4% YoY, with private banks reporting a strong earnings growth of 19.6% YoY. In case of PSBs, the aggregate earnings declined by 4.6% YoY and the operating profits saw an improvement led by a better growth in the net interest income (up 11% YoY). Lower treasury profits and

16/Aug/2014 11:58 AM | Posted in Broking Firm Views - Sector Report read full news
Fertilizer Sales July’14 - Complex fert. sales up 16% YoY ; Urea down 14% YoY - Prabhudas Lilladher Ltd

Preliminary data from the Ministry of Fertilisers indicates that sales volumes of the overall complex fertilisers increased by 16% YoY for the industry during July 2014 supported by increase in imported volumes. While indigenous manufactured volumes increased merely by 1% YoY during July 2014, imported complex fertiliser volumes increased by 53% YoY on a lower base. Urea sales volumes declin

13/Aug/2014 03:49 PM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector review – Better earnings, mixed asset quality - IDFC Securities Ltd

Indian banks’ profits have increased by 11% yoy in Q1FY15, with core operating profits (PPOP ex-trading gains) growing faster, at 17% yoy. Public sector banks grew slightly faster, with core PPOP up 20% yoy (13% for private banks). The key positive surprise was tighter cost control, especially by PSU banks – costs increased by 7% yoy, vs. 17% for private banks. NIMs remained stab

13/Aug/2014 02:49 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 IT Sector earnings review - Sharekhan

Key points

* The June 2014 quarter for the Indian IT sector was on expected lines in terms of both top line and margins. The revenues of the top 4 IT companies grew by 3.4% sequentially in the quarter versus a 1.9% sequential growth in the previous quarter. TCS continued to lead the pack with a 5.5% Q-o-Q growth while HCL Tech and Tech Mahindra delivered a

13/Aug/2014 02:44 PM | Posted in Broking Firm Views - Sector Report read full news
Special Report: Breaking Free - Upstream Oil & Gas Sector - Motilal Oswal

Summary Crude remain benign despite political instability, GRM down 9% MoM

* Despite Iraq oil supply concerns and a 9-month peak of USD115/bbl in Jun-14, Brent down -4% MoM led by adequate non-OPEC supplies.

* Crude price arbitrage helped US refinery inputs hit a record 9 year high 16.8mmbbl/d in mid-July 2014 (utilization at 103%).

*

12/Aug/2014 03:15 PM | Posted in Broking Firm Views - Sector Report read full news
Recovery signs gathers pace for auto sector - Motilal Oswal

Sector overview and outlook

Recovery signs gathers pace across segments; narrowing of monsoon deficit augurs well

Improvement in PV demand continues; MHCVs poised for growth

With improved consumer sentiments, post general elections, passenger vehicle demand has improved considerably. Lead indicators o

08/Aug/2014 01:44 PM | Posted in Broking Firm Views - Sector Report read full news
Capital Goods (Order Tracker): Awards bounce; competitive intensity severe - Motilal Oswal

CAPITAL GOODS (Order Tracker): Awards bounce; competitive intensity severe

Domestic Order awards have bounced back sharply in July 2014 at INR261b, after remaining muted during April – June 2014 (with cumulative awards at just INR214b), impacted by the ongoing elections. Key orders awarded includes a) INR87b by BSNL for laying fibre optic network for

08/Aug/2014 02:23 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector: Guidance cut – Company and client-specific issue - Prabhudas Lilladher Ltd

Cognizant reported third quarter of performance that is softer?than?consensus expectation at the top?line. The company has guided for a Q3CY14 revenue growth softer than consensus expectation and CY14 revenue growth guidance has been cut to 14% from 16.5% earlier. The management highlighted ramp?down, delay in decision making and complexities of large transformational deal as the key reasons

08/Aug/2014 10:04 AM | Posted in Broking Firm Views - Sector Report read full news
Cognizant Result – Take Away for Indian IT Sector - Motilal Oswal

COGNIZANT 2QCY14: Guidance cut to 14% from 16.5%... …

Attributed to a handful of clients; Deal signings & demand outlook strong

* CTSH cut its full year revenue growth guidance to at least 14%, from at least 16.5% earlier. Consensus full year growth estimate for CY14 was 16.9%.

* The company attribu

07/Aug/2014 02:51 PM | Posted in Broking Firm Views - Sector Report read full news
Update On Oil and Gas Sector - Motilal Oswal

New domestic gas price likely at USD6-6.5/mmbtu

Price applicability to RIL’s D1/D3 fields uncertain; positive for ONGC/OINL

Event

* Media reports indicate that the likely revised Rangarajan Committee formula might result in new gas price of USD6-6.5/mmbtu against earlier expectation of

06/Aug/2014 12:28 PM | Posted in Broking Firm Views - Sector Report read full news
Update On Automobile Sector - Sharekhan

The domestic automobile companies reported a growth in July 2014, making it the third consecutive month of growth in the automobile sector. The growth was aided by a positive change in consumer sentiment, new launches from manufacturers and elevated levels of discounting on products. Market leader Maruti Suzuki India Ltd (MSIL) has given a positive commentary on consumer sentiment, indicatin

05/Aug/2014 10:25 AM | Posted in Broking Firm Views - Sector Report read full news
Update and trading strategy for Automobile sector - Motilal Oswal

Maruti Suzuki

Jul-14 volumes in-line at 101,380 units (v/s est ~100k)

Domestic volumes grew 20% YoY (in-line), Exports +38% YoY (v/s est 10k)

* Domestic volumes grew 20% YoY to ~90,093 units (v/s est 90k). We estimate ~17.5% growth in FY15 in domestic volumes implying 20% residual growt

04/Aug/2014 03:25 PM | Posted in Broking Firm Views - Sector Report read full news
Update On Automobiles Sector - Motilal Oswal

Recovery continues in PVs, MHCVs; mixed outlook for 2Ws

Top picks: MSIL, TTMT among large-caps; TVSL and AL in mid-caps

We interacted with the industry participants to get an update on expected sales trend for the month of July-14 for our auto coverage universe.

Key highlights:

* Po

02/Aug/2014 04:03 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector - TRAI notifies recommendations related to new DTH licenses - Prabhudas Lilladher Ltd

Telecom Regulatory Authority of India (TRAI) today notified its recommendations on issues related to new DTH licenses, migration of DTH licenses and cross holding/control in broadcasting and distribution sector. TRAI has recommended increasing the time period of DTH license to 20 years (from 10 years currently). On the license fee issue, under the new regime, DTH players will be required to

25/Jul/2014 10:26 AM | Posted in Broking Firm Views - Sector Report read full news
Update On Pharma Sector - Motilal Oswal

More price controls in India - derogative step for industry

Sanofi most impacted; increases apprehension on regulatory environment

* New directive expands span of price control on 39 new molecules in the anti-diabetic and cardiovascular space; more therapies to be covered.

* Among MNCs, Sanofi India is likely to be th

23/Jul/2014 09:47 AM | Posted in Broking Firm Views - Sector Report read full news
TRAI recommendations on spectrum sharing - IDFC Securities Ltd

Event

The Telecom Regulatory Authority of India (TRAI) has released its recommendations on Guidelines on Spectrum Sharing between operators across 2G/ 3G/ 4G bands. Among the proposals, permission to share 3G and administered spectrum is a positive, while an additional charge of 0.5% of adjusted gross revenue (AGR) could be a deterrent for smaller operator

23/Jul/2014 09:50 AM | Posted in Broking Firm Views - Sector Report read full news
Update On Pharma Sector - Prabhudas Lilladher Ltd.

Addition of 49 molecules in DPCO list to spoil the initial signs of revival in domestic formulations growth in FY15

The Indian Pharma market (IPM) achieved 10.4% growth in June 2014 and 7.9% growth in Q1FY15. While the Pharma market achieved double?digit growth for the first time in the last 12 months, the government’s addition of 49 molecules (108 f

18/Jul/2014 10:31 AM | Posted in Broking Firm Views - Sector Report read full news
Update On Capital Goods Sector - Angel Broking Pvt Ltd

Announcement

* The government government has increased increased  the composite cap of foreign investment in the defense sector from 26% to 49%. This would be applicable for companies with full Indian management and control.

* Allocation of `1,000cr for development of rail connectivity in the North East region

 

18/Jul/2014 09:54 AM | Posted in Broking Firm Views - Sector Report read full news
Update On Pharmaceuticals Sector - Sharekhan

Key points 

* Price control extended beyond essential medicines:

In a surprise move, the National Pharmaceutical Pricing Authority (NPPA) has brought under price control 108 new formulations which are not on the National List of Essential Medicines (NLEM). Most of the drugs brought under price control belong to the cardi

17/Jul/2014 11:35 AM | Posted in Broking Firm Views - Sector Report read full news