IT Sector - Cross currencies to dent growth - Reliance Securities Ltd

Sector Preview

IT sector is expected to post weak set of numbers for 4QFY15E, primarily impacted by high FX volatility during the quarter. Cross currency (Euro/GBP/AUD depreciation) has impacted IT sector earnings for the last three quarters and 4Q is expected to bear the highest impact. Adjusting for ominous headwinds such as cross-currency, we conti

4/6/2015 11:13:11 AM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Prices recovered with moderate pickup in demand - Reliance Securities Ltd

Our dealers check suggests that all-India average cement prices have improved in March 2015 by ~1.6% month-on-month (mom) to ~Rs311/bag on moderate pickup in demand in several pockets of the country. Notably, barring Feb’15, average price trend remained up in Jan’15 and Mar’15 and hence average cement prices are up by 4% qoq in 4QFY15E. Northern region has witnessed maximum

4/6/2015 10:44:51 AM | Posted in Broking Firm Views - Sector Report read full news
IT Services Mar'15 quarter preview - Emkay Global Financial Services Ltd

* Cross currency headwinds spoil the US$ revenue growth yet again; we estimate cross currency headwinds (sharp appreciation of US$ against GBP, Euro and AUD primarily) of ~190-280 bps for the Tier I IT Services companies

* Operating margins to decline sequentially across most of the coverage universe led by cross currency headwinds / INR appreciation against currencies like GBP, E

4/2/2015 11:13:57 AM | Posted in Broking Firm Views - Sector Report read full news
India Financials Sector - Service quality assessment: An intangible differentiator - Prabhudas Lilladher Ltd

The profitability of Indian Banks has been under pressure over the past few years due to a combination of factors like low credit offtake leading to lower NII and fee income channelling the focus to retail lending. The banks have also started to become highly competitive on lending rates to boost loan growth and deposit rates (savings bank rates) to push?up CASA, both of which will not offer

4/1/2015 2:00:51 PM | Posted in Broking Firm Views - Sector Report read full news
Q4FY2015 IT Sector earnings preview - Sharekhan

Key points

 

* Unfavourable cross-currency movements to dampen growth:

The recent appreciation of the dollar by 10.4%, 4.1% and 8.3% against the euro, the pound and the Australian Dollar respectively would negatively affect the revenue growth of the top four IT companies by 200-250BPS in Q4FY2015. On a con

4/1/2015 11:16:26 AM | Posted in Broking Firm Views - Sector Report read full news
Thematic Report on PHARMA - Healthcare - Motilal Oswal Ltd

Indian generics: Fortified capabilities, sustained growth

Bullish outlook on Indian generics: ARBP, SUNP, and TRP our top bets

* Focus on complex generic opportunities in US, thrust on enriching domestic portfolio mix and potential upside from M&A would drive strong growth for Indian generic players (forecast 23% EPS

3/31/2015 1:08:47 PM | Posted in Broking Firm Views - Sector Report read full news
India Banks Private banks: What’s the pecking order? - Religare Securities Ltd

India Banks

Private banks: What’s the pecking order?

We prefer private sector banks over PSU banks due to their adequate capital levels, better margins/credit quality and strong loan growth prospects. We expect mid-size private sector banks to gain significant market share in the SME and MSME segments, translating i

3/31/2015 12:33:43 PM | Posted in Broking Firm Views - Sector Report read full news
India Auto Urban Consumer Survey - Religare Securities Ltd.

India Auto Urban Consumer Survey

Premium aspirations amid economic upturn

Key findings of our Urban Auto Consumer Survey covering 1,500 respondents from tier I & II cities in India are: (1) two-wheelers (2W) remain the preferred mode of transport and are viewed as a necessary rather than discretionary purchase; (2) sc

3/31/2015 12:13:51 PM | Posted in Broking Firm Views - Sector Report read full news
CNX AUTO moving towards its support zone of 8000. - GEPL Capital Ltd

Observation

• CNX AUTO index has underperformed last week as it has moved down sharply by 1.75% and closed at 8435.

• The sector formed lower tops & lower bottoms with respect to larger timeframe such as the weekly charts.

• Currently the Index gave a Ascending Channel Pattern break down that’s formed in last

3/30/2015 3:47:17 PM | Posted in Broking Firm Views - Sector Report read full news
March 2015 Update On IT Sector - Religare Securities Ltd.

Accenture earnings beat – Consulting drives surprise

Accenture (ACN) reported Q2FY15 revenues of US$ 7.5bn, up 12% YoY local currency (LC), beating expectations. Consulting revenues rose 11% YoY LC, outsourcing grew 13% YoY LC and order bookings were near record levels at US$ 9.4bn. ACN raised its full-year revenue guidance for the second time in two

3/30/2015 1:56:18 PM | Posted in Broking Firm Views - Sector Report read full news
March 2015 Update On Telecommunications Sector - Religare Securities Ltd.

Idea retains renewal circles; overall pricing to rise

Key highlights of the spectrum auction: (1) Idea holds its ground in circles put up for renewal, (2) Bharti/Idea/Reliance to pay Rs 30bn/Rs 31bn/Rs 10bn for spectrum, (3) higher renewal charges and auction outlay to strain balance sheets further. Overall, we think the industry now needs to push for tari

3/30/2015 1:40:16 PM | Posted in Broking Firm Views - Sector Report read full news
India Strategy : Rural fragility to prompt search for safe havens - Emkay Global Financial Services Ltd

Agricultural sector economics is running into trouble not just because of the recent unseasonal rains; supportive policy interventions have flagged and global prices have been softening. We maintain our Underweight Rural and preference for Urban themes1 . Declining cash flows for the sector will have significant impact on rural themes including consumer goods, autos, agri inputs and PSU bank

3/28/2015 2:53:35 PM | Posted in Broking Firm Views - Sector Report read full news
March 2015 Update On Telecommunications Sector - Emkay Global Financial Services Ltd

Auction done; Payouts for incumbents surprise negatively

* Aggressive bidding by incumbents in 900Mhz came as a negative surprise, similar to Feb-14 auction. As expected R-Jio did not buy spectrum in 900Mhz band.

* Reliance-Jio, Rcom and Tata Teleservices focused on 800Mhz band, spending Rs171bn in total. R-Jio bought 48.8Mhz spectrum in 10

3/28/2015 2:24:22 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector Update - Realisations for the quarter hit by a weak demand - Prabhudas Lilladher Ltd

India’s cement demand continued to remain tepid in March despite being a month of peak activity. Our channel checks suggest that the weakness has been so severe that cement companies have been compelled to cut their despatches by 20-30% even in the Northern region which has been one of the most stable regions. However, we believe that the current weakness in demand is abnormal, influen

3/27/2015 3:23:25 PM | Posted in Broking Firm Views - Sector Report read full news
March 2015 Update On FMCG Sector - Religare Securities Ltd.

RM index remains southbound

The RM index continued on a downward trajectory, dipping ~3% MoM in Feb’15 – this led to some pick-up in promotional activity in the month of March, though pricing action was subdued. We remain positive on the sector given (1) likely improvement in volume growth from higher consumer spending and (2) better margi

3/26/2015 10:55:48 AM | Posted in Broking Firm Views - Sector Report read full news
March 2015 Update On Metals & Mining Sector - Emkay Global Financial Services Ltd

Existing miners to be hit; Broad contours positive for the sector though

Key Highlights:

* Finally, the Rajya Sabha (Upper House of the Indian Parliament) has passed the MMDR bill albeit with some changes as proposed by the select committee as per the PIB release

* As against proposal of sharing an amount not e

3/25/2015 5:47:38 PM | Posted in Broking Firm Views - Sector Report read full news
March 2015 Update On India NBFCs Sector - Religare Securities Ltd.

India NBFCs

CV lenders:

Gearing up for a joyride We believe that the worst cycle for CV/CE lenders in the last 20 years is coming to an end. A strong cyclical upturn coupled with lower fuel and funding costs could turn FY17 into a bumper year. SHTF is our top pick in the sector; we also initiate coverage on CIFC and SCUF

3/25/2015 5:13:53 PM | Posted in Broking Firm Views - Sector Report read full news
CNX ENERGY facing strong resistance at 8700 - 8750 range. - GEPL Capital Ltd

Observation

* CNX ENERGY index shown a very volatile move last week as it has down by 0.89% and closed at 8355.

* The sector made a formation of lower tops & lower bottoms with respect to larger timeframe such as the weekly charts.

* The Index is moving in downward slopping Channel pattern from last eight months and is currently fa

3/23/2015 4:12:07 PM | Posted in Broking Firm Views - Sector Report read full news
CNX MEDIA has broken crucial support level of 2280. - GEPL Capital Ltd

Observation

* CNX MEDIA shown a very volatile move last week as it has up by 0.34% and closed at 2215.

* We observe a formation of lower tops & lower bottoms as per lar-ger timeframe like weekly since last two months.

* The Index has broken crucial support level of 2280 couple of weeks back and retest that level last week but coul

3/23/2015 5:03:17 PM | Posted in Broking Firm Views - Sector Report read full news
March 2015 Update On Construction & Infrastructure Sector - Emkay Global Financial Services Ltd

Key trends observed during the month with respect to project tenders, awards, port traffic, and NHAI & PGCIL awards.

*  Total value of tenders in YTDFY15 stood at Rs3690 bn (-17.4% YoY). We witnessed weak tendering in real estate, water supply, irrigation & hospitals segments. We also witnessed total number of tenders decreased

*&nbs

3/19/2015 1:28:20 PM | Posted in Broking Firm Views - Sector Report read full news
March 2015 Update On Telecom Sector - IDFC Securities Ltd

Event

The Department of Telecom (DoT), today released “Daily Public Report: End of Day 2” for the Mar’15 auctions. Five clock rounds of auction were conducted on Day 2. 900MHz band has seen further 16.5% increase over day 1 prices (~52% from reserve prices in total) while the other three bands (1800MHz, 800MHz, and 2100MHz) remained muted

3/17/2015 5:42:38 PM | Posted in Broking Firm Views - Sector Report read full news
Discoms financials: Cost pressure wanes - Motilal Oswal Ltd

Discoms financials: Cost pressure wanes

Drivers of power purchase cost-increase see course correction

*  Discoms’ (distribution companies) losses grew 5x over FY08-13 to INR1t, versus an average of INR200b pa over FY98-07, led by an increase in power purchase cost.

*  Key factors attributable a

3/17/2015 2:08:02 PM | Posted in Broking Firm Views - Sector Report read full news
CNX FINANCE could not sustained at higher levels of 8400 - GEPL Capital Ltd

CNX FINANCE could not sustained at higher levels of 8400.

CNX FINANCE      Current Close: 7755.70     Trend : Negative

*Observation

* CNX FINANCE index showing negative strength last week as it has moved down by 4.84% and closed at 7755.

* Index retest the 52 week high around

3/16/2015 2:48:53 PM | Posted in Broking Firm Views - Sector Report read full news