January 2015 Update On Pharma Sector - IndiaNivesh Securities Ltd

Q3FY15 is expected to be another quarter of moderate growth, however, stance remains positive

We expect 18 companies under INSPL Pharma universe to show aggregate sales and adjusted PAT growth of 17.3% y-y and 10.7% y-y to Rs296bn and Rs51bn (including financials of JOL). Excluding financials of JOL, we expect companies under our coverage to deliver sales

14/Jan/2015 02:38 PM | Posted in Broking Firm Views - Sector Report read full news
January 2015 Update On Oil & Gas Sector - IndiaNivesh Securities Ltd

*  In Q3FY15, Brent crude average price decreased 34% QoQ to US$ 77/bbl. Upstream companies revenue would be supported by lower under recovery and higher domestic gas prices. We estimate gross under-recoveries of Rs.150 bn and assume 50:50 sharing in Q3FY15 between the government and upstream companies. However as per media reports the government is likely to exempt ONGC and Oil India L

14/Jan/2015 02:17 PM | Posted in Broking Firm Views - Sector Report read full news
January 2015 Update On Cement Sector - IndiaNivesh Securities Ltd

Cement demand recovery continued in Q3FY15, primarily driven by uptick in execution of stuck infra projects. We estimate top-line growth in the range of 14.2% to 28.8% for the cement stock under our coverage.

Cement companies are likely to benefit positively on margin front in Q3FY15E, on account of 1) positive operating leverage from higher volume and 2) decline in coal and diese

14/Jan/2015 01:33 PM | Posted in Broking Firm Views - Sector Report read full news
January 2015 Update On Capital Goods Sector - IndiaNivesh Securities Ltd

Post 2014 General Election, new government has made several policy initiatives/ announcements to debottleneck the stuck infrastructure/power projects and bring new investments in the sector; these measures have resulted in sentiment improvement across sector. However, its impact is yet to reach the ground level in terms of new tendering activity/order finalization.

Operational per

14/Jan/2015 03:45 PM | Posted in Broking Firm Views - Sector Report read full news
Oct – Dec’14 Earnings Preview - Prabhudas Lilladher Ltd

Local execution remains key, Global events may play spoil sport

The equity markets touched a new high of 8,588 on November 28, 2014, before the correction and the sideways movement. We continue to reiterate that the market direction will be determined by the strength of the FII inflows as we enter the last quarter of FY15, we are likely to see an increased

09/Jan/2015 03:38 PM | Posted in Broking Firm Views - Sector Report read full news
Q3FY2015 earnings preview - Sharekhan

Key points

Flattish revenue growth more of an aberration:

In Q3FY2015 the aggregate revenue growth of the Sensex companies is likely to turn flattish (a growth of 1% year on year [YoY] is the expectation) and be the slowest in many quarters. Though the domestic demand-driven sectors are gradually showing signs of

09/Jan/2015 10:55 AM | Posted in Broking Firm Views - Sector Report read full news
Q3FY2015 Retail earnings preview - Sharekhan

Key points

*  Despite Q3FY2015 being a quarter that saw many festivals (the third quarter is the best quarter for retail players as retail products are sold at full price), the demand was lower than expected. Thus, on an average we expect the retail players to report a low double-digit revenue growth (barring Titan, which is expected to post a decline

08/Jan/2015 10:59 AM | Posted in Broking Firm Views - Sector Report read full news
Q3FY2015 Pharma earnings preview - Sharekhan

Key points

*  The growth in the pharmaceutical sector is expected to remain healthy in Q3FY2015 on the back of recovery in the domestic and Latin American business of Indian players in our Pharma universe. Although the absence of exclusivity type products, fewer number of product approvals in the USA during the quarter, USFDA's adverse inspections

08/Jan/2015 10:55 AM | Posted in Broking Firm Views - Sector Report read full news
Q3FY2015 Banking earnings preview - Sharekhan

Key points

*  We estimate the earnings growth of our banking universe will be strong (aggregate earnings up 26% YoY, earnings of public sector banks [PSBs] up 42%) in Q3FY2015 largely driven by treasury profits (due to a decline in bond yields). As the margins are expected to remain stable, the net interest income growth is likely to follow the credit

07/Jan/2015 01:59 PM | Posted in Broking Firm Views - Sector Report read full news
January 2015 Update On Mining Sector - Kotak Securities Ltd

The first phase of auctions has been divided into three tranches. The coal auction process for the first tranche kicks off with the auction/allocation of 42 mines which are operational. Out of these, 24 blocks are set aside for first tranche of auction and the remaining 17 blocks would be allocated to state owned units.

While the coal block auctions is expected to bring transparen

06/Jan/2015 03:17 PM | Posted in Broking Firm Views - Sector Report read full news
Q3FY2015 FMCG earnings preview - Sharekhan

Key points

Revenue growth to remain in low double digit:

For Q3FY2015, we expect the revenue growth of FMCG companies under our coverage to remain in low double digits (barring Marico and Bajaj Corp). The sales volume growth of most of the companies is yet to see a substantial revival and is expected to remain in

06/Jan/2015 01:51 PM | Posted in Broking Firm Views - Sector Report read full news
Q3FY2015 Auto earnings preview - Sharekhan

Key points

*  The automobile companies (ex Tata Motors) are expected to report a 7.5% growth in revenues for Q3FY2015. The growth is on the lower side as a couple of large companies, Mahindra & Mahindra (M&M) and Hero MotoCorp Ltd (HMCL), are expected to report a decline in revenues on account of lower volumes. Ashok Leyland Ltd (ALL) is expec

06/Jan/2015 01:22 PM | Posted in Broking Firm Views - Sector Report read full news
January 2015 Update On Capital Goods & Infrastructure Sector - Prabhudas Lilladher Ltd

While 2014 was a year of revival of hope and improved business sentiments, we believe 2015 could see hope turning into realty through a revival in investment cycle driven by various measures taken by government to remove bottleneck and pent up demand of last few year. Being on the cusp of change, we prefer companies with sustainable competitive advantage and companies who can deliver sustain

05/Jan/2015 05:24 PM | Posted in Broking Firm Views - Sector Report read full news
January 2015 Update On Automobiles Sector - Sharekhan

The domestic automobile industry ended the year 2014 on a high note with most passenger vehicle (PV) manufacturers reporting a strong growth in dispatches for the month of December. However, the government’s decision to not extend the concessional excise duty benefit has to some extend dampened the spirits of the sector. The decision would result in prices for end customers rising in t

03/Jan/2015 10:56 AM | Posted in Broking Firm Views - Sector Report read full news
Q3FY2015 Capital goods & engineering earnings preview - Sharekhan

Key points

*  We expect the aggregate revenues of the capital goods companies under our coverage to grow by 5% in Q3FY2015 due to a decline in the revenues of the heavyweight, BHEL. However, excluding BHEL, the aggregate revenues are expected to grow by 12% YoY. We expect most of the companies under our coverage to register revenue growth in the range

03/Jan/2015 10:51 AM | Posted in Broking Firm Views - Sector Report read full news
January 2015 Update On Metal Sector - Emkay Global Financial Services Ltd

Ferrous: Price decline continues owing to slack demand

*  Steel prices continued to reel under higher production along with subdued demand falling across regions. CIS price fell 5.3% to US$ 450/ tonne, while China HRC prices fell 1.9% to US$ 486/ tonne. Domestic long product prices remained weak while prices for flats stood stable

*  I

03/Jan/2015 10:21 AM | Posted in Broking Firm Views - Sector Report read full news
Q3FY2015 IT earnings preview - Sharekhan

Key points

*   Seasonally soft quarter, further dampened by cross-currency headwinds:

Given the furlough and holidays, the December quarter is usually a soft quarter for the sector and this time around it was further affected by crosscurrency headwinds, as the Euro, Pound and Australian Dollar has depreciated close

02/Jan/2015 09:40 AM | Posted in Broking Firm Views - Sector Report read full news
January 2015 Update On Banking Sector - Angel Broking Pvt Ltd

CNX PSU Bank (CMP: 4174)

Rationale:

The CNX PSU Bank Index formed a high around 4350 in 1st week of December 2014. Post that, the index corrected and retraced about 38.2% of the gains seen from low of 3250 in October 2014. Although the index has seen marginal recovery since then, it has underperformed the benchmark index

02/Jan/2015 02:57 PM | Posted in Broking Firm Views - Sector Report read full news
December 2014 Update On Cement Sector - Prabhudas Lilladher Ltd

The recent acquisition of Jaiprakash associate’s (JPA) 5mtpa MP based plants by Ultratech (UTCEM), has set the tone for talks heard in the street of further consolidation on how many more plants are left in offing? Based on media reports and our channel checks, we feel that JPA may also sell its 5mtpa HP plant and 2.2mpta Bhilai unit. We believe that HP plant would be an ideal fit for

30/Dec/2014 12:17 PM | Posted in Broking Firm Views - Sector Report read full news
Highway Hikers - I - Emkay Global Financial Services Ltd

Kolhapur-Pune-Satara Belt In a Nutshell…

Has Income level in the region been under pressure?

*  Weather related issues have impacted yields in the current year, weighing down on farm profitability

*  Uptick in non-farm share of family income - risen to 30% vs 10-15% a decade back

25/Dec/2014 02:52 PM | Posted in Broking Firm Views - Sector Report read full news
December 2014 Update On Mid-cap Cement Sector - Emkay Global Financial Services Ltd

We initiate coverage on mid-cap cement companies with a positive view and believe that these companies have more room for upsides, despite the rally seen in CY14. Cement companies are poised for strong earnings growth between FY14-17e led by improvement in cement demand, which would provide pricing power to manufacturers. Mid-cap cement companies stand to benefit in this up-cycle with higher

23/Dec/2014 10:23 AM | Posted in Broking Firm Views - Sector Report read full news
December 2014 Update On FMCG Sector - Emkay Global Financial Services Ltd

Expect Urban India to lead next leg of uptick –

*  Growth in FMCG sector seems to be stabilising for the past few quarters, after broad-based moderation witnessed in growth since FY13.

*  Few indicators are flashing Green - i) Sharp fall in CPI, ii) Uptick in consumer confidence indices, iii) Auto & Durables reported

22/Dec/2014 03:26 PM | Posted in Broking Firm Views - Sector Report read full news