Hold ICICI Bank Ltd For Target Rs.290.00 - Sharekhan

Key points

* Mixed results with PAT better than expected but loan growth subdued: ICICI Bank posted mixed Q3FY2017 results, with earnings coming in better than expected, but worries on asset quality persisted – casting a shadow on the overall performance. ICICI Bank reported a PAT of Rs2,442 crore, which declined

18/02/2017 12:35:45 PM | Posted in Broking Firm Views - Long Term Report read full news
Reduce Pidilite Industries Ltd For Target Rs.642.00 - Emkay

Competition and RM inflation to keep margins at bay; Maintain Reduce

* Revenue and PAT above estimates - Revenues decline 0.3% yoy to Rs13.3bn while Standalone business revenue declined by 2.8% yoy; Consolidated EBITDA at Rs2.9bn declined 0.8% yoy, EBITDA margins steady at 21.8% (-10bps yoy) function of controlled ad spends, APAT at Rs2.0bn, up 1.7% yo

18/02/2017 12:27:58 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Tata Steel Ltd For Target Rs.440.00 - Religare sec

Q3 beat, Q4 looks stronger – upgrade to HOLD

TATA’s consol. Q3 EBITDA/PAT of Rs 35.4bn/Rs 1.7bn beat street estimates by 14%/55% led by strong India operations (EBITDA: + 77% QoQ to Rs 33.8bn, EBITDA/t: Rs 11,300 vs. Rs 7,300 in Q2). With TATA guiding for better Q4 EU profits, we expect a stronger performance QoQ as India operations mitigat

18/02/2017 12:19:51 PM | Posted in Broking Firm Views - Long Term Report read full news
Positive On Exide Industries Ltd - Sharekhan

Key points

*Q3FY2017 operating results below estimates due to demonetisation; higher other income leads to in-line PAT: Exide Industries (EIL) posted lower-than-estimated results for Q3FY2017, impacted by the government’s demonetisation move. The topline grew by 13% YoY to Rs1,729 crore (marginally lower than our

18/02/2017 12:12:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Jubilant Life Science Ltd For Target Rs.922.00 - India Nivesh Sec

Jubilant Pharma reported numbers which were below our estimates o EBITDA & Adj PAT level while revenue was exactly in‐line with our estimates. The miss on Adj PAT was mainly due to onetime financing charge of Rs 270 mn. Adjusting for this charge the miss was still 10% lower than our expectation.

Pharma business continued momentum & grew by ~15% y‐y v/s our estimate of 10%

18/02/2017 12:04:16 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ramco Cements Ltd For Target Rs.750.00 - Reliance Sec

Healthy Operating Performance Continues amid Realizations Pressure

Despite subdued realizations, Ramco Cements (RCL) reported healthy operating performance in 3QFY17 as well, though below our estimates. Operating profit grew by ~8% YoY to Rs2.62bn vs. our estimate of Rs2.8bn. The variance is mainly due to steeper ~6% YoY and ~2% QoQ drop in average rea

18/02/2017 11:53:28 AM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Glenmark Pharma Ltd For Target Rs.1,013 - Emkay

Zetia to keep earnings buoyant,Maintain ACCUMULATE

* Higher than expected gZetia numbers in Q3 portend much stronger numbers in Q4FY17. However uncertainties over base business performance continue to linger.

*Given strong gZetia cash flows, the extent of consequential debt reduction over the next few quarters is to be closely monitored. We e

18/02/2017 11:46:03 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Bank Of Baroda Ltd - Angel

Performance Highlights

BoB’s 3QFY17 results remained disappointing. The bank continues to face headwinds on asset quality on one hand, while on the other hand the balance sheet continued to de-grow as the management intentionally downsized some low margin business. Coming few quarters might be challenging for the bank.

 

18/02/2017 11:36:16 AM | Posted in Broking Firm Views - Long Term Report read full news
Reduce eClerx Services Ltd For Target Rs.1,315.00 - Reliance Sec

Disastrous Performance on All Counts

eClerx Services (eClerx) has delivered a disastrous performance in 3QFY17 with below par numbers on all key parameters. Revenue declined by 3.5% QoQ in USD terms (-2.6% QoQ in CC terms) to $47.2mn (4.4% below our estimate). EBIT margin nosedived by 620bps QoQ (643bps below our estimate), which resulted in 11.5% QoQ

17/02/2017 3:29:34 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apar Industries Ltd For Target Rs.762.00 - Emkay

* Apar reported a strong Q3FY17 earning growth which were above our estimate. While revenues declined 4.6% YoY to Rs 11.3bn; EBITDA went up 26.4% YoY to Rs 1.06bn and APAT increased 54.4% YoY to Rs 433mn

*Revenue declined across the conductors on account of processing of conductors for some parties (-12.5% YoY to Rs5.1 bn) and Speciality oil business due to lower realization (-11.7% Y

17/02/2017 3:22:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Info Edge (India) Ltd For Target Rs.950.00 - Sharekhan

Key points

* Weak performance affected by demonetisation: For Q3FY2017, Info Edge (India) has delivered a weak set of numbers, owing to the government’s demonetisation measure. For the quarter, revenue grew by 5.8% YoY to Rs186 crore due to a modest growth in the core Recruitment business (up by 8.6% YoY to Rs140.

17/02/2017 3:12:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Ramco Cements Ltd For Target Rs.723.00 - Karvy

Strong volume growth leads to better performance

Ramco Cements Q3FY17 EBITDA of Rs 2.62 bn (+7% YoY) came marginally lower than expected on account of lower than expected margins. Though volume growth of 22% YoY was better than expectation of 13% YoY, realisation came a tad lower with ~2% QoQ decline. EBITDA/ton stood at Rs 1319/t, declined by 12% YoY

17/02/2017 3:00:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral ACC Ltd For Target Rs.1,339.00 - Motilal Oswal

Weak volumes, coupled with higher cost, impact profit

*Sharp volumes decline: 4QCY16 volumes declined 9% YoY to 5.45mt (est. of 5.48mt) due to the impact of demonetization, particularly in non-south regions. Cement realization of INR4,377/t (+1% YoY, flat QoQ) came in better than our estimate of INR4,285/t. The company

17/02/2017 2:53:13 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Punjab National Bank Ltd For Target Rs.147.00 - Reliance Sec

Punjab National Bank

Asset Quality Pressure Recedes; Reiterate HOLD

Punjab National Bank (PNB) has delivered improved performance on asset quality front in 3QFY17 with fresh slippages declining to Rs56.6bn from Rs62.1bn and Rs92.1bn in 2QFY17 and 1QFY17, respectively. Further, its PCR improved to 55% in 3QFY17

17/02/2017 2:40:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Accumulate Alkem Laboratories Ltd For Target Rs.1,996.00 - Angel

Alkem Laboratories

Domestic business remains strong, US business shows strong growth:

Alkem reported revenue grew of 15% yoy in 3QFY17. Domestic revenue grew by 16.8% yoy to `1,030cr while exports grew by 18.7% to `432cr. US revenue grew by 30% yoy to `339cr. Other exports de-grew by 9.8% yoy as company contin

17/02/2017 2:32:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Coal India Ltd For Target Rs.300.00 - Emkay

Coal India’s January’17 both production and dispatch rose by 6% YoY

*For January’17, dispatch stood at 51 mt (+6%/-0.2% YoY/MoM). This was 92% of the target for the month. On a per day basis January’17 dispatch rose by 3% MoM to 1.66 mt. Offtake at ECL & MCL fell considerably by 12% and 3% YoY respectively.

* YT

17/02/2017 2:22:48 PM | Posted in Broking Firm Views - Long Term Report read full news
Derivative Ideas Hindustan Zinc Ltd For Target Rs.10.00 - Religare

Derivative Ideas

HINDZINC added around 3.7% of open interest as fresh long positions. Call buying (unwinding by writers) was seen as 305 & 310 strike. On charts, it is trading above short term as well as long term moving averages in higher highs higher lows formation. We expect it to test 320 levels in short term. We recommend buying HINDZINC 305 C

17/02/2017 12:03:27 PM | Posted in Broking Firm Views - Short Term Report read full news
Hold Dr. Reddy`s Laboratories Ltd For Target Rs.3,100.00 - Reliance Sec

Dr. Reddy’s Laboratories

Dr. Reddy’s Laboratories (DRRD) has topped our estimates in 3QFY17. EBITDA margin strongly improved by 5.9% QoQ led by a) better product-mix, b) seasonality in CIS, c) cost control measures, d) higher realization from biosimilar business, and e) favourable currency movement in Emerging Markets (EMs). This is despite

16/02/2017 3:12:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ITC Ltd For Target Rs.280.00 - RCML

ITC

6% excise hike manageable; GST a new goalpost

In its Union Budget today, the government announced a weighted average excise duty hike of ~6% on cigarettes (same across lengths). Unlike the last few years, we think this increase is rational and in line with nominal inflation growth. This along with ITC&rsqu

16/02/2017 2:58:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Granules India Ltd For Target Rs.152.00 - Emkay

Granules India

Result highlights

*Re-inspection of Gagillapur by Portugal regulator Inframed shortly likely to limit any revenue loss from stoppage of supplies to Europe

* Capacity constraints which have dragged growth likely to be resolved with new API capacities expected to come on stream by mid FY

16/02/2017 2:43:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy JK Lakshmi Cement Ltd For Target Rs.471.00 - Karvy

Lower costs led margin improvement

Q3FY17 operational performance was better than estimates. EBITDA came at Rs 827mn (vs. our estimate of Rs 520mn) led by better volumes and lower operating cost/ton. Volume growth of 4% YoY (led by East operations) was significantly better than estimate of ~7% de-growth. Margins were also better than estimates (EBITDA/

16/02/2017 2:29:36 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell BHEL Ltd For Target Rs.115.00 - Motilal Oswal

BHEL

Results beat, but weak execution and order pipeline warrant Sell

3QFY17 performance above estimates: Sales increased 18.7% YoY to INR63.2b, exceeding our estimate INR60.5b. Power segment sales grew by 18% YoY to INR50.9b and Industry segment sales by 20% YoY to INR13.7b. Improved pace of execution was dri

16/02/2017 1:20:27 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold Marico Ltd For Target Rs.270.00 - Reliance Sec

Marico

Volumes under Pressure; Stock Fairly Priced

Marico has reported mixed results in 2QFY17 with its consolidated revenues falling by 0.9% yoy to Rs14.4bn, while PAT rose by 18.1% yoy to Rs1.8bn. While volume grew by 3.5% yoy, flagship brand Parachute’s volume dipped by sharp 6% yoy. Trimming down our

16/02/2017 1:01:37 PM | Posted in Broking Firm Views - Long Term Report read full news