Buy Reliance Industries Ltd For Target Rs.1,517.00 - Emkay

Broadly in-line; Maintain Buy

* Results beat marginally our estimates with EBITDA at Rs113bn (against our estimates of Rs111bn) due to higher than expected GRM. Also PAT came in at Rs81.5bn vs our estimate of Rs79.5bn. Due to forex gain interest expenses came down qoq. While tax out go was lower due to benefit of IndAS implementation which is expected

29/04/2017 10:59:51 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,700.00 - Motilal Oswal

One-off provision mars strong operating performance

* IndusInd Bank’s (IIB) 4QFY17 PAT grew 21% YoY (in-line) to INR7.5b. Provisions were elevated at INR4.3b as they included one-off amount of INR1.22b on a bridge loan for a cement M&A transaction (account remains standard), where the receivable is in June (likely to get reversed in 1QFY18).

29/04/2017 10:46:41 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Gujarat Gas Company Ltd For Target Rs.735.00 - Motilal Oswal

Abundant opportunity in long term, but short-medium term concerns to
continue

* The long-term opportunity for GUJGA is sizable, given just 18% penetration in the
PNG-domestic segment and 30% penetration in the CNG segment, coupled with
possible regulatory push.
* Combined pre-merger peak sales were 8-9mmscmd. Morbi, the largest

28/04/2017 4:17:14 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy HDFC Bank Ltd For Target Rs.1,750.00 - Sharekhan

Key points

* Solid performance in a challenging period: During Q4FY2017, HDFC Bank (HDFCBK) registered a strong performance (ahead of our as well as street expectation), with the Net Interest Income (NII) growing by 21.5% YoY to Rs9,055 crore on the back of asset growth of ~19% YoY and a core Net Interest Margin (NIM) of 4.3% vs 4.1% QoQ (4.2% YoY). N

28/04/2017 3:51:49 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold UltraTech Cement Ltd For Target Rs.4,542.00 - Karvy

Volumes remain muted…

UltraTech’s Q4FY17 operational performance was broadly in-line with our estimates with revenues/EBITDA came at Rs 65.9bn/12.8bn against our estimates of Rs 64.7.3bn/12.5bn. Blended cement sales volume remained flattish YoY while realisation declined 2% QoQ. EBITDA/ton declined 8% YoY to Rs 908/t (in-line with estimate

28/04/2017 3:46:15 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Sun TV Network Ltd For Target Rs.1,051.00 - Emkay

SUN is shining- Now with clarity on digitization in TN

* Recently, the Ministry of Information & Broadcasting finally issued a provisional digital addressable system (DAS) license to Tamil Nadu (TN) government-owned ARASU Cable TV Corporation but with the condition to complete digitation in three months

* This announcement paves the way f

28/04/2017 3:38:08 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Yes Bank Ltd For Target Rs.2,110.00 - Motilal Oswal

* We expect loan growth to be significantly ahead of system average at 25% YoY (nearly 5x industry growth rate) on the back of refinancing opportunities and strong growth in retail banking.

* We expect NIM to remain largely stable with falling yields negated by lower cost of funds on account of CASA inflows post demonetization and re-pricing of bulk deposits. Consequently, NII growth

27/04/2017 3:48:02 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Reliance Industries Ltd For Target Rs.1,550 - Sharekhan

Key points

* Higher than expected GRM leads to beat in operating profit: Reliance Industries (RIL) reported better-than-expected Q4FY2017 operating profit of Rs11,280 crore compared to our estimate of Rs10,711 crore, primarily on the account of a strong beat in GRM at $11.5/bbl (vs our expectation of $10.5/bbl) while the Petrochemicals EBIT margin at

27/04/2017 3:41:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IndusInd Bank Ltd For Target Rs.1,685.00 - Motilal Oswal

* We expect strong loan growth of ~24% in 4QFY17 – significantly ahead of system loan growth. Deposit growth would be strong at 32% YoY, aided by demonetization in 3Q. Continued market share gains in VF would remain a key factor to monitor.

* NIM is likely to decline marginally (by 5bp QoQ), but would remain at 3.8-3.9%. The quantum of CASA retained would be a key factor.

27/04/2017 3:29:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Hexaware Technologies Ltd For Target Rs.245.00 - Reliance Sec

Revenue Growth Enthuses; Guidance Reiterated

Hexaware Technologies (Hexaware) recorded a strong performance in 1QCY17 led by focus on niche sub-verticals like Travel and Capital Markets. USD revenue grew 4.2% QoQ in 1QCY17 (4% in CC terms) to $144.7mn (3.1% above estimate) mainly on strong volume growth of 3.8% QoQ. Vertical-wise, strong growth was rec

27/04/2017 3:17:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell ACC Cement Ltd For Target Rs.1,552 - Karvy

Lower costs led better than expected margins

ACC’s Q1CY17 operational performance better than our & consensus estimates, led by higher than expected volumes and lower than expected fixed costs. EBITDA of Rs 3.42 bn (-9% YoY) was 18% higher than our estimate of Rs 2.88 bn. Volume growth of 4% YoY was better than expectations. EBITDA/t stood a

25/04/2017 4:30:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Gruh Finance Ltd For Target Rs.421.00 - Motilal Oswal

Impressive all-round performance

* Gruh Finance (GRHF) reported PAT of INR1,104m (6% above our estimate) for 4QFY17, driven by strong loan growth, controlled operating expenses and lower provisioning charge.

* Loan growth for the quarter was a robust 19% YoY, marginally ahead of our expectation, driven by growth of 19% in housing loans and 37

25/04/2017 4:23:57 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy IRB Infrastructure Ltd For Target Rs.305.00 - Emkay

INVIT listing a positive trigger

Key INVIT listing highlights

* IRB’s upcoming INVIT listing for 6 projects priced at an EV of Rs58-59bn (1x implied P/B) will lead to net debt reduction of Rs47.4bn (includes Rs33bn of SPV level debt and Rs14bn of subordinated debt given by IRB to these SPVs).

25/04/2017 4:17:05 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Indraprastha Gas Ltd For Target Rs.1,023.00 - Motilal Oswal

Moving in the right direction, but fairly valued

We recently met management of Indraprastha Gas (IGL). Key takeaways:

CNG segment to see 8-10% growth

* At peak, Delhi Transport Corporation (DTC) had a fleet of 5,500 buses. However, due to the phasing out of older buses and the inability to add newer

25/04/2017 4:06:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Tata Consultancy Services Ltd For Target Rs.2,400.00 - Motilal Oswal

Margin aspirations face a stern test

 Mirrors opportunities and concerns similar to INFO: Retail and BFSI dragged TCS’ 4QFY17 CC revenue growth to 1% QoQ (est. of +2%). Like INFO, TCS demonstrated strength in Communications, cited concerns in Retail and optimism in BFSI through the course of the year. We now model 8.2% CC revenue growth for

22/04/2017 12:27:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Hold ACC Ltd For Target Rs.1,560.00 - Emkay

Lower costs led to beat at operating level, maintain HOLD

* ACC reported EBITDA of Rs3.4bn against our estimate of Rs3.1bn supported by lower opex/tn and impact of Ind-AS. EBITDA/tn of Cement was at Rs476 against our estimate of Rs429. Sales volume growth at 3.8% YoY was a positive surprise

* Sales volume was at 6.6mt against our estimate of

22/04/2017 12:16:56 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Coal India Ltd For Target Rs.335.00 - Motilal Oswal

COAL’s dispatch growth to accelerate despite substitution by RE

* Apparent coal demand growth has disappointed with a decline of 2.4% in FY17 due to destocking, efficiency gains, substitution (pet coke) and pick-up in renewable power generation. However, real consumption growth remains robust (e.g., 5% growth in the power sector).

* We

22/04/2017 12:07:35 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy ITD Cementation Ltd For Target Rs.203.00 - Emkay

Building a strong moat

Key highlights from CY16 Annual Report

* ITD Cementation India (ITCE) delivered a stable performance in CY16 with flat YoY revenue while EBITDA margin expanded by 60bps YoY to 6.8% and adjusted for cost overruns, ITCE’s EBITDA margin was 8.6%.

* Net debt reduced further t

22/04/2017 11:48:13 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On DCB Bank Ltd For Target Rs.158.00 - Motilal Oswal

* Loan growth (22% YoY) and deposit growth (28% YoY) are expected to be significantly above industry average. We expect NII to grow 24% YoY, led by strong loan growth, although margins are expected to contract ~10bp QoQ/YoY owing to pressure on yields.

* Non-interest income is expected to grow by ~22% YoY, led by healthy fee income and trading gains.

* Overall, we expect rev

22/04/2017 11:34:26 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Yes Bank Ltd For Target Rs.1,483.00 - Reliance Sec

Assets Quality Risks Persist; Reiterate HOLD

YES Bank has negatively surprised on both assets quality and bottom line front in 4QFY17 led by NPA recognition of few large corporate accounts in conformity with the divergences observed by the RBI. The Bank’s fresh slippages stood at Rs19bn in 4QFY17 compared to Rs1.3bn in 3QFY17 and Rs3.3bn in 4QFY1

22/04/2017 11:25:11 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Infosys Ltd For Target Rs.1,250.00 - Motilal Oswal

* In 3Q, INFO narrowed its guidance band to 8.4-8.8% YoY CC, implying 4Q revenue growth of 0.3-1.8% QoQ (mid-point of 0.1%).

* In CC terms, our revenue growth estimate is 1% QoQ on the back of improvement in top clients after the sharp fall seen in 3Q and the RBS ramp-down being behind. Cross-currency tailwinds of 50bp would result in USD revenue growth of 1.5%.

* Given the

22/04/2017 11:18:10 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Hindustan Zinc Ltd For Target Rs.293.00 - Emkay

Strong performance as expected!

* Revenue came in at Rs67.6 bn (+116%/+26% YoY/QoQ) driven by higher LME and volume. LME for Zinc stood at US$ 2773(+65%/+10% YoY/QoQ) & Lead at US$ 2269 (+30%/+6% YoY/QoQ) whereas volume surged by 37% and 15% YoY respectively for zinc and lead

* EBITDA stood at Rs 37.5 bn (+187%/+35% YoY/QoQ) due to operat

22/04/2017 11:08:49 AM | Posted in Broking Firm Views - Long Term Report read full news
Hold Jyothy Laboratories Ltd - Sharekhan

Key points

Stock surges by 16% in recent times; positives priced in:

Jyothy Laboratories’ (JLL) stock price has seen a strong run-up of ~16% in the last 15 days in the wake of Henkel AG (Henkel) getting more time to exercise its option of acquiring upto 26% stake in the company. Henkel has got an extensi

21/04/2017 3:52:11 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Larsen & Toubro Ltd For Target Rs.1,750.00 - Motilal Oswal

* LT announced order intake of INR278b in 4QFY17 compared to INR297b in 4QFY16. Order inflow during the quarter has been supported by large order finalization (>INR15b).

* Large orders worth INR210b were finalized during the quarter, of which domestic orders were INR105b and the balance were from overseas. Domestic order wins are supported by order finalization in the hydrocarbon a

21/04/2017 3:44:21 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Apollo Tyres Ltd For Target Rs.270.00 - Sharekhan

Key points

Commissioning of Hungary plant and receding threat from Chinese imports to boost topline:

Apollo Tyres (ATL) recently commenced operations at a greenfield facility in Hungary (Eastern Europe). The plant is already certified by leading OEMs for supplies and ATL can serve the OEMs through this new pla

21/04/2017 3:38:43 PM | Posted in Broking Firm Views - Long Term Report read full news