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 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
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
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
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
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
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
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
Neutral On Havells India Ltd For Target Rs.425.00 - Motilal Oswal

* During the quarter, Havells acquired the consumer durables segment of Lloyd Electric and Engineering Limited for an enterprise value of INR16b on a debt-free, cash-free basis. Lloyd’s consumer durables arm has an annual turnover of INR12.4b.

* Standalone revenue is expected to register growth of 8% YoY. We expect the cables segment, which contributes 41% of the company’s

21/04/2017 3:28:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Cummins India Ltd For Target Rs.990.00 - Motilal Oswal

* We expect revenue to grow 19% YoY, supported by growth in the industrial (23%) and automotive (12%) segments. Industrial segment growth would be driven by a pick-up in infrastructure (roads and metros) and data center segments.

* Pick-up in the domestic demand environment and various pricing actions taken by KKC would help it to regain lost market share post CPCB-2 compliance.

21/04/2017 3:09:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Electronics Ltd For Target Rs.180.00 - Motilal Oswal

* Bharat Electronics (BHE) has received an offset contract from Elbit Systems for supply of 10 units of CoMPASS systems for use in the light combat helicopters being manufactured by HAL.

* BHE has launched a remote-controlled weapon system for MBT Arjun MK II, a weapon control system for 12.7mm gun of MBT Arjun MK II battle tank.

* BHE registered provisional revenue of INR88

20/04/2017 3:45:53 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On ABB Ltd For Target Rs.1,190.00 - Motilal Oswal

* ABB has received an order of INR43.5b from PGCIL to set up a transmission link between Raigarh and Pugular with 800KV HVDC systems.

* ABB continues to focus on increased localization and cost optimization. Its direct RM costs have declined to 64.5% of revenue from a peak of 81% in 4QCY10, well below its internal target of 65%. This has aided margins, despite negative operating lever

20/04/2017 3:31:43 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Maruti Suzuki Ltd For Target Rs.7,299.00 - Motilal Oswal

* Volume grew by ~15% YoY (+7% QoQ) in 4QFY17 to ~414,439 units, led by continuous better performance from Baleno and Brezza, with ongoing high waiting period.

* Net realization is likely to improve 6% YoY (+3.3% QoQ) to INR449,769 per unit, boosting net revenue by ~22% YoY (+10.5% QoQ) to INR186.4b. Growth in realization is likely to be driven by improvement in product mix due to com

20/04/2017 3:01:09 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Voltas Ltd For Target Rs.374.00 - Motilal Oswal

* Unitary cooling division (UCP) is likely to report revenue growth of 8% YoY, given primary channel filling, driven by a strong summer and LG vacating the fixed-speed air conditioning segment.

* We expect revenue growth of 6% YoY in the MEP segment, led by high base effect (37% YoY growth in 4QFY16). However, the key monitorable would be sustainability of margins in the segment. VOLT

19/04/2017 1:10:22 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Thermax Ltd For Target Rs.781.00 - Motilal Oswal

* During the quarter, Thermax through its step-down subsidiary, has agreed to acquire 100% stake in Barite Investments, Poland. The Polish company manufactures boilers and the acquisition would provide Thermax additional manufacturing capacity and help advance its business in the Eastern Europe region.

* Revenue is likely to register muted decline of 1% YoY, led by constrained executi

19/04/2017 1:02:29 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Siemens Ltd For Target Rs.1,340.00 - Motilal Oswal

* During the quarter, SIEM in JV with Sumitomo Electric Industries has been awarded an order from Power Grid to supply HVDC transmission system for the Pugalur-Thrissur line. The total order size is USD520m (INR34.3b), of which SIEM’s share is INR16.8b.

* SIEM received an order from Delhi Transco to install 220/66/33KV GIS substation at RK Puram.

* SIEM has received an

19/04/2017 12:50:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Mahindra & Mahindra Ltd For Target Rs1,573.00 - Motilal Oswal

* Overall volumes were up ~1% YoY (-7% QoQ), as a 16% YoY growth in tractors was offset by 4% YoY decline in the automotive segment. UVs (incl pick-ups) declined by 1% due to competition and benign rural growth.

* MM (including MVML)’s realization is expected to decline by ~1% YoY (+4% QoQ), as better product mix due to increase in share of tractors is offset by increase in lowe

17/04/2017 3:19:10 PM | Posted in Broking Firm Views - Long Term Report read full news
BUy Hero MotoCorp Ltd For Target Rs.3,390.00 - Motilal Oswal

* Sales volume declined ~6% YoY (+10% QoQ) to 1.62m units, led by gradual recovery post demonetization impact derailed November and December sales volumes. Also due to higher inventory at dealer level of BS-III vehicle post ban by apex court, the focus was to clear the inventory at dealer level. The retail sale for March 2017 was 15% higher than wholesale for the month.

* Realization

17/04/2017 3:13:03 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Exide Industries Ltd For Target Rs.270.00 - Motilal Oswal

* We expect net revenue to grow 13% YoY (+15% QoQ) to INR19.9b as better replacement demand recovery post demonetization and higher OEM demand too.

* EBITDA margin is likely to remain flat YoY (+180bp QoQ) to 15.1% as replacement price has been increased by 10% from Nov 16 to Mar 17 due to increase in Lead prices.

* Lead prices have gone down by ~4% QoQ in 3QFY17, the effect

17/04/2017 2:44:10 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Escorts Ltd For Target Rs.608.00 - Motilal Oswal

* We expect 22% YoY growth in revenue to INR9.8b, led by strong performance in the tractor division. Construction equipment division is also expected to perform well along with railways.

* EBITDA margin is likely to improve 350bp YoY to 8.3%, translating into EBITDA growth of 110% YoY to INR815m.

* We expect PAT to grow 69% YoY to INR513m. Buy.

 

14/04/2017 11:15:50 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Eicher Motors Ltd For Target Rs.28,811.00 - Motilal Oswal

* Royal Enfield’s volumes grew by 20% YoY (+2.5% QoQ) to 173,838 units, insulated by demonetization as it has an average waiting period of 2-3 months. Net realization is expected to improve by 1.8% YoY (+0.6 QoQ), supported by price hikes. EBITDA margin should expand 240bp YoY to 32% (+50bp QoQ), driven by operating leverage.

* VECV’s volume increased by ~11% YoY (+46.2% Q

14/04/2017 11:05:03 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Ceat Ltd For Target Rs.1,406.00 - Motilal Oswal

* We expect revenue to grow 2% YoY (QoQ up 6%) to INR16.5b in 4QFY17. Revenue growth will be subdued on account of volumes decline in Truck and Bus segment, and a fall in realizations.

* Margins are likely to contract 230bp YoY to 9% on account of volatility in raw material prices. EBITDA is expected to decline 19% YoY to INR1,488m.

* Thus, we estimate adjusted PAT at INR777

14/04/2017 10:50:18 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral On Bosch Ltd For Target Rs.22,924.00 - Motilal Oswal

* Net revenue is likely to grow ~13% YoY (+4.4% QoQ) to INR27.9b led by pre buying sales before implementation of BS-IV in commercial vehicle and higher PV sales.

* EBITDA margin is expected to remain flat YoY, led by lower gross margin due to higher trading content and higher commodity prices.

* EBITDA is projected to grow 13% YoY to ~INR6.2b.

* Adjusted PAT is li

14/04/2017 10:15:39 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Bharat Forge Ltd For Target Rs.1,182.00 - Motilal Oswal

* We expect BHFC’s shipment tonnage to remain flat YoY to 52,649 tons, which is a an improvement from decline in the previous quarters as demand for class 8 trucks are showing signs of improvements along with revival in industrial segments. Net realization is likely to increase ~7% YoY to ~INR205.1k/ton.

* As a result net revenue would increase 7% YoY (+14% QoQ) to ~INR10.8b.

13/04/2017 3:39:24 PM | Posted in Broking Firm Views - Long Term Report read full news