Update On Manpasand Beverages Ltd - Motilal Oswal

Revenue, EBITDA and PAT below estimates

* MANB reported overall revenue of INR2,672m (est. of INR3,272m) in 4QFY17, as against INR2,078m in 4QFY16, marking YoY growth of 28.6%.

* EBITDA margin shrunk 120bp from 20.6% in 4QFY16 to 19.4% (est. of 18.5%) in 4QFY17. EBITDA stood at INR518m (est. of INR605m), as against INR428m in 4QFY16, implyin

28/06/2017 2:47:39 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Cholamandalam Investment and Finance Ltd For Target Rs.1,250.00 - Motilal Oswal

Prepared, Equipped and Armed

On path to become one of India’s finest multi-product lenders

 From a niche vehicle financier, Cholamandalam Investment and Finance Corporation (CIFC) has transformed into a diversified asset finance play, with vehicle finance (VF) now comprising 69% of the loan book, followed by home e

27/06/2017 3:15:51 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Multi Commodity Exchange of India Ltd For Target Rs.1,300.00 - Motilal Oswal

Much-awaited SEBI guidelines on options finally out

Expect trading to commence – in gold to start with – from Aug/Sep 2017

* The Securities and Exchange Board of India (SEBI) on 13 June 2017 released a circular to stipulate the necessary guidelines with respect to the product design and risk management framework

27/06/2017 2:11:23 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zensar Technologies Ltd For Target Rs.1,020.00 - Motilal Oswal

A ctive Digital-oriented transformation

Synchronizing demand, offerings, delivery and sales

We attended the RPG Group analyst meet. Key highlights of the meeting with Zensar Technologies (ZENT):

* Duality in the business…: 80% of the incremental dollars are being spent on D

26/06/2017 5:22:42 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors Ltd For Target Rs.635.00 - Motilal Oswal

JLR May-17 volumes below est. at 47,131 units (+2% YoY)

LR volumes up 2%; Jaguar volumes too up ~2% driven by F-Pace and XF

* JLR May-17 wholesale volumes grew ~2% YoY (+12% MoM) to 47,131 units, below our estimate of 49,200 units.

* Jaguar volumes grew ~2% YoY to 12,652 units (est. of 14,200 units), driven by F-P

26/06/2017 4:50:26 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Zee Entertainment Enterprises Ltd For Target Rs.600.00 - Motilal Oswal

ZEEL revs up Digital Investments

* In an effort to consolidate and scale up its digital offerings, ZEEL acquired: the balance 49% in its subsidiary India WebPortal Pvt Ltd (IWPL) for INR2b at 6.3x trailing sales. (FY17 Revenue/PBT: INR6.47b/-INR1.38b) bought a 12.5% equity stake in Tagos Design Innovations Pvt. Ltd for INR163m.

* Along with

26/06/2017 4:20:46 PM | Posted in Broking Firm Views - Long Term Report read full news
Strong barriers to entry offer high growth opportunities - Motilal Oswal

Nascent market

Strong barriers to entry offer high growth opportunities

Key highlights:

* Among the elite, affluent and aspirers category of customers, PAGE’s men's innerwear products account for only 18.5% of the potential market, while its women's innerwear products command an even

26/06/2017 12:23:35 PM | Posted in Special Event Reports read full news
Identifying contrarian investment strategies that work - Motilal Oswal

It pays to be different

Identifying contrarian investment strategies that work

Contrarian investing is a time-tested investment tool, which involves buying/selling stocks that goes against the prevailing sentiment of crowd or the market. It is among the first lessons taught to budding investors and literature on the subject

Buy Dewan Housing Finance Corporation Ltd For Target Rs.559.00 - Motilal Oswal

Execution plans on track

Strong tailwinds for improving profitability

* We met management of Dewan Housing Finance (DEWH) at our ‘Affordable Housing Day,’ where it reiterated the medium-term execution plans.

* While yields are under pressure due to intensified competition, DEWH will continue benefiting

26/06/2017 10:51:09 AM | Posted in Broking Firm Views - Long Term Report read full news
Sell Gail India Ltd For Target Rs.357.00 - Motilal Oswal

A case for lower PE

US contracts pose threat of losses; downgrading to Sell

* GAIL is likely to find it challenging to get customers for the 5.8mmtpa import contracts it has signed with US companies. A hit of USD1/mmBtu on these long-term take-or-pay contracts could wipe out ~20% of its EBITDA.

* Incremental benef

24/06/2017 11:16:36 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral United Spirits Ltd For Target Rs.2,415.00 - Motilal Oswal

Longer-term opportunity intact

However, significant challenges on the horizon, too; maintain Neutral

We attended UNSP’s analyst meet. Our key takeaways:

* The management reiterated its target of double-digit sales growth over the next five years and continued premiumization-led margin improv

24/06/2017 10:30:53 AM | Posted in Broking Firm Views - Long Term Report read full news
Neutral Blue Star Ltd For Target Rs.610.00 - Motilal Oswal

GST, higher RM prices to impact 1QFY18 performance

Rating change in January 2018 to be potential market disruptor

 

We met the senior management team of Blue Star. Our key takeaways:

GST, higher RM prices to impact 1QFY18 performance; industry sales down 20% in May <

23/06/2017 11:35:06 AM | Posted in Broking Firm Views - Long Term Report read full news
Buy Tata Motors Ltd For Target Rs.635.00 - Motilal Oswal

Above est at 38.3k units (v/s est 34.4k), decline of 4% YoY

PVs grew 24% YoY led by new launches; CVs decline by 12% YoY

* Tata Motors May-17 sales volumes declined by 4% YoY (+24% MoM) to 38,361 units (v/s est 34,406 units) led by lower than expected decline in CV volumes post pre buying.

* While PV segment with

22/06/2017 3:33:41 PM | Posted in Broking Firm Views - Long Term Report read full news
Sell Steel Authority of India Ltd For Target Rs.30.00 - Motilal Oswal

Operating loss increases on RM cost

Net debt will continue to rise eroding equity value; Maintain Sell

SAIL’s EBITDA loss increased from INR0.4b in 3QFY17 to INR2.6b in 4QFY17 (est. profit of INR0.3b) as higher raw material cost offset the benefit of higher realization and lower employee cost. Adj. loss after tax of IN

22/06/2017 3:11:09 PM | Posted in Broking Firm Views - Long Term Report read full news
ATM cash withdrawals back to pre-demonetization levels - Motilal Oswal

Has demonetization led to higher digital payments?

Doubtful; ATM cash withdrawals back to pre-demonetization levels

*  One of the key structural benefits expected from the historic demonetization announced in November 2016 was a shift towards digital payments. However, the aggregate value of all transactions under elect

21/06/2017 4:55:02 PM | Posted in Special Event Reports read full news
Buy Hindustan Unilever Ltd For Target Rs.1,215.00 - Motilal Oswal

Higher premiumization to drive earnings

We attended HUVR annual investor meet 2017. Following are the key takeaways:

*  Clear focus on thought leadership far ahead of peers and improving accessibility of their core brands in each segment.

*  Far more emphasis on premiumization across segments than earlier.

21/06/2017 3:51:44 PM | Posted in Broking Firm Views - Long Term Report read full news
Neutral V-Guard Industries Ltd For Target Rs.167.00 - Motilal Oswal

Margins to face near term pressure; Growth intact

* EBITDA and PAT below estimates: VGRD reported revenue of INR6.23b (est. INR5.64b) in 4QFY17 as against INR5.13b in 4QFY16 marking a YoY growth of 21.4% led by strong growth in products like Pumps (up 28%), stabilizers (up 18%) and fans (up 17%) on the onset of a strong summer season.

20/06/2017 3:01:06 PM | Posted in Broking Firm Views - Long Term Report read full news
Buy Castrol India Ltd For Target Rs.531.00 - Motilal Oswal

EBITDA above estimate; volumes flat YoY, up 7% QoQ

* CSTRL’s 1QCY17 revenue grew 4% YoY and 13% QoQ to INR8.8b, marginally beating our estimate of INR8.5b, led by (a) YoY flat volumes, and (b) higher realizations on account of price hikes. Volumes were flat YoY but grew 7% QoQ to 50.2m liters. Implied realizations were higher at INR176/liter (+4

20/06/2017 2:35:26 PM | Posted in Broking Firm Views - Long Term Report read full news
EURINR (June) traded in a tight range between 72.55-72.05 last week - Motilal Oswal

USDINR:

The rupee fell against the US dollar after the Federal Reserve raised rates by 25bps and hinted towards raising rates one more time in this year. Hawkish stance by the Federal Reserve supported the dollar on lower levels. On the domestic front, the RBI released its policy statement and in line with expectation held rates unchanged. The central

The Fed chair was slightly hawkish that supported the greenback on lower levels - Motilal Oswal

Market Outlook:

After consolidating in a narrow range for the past few weeks the rupee managed to move higher but closed the week almost flat against the US dollar. In the past few weeks the pair has moved in the range of 64 and 65 and with no major economic data expected to be released during the week volatility for the rupee could remain low.

CAD narrows to 0.7% of GDP in FY17 - Motilal Oswal

CAD narrows to 0.7% of GDP in FY17

Gross domestic savings fall to 13-year low

* India’s current account deficit (CAD) widened from USD0.3b (or 0.1% of GDP) in 4QFY16 to USD3.4b (or 0.6% of GDP) in 4QFY17, but slimmed from USD22.1b (or 1.1% of GDP) in FY16 to USD15.2b (or 0.7% of GDP) in FY17. Excluding gold, current ac

19/06/2017 2:55:10 PM | Posted in Special Event Reports read full news
Sell Voltas Ltd For Target Rs.400.00 - Motilal Oswal

Voltas-BEKO JV: Targeting 10% market share in 10 years

BEKO to bring technology, european brand, product range

We interacted with the senior management team of Arcelik on its plans for the Voltas-BEKO JV in India. Our key takeaways:

10-year targets: USD1b sales, 10% market share, 11% margin

19/06/2017 2:06:21 PM | Posted in Broking Firm Views - Long Term Report read full news