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Insurance Sector Update : Life New Business — Aug-23: Robust growth for the private sector By Emkay Global Financial Services The life insurance industry delivered healthy retail APE growth of 14.4% for Aug-23, led by the private sector growing strongly at 20.7% and LIC posting a muted show at 3% YoY for Aug-23. For YTDFY24, the private sector delivered decent 12.7% retail APE growth; however, LIC’s flat performance (+0.1% YoY) resulted in the overall industry delivering 8% YoY retail APE growth. Healthy growth in retail APE among private players is expected to be driven by traction in the retail protection se...
Insurance Sector Update : Life New Business — Aug-23: Robust growth for the private sector By Emkay Global Financial Services
Insurance Sector Update : Life New Business — Aug-23: Robust growth for the private sector By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
9/09/2023 11:59:31 AM
Buy CESC Limited For Target Rs.105 For Target - We re-iterate BUY on CESC with Sep’24 TP of Rs105 as operational metrics continues to see improvement. During July and August 2023 cumulatively, CESC License Generation power plant and HEL power plant (1,125MW + 600MW capacity) generated 2,030MUs (16% growth YoY) vs 8% YTD. CESC’s DIL power plant (600 MW capacity) has seen generation growth of 27% YoY during the first two months of 2QFY24 (YTD ~13% growth YoY). YTD PLF for DIL stands at 90% vs 80% YoY. Rajasthan DFs had reported p...
Buy CESC Limited For Target Rs.105 For Target -
Buy CESC Limited For Target Rs.105 For Target -
Source: Emkay Global Financial Services Ltd
9/09/2023 11:53:31 AM
Insurance Sector Update : The life insurance industry delivered healthy retail APE growth of 14.4% By Emkay Global Financial Services The life insurance industry delivered healthy retail APE growth of 14.4% for Aug-23, led by the private sector growing strongly at 20.7% and LIC posting a muted show at 3% YoY for Aug-23. For YTDFY24, the private sector delivered decent 12.7% retail APE growth; however, LIC’s flat performance (+0.1% YoY) resulted in the overall industry delivering 8% YoY retail APE growth. Healthy growth in retail APE among private players is expected to be driven by traction in the retail protection se...
Insurance Sector Update : The life insurance industry delivered healthy retail APE growth of 14.4% By Emkay Global Financial Services
Insurance Sector Update : The life insurance industry delivered healthy retail APE growth of 14.4% By Emkay Global Financial Services
Source: Emkay Global Financial Services
8/09/2023 3:32:50 PM
Buy CESC Ltd For Target Rs.105 - Emkay Global Financial We re-iterate BUY on CESC with Sep’24 TP of Rs105 as operational metrics continues to see improvement. During July and August 2023 cumulatively, CESC License Generation power plant and HEL power plant (1,125MW + 600MW capacity) generated 2,030MUs (16% growth YoY) vs 8% YTD. CESC’s DIL power plant (600 MW capacity) has seen generation growth of 27% YoY during the first two months of 2QFY24 (YTD ~13% growth YoY). YTD PLF for DIL stands at 90% vs 80% YoY. Rajasthan DFs had reported p...
Buy CESC Ltd For Target Rs.105 - Emkay Global Financial
Buy CESC Ltd For Target Rs.105 - Emkay Global Financial
Source: Emkay Global Financial Services
8/09/2023 3:28:15 PM
Logistics Sector Update : Q1FY24 review: Yet again a subdued quarter though earnings are likely to have bottomed out By Emkay Global Financial Services We monitor monthly indicators to assess the freight and cargo movement across the road, port and rail network. For Aug-23, freight movements across all modes of transportation witnessed healthy growth, with GST e-way bill generation up 20% YoY, cargo volumes carried by Indian Railways (IR) growing 6.4% YoY, and major port volumes improving 4.4% YoY. Container cargo volumes increased by 16% on a YoY basis, post a tepid Q1FY24 (+1% YoY), suggesting positive volume trends for rail logistics oper...
Logistics Sector Update : Q1FY24 review: Yet again a subdued quarter though earnings are likely to have bottomed out By Emkay Global Financial Services
Logistics Sector Update : Q1FY24 review: Yet again a subdued quarter though earnings are likely to have bottomed out By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
7/09/2023 4:01:11 PM
Perspective on markets by Mr. Jaykrishna Gandhi, Emkay Global Financial Services  Below the perspective on markets by Mr. Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services. “Nifty gained 1% for the week largely driven by IT and pharma. Increasingly the market is showing signs of weakness driven by weaker monsoon, stronger dollar and put/call ratio has breached 1.4 for today. For the first time in a the past few months we are seeing some rationality coming in amongst mid/small caps. However, consisten...
Perspective on markets by Mr. Jaykrishna Gandhi, Emkay Global Financial Services
Perspective on markets by Mr. Jaykrishna Gandhi, Emkay Global Financial Services
Source: Emkay Global Financial Services
6/09/2023 6:09:33 PM
Cement Sector Update : All eyes on price hikes By Emkay Global Financial Services Our channel checks suggest that pan-India average cement prices declined marginally (Rs2/bag) to Rs372/bag in Aug-23. Cement prices declined 3% MoM in the East, ~1% in South, and broadly stood flat in other regions. Average prices in Q2FY24-TD have declined by Rs3/bag vs. Rs10-12/bag in the past 3- 4 years over the same period. Industry volumes have likely grown in high single digits MoM in Aug-23, owing to lower intensity of rains. While volumes have likely grown in low teens YoY in Jul-Aug ...
Cement Sector Update : All eyes on price hikes By Emkay Global Financial Services
Cement Sector Update : All eyes on price hikes By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
6/09/2023 1:57:07 PM
IT Sector Update : Macro performance to drive IT recovery - Emkay Global Financial Services Our analyses of 22 global technology companies’ recent quarter performance and management commentary suggest stability in demand rather than optimism. Macro uncertainties and an elongated sales cycle continue to weigh on demand and growth visibility. A majority of the companies have resisted predicting the recovery timeline, with the occurrence of recession being an irritant in any normalization. On the flip side, for the longer term, all companies remain optimistic, with technology bec...
IT Sector Update : Macro performance to drive IT recovery - Emkay Global Financial Services
IT Sector Update : Macro performance to drive IT recovery - Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
6/09/2023 1:45:04 PM
Hold Tata Communications Ltd For Target Rs.1,710 - Emkay Global Financial Services We visited TCom’s Customer Experience Center located in Mumbai, which was launched around April 2022. The center is divided into four zones and creates curated journeys, depending upon customers and their interests, using various use-cases. The discussions are about TCom’s capabilities (what TCom can do) as well as its credibility (where TCom has implemented its applications). The center gives an insight into the company’s Digital Platform and Solutions (DPS) and discusses c...
Hold Tata Communications Ltd For Target Rs.1,710 - Emkay Global Financial Services
Hold Tata Communications Ltd For Target Rs.1,710 - Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
4/09/2023 3:53:20 PM
GDP growth will likely moderate in the quarters ahead Going ahead, GDP growth will likely moderate in the quarters ahead, Emkay Global Financial Services said in a report. Falling income growth in the urban sector, shrinking corporate profitability, fading momentum in (front-loaded) government capex, demand-curbing monetary policies and diminishing global growth prospects may weigh on output, the report said. Even as domestic activity is maintaining resilience, economic activity recovery is not yet broad-based. While rural income has remai...
GDP growth will likely moderate in the quarters ahead
GDP growth will likely moderate in the quarters ahead
Source: IANS
1/09/2023 1:58:24 PM
Economy Sector Update : Steady growth but moderation ahead By Emkay Global Financial The services sector, led by Financial and RE services, anchored Q1FY24 growth (7.8%), while manufacturing growth disappointed despite reporting healthy operating profit amid the drop in commodity prices. The expenditure side depicted an uptick in private consumption growth and broadly steady investment growth (led by government capex, and some traction by the private sector), while net exports were more of a drag. Going ahead, GDP growth will likely moderate in the quarters ahead. Falling ...
Economy Sector Update : Steady growth but moderation ahead By Emkay Global Financial
Economy Sector Update : Steady growth but moderation ahead By Emkay Global Financial
Source: Emkay Global Financial Services
1/09/2023 12:59:00 PM
BFSI Sector Update : Growth trending well, but could El-Nino be a party spoiler By Emkay Global Financial Credit growth running ahead of expectation, led by unsecured retail and corporate credit pick-up The Indian banking system’s growth remains robust at 14.9% YoY (ex-HDFCL) for the fortnight ended August 11, 2023 (vs. 14.7% YoY for the previous fortnight); and if the current momentum continues, it could surpass the earlier expected 12% growth in FY24. The current credit momentum is supported by aggressive growth in unsecured loans (incl. PL and Cards) as banks remain pro-risk, while un...
BFSI Sector Update : Growth trending well, but could El-Nino be a party spoiler By Emkay Global Financial
BFSI Sector Update : Growth trending well, but could El-Nino be a party spoiler By Emkay Global Financial
Source: Emkay Global Financial Services
1/09/2023 12:52:43 PM
Perspective on GDP Q1 FY24 by Ms. Madhavi Arora, Emkay Global Financial Below The Perspective on GDP Q1 FY24 by Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services “While the Apr-June Q growth print is in line with our expectations, the growth mix was a bit of a surprise. Ideally, the YoY fall in commodity prices should have boosted manufacturing firms’ operating profits and thereby lifted the value added growth of manufacturing sector. Thus, the disappointment on that front was surprising. On the other hand, strong government capex ...
Perspective on GDP Q1 FY24 by Ms. Madhavi Arora, Emkay Global Financial
Perspective on GDP Q1 FY24 by Ms. Madhavi Arora, Emkay Global Financial
Source: Emkay Global Financial Services
1/09/2023 11:25:37 AM
Hold Reliance Industries Limited target price at Rs 2,660 - Emkay Global Financial Services Ltd RIL hosted its 46th AGM today, wherein CMD Mukesh Ambani laid out a five-year succession road map, while recommending his three children on the company’s board. JioAirFiber’s commercial launch date is set on September 19, 2023. 5G adoption stands at 50mn (~11%). O2C’s transition into a sustainable, green, circular and consumer-integrated business has been reiterated. In new energy, 100GW of renewable rather than solar energy capacity was reiterated with wind power also being...
Hold Reliance Industries Limited target price at Rs 2,660 - Emkay Global Financial Services Ltd
Hold Reliance Industries Limited target price at Rs 2,660 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
29/08/2023 2:59:58 PM
Buy Piramal Enterprises Ltd For Target Rs.1,230 - Emkay Global Financial Services Piramal Enterprises (PIEL) hosted its Investor Day on August 28, where the top management reaffirmed its earlier-stated ambition to double FY23 loan AUM by FY28 (Rs1.2-1.3trn) and deliver a consolidated RoA of ~3%. Importantly, the strategy to achieve this medium-term target was also reiterated as being a 70:30 retail to wholesale AUM mix. In retail, the approach is multiproduct offering to target the customers of Bharat without directly competing with large banks; while in wholesale, the foc...
Buy Piramal Enterprises Ltd For Target Rs.1,230 - Emkay Global Financial Services
Buy Piramal Enterprises Ltd For Target Rs.1,230 - Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
29/08/2023 2:50:37 PM
Perspective on MPC by Ms. Madhavi Arora, Emkay Global Financial Services Below The Perspective on MPC by Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services   MPC minutes: Caution but no action ahead (1) Cautious tone and stress on supply side ? The August MPC meeting minutes have cautious traces, but not ominous enough to change the narrative on net. The choice of policy flexibility, vigilance and focus on the durable elements of inflation dominated the minutes. ? Most of them admitted that RBI could not...
Perspective on MPC by Ms. Madhavi Arora, Emkay Global Financial Services
Perspective on MPC by Ms. Madhavi Arora, Emkay Global Financial Services
Source: Emkay Global Financial Services
25/08/2023 4:25:25 PM
Sell Colgate Palmolive Ltd For Target Rs. 1,720 - Religare Broking Ltd Colgate India hosted its ‘Brands Day’, where it showcased its capability in Oral Care that resonates in its category leadership spot. Of the 15 walk-through sessions (for highlighting brand positioning and efficacy of offerings), one distinct aspect was that Colgate is looking to improve consumer awareness on dental issues and premiumizing the category. The missing link though was its strategy for the rural market, of persuading 55% of consumers to brush daily. Mgmt emphasized its...
Sell Colgate Palmolive Ltd For Target Rs. 1,720 - Religare Broking Ltd
Sell Colgate Palmolive Ltd For Target Rs. 1,720 - Religare Broking Ltd
Source: Emkay Global Financial Services Ltd
24/08/2023 2:05:43 PM
Emkay Confluence: Unleashing India`s Potential Day 3 Highlights By Emkay Global Financial Services Emkay Confluence: Unleashing India's Potential Day 3 Highlights A blockbuster finish to a thumping 3-day conference, with participation by nearly 50 companies on Day-3! To conclude, we hosted about 151 companies over 3 days, with more than 500 clients registering and consuming 3,600 meetings. Ironically, while most companies (infrastructure/capital goods, EMS, banks, consumer discretionary, retail, etc) share a confident outlook, investors at margin are more cautious. While valuations ...
Emkay Confluence: Unleashing India`s Potential Day 3 Highlights By Emkay Global Financial Services
Emkay Confluence: Unleashing India`s Potential Day 3 Highlights By Emkay Global Financial Services
Source: Emkay Global Financial Services
21/08/2023 12:59:21 PM
Economy Sector Update : Tomatoes lead to red-hot inflation spike By emkay global financial services limited Inflation spiked to 7.44% led by perishables, mainly vegetables, thus inking the highest sequential monthly print on record. Core inflation fell to 5.0% YoY. We are currently tracking August CPI at 7.5%, and raise our FY24 forecast to 5.5% (RBI: 5.4%), while re-iterating our view of a continued rate pause, with upside risks from adverse weather conditions and global volatility. Headline CPI shoots up to 7.44%, on the back of food price spike CPI inflation sharply rose to 7.44% YoY in Ju...
Economy Sector Update : Tomatoes lead to red-hot inflation spike By emkay global financial services limited
Economy Sector Update : Tomatoes lead to red-hot inflation spike By emkay global financial services limited
Source: Emkay Global Financial Services
18/08/2023 2:17:34 PM
Buy Crompton Greaves CE Ltd For Target Rs.336- emkay global financial services limited Crompton Greaves Consumer reported another muted quarter, logging only 1% YoY revenue growth owing to the 6% growth in ECD being offset by the decline of 13% in Lighting and of 14% in BGAL. ECD growth was led by premium Fans (22%) and Appliances (19%). Margins, however, dipped due to higher cost of BEE-compliant fans, increased A&P spends for brand-building and loss in builtin kitchen appliances. Cost initiatives led to expansion of margin in Lighting (by ~310bps), despite the decline in ...
Buy Crompton Greaves CE Ltd For Target Rs.336- emkay global financial services limited
Buy Crompton Greaves CE Ltd For Target Rs.336- emkay global financial services limited
Source: Emkay Global Financial Services
18/08/2023 1:04:25 PM
Hold Amara Raja Batteries Ltd For Target Rs.590 -Emkay Global Financial Services Ltd AMRJ’s Q1 revenue beat expectations, while margins missed estimates (down by 110bps QoQ to 12.8%; Emkay: 14.4%), on adverse mix and higher insurance spends. We build-in ~10%/~12% revenue/EBITDA CAGR over FY23-25E, factoring-in sustained recovery in the base lead-acid business (amid uptick in replacement demand and stability in RM prices). We introduce FY26 estimates and reduce FY24E EPS by 4.4%, to reflect the Q1 margin miss, keeping FY25E EPS unchanged. Importantly, with SOP for phase-...
Hold Amara Raja Batteries Ltd For Target Rs.590 -Emkay Global Financial Services Ltd
Hold Amara Raja Batteries Ltd For Target Rs.590 -Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services
18/08/2023 12:58:26 PM
Emkay Confluence: Unleashing India`s Potential Day 2 Highlights By Emkay Global Financial Services Day 2 of our Emkay Confluence set a record, with nearly 65 companies and over 500 clients taking in about 1,500 meetings in all. First, a quick glance at the key takeaways from the MainTrack session: MainTrack summaries: * Bhargav Dasgupta @ICICI Lombard remains bullish on growth prospects of GI in India, given not only the apparent under-penetration in most categories but also the non-substitutability of pure risk products. He feels Home Insurance is where Health was a decade ago &mdas...
Emkay Confluence: Unleashing India`s Potential Day 2 Highlights By Emkay Global Financial Services
Emkay Confluence: Unleashing India`s Potential Day 2 Highlights By Emkay Global Financial Services
Source: Emkay Global Financial Services
18/08/2023 12:23:42 PM
Emkay Confluence: Unleashing India`s Potential Day 1 Highlights By Emkay Global Financial Services Day 1 of the Conference kicked off in a grand way, with participation by 44 companies. We saw 460 plus clients consuming over 1100 meetings through the day. Our carefully-chosen MainTracks covered the hotly-debated topics of green energy (Mr Sarma @Larsen), EMS (Mr Lall @Dixon) and NBFC renaissance (Mr Piramal @Piramal Group). MainTrack Takeaways Despite attendance by managements of disparate sectors, enthusiasm about future growth and India’s manufacturing resurgence was clearly ...
Emkay Confluence: Unleashing India`s Potential Day 1 Highlights By Emkay Global Financial Services
Emkay Confluence: Unleashing India`s Potential Day 1 Highlights By Emkay Global Financial Services
Source: Emkay Global Financial Services
18/08/2023 12:15:47 PM
Buy Suprajit Engineering Ltd For Target Rs.440 - Emkay Global Financial Services Suprajit Engineering Limited's (SEL) Q1 performance was a miss with margins declining by ~200bps QoQ to 10.5% (our est. 12.7%). We believe i) cyclical recovery in the underlying industries, ii) market-share gains owing to competitive pricing/scale and industry consolidation, iii) growth in content per vehicle (led by new products) and iv) healthy order wins would drive ~11% revenue CAGR in FY23-25E. We introduce FY26E and cut FY24E EPS by 11.6% mainly to reflect weak Q1 margin performance...
Buy Suprajit Engineering Ltd For Target Rs.440 - Emkay Global Financial Services
Buy Suprajit Engineering Ltd For Target Rs.440 - Emkay Global Financial Services
Source: Emkay Global Financial Services
17/08/2023 12:38:34 PM
Buy ITC Ltd For Target Rs. 535 - Emkay Global Financial Services Ltd We hold a positive stance on ITC, heartened by its improved management execution, ahead-of-time investment in businesses, and leadership position in most segments. Overall revenue fell 8% in Q1, while growing 11% adjusted for Agri revenue; Cigarettes net sales grew 11% (volume growth estimate: ~8%) and Other FMCG sales growth was a healthy 16%. Cigarettes EBIT grew 11% YoY (as it navigates margin pressure well), with EBIT margin at 74.2%, up by ~20bps YoY. Other FMCG EBITDA margin stands at 1...
Buy ITC Ltd For Target Rs. 535 - Emkay Global Financial Services Ltd
Buy ITC Ltd For Target Rs. 535 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services
17/08/2023 12:17:34 PM
Consumer Goods Sector Update : Near-term execution key, margin & volume tussle continues - Emkay Global Financial Services Ltd FMCG companies put up a low-key show on the topline front in Q1FY24, where pricing growth anniversarized and volume growth was lackluster (sector volume growth stood at 7.5%, but only 0-4% for our coverage companies, except GCPL that saw 12% growth). However, from the margin perspective, there has been healthy recovery, driven by easing in raw-material costs. Earnings delivery was relatively better, with improvement in margins. Going ahead, companies would strive for growth in volume over mar...
Consumer Goods Sector Update : Near-term execution key, margin & volume tussle continues - Emkay Global Financial Services Ltd
Consumer Goods Sector Update : Near-term execution key, margin & volume tussle continues - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services
17/08/2023 12:11:01 PM
Perspective on CPI data by Ms. Madhavi Arora, Emkay Global Financial Below The Perspective on CPI data by Ms. Madhavi Arora, Emkay Global Financial “The bulk of the increases is being seen in perishables, like vegetables, which, given the surge in tomato prices, has produced the highest sequential monthly print on record.  Non-perishables in the food basket are also seeing consistently higher prices, in particular cereals, pulses, and spices. Until early august there were no signs of any sequential moderation in food prices, However, the Govt int...
Perspective on CPI data by Ms. Madhavi Arora, Emkay Global Financial
Perspective on CPI data by Ms. Madhavi Arora, Emkay Global Financial
Source: Emkay Global Financial Services
15/08/2023 9:24:28 AM
PSU bank stocks best performers in trade while private sector banks down after RBI raises CRR provision Public sector banks are up in trade but private sector banks are down following RBI's decision to hike CRR provision to curb liquidity. Among private sector banks, Indusind Bank is top loser in Sensex, down 1.5 per cent. ICICI Bank, Axis Bank and HDFC Bank are also trading down. On the other hand, PSU banks are flying. Indian Overseas Bank is up more than 11 per cent, Central Bank of India is up more than 7 per cent, UCO Bank is up more than 5 per cent, Punjab and Sind Bank is up 4....
PSU bank stocks best performers in trade while private sector banks down after RBI raises CRR provision
PSU bank stocks best performers in trade while private sector banks down after RBI raises CRR provision
Source: IANS
11/08/2023 2:09:29 PM
Rate cut may not materialise before last quarter of FY24 Given such uncertainty on the inflation front, the likelihood of an extended pause on interest rates has been reinforced, says Suman Chowdhury, Chief Economist, and Head- Research, Acuite Ratings & Research. “In our opinion, any possible rate cut may not materialize before the last quarter of FY24. The liquidity will be slightly tighter than expected in the near term due to the ICRR imposition and this may lead to some increase in short-term rates,” Chowdhury said. Clear...
Rate cut may not materialise before last quarter of FY24
Rate cut may not materialise before last quarter of FY24
Source: IANS
10/08/2023 2:11:41 PM
Perspective on RBI MPC announcement by Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services Below the Perspective on RBI MPC announcement by Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services   Quick impact of Incremental CRR   * Imposition of Incremental CRR (ICRR) of 10% on NDTL (for period of May 19 to July 28 ) would imply a temporary liquidity depletion of ~Rs1.15tn/Rs996bn (ex of HDFC twin merger). This assumes an effective CRR of 14.5% for the period concerned (4.5%+10%).   * However, if we assume the ICRR of 10% to i...
Perspective on RBI MPC announcement by Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services
Perspective on RBI MPC announcement by Ms. Madhavi Arora, Lead Economist, Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
10/08/2023 12:58:42 PM
The global sell-off was driven by the Fitch downgrade of US credit rating by Mr. Jaykrishna Gandhi, Emkay Global Financial Services Below Perspective On Markets By Mr. Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services “Indian markets today saw the first round of correction breaking the important level of 19560 and closing below that. The global sell-off was driven by the Fitch downgrade of US credit rating. The results season thus far has been mixed with 18 nifty companies beating estimates and 15 missing. However, the mid  and small cap space has seen ea...
The global sell-off was driven by the Fitch downgrade of US credit rating by Mr. Jaykrishna Gandhi, Emkay Global Financial Services
The global sell-off was driven by the Fitch downgrade of US credit rating by Mr. Jaykrishna Gandhi, Emkay Global Financial Services
Source: Emkay Global Financial Services
2/08/2023 5:48:03 PM
Buy Ujjivan Small Finance Bank Ltd For Target Rs. 58 - Emkay Global Financial Services Ltd Ujjivan SFB has once again reported a strong earnings beat, with PAT at Rs3.2bn/RoA at 3.8%, mainly backed by better margins, fees/recovery from woffs and continued lower provisions. Bank clocked 30% YoY/5% QoQ AUM growth, though the SME book declined amid some signs of stress. Deposit growth remained strong at 45% YoY/4% QoQ, but CASA slipped to a low of 25%. However, better loan yields led to 10bps QoQ expansion in NIM. Going forward, Bank expects growth as well as margin to remain strong, ...
Buy Ujjivan Small Finance Bank Ltd For Target Rs. 58 - Emkay Global Financial Services Ltd
Buy Ujjivan Small Finance Bank Ltd For Target Rs. 58 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
1/08/2023 11:38:50 AM
Buy ITC Ltd For Target Rs. 525 - Emkay Global Financial Services Ltd Our positive stance on ITC relies on strong execution across business segments for which we remain upbeat. We maintain BUY on ITC with Jun-24E SoTP-based TP of Rs525/sh. Mgmt has been addressing concerns on capital allocation, where Hotels business unlocking is part of the arrangement. While value unlocking owing to demerger of the Hotels business is unlikely to be material, we see improvement in ITC’s returns profile, post demerger of hotel operations. Key clarifications with regard to...
Buy ITC Ltd For Target Rs. 525 - Emkay Global Financial Services Ltd
Buy ITC Ltd For Target Rs. 525 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
1/08/2023 11:11:48 AM
Buy Indian Bank Ltd For Target Rs. 425 - Emkay Global Financial Services Ltd Indian Bank reported a healthy beat on PAT at Rs17bn/1% RoA (Emkay: Rs16bn), mainly on steady albeit healthy margins (3.56%) and contained opex, and partly offset by normalized tax rate, as the benefit of accumulated losses wanes. Credit growth was moderate at 14% YoY/2% QoQ, as Bank retains focus on ‘profitable’ growth instead of chasing just growth. Bank expects margin to remain stable & healthy, supported by residual MCLR repricing. Per its strategy, Bank continues to scale...
Buy Indian Bank Ltd For Target Rs. 425 - Emkay Global Financial Services Ltd
Buy Indian Bank Ltd For Target Rs. 425 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
1/08/2023 10:52:26 AM
Buy Birlasoft Ltd For Target Rs. 452- Emkay Global Financial Services Strong revenue growth: Birlasoft reported strong revenue growth wherein rupee revenue was up by 3% QoQ and 9.4% YoY to Rs 1,263cr while revenue in dollar stood at USD 153.6Mn, higher by 3% QoQ and 3.4% YoY. Revenue in constant currency grew by 2.7% QoQ and 3.6% YoY. Amongst geographies, Europe drove the growth followed by US markets (both ~94-95% of revenue) while Life science and BFSI posted decent growth in verticals. This quarter the company provided details of services offerings wherein i...
Buy Birlasoft Ltd For Target Rs. 452- Emkay Global Financial Services
Buy Birlasoft Ltd For Target Rs. 452- Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
31/07/2023 3:04:24 PM
Hold Amber Enterprises Ltd For Target Rs. : 2,300 - Emkay Global Financial Services Ltd Amber’s 1QFY24 numbers missed our topline estimates but was above our PAT estimates due to strong operating performance. Amber’s strategy of focusing on higher-margin components vs. RACs seems to have driven this beat on EBITDAM. Amber is witnessing increased traction in its mobility division, with a large order win expected to further boost the order book, as it looks to double this business in 2-3 years. While unseasonal rains is expected to cap the industry’s volume growt...
Hold Amber Enterprises Ltd For Target Rs. : 2,300 - Emkay Global Financial Services Ltd
Hold Amber Enterprises Ltd For Target Rs. : 2,300 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
31/07/2023 2:53:49 PM
Sell Colgate Palmolive Ltd For Target Rs. 1,720 - Emkay Global Financial Services Ltd Our SELL rating on Colgate was a factor of weak topline delivery and restricted diversification in the business. Q1FY24 results surprised positively, with 11% topline growth — toothpaste revenue grew in healthy double digits. Earnings growth was a robust 35% YoY, aided by EBITDA margin expansion of 440bps YoY (driven by the 200bps expansion in gross margin and the 175bps easing in other operating overheads). We attribute the strong Q1 show to steady pricehikes (despite benign RM), relau...
Sell Colgate Palmolive Ltd For Target Rs. 1,720 - Emkay Global Financial Services Ltd
Sell Colgate Palmolive Ltd For Target Rs. 1,720 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
31/07/2023 2:45:41 PM
Buy Tech Mahindra Ltd For Target Rs.1,200 - Emkay Global TechM’s revenue slumped 4% QoQ (4.2% CC) to USD1.6bn, missing our estimates. EBITM declined by 440bps QoQ to 6.8%, well below our estimate even after adjusting for one-offs. The sharp decline in CME (-9.4% QoQ), owing to cut in discretionary spending and closure of network services projects, largely explains the revenue miss. Deal wins remain weak, and stand at USD359mn (TTM deal-intake down ~25% YoY). Mgmt attributed the weak performance to cut in discretionary spend/delay in decision ...
Buy Tech Mahindra Ltd For Target Rs.1,200 - Emkay Global
Buy Tech Mahindra Ltd For Target Rs.1,200 - Emkay Global
Source: Emkay Global Financial Services
30/07/2023 12:12:16 PM
Buy Axis Bank Ltd For Target Rs.1,260- Emkay Global Financial Services Despite lower margins yet again and rigidly-higher opex (incl. Citi integration cost of Rs3.9bn), Axis Bank is back in the black, given in-line PAT at Rs58bn/1.8% RoA, mainly on higher treasury gains. Similar to 4Q, Bank logged better than expected credit growth, at ~18% YoY (incl. Citi)/22% YoY (ex-Citi in 1QFY23), but margin slipped again (12bps QoQ), with cumulative contraction of 16bps to 4.1% in the past 2Qs. Fresh slippages were higher at Rs40bn/2.2% of loans, but GNPA ratio improved Qo...
Buy Axis Bank Ltd For Target Rs.1,260- Emkay Global Financial Services
Buy Axis Bank Ltd For Target Rs.1,260- Emkay Global Financial Services
Source: Emkay Global Financial Services
30/07/2023 12:07:55 PM
Buy Ramkrishna Forgings Ltd For Target Rs. 555 - Emkay Global Financial Services Ltd Ramkrishna Forgings (RKFL) reported a strong Q1FY24 performance, with revenue up 28% YoY (despite Q1 being seasonally weak; flat QoQ) and 25% YoY rise in volumes on stronger exports. RKFL is undertaking several initiatives (refer to our report) to structurally boost its growth prospects, thus moving into higher value-add assemblies and diversifying by exploring complementary products & assemblies, apart from future-proofing itself in the EV-shift together with high focus on BS deleveragin...
Buy Ramkrishna Forgings Ltd For Target Rs. 555 - Emkay Global Financial Services Ltd
Buy Ramkrishna Forgings Ltd For Target Rs. 555 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
28/07/2023 2:31:11 PM
Buy RBL Bank Ltd For The Target Price Rs. 275 - Emkay Global Financial Services Ltd RBL Bank continued to report strong profitability, up 43% YoY/6% QoQ to Rs2.9bn/1% RoA on account of strong credit growth, lower opex and contained provisions. NIM was down 17bps QoQ to 4.8% from its peak of 5% due to higher CoF, but the bank expects better portfolio mix towards retail to keep margins healthy. This coupled with improving fees (including payments/cards) and contained opex should lead to 30% core PPoP growth over FY23-26E. Despite moderation in NPA , the bank has guided for ele...
Buy RBL Bank Ltd For The Target Price Rs. 275 - Emkay Global Financial Services Ltd
Buy RBL Bank Ltd For The Target Price Rs. 275 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
28/07/2023 2:06:13 PM
M&M group stocks under pressure after investment in RBL Bank, Tech Mahindra`s weak earnings miss  Stocks of the Mahindra & Mahindra (M&M) group have been under selling pressure and were the top Sensex losers on Thursday. M&M slumped 6.5 per cent after the company announced equity stake buy in RBL Bank. On Wednesday, it made an announcement of acquiring a 3.53 per cent stake in RBL Bank as an investment at a cost of Rs 417 crore. “We may consider further investment subject to pricing, regulatory approvals and required procedures. However, in no circumstance...
M&M group stocks under pressure after investment in RBL Bank, Tech Mahindra`s weak earnings miss
M&M group stocks under pressure after investment in RBL Bank, Tech Mahindra`s weak earnings miss
Source: IANS
27/07/2023 12:43:31 PM
Perspective on markets by Mr. Jaykrishna Gandhi, Emkay Global Financial Services Below Perspective On Markets By Mr. Jaykrishna Gandhi, Head - Business Development, Institutional Equities, Emkay Global Financial Services “Indian markets remained flat for the week and continued their consolidation (sector rotation being the only theme) at current levels and under-performing regional markets. Infosys drove the IT space lower as it materially reduced guidance and put a cap on the overall rally in IT. US markets continued to rally going into the Fed meeting tonight, ...
Perspective on markets by Mr. Jaykrishna Gandhi, Emkay Global Financial Services
Perspective on markets by Mr. Jaykrishna Gandhi, Emkay Global Financial Services
Source: Emkay Global Financial Services
26/07/2023 5:15:12 PM
Buy SBI Life Insurance Ltd For Target Rs. 1,560- Emkay Global SBI Life reported a decent set of numbers in Q1FY24, with VNB of Rs8.72bn (-1% YoY; Emkay: Rs8.6bn) coming in line with our estimate, driven by slight miss on APE at Rs30.3bn (+4% YoY; Emkay: Rs30.9bn) and a minor beat on VNB margin at 28.8% (-1.4ppts YoY; Emkay: 28%). Operating assumption changes (FY23 vs FY22) partly offset the margin decline on account of the 9ppt YoY sharp decline in non-par savings in the product mix and the YoY decline in interest rates. Overall, Company continues to ke...
Buy SBI Life Insurance Ltd For Target Rs. 1,560- Emkay Global
Buy SBI Life Insurance Ltd For Target Rs. 1,560- Emkay Global
Source: Emkay Global Financial Services
26/07/2023 2:36:32 PM
Hold Bajaj Auto Ltd For Target Rs. 4,760 - Emkay Global Financial Services BJAUT reported a slight miss on margins in Q1 (down ~30bps QoQ to 19% vs our estimate of 19.4%), owing to normalizing mix; PAT was largely in-line. On the demand front, while exports are expected to improve sequentially, the pace of uptick is seen to be gradual. We believe the recent Triumph launch, while positive, will not move the needle much for BJAUT, even as the weakening domestic ICE-2W franchise and disruptive risk to the 3W space (from EVs) remain structural concerns. This compels us ...
Hold Bajaj Auto Ltd For Target Rs. 4,760 - Emkay Global Financial Services
Hold Bajaj Auto Ltd For Target Rs. 4,760 - Emkay Global Financial Services
Source: Emkay Global Financial Services
26/07/2023 2:31:26 PM
G-3 Monetary Policy by Emkay Global Financial Services Ltd Three major G3 central banks (CBs) will likely signal three directions this week. Although broad global cues are similar – of waning growth and inflation momentum – varying domestic backdrops and imperatives will push the Fed, ECB and BoJ to sound different from one another. FX markets, in particular, are already taking cues from these diverging paths of CBs. Although we respect the price action, the remainder of the global picture falls short of conditions historically associated...
G-3 Monetary Policy by Emkay Global Financial Services Ltd
G-3 Monetary Policy by Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
26/07/2023 9:12:27 AM
Hold Dalmia Bharat Ltd For Target Rs 2,125 - Emkay Global Financial Services Ltd Dalmia Bharat’s Q1FY24 EBITDA increased 4% YoY/decreased 14% QoQ to Rs6.1bn, coming in 7-8% below our/Consensus estimates owing to lower realization and higher cost. Accordingly, EBITDA/ton declined 7-8% YoY and QoQ to Rs872 (Emkay: Rs950). With delay in receipt of regulatory approvals, we factor-in the acquisition of JPA’s various cement assets, from FY25. Company has recapitulated its capacity growth target to 47mt/75mt/110- 130mt by FY24/FY27/FY31, respectively (from 41.7mt cur...
Hold Dalmia Bharat Ltd For Target Rs 2,125 - Emkay Global Financial Services Ltd
Hold Dalmia Bharat Ltd For Target Rs 2,125 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
25/07/2023 3:35:44 PM
Buy UltraTech Cement For Target Rs 9,250 - Emkay Global Financial Services Ltd UltraTech Cement’s consolidated EBITDA declined ~2% YoY/8% QoQ to Rs30.5bn in Q1FY24, coming in 8% below our estimates owing to higher than expected costs. Blended EBITDA/ton fell 18% YoY/3% QoQ to Rs1,018 (Emkay: Rs1,100). UltraTech is in the process of adding 4mt capacity in FY24 through debottlenecking and another 22.6mt capacity (under phase-II) by FY25/26 (vs current capacity of 131mt). Management expects cement prices to improve post the monsoons and input cost deflation to kick-i...
Buy UltraTech Cement For Target Rs 9,250 - Emkay Global Financial Services Ltd
Buy UltraTech Cement For Target Rs 9,250 - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
25/07/2023 2:39:45 PM