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Buy G R Infraprojects Ltd For Target Rs. 1,703 - Yes Securities GR Infraprojects (GRInfra) has grown its orderbook sharply in the last few quarters. Orderbook was below 2x in the last few years leading to sub-optimal growth. With robust order inflow worth INR 150bn in FY23 and INR 18bn in Q1FY24, orderbook stands healthy at INR 268bn as of Jun’23. The new order inflow caters to diverse segments like roads, ropeways, tunnelling works, logistics park, etc. Given the strong order inflow and book-to-bill ratio of 3.4x, we believe execution may pick up a...
Buy G R Infraprojects Ltd For Target Rs. 1,703 - Yes Securities
Buy G R Infraprojects Ltd For Target Rs. 1,703 - Yes Securities
Source: ICICI Securities Ltd
9/09/2023 11:45:00 AM
Buy ABB India Ltd For Target Rs. 4,920 - ICICI Securities Ltd ABB India (ABB) has reported another (after having reported bumper Q1CY23) superlative set of earnings in Q2CY23 with 22% YoY growth in revenue, 75% YoY growth in EBITDA led by 420bps YoY expansion in margin and 101% YoY increase in profit. Order inflow in Q2 grew 10% YoY – a muted number but came on a very high base (base quarter grew 64% YoY). During Q2, it also expanded its motor drives portfolio in India with new manufacturing lines. Note ABB had shed its high voltage portfolio in 2...
Buy ABB India Ltd For Target Rs. 4,920 - ICICI Securities Ltd
Buy ABB India Ltd For Target Rs. 4,920 - ICICI Securities Ltd
Source: ICICI Securities Ltd
9/09/2023 11:35:27 AM
Buy Larsen & Toubro Ltd For Target Rs.3,141 - ICICI Securities A large win in the Middle East, likely to beat its order inflow guidance for FY24 As per media reports (Link), L&T is the preferred contractor for USD 3.9bn order for Jafurah Unconventional Gas Field, Saudi Arabia (Source: MEED). Also, till date in FY24, L&T has announced orders worth over INR 750bn. With this significant accretion in orders, L&T could report >20% growth in order inflow in Q2 (excl. services), in our view. Note L&T has highlighted that order prospects ha...
Buy Larsen & Toubro Ltd For Target Rs.3,141 - ICICI Securities
Buy Larsen & Toubro Ltd For Target Rs.3,141 - ICICI Securities
Source: ICICI Securities Ltd
9/09/2023 11:09:52 AM
Metals Sector Update : Prices rise across products By ICICI Securities HRC prices in traders’ market rose by INR 900/te while rebar prices in primary market rose by INR 2,500/te in the week ended Sep 06, ’23, mirroring the hike taken by major steel producers. Despite coking coal price rising 2% WoW, spot spread inched up on a positive price-cost spread. In China, both export and domestic prices were up following the expectations from policy measures to boost demand. Additionally, market participants expect production cuts to be implemented in order t...
Metals Sector Update : Prices rise across products By ICICI Securities
Metals Sector Update : Prices rise across products By ICICI Securities
Source: ICICI Securities Ltd
9/09/2023 10:59:04 AM
Metals Sector Update : Steel Prices rise across products By ICICI Securities HRC prices in traders’ market rose by INR 900/te while rebar prices in primary market rose by INR 2,500/te in the week ended Sep 06, ’23, mirroring the hike taken by major steel producers. Despite coking coal price rising 2% WoW, spot spread inched up on a positive price-cost spread. In China, both export and domestic prices were up following the expectations from policy measures to boost demand. Additionally, market participants expect production cuts to be implemented in order t...
Metals Sector Update : Steel Prices rise across products By ICICI Securities
Metals Sector Update : Steel Prices rise across products By ICICI Securities
Source: ICICI Securities
8/09/2023 2:55:52 PM
Buy Larsen & Toubro Ltd For Target Rs.3,141 - ICICI Securities A large win in the Middle East, likely to beat its order inflow guidance for FY24 As per media reports (Link), L&T is the preferred contractor for USD 3.9bn order for Jafurah Unconventional Gas Field, Saudi Arabia (Source: MEED). Also, till date in FY24, L&T has announced orders worth over INR 750bn. With this significant accretion in orders, L&T could report >20% growth in order inflow in Q2 (excl. services), in our view. Note L&T has highlighted that order prospects ha...
Buy Larsen & Toubro Ltd For Target Rs.3,141 - ICICI Securities
Buy Larsen & Toubro Ltd For Target Rs.3,141 - ICICI Securities
Source: ICICI Securities
8/09/2023 2:47:20 PM
Add Phoenix Mills Ltd For Target Rs.1,928 - ICICI Securities Pressing the growth pedal The Phoenix Mills (PHNX) has clocked a CAGR of 14% in consumption and 13% in retail rental across its mall portfolio over the last decade (FY13-23). Further, LTL consumption base for FY23 across the company’s operational malls was 19% higher than FY20 levels. With the company’s Wakad, Pune having opened in Sep’23 and Hebbal, Bengaluru also expected to open shortly and Indore/Ahmedabad malls having opened in FY23, the focus now shifts to growth fr...
Add Phoenix Mills Ltd For Target Rs.1,928 - ICICI Securities
Add Phoenix Mills Ltd For Target Rs.1,928 - ICICI Securities
Source: ICICI Securities Ltd
7/09/2023 3:40:23 PM
Defence Sector Update :Digest #5/24 Aspiring for more By ICICI Securities Aug’23 was an eventful month for the defence sector. Key points: 1) An order worth INR 190bn for 5 fleet support ships was awarded to Hindustan Shipyard; 2) Acceptance of Necessity (AoN) worth INR 78bn was accorded for various platforms; 3) progress is being made on development and acquisition of fighter aircraft along with a visit by Air Chief Marshal to HAL; 4) successful firing of Astra BVR missile from Tejas; and 5) progress on P75I and P76 submarine programmes; and 6) guided Pinaka...
Defence Sector Update :Digest #5/24 Aspiring for more By ICICI Securities
Defence Sector Update :Digest #5/24 Aspiring for more By ICICI Securities
Source: ICICI Securities Ltd
6/09/2023 2:42:59 PM
Hold Gujarat Gas Ltd For Target Rs.435 - ICICI Securities Stronger propane prices drive another Morbi price hike by Gujarat Gas Gujarat Gas (GUJGA) has hiked industrial gas prices at Morbi by INR 2.5/scm, the second hike in Q2, post a INR 2/scm hike taken in Aug’23. The decision has been driven by an improvement in propane prices in last 2-3 months. Prices have steadily improved since then, with Aug’23 prices at USD 470/t and Sep’23 prices declared at USD 550/t – coupled with an increase in import duties to ~18% from <6...
Hold Gujarat Gas Ltd For Target Rs.435 - ICICI Securities
Hold Gujarat Gas Ltd For Target Rs.435 - ICICI Securities
Source: ICICI Securities Ltd
6/09/2023 2:36:22 PM
Hold Astral Ltd For Target Rs 1,909 - ICICI Securities Demand and margin trend remains favourable We interacted with the management of Astral Ltd (Astral) and following are the key takeaways: a) demand trend in pipe market remains healthy in Q2FY24-TD with 20%+ volume growth YoY (partly aided by low base) driven largely by the plumbing segment; b) management indicated operating margins to improve QoQ in Q2FY24 for both pipes (due to better product mix and no inventory losses likely to recur in Q2 given that PVC resin prices have been on an upt...
Hold Astral Ltd For Target Rs 1,909 - ICICI Securities
Hold Astral Ltd For Target Rs 1,909 - ICICI Securities
Source: ICICI Securities Ltd
6/09/2023 2:27:54 PM
Buy Five Star Business Finance ltd Target Rs.860 - ICICI Securities Reaching the unreached; niche position in INR 22trn MSME lending Five Star Business Finance’s FY23 annual report provides an insight on how it is progressing towards its vision of “reaching the unreached through suitable credit solution” and capturing the INR 22trn MSME lending opportunity. AUM growth reviving to 37% in FY23 vs 14% CAGR between FY20-22 (covid impact) is a testimony to its agility and business resiliency. In a high human touch model, adherence to standard-...
Buy Five Star Business Finance ltd Target Rs.860 - ICICI Securities
Buy Five Star Business Finance ltd Target Rs.860 - ICICI Securities
Source: ICICI Securities Ltd
6/09/2023 2:14:15 PM
Stock Picks : Tata Consultancy Services Ltd And Aurobindo Pharma Ltd By ICICI Direct Tata Consultancy Services Ltd Buy Tata Consultancy Services Ltd @3419-3423; Target 3457.00; Stop Loss 3403.00   Aurobindo Pharma Ltd Buy Aurobindo Pharma Ltd @ 848-850; Target 859.80; Stop Loss 843.80   To Read Complete Report & Disclaimer Click Here   Please refer disclaimer at https://secure.icicidirect.com/Content/StaticData/Disclaimer.html SEBI Registration number INZ000183631   Above views are of the author and...
Stock Picks : Tata Consultancy Services Ltd And Aurobindo Pharma Ltd By ICICI Direct
Stock Picks : Tata Consultancy Services Ltd And Aurobindo Pharma Ltd By ICICI Direct
Source: ICICI Direct
6/09/2023 10:56:31 AM
Rupee appreciated on Friday amid strong macro economic data and gains in domestic equities - ICICI Securities Currency Outlook Rupee Outlook * Rupee appreciated on Friday amid strong macro economic data and gains in domestic equities. Meanwhile, investors remained cautious ahead of job report from US to get more cues on interest rate outlook * Rupee is likely to depreciate today amid strong dollar and rise in US treasury yields. Dollar gained strength following mixed jobs report for August and better than expected ISM manufacturing index. Additionally, hawkish comments from Cleveland Fed Pre...
Rupee appreciated on Friday amid strong macro economic data and gains in domestic equities - ICICI Securities
Rupee appreciated on Friday amid strong macro economic data and gains in domestic equities - ICICI Securities
Source: ICICI Securities Ltd
4/09/2023 10:24:09 AM
Buy Manappuram Finance Ltd For Target Rs.172 - ICICI Securities Well-entrenched franchise, attractive valuations Yield stabilisation in gold loans and turnaround in the MFI business are noteworthy developments in Manappuram Finance (Manappuram). Company has guided for 10-12% gold AUM growth with 21-22% yields while its growth guidance for MFI segment is >30% for FY24. However, rising cost of funds in both the businesses and overall elevated competition in gold loans remain headwinds. Strategically, the company is focussing on diversification (aiming...
Buy Manappuram Finance Ltd For Target Rs.172 - ICICI Securities
Buy Manappuram Finance Ltd For Target Rs.172 - ICICI Securities
Source: ICICI Securities
3/09/2023 9:46:48 AM
NBFC Sector Update : State elections unlikely to derail collection efficiency trend By ICICI Securities State elections unlikely to derail collection efficiency trend Collection efficiency across MFIs under our coverage remained robust during FY23, sustained in Q1FY24 and we believe it would remain robust going ahead despite 4 major state elections – Chhattisgarh & Madhya Pradesh (MP) in Nov’23, and Rajasthan & Telangana – in Dec’23. Cumulative industry AUM exposure in these four states was at 12% of Mar’23 AUM with MP accounting for the highest share at...
NBFC Sector Update : State elections unlikely to derail collection efficiency trend By ICICI Securities
NBFC Sector Update : State elections unlikely to derail collection efficiency trend By ICICI Securities
Source: ICICI Securities
3/09/2023 9:36:50 AM
Wood Sector Update : Near-term demand outlook tepid, medium-term healthy By ICICI Securities Near-term demand outlook tepid, medium-term healthy Woodpanel companies under our coverage reported a tepid Q1FY24 and we expect near-term headwinds to persist due to rising wood cost. We however remain optimistic about demand in the medium term due to continued uptick in the real estate sector and increased acceptance of readymade furniture. MDF imports continue to be elevated with an average monthly run-rate of ~23,290te in Q1FY24 (close to historical highs of FY18). This is expected to ...
Wood Sector Update : Near-term demand outlook tepid, medium-term healthy By ICICI Securities
Wood Sector Update : Near-term demand outlook tepid, medium-term healthy By ICICI Securities
Source: ICICI Securities
3/09/2023 9:22:15 AM
Logistics Sector Update : Q1FY24 review: Yet again a subdued quarter though earnings are likely to have bottomed out By ICICI Securities Q1FY24 review: Yet again a subdued quarter though earnings are likely to have bottomed out Q1FY24 marked the third successive quarter of subdued earnings for the logistics companies under our coverage. Key points: 1) almost all the covered companies performed below our expectations; 2) shipments/volumes increased across the board, but fell short of our expectations; 3) street has cut its EBITDA estimates and target prices for all the covered companies except Gateway Distriparks (GDL) and M...
Logistics Sector Update : Q1FY24 review: Yet again a subdued quarter though earnings are likely to have bottomed out By ICICI Securities
Logistics Sector Update : Q1FY24 review: Yet again a subdued quarter though earnings are likely to have bottomed out By ICICI Securities
Source: ICICI Securities
3/09/2023 9:15:45 AM
Banking Sector Update : Jul`23 sectoral credit deployment: Adjusted non-food credit growth moderates to 14.8% YoY - ICICI Securities Jul’23 sectoral credit deployment: Adjusted non-food credit growth moderates to 14.8% YoY Banks’ sectoral credit deployment data for Jul’23 (as of 28 Jul’23) suggests non-food credit stands at INR 147.8trn, up 19.8% YoY on reported basis. However, the reported July’23 data includes the impact of merger of a non-bank with a bank, hence is not comparable. Adjusted for the merger, we calculate non-food credit systemic growth stands at 14.8% YoY and -1.4% MoM. The...
Banking Sector Update : Jul`23 sectoral credit deployment: Adjusted non-food credit growth moderates to 14.8% YoY - ICICI Securities
Banking Sector Update : Jul`23 sectoral credit deployment: Adjusted non-food credit growth moderates to 14.8% YoY - ICICI Securities
Source: ICICI Securities Ltd
2/09/2023 12:57:41 PM
Buy Gokaldas Exports Ltd For Target Rs. 855 - ICICI Securities Ltd ATRACO acquisition likely to boost revenues Gokaldas Exports (GEXP) has signed a definitive agreement with the shareholders of UAE-based apparel maker, ATRACO, to acquire 100% of the latter’s equity for a total consideration of up to USD 55mn funded through debt (73%) and internal accruals (27%). ATRACO exports 95% of its production to the US (primary market for GEXP) and has nearly mutually exclusive customer base with GEXP. Hence, we believe this deal provides GEXP an opportunity t...
Buy Gokaldas Exports Ltd For Target Rs. 855 - ICICI Securities Ltd
Buy Gokaldas Exports Ltd For Target Rs. 855 - ICICI Securities Ltd
Source: ICICI Securities Ltd
2/09/2023 12:43:47 PM
Buy Chalet Hotels Ltd Target Rs. 652 - ICICI Securities Ltd Play on asset ownership in an industry upcycle We believe that Chalet Hotels (Chalet) is well poised to benefit from the strength in demand, especially for premium and luxury hotels in India’s Tier cities. While industry peers are focusing on the asset light expansion route, Chalet has chosen to grow its hotel room and office rental portfolio over FY23-27E through the ownership route (mix of existing project expansion and long-term leases). We believe that this is the right strategy ...
Buy Chalet Hotels Ltd Target Rs. 652 - ICICI Securities Ltd
Buy Chalet Hotels Ltd Target Rs. 652 - ICICI Securities Ltd
Source: ICICI Securities Ltd
2/09/2023 12:37:21 PM
Sell Mphasis Ltd For Target Rs.1,727 - ICICI Securities Ltd Demand headwinds in BFS (largest vertical) persist, but the same is not reflected in valuations; reiterate SELL We attended Mphasis analyst meet wherein the company outlined its future growth strategies: 1) focus on expanding non-BFS verticals, 2) continuing strategy of proactive large deal wins, and 3) increasing the number of clients with high revenue potential (USD 100mn+ annually). However, our near-term view on the company has not changed, hence we maintain SELL. Our concerns are: 1) ...
Sell Mphasis Ltd For Target Rs.1,727 - ICICI Securities Ltd
Sell Mphasis Ltd For Target Rs.1,727 - ICICI Securities Ltd
Source: ICICI Securities Ltd
2/09/2023 12:16:35 PM
Jupiter Life Line Hospitals Limited`s Initial Public Offering to open on Wednesday, September 6, 2023, sets price band at 695 to 735 per Equity Share Jupiter Life Line Hospitals Limited (the “Company”) is among the key multi-specialty tertiary and quaternary healthcare providers in the Mumbai Metropolitan Area (MMR) and western region of India with a total bed capacity of 1,194 hospital beds across three hospitals as of March 31, 2023 (Source: Report titled “An assessment of the healthcare delivery market in India with a focus on West India” (the “CRISIL Report”) dated August 2023 and prep...
Jupiter Life Line Hospitals Limited`s Initial Public Offering to open on Wednesday, September 6, 2023, sets price band at 695 to 735 per Equity Share
Jupiter Life Line Hospitals Limited`s Initial Public Offering to open on Wednesday, September 6, 2023, sets price band at 695 to 735 per Equity Share
Source: PR Agency
1/09/2023 4:29:35 PM
Add PB Fintech Ltd For Target Rs.818 - ICICI Securities Better claims experience: A business moat warranting high multiples Better claims experience serves as a strong business moat for PB Fintech (PB). This, along with the merits of cumulative renewal business and developing a track record of fixed-cost salience, should help sustain high valuation multiples, while increasing monetisation of the channel through the complementary Feet on Street initiative should help earnings growth. We maintain ADD on PB Fintech. Our DCF-based target price stan...
Add PB Fintech Ltd For Target Rs.818 - ICICI Securities
Add PB Fintech Ltd For Target Rs.818 - ICICI Securities
Source: ICICI Securities
1/09/2023 2:39:00 PM
Buy 3M India Ltd For Target Rs. 35,200 - ICICI Securities FY23 annual report analysis: Strong growth in end-user industries leading to healthy EVA creation We remain enthused about 3M India post analysing its FY23 annual report. Key highlights: (1) Most end-user industries – e.g. automotive, infrastructure and manufacturing – have reported revival, which augurs well for 3M India. (2) Company has passed on additional costs with a lag and, with relatively stable exchange rates, it improved its EBITDA margin to 15.3% in FY23 from 11.7% i...
Buy 3M India Ltd For Target Rs. 35,200 - ICICI Securities
Buy 3M India Ltd For Target Rs. 35,200 - ICICI Securities
Source: ICICI Securities
1/09/2023 2:32:54 PM
Automobile Sector Update: Inventory build-up in PVs initiated much before festive season By ICICI Securities Inventory build-up in PVs initiated much before festive season As per our channel checks and analysis of wholesale vs retail data of vehicles sold in Apr-Jul’23, inventory levels for PVs have increased vs CVs/2Ws managing it far better. Cumulative inventory addition for key PV players like MSIL/MM in Apr-Jul’23 is now at 84% of Jul’23 retails, implying limited scope for further inventory addition in Aug-Sep’23. Our channel checks indicate inventory days have increas...
Automobile Sector Update: Inventory build-up in PVs initiated much before festive season By ICICI Securities
Automobile Sector Update: Inventory build-up in PVs initiated much before festive season By ICICI Securities
Source: ICICI Securities
1/09/2023 2:27:47 PM
Buy Crompton Greaves Consumer Electricals Ltd For Target Rs.350 - ICICI Securities Ltd Strategy 2.0 – To focus on absolute profit growth instead of margins Crompton has done key fundamental changes to its business under strategy 2.0 which are likely to be DCF accretive in our view. (1) it plans to divide the business in multiple SBUs which will likely drive the accountability and improve efficiencies, (2) there will be separate on-ground sales teams for multiple product(s). It is likely to result in stronger connect with the trade and higher throughput-per-store, (3) C...
Buy Crompton Greaves Consumer Electricals Ltd For Target Rs.350 - ICICI Securities Ltd
Buy Crompton Greaves Consumer Electricals Ltd For Target Rs.350 - ICICI Securities Ltd
Source: ICICI Securities Ltd
30/08/2023 12:57:27 PM
Add Balkrishna Industries Ltd For Target Rs.2,577 - ICICI Securities Weakest month of OHT exports since destocking started a year back Weakness in OHT exports from India intensified in Jun’23 and touched their lowest in past 2 years, down 30% YoY to USD 122mn. This was due to continued weak demand, impact of cyclone in Gujarat and deflationary pricing. A week’s production loss from the leader with an average market share of 50%, implies overall exports got hit by ~12.5% -- adjusted for which, it was largely in line with past 6-month average expo...
Add Balkrishna Industries Ltd For Target Rs.2,577 - ICICI Securities
Add Balkrishna Industries Ltd For Target Rs.2,577 - ICICI Securities
Source: ICICI Securities Ltd
30/08/2023 12:21:30 PM
Consumer Staples & Discretionary Sector Update : Beneath The Surface (BTS) By ICICI Securities This is NOT a template-based results review report (of aggregate performance, charts et al). This is a portfolio manager summary of the under-appreciated, yet very important takeaways from the 1QFY24 results season on consumption (Staples, Retail, Paints, Jewellery, Building Materials, Durables, etc.). We decipher management comments and add the layer of our views. Preferred picks: Large caps: Nestle, GCPL Midcaps: Jubilant Food, Kalyan Jewellers, Jyothy, Go Fashion, Emami Avoid: Paints Un...
Consumer Staples & Discretionary Sector Update : Beneath The Surface (BTS) By ICICI Securities
Consumer Staples & Discretionary Sector Update : Beneath The Surface (BTS) By ICICI Securities
Source: ICICI Securities Ltd
29/08/2023 3:42:26 PM
Add Orient Electric Ltd For Target Rs.245 - ICICI Securities Strong growth across segments with recovery in margins Orient faced multiple extraordinary events such as regulatory changes in fans, steep inflation and distribution restructuring in FY23. It led to 340bps EBITDA margin contraction and 40% PAT decline in FY23 YoY. We believe most of these issues are behind now and the company is likely to report strong performance across segments in FY24-25. We remain enthused by its Q1FY24 performance with strong revenue growth across segments (Fans: 16%...
Add Orient Electric Ltd For Target Rs.245 - ICICI Securities
Add Orient Electric Ltd For Target Rs.245 - ICICI Securities
Source: ICICI Securities
28/08/2023 11:58:23 AM
Buy Syrma SGS Technology For Target 580 - ICICI Securities Value accretive acquisition of Johari Digital While revenue decline in Healthcare segment has continued to impact EBITDA margins, we like two points from Syrma’s Q1FY24 result: (1) Rest of the product portfolio has continued to report industry leading growth rates, (2) order book stands at INR 35bn at end of Q1FY24 (INR 30bn at end of Q4FY23) which indicates strong order intake for the company; we are also enthused as there is strong order inflow from existing as well as new customer...
Buy Syrma SGS Technology For Target 580 - ICICI Securities
Buy Syrma SGS Technology For Target 580 - ICICI Securities
Source: ICICI Securities
28/08/2023 11:52:29 AM
Banking Sector Update : Fresh WALR movement volatile; fresh WADTDR rises after a dip in past 2 months - ICICI Securities Fresh WALR movement volatile; fresh WADTDR rises after a dip in past 2 months The monthly data on lending and deposit rates of scheduled commercial banks (SCBs) (excl. regional rural banks and small finance banks) for Jun’23 suggests: 1) SCBs’ WALR increased for the 14th consecutive month while WALR on fresh loans remains volatile, 2) O/s WADTDR continues its upward movement, 3) Fresh WADTDR also rises MoM after a drop in the past 2 consecutive months, 4) SCBs’ spread on ...
Banking Sector Update : Fresh WALR movement volatile; fresh WADTDR rises after a dip in past 2 months - ICICI Securities
Banking Sector Update : Fresh WALR movement volatile; fresh WADTDR rises after a dip in past 2 months - ICICI Securities
Source: ICICI Securities
28/08/2023 11:45:47 AM
Defence Sector Update : DAC approves proposals worth INR 78bn: Benefit for BEL and Astra By ICICI Securities Defence DAC approves proposals worth INR 78bn: Benefit for BEL and Astra The Defence Acquisition Council (DAC) has provided Acceptance of Necessity (AoN) to various proposals envisaging investment of INR 78bn across the Armed Forces (Link). These encompass all the three services and are aimed at improving survivability, manoeuvrability and combat effectiveness. Among the companies under our coverage, we believe BEL and Astra Microwave could benefit from installation of electronic warfar...
Defence Sector Update : DAC approves proposals worth INR 78bn: Benefit for BEL and Astra By ICICI Securities
Defence Sector Update : DAC approves proposals worth INR 78bn: Benefit for BEL and Astra By ICICI Securities
Source: ICICI Securities
28/08/2023 11:25:41 AM
Strategy: Manufacturing growth likely to be driven by products related to capex cycle while general consumer products may drag; electronics manufacturing is the new frontier By ICICI Securities Strategy Manufacturing growth likely to be driven by products related to capex cycle while general consumer products may drag; electronics manufacturing is the new frontier ! Manufacturing sector growth slowed down to 1.3% YoY in FY23 resulting in a drop in its share of GVA to 17.7%. Breakup of ‘manufacturing sector’s GVA’ is not yet available for FY23, but IIP constituent trends indicate that ‘consumer products’ primarily dragged down manufacturing in FY23...
Strategy: Manufacturing growth likely to be driven by products related to capex cycle while general consumer products may drag; electronics manufacturing is the new frontier By ICICI Securities
Strategy: Manufacturing growth likely to be driven by products related to capex cycle while general consumer products may drag; electronics manufacturing is the new frontier By ICICI Securities
Source: ICICI Securities
28/08/2023 10:57:17 AM
Hold Galaxy Surfactants Ltd For Target Rs. 2,475 - ICICI Securities EBITDA to grow in FY24 despite weak start in Q1 Galaxy Surfactants’ (GSL) Q1FY24 EBITDA/kg stood at INR 20.8, down 16.8% YoY. Volume growth was steady at 7.4%. India volume continues to be strong; AMET has stabilised at low levels, and RoW has been impacted by the de-stocking in North America. GSL has guided EBITDA/kg to grow at INR 20-22.75 in FY24. This will be driven by recovery in North America market which will likely drive higher sales for specialty care segment; AMET volumes s...
Hold Galaxy Surfactants Ltd For Target Rs. 2,475 - ICICI Securities
Hold Galaxy Surfactants Ltd For Target Rs. 2,475 - ICICI Securities
Source: ICICI Securities Ltd
25/08/2023 2:49:41 PM
Buy Archean Chemical Industries Ltd For Target Rs. 750 - ICICI Securities Muted bromine business; outlook improving Archean Chemical’s (ACI) Q1FY24 EBITDA dipped 16.3% YoY to INR 1.3bn due to lower volumes and prices for bromine (revenue dipped 33% YoY), while industrial salt revenue was steady, grew 3.2%. SOP shipment has also been pushed to the remaining quarters of FY24. ACI had seen early green shoots in bromine business which have been hurt by deinventorisation. It expects volume recovery immediately; however, prices may follow later. It is working wi...
Buy Archean Chemical Industries Ltd For Target Rs. 750 - ICICI Securities
Buy Archean Chemical Industries Ltd For Target Rs. 750 - ICICI Securities
Source: ICICI Securities Ltd
25/08/2023 2:38:48 PM
Add Landmark Cars Ltd For Target Rs.766 - ICICI Securities Weak Q1 performance due to lower scale; going ahead co expects volume increase Landmark Cars’ (LMC) Q1FY24 EBITDA margin at 6.4% was down 70bps QoQ (I-Sec estimate: 7.3%). Margin weakness was due to lower scale with new car volumes down 30% YoY/23% QoQ at ~3.8k, led by limited supplies from key OEMs on account of BS6 phase 2 transition. Going ahead, LMC expects volume increase from i) launch of Mercedes GLC and availability of hi-end variants, ii) new launches of Honda Elevate and Je...
Add Landmark Cars Ltd For Target Rs.766 - ICICI Securities
Add Landmark Cars Ltd For Target Rs.766 - ICICI Securities
Source: ICICI Securities Ltd
25/08/2023 2:33:17 PM
Sell Godrej Properties Ltd For Target Rs.1,318 - ICICI Securities Cash flows disappoint, debt levels a key monitorable Godrej Properties (GPL) clocked muted Q1FY24 gross sales bookings of 2.25msf worth INR22.5bn (I-sec estimate of INR24.0bn) and was down 11% YoY in value terms owing to delay in a few planned launches. While the company retains guidance for INR140bn of FY24 gross sales bookings driven by a launch pipeline of ~19msf for rest of FY24, operating cash surplus for Q1FY24 were weak at INR1.2bn. Further, with heavy land spend of INR16bn during t...
Sell Godrej Properties Ltd For Target Rs.1,318 - ICICI Securities
Sell Godrej Properties Ltd For Target Rs.1,318 - ICICI Securities
Source: ICICI Securities
23/08/2023 12:51:24 PM
Economy Sector Update : Twin Deficit Watch: Fiscal improvements slowed in Q1FY24, but CAD likely to vanish in FY24 By ICICI Securities Twin Deficit Watch: Fiscal improvements slowed in Q1FY24, but CAD likely to vanish in FY24 The current account deficit (CAD) is likely to have shrunk to USD3.5bn (0.4% of GDP) in Q1FY24, with the services trade surplus widening by USD5.32bn YoY, while the merchandise trade deficit declined by US$5bn YoY. Given that the first two quarters of a fiscal year are seasonally weaker, the sharp YoY decline in CAD (which is likely to persist into Q2FY24 as import prices of crude oil, coal, fertilis...
Economy Sector Update : Twin Deficit Watch: Fiscal improvements slowed in Q1FY24, but CAD likely to vanish in FY24 By ICICI Securities
Economy Sector Update : Twin Deficit Watch: Fiscal improvements slowed in Q1FY24, but CAD likely to vanish in FY24 By ICICI Securities
Source: ICICI Securities
23/08/2023 12:45:09 PM
Buy Sansera Engineering Ltd For Target Rs.1,133 - ICICI Securities Beat driven by exports; sustainability of profitable growth the key ahead Sansera Engineering’s (SEL) Q1FY24 EBITDAM at 17.3% was up ~180bps QoQ driven mainly by improved exports mix. Orderbook stands at INR 17bn with ~53% of it from tech-agnostic/EV/non-auto segments. SEL expects its revenue to be boosted by recovery in the 2W segment, premiumisation in 2Ws and increased content per vehicle. Company is confident of delivering ~50% growth in ex-India revenue in FY24 on benign base an...
Buy Sansera Engineering Ltd For Target Rs.1,133 - ICICI Securities
Buy Sansera Engineering Ltd For Target Rs.1,133 - ICICI Securities
Source: ICICI Securities
23/08/2023 12:39:19 PM
Add Reliance Industries Ltd For Target Rs. 2,650 - ICICI Securities FY23 Annual Report – broad-based earnings strength; FCF remains negative The FY23 annual report of Reliance Industries (RIL) throws up some interesting data points: i) Capex of INR 1.4trn had grown by a material INR 423bn in FY23, ii) resultant, net debt (including spectrum and other deferred payment liabilities) expanded sharply to INR 1.05trn, despite a material INR 428bn of increase in cash + equivalents for the year, iii) net working capital (excluding cash) increased by INR 220b...
Add Reliance Industries Ltd For Target Rs. 2,650 - ICICI Securities
Add Reliance Industries Ltd For Target Rs. 2,650 - ICICI Securities
Source: ICICI Securities
23/08/2023 11:34:26 AM
Cement Sector Update : Contrary to Street`s expectations, Q1FY24 results for cement companies,By ICICI Securities Bumpy ride ahead? Contrary to Street’s expectations, Q1FY24 results for cement companies, under our coverage, have largely disappointed with QoQ drop in EBITDA/t. Hereon, we highlight the risks of – a) likeliness of Q2FY24 EBITDA/t taking a further dip (owing to low operating leverage and cement price weakness); b) caution against assuming Q2FY24 prices as the bottom (historically, prices have dipped QoQ in Q3 and Q4 as well); c) high odds of weak demand in FY25 (given high bas...
Cement Sector Update : Contrary to Street`s expectations, Q1FY24 results for cement companies,By ICICI Securities
Cement Sector Update : Contrary to Street`s expectations, Q1FY24 results for cement companies,By ICICI Securities
Source: ICICI Securities
22/08/2023 2:14:17 PM
Reduce Bosch Ltd For Target Rs.17,599 - ICICI Securities Another quarter of subdued profitability Bosch India’s (BOS) Q1FY24 EBITDAM at 11.3% (down 160bps QoQ) missed consensus and our estimate of ~12.5%. This was because higher mix of traded goods pulled down GM and new business-related expenses increased other expenses, thus impacting overall profitability. Decline in EBITDAM by 160bps QoQ is despite delivering record-high revenue during the quarter driven by increased sales of exhaust gas system components in PVs/CVs along with higher r...
Reduce Bosch Ltd For Target Rs.17,599 - ICICI Securities
Reduce Bosch Ltd For Target Rs.17,599 - ICICI Securities
Source: ICICI Securities
22/08/2023 1:12:59 PM
Add Thyrocare Technologies Ltd For Target Rs.645 - ICICI Securities Revamping business model to restore margins Thyrocare Technologies has reported an improvement in gross margin (+270bps YoY) in Q1FY24 led by a decline in low margin partnership business. The company has revamped incentive structure offered to franchisees and this should drive a strong 12-14% volume growth in this segment. It is also trying to diversify overseas to emerging markets like Africa through its B2B model. Strengthening the existing network of franchisee and widening the test men...
Add Thyrocare Technologies Ltd For Target Rs.645 - ICICI Securities
Add Thyrocare Technologies Ltd For Target Rs.645 - ICICI Securities
Source: ICICI Securities
22/08/2023 1:06:09 PM
Telecom Sector Update : Macro-model: Expect industry revenue CAGR of 12% over FY23-FY26E By ICICI Securities Macro-model: Expect industry revenue CAGR of 12% over FY23-FY26E We have revisited our industry macro-model to realign our assumptions for next three years. We now expect industry AGR (incl. NLD) CAGR at 12% to INR 3,065bn over FY23-FY26E (vs 15.4% CAGR over FY20-FY23). Our assumption bakes-in organic growth of >6% CAGR and one tariff hike of ~10% in FY25E. Bharti’s AGR market share is likely to jump 125bps in the same period to 37.5% (vs +545bps to 36.2% in past three years), and...
Telecom Sector Update : Macro-model: Expect industry revenue CAGR of 12% over FY23-FY26E By ICICI Securities
Telecom Sector Update : Macro-model: Expect industry revenue CAGR of 12% over FY23-FY26E By ICICI Securities
Source: ICICI Securities
22/08/2023 12:49:56 PM
Add GMR Infrastructure Ltd For Target Rs.56 - ICICI Securities India flying high again Traffic at the GMR-managed Delhi and Hyderabad airports grew 18% and 24% YoY in Q1FY24. International traffic too grew sharply at the two airports – by 20%. Notably, traffic was up 14% and 12% compared to pre-covid levels. Thus, their aero and non-aero revenues grew sharply during the quarter. As a result, EBITDA surged 76% YoY. Also, GMR received a favourable order from appellate court for Delhi Airport. The order, if approved by the court, will likely lead t...
Add GMR Infrastructure Ltd For Target Rs.56 - ICICI Securities
Add GMR Infrastructure Ltd For Target Rs.56 - ICICI Securities
Source: ICICI Securities
21/08/2023 3:14:38 PM
Buy ISGEC Heavy Engineering Ltd For Target Rs.880 By ICICI Securities Manufacturing led to good quarter, maintain BUY ISGEC Heavy Engineering (ISGEC) reported a good set of numbers for Q1FY24 with standalone revenue/EBITDA/PAT up 14%/35%/112% YoY to INR 11.3bn / 766mn / 637mn respectively. Performance was aided by growth in the manufacturing business of the company. Current orderbook stands at INR 84bn, +9% YoY. Enquiry pipeline remains robust in both domestic and international product-segments. Key sectors witnessing traction are: power, sugar, steel, cemen...
Buy ISGEC Heavy Engineering Ltd For Target Rs.880 By ICICI Securities
Buy ISGEC Heavy Engineering Ltd For Target Rs.880 By ICICI Securities
Source: ICICI Securities
21/08/2023 3:08:26 PM
Add Kansai Nerolac Paints Ltd For Target Rs.360 - ICICI Securities Visible trajectory improvement under leadership of Anuj Jain; Upgrade to ADD Kansai has introduced multiple DCF-accretive initiatives under the leadership of Mr. Anuj Jain, MD such as (1) steady expansion of innovative product portfolio across sub-segments, (2) relaunched brand as ‘Nerolac Paint+ with Japanese technology’ supported by higher brand and R&D spends, (3) investments in projects, Next-gen painting services and influencer reach to connect with customers and gener...
Add Kansai Nerolac Paints Ltd For Target Rs.360 - ICICI Securities
Add Kansai Nerolac Paints Ltd For Target Rs.360 - ICICI Securities
Source: ICICI Securities
21/08/2023 12:35:23 PM
Buy Aavas Financiers Ltd For Target Rs.1,800 - ICICI Securities Muted quarter but transitory in nature; IT transformation and management stability reinforce our view that company is likely to sustain its industry-leading position in AHFC space The past six months have been challenging for Aavas Financiers (Aavas) mainly due to top-management change. Despite concerns over its growth trajectory due to the apex-level change as well as IT transformation and NIM compression, the company’s performance in Q1FY24 reinforces our view that it will remain i...
Buy Aavas Financiers Ltd For Target Rs.1,800 - ICICI Securities
Buy Aavas Financiers Ltd For Target Rs.1,800 - ICICI Securities
Source: ICICI Securities
19/08/2023 9:51:03 AM