News

Buy Saregama India Ltd For Target Rs.580 By Emkay Global Financial Services Saragama's strong headline numbers masked the weakness in music licensing revenue. Consolidated revenue grew 40.3% YoY, aided by strong growth in the video segment. Music Licensing revenue growth was soft, up 8% YoY in Q2, despite the impact of select platforms moving to a paid model now being completely factored in. EBITDA margin of 25.2% fell short of our estimate on account of higher growth in the lower-margin video segment and elevated content investments. Despite some softness, mgmt ...
Buy Saregama India Ltd For Target Rs.580 By Emkay Global Financial Services
Buy Saregama India Ltd For Target Rs.580 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-21 04:14:56 pm
Buy JK Tyre and Industries Ltd Ltd For Target Rs.650 By Emkay Global Financial Services JK Tyre (JKI) Q2 results were soft, impacted by ~16% sales decline in Mexico on weak Latin American demand and 10% currency depreciation vs INR. While domestic MHCVs have been weak in H1 (JK is among the segment leaders with 53% CV contribution in consolidated sales), outlook is improving amid expected pickup in infra/capex activity and a favorable base. Further, softening rubber prices (down over 20% from recent peak), pricing action (~3-3.5% YTD), and better mix should aid margin recovery Q...
Buy JK Tyre and Industries Ltd Ltd For Target Rs.650 By Emkay Global Financial Services
Buy JK Tyre and Industries Ltd Ltd For Target Rs.650 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-21 04:11:34 pm
Add eClerx Services Ltd For Target Rs.3,500 By Emkay Global Financial Services eClerx reported strong results in Q2FY25; revenue growth and margin were both better than our estimates. Revenue growth was led by Financial Market supported by Customer Operations, whereas Digital saw mixed performance. The strong margin performance was aided by: i) Stronger revenue growth, ii) Higher utilizations, and iii) One-offs to the tune of 85bps. New deals ACV was down 1.7% YoY, attributable to longer decision making by clients, particularly in the digital segment. While the overall ...
Add eClerx Services Ltd For Target Rs.3,500 By Emkay Global Financial Services
Add eClerx Services Ltd For Target Rs.3,500 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-21 04:06:16 pm
Buy Oil India Ltd For Target Rs.665 By Emkay Global Financial Services Oil India clocked Q2FY25 SA EBITDA of Rs21.8bn – an 11% miss, mainly due to higher provisions and lower-than-expected output. The SA PAT miss, however, was lower at 6% on higher Other Income and lower ETR. Crude production rose 5% YoY to 0.88mmt (2% miss), while gas was 3% below estimate at 0.80bcm (down 1% YoY on customer offtake issues). NRL’s EBITDA fell 46% QoQ to Rs4bn, largely on lower basic GRM of USD2.3/bbl (impacted by inventory loss of USD4.5/bbl). Management guided to o...
Buy Oil India Ltd For Target Rs.665 By Emkay Global Financial Services
Buy Oil India Ltd For Target Rs.665 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-21 04:01:29 pm
Sell Hindalco Industries Ltd For Target Rs.600 By Emkay Global Financial Services We downgrade Hindalco to SELL from Reduce following a disappointing outlook from Novelis. We had recently initiated coverage on Hindalco indicating that the stock is pricing in all the positives and a part of that optimism was around Novelis in the lead up to its IPO, which was later called off. We were not convinced with its steep EBITDA/t improvement trajectory in the medium term and in playing the Bay Minette capex cycle. With the company now withdrawing its EBITDA/t guidance over concerns...
Sell Hindalco Industries Ltd For Target Rs.600 By Emkay Global Financial Services
Sell Hindalco Industries Ltd For Target Rs.600 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-21 03:57:49 pm
Buy GAIL Ltd For Target Rs.255 By Emkay Global Financial Services We upgrade GAIL to BUY from Add due to the recent stock correction, and lower Sep-25E TP by 5% to Rs255. GAIL reported Q2FY25 SA EBITDA of Rs37.4bn, a 4% slip, mainly due to a 25% miss in gas marketing (lower margins) and 7% miss in transmission (higher opex), partly offset by better petchem and other segments. Management reiterated its transmission volume guidance of >130mmscmd in FY25 and 10-12mmscmd annual growth in FY26-27. Marketing margin guidance of >Rs45bn should also rise post-...
Buy GAIL Ltd For Target Rs.255 By Emkay Global Financial Services
Buy GAIL Ltd For Target Rs.255 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-21 03:52:29 pm
Sell Hindalco Industries Ltd For Target Rs.600 By Emkay Global Financial Services Upstream-Downstream performance divergence Hindalco delivered a strong upstream performance that is on a firm foot vs a starkly different downstream performance with bleak near-term outlook for Novelis, balancing out one another in Q2 and resulting in EBITDA beat of 9.5% at business segment level. On Novelis, there is no incremental clarity, especially on quantification in terms of impact on profitability from rise in scrap prices. It seems a part of margin contraction is structural. Near ...
Sell Hindalco Industries Ltd For Target Rs.600 By Emkay Global Financial Services
Sell Hindalco Industries Ltd For Target Rs.600 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-19 12:52:33 pm
Reduce Hyundai Motor India Ltd For Target Rs.1,750 By Emkay Global Financial Services Hyundai Motor India (HMIL) logged a soft quarter, with revenue/EBITDA down 8%/10% YoY, respectively; EBITDA margin declined by 70bps QoQ to 12.8% on lower volumes and higher discounts. HMIL has guided to a low-single digit PV industry growth on a high base and a challenging demand scenario. HMIL has established a strong franchise in India; but lack of major launches (key growth driver historically in PVs) over the next 9-12M, muted ~5% capacity CAGR, higher royalty, and lower treasury income ...
Reduce Hyundai Motor India Ltd For Target Rs.1,750 By Emkay Global Financial Services
Reduce Hyundai Motor India Ltd For Target Rs.1,750 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-19 12:48:05 pm
Reduce Uno Minda Ltd For Target Rs.950 By Emkay Global Financial Services Uno Minda posted healthy Q2 results with outperformance vs MSIL accelerating further and logging a ~6% beat on consolidated EBITDA (margin up by 68bps QoQ to 11.4%). Uno expects healthy industry growth in the medium term, with sustained outperformance and retained margin guidance (toward the upper range of 10.5-11.5%). We expect further support for content per vehicle from order wins/execution and market share gains, though margin improvement is likely to be gradual amid ongoing capex. Our es...
Reduce Uno Minda Ltd For Target Rs.950 By Emkay Global Financial Services
Reduce Uno Minda Ltd For Target Rs.950 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-19 12:43:07 pm
Add Samvardhana Motherson International Ltd For Target Rs.190 By Emkay Global Financial Services SAMIL reported a soft Q2, with ~3%/14% EBITDA miss vs Consensus; margins declined by ~80bps QoQ to 8.6%. While the company continued to outperform global auto production on organic basis, outlook here is weakening/remains challenged across major markets. We believe premiumization-led growth in content per vehicle would continue for SAMIL, accompanied by a) better visibility in non-Autos (targets 25% sales contribution), particularly led by Consumer Electronics (SAMIL is undertaking Rs26bn cap...
Add Samvardhana Motherson International Ltd For Target Rs.190 By Emkay Global Financial Services
Add Samvardhana Motherson International Ltd For Target Rs.190 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-19 12:38:54 pm
Reduce Britannia Industries Ltd For Target Rs.5,200 By Emkay Global Financial Services We downgrade Britannia to REDUCE from Add, cutting Sep-25E TP to Rs5,200 from Rs6,750 earlier. Britannia's near-term outlook has turned weak, given the double whammy of demand slowdown and inflationary pressures. The inflationary setting ahead is likely to have a bearing on volume and margin delivery. The company is looking at 4-5% price hikes to address the inflationary stress, but as the strategic cover ends, we sense inflationary stress persisting in the business. We cut earnings by 9-...
Reduce Britannia Industries Ltd For Target Rs.5,200 By Emkay Global Financial Services
Reduce Britannia Industries Ltd For Target Rs.5,200 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-19 12:34:50 pm
Buy Bajaj Finserv Ltd For Target Rs.2,050 By Emkay Global Financial Services BJFIN reported a satisfactory performance in Q2FY25 with reasonable performances posted by its established operating subsidiaries (BAF, BAGIC, and BALIC) amid the difficult and changing external environment. The emerging ventures (Finserv Health, Finserv Direct and AMC) continued to make good progress toward their journey to sustainable and profitable growth. Rising credit cost dented BAF’s Q2 results and the guidance of increased credit cost for FY25 (2.05%) led to a cut in our earning...
Buy Bajaj Finserv Ltd For Target Rs.2,050 By Emkay Global Financial Services
Buy Bajaj Finserv Ltd For Target Rs.2,050 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-13 01:56:27 pm
Add Shriram Finance Ltd For Target Rs.3,500 By Emkay Global Financial Services SHFL reported steady performance in Q2FY25 with AUM, profitability, asset quality, and credit cost coming in line with consensus and our expectations amid a volatile environment. In addition to meeting expectations, the performance was broadly stable to a slight improvement QoQ. There has been good progress on the guided path of ~17-18% AuM growth, and commensurate growth in profit with stable asset quality. Overall, SHFL continued to impress with increasing predictability of its performance....
Add Shriram Finance Ltd For Target Rs.3,500 By Emkay Global Financial Services
Add Shriram Finance Ltd For Target Rs.3,500 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-13 01:50:26 pm
Buy Bank of Baroda Ltd For Target Rs.325 By Emkay Global Financial Services Better growth and asset quality performance Bank of Baroda (BoB) reported strong PAT beat at Rs52bn/RoA of 1.3%, mainly due to higher other income (led by treasury gains and recovery in TWO accounts), and partly offset by higher provisions (including contingent provisions). After realigning the book in Q1, BoB reported healthy broad-based credit growth at 12% YoY/7% QoQ. However, NIM shrunk by 8bps QoQ to 3.1% due to lower yields. Headline GNPAs declined by 38bps QoQ to 2.5% in absence of ...
Buy Bank of Baroda Ltd For Target Rs.325 By Emkay Global Financial Services
Buy Bank of Baroda Ltd For Target Rs.325 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-13 01:45:51 pm
Add CreditAccess Grameen Ltd For Target Rs.1,100 By Emkay Global Financial Services We downgrade CREDAG to ADD from BUY with revised downwards TP of Rs1,100 (from Rs1,600). Company reported ~51% earning miss with PAT at Rs1.9bn/RoA at 2.7%, primarily due to sharp growth slowdown and stress flow in MFI portfolio with GNPA ratio (60DPD+) up by 98bps QoQ to 2.4% in 2Q. As per the management, bulk of the stress has come from lower vintage customers with 4+ lenders due to new MFIN guardrails, localized disruptions, and seasonal floods. We believe some stress relief should ideally...
Add CreditAccess Grameen Ltd For Target Rs.1,100 By Emkay Global Financial Services
Add CreditAccess Grameen Ltd For Target Rs.1,100 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-13 12:49:49 pm
Reduce Bandhan Bank Ltd For Target Rs.175 By Emkay Global Financial Services Logs a better 2Q than peers, but rising MFI stress still concerning Bandhan Bank reported a 6% PAT beat at Rs9.4bn and RoA of 2.1%, mainly led by higher other income and lower than expected provisions – better than some peers that posted sharp earning downgrades. The bank has logged a healthy AUM growth of 22% YoY/4% QoQ, supported by growth in its secured loan portfolio (~47% of loans). Deposits too grew swiftly, by 27% YoY/7% QoQ, leading to contraction in LDR by 282bps to 88%, whi...
Reduce Bandhan Bank Ltd For Target Rs.175 By Emkay Global Financial Services
Reduce Bandhan Bank Ltd For Target Rs.175 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-13 12:43:11 pm
Reduce Poonawalla Fincorp Ltd For Target Rs.240 By Emkay Global Financial Services Poonawalla Fincorp reported disappointing Q2 numbers with the credit cost of Rs9.1bn (including Rs6.7bn one-time provisioning on the STPL book) leading to the company posting a Rs4.7bn loss. The management provided comfort by stating that review of the entire portfolio is complete and there should not be any need for additional provision. The company unveiled 6 new products and its omnichannel phygital distribution that shall help it deliver 5-6x AUM growth in the next 6 years. With the Poona...
Reduce Poonawalla Fincorp Ltd For Target Rs.240 By Emkay Global Financial Services
Reduce Poonawalla Fincorp Ltd For Target Rs.240 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-12 02:53:22 pm
Add IDFC First Bank Ltd For Target Rs.65 By Emkay Global Financial Services Higher contingent provisions dent earnings IDFCB reported ~73% earnings miss with PAT at Rs2bn/0.6% RoA, primarily due to higher contingent provisioning for MFI (Rs3.5bn), one-off Maharashtra toll account (Rs2.5bn), and some provisioning increase due to shoring up of specific PCR to 75% from 69% in 1Q. Excluding the additional provisions, the APAT would be Rs6.3bn. Credit growth was healthy at 23% YoY/6% QoQ, but margins contracted a bit due to softer loan yields/rising CoF. Despite higher...
Add IDFC First Bank Ltd For Target Rs.65 By Emkay Global Financial Services
Add IDFC First Bank Ltd For Target Rs.65 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-12 02:45:39 pm
Buy ICICI Bank Ltd For Target Rs.1,450 By Emkay Global Financial Services ICICI Bank posted a 3% beat on PAT at Rs117bn and a superior RoA of 2.4% among peers, primarily due to healthy NII and better fees/treasury gains. Defying industry and peer trends, the bank clocked healthy credit growth at 15% YoY/4% QoQ, driven by some pick-up in corporate, business banking, and non-PL retail book. Deposit growth was equally healthy at 16% YoY/5% QoQ, while the bank maintains reasonable LCR at 120%. Amid most peers reporting higher NPAs, ICICIB continues to witness steady im...
Buy ICICI Bank Ltd For Target Rs.1,450 By Emkay Global Financial Services
Buy ICICI Bank Ltd For Target Rs.1,450 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-12 02:39:45 pm
Macro Strategy : Playing the Trump trade right By Emkay Global Financial Services Playing the Trump trade right… Despite a rapid rise in Republican/Red sweep betting odds ahead of the upcoming US election, we think there is more steam to the volatility and Trump trade. With the election still being a binary event, it is important to understand what this could portend for economic policy ahead - and potential impact on asset classes. While a Trump presidency will be more noisy and volatile, we assess that a Harris presidency will not differ too widely in certain k...
Macro Strategy : Playing the Trump trade right By Emkay Global Financial Services
Macro Strategy : Playing the Trump trade right By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-08 12:30:28 pm
Add SRF Ltd For Target Rs.2,600 By Emkay Global Financial Services Chemicals business outlook to remain weak for FY25 SRF’s chemicals business (CB) has again been weak in Q2FY25 (revenue lower by 8% QoQ/5% YoY) with lower margins (EBIT margin of 18% vs 24%/21% in Q2FY24/Q1FY25), on slowdown in agrochemical market and pressure due to inventory adjustments as well as volume/pricing pressure in the US refrigerant gas business (domestic market volumes have been strong). Packaging Films business’ (PFB) demand-supply imbalance persists and is likely...
Add SRF Ltd For Target Rs.2,600 By Emkay Global Financial Services
Add SRF Ltd For Target Rs.2,600 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-05 05:33:29 pm
Reduce Coforge Ltd For Target Rs.6,750 By Emkay Global Financial Services Strong revenue growth; one-off items led to profit miss Coforge reported strong revenue performance in Q2, whereas margin was a slight miss. Revenue grew 26.8% QoQ to USD369.4mn (26.3% CC; organic CC 5.5%). Adj. EBITDAM fell by 140bps to 16.5%, a slight miss. Revenue growth was broad-based, led by Insurance (8.9% QoQ), Travel (6.2%), Government vertical outside India (6.7%), and BFS (5.2%). Management highlighted that Cigniti’s revenue growth, margins, and synergy benefits progress w...
Reduce Coforge Ltd For Target Rs.6,750 By Emkay Global Financial Services
Reduce Coforge Ltd For Target Rs.6,750 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-05 05:17:13 pm
Buy Adani Green Energy For Target Rs. 2,550 By Emkay Global Financial Services Minority interest jumps, operating performance stable TARGET PRICE (Rs): 2,550 AGEL’s consol. Q2FY25 EBITDA rose 25% YoY to Rs22.7bn (down 6% QoQ), led by stable operating performance and a jump in equipment sales. Consol. PAT (after minority interest and share from associates-JVs) came in at Rs2.76bn in Q2FY25, down 26% YoY and 38% QoQ due to jump in MI to Rs2.4bn from asset transfer to Total JV. Net debt rose 9% H-o-H to Rs582bn as of Sep-24-end. Management estimates 2GW/4GW RE cap...
Buy Adani Green Energy For Target Rs. 2,550 By Emkay Global Financial Services
Buy Adani Green Energy For Target Rs. 2,550 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-11-05 04:17:54 pm
Add Max Financial Ltd For Target Rs. 1,450 By Emkay Global Financial Services Healthy performance for H1; rebranding makes it future ready Max Life delivered a healthy performance for H1FY25, with APE growing 31% at Rs36.2bn and VNB margin at 21.1% (Emkay: 20.5%) resulting in VNB of Rs7.7bn (+15.5% YoY) as against our estimate of Rs6.9bn. With growth firing across the proprietary channels, management remains optimistic about growth outlook. While VNB margins are impacted by the new surrender regulations, management expects these to hover within the 23-24% range for ...
Add Max Financial Ltd For Target Rs. 1,450 By Emkay Global Financial Services
Add Max Financial Ltd For Target Rs. 1,450 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-01 10:33:58 am
Add TVS Motor Ltd For Target Rs. 2,600 By Emkay Global Financial Services Strong underlying margins; high valuations limit upside TVSL posted a ~3% miss on consensus EBITDA amid 2% lower ASPs QoQ (due to introduction of the lower-priced E-2W variant as a response to the heavy competition in the industry). Management indicated a healthy 11% industry growth during Navratras (vs 4% in the entire festive so far), and expects improvement during the Dhanteras-Diwali period; Q3 industry growth is seen at ~7-8% YoY, with TVSL’s outperformance expected to continue....
Add TVS Motor Ltd For Target Rs. 2,600 By Emkay Global Financial Services
Add TVS Motor Ltd For Target Rs. 2,600 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-01 10:30:06 am
Reduce Navin Fluorine Ltd For Target Rs. 3,500 By Emkay Global Financial Services Weak near-term demand; maintain REDUCE NFIL’s Q2 revenue was up 10% YoY at Rs5.2bn (flat QoQ), owing to: i) higher R32 sales and improved R22 realizations in HPP business; ii) lower contribution from the specialty chemical business due to cautious outlook and competitive pressure; and iii) improved contribution from the CDMO business with focus on late/commercial-stage molecules. EBITDA was in line with estimates at Rs1bn (up 9% YoY/7% QoQ) with margin at 20.7% (flat YoY). While grow...
Reduce Navin Fluorine Ltd For Target Rs. 3,500 By Emkay Global Financial Services
Reduce Navin Fluorine Ltd For Target Rs. 3,500 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-01 10:28:32 am
Add Birlasoft Ltd For Target Rs.670 By Emkay Global Financial Services Sharp margin deterioration; deal-wins muted Birlasoft saw a mixed performance in Q2FY25. Company saw sequential revenue growth returning, after the weak show in Q1; revenue was up 2.6% QoQ, broadly akin to our estimate. But EBITDA margin slumped by 260bps QoQ to 12.1%, well below our estimate of 14.7% on planned investments in tech and domain capabilities as well as in partnerships, and due to high upfront investments required for consolidation deals with onshore presence initially. Margin...
Add Birlasoft Ltd For Target Rs.670 By Emkay Global Financial Services
Add Birlasoft Ltd For Target Rs.670 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-01 10:25:45 am
Buy Dr Lal Pathlabs Ltd For Target Rs. 3,400 By Emkay Global Financial Services Margins surprise on the back of Suburban and Swasthfit DLPL’s Q2FY25 margins expanded by 110bps YoY on the back of improving contribution from Swasthfit and better margin performance at Suburban (~600bps QoQ). Sample volume growth (+8.6% YoY), however, remained soft owing to lower incidence of monsoon-related illnesses (except West region) and a higher base. With the management’s target of adding 15-20 labs in FY25, signs of Suburban turning around, and predatory pricing recedi...
Buy Dr Lal Pathlabs Ltd For Target Rs. 3,400 By Emkay Global Financial Services
Buy Dr Lal Pathlabs Ltd For Target Rs. 3,400 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-01 10:23:09 am
Reduce L&T Finance Ltd For Target Rs. 150 By Emkay Global Financial Services Rural MFI pain to hurt for a few quarters; downgrade to REDUCE LTF reported a mixed Q2FY25 result with PAT of Rs6.96bn broadly in line with our estimates, whereas it was ~3% above Consensus estimates. However, on the asset quality and credit cost front, the difficulties have started to emerge with: 1. Credit cost (on AuM) jumped by 36bps QoQ to 2.86% and was the highest in 8 quarters; 2. GS3 increased by 5bps QoQ to 3.19%, while NS3 jumped by 17bps QoQ to 0.96%, reflecting ~5ppts QoQ reduc...
Reduce L&T Finance Ltd For Target Rs. 150 By Emkay Global Financial Services
Reduce L&T Finance Ltd For Target Rs. 150 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-01 10:14:10 am
Reduce Hyundai Motor India Ltd For Target Rs. 1,750 By Emkay Global Financial Services Initiate with Reduce; strong franchise, but high valuation amid muted growth outlook We initiate coverage on Hyundai Motor India (HMIL) with REDUCE (TP of Rs1,750, at ~23x core Sep-26E PER, similar to MSIL) amid a lackluster ~5% EPS CAGR over FY24-27E. HMIL has established a strong franchise in India; however, lack of major launches (key growth driver historically in PVs) over the next 12-18M, muted ~5% capacity CAGR, higher royalty, and lower treasury income are likely to restrict EPS gro...
Reduce Hyundai Motor India Ltd For Target Rs. 1,750 By Emkay Global Financial Services
Reduce Hyundai Motor India Ltd For Target Rs. 1,750 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-01 10:06:39 am
Add City Union Bank Ltd For Target Rs. 170 By Emkay Global Financial Services Growth and PCR gathering momentum; upgrade to ADD CUBK posted a ~6% beat in earnings with PAT/RoA at Rs2.9bn/1.6%. This was mainly due to healthy margins (up by 13bps QoQ) and other income, partly offset by higher provisions as the bank finally starts to accelerate its otherwise lower PCR (a major irritant). CUBK has also delivered a healthy double-digit growth of 12% YoY/5% QoQ on the back of pick-up seen in its MSME, GL, and Corporate book. This growth has been achieved without any meani...
Add City Union Bank Ltd For Target Rs. 170 By Emkay Global Financial Services
Add City Union Bank Ltd For Target Rs. 170 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-11-01 09:58:36 am
Buy RBL Bank Ltd For Target Rs. 325 By Emkay Global Financial Services RBL posted a miss in earnings (~33%) with PAT at Rs2.2bn/0.6% RoA, mainly due to dip in NIM to ~5%, higher staff cost (owing to pay hikes and ~800-900 in-house collection fleet added in Q2), and LLP (led by higher slippages in CC + MFI book). Credit growth also moderated to 15% YoY due to the bank’s strategy to prune its low-yielding corporate book and slowdown in unsecured loan growth (including Cards and MFI); however, the bank remains focused on building its high yielding secured ret...
Buy RBL Bank Ltd For Target Rs. 325 By Emkay Global Financial Services
Buy RBL Bank Ltd For Target Rs. 325 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-22 02:41:27 pm
Reduce ICICI Lombard Ltd For Target Rs. 1,900 By Emkay Global Financial Services ICICIGI reported a mixed Q2FY25 result, where the operating performance at 10.8% YoY GWP growth and the combined ratio at 104.5% came in lower than our estimates; however, buoyant equity market-led capital gains at Rs2.37bn drove PAT to Rs6.9bn, which is 8.5% above our estimates. The management remains committed to its profitable growth strategy by targeting selected business and customer segments. The growth outlook looks challenging for the General Insurance sector due to factors such as no...
Reduce ICICI Lombard Ltd For Target Rs. 1,900 By Emkay Global Financial Services
Reduce ICICI Lombard Ltd For Target Rs. 1,900 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-22 02:35:46 pm
Add Tech Mahindra Ltd For Target Rs. 1,700 By Emkay Global Financial Services Tech Mahindra reported broadly in line operating performance. Revenue grew 1.9% QoQ to USD1.59bn (CC 0.7%), in-line with expectations. Growth was broad-based with 5 of the 7 verticals seeing QoQ increase. EBITM rose by 110bps QoQ to 9.6%, in sync with our estimate. Management indicated that demand environment and discretionary spends remained similar to previous quarter. Deal intake was steady at USD603mn (534mn QoQ). Management continues to prioritize margin over growth in the near term, and...
Add Tech Mahindra Ltd For Target Rs. 1,700 By Emkay Global Financial Services
Add Tech Mahindra Ltd For Target Rs. 1,700 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-22 02:30:09 pm
Reduce Zee Entertainment Ltd For Target Rs. 140 By Emkay Global Financial Services Zee reported a mixed operating performance in Q2FY25. Advertising revenue growth remained underwhelming, declining by another 7.9% YoY. Ad revenue has now declined (YoY) in last eight of the nine quarters. Subscription revenue saw an uptick of 9.2% YoY. Margins surprised positively as Zee contained expenses across the board. Management stated that advertising environment has picked up in September in the run-up to the festive season, although longterm spending trend remains uncertain as of no...
Reduce Zee Entertainment Ltd For Target Rs. 140 By Emkay Global Financial Services
Reduce Zee Entertainment Ltd For Target Rs. 140 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-22 02:18:34 pm
Reduce Kotak Mahindra Bank Ltd For Target Rs. 1,700 By Emkay Global Financial Services Kotak Mahindra Bank (KMB) continued to report margin contraction (11bps QoQ to 4.9%) due to lower loan asset yields which was due to slower growth in unsecured loans (including full impact of credit card suspension). This, coupled with higher LLP and lower other income led to a 4% miss on PAT at Rs33bn/2.2% RoA. Gross credit growth was healthy at 18% YoY, but sell-off via IBPC for BS management led to lower net credit growth at 15% YoY. Stress in unsecured loans including MFI and Cards has in...
Reduce Kotak Mahindra Bank Ltd For Target Rs. 1,700 By Emkay Global Financial Services
Reduce Kotak Mahindra Bank Ltd For Target Rs. 1,700 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-22 10:48:41 am
Buy HDFC Bank Ltd For Target Rs. 2,000 By Emkay Global Financial Services HDFC Bank reported a 3% PAT beat at Rs168bn/1.9% RoA, primarily due to stable margins, contained opex, and provisions (due to reversal of Rs6.8bn AIF provisions). After an upset in 1Q, deposit growth returned – up 15% YoY/5% QoQ (Rs1.2trn), but credit growth fell to a low of 7% YoY as the bank focused on LDR management (down by 375bps QoQ to 100%) to allay regulatory concerns. However, the bank managed to maintain NIMs at 3.65% owing to better portfolio mix, defying the industry trend. ...
Buy HDFC Bank Ltd For Target Rs. 2,000 By Emkay Global Financial Services
Buy HDFC Bank Ltd For Target Rs. 2,000 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-22 10:42:18 am
Outperform Apollo Pipes Ltd For Target Rs.675 By Choice Broking Ltd Apollo Pipes is a top 10 piping solution provider in India, headquartered in Delhi, with over three decades of experience. The company operates eight manufacturing facilities across various states, including Uttar Pradesh, Gujarat, Karnataka, Chhattisgarh, Maharashtra, Dadra and Nagar Haveli, and Madhya Pradesh, with a total capacity of 216,000 tons. Apollo Pipes offers an extensive product range of over 2,600 varieties, including cPVC, uPVC, PVC-O pipes, fittings, and water storage tanks, ca...
Outperform Apollo Pipes Ltd For Target Rs.675 By Choice Broking Ltd
Outperform Apollo Pipes Ltd For Target Rs.675 By Choice Broking Ltd
Source: Emkay Global Financial Services
2024-10-15 04:31:37 pm
Perspective by Ms. Riya Singh - Research Analyst, Commodities and Currency , Emkay Global Financial Services Below the Perspective by Ms. Riya Singh – Research Analyst, Commodities and Currency , Emkay Global   Technical Analysis USDINR Spot Short Term USDINR , is expected to maintain the resistance of 84 with support around 83.55 levels Medium Term (3 Mon) USDINR Spot is expected to trade within the levels of 84.25 - 83.25 levels       Above views are of the author and not of the website kindly read disclaimer
Perspective by Ms. Riya Singh - Research Analyst, Commodities and Currency , Emkay Global Financial Services
Perspective by Ms. Riya Singh - Research Analyst, Commodities and Currency , Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-14 04:26:08 pm
Q2 IT Earnings Preview - Steady quarter; pinning hopes on FY26 recovery: Emkay Global Financial Services Emkay Global Financial Services has released a note on the earning expectations for the Indian IT companies for Q2FY25. As per the research IT companies’ revenue growth is likely to reflect the steady demand environment and usual seasonal strength, although discretionary spending is yet to recover. Emkay Global expects YoY growth trajectory to improve further on the back of a stable demand environment, benefits of large deal ramp ups, and no further deterioration in discretionary spendi...
Q2 IT Earnings Preview - Steady quarter; pinning hopes on FY26 recovery: Emkay Global Financial Services
Q2 IT Earnings Preview - Steady quarter; pinning hopes on FY26 recovery: Emkay Global Financial Services
Source: Emkay Global
2024-10-05 05:58:23 pm
Buy Petronet LNG Ltd For Target Rs. 425 By Emkay Global Financial Services We upgrade PLNG to BUY from Add and raise our TP by 16% to Rs425/sh. We reiterate our positive view on the back of a steady outlook and attractive valuation. While the high Dahej utilization of Q1, driven by the power sector has cooled-off, we believe ~100% utilization is achievable for remainder of the fiscal. The commencement and ramp up of Exxon’s second 1.2mmtpa term contract with higher Kochi tariff in FY26-27, leads to our EPS increasing 7-9% for that period. PLNG’s tariff o...
Buy Petronet LNG Ltd For Target Rs. 425 By Emkay Global Financial Services
Buy Petronet LNG Ltd For Target Rs. 425 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-03 05:50:58 pm
Add Dabur India Ltd For Target Rs. 650 By Emkay Global Financial Services We downgrade Dabur to ADD from BUY with TP cut from Rs750/sh to Rs650/sh, due to limited upside. We have been positive on Dabur given expected improvement in the demand setting from rural recovery (45% of revenue) and better winter demand (to aid mix). Q2 inventory correction is a surprise, where Dabur noted pipeline buildup. Channel hygiene (refer to report: Addressing channel hygiene key for restoring distribution moat) is an important issue with FMCG firms; restoration would be key for gro...
Add Dabur India Ltd For Target Rs. 650 By Emkay Global Financial Services
Add Dabur India Ltd For Target Rs. 650 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-03 05:45:38 pm
Reduce Mahindra Finance Ltd For Target Rs. 270 By Emkay Global Financial Services We recently met Raul Rebello (MD & CEO) and Vivek Karve (CFO) of MMFS for an update on the company’s strategy and recent developments in the sector and the company. Key takeaways: i) Gradual expansion to Mortgages and MSME lending to compliment the vehicle finance business and enable tapping of a large portion of the retail lending opportunity; ii) Prioritizing risk management in underwriting and collections has delivered sharp asset quality improvement, leading to lesser volatility...
Reduce Mahindra Finance Ltd For Target Rs. 270 By Emkay Global Financial Services
Reduce Mahindra Finance Ltd For Target Rs. 270 By Emkay Global Financial Services
Source: Emkay Global Financial Services Ltd
2024-10-03 05:38:50 pm
India Strategy Sector Update : BFSI: Sell into the short-term rally - Emkay Global Financial Services Ltd BFSI: Sell into the short-term rally We see a short-term rally in Financials led by a potential deposit growth recovery as the RBI begins its easing cycle. Moreover, the sector remains an island of optically moderate valuations which is triggering a TINA factor for investors. We, however, believe this rally will not last beyond a quarter as margins come under pressure when repo rates are cut. Longer-term, we see lenders still overvalued, with fair-value ranges at 1.5-1.7x PBV vs current le...
India Strategy Sector Update : BFSI: Sell into the short-term rally - Emkay Global Financial Services Ltd
India Strategy Sector Update : BFSI: Sell into the short-term rally - Emkay Global Financial Services Ltd
Source: Emkay Global Financial Services Ltd
2024-09-26 04:04:31 pm
Perspective on Gold by Emkay Golbal Financial Services, Commodities and Currency Desk Below the Perspective on Gold by Emkay Golbal Financial Services, Commodities and Currency Desk   “Commex gold price hits fresh highs of $2660 levels. MCX gold hits fresh high of Rs 74,637. Crossing this critical level indicates gold may touch $3,000 in the medium to long-term Expectation of further interest rate cuts by the Fed has fuelled the rally, Escalation of geopolitical tensions between Israel and Lebanon have also pushed up gold prices”   Above vi...
Perspective on Gold by Emkay Golbal Financial Services, Commodities and Currency Desk
Perspective on Gold by Emkay Golbal Financial Services, Commodities and Currency Desk
Source: Emkay Global Financial Services Ltd
2024-09-24 04:20:15 pm
Add Reliance Industries Ltd For Target Rs.3,335 By Emkay Global Financial Services CY24 AGM – Deep-tech makeover, new energy takes center-stage RIL’s CY24 AGM highlighted its makeover into a deep tech and new-age manufacturing entity, with Jio leading the AI charge and being embedded in every segment. The financial roadmap reiterating RIL’s CY22 AGM target of doubling in value by CY27 (golden decade), besides Retail and Jio also doubling their EBITDA between FY24 and FY28, were other key takeaways (we build in 70-90% growth). However, a key notable was ...
Add Reliance Industries Ltd For Target Rs.3,335 By Emkay Global Financial Services
Add Reliance Industries Ltd For Target Rs.3,335 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-09-23 11:31:55 am
Add KEC International Ltd For Target Rs. 1,050 By Emkay Global Financial Services Cables business value unlocking on the cards KEC’s robust order inflows (FY25 YTD: +80%YoY at ~Rs100bn; +L1 position of Rs80bn) provide a strong base for attaining management’s FY25 inflow guidance of Rs250bn (~40% target already accomplished). With an all-time high order backlog, coupled with a substantial tender pipeline of ~Rs1.5trn, KEC is well-positioned to log sustained growth in coming years. BoD-approved fundraise of ~Rs60bn (QIP/NCD: Rs45bn/Rs15bn) toward exploring org...
Add KEC International Ltd For Target Rs. 1,050 By Emkay Global Financial Services
Add KEC International Ltd For Target Rs. 1,050 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-09-23 11:21:02 am
Buy CEAT Ltd For Target Rs.675 By Emkay Global Financial Services Emerging 'consumer' leader; best-placed to resist RM volatility We initiate coverage on CEAT with BUY and TP of Rs3,650 (17x Sep-26E PER; likely upside: 31%). Despite street concerns about margin volatility due to spike in RM prices, our analysis points to gradual de-linking of tyre industry profitability from the underlying RM (gross margin 4-5% higher now than the corresponding RM level 2Y ago). Backed by best-in-class R&D, industry-leading marketing spends, and OEM relations...
Buy CEAT Ltd For Target Rs.675 By Emkay Global Financial Services
Buy CEAT Ltd For Target Rs.675 By Emkay Global Financial Services
Source: Emkay Global Financial Services
2024-09-23 11:13:34 am