Adjusted FY20 book falls 15-25%, assuming a Rs 70-130 bn write-off; subsequent dilutions at low prices to also have impact
FY18e EPS down 23% due to Q3 results; FY19-20e EPS cut 8-10%; TP revised to Rs 660
Growth challenges for APHS are likely to continue; TP revised to 1,140 from 1,080
Company’s focus on retail penetration and sales network augurs well; FY18e PAT cut 8%; ‘Buy’ retained
Grasim industries reported steady earnings print with strong improvement in standalone earnings (VSF, chemicals) partially offset by weakness seen in cement operations (due to weak realisations).
However, gross impaired loans are coming off (1% lower q-o-q) & recovery/resolution will be trigger for further re-rating. Loan growth, capital & profitability are key focus areas from here. Retain Buy, with PT of Rs 365.
We note that SUN’s 2-year ad revenue CAGR for Q3FY18 at 5% is significantly lower than Zee’s (Z IN) at 15% CAGR
We continue to believe in the value of its franchise and find the stock attractive at these levels.
The start-up has tied up with private insurers to offer bite-sized insurance packages for dengue treatment, accidents on the daily commute and even injuries suffered at the gym.
Growth could slow down in FY19; ‘Sell’ rating stays on expensive valuations; TP up to `24,000 due to rollover to March, 2020.
While growth is expected to be strong, risks in US and valuations limit upside; FY18-20e EPS cut 2-3%.
Fresh slippages curtailed even as business momentum improved; FY18/19e EPS cut 40/8% due to Q3 showing; TP down to Rs 236 from Rs 256.
Estimates down 1-2%, with forecasts cut for Europe even as India numbers get upgrade; TP up to Rs 225 from Rs 215 with rollover to Dec-19.
Fall in alumina price and robust LME Al price are positives; the focus on value-added products is likely to boost profitability.
Hero’s Q3 revenue and earnings were in line with our (and consensus) estimate. The company also announced an interim dividend of Rs 55/share similar to last year.
FY18e earnings cut sharply to factor in pressure on NIMs and higher credit costs.
LPC’s Q3Fy18 revenues were in line with our estimates, with the US showing stable signs. However, gross margins contracted 240 bps further , leading to a ~5% Ebitda miss (adjusting for forex loss) and 18% PAT miss, despite tight cost control.
Titan’s Q3FY18 results were marginally below our and the consensus expectations, which is a departure from the trend which has prevailed in the past 4-5 quarters.
ICICI has to make good on provisions in the RBI list #2 accounts referred under IBC in Q4, but a few resolutions from list #1 may provide a cushion and keep credit costs under check.
Higher employee expenses will pressurise near-term EBITDA margins: Concor has implemented 3rd Pay Commission-related wage hikes, which we expect will lead to an adverse impact of 70-80bps on a recurring basis.
HDFC did not sell down any loans to HDFC Bank during the quarter due to GST-related issues, but the same will normalise from Q4FY18F onwards. Corporate book growth was weak at 15% y-o-y and despite that stable q-o-q spreads was a positive outcome.
Standalone PAT level loss at Rs 767 mn was the lowest ever. Going ahead, we believe the company will continue to benefit from robust domestic longs prices (short term) and ramp-up in Angul volumes (long term).
Energy costs continue to remain a headwind, leading to 5-quarter low Ebitda per ton of Rs 286, in spite of a 10% y-o-y volume growth. We have tweaked estimates for lower realisation and higher costs, which is expected to normalise only in FY19. Maintain Hold with revised target price of Rs 161.
The company expects to achieve double-digit Ebitda margin in Q4FY18, which appears difficult due to rise in commodity prices and increase in marketing expenditure. Maintain Sell on expensive valuations; target price revised to Rs 410 (from Rs 400) on rollover to March 2020e.
Expected cyclical tailwinds to help sustain robust showing; TP up to `1,740 with rollover to FY20e.
EPS CAGR of 22% expected over FY17-20e and an ROE of 50%; TP at Rs 327.
Q3 PAT grew 58% y-o-y to Rs 2.2 bn, in line with our estimates. NII surprised positively due to stronger loan growth, but this was offset by higher costs. Asset quality was stable.