Axis Capital

HDFC Rating | Add — Company a clear winner in NBFC/liquidity crisis

Apollo Munich buy to push HDFC to leading position in general insurance space; TP revised to Rs 2,380; stock valuations are justified

HDFC had also tried inorganic growth in the life insurance space (acquire Max Life), but did not get requisite approvals. News

Stock corner: ‘Add’ on Bandhan Bank, target price of Rs 625

Merger with Gruh Finance was at expensive valuations (one year forward multiple at 13x P/BV for Gruh vs. 5.4x for Bandhan) even after considering strong return profile for Gruh (FY19: RoA at 2.7%).

Similarly, Gruh will also benefit from wider distribution network, a larger customer base and low-cost deposit franchise of Bandhan. News

Sadbhav Engineering: Maintain ‘buy’ with a TP of Rs 301

Equity valuation at 1.7x P/B is thus far premium; on negative side, SIPL’s 10% stake in InVIT valued at `6.5 bn will lead to lower upfront cash flows vs. market expectation.

Sadbhav Engineering, SEL management, road projects, HAM projects, EPC arm News

NTPC Rating | Buy — Prospects for growth are bright

We remain positive on NTPC and believe it can deliver upwards of 20% EPS growth in near term (H1FY20) and 15% EPS CAGR over FY19-22e, levitating the core RoE to 22% and company RoE to 14%.

Axis capital, NTPC, low-cost funding, NTPC Rating, Premium acquisitions, investors News

Analyst corner | Accenture growth trajectory to sustain in near term

Management has raised the FY19 revenue growth guidance to 8-9% (from 6.5-8.5% earlier; with -3% FX impact), implying stable outlook in near term.

Accenture, Accenture growth, Accenture growth trajectory, Accenture earnings, Growth Markets News

Aurobindo Pharma: ‘Buy’ with target price of Rs 715

Received OAI (Official Action Indicated) on its API/Intermediate facilities largely on account of Sartans issue. Unit 11 received warning letter after our meeting.

Markets News

Analyst Corner: Maintain ‘buy’ for IndusInd Bank

IndusInd Bank (IIB) has got the final approval to merge Bharat Financial Inclusion (BFIL) with itself effective 4th July 2019 and is also likely to get additional capital from the promoters.

inusind bank, stock markets News

Analyst corner: Cargo volumes across major ports flat in May

Cargo volume across major ports was flat in May 2019 YoY (+5.7% in Apr’19; +3% in FY19; as per Indian Ports Association) on subdued POL* volume (down 1%; 36% share) and thermal coal volume (down 11%; 15% share) and flat cok

Industry News

Analyst corner | Retain ‘add’ on Hindustan Unilever, target price unchanged

FY19 was another year of solid and consistent performance (eighth consecutive year of top line and margin improvement) with broad-based growth (led by home care).

Markets News

Stock corner: ‘Buy’ Eicher Motors, slowdown concerns are overstated

A big driver for this is plugging of geographical gaps (rural/exports), leveraging on resounding success of the recent 650 cc Twins for its future product offerings, and growing non-motorcycle revenue.

Markets News

Analyst corner | Buy on NTPC, expect return on equity up by 120 basis points

Under-recovery halved in FY19 (`740 crore) with better coal availability at Kudgi, Mauda and re-commissioning of accident-hit Unchahar plant.

NTPC is well placed to deliver over 15% EPS CAGR v. 5% in past 3 years News

Zee Entertainment Rating | Buy — Commendable ad growth in given scenario

Below par FCF generation in FY19 a negative; TP cut to Rs 440; ‘Buy’ maintained

Zee Entertainment Rating, ZEEL Q4 ad growth, EBITDA, RoCE, FCF generation News

Analyst Corner: Print ads revive over 10% for Jagran Prakashan

MBL, Jagran Prakashan (JAGP)’s subsidiary, has acquired 24% stake (balance stake subject to approvals) in Reliance’s BIG FM for Enterprise Value of `10.5 bn (equity value at `3.5 bn, to be paid in 2 tranches).

Print ad growth, ads in print, advertisemnt in jagran, dainik jagran revenue, MBL, Jagran Prakashan, Reliance BIG FM Value, Dainik Jagran profit, inext profit, Mid Day profit, Nai Dunia profit, Mid-Day Gujarati profit, Inquilab profit, Sakhi profit, Punjabi Jagran profit, Jagran Josh profit, Jagran New Media revenue, Jagran.com revenue, Jagranjosh.com revenue, Jagran Post revenue, Jagran Junction revenue, Jeetle revenue News

Analyst Corner | ‘Buy’ on prestige; guided for 25-30% growth in FY20

With 10 msf of new launches planned in FY20 and under-construction annuity portfolio (revenue potential of `3.9 bn pa), both businesses (residential and annuity) will ramp up significantly over next few years.

Markets News

Analyst Corner | ‘Reduce’ on Sun Pharma; target price revised to Rs 425

While guidance of low to mid teen revenue growth on reported basis is in line with our estimates, we expect margin to remain subdued given scale-up in specialty investments.

Markets News

Stock corner: Recommend ‘add’ on Colgate with revised target price of Rs 1,250

Colgate’s Q4FY19 results print was a mixed bag — volume momentum was in line (up 5% y-o-y - domestic), but operationally, it disappointed as Ebitda growth was muted owing to GM-led margin weakness (higher promotional inte

Markets News

Stock corner: ‘Sell’ on Page Industries with revised target price of Rs 19,500

Page posted its weakest-ever quarterly print (significantly below our/street estimates) dragged by slowdown, higher sales incentives (netted off from topline) and destocking by retailers (liquidity issues) compounded by high-

stock, stock market, page industries News

Stock corner: Maintain ‘buy’ on Sun TV with target price of Rs 750 – Axis Capital

TRAI’s new tariff order (NTO) woes led to a subdued quarter for Sun TV (Q4 earnings in line with our estimates) as both ad (down 1% y-o-y) and subscription revenue (+4% y-o-y vs +21% in M9FY19) were adversely impacted. As t

y20, sun tv, trai News

DLF’s operating cash flow to rise in coming quarters

DLF has assets in the area (retail and commercial SEZ), but the residential segment in the market remains stressed due to large number of legacy issues of developers who have unfinished inventory tied up in litigation.

Markets News

ITC Q4 results broadly in line with estimates

Improving volumes and and pricing in cigarette business are key catalysts; valuation is inexpensive; ‘Add’ rating maintained.

Markets News

Analyst Corner: ‘Add’ on Eris Lifesciences, revised TP at Rs 680

Management expects FY20 sales to be 30-50% higher than market growth. Net cash position expected to remain in FY20 given no acquisition plans.

Markets News

Analyst Corner: Maintain ‘buy’ on Tejas, revenue seen rising

Curbs on Huawei are likely to be aimed at dominance of 5G network technology, as Huawei is a rapidly expanding in 5G technology.

Markets News

Vedanta rating | Add — Showing was in line with estimates

Ebitda fall was due to low LME prices, high input costs, closure of Tuticorin copper smelter, partly offset by strong USD and contribution from Electrosteel plant.

During Q3, Vedanta, through one of its subsidiaries, purchased economic interest in a structured investment in Anglo American PLC from its parent Volcan Investments. News

Analyst corner: PVR’s Q4 Ebitda was in line with expectations

Q4FY19 Ebitda was in line with expectations as relatively strong movie content aided 25% jump in footfalls (37% occupancy vs. 31.5% y-o-y; highest in last 16 qtrs), driving strong performance across segments.

Analyst corner: PVR's Q4 Ebitda was in line with expectations News

Analyst corner: SBI to outperform from current levels – Axis Capital

Q4 operating profit (Rs 169.3 bn; up 7% y-o-y) was higher than expected, but PAT (Rs 8.3 bn vs. estimate of `39.1 bn) was significantly below expectations, primarily on higher provisions.

SBI to outperform from current levels (Reuters File photo) News

Stock corner: ‘Buy’ on Varun Beverages with a target price of Rs 1,050

Varun Beverages (VBL) started CY19 on a good note with robust delivery (ahead of our estimates) in Q1CY19 led by healthy performance in India business and strong performance in international business.

Markets News

Marico Rating: Add; At operational level, subdued showing in Q4

Estimates down 5-6% to bake in lower volumes and margins; TP revised to Rs 380.

Markets News
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