Axis Capital

Articles By Axis Capital

225 Articles

Apollo Hospitals Enterprise Rating Buy: Prospects for company’s growth strong

While matured hospitals (41% of sales) and pharmacy business (40%) are expected to see steady growth with gradual margin expansion, we expect higher growth and Ebitda margin expansion from new hospitals (~33% of bed capacity

Apollo Hospitals, Apollo Hospitals Enterprise, Apollo Hospitals Rating, markets news

‘Add’ on Embassy Office Parks, growth is speeding up for company

REIT’s prospects make for a compelling investment case; rating revised to ‘Add’.

RBL Bank rating: Buy — Capital raise mitigates growth concerns

Asset quality issues likely to recede in FY21; estimates revised due to fund raise with TP rising to Rs 470

RBL Bank rating, credit cards, MFI, NPL, Bajaj Finance, liquidity regime, RoE

Stock corner: ‘Add’ on Mindtree; large deal to drive growth

In the past (5 years ago), the company had put similar deal team but failed to accelerate the momentum due to focus led by deal advisory team which could not build its focus on the services and capabilities of the company.

Torrent Pharma rating: Maintain ‘buy’ with target price of Rs 2,200

India (~45% of sales) — expects double-digit growth and PCPM^ to improve led by new launches (CVS —Ticagrelor in November 2019, Diabetes – Remo, Vildagliptin in December 2019).

SBI Rating | Buy — Asset quality headwinds have receded

Despite overall growth being slow, valuation multiples are expected to improve owing to better RoA/RoEs; TP up to Rs 400.

SBI Rating | Buy — Asset quality headwinds have receded

Stock corner: ‘Reduce’ on Siemens, slowdown cast a shadow on results

FY20/21e EPS cut by ~9% each; TP down to Rs 1,630; downgraded to ‘Reduce’ given high valuations and weak demand outlook

Downgrade to Reduce on high valuations (42x FY20e PE) and weak demand outlook in the near to medium term.

Gateway Distriparks Rating: Buy; Rail business did very well

FY20/21e Ebitda tweaked to factor in adverse macro; medium term prospects are good; ‘Buy’ retained

Management maintained its intent to sell other non-core assets to reduce debt by ~Rs 3 bn by FY21 – this lends comfort.

Stock corner: ‘Reduce’ on Page Industries with target price of Rs 23,000

Page Q2FY20 print was a mixed bag with a modest beat in revenue (up 12%, 6% ahead our estimate) and a miss on operational front (underlying EBITDA was flat YoY, 3% below our estimate).

Stock, Page Industries, target price, market news, Page Industries share

Stock corner: ‘Buy’ on Vedanta, quarter showing was below par

We reduce FY20e/21e EPS to Rs 12/14 (Rs 15/17 earlier) as we cut aluminum/ copper/zinc assumption by 3%/2%/2% for each FY20 and FY21 on weak LME prices.

Stock corner, Buy, Vedanta, quarter, Aluminum, Captive alumina, Copper smelter shutdown, zinc, market news

Tata Steel rating | Add — Subsidiaries pulled down performance

We increase our target FY21e multiple for India business to 6x from 5.5x to upgrade the valuation to historical mean level in midst of the down-cycle. Revise TP to Rs 444 (Rs 422 earlier) based on 6x/5x FY21 domestic/internat

Tata Steel, Tata Steel rating, market news, Tata Steel news, tata sponge, Tata Steel share, Tata Steel nse, Tata Steel ltd

Stock corner: ‘Reduce’ Titan Company, performance in Q2FY20 weak

H2FY20 guidance reduced; FY20-21e EPS down 10-11% due to core jewellery business outlook; TP cut to Rs. 1,150.

Dr Reddy’s rating | Add — A muted performance in the quarter

FY20/21e EPS reduced by 17/8% owing to weak margin; TP revised to Rs 2,900; ‘Add’ maintained due to earnings outlook

Dr Reddy's rating, Ebitda, CNS asset sale, Core Ebitda margin, SG&A

Stock corner: ‘Buy’ on Bandhan Bank, the company posted a strong Q2FY20

Gruh merger will add value; TP raised to `690 factoring in a diversified loan book, RoA and asset quality.

bandhan bank, banking sector

Buy Sobha shares | Axis Capital stock call: Sales growth hit, target price cut, but stock attractive

H2 is expected to be better; TP cut to `575; a good bet in long term; ‘Buy’ retained

Sobha flat pre sales, sobha share, low realisation sales, management, impact of floods, Sobha, key beneficiary of market consolidation, Bangalore, Gurgaon, Delhi, Hosur, Chennai Thrissur, Hyderabad

Axis Capital: Annuity gives significant valuation cushion to DLF

Under-construction projects to add Rs 4.6 bn to rentals over next 12-15 months. 2.5 msf of Cyber Park to commence in FY20 (96% is already pre-leased at Rs 119 psf p.m.) and 1.7 msf of Chennai IT SEZ (~60% is pre-leased at Rs

Axis Capital, DLF, Cyber Park, REIT, DCCDL, DLF rental portfolio, DCCDL

Wipro rating: Growth outlook remains muted

Q2 should be better than Q1; investments likely to weigh on FY20-21 margins; 2.1/3.5% cut in FY20/21e EPS; TP revised to Rs 250

There are challenges in the vertical despite limited exposure to the automotive vertical.

Axis Capital: Upgrade PVR to ‘add’ with target price of Rs 1.740

The management expects RoCE profile across these screens (over 3-5 years) to be largely in sync with PVR as lower ATP/SPH will get negated with lower per screen capex.

Axis Capital, Upgrade PVR, GST, market news, GBOC, PVR Utsav

Westlife development rating: Buy; Store expansion in existing core cities

Despite weak near-term consumer sentiment, the management remains confident of achieving 7-9% SSSG (same-store sales growth) for FY20 due to— Western fast food continuing to grow at robust 14-15% in value terms, while India

Westlife development, Westlife development rating, Store expansion, market news, EOTF,  McCafe, McDelivery

Axis Capital: ‘Buy’ on Biocon, target price stands at Rs 300

Investing for next growth cycle: Expects filing of bevacizumab in the US and the EU by end FY20 and approvals by FY22, Development of Insulin Aspart for EU and US, and developing a basket of biosimilars/NCEs in partnership an

Biocon, target price, EBITDA, China market, india market, market news, biosimilar, 

Axis Capital: Upgrade Colgate-Palmolive to ‘add’, revised TP Rs 1,350

The management highlighted that while the big opportunity in urban remains , the rural presents a huge opportunity. It sees transaction pricing, mix improvement and innovation as three key levers.

Colgate, Palmolive, market news, Colgate india share, Colgate sharea, Colgate Palmolive,Colgate Palmolive india, max fresh

Axis Capital: Upgrade Mindtree to ‘add’ with revised TP of Rs 740

There has been no significant attrition after the management changes. We believe the existing client engagement model of Mindtree provides resilience and limited vulnerability from attrition if any.

Axis Capital, Mindtree, market news, L&T, BFSI, CPG vertical

Axis Capital: ‘Add’ on Equitas Holdings; target price at Rs 125

ESFB will not be permitted to open new branches without RBI permission. Remuneration of MD & CEO will be frozen at existing levels.

Axis Capital, Equitas Holdings, target price, Axis Capital, Equitas Small Finance Bank

Wipro Rating: Reduce; Vara buy to serve as inorganic booster

However, given Vara’s concentrated exposure to few clients, it would be difficult to cross-sell services; ‘Reduce’ retained.

Wipro’s inorganic strategy has been able to create a niche for the company in select few verticals and service line over the last decade

ICICI Bank rating | Buy — Bank in a position to deliver on its goals

~100% earnings CAGR estimated over FY18-21e; one of the preferred picks in the sector; ‘Buy’ maintained.

While most PSU banks, NBFCs and few high-growth private banks are finding it difficult to raise growth capital, ICICI Bank is well placed on capital front with Tier 1 Capital at 14.6% (Q1FY20)

Axis Capital: Bandhan Bank a long-term compounder, maintain ‘buy’

Bandhan is one of the most successful transition stories retaining its NBFC-MFI ingredients in a universal bank format.

Gruh Finance, merger, Bandhan Bank, HDFC Ltd, HDFC bank, industry news, banking news, 

Reliance Jio grows at the expense of Vodafone Idea, Bharti Airtel

Rate of active subscriber loss for Vodafone Idea increased in the month of June.

Income Tax Calculator, Budget 2019, How to Calculate Income Tax


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