Axis Capital

Articles By Axis Capital

207 Articles

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 News

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,  News

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 News

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 News

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 News

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 News

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) News

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.

MFI companies india, Bandhan Bank, MFI business, Bandhan bank india, low cost model, NBFC MFI, MFI book, MFI lenders, micro borrowers, SFB universal banks, MFI customers, pre payment of loans, bandhan bank rating, bandhan bank stocks, bandhan bank stocks, bandhan bank shares 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.

Industry News

Indraprastha Gas rating | Add — A strong performance in first quarter

Standalone estimates raised by 1-2%; TP revised to `340 from `330; ‘Add’ retained.

Markets News

Balaji Telefilms Rating: Not rated; Aiming to break even by FY20 end

TV realisation rose 12% y-o-y in Q1; coverage discontinued and rating withdrawn

Markets News

Analyst Corner: Maintain ‘buy’ on Sadbhav; revised target price of Rs 162

Expect FY20 to also remain flat with 5% topline growth on execution, liquidity challenges and delays in ADs for mainly three HAMs project (pushed to Q4 against Q2 earlier). To aid liquidity for underconstruction HAM projects,

HAM project, Sadbhav, SADE, CAGR, market news, InVIT, SIPL, market news

NTPC rating | Buy — Q1 results impacted by interim issues

NTPC remains our top pick in power utility space. With sector macros turning positive and core RoE improving, we expect valuations to be re-rated

NTPC, NTPC rating, NTPC share, NTPC news, markets news, Vindhyachal, Rihand, Kahalgaon, Farakka News

Phoenix Mills Q1 rental income growth below expectation

Q1 rental income growth at 7% YoY (9% in Q4) was below our expectation of 10% on lower consumption growth of 5% YoY (6% in Q4).

Under-construction malls will add ~Rs 5 bn of rentals by FY23-24 (on current rental base of ~Rs 10 bn). News

PGCIL Rating: Reduce; A weak performance by company in Q1

TBCB opportunity growing but regulated falling at sharper pace: PGCIL expects Rs 430 bn green energy corridor and Rs 88 bn intra-state opportunities largely thorough TBCB.

PGCIL Rating, POWER GRID CORP OF INDIA, Q1FY20 results, green energy corridors, T&D projects, power transmission News

Analyst corner | ‘Buy’ on Aditya Birla Fashion, target price Rs 235

The company remains confident of medium-term margin expansion guidance of 10% (company-level Ebitda). We tweak our Ebitda estimates up by 1-2% (EPS higher by 5-7% due to change in depreciation policy).

Aditya Birla Fashion, lifestyle, EBITDA/PAT estimates, EBITDA margin, cost optimization News

Ashok Leyland: Maintain ‘buy’ with TP of Rs 87

Given the continued weakness and uncertainty in demand, management refrained from providing FY20 industry volume growth outlook (vs. expectations of 10-12% previously). Management believes volume growth can turn out to be fla

Ashok Leyland net profit, Ashok Leyland rating, Ashok Leyland annual report, Ashok Leyland earnings metrics, market news, Ashok Leyland, Ashok Leyland stocks, Ashok Leyland shares, Ashok Leyland buy, Ashok Leyland News

Analyst corner: Maintain ádd’ on Indian Oil, revised TP Rs 156

Current high level of marketing margin to decline leading to normalized auto fuel margin of `2.5/lt in FY20/21E. The stock trades at 1x FY21E book.

Indian Oil, Indian Oil revenue, Indian Oil, rating, Indian Oil annual report, Indian Oil earnings metrics, Indian Oil market, Indian Oil shares, Indian Oil stocks, Indian Oil earnings, Indian Oil sales, Indian Oil EBITDA growth, growth, EBIT margin News

Vedanta rating | Add — Performance was in line with expectations

Closure of AAL investment will remove overhang on stock; FY20/21e EPS cut to `15/15; ‘Add’ maintained

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Eicher Motors: Maintain ‘Buy’ with a revised TP of Rs 19,300

Q1 Ebitda was 5% below estimate. Ebitda margin at 26% – down 600 bps y-o-y (a 100 bps miss) – was impacted by higher staff cost (lumpy hiring/ increment provisions; expected to taper) and operating deleverage.

Markets News

Dish TV India: Target price revised tad lower to Rs 37

Dish TV India’s Q1FY20 Ebitda at Rs 530 crore beat our/consensus estimates on lower license fee outgo (down Rs 50 crore in Q1; FY20E benefit at Rs 200 crore), as DTH players revised revenue reporting to net of content (pass

Markets News

Biocon: Upgrade to ‘buy’ with revised TP of Rs 300

Strong sales growth in higher margin businesses (biologics) led to gross and Ebitda margin beat. Biocon guided for strong year-on-year (gradual quarter-on-quarter) growth in biosimilar sales — skewed towards H2FY20.

Markets News

ICICI Bank: Preferred pick with TP unchanged at Rs 500

Q1FY20 was strong for ICICI Bank marked by significantly higher-than-expected PAT of Rs 19.1 billion (our estimate: Rs 16.7 billion) primarily on lower provisions (down 41.5% year-on-year).

Markets News

Westlife: Retain ‘buy’ with a revised target of Rs 370

The management remains confident of delivering 7-9% SSSG and modest margin expansion in FY20 and is on track to deliver on Vision 2022.

Markets News

Analyst corner: ‘Add’ on Canara Bank; target price unchanged at Rs 270

Significant exposure to NBFCs (12% of loans) and very high NPAs under infra credit (15.5%) will add to burden. Maintain ‘add’ rating TP unchanged at Rs 270.

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Analyst Corner: Downgrade SBI Life to ‘add’ on price appreciation

The management is confident of retaining high growth while curtailing costs and improving margin.

SBI Life, NBP growth, SBI Life stock price, APE growth, VoNB margin News

Analyst corner: ‘Buy’ on Sterlite Tech with revised target price of Rs 195

However, at CMP, the stock trades at 13x/12x FY20E/FY21E EPS — which implies correction has been overdone.

Markets News