Edelweiss

Media industry: Demonetisation hinders ad growth; should revive in Q4

The recent demonetisation move is expected to impact on Q3FY17 performance. We estimate our media universe to report tepid revenue growth of 2.2% y-o-y (15.0% in Q2FY17) and subdued 0.9% y-o-y Ebitda growth (24.1% in Q2FY17).

Industry News

Contraction in cement demand not as higher feared, Edelweiss terms this as ‘Buy’ opportunity

We estimate margin compression for cement players due to weak prices on subdued demand and fading benefits of low fuel costs.

Industry News

Big US push by Bharat Forge will ensure higher growth: Edelweiss

BHFC has taken several steps to strengthen its US exposure like focusing on increasing content per vehicle and higher penetration in oil and gas (now also covers refining) which will ensure higher growth versus earlier cycles

Big US push by Bharat Forge will ensure higher growth: Edelweiss

Consumer goods companies change task, now focus on direct reach

Focus of consumer goods companies has shifted back on expanding direct reach after a lull of the past 12-18 months wherein they had concentrated on increasing throughput per store rather than overall reach.

Consumer goods companies change task, now focus on direct reach

Edelweiss recommends ‘Buy’ on Bharat Forge shares, sees significant upside going ahead

Bharat Forge (BFL) is the world's largest forging companies with presence across automotive, power, oil & gas (O&G), construction & mining, rail, marine and aerospace industries.

Bharat Forge, BFL, orging companies, construction & mining, rail, marine, aerospace, Lower capex requirement News

Nifty EPS in FY17 downgraded by 3%

In Q2FY17, our coverage universe’s (excluding OMCs’) sales/Ebitda/PAT grew 7%/ 10%/8% y-o-y as against our 7%/12%/7% growth estimates.

Markets News

Edelweiss says ‘Buy’ Torrent Pharma; target price Rs 1,665

We recently hosted Torrent’s Pharma (TRP) management. TRP continues to maintain focus on branded business mix from India and Brazil, which bodes well for sustainable growth in a challenging global environment for pharma sec

Edelweiss says ‘Buy’ Torrent Pharma; target price Rs 1,665

H1B visas: After Donald Trump election, Infosys, Wipro, TCS raise local hiring in the US

Post-US presidential elections, protectionist voices have resurfaced on expected lines with the appointment of leading critics of H1B visas in the Cabinet.

H1B visas: After Donald Trump election, Infosys, Wipro, TCS raise local hiring in the US

Edelweiss lowers Crompton Greaves target price to Rs 62

Recent termination of Crompton Greaves’ (CRG) share purchase agreement (SPA) for overseas power equipment plants implies sustained losses till piecemeal sale is concluded and hence will remain a key overhang.

Markets News

Maintain ‘buy’ on non-ferrous players, ‘reduce’ on ferrous firms

We see a clear dichotomy in the sector with supply deficit in non-ferrous space and overcapacity in ferrous.

Maintain ‘buy’  on non-ferrous players, ‘reduce’ on ferrous firms

Edelweiss puts ‘Buy’ on Sadbhav Engineering with target price of Rs 416

Sadbhav Engineering’s (SEL) Q2FY17 revenues, at R6.2 billion, declined 17% y-o-y due to heavy monsoons/project specific issues. Interest cost spurted 33% y-o-y as revenue recognition threshold on certain projects was not ac

Edelweiss puts ‘Buy’ on Sadbhav Engineering with target price of Rs 416

Edelweiss reiterates ‘Buy’ on Gujarat State Petronet; target price Rs 184

Gujarat State Petronet (GSPL) delivered subdued Q2FY17 with EBITDA at R2,262 million (down 3% q-o-q, flat y-o-y), 3% below estimate. Earnings miss was on account of 5% lower than expected volumes at 24.6mmscmd, while tariff w

Markets News

Edelweiss retains ‘Buy’ on Spicejet; target price raised to Rs 91

SpiceJet’s Rs 58.9-crore profit in Q2FY17 surprised positively as sustained yield pressure in a lean quarter had kept expectations muted.

Edelweiss retains ‘Buy’ on Spicejet; target price raised to Rs 91

Bharat Petroleum rated ‘Buy’ by Edelweiss as Q3 likely to be robust

Bharat Petroleum (BPCL) reported subdued Q2FY17 performance with PAT of R13 billion (down 50% q-o-q, up 26% y-o-y). EBITDA at R14 billion was 50% below estimate; however higher than expected other income (3x) implied only a 2

Industry News

Edelweiss rates ICICI Bank as ‘Buy’; deleveraging moves by corporate borrowers augurs well

While trend is likely to continue over next two quarters, deleveraging moves by corporate borrowers should augur well for bank over ensuing quarters

Markets News

Edelweiss maintains ‘Buy’ rating on Britannia Industries; target price Rs 3,369

Britannia’s 11.3% y-o-y revenue growth was in line, while EBITDA and PAT surge of 4.5% and 5.8% y-o-y, respectively, came slightly below estimates. Overall volumes grew 7% y-o-y, dragged by dip in bread and international bu

Edelweiss maintains ‘Buy’ rating on Britannia Industries; target price Rs 3,369

Edelweiss puts ‘Hold’ rating on GSK Consumer with target price of Rs 6,342

GSK Consumer’s (GSK) Q2FY17 revenue, EBITDA and adjusted PAT came in line with our estimates—revenue dipped 1.7% y-o-y (~1.3% y-o-y fall due to one-off accounting adjustment impact) and EBITDA & adjusted PAT jumped 3.0% a

Edelweiss puts ‘Hold’ rating on GSK Consumer with target price of Rs 6,342

Edelweiss maintains ‘Buy’ on Shoppers Stop; target price Rs 431

Shoppers Stop’s (SSL) Q2FY17 revenue came in line with our estimate, but EBITDA and PAT were tepid—down 16.7% and 11% y-o-y, respectively.

Edelweiss maintains ‘Buy’ on Shoppers Stop; target price Rs 431

ITC’s results in line with estimates, says Edelweiss

ITC’s Q2FY17 revenue and PAT growth (adjusted for IND–AS) at 9.6% and 10.5% y-o-y, respectively, came in line with our estimates.

Economy News

Asian Paints Ltd: All round robust performance, yet again

Company key beneficiary of recovery in urban demand and GDP revival; expect 22% EPS CAGR over FY16-18

Asian Paints Ltd: All round robust performance, yet again

Edelweiss maintains ‘Hold’ on Jubilant FoodWorks; target price Rs 1,096

Jubilant FoodWorks’ (JFL) Q2FY17 revenue came in line, while PAT came below estimate due to lower gross margin. Though SSG came at 4.2% (in line with our 4% estimate), it had the benefit of shift of Ramadan dates.

Edelweiss maintains ‘Hold’ on Jubilant FoodWorks; target price Rs 1,096

Edelweiss maintains ‘Buy’ rating on Zuari Agro Chem; target price Rs 278

Zuari Agro Chemicals’ (ZAC) Q2FY17 standalone revenue and EBITDA at `10.5 billion and `0.7 billion, respectively, surpassed our estimates, primarily owing to better-than-expected volumes.

Edelweiss maintains ‘Buy’ rating on Zuari Agro Chem; target price Rs 278

Maintain ‘buy’ on Hindustan Zinc, with target price of Rs 304

Hindustan Zinc (HZL) reported a stellar set of Q2FY17 numbers with beat on all parameters. The stock seems to have taken a breather post the result after an impressive run up (1M- 17%, 3M- 28%).

Maintain ‘buy’ on Hindustan Zinc, with target price of Rs 304

DCB Bank rated ‘Reduce’; Edelweiss says improvement in productivity is key

Steady quarter with NII momentum being sustained on account of high loan growth and superior NIMs

DCB Bank rated ‘Reduce’; Edelweiss says improvement in productivity is key

Reiterate ‘buy’ on Tata Comm, revised PO at R764

We reiterate our buy on TCOM with a revised PO of Rs 764 and consider more clarity on the unlocking of land value to act as catalyst to the stock price.

Reiterate ‘buy’ on Tata Comm, revised PO at R764

Maintain ‘buy’ on LIC Housing Finance, revised target R665

LIC Housing Finance’s (LICHF) Q2FY17 PAT, at Rs 4.95 billion (up 20% y-o-y), was better than our estimates on improved NIMs (up 7bps q-o-q). While overall disbursements were below trend (up <10% y-o-y), the quarter saw c

Maintain ‘buy’ on LIC Housing Finance, revised target R665

Tata Consultancy Services gets ‘Hold’ rating; IT major saw no let up in pain

Tata Consultancy Services’ (TCS) Q2FY17 revenue, at $4,373 m (up 0.3% q-o-q, 1.0% in CC), was below Street’s 1.9% estimate due to weakness in Retail & CPG and BFSI verticals. However, operating margin

Tata Consultancy Services gets ‘Hold’ rating; IT major saw no let up in pain
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