Edelweiss

Maintain ‘buy’ on BHEL with target price of Rs 110

Bharat Heavy Electricals (BHEL) saw a jump in Q4FY18 gross margin which helped neutralise the wage revision impact.

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Wonderla Holiday shares: Edelweiss says maintain ‘buy’ with TP of Rs 420

Wonderla Holidays’ (Wonderla) 7.5% YoY revenue dip and 79.2% YoY EBITDA growth in Q4FY18 came in line with estimates.

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Balakrishna Industries: Edelweiss rates ‘buy’ as strong volumes boost performance in Q4

PAT CAGR of 31% is estimated over FY18-20; company well poised to take advantage of uptick in global industry

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Petronet LNG: Subdues showing in Q4, Edelweiss rates ‘hold’

Dahej volumes came 4% below on lower term volumes though offset to an extent by higher spot sales. We envisage robust near-term volume prospects as Kochi utilisation improves and Dahej terminal expands capacity by 8%.

Volumes, at 4.1MMT, missed by 5% on lower utilisation at both Dahej and Kochi terminals (106/9% versus estimated 111/14%). News

Maintain ‘buy’ on Mahanagar Gas with target price of Rs 1,056

MGL expects to connect 200k households in FY19, 20% higher than FY18, and add 35 CNG stations (20 in FY18).

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Dr Lal Pathlabs: Edelweiss rates ‘buy’, courtesy strong showing in final quarter

Storm caused by competitive intensity has subsided; company best positioned to tap transition in business areas; maintain ‘Buy’

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Zee Entertainment Enterprises Rating: Robust run on ad growth continued

A host of factors brighten prospects for the company; response to ZEE5 is key monitorable; retain ‘Buy’.

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Maintain ‘buy’ on Karnataka Bank with TP of Rs 163

Karnataka Bank (KBL) reported Q4FY18 PAT of Rs 11.8 crore, lower than our estimate on higher credit cost, even while core profitability surpassed estimate.

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Maintain ‘buy’ on Sun TV Network with TP of Rs 1,064

Sun TV Network’s Q4FY18 revenue and EBITDA surpassed our estimates due to higher-than-expected ad and subscription growth.

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Maintain ‘hold’ on GSK with revised TP of Rs 6,659

GSK Consumer’s (GSK) Q4FY18 revenue and EBITDA growth of 7.1% and 15.2% y-o-y, respectively, came in line, while PAT surpassed estimate.

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Flipkart deal to offer scale to Walmart’s India operations

One of the largest and much-anticipated deal has been finally sealed. Walmart has acquired 77% stake in Flipkart for $16 bn, including $2 bn of primary infusion.

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Cognizant Rating: Better than expected

Digital continued to steer growth in Q1CY18; non-US market opportunity is huge; outlook positive for sector.

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Exide Industries stock rating: Buy says Edelweiss; Strong showing despite cost pressure in Q4

Post a demonetisation and GST hit Q1FY18, Exide’s business momentum has perked up significantly—net sales jumped a strong 26% y-o-y in Q4FY18 (up 33% in Q3FY18, 22% in Q2FY18) driven by volume improvement in automotive, m

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Edelweiss says Maintain ‘buy’ on PVR with target price of Rs 1,695

Though PVR had guided for 67 new screens in FY18, delays in mall completion and regulatory approvals resulted in only 49 additions.

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Tejas Networks rating ‘buy’: Edelweiss predicts a weak final quarter for the company

While outlook’s better for FY19, FY19/20e revenue and earnings estimates cut 17.2/14.6% and 20.7/15.7%; TP revised to Rs 396 from Rs 530.

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Maintain ‘hold’ on Idea Cellular with TP at Rs 78

Idea Cellular (Idea) reported weak revenue, but better profitability. We believe, Idea and Vodafone’s data capacity utilisation at 78% is high and they will have to accelerate capacity expansion.

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Bharat Electronics: A good bet post recent price plunge

Medium- to long-term growth/competitive profile intact despite investor worries; TP revised to Rs 185.

In our view, post the recent 30% plunge in stock price, Bharat Electronics (BHE) offers a long-term investment opportunity notwithstanding growing investor discomfort regards falling margins and new order delays. News

Maintain ‘buy’ on Ashok Leyland with TP of Rs 175

Given the decisive shift in the industry’s product mix and AL, margin can surprise on the upside once the heightened competitive intensity and commodity cost headwinds subside. Maintain ‘BUY’.

Management reiterated focus on profitable market share and key performance matrix of market share, margin and working capital. News

Maintain ‘buy’ on HDFC Bank with TP of Rs 2,454

HDFC Bank’s Q4FY18 earnings sustained 20% YoY growth momentum but core operating profit growth was softer—up <25% versus 30% plus over the past couple of quarters.

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Maintain ‘buy’ on Vedanta with target price of Rs 425

We view Vedanta’s (VEDL) acquisition of Electrosteel Steels (ELSS) as value accretive in the near term as: i) EV/t of $546 is significantly lower compared to recent transactions; ii) EBITDA/t accretion potential via captive

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Finolex Cables Rating ‘Buy’: Edelweiss says reasonable growth lies ahead

Notwithstanding the real estate slow-down, we expect 15/20% earnings/OCF growth over FY17-20 on strong growth in non-housing segments.

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Banks with corporate focus likely to see muted Q4

As the VUCA phase will weigh on valuations of corporate-focused banks, we cut valuation multiple across corporate lenders by 10-20% and, consequently, revise down TPs in similar range. Prefer HDFC Bank and Yes Bank.

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Initiate ‘buy’ on Future Consumer with TP of Rs 77

FCL has its finger on the pulse of evolving trends in consumer tastes and preferences. To play these themes, the company is not only expanding existing categories via differentiated offerings, but also launching innovative pr

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Softer refining may prove a drag in final quarter

As the VUCA phase will weigh on valuations of corporate-focused banks, we cut valuation multiple across corporate lenders by 10-20% and, consequently, revise down TPs in similar range. Prefer HDFC Bank and Yes Bank.

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Initiate with ‘buy’ on Future Consumer with TP of Rs 77

Factoring these, we estimate FCL to clock revenue CAGR of 42.5% and EBITDA margin to expand by 379bps over FY17-20. Initiate coverage with ‘BUY’ and DCF-based TP of Rs 77.

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SpiceJet rating: Prospects of growth are robust

Soaring crude price notwithstanding, the company has maintained healthy earnings momentum as yields rose 7% YTD and traffic surged a robust 22%.

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Marico rating ‘buy’: Edelweiss says prospects bright for company

Domestic growth to be steered by several catalysts; margin pressures are likely to ebb from H2FY19; ‘Buy’ retained with TP at Rs 373

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