ICICI Securities

Articles By ICICI Securities

311 Articles

The Phoenix Mills Rating: buy- Consumption revived in Q3FY21

Estimated FY21 rental income loss down to 45%; TP raised to Rs 925; ‘Buy’ retained

Kalpataru Power Rating: buy- Outlook for firm’s growth is positive

Promoter pledge an overhang; reinitiated coverage with ‘Buy’ rating and TP of Rs 526

The sale of Alipurduar transmission asset is complete, while the others are in progress.

Analyst Corner: Maintain ‘buy’ on NHPC with target price of Rs 34

NHPC received Rs 7.34 billion from PFC on account of dues pending from J&K UT through the PFC/REC scheme, under UDAY limit relaxation.

NHPC, Rs 7.34 billion received from PFC for the pending dues, NHPC’s `1.65 billion resolution plan, PFC/REC scheme, UDAY limit relaxation., tenders for Teesta-VI

Retain ‘buy’ on Sobha with revised target price of Rs 505

Sobha’s Q3FY21 gross sales volumes of 1.13msf worth Rs 8.9bn wereup 6% y-o-y in volume terms and 22% y-o-y in value terms.

‘Add’ Godrej Agrovet with revised target price of Rs 575

With several states facing concerns of bird flu, we believe animal feed and poultry segments of Godrej Agrovet are likely to be impacted in near term.

Asahi India Glass rating: Buy; new import duties to help the company

Auto resilience positive too; FY21/22/23e earnings up 4/2/2%; TP revised to Rs 320

Domestic PV industry is witnessing stabilisation of demand and with the success of new products (SUVs), it is likely to aid product mix for AISG.

Cement: Expect Ebitda growth of 25% y-o-y in Q3

Seasonal price hikes a key trigger to watch out for; outperformance to continue; SRCM and UTCEM top picks

Average pan-India prices up 5% y-o-y in Dec’20 led by 18% y-o-y rise in South and 3-5% y-o-y increase in West, North and Central regions.

Balkrishna Industries rating: Buy, rebound in overall exports continues

Outlook for Ag exports is strong; best-in-class RoICs of >25% likely by FY23e with peak utilisation; ‘Buy’ retained with TP of Rs 1,969

‘Add’ Jubilant Life Sciences with revised TP of Rs 936

 The company had net debt of Rs 29.8bn as on Sep ‘20, of which ~Rs 22bn pertains to pharma business. We estimate consolidated revenue, Ebitda and PAT CAGRs of 6.6, 7.0 and 8.6% over FY20-FY23E, respectively. H1FY21 was imp

Analyst Corner: Auto fuel marketing margins to slip below Rs 1/L; Add on IOC

However, it would lead to large inventory gains, which would mean strong earnings growth for IOC even in Q3FY21E.

The oil price surge from end-Oct’20 lows has hit both GRMs and auto fuel net marketing margins (may fall to below Rs 1/l in Jan’21).

Bharat Forge Rating: Reduce-German order jolts progress on ESG front

Fine on 3 subsidiaries may make it more difficult to turn around loss-making entities, besides impacting ESG score; Reduce retained

Three German subsidiaries of Bharat Forge— Aluminiumtechnik GmbH, Bharat Forge CDP GmbH and Bharat Forge Global Holding GmbH—have been fined EUR32 mn on account of anti-competitive behaviour.

Initiate with ‘buy’ on NHPC; DCF-based TP of Rs 34

NHPC, the largest hydroelectric power generation company in India, has 7GW operational capacity split 98%/2% in favour of hydro/renewables, making it the largest ‘completely green’ power generating company in India.

Greenlam Industries Rating ‘Add’; market share in laminates will continue to rise

FY21/22e PAT up 6/4.7% given recovery in exports; TP raised to Rs 900; Add retained

Upgrade KVB stock to ‘buy’ on RoA recovery visibility

The same gives us comfort to lower our credit cost assumption for FY22E to 1.7% vs 2.2% in FY21E (still higher than the 10-year historical average of 1.4%). Bringing the culture of ‘ownership’. KVB will roll out new perfo

Power Finance Corporation Rating: buy New dividend norms to offer structural boost

PFC would be eligible to pay up to 25% of net profit; investment thesis remains intact; ‘Buy’ maintained

Power Finance Corporation

Heritage Foods rating: FY22 EPS likely to go up by 6.5%; ‘Buy’ retained with TP of Rs 400

FY22e EPS likely to go up by 6.5% due to the deal; ‘Buy’ retained with TP of Rs 400

Greenpanel Industries Rating: buy; demand revival boosts outlook for bottomline

Pricing tailwind to be an additional kicker; FY21/22e EPS up 58/24%; TP raised to Rs 155; ‘Buy’ retained

Analyst Corner: ‘Add’ Divi’s Laboratories with a TP of Rs 3,960

Strong positioning of Divis will help in monetising the growth opportunity in API and CRAMS space given its stellar execution track record and being one of the preferred suppliers.

Analyst Corner: Maintain ‘add’ on Hindustan Unilever with TP of Rs 2,400

Nestlé stock’s 43% out performance between Oct’18 – Sep’19 driven by volume growth-led valuation rerating, despite weak earnings, is a case in point.

Hindustan Unilever, HUL, HUL stock ourperformance, nestle stock outperformance, HUL earnings

UltraTech Cement Rating- Buy: Capacity expansion to increase market share

Mgmt expects IRR of 15% on new capacity; company likely to be debt-free by FY23e; ‘Buy’ retained with target price of Rs 5,725

Godrej Agrovet Rating – Add: Spike in palm oil prices boosts outlook

Every 5% rise in prices can raise EPS by c.2%; ‘Add’ retained with TP of Rs 560

For every 5% increase in palm oil prices, Godrej Agrovet’s earnings can increase by c.2%.

The Phoenix Mills Rating: buy Funds from potential deal may aid growth

Cap rate for GIC PE pact is attractive; consumption has picked up in Q3; ‘Buy’ retained with TP of Rs 804

Astral Poly Technik Rating: Add; Deal with SPPL can be very rewarding

FY22e PAT up 1.5%; given recent spurt, downgraded to ‘Add’ with TP up to Rs 1,530

Engineers India Rating: Buy- Q2FY21 showing was better than expected

Consultancy margins were strong; FY21/22e EPS up 10/9%; Numaligarh is an overhang; TP revised to Rs 97

The fertiliser plant, in which EIL had invested, is complete and will shortly commence operations; hence, we have factored in the same in our SoTP valuation.

Maintain ‘buy’ on NTPC as it ups its game in RE space

This bid win reaffirms NTPC’s competitiveness in the RE space amongst global peers, as it continues its journey to becoming a cleaner and greener company

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Balkrishna Industries Rating: Buy; Poised to gain from demand revival

Strong FCF generation of ~Rs 28 bn estimated over FY22/23e; TP raised to Rs 1,892

Spandana Sphoorty Rating: Buy- Strengthening of B/S in Q2 augurs well

Collection efficiency in Oct a surprise; geared up to deal with crisis; TP up to Rs 900

Collections in states like Maharashtra, Odisha and Chhattisgarh remained lower than the average due to lockdown and a few instances of political interference.
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