ICICI Securities

Articles By ICICI Securities

184 Articles

IndusInd Bank Rating | Buy — Third-quarter results represented a mixed bag

FY20e PAT cut by 16% to factor in higher provisions; RoA is expected to recover in FY21; ‘Buy’ maintained with TP revised to Rs 1,796.

indusind bank, bankingsector News

Analyst Corner: Reiterate ‘buy’ rating with Target Price of Rs 814 on Bandhan Bank

On the back of trimming our loan growth estimates, we fine-tune our target price downwards by 7% to Rs 814, representing a yet robust 56% upside, meriting a ‘buy’ rating on the stock.

The analyst call was a positive event (similar to Q2) yielding several new disclosures as well as the conservative provisioning policy of the management. News

Infosys Rating ‘Buy’: Performance broadly in line with estimates

Fundamental performance in Q3 was broadly in-line with 1% q-o-q revenue growth (CC), 20bps Ebit margin expansion and net-new deal intake normalising to a typical quarterly run rate of $580 mn from $280 mn in Q2.

Infosys stock price is still down ~10% since the whistleblower allegations came to light. News

Analyst Corner: Dabur likely to perform well in medium-term

Dabur has channelled its ad spend in driving higher growth in its eight power brands — media spends grew 20% for power brands vs 6% for overall domestic business.

Dabur remains our top pick in Staples along with Godrej Consumer. News

Birla Corp rating | Valuations do not capture performance

Greater share of premium products has ensured high realisations; ‘Buy’ retained

Current valuation of 7.5x EV/Ebitda on FY21e numbers make stock well placed for a meaningful upside. News

Analyst Corner: On ASTRA, maintain ‘hold’ with a Target Price of Rs 1,075

With growth momentum in pipes segment to continue and adhesives likely to start growing in double digits post Q3FY20, we expect ASTRA to report revenue and PAT CAGR of 20.8% and 43.8%, respectively, over FY19-FY21.

Analyst Corner, ASTRA, hold, Target Price, Astral Poly Technik, market news, CPVC  News

Analyst Corner: Building materials sector to stay under pressure in Q3

We estimate our building material coverage universe to report an aggregate revenue/Ebitda/PAT growth of 4.2%/13.8%/25% y-o-y, respectively, (ex-PIDI: 3.9%/9.1%/11.7% y-o-y), in Q3 with plumbing pipes likely to sustain their o

Analyst Corner, Building materials sector, market news, CAA protest, Plumbing pipe, CPVC pipe, Sanitaryware News

India bans import of desiccated coconut priced below Rs 150 per kg

The development assumes significance as the coconut product makers were demanding import duty on desiccated powder in the wake of rising imports from Sri Lanka.

India, ban, import, desiccated coconut, coconut price News

Analyst Corner: ‘Buy’ on Varroc Engg; target price at Rs 555

However, we believe VLS would require sustained investments in R&D and capacity if it strives to gain market share, which could inhibit peak RoCE.

Nevertheless, we find the current FCF yield attractive at ~5% on FY21E. News

Analyst Corner: Fair chance that banks cut deposit rates further

Loan growth for the system remains dull at 8.4% YoY as also YTD growth at 3%. Slower loans to services (NBFCs) and loans to medium industry are the culprits.

Analyst Corner, RBI, Financial Stability Report, NBFC, PSU banks, Bandhan Bank, SBI News

‘Buy’ Balkrishna Industries: Industry export growth a good augury

Demand recovery in store in CY20; ~19% EPS CAGR estimated over FY19-22; risk-reward is attractive; ‘Buy’ maintained

Balkrishna Industries, BIL earnings, Industry export growth, CAGR, stock trades, US-China trade tariff  News

Analyst Corner: ‘Reduce’ on Kajaria Ceramics, revise target price Rs 487

The basics are maintaining tight control on working capital; focusing on retail by expanding distribution & sustaining aggressive branding measures, and improving FCF aided by muted capex.

Analyst Corner, Kajaria Ceramics, PVT categories, FCF, real estate sector, liquidity constraints News

Analyst Corner: Recommend ‘buy’ on Zensar Tech, target price Rs 210

Zensar, part of the RPG group of companies, provides application development, digital and cloud infrastructure services.

Markets News

Century Plyboards: Maintain ‘buy’, TP at Rs 220

Its recent foray and success in the MDF segment (despite facing over-supply headwinds in the industry) reaffirms its execution skills.

Plywood margin, too, is likely to improve led by lower sourcing cost of CVs from Gabon. News

Hexaware Tech ratings | Buy — Growth story remains intact for company

Dire client issues to be resolved by Q4; valuations very attractive; ‘Buy’ retained.

Markets News

Stock corner: ‘Buy’ on Mindtree, TP Rs 890, margin improvement key

Deal intake is expected to be on the weaker side in Q3FY20 and potentially decline YoY as some deals get deferred to Jan’20, but visibility on these deals eventually closing is very high.

mindtree, mindtree stocks News

Realty stocks: Expect consolidation to accelerate in CY20

The Indian real estate sector has undergone multiple rounds of disruption over CY17-19, beginning with the demonetisation impact, followed by RERA and GST implementation, change in accounting to project completion under IND-A

Realty stocks,BSE Realty Index,BSE , market news, NBFC funding, NBFC funding crisis, nbfc, DLF News

Consumer staples: Price cuts can be next growth driver

We see these brands are likely to be a new premiumisation trigger for HUL, similar to Rs 10 SKU of Surf Excel in detergents.

Consumer staples, HUL, Surf Excel, Lux SKU, HUL in soaps brands, Lifebuoy, HUL advertising campaigns News

Stock corner: Maintain ‘reduce’ on DRL, target price Rs 2,544/share

Generic Revlimid, Copaxone, Nuvaring and Suboxone are the key high-value product opportunities for DRL

Dr Reddy’s Laboratories, Dr Reddy’s Laboratories stock price, DRL, EBITDA margin, CAGR, Generic Revlimid, Copaxone News

Stock corner: ACC likely to maintain market share, target price at Rs 1,843

We maintain our CY19-CY21E estimates with an unchanged target price of Rs 1,843 per share based on 11x Mar’21E EV/E.

acc, acc stocks, stock markets News

Stock corner: Initiate with ‘Buy’ with target price of Rs 650 for UPL

Considering that farmers use agrochemicals throughout each agri season but pay only after harvest, the working capital of suppliers is elongated leading to lower asset turns.

UPL has emerged a global player post its acquisition of Arysta Lifescience Inc. (Website image) News

Stock corner: ‘Hold’ on HUL, confident on long-term growth potential

E-com to be next growth driver for Indian FMCG: Rising middle class population, lack of strong distribution network in smaller cities/villages and significantly overcrowded condition of cities is resulting in the ever-increas

Stock corner, Hold, HUL, market news, FMCG News

Stock corner: ‘Buy’ on Aurobindo Pharma with revised TP of Rs 682

US revenues grew 4.4% QoQ in constant currency terms with pick-up in injectables portfolio.

Markets News

Stock corner: Upgrade Godrej Consumer to ‘add’, target price Rs 800

We believe that a potential turnaround here will require huge macro tailwinds and improvement in execution (just relaunched Darling brand and plans to introduce affordable products).

Stock corner, Godrej Consumer, Household Insecticides, EBITDA, India household Insecticides business News

Stock corner: ‘Hold’ on Indian Oil Corp; target price at Rs 149

Q2FY20 standalone and consolidated EPS is down 83-93% YoY hit by inventory loss of Rs 11.8 bn compared to a gain of Rs 44.1 bn last year, 50% YoY fall in petrochemical Ebitda and 81% YoY fall in GRM to $1.28/bbl.

Stock corner, Indian Oil Corporation, Indian Oil Corporation target price, Ebitda, GRM outlook News

Stock corner: Maintain ‘buy’ on Coal India with target price of Rs 333

CIL is looking to introduce VRS to reduce manpower expenses, especially in the underground mines which contribute 13% to the total production but employ 50% of the total workforce.

Markets News

ICICI Securities: Upgrade Oberoi Realty to ‘buy’, target price Rs 577

After a lull in launch activity in H1FY20, Oberoi Realty (OBER) has a number of launches lined up to coincide with the festive season in Q3FY20.

OBER has recently launched its Maxima tower at the JVLR, Andheri project (180 units priced between Rs 3.5-4 crore) in the first week of October 2019 and is on track to launch its Goregaon Phase 3 and Thane projects in Q3FY20. News
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