ICICI Securities

Mindtree: Expect revenues to rise by 10.4% in FY20

Strong order intake of $324 million reflecting a book-to-bill ratio of 1.23x should drive pick-up in revenue growth from Q2 with Mindtree now expecting to grow faster than industry average in FY20 vs earlier guidance for grow

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Bajaj Consumer: Retain ‘buy’ with TP unchanged at Rs 400

Wholesale channel witnessed a sharper sequential slowdown. BaCo did no business in the Canteen Stores Department due to procedural issues in the channel.

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Astral Poly Rating | Hold — Making hay while the sun shines

Growth in the adhesive segment is likely to be back-ended in FY20 due to the shift currently happening from a stockist model to a distribution-led model.

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Analyst corner: Barring JSPL, steel players may see big volume decline

Volume performance of JSPL remains strong with an 18% YoY increase while Tata/JSWS witness 0/(2)% moves.

Hindalco Aluminium volumes were flat YoY, yet drop in LME prices and decline in copper volumes due to shutdown tangibly impacted standalone operations. (Representational image) News

Stock corner: ‘Add’ on Torrent Power, target price raised to Rs 327

UNOSUGEN, the brownfield expansion of the SUGEN plant, had signed up 278MW of its 382.5MW capacity with Distribution License (TPL-D) and the tariff on the same had been approved by CERC on a cost plus 15.5% RoE basis.

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Stock corner: ‘Buy’ Kaveri seed company, monsoon deficit is likely to impact growth

Though near term earnings of Kaveri are under pressure, we remain positive on the company as the stock is at an attractive price given that valuations are near Mean P/E-1 SD.

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Agriculture crisis: Kharif sowing suffers 12.5% fall

Rural inflation<rural wage growth: We note the monthly spread between rural inflation and rural wages is expanding, indicating higher ‘real’ income growth.

Agriculture crisis, Kharif, Kharif crop, Kharif sowing, Primary sales, fertilisers News

Analyst corner | Maintain ‘add’ on Cholamandalam with target price of Rs 305

There is a behavioural shift in the buying behaviour of customers. New vehicles are now typically sold in the fourth/fifth year compared with sixth year earlier.

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Microfinance companies expand reach; Bengal, Tamil Nadu most penetrated

West Bengal, TN are most penetrated; Bandhan and CreditAccess offer good prospects.

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Jubilant Foodworks: ‘Buy’ with target price of Rs 1,600

JUBI has introduced the new store for-mat at three stores in Bengaluru

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Tata Steel: ‘Sell’ with target price of Rs 411 per share

Tata Steel has entered into a long-term build-own-operate (BOO) agreement with Aarti Green Tech Limited.

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Analyst corner | Core inflation expected to stay low for next 3-4 months

Out of the 65bps sequential rise in food inflation in May ‘19, vegetables, pu-lses and sugar contributed 34bps, 15 bps and 5 bps respectively.

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Container Corporation rating | Hold — Plans to boost volumes hold promise

Timing of capex’s impact on earnings is uncertain; FY21e EPS up 1.7%; ‘Hold’ maintained with TP raised to Rs 538 from Rs 469.

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Analyst corner | Upgrade to ‘buy’ on Cadila Healthcare with target price of Rs 282

We upgrade Cadila Healthcare (Cadila) to BUY from Add considering attractive valuations (14.1xFY21E) after recent correction in the stock price.

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Analyst corner | Upgrade Cadila to ‘buy’, revised target price Rs 282

We upgrade Cadila Healthcare (Cadila) to BUY from Add considering attractive valuations (14.1xFY21E) after recent correction in the stock price.

Markets News

Market Watch: Downgrade AU SFB to ‘add’, target price Rs 780

AU Small Finance Bank (AU) has displayed excellent execution capabilities while migrating to the SFB platform from the NBFC model.

Post the conversion into SFB, AU has constantly worked on smoothening the overall business process and using technology to the maximum extent possible to improve productivity. (Website image) News

‘Hold’ on Akzo Nobel India with TP of Rs 1,730, suggest market analysts

With an eye on profitability, Akzo aims at innovation and increase in distributor-based network to gain market share over the next few years. Maintain ‘Hold’.

Akzo’s strategy is to achieve profitable volume growth rather than chasing higher volumes. News

Stock corner: ‘Add’ Cadila shares, Q4 results in line with estimates

Cadila Healthcare’s (Cadila) reported Q4FY19 performance was broadly in line with our estimates, led by continued momentum in US sales. But the India business was muted with lower industry growth and restructuring exercise

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Godrej Indus Ratings | Buy — Nature’s Basket sale likely to be value-accretive

Stock trading at discount of 49% to value of subsidiaries; ‘Buy’ stays with TP of Rs 776.

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Stock corner: ‘Add’ City Union Bank at unchanged target price of Rs 210 – ICICI securities

Management also clarified that it would continue with its strategy of tapping the small-ticket self-employed segment.

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Long road to redemption for Yes Bank; check share price target

Unless investors wish to give a significantly higher multiple for a long-term RoE potential (over 5 years), we expect the stock to see a suppressed multiple range of  ~1-1.5x in the interim, leading to our TP of Rs 197, impl

RBI slaps Rs 11 lakh fine on Yes Bank for violating money transfer norms News

Banking: Performance likely to see all-round improvement

While loan growth is seeing a healthy pick-up for both private banks and SBI, the latter is likely to see greater traction in margin improvement given comfortable funding costs.

RBI Rate Cut effect: SBI announces to cut lending rates from 1st may 2019 News

SRF Ltd Ratings| Add — Order on Dahej facility could impact first quarter

Dahej is SRF’s most important facility as it contributes a majority of its chemical business revenue, which was expected to report strong growth after two years of tepid performance.

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Kaveri Seeds: Growth story intact in long term; TP Rs 598

We note that Kaveri has launched multiple variants of rice (selection+hybrid) and maize seeds. The firm is also investing in development of vegetable seeds.

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Stock corner: Buy Jubilant Foodworks, venture has promise

Maintain Buy on JUBI with DCF-based TP of `1,650. At our TP, the stock will trade at 46x P/E multiple Sep-20e. Key downside risk includes pressure on margins from aggressive new store expansion.

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‘Buy’ Kalpataru power & transmission, Nordic deal is likely to boost prospects

Swedish buy will not affect debt position; ‘Buy’ maintained with revised TP of Rs 547

‘Buy’ Kalpataru power & transmission, Nordic deal is likely to boost prospects

Stock corner: ‘Hold’ Akzo Nobel India, valuation is lowest among peers

Company plans to use global technology for profitability; valuation is lowest among peers; ‘Hold’ maintained

Stock corner: ‘Hold’ Akzo Nobel India, valuation is lowest among peers