Articles By IIFL

46 Articles

Analyst Corner: Marginal pickup in demand from Q2 level likely in Paints

We expect double-digit decorative volume growth in Q3 and marginal recovery in PIDI’s volumes (2% in Consumer Bazaar vs 1% decline in Q2). APNT should see strongest sales growth (8%), followed by BRGR (6.5%), while KNPL sal

Paint maker, paint market, enamel, market news, 

Stock corner: Recommend ‘reduce’ on United Spirits’ but hopeful of festive recovery

United Spirits intends to focus on profitable growth and will consider next steps to counter price cuts taken by Pernod in Maharashtra.

United Spirits remains hopeful of pick-up in the festive season.

Analyst Corner: ‘Buy’ on Credit Access Grameen, target price Rs 514

CreditAccess Grameen (CAGL) is a leading Indian microfinance institution.

cash, economy

Hotel sector: Why demand revival is likely to boost revenues

The industry is likely to have bottomed out the downward cycle; being at an inflection point, it is a re-rating candidate.

hotel, hotel industry

Nestle India rating ‘Buy’: IIFL says volume growth makes a return

Focus on growth paid off with CY17 domestic volumes up ~8%, highest in 7 years; expect sales/EPS CAGR of 12/19% over CY17-20

Nestle India rating, IIFL, GST, FCF, maggi, KitKat, PayTM, google search

Why availability of coal at plants has been hit, IIFL explains

Importantly, the number of plants with critical-level coal stock has zoomed to 28 as of Mar-2018, with distant plants in western and northern India witnessing greater shortage.

coal india, coal india growth, coal supply, power plants

Yes Bank likely to see long term trends remain intact

In the medium term, YES will likely report contained slippages, sharply reduced diver gencein the next RBI supervision and improved risk adjusted returns.

YES bank, Yes bank stock, YES loan growth

Voltas to gain from early onset of summer season

We met the management of Voltas on Thursday at IIFL’s Investor conference in Mumbai. The company expects 12-15% volume CAGR for the room AC industry over next five years.

Voltas, Mumbai, IIFL Investor conference,  CAGR, Qatar,  Voltas Becko brand

Maintain ‘buy’ on Himadri Speciality with target price of Rs 240

We project a 40% EPS CAGR over FY18-20, driven by steady growth in the company's base business, in which Himadri enjoys a strong competitive position, and rapid ramp-up in high-margin new products, advanced carbon material an

Himadri Speciality, target price, Himadri Speciality target price, carbon material, carbon black

Rallis India earnings miss estimates on low-margins

We trim FY18/19ii EPS by 1%/5% to Rs 9.1/10.9 while leaving FY20ii EPS at Rs 14.3 post the Q3 FY18 earnings miss.

rallis, rallis india earnings, low margins, earning miss, farm economy, ebitda

Atul among top ten buys; valuations reasonable

Atul is one of IIFL’s top ten mid-cap buy ideas for 2018. We expect Atul to report attractive earnings growth from 3QFY18 onwards, supported by a low base effect, operating leverage due to improving utilisation of newly-com

iifl, atul market situation, atul ipo earning

Cox & Kings: Leisure travel business offers steady earnings growth

The recent change of hands in the minority stake in Holidaybreak (HBR) sets a benchmark EV of c.£600 million for HBR, and implies a significantly higher EV/Ebitda multiple (c13x FY18ii) for HBR than we ascribe (10x) in our S

Cox & Kings, Leisure travel business, travel business, steady earnings growth, steady earnings, earnings growth, Holiday break

DMart Q2 sales growth below estimates, says IIFL, rates it as Reduce with Rs 1000 TP

Avenue Supermart Ltd (D-Mart) is an emerging supermarket chain with a presence in 45 cities across India. It’s major presence is in the states of Maharashtra, Gujarat, Telangana and Karnataka.

DMart, sales growth, IIFL

HPCL is top IIFL pick even as it maintains Buy rating on all 3 OMCs

We upgrade FY18-19ii EPS for OMCs by 10-25% on the back of: 1) firm GRMs; 2) sustained product sales; and 3) strong outlook for marketing margins. OMCs trade inexpensively, offering earnings yield of 10-11% and dividend yield


Weak demand post GST rollout to hit retail sales growth, says IIFL

We expect sales growth to moderate in 2QFY18 across retail companies, given weak demand post GST implementation. Healthy growth in September makes players optimistic on 3Q performance.

sale growth, sales growth post gst, post gst sales growth

PI’s diversification into fine chemicals will yield results

PI’s FY17 annual report reveals that the company generated improved free cash flow for the year, driven mainly by lower capex.

PI, PI annual report, PI capex, PI chemicals, pi cash flow

IIFL tags CESC stock as Buy, says outlook upbeat even after demerger

CESC is on track to demerge its businesses into four verticals – generation, distribution, retail, and other investments.


Third-party valuation is desirable in HPCL stake deal

We think that to transfer its 51% stake in HPCL to ONGC, Government of India (GoI) may have to well rely on third-party valuation rather than prevailing market capitalisation alone.

HPCL, HPCL stake deal, HPCL stakes, ONGC, HPCL-ONGC mrger

India steel: Supply likely to exceed domestic demand

Following strong 8.5% y-o-y (7.6 million tonne volume) growth in Indian crude steel production in FY17, we would focus more on sluggish domestic steel demand, since this would determine further volume/price growth over FY17-2

steel, india steel, steel industry india, steel domestic demand, steel demand

2017: Motherson Sumi turns IIFL’s top 5 large cap ‘Buy’ idea

Motherson Sumi (MSSL) is one of IIFL’s Top 5 large- cap Buy ideas for 2017. MSSL’s India revenue will outpace industry volume growth led by increasing electronic content per car and new order wins.

Stocks in focus today - brexit worries

IIFL cuts by 3 per cent aviation volume growth assumption

The domestic air travel industry has grown at around 20% since mid-CY2014. However, this coincided with a significant increase in supply; hence, pricing was under pressure.

IIFL cuts by 3 per cent aviation volume growth assumption

Idea Cellular gets ‘Buy’ rating even as stock nears lifetime trough

Idea will cover 94% of its revenue footprint with 4G by end-FY17 or mid-FY18. JIO accelerating adoption of VoLTE will give the top four an edge over smaller players that cannot offer data or VoLTE, and will help eliminate sub

Idea Cellular gets ‘Buy’ rating even as stock nears lifetime trough

Estimate healthy cash generation to continue for AIA Engineering

Increasing preference for high chrome cast grinding media in the global mining sector augurs well for AIA Engineering to achieve volume growth, now that foundry capacity is in place.

Estimate healthy cash generation to continue for AIA Engineering

Shoppers Stop optimistic of reaching Ebitda breakeven in Q3

Post our interaction with Shoppers Stop (SHOP) management, we expect 3% SSS growth in the key Shoppers Stop format in Q2 (vs. 5.5% in 1Q) despite a favourable base.

Shoppers Stop optimistic of reaching Ebitda breakeven in Q3

IIFL: Initiate Godrej Industries with ‘Buy’; target price Rs 505

Godrej Industries (GIL), whose market cap has compounded at a 34% CAGR since the spin-off of its soaps business in 2001, is well placed for rapid earnings growth.

IIFL: Initiate Godrej Industries with ‘Buy’; target price Rs 505

IIFL rates ITC as ‘Add’ with target price of Rs 270

ITC’s FCF as a percentage of net profit has increased to 86% in FY16 vs. 50% in FY14. However, this is the peak, as capex picks up and working capital normalises in future.

IIFL rates ITC as ‘Add’ with target price of Rs 270

Maintain ‘Buy’ on JSW Energy: IIFL

JSW Energy (JSWE) has successfully consummated the acquisition of two hydro assets of Jaiprakash Power Ventures Limited (JPVL) and it is on track to pursue its inorganic growth aspirations.

Maintain ‘Buy’ on JSW Energy: IIFL
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