Articles By Jefferies

541 Articles

Havells rating: Buy; Structural growth story by aided market share

Industry participants are alluding to an existing inventory stock, which could clear once demand resumes (strong summer in India).

Havells' key moat is a diversified product mix with market leadership across most categories (Exh 2,3).

Equity Strategy: Lockdown waivers, IMD offer relief

But states, companies may be slow to resume activity; forecast of normal rainfall augurs well for inflation

Computer Services & IT Consulting Q4 preview: Covid-19 effect on results to be limited

It will dominate discussions though; sharply lower and wider range guidance for FY21/Q1 is expected.

Analyst Corner: Pharmaceuticals sector – FDA delays remain a key uncertainty after logistics

While production is on, logistics is the key challenge both for raw material and finished goods. FDA delays remain a key uncertainty after logistics.

Coronavirus crisis to impact FY21e revenues by 5.5-7.5%

Infosys & TCS remain our preferred picks as we expect better earnings & multiple defence given high quality franchise.

Analyst Corner: IT services and consulting firms face COVID-19 impact

With Covid-19 situation escalating, Indian IT services cos could be impacted in multiple ways in the near-term, cuts in client spend, travel restrictions, closures of offices, INR depreciation.

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Infosys, TechM led $500mn+ deals in FY20: Digital, ERS capabilities key driver of acquisition

There have been a greater number of smaller deals (<$25 mn) than in the past. We estimate inorganic contribution to FY21e revenue to be 2%/ 1.7%/0.7% for TechM/HCL Tech/Infosys.

Analysis: TechMahindra ahead of Infy, Wipro in growth, margin deviations

Two metrics in particular are key: (1) q-o-q growth (US dollar or constant currency) and (2) Ebit margin.

India’s GDP numbers: Power demand growth a silver lining

With most other indicators still weak, earnings outlook is challenging; cause for caution

With valuations also rich, we stay defensive, therefore, with a bias for large-caps and Financials.

India’s domestic natural gas prices set to nearly halve to 10-year lows of $2

SOE E&Ps will suffer while IGL, MGL and GAIL stand to gain; may see govt fixing APM price framework

Sharply lower EU prices on softer LNG are largely to blame but prices are subdued in gas surplus US, Canada & Russia too.

Analyst Corner: ‘Hold’ on BPCL; keep faith in refining turnaround

Volume performance was mixed too, with share in LPG & ATF up and petrol steady but diesel down ~60bps q/q that management indicated has since reversed in Jan as discounts by competitors have ebbed.

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Analyst Corner: ‘Hold’ on Apollo Hospitals Enterprise; PT at Rs 1,575

AHLL also reported strong growth. We expect growth to moderate and margin improvement to be limited from current levels.

Sun Pharma Rating ‘buy’: Q3 results were in line with expectations

India revenue growth of 13% key positive; adjusting for Q3 and lower Taro sales, FY20/21/22e EPS down 4/7/1%; ‘Buy’ maintained

Bharti Airtel rating: Hold — A strong quarter for the company

FY20/21/22e Ebitda up 5/9/9% to factor in results and higher-than-expected price rise; TP revised to Rs 468; ‘Hold’ maintained

Bharti Airtel, Bharti Airtel rating, Mobile ARPU, Ebitda, Africa business, Bharti Airtel market share

State Bank of India Rating: Buy; Results were largely in line with estimates

FY20e EPS up 12% to factor in recovery from IBC account; valuations are attractive; ‘Buy’ retained

Analyst Corner: Retain ‘buy’ on JLR with target price of Rs 220

Standalone performance remained weak with CV margins additionally impacted by `2.4 billion one-off related to prior periods.

jlr, jlr ebit

Havells India Rating | Buy — Weak showing by company in third quarter

Almost 70% of HAVL’s biz mix is B2C and the remainder B2B. Weak macros, liquidity challenges and slowdown in infra segment sharply impacted demand for industrial cables and switchgears as well as professional lighting.

Havells India Rating ‘buy’: Weak showing by company in third quarter

FY20-22e EPS cut by 3% due to macro scenario; TP revised to Rs 850; ‘Buy’ maintained

Tata Consultancy Services Rating ‘buy’: Revenue miss but margin was a surprise

TP up to Rs 2,500; Q4FY20 is expected to be soft; ‘Buy’ retained as company is likely to outperform peers in medium term

Tata Consultancy Services, TCS, TCS shares, Tata Consultancy Services shares

Analyst Corner: Liability profile for Axis Bank remains strong

NIM came at 3.57%, 6 bps higher sequentially. While improving spread led to 6 bps of positive delta qoq, impact of higher slippages (~7 bps) was offset by margin benefit from capital raise (~7 bps).

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Divergent wholesale trends observed in auto sector during December

PV growth in December remained flattish, similar to Q3 when better festive demand, traction in new launches and relatively lower inventory levels have helped.

automobile industry saw these Big incidents and changes in 2019, new safety norms, more electric vehicles, fame 2, BS VI

Building materials: RE growth to impact fly ash availability

Companies with higher share of PPC in sales mix and greater exposure to North region will be affected

Building materials, RE growth, renewable power, ACEM, renewable capacity addition, cement sector, CAGR

Clinker pipeline lags grinding capacity plans

Over FY20-23e, industry is expected to add ~68mtpa grinding capacity and ~30mtpa clinker capacity.

Stock corner: ‘Buy’ on Sun Pharma, 1 Halol observation could have impact

Response to USFDA will be vital; specialty business, with positive outlook, key to earnings; risk reward is favourable; ‘Buy’ retained.

Stock corner: ‘Hold’ on Finolex Cables, revised price target Rs 400

FNXC's cables & wires applications range from domestic, industrial (Electrical) to transmission of content, voice & data (Communication).

Analyst corner | JK top pick in cement cos as upcycle may kick in regions

We estimate clinker utilisation there to improve from ~82% in FY19 to 84% and 91% respectively by FY22E against all-India clinker utilisation of 80%.

Q2FY20 review of Banks: Operating metrics improved further

Net stress reduction was a highlight; core profitability went up; Axis, ICICI, SBI and HDFC Bank are top picks

Pvt banks continued to gain market share in loans & deposits.
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