Articles By Jefferies

547 Articles

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.

ONGC stock: Retain ‘buy’ with lowest target price of Rs 170

Production performance, although preannounced, remains tepid, however, with domestic gas production now 10% off the late 2018 peaks and oil production languishing near 30-year lows.

ONGC stock, ONGC share, ONGC news, ONGC videsh, HPCL, MRPL, OPAL, OMPL, ongc buy, ongc target price, market news

Stock corner: ‘Buy’ Hindalco with target price of Rs 153

Hindalco’s Q2 India Ebitda fell 1% q-o-q as expected, but Group Ebitda rose 5% q-o-q due to strong Novelis Ebitda.

Stock corner: ‘Hold’ Nestle India, a mixed performance in the quarter

Focus on volumes and launches will limit margin expansion; ‘Hold’ retained given stretched valuations and the earnings outlook.

Stock corner: ‘Buy’ HDFC, results reflected a modest showing

FY20-22e EPS up 5-9% due to corporate tax cut; near-term could be somewhat patchy; TP revised to Rs. 2,510.

Maintain ‘buy’ on UPL with price target of Rs 745

UPL mgmt is confident of achieving FY20e outlook at 8-10% sales, 16-20% EBITDA growth and debt reduction of Rs 3,150-3,500 crore.

UPL, UPL PPA, EBITDA, UPL mgmt, UPL consolidated gross, APAT

Analyst corner: Tech Mahindra management aims to revert to 15% EBIT margin

Tech Mahindra's 2Q results were well ahead of our estimate as both revenue growth (4.1% Q-o-Q cc vs expectation of 2%) and EBIT margin (12.8% vs estimate of 12%) surprised positively.

Analyst corner, Tech Mahindra, EBIT margin, Tech Mahindra revenue growth, Tech Mahindra 2Q results

Analyst corner: Strong Q2 by JLR; Tata Sons to infuse Rs 6,500 crore

While we expected losses in the standalone business given sharp 45% y-o-y decline in overall volumes and 59% decline in MHCVs, losses were higher than expected partly due to Rs 230-crore write-off related to PV business in ot

Tata Sons plans to infuse Rs 6,500 crore of equity into Tata Motors, which should support the balance sheet, given rising leverage.

Stock corner: ‘Hold’ HCL Technologies, results were largely in line with estimates

HCL Tech's revenue growth of 6% q-o-q cc was lower than our estimate of 7.1% due to lower revenue recognition from IBM acquisition due to accounting factors.

HCL Tech’s Q2 revenue growth of 6% q-o-q cc was below our estimate of 7.2% on account of lower revenue recognition from IBM product acquisition of $100 mn

Stock corner: ‘Buy’ on HDFC Bank, strong fee income key earnings driver

We cut EPS by 1.3% for FY20 while largely maintaining our FY 21/22 estimate, trimming margins slightly while building a stronger fee income growth. Build in 25% EPS CAGR and 16% BVPS CAGR over FY19-22. The decline in PT refle

Analyst corner: Jio stable, remain cautious on Airtel, Vodafone Idea

We expect competitive intensity to remain high for the postpaid/enterprise/home segment. We remain cautious on both Bharti and Voda-Idea.

Stock corner: Retain ‘buy’ on LIC Housing Finance, cut EPS by 4%

Mix of non salaried HL (100 bps q-o-q) has edged higher, suggesting LICHF may be eyeing this segment to lift core HL growth by taking share from peers facing liquidity issues, protect yields and offset impact of fall in LAP/d

Stock corner, buy, LIC Housing Finance, EPS, GNPA, LIC,  LIC Housing Finance limited,  LIC Housing Finance fd,  LIC Housing Finance ltd

Stock corner: ‘Buy’ SBI Life, a strong quarter for the company

New business for Q2 grew 34% y-o-y, driven by non-par savings (+800% y-o-y), protection (+32%). Par-savings business was down 35% y-o-y, as the focus of SBI shifted to cross-selling protection, return-guarantee & annuities.

life insurance, add ons, critical illness, waiver of premium, term plan, accidental benefit, IRDAI , unit-linked life insurance products ULIPs, lapsed policy, Partial withdrawal, pension plans, surrender value

Avenue Supermarts Rating | Hold — A largely steady showing in the quarter

DMART continues to execute strongly in discount grocery retailing with cost leadership helped by strong efficiencies. We continue to expect a higher new store opening trajectory ahead and margins to remain range-bound with up

DMART, Avenue Supermarts, Rating, market news, Balance sheet, subsidiary, Target Price

Stock corner: ‘Buy’ Infosys, results were largely in line with estimates

Infosys also declared an interim dividend of `8/share with management indicating that dividend could be preferred over buy-backs going forward post introduction of taxes on the latter.

Infosys second quater earning, Infosys share, Infosys stocks, Infosys trade, Infosys net profit, Infosys earning

Jefferies: Vaccine, dental, urology drive pharma growth

Indian pharma growth improved to 11.9% in September vs August: 9.5% as volume growth improved to c.3.5%. 2Q20 growth at 11% is the highest in past three years.

Reliance Jio offer shows its focus on subscriber addition

Sustainable price hikes to occur only once it crosses 40% market share in FY21; Vodafone Idea slip to continue.

With Reliance Jio becoming the largest operator, price hike is a possibility

Sharp cuts in FY20e EPS likely for most OEMs

Extent of cuts and ask rate for FY21e will be a surprise; MSIL downgraded to ‘Hold’; ‘Buy’ retained on M&M

FY20e EPS, auto OEM, Maruti, MHCV, petrol PV, BS-6 impact, M&M

Dewan Housing: What does its resolution plan imply?

Banks/AMCs have taken 30-50% MTM hit on bonds, so incremental provisioning needs should be small, but NPL provisions will come later.

Dewan Housing, NPL provisions, Retail loans, SRA loans, cash flows, NHB refinance 

EPS boost from tax cut has been priced in

The key from here will be the second-order impact of tax cuts on investment, demand and the economic cycle. Higher hopes for FY21e could support valuations, despite near-term (FY20e) earnings cuts. MSIL and MM remain our pref

Havells India Rating: Buy; medium-term triggers remain robust

Demand weakness and tight liquidity warrant near-term caution; EPS for FY20/21/22e down 6/4/3%; TP cut to Rs 790

While HAVL’s medium-term triggers remain robust, the current demand weakness and tight liquidity warrants near-term caution.

Jeffries: Maintain ‘hold’on Eicher on volume, margin uncertainty

In this cycle, Bajaj started the trend with the launch of Pulsar Neon which was also priced at a significant discount to its standard variant.

Jeffries, Eicher, Royal Enfield, Classic S, Bullet X, Pulsar Neon, market news
Income Tax Calculator, Budget 2019, How to Calculate Income Tax


Stock Market