Kotak Institutional Equities

Articles By Kotak Institutional Equities

376 Articles

Analyst Corner: Retain ‘sell’ on ICICI Lombard with fair value of Rs 825

Loss ratio in the motor OD segment continues to drag its earnings although the recent q-o-q reduction may be an early sign of improvement.

icici, icici lombard News

Analyst corner: Lower battery costs likely to woo e-scooter buyers for Bajaj Auto

Bajaj e-scooter’s premium variant is priced at Rs 1.2 lakh (ex-showroom) whereas Ather S450 is priced at Rs 1.1 lakh (ex-showroom).

escooter, bajaj News

Consumer staples preview: Slowdown is intact, without getting worse

There is slowdown for select rural-centric players but higher-urban-salience companies are likely to more than pick up the slack

On the margin front, we expect paint companies to report strong margin uptick. News

P&G India: Growth focus took a toll on FY19 margins

Combined entity’s revenue grew ahead of HUVR; focus on topline to persist

P&G India, P&G Home Products, Gillette India, HUVR, Ebitda, CAGR News

Oil and gas outlook remains muted in the near term

Overall proposed cuts will imply only 0.5 mn b/d of reduction in oil production from the levels achieved in November 2019, as Saudi Arabia had partly reduced production below its earlier committed levels in recent months.

Markets News

Cement on sliding track; sell on UTCEM, SRCM

Cement demand was down 1% YTD till October and we do not see signs of demand recovery in 2HFY20E against market expectations of 5-6% growth.

Markets News

Insurance: General players enjoy a good November

Motor segment reported 6% y-o-y premium growth in November 2019, moderating from the 15-20% growth seen in the last two months.

Industry News

Loan waiver: Impact on PSBs greater than private banks

While exact criteria is awaited, the government indicated that the scheme would be applicable to loans availed between 2015 and 2QFY20.

banks News

Growth in motor insurance business remains moderate

Overall growth in health premium was robust at 28% y-o-y, compared to YTD run-rate of 17%.

insurance, motor insurance News

Stock corner: Upgrade Thermax to ‘buy’; FV unchanged at Rs 1,150

TMX has recently inaugurated its manufacturing incubation centre, has added key business references in south-east Asia, and continues to launch new offerings while engaging with stakeholders through customer and vendor connec

Markets News

Stock corner: Retain ‘add’ on IndusInd Bank, revised FV Rs 1,625

The analyst meet showcased a new BHAFIN (Bharat Money) that has, in a relatively short period post acquisition, built a host of products that is ready to be rolled out on a massive scale with technology at its core.

Markets News

Stock corner: ‘Add’ L&T Infotech, company’s primed for higher growth

Uncertain outcome of ICE visit is an overhang; ‘Add’ maintained with TP of Rs. 1,750.

Markets News

Stock corner: ‘Add’ on HDFC Life Insurance, tech-based initiatives to provide edge

Execution is likely to ensure superior profitability; company remains industry bellwether; ‘Add’ retained.

Markets News

Stock corner: Ongoing trial could push back launch; ‘Sell’ on Biocon

Post Fulphila and Ogviri launches in the US, the next key launch for MYL/BIOS is Semglee (biosimilar insulin glargine), which we expect to be triggered in 1HFY21 post expiry of the 30-month stay.

Stock corner, push back, launch,Sell Biocon, market news  News

Life insurance: Private insurers’ premium collections up 27%

Private players reported 29% y-o-y growth in overall APE in November 2019, with 27% growth in individual APE and 53% y-o-y growth in group business. Overall industry APE was high at 67% y-o-y owing to 1X y-o-y rise in individ

Life insurance, Private insurer, premium collection, Insruance, APE, ICICI Life, HDFC Life, SBI Life, Max Life News

Stock corner: Maintain ‘Buy’ on Tata Motors and fair valur of Rs 200

JLR gained 20 bps market share y-o-y in the US luxury car market segment at 6.5% y-o-y in 9MCY19 led by strong demand for Discovery, Range Rover Sport and Evoque. JLR has improved its market share from 7.8% in CY2018 to 8.2%

Stock corner, Buy, Tata Motors, Tata Motors share, Tata Motors share price News

Analyst corner: Oil, gas, consumable foods see moderate improvement

We expect RIL to benefit from its nil fuel oil yield and ability to process heavy sour crudes and HPCL to be negatively impacted given its high fuel oil yield.

Analyst corner, India refining margins, sulfur fuel oil, Dubai crude oil prices, fuel oil yield, Kotak India News

Gap between outstanding lending rates and fresh loans rises in August

The gap between outstanding and fresh lending rates was up 10 bps m-o-m in August 2019 to 75 bps. The gap has been broadly in the range of 50-70 bps since July 2018.

Equities, Real Estate, property prices, unfinished projects, EMIs, rent, housing loans News

Stock corner: Maintain ‘sell’ on Yes Bank, fair value unchanged at Rs 55

Yes Bank surprised positively on Thursday with an announcement that it has received a binding bid from an investor committing US$1.2 bn.

yes bank, banking sector News

Stock corner: ‘Reduce’ Hindustan Zinc, results were in line with expectations

FY20-22e EPS cut by 7-4% due to lower volumes and higher costs; TP revised to Rs 205; ‘Reduce’ retained due to dear valuations.

zinc, hindustan zinc News

Third-party motor insurance drives up growth in premiums of general insurers

Most large players were strong on ex-crop basis—ICICI Lombard was up 17% (overall premium down 23%), Bajaj up 24% (overall premium up 1.4X) and SBI GI up 51% y-o-y (overall premium up 88%).

Third party, motor insurance, drive up, growth, premium, general insurer, money, General insurance, traffic fine, health insurance, fire insurance, ICICI Lombard, SBI, Bajaj, HDFC, health premium News

Life insurance: Private sector individual APE growth slows down in Sept

Private sector players reported 3% y-o-y growth in overall APE in September 2019, with 3% growth in individual APE.

life insurance, IRDAI , unit-linked life insurance products ULIPs, lapsed policy, Partial withdrawal, pension plans, surrender value News

Aurobindo Pharma: Stock has factored in import alert

Assuming worst-case scenario, ARBP announced that the USFDA issued a form-483 for its Unit-VII, its largest orals facility for the US, though, increasingly less relevant for future pipeline/filings, particularly, post Sandoz

Markets News

BPCL ratings: Reiterate ‘Sell’ amid adverse risk-reward balance

The recent outperformance of BPCL against other OMCs is pricing in upside from a potential open offer in lieu of control premium that maybe paid by a strategic buyer in a scenario of privatisation.

BPCL privatisation, Dharmendra pradhan, BPCL, privatisation News

Kotak Institutional Equities: Maintain ‘buy’ on CIL with fair value of Rs 285/share

Coal India reported a decline of 20% yoy with dispatch volumes of 35.2 mn tons in September 2019—the fifth consecutive month of weak dispatches.

NTPC, Coal requirement, FGD contract, Maharashtra, Nimarkhedi station, Chhattisgarh, Madhya Pradesh, Khandwa station News

Tech Mahindra rating: Add — Enterprise segment prospects getting better

Tech Mahindra indicated that the broader slowdown in the auto industry reflected in weak growth numbers for the manufacturing vertical.

Tech Mahindra, Tech Mahindra rating, Enterprise segment, enterprise growth, enterprise growth prospects, revenue growth, segment revenue growth News

Lending rates likely to soften after repo rate, MCLR cuts

Average term deposit rates are broadly similar to term deposit rates (1-2 years) offered by most banks today; slightly lower than rates offered by SFBs.

Kotak Institutional Equities, Lending rates, MCLR, MCLR cuts, deposit rates, market news
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