CIL: Maintain ‘buy’ with revised FV of Rs 185/share
Weak realisations. Coal India (CIL) reported weak performance as realisation for raw coal (contributing 80% by volumes) declined to Coal India1,354/tonne (-4% yoy) leading to flat revenues of Rs 217 billion despite 8.7% y-o-y
Coal India: Maintain ‘buy’ with revised FV of Rs 185/share
CIL reported revenues of Rs217 billion (+1% yoy, +11% qoq), ebitda of Rs32 billion (-5% yoy, +38% qoq) and PAT of Rs30.8 billion (-21% yoy, +4% qoq) against our estimates of Rs223.8 billion, Rs32.5 billion and Rs36 billion, r
Muthoot Finance: Retain ‘reduce’ with FV of Rs 1,250
High growth phase behind us. Muthoot Finance’s 3QFY21 performance was supported by strong gold price rally during 9MCY20, improving funding environment and efficient cost controls at the company.
Phoenix Mills: Initiate coverage with ‘buy’ and FV of Rs 960/share
In our view, retail malls cater to the rising aspirations of an increasingly urbanised India.
Hindustan Unilever Rating: add- Focus on volumes showed in results
Investing in business despite margin pressure likely to pay off; estimates tweaked; ‘Add’ retained with TP of Rs 2,625
Analyst Corner: Retain ‘add’ on HDFC Life with fair value of Rs 705
VNB growth was strong at 27% year on-year (YoY) in 3QFY21 led by 18% YoY growth in APE and 180 bps yoy expansion in VNB margin to 26.5% (up 110 bps QoQ ).
Downgrade Bajaj Finance to ‘sell’, fair value Rs 4,000
We raise our FV to Rs 4,000 (4.5X book) from Rs 3,000 to reflect higher estimate, rollover to March 2023E and marginal reduction in cost of equity.
Maintain ‘buy’ on APSEZ with revised FV of Rs 600
We reduce our cost of equity assumption for Adani Ports to 12.75% from 13.25% and bring monthly volume run-rate for FY2022 to levels reported in December 2020. Retain ‘buy’ with revised FV of Rs 600 (from Rs 535 earlier).
Mindtree: Maintain ‘sell’, impressed with cost management, efficiency improvement
However, elevated margins may not sustain as wage revisions, decline in utilisation and increase in costs start seeping its way through in the coming quarters.
HCL Technologies Rating: add- A good showing by the firm in third quarter
Guidance for March quarter a tad soft; FY21-24e EPS up 5-8%; TP raised to Rs 1,120 from Rs 1,040; ‘Add’ retained
Analyst Corner: Maintain ‘buy’ on PVR with revised fair value of Rs 1,650
PVR’s 3Q results have limited relevance as cinemas resumed operations gradually with capacity restrictions and occupancy was negligible due to lack of content.
Maintain ‘buy’ on CESC with unchanged FV of Rs 800
CESC’s consolidated profits increased 23.2% yoy to Rs 3.2 bn led by profits of Rs 280 mn reported at Dhariwal compared to losses of Rs 150 mn in 3QFY20.
Analyst Corner: Retain ‘sell’ on Tata Motors; revised fair value at Rs 155
We retain ‘sell’ but revise fair value to Rs 155 (from Rs 135 earlier), noting cost-cutting initiatives and roll-over to March 2023E (from December 2022E earlier).
Metals & Mining: Q3FY21 Preview- Margins likely to rise to new highs
Strong FCF will accelerate deleveraging; uptrend likely to persist; valuations benign; TATA, HNDL & JSPL top picks
High spreads still shows reluctance to lend by banks
In a relatively low growth and heightened risk environment, especially after Covid, we note that the spreads have continued to remain high.
Raise FV on L&T by 8% to Rs 1,410 on order buoyancy
With support from several large orders finalised over the past three years and benefits of share gains for L&T in FY 2021, we note prospects of FY2022 ordering hovering around FY2020 levels.
Analyst Corner – United Breweries: Beer volume recovery tracking well; FV raised to Rs 1,260
We expect UBBL’s new CEO to step up focus on market share defence in value segment and gain share in the premium segment.
Analyst corner: Initiate with ‘add’ on SBI Cards with fair value of Rs 900
In this report, we discuss trends on retail payment behaviour across time periods and different geographies, stakeholders' perspectives on credit cards and the earnings model of the credit card business.
Auto & Components: Prospects are strong for tyre makers
Volume estimates up; rise in rubber prices a worry; Apollo Tyres downgraded to Reduce; TP raised for MRF and CEAT
Analyst Corner: Reiterate ‘buy’ on GAIL with revised FV of Rs 140
The recent increase in crude-linked, as well as spot LNG prices, will augur well for the gas marketing segment, as the respective differential with the US LNG price has reduced considerably in the past few months
Wipro Rating: Add Deal with Metro reinforces credentials
Firm likely to gain from strong momentum in digital foundation deals; valuations inexpensive; ‘Add’ retained
Analyst Corner: ‘Buy’ on InterGlobe Aviation with unchanged FV of Rs 1,870
We expect Indigo to report healthy and durable spreads from FY2023 given benign medium-term outlook for crude and competitive intensity.
Analyst Corner: Double-digit revenue growth seen for Infosys in FY22 & beyond
Infosys is on track to report double-digit revenue growth in FY2022 and beyond. Even after the run-up, the stock offers reasonable upside.
Analyst Corner: Maintain ‘add’ on GCPL; firm gaining share in soaps space
GCPL expects HI portfolio to deliver high single-digit to low double-digit growth on normalised basis.
Oberoi Realty Rating ‘Add’; deal value’s small in overall NAV
While showing could be soft in near term, outlook is positive; TP up to Rs 570 from Rs 450
Reiterate ‘buy’ on Tata Steel with fair value at Rs 800
After a potential exit from Europe, India business would generate Rs 130-140 billion FCF before growth capex in FY2022E/23E. With ~20% FCF yield, growth plans would not increase leverage.
Varun Beverages Rating: Buy; poised for strong growth in earnings
Volumes have recovered steadily; margins likely to rise; CY21/22e EPS up 10-11%; TP raised to Rs 1,000; ‘Buy’ maintained
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