Kotak Institutional Equities

Articles By Kotak Institutional Equities

355 Articles

Avenue Supermarts pins hope on e-commerce model

It is also consciously adding larger stores given good response to new stores. Land costs are certainly higher than Dmart’s historical land costs, which is driving up capex.

Avenue Supermarts pins hope on e-commerce model News

Analyst Corner: Retain ‘buy’ on Aditya Birla Fashion and Retail

However, the Jaypore brand is fairly nascent, and will require time and investment to scale up. We await detailed plans of the scale up, but would be wary of hefty investments, similar to the innerwear business.

Jaypore retails apparel (for women, men and kids), silver and fashion jewelry, accessories, home décor and gift items. (Website image) News

Coal India Rating | Buy — Strong growth aided by a favourable base

FY19 saw much improved showing by CIL; FY20/21e earnings up 11% to factor in lower production cost; ‘Buy’ rating maintained

Coal India Rating, Coal India, e-auction realisations, EBITDA, Headline PAT growth, e-auction revenues News

Stock corner: Retain ‘sell’ on Timken India at revised fair value of Rs 620

While the company’s growth prospects remain strong due to pickup in industry demand and increase in localisation, we believe that profitability is not sustainable at 4QFY19 levels. Valuations are expensive at 25X FY2021E EP

Timken India Stock Timken India sell shares, Timken India buy shares, Timken India value, Timken India profit, Timken India revenue News

Stock corner: ‘Reduce’ Interglobe Aviation, earnings were stronger than estimated

FY21e EPS up 2% and TP revised to `1,575; while positives are factored in at present price, risks are not; downgraded to ‘Reduce’

Interglobe Aviation, indigo earnings, indigo shares, indigo stocks, indigo revenue, indigo profit, News

Deposit rates, lending rates expect to remain stable over the near term

As per the latest data by RBI, term deposit rates were flat m-o-m in March 2019 at 6.9%.

rbi, deposit rates, lending rates News

Your Money: FY20 Nifty-50 Index net profits to grow at 24%

FY2019 net profits of Nifty-50 Index to grow 13% versus 22% at the beginning of FY2019 due to large earnings misses in 4QFY19 results.

Money News

Stock corner: Maintain ‘sell’ rating on Endurance Technologies – Kotak Institutional Equities

Endurance Technologies reported consolidated EBITDA of `320 crore (+26% yoy) in 4QFY19, 18% above our estimatesmainly due to sharp improvement in gross margins and government incentives.

Stock corner: Maintain 'sell' rating on Endurance Technologies - Kotak Institutional Equities (Website image) News

Stock corner: ‘Reduce’ on Pidilite, stock expensive on relative basis

PIDI’s 4Q earnings were 10-12% below our and the Street’s estimates due to sharp deceleration in volume growth (India CBP volume/mix growth down to 4% in 4Q from 15% in 9MFY19), partly offset by better-than-estimated reco

Stock corner: 'Reduce' on Pidilite, stock expensive on relative basis News

Stock corner: ‘Add’ Vodafone Idea, a couple of hits and misses in last quarter

While synergy benefits are accruing, company is not yet out of woods; reinitiated with ‘Add’ rating and TP of Rs 16

Stock corner, Vodafone Idea, Vodafone Idea Q4FY19 earnings, Cost synergy delivery News

Banks: Trends remain unchanged in MSME lending

While loan growth is healthy and NPLs are stable, private banks have been gaining market share at cost of PSBs

Banking & Finance News

Will liquidity crisis affect Mahindra Finance? Check what Kotak Institutional Equities has to say

Mahindra Finance reported 29% growth in NII on the back of strong (27% yoy and 6% qoq) growth in AUMs and flat NIM (up 5 bps yoy).

Kotak Institutional Equities, Mahindra Finance, stable NIM, market news

Stock corner: Buy Bajaj Consumer Care, decent performance in the quarter

A steady quarter defying some slowdown in consumer staples, healthy trends (market share gains and offtake growth tracking ahead of primary) and new product launches keep us optimistic of earnings growth acceleration.

Bajaj Consumer Care Rating: buy| Decent performance in the quarter News

Analyst corner| IT services – Indian companies still favourite with PE firms

The acquisition reflects continued interest from PE firms in mid-tier companies listed in India and strategic buyers for private or US-listed offshore pureplays.

Markets News

Your Money: Term deposit rates grow marginally

Increase in fresh lending rates is unlikely as most companies focus on higher share of low yielding retail products and lending to better rated corporates.

Money News

‘Buy’ HCL Technologies share, positives being ignored in valuations

$1.3-bn deal with Xerox continues momentum in large deals; to be reflected in revenues in FY20e; ‘Add’ rating maintained

hcl techonologies, Kalpataru power & transmission, Nordic deal, HCLT,  Xerox, Strong-Bridge Envision News

Why you should look to exit stocks/sectors with weak fundamentals

We find limited pockets of value in the Indian market with only a few ‘corporate’ banks and NBFCs and most PSU stocks offering meaningful value. We expect potential further re-rating of the ‘corporate’ banks as and wh

Market rally: Look to exit stocks/ sectors with weak fundamentals (Illustration: SHYAM Kumar Prasad) News

Lemon Tree Hotels Ratings| Acquisition in line with growth aspirations

Impact on leverage post buy of Keys Hotels would be important; TP revised to Rs 86 with a rollover to March’21; ‘Add’ retained

Lemon Tree Hotels Rating add: Acquisition in line with growth aspirations News

Life insurance: Private insurance firms’s premium collections up

Private sector players reported 16% year-on-year (y-o-y) growth in individual annual premium equivalent (APE) in February 2019, higher than in the past few months.

hdfc life, life insurance News

Stock Call: ‘Add’ Tata Global Beverages shares, target price Rs 220; cost hits earning

FY19-21e EPS cut 3.4-4.5%; TP revised to Rs 220 from Rs 240; ‘Add’ maintained

Markets News

Banking Trends: Private Banks’ deposit share rise at the expense of PSU banks

Private banks perform better in southern and western parts of India compared to others.

Banking & Finance News

Maintain ‘add’ on Lemon Tree with fair value of Rs 80/share – Kotak Institutional Equities

Lemon Tree continues to report steadily improving operating metrics with ARR having increased 5% year-on-year to Rs 4,465 a day and occupancy levels declining 350 bps to 73% in Q3FY19.

Markets News

Analyst corner: ADSEZ would benefit from synergistic benefits – Kotak Institutional Equities

Adani Logistics Limited (ALL) has approved the acquisition of Adani Agri Logistics, a wholly owned entity of Adani Enterprises.

Markets News

Coal India: Buy stock as strong realisations, valuations augur well

Robust Q3 came on the back of higher e-auction realisations; FY19/20e earnings up 10.3/12.4%; upgraded to ‘Buy’

coal. coal sector, coal industry News

Life Insurance: Private insurers’ premium collections up 10 per cent

Growth rate had moderated in April-July 2018 but has picked up in later months.

sbi, icici, mutual fund, hdfc News

Tata Motors Rating – ‘Buy’: Cost saving in standalone businesses beat estimates; headwinds in JLR business mar results

Standalone operations beat estimates due to cost-saving steps; ‘Buy’ retained with TP revised to RS 280 from Rs 300

Markets News

Stable deposit rate trend over the near term

The gradual rise in yields has led to a situation where spread between bank funding and bond rates have gradually started to converge.

Money News