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.
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.
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
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
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’
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%.
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.
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: ‘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: ‘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
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
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).
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.
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.
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.
‘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
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
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
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.
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
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.
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.
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.
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’
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.
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
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.
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