Kotak Institutional Equities

Articles By Kotak Institutional Equities

358 Articles

Timken rated ‘sell’; commodity prices, demands are headwinds

FY19-21e EPS cut 12-14%; valuation high; ‘Sell’ retained with revised TP of Rs 570.

Industry News

Energy: ‘Add’ on ONGC; negative stance on OMCs

The government’s ad-hoc interventions in fuel prices and subsidy sharing historically suppressed earnings and return ratios for these companies, while limiting visibility on profits until the end of every year during that t

Industry News

Apollo Tyres rating ‘buy’: Correction greater than is needed

FY19-21e EPS cut 4-6% to factor in higher crude prices and rupee depreciation

Industry News

Demand environment is robust for Indian IT firms

Accenture reported an exceptional August 2018 quarter (Q4FY18) with 11% revenue growth in constant currency (c/c).

Indian IT firms, Accenture, financial services, Organic revenue, security services News

Your money: Gap between outstanding & fresh loan rates remains

Difference in loan growth between public and private banks may result in the latter looking to revisit their deposit rates.

Money News

Bajaj Auto rated ‘sell’; Rupee depreciation likely to help margins

Medium-term concerns persist; earnings rise 5-8% for FY19-21e; TP raised to Rs 2,700; ‘Sell’ retained owing to outlook in bike segment

Markets News

Utilities: Merchant tariff rates log September spike

The recent spike in merchant tariff rates on the exchange to above Rs 5/kwh brought with it a sense of déjà vu, as a similar seasonal trend was seen in September, 2017 with spot prices having gone above Rs 5/kwh for a brief

Industry News

NBFCs: IND-AS had limited impact on earnings

Net worth too saw low impact; next downcycle is not expected to be more severe than the last one .

Industry News

Management sees 13-15% topline growth; ‘add’ Marico

We hosted the Marico management for an NDR in Europe. The company intends to reinvest the likely GM gains to accelerate growth in its new growth engines (health foods and male grooming).

Markets News

Company betting on new growth engines

Momentum in market growth is picking up; Saffola only major area of concern; reason to remain constructive; ‘Add’

Marico rating, Marico management, NDR,  gross margin, market growth, gst News

L&T Rating ‘Buy’: Cash flows or monetisation gains will be key

Expected recovery in infra sector margin behind 2-3% rise in core E&C estimates; deleveraging pace likely to increase; ‘Buy’ retained.

Industry News

Pidilite Industries Rating: Company well placed on all fronts

PIDI management has reiterated its confidence in the core adhesives/ sealants business, highlighted opportunity size and progress in the growth categories (waterproofing, WD-40, etc) and emphasised an innovation pipeline that

Markets News

With deposit rates broadly stable, further rise in MCLR at a swift pace is less likely

Reserve Bank of India’s data for system-wide average lending and deposit rates for June continued to indicate a flattish trend for the sector (slack period), the outcomes similar for private and public banks.

Money News

Steady show in Q1FY19 was telling

Estimates cut 4-8% over deferral of deleveraging and lower order inflow; TP down to Rs 410; ‘Buy’ maintained

kec, money News

Q1 saw moderation in sales momentum

Strong launch pipeline and cash generation factored into rich valuations; ‘Sell’ retained with TP of Rs 400

Godrej Properties, GPL share, Godrej Properties Q1, Godrej Properties SALES,  News

Cholamandalam Fin. rating ‘Reduce’: Yet another strong showing by company

Estimates raised by 1-5%; softer business momentum to open up better entry points into quality stock.

Industry News

Buy rating on L&T: Execution and order inflows offer comfort

Q1 raised concern on margins; upholding of guidance is reassuring; TP increased marginally to Rs 1,600

Markets News

An excellent performance by company

Mindtree’s strong digital competencies, deal flow from the advisory channel and favourable portfolio mix will ensure strong growth with improving margins.

Markets News

F&B development poses a risk

The Maharashtra government intends to allow outside food in multiplexes; theoretically, it can significantly impact PVR’s earnings.

Economy News

Metals and Mining, Q1FY19 Preview: A good quarter likely for most companies

Domestic steel companies and integrated aluminum names will report sequential earnings improvement led by higher metal prices.

Industry News

Dish TV rating ‘add’: Impressive show in first quarter, says Kotak Institutional Equities

FY19-21 Ebitda estimates up 3-4% and TP revised to `90; consistency will be key.

Industry News

‘Sell’ on Bharat Forge as TP cut to Rs 600 from Rs 650

FY2018 was a successful year for Bharat Forge as both automotive and non-auto segments fired on all cylinders.

Bharat Forge, US, US Class 8 truck segment, MHCV, export non-auto business News

Zee likely to revisit its treasury management strategy in FY19

Zee achieved an important milestone in FY2018—#1 non-sports entertainment network and it set the tone for enhanced focus on digital.

Markets News

Progress made by company is slow

Even as patanjali is not gaining incremental market share anymore, CLGT is not wresting back any of the lost share either, unlike what a Dabur is reporting in Honey and Chyawanprash.

Markets News

Road sector stocks are undervalued

The decline in stock prices of road companies is in contrast to the scale-up in the order backlog of their construction business

Infrastructure News

Accenture’s results suggest robust spending scenario

Accenture impressed with constant-currency revenue growth of 11% in May 2018 quarter. The company also raised FY2018E revenue growth guidance to 9.5-10% from 7-9% earlier.

Markets News

Maintain ‘sell’ on ACC on expensive valuations

A new cement project earns an investment return of 8-10% (assuming Industry utilisation of close to 75%).

Markets News