Motilal Oswal

Articles By Motilal Oswal

342 Articles

Stock corner: Retain ‘buy’ on Bank of Baroda with revised target price of Rs 120

Bank of Baroda reported a PAT of Rs. 730 crore (our estimate: A loss of Rs. 1,200 crore) as the bank continued with the existing tax regime and thus no adjustments were required in DTA.

Markets News

Maintain ‘buy’ on Sun Pharma, target price Rs 515

Emerging Markets (EM) sales were up 3% YoY at $201m (18% of sales).

Sun Pharma, Sun Pharma target price, Pola Pharma Japan, EBITDA, US market, Sun Pharma India sales News

Escorts rating | Results were in line with estimates

FY21e EPS up ~5% due to higher tractor volumes; ‘Neutral’ retained with TP of Rs 700

Escorts rating, Escorts revenue, Tractor segment PBIT, FCFF, CAGR, Kubota JV News

Stock corner: ‘Buy’ on Tata Motors, JLR recovery signs highlight of Q2

India business seems to have bottomed out; FY21e EPS up ~8%; upgraded to ‘Buy’ with revised TP of Rs 185.

jlr, jaguar News

Bajaj Finance rating: Maintain ‘neutral’ with target price of Rs 3,850

The share of new loans to existing customers increased y-o-y from 66% to 70%.

bajaj finance, bajaj finance stocks News

ICICI Bank rating | Buy — Operating performance was strong

Bank is well placed in a challenging environment, being on track to achieve RoE target; top pick in the sector; ‘Buy’ maintained.

icici bank, banking sector, banking industry News

Stock corner: Doubts over volume growth; downgrade Marico to ‘neutral’

Consolidated gross margin expanded 560 bps y-o-y to 49.6%. Ebitda margin expanded 270 bps y-o-y to 19.3% (v/s est 17.7%) in the quarter as the company actively invested in brand building.

Consolidated gross margin expanded 560 bps y-o-y to 49.6%. News

Jubilant Foodworks Rating| Buy- Showing in the quarter was good

As highlighted in our update note two weeks ago, JUBI’s competitive positioning will get stronger as a result of the corporate tax cuts. Moreover, the challenge of a high SSSG base eases significantly going forward and JUBI

With the earnings outlook improving, TP raised to Rs 1,720; upgraded to ‘Buy’ News

Analyst corner: Yield/ASK in line, but higher cost hits Indigo profitability

ASK increased by 24% y-o-y to 24.2 billion km. The company added ~10 new planes during the quarter, with addition of seven new domestic and six new international routes (China – 2, Vietnam – 2, Myanmar – 1, Saudi Arabia

Markets News

Stock corner: ‘Buy’ on Larsen & Toubro with target price of Rs 1,830

Helped by a lower tax rate of 26.6% for H1, adjusted PAT growth stood at a strong 28.5%.

Markets News

Stock corner: ‘Buy’ Reliance Industries, consumer business drove showing

Petrochemical Ebit stood at Rs 75 bn (-6% y-o-y, flat q-o-q), led by pressure on product spreads due to the global supply glut. Implied Ebitda (USD/mt) was lower at $317 (-22% y-o-y, -27% q-o-q) due to a sequential contractio

Stock corner, Buy, Reliance Industries, consumer business, market news,RIL, Petrochem, Jio News

Analyst corner | Maintain ‘neutral’ on TVS Motor, target price Rs 434

EBITDA margin improved 20bp YoY (+80bp Q-o-Q) to 8.8% (our estimate: 7.8%). Low tax boosted adj. PAT to ~ Rs 1.8 billion (our estimate: ~ Rs 1.5 billion), a decline of ~15% Y-o-Y. For 1HFY20, revenue/EBITDA/PAT were down ~4%/

Analyst corner, TVS Motor, target price, TVS Motor share, TVS Motor company, TVS Motor result  News

Stock corner: Maintain ‘buy’ on Federal Bank, revised target price of Rs 110

Other income grew 30% Y-o-Y, led by a significant rise of 27% in fee income. Total income growth (15% YoY) trailed opex growth, resulting in muted 3% Y-o-Y growth in PPoP, while the C/I ratio was up ~410bp QoQ to 53.5%.

Stock corner, buy, Federal Bank, target price, market news, PAT, opex growth, NII, HFC, financial conglomerate , IL&FS News

Stock corner: ‘Buy’ HDFC Bank, business growth picked up in quarter

Margins are likely to be stable q-o-q at 4.3%, and NII to grow ~18% y-o-y; ‘Buy’ retained

HDFC Bank quater earning, HDFC Bank share, HDFC Bank stocks, HDFC Bank trade, HDFC Bank net profit, HDFC Bank earning News

Buy or Sell TCS shares? Stock Call by Motilal Oswal: Weak show; check target price

As we rationalise our ETR expectations, the EPS downgrade impact is only partial. Demand outlook for the medium term remains healthy considering strong deal wins.

TCS net down, tcs results q2 2019, tcs share, tcs results, tcs share price nse, tcs q2 results 2019 expectations, Rajesh Gopinathan News

Earnings season to be tepid again; Private banks, consumer and capital goods likely to provide some respite

Besides NBFCs, banks too have started facing asset quality concerns now.

Markets have remained weak in Q2FY20, despite the sharp bounce back post tax cut. News

Motilal Oswal: Jubilant Foodworks to gain from corporate tax rate cut

In our view, the government’s decision to cut the corporate tax rate bodes well for Jubilant Foodworks as it was under the highest tax slab of 34%.

We now believe Jubilant will be among the key beneficiaries of the cut in corporate tax to 25.2%, as it adds around 13% to its PAT. News

Titan: Maintain ‘Buy’ with a revised target of Rs 1,435

Jewellery sales declined sharply with a sudden surge in gold prices denting consumer demand from mid-Jun’19.

Increasing concerns about revenue and earnings growth for many consumer peers will also likely ensure high multiples for TTAN. News

Technology: Could BFSI wane seasonal strength

Although July-September is the strongest quarter for the industry, softening BFS momentum (owing to macro concerns in Europe and weak spending by capital market clients across geographies) is a cause for concern.

Markets News

NTPC: Coal requirement and operations at its units

NTPC has completed trial-run operations at full load for unit-1 on 29th Sep’19 and will likely commercialise the unit this month.

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

Motilal Oswal: Maintain ‘buy’ on Marico

“We hope for some recovery in overall sentiment in H2FY20 on the back of good monsoon and government-led stimulus.”

Motilal Oswal, Marico, liquidity conditions, volume growth, brand building spends, input costs, International business News

Bharti Airtel rating | Buy — Company is entering a phase of stability

Further, ARPU accretion from broadband subscribers (2x ARPU v/s voice only subs) is likely to contribute to growth.

Markets News

Petronet LNG Rating: Buy; Non-binding nature of deal is important

Recent corporate tax benefit behind ~12% rise in EPS for FY20/21e; \ TP raised to Rs 336 from Rs 305; ‘Buy’ maintained.

Markets News

Motilal Oswal: Maintain ‘buy’ with TP of Rs 475 on ICICI Prudential

Accordingly, the share of ULIP in total APE has declined to ~70% from ~85% in FY17, while that of the protec-tion business has increased sharply.

We hosted a boardroom discussion with Mr N S Kannan (MD & CEO) and Mr Satyan Jambunathan (CFO) of ICICI Prudential Life Insurance (IPRU). News

Motilal Oswal: Retain ‘neutral’ on Hexaware with target price of Rs 390

BFS vertical (40% of total revenues) is highly skewed toward capital markets. Both buy- and sell-side firms contribute ~80% of BFS revenue, while retail and corp. banking account for a mere 20%.

HEXW has been impacted by changed priorities in one of the largest clients in the vertical. News

Automobile: Some signs of recovery in Delhi/NCR

While inquiries have risen for 2W/PVs, MHCVs continue to feel pinch; limited pre-buy expected across segments

Purchase is being deferred in anticipation of a GST cut. News

Tata Motors Rating: Neutral; Miss for Jaguar Land Rover in August volumes

The comprehensively re-engineered Land Rover Discovery Sport will be launched in China later this year further solidifying its position as a best-selling model.

Tata Motors, Tata Motors ratings, Jaguar Land Rover, Jaguar volumes, Frankfurt Motor Show News