Motilal Oswal

Mahindra Financial Services: Maintain ‘Buy’; TP at Rs 525

MMFS reported PAT of Rs 3.8b (up 1.5x y-o-y) under Ind-AS. The quarter was marked by robust disbursement and AUM growth, and an improvement in margins.

Markets News

Analyst Corner: Maintain‘buy’ on Ultratech Cement, target price Rs 4,157

UTCEM’s volumes grew 20% Y-o-Y to 15.8 mt (our estimate: 16.7mt) in 2QFY19. Realisations increased 1.4% Q-o-Q to Rs 5,015/t (in-line) due to higher prices in the central, north and southern markets. 

Markets News

Tata Elxsi rated ‘Buy’; Q2 revenue growth misses estimate

TELX has seen a gradual increase in growth rates since it hit its bottom in Q1FY18, from 9% y-o-y to 18% y-o-y now.

Markets News

Nalco Rated ‘Buy’: Wages take a toll on strategic advantages offset by wages

We analysed NALCO’s FY18 annual report. Key takeways: Revenues from sale of metal and alumina increased 26% y-o-y to Rs 93.7 bn driven by 21% increase in LME, partially offset by 4% appreciation of currency and 11% /3% inc

Industry News

HDFC Standard Life Insurance Rating ‘Buy’: Well calibrated approach paying dividends

FY18 was a strong performance year for HDFC Life in terms of total premium growth across premium categories, distribution channels, technology and margins.

Markets News

Analyst Corner: ‘Buy’ on Piramal Enterprises with target price of Rs 3,685

Management believes that opportunities in corporate lending are aplenty, given that most public sector banks and some private sector banks are not so active in this space.

Markets News

Q1 sales and margin registered a miss

Revenue growth expected to pick up for remainder of the year; ‘Buy’ maintained with revised TP of Rs 69

economy, revenue News

Motilal Oswal gives Hexaware Technologies ‘sell’ rating; Says performance in the quarter was good

Our TP for HEXW is Rs 390 (14% downside), which discounts forward earnings by 17x.

hexaware tech, hexaware tech revenue growth, hexaware tech share News

Maintain ‘neutral’ on HCL Tech with TP at Rs 1,050

HCLT’s 4QFY18 revenue grew 8.2% year-on-year CC, EBITDA rose 14.6%, and PAT increased 10% to Rs 22.3 billion.

HCL Technologies, HCL Technologies buy rating, HCL Technologies nomura, HCL Technologies Q3 rating nomura News

Analyst Corner: Maintain ‘buy’ on M&M Fin Services with TP of Rs 600

Calculated NIM on AUM expanded 140bp q-o-q, led by yield expansion, as MMFS gained market share in used vehicles and non-M&M OEMs. b) Adj. AUM grew 19.5%/6.6% y-o-y/q-o-q (ahead of our estimate), marking sturdy growth after 1

Mahindra & Mahindra Financial Services reported PAT of Rs 420 crore (5% miss). News

Maintain ‘buy’ on Mahindra CIE with a TP of Rs 298

Consol. revenue grew 27% YoY to Rs 2,000 crore (est of Rs 1,660 crore), driven by strong volume growth in India/Europe and rupee depreciation.

Mahindra CIE, India, Europe, EBITDA, bfl mexico, Bill Forge Mexico,  Hyundai, kia News

Aluminium, alumina market dynamics turn favourable

Aluminum and alumina market dynamics have turned favorable after recent events, leading to supply vacuum of 2.8mtpa of metal (Rusal and Hydro) and 8mtpa of alumina (from the world’s largest alumina refinery in Brazil owned

alumina market, US rusal, russia, brazil, US sanctions News

A strong performance in final quarter

Cost of funds likely to rise; FY19/20 estimates cut 2/4% due to spread compression

GRUH Finance, GRUH Finance q4 results, CAGR, GNPL ratio News

Motilal Oswal maintains ‘neutral’ on Gruh Fin with TP of Rs 600

The Indian Meteorological Department (IMD) released its first forecast for the 2018 southwest monsoon (June-September) rainfall.

gruh finance, loan growth, IMD News

Pidilite aims to grow 1-1.5x of GDP in existing categories

According to management, repeated usage of its existing well-penetrated categories, along with rising penetration of the newer categories, will drive growth for PIDI.

Pidilite, GDP, GDP growth, CIPY Polyurethanes, floor coatings market, india News

Future seems rosy for company

Great play on FMCG opportunities; expensive valuation justified; initiated with ‘Buy’ and TP of `76

Future Consumer, fcl News

Maintain ‘buy’ on SH Kelkar with target price of Rs 318

Fire in BASF’s German chemical plant, China resorting to factory shutdowns in a move to regulate environmental laws, and floods in the US have caused several supply-side disruptions for flavors and fragrances (F&F) players

SH Kelkar, SH Kelkar target price, BASF, markets News

HDFC Bank rating: Growth momentum likely to be maintained

HDFC Bank (HDFCBK) has consistently grown its market share in loans and deposits across credit cycles, and has emerged as the best-managed bank in India with robust profitability/growth metrics.

HDFC Bank rating, HDFC Bank, market shares, loans, deposits, banking News

JAGP: Healthy ad, radio revenues to steer growth

As the impact of GST-related hiccups is waning, print ad revenues are expected to grow at a healthy 10% CAGR over FY18-20 on the back of recovery in ad spends led by increased launches across the FMCG and auto space.

JAGP, revenues, growth, print ad revenues, GST News

Fortis Healthcare: Banks may look for new investor

Fortis Healthcare needs to recover loan of ~Rs 4.7 billion from promoter entity. Management responded that it is confident about recovering this loan, but we see this as a concern, given the financial health of the promoter e

Fortis Healthcare, investor, banks, Fortis Healthcare revenue News

Volume growth for company at inflection point

We visited Jindal Steel and Power (JSP)’s Angul, Raigarh and Tamnar facilities. Crude steel production at Angul is gathering pace.

Economy News

No let-up in worries over asset quality

FY18e earnings cut sharply to factor in pressure on NIMs and higher credit costs.

PNB fraud, Union Bank of India, Punjab National Bank, CBI, BSE, Nirav Modi, PNB, Punjab national bank, Interpol, CBI, Diffusion Notice, Mehul Choksi, gitanjali, Priyanka chopra, Enforcement Directorate News

Maintain ‘buy’ on United Breweries with TP of Rs 1,380

The recently introduced corporation model in UP could have positive implications for leading brands; would also help reduce receivables risk. Management highlighted an improving business environment.


Budget 2018 aims at creating a welfare state

Budget 2018: THE FInance minister was adversely positioned to present a landmark Budget. As the 2018 Budget comes against the backdrop of a difficult situation post-demonetisation, GST implementation, Gujarat election results

Budget 2018 News

We see value unlocking in KPIT-Birlasoft deal

KPIT announced a merger with Birlasoft and a subsequent demerger of its Engineering business, effectively implying creation of two separate businesses – the combined KPIT-Birlasoft entity and the Engineering entity.

Birlasoft, Birlasoft kpit deal, motilas oswal review on birlasoft deal News

Maintain ‘Neutral’ on ITC with target price of Rs 278

EBITDA rose 10.1% y-o-y to Rs 39 billion, while adjusted PAT increased 6.5% y-o-y to Rs 28.2 billion. Cigarette volume decline is likely to have been 2%. Calculated cigarette revenue grew 14% y-o-y, while cigarette EBIT incre

ITC, EBITDA, EBIT margin, Agri business, Cigarette volume, FMCG, cigarette business, PAT News

Maintain ‘neutral’ for Jyothy Laboratories with TP of Rs 380

Reported power brand sales grew just 9.3% y-o-y. EBITDA rose 36.8% y-o-y to Rs 69.3 crore (est of Rs 61 crore). Adj PAT after non-controlling interest (NCI) grew 61.5% y-o-y to Rs 34.7 croe (est. of Rs 34.7 crore).

Jyothy Laboratories, EBITDA, Bihar, West Bengal, Wholesale trade, rural growth, Personal care News
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