Nomura

Union Bank of India rated ‘Buy’; performance in the quarter was decent

Q2FY19 core PPOP was in line, and it reported PAT of Rs 1.4 bn vs our forecast of a loss of Rs 1.6 bn, due mainly to lower provisioning (coverage was flat q-o-q).

Banking & Finance News

Wipro rating ‘Neutral’: An improvement in performance

Results were marginally ahead on growth, but materially ahead on margins. Growth was broad-based across verticals (ex. Healthcare) and geos (ex of EU) and guidance of 1-3% q-o-q (1% inorganic) was in line with expectations.

Markets News

Infosys Rating ‘Reduce’: Growth cheer even as margins slipped

Margin outlook for H2 is weaker; earnings likely to lag revenue growth after transitory INR gains in FY19F; ‘Reduce’ retained

Infosys Rating, Infosys stock, Infosys Rating revenue growth, Infosys Rating q2, TCS News

Cummins India rated ‘buy’; stage is set for recovery in earnings

FY19-21F EPS up 1-2%; valuation inexpensive; ‘Buy’ maintained with TP of Rs 890

Markets News

Coal India Rating ‘Buy’: Share buyback plan in the works

Outlay for share buyback in FY19 would be capped at Rs 29.2 bn; healthy interim dividend likely in Q4FY19F; ‘Buy’ retained.

Markets News

Reliance Nippon Life Asset Management rated ‘neutral’; TER cut mars prospects for profitability

10-15% impact expected on earnings; downgraded to ‘Neutral’ with TP cut to Rs 210

Markets News

Analyst Corner: Maintain ‘Buy’ on JSW Steel with TP of Rs 484

Steel capacity expansion in FY18-21F likely to be limited, which will likely saturate capacity in next three-four years, in our view. Already in FY19 we are seeing steel demand growing faster than GDP.

Markets News

IT Services: Tier-1 players lagging across segments

Indian Tier-1 IT, after progressively showing lower market share gains over the past three years, has lost market share to MNCs (ACN/CAP) on an LTM basis.

Industry News

JLR US sales the silver lining in August

Risk to estimates if weak demand persists in major markets; stock trading at lowest end of historical band; ‘Buy’ retained

Markets News

Nomura gives Coal India Rating as buy; August numbers were subdued

5MFY19 production/offtake rose 12/9.5% y-o-y; implied run-rate for meeting FY19F targets seems achievable

coal, coal industry, coal sector News

Larsen and Toubro’s working capital levels may shrink

Over the past decade, L&T has experienced significant growth in its core E&C business’ working capital. Our analysis suggests that in the core E&C business, working capital has increased by  Rs 148 billion for L&T over FY1

larsen and toubro, industry News

August auto volume growth likely to remain subdued

August-18 automotive volume growth is likely to remain subdued across segments due to a delayed festive season in FY19.

Industry News

AIA Engineering Rating: Neutral, first quarter reflected a turnaround

AIAE reported Q1FY19 15% y-o-y volume growth coupled with record production levels.

Industry News

Larsen & Toubro Rating ‘Buy’: Share buyback move will be value-accretive

"We estimate that while the buyback will lead to a loss of other income of Rs 4.0 bn in FY19F we estimate ROE will improve by 100-150bp over FY19-21F, thus implying the buyback would be value accretive"

Industry News

Execution issues cloud near-term outlook

FY19/20F EPS cut 34/37% to account for delay in projects; downgraded to ‘Neutral’ with TP reduced to Rs 82 from Rs 129.

Execution issues cloud near-term outlook

AIA Engg: Strong outlook for H2; TP at Rs 1,955

AIAE reported 15% y-o-y volume growth in Q1FY19 coupled with record production levels. Thus, the H2FY19 volume outlook looks strong to us, says Nomura.

AIA Engg, AIA Engg target price, Q1FY19, H2FY19 News

Indian Oil Corporation Rating: Like peers, strong quarter for company

Reported Ebitda of Rs 126 bn (+14% q-o-q, +57% y-o-y) was sharply 66% ahead of our estimates and 20% ahead of Bloomberg consensus forecasts.

Indian Oil Corporation, Indian Oil Corporation rating, IOC, market News

Amara Raja: Ebitda margins to improve, TP at Rs 960

Amara Raja's (AMRJ) Q1FY19 revenue grew ~19% year-on-year, ~2%-4% ahead of our/consensus estimate.

Markets News

Indraprastha Gas: Ebitda, PAT ahead of our estimates

We expected Q1 to be relatively muted for Indraprastha Gas (IGL) as typically, volume growth is muted (summer holidays). Also, we expected a negative impact of sharp rupee weakness.

Indraprastha Gas, Ebitda, PAT,  CNG News

Analyst Corner: Dr Lal PathLabs valuations boosted by growth prospects

Dr Lal pathlabs’ (DLPL) 1FY19 results were below our estimates. Sales recorded 17% growth y-o-y and were 3.4% lower than our estimates.

Markets News

Apollo Hospitals: Ebitda growth is strong, TP at Rs 1,307

APHS’s Q1FY19 results are ahead of our estimates. Standalone sales and Ebitda were 6%/3% ahead of our estimates. Existing or old hospital standalone/consolidated revenue growth was 9.7%/8.8%, respectively.

Markets News

Quarter results were in line with estimates

Despite commentary, FY19F telecom growth appears difficult; ‘Neutral’ retained with TP rising to Rs 690.

tata, tata industry News

Maintain reduce on TVS Motors, target price Rs 501

TVSL’s EBITDA margins at 7.4% missed the estimates (consensus 7.6%/Nomura 7.9%). There was sharp raw material cost inflation, which the company was unable to pass on during the quarter (RM/sales up 240 bps q-o-q).

TVS Motors, TVS Motors target price, EBITDA margins, cost inflation, market News

Bank of Baroda Rating ‘Buy’: Operational showing was very strong

Changes in functioning are reflected in numbers; core PPOP estimates up 2-4%; valuations are reasonable.

Banking & Finance News

ICICI Bank rating ‘Buy’: Results were in keeping with expectations

FY19 will be a grind over asset quality; TP revised to Rs 375; ‘Buy’ retained owing to reasonable valuations

Banking & Finance News

Income Tax Return: Common mistakes to avoid while filing ITR-1

The income tax department issues different Income Tax Return forms (ITR) every year for varied categories of the taxpayers depending on their source of income.

Income Tax News

Axle load move could affect demand

Last Tuesday the GOI decided to increase the maximum axle load of heavy vehicles by 20-25% on both new and existing trucks.

Markets News
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