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Articles By Nomura

344 Articles

HDFC Bank rating | Buy — Retail juggernaut faces some bumps

FY20-21F earnings cut by 4-5% due to slower growth and credit costs; TP up to Rs 2,600 with rollover to Sept’21F

HDFC Bank rating, HDFCB retail growth, HDFCB credit, HDFCB retail growth News

Analyst corner: Expect AHCLL to break even at Ebitda level in H2FY20

Management continues to guide for old hospitals’ EBITDA margin to expand to 23%. Revenue at Rs 2.55 bn, up 20% y-y and 2% below our estimate.

Apollo Hospitals (APHS) reported Q1FY20 results on August 13. News

HDFC ratings | Neutral — A stable showing in challenging times

Overall, HDFC Ltd continues to navigate well in the current environment and remains the most resilient within our NBFCs/HFCs coverage.

HDFC, HDFC ratings, challenging times, mortgage business, Corporate NPA, HDFC Ltd, market news

Analyst corner | Maintain ‘buy’ on Max Financial, target price Rs 550

The shareholding structure is cleaner now, we believe, and factors in the potential for collapsing the two companies (Max life and MFSL) into a single entity, but as of now it does not provide clarity on a distribution tie-up

Term insurance plan, GST, Return of Premium, term plan, investment, life insurance News

Zee Entertainment Enterprises Rating: Buy; Stake sale partially addresses concerns

Sale of more assets critical for investor confidence; higher working capital is important too; valuation’s attractive; ‘Buy’ retained

Zee Entertainment Enterprises, Zee Entertainment revenue, Zee Entertainment rating, Zee Entertainment annual report, Zee Entertainment earnings metrics, Zee Entertainment market, Zee Entertainment shares, Zee Entertainment stocks, Zee Entertainment earnings, Zee Entertainment sales News

Kotak Bank rating | A soft quarter but things are looking up

While pricing scenario is improving, there is risk to FY20 earnings; stock could see consolidation due to valuation; ‘Neutral’ retained

Kotak Bank rating, Kotak Q1FY20, HDFC Bank, ICICI Bank, Kotak Prime, Kotak Bank Gross NPA News

Analyst corner: Stable quarter for HDFC Bank in a tough environment

Higher core PPOP was used up in provisions of Rs 2,600 crore, as the bank built contingency provisions of Rs 85 crore towards HFC/NBFCs and Rs 165 crore towards other corporate sectors as a prudent measure given the ongoing l

Markets News

Analyst corner | IndusInd Bank: Maintain ‘Buy’, target price at Rs 1,775

Operationally, growth can be a near-term challenge, but with the rate cycle reversing, margin clearly looks to have bottomed out for IIB. With 110/85bps credit costs, flat margins and lower corporate fee intensity, we expect

IndusInd Bank, Buy, target price, IndusInd bank, IndusInd bank share, market news

Stock corner: ‘Neutral’ on TCS, growth in Q1 came as a disappointment

TCS moderated its commentary on growth and is now hinting at sustaining double-digit growth vs acceleration earlier. We continue to expect 9% CC revenue growth for FY20F.

Stock corner, TCS, Q1 result, GDP growth, PMI, markets news, TCS news, TCS share News

Stock corner: ‘Buy’ Zee Entertainment Enterprises, cash flow was nominal in FY19

Despite estimates of 12/11% ad/subscription growth in FY20F, near-term growth is expected to be weak due to FMCG slowdown and new tariff order; ‘Buy’ retained

Markets News

Stock corner: ‘Buy’ Bank of Baroda shares, merger impact on net worth met estimate

BOB has taken a hit of Rs 70 bn of net worth which is broadly in line with what management had indicated.

Bank of baroda, Bank of baroda buy, Bank of baroda stock, Bank of baroda share, Bank of baroda profit loss, Bank of baroda director News

H1B visa: US may not go in for quotas yet — here’s why

This is likely to impact companies under our coverage given their higher dependence on H-1B visas. As per USCIS data for FY16/17, India accounted for 62-63% of the approved H-1B petitions for initial employment, 80-81% for co

H1B visa, US, india, H1B visa news, H1B visa status, H1B visa process, H1B visa usa, H1B visa quota News

H-1B visa: Probability of cap low in the near term

In what has been widely viewed as a retaliatory measure, the US plans to impose a 10-15% cap on the annual quota of 85k H-1B visas on countries with a data localisation policy.

H-1B visa, Personal Data Protection Bill, H-1B petitions, foreign companies, industry news

Analyst Corner: Auto wholesale volume likely to fall sharply in June

Given the challenging environment, there exists downside risk to our FY20 estimates across all auto segments.

auto sector, auto industry News

LPC debt could rise on JB Chemicals acquisition

The prominent deals include Torrent Pharma’s acquisition of Unichem and Elder Pharma brands in India, acquisition of UCB’s brands by Dr Reddy’s and acquisition of Stride Pharma’s brand by Eris Lifesciences.

cash, liquidity, digital payment, digital india, digital transaction, RBI News

Stock corner: Cutting Fortis target price to Rs 159 on lower EBITDA estimate – Nomura

The previous fiscal was challenging for FORH, with uncertainties surrounding ownership and tight liquidity conditions. FORH’s hospital business recorded an EBITDA decline of 33% in FY19.

Markets News

Stock corner: ‘Reduce’ Ceat shares, margins likely to be subdued in near term

Demand recovery, market share gains are critical; rising net debt/equity and low RoCEs make valuation dear; ‘Reduce’ maintained.

Markets News

Analyst Corner: Expect 11 pct volume growth for Shree Cement, TP Rs 21,500

SRCM has now shifted focus on improving realisation (vs volume growth earlier). While it is adding 5.5mtpa new cement capacity in east India, it may be constrained by clinker capacity.

india cements, n srinivasan News

Stock corner: ‘Buy’ Apollo Hospitals, FY19 marked a turnaround for the company

Expansions in new hospitals and AHLL, price controls by the GoI, slow volume growth and low pricing power were the key drags.

Markets News

PNC Infratech enters strong phase of revenue growth

PNCL has been awarded arbitration claims of Rs 1.4 bn against the National Highway Authority of India (NHAI) and Rs 0.31bn from a state road project.

PNCL has been awarded arbitration claims of Rs 1.4 bn against the National Highway Authority of India (NHAI) and Rs 0.31bn from a state road project. (Representative image) News

Mahindra Rating | Buy — Quarter results were ahead of estimates

FY20/21F EPS down 6/8% on lower EBITDA and higher capex/investment; TP cut to `827; valuations attractive

Mahindra Rating, EBITDA, LCV/tractor growth, tractor industry, Mahindra Quarter results News

JSW Steel Rating | Buy — Showing beat Street figures on all counts

Q4 saw market share gain for company; Q1FY20F is expected to be relatively stable; ‘Buy’ maintained

JSW Steel, GST regime, Private consumption, Fitch ratings, Tata Steel, metal stocks, Fitch Group, India Ratings & Research, Chinese exports News

Stock corner: Long term story of Cropmton Greaves Consumer Electricals’ unchanged; TP fixed at Rs 300

Revenue at Rs 3.4 billion (up 1% y-o-y, 7% q-o-q) was in line.

crompton greeves, nomura News

Bajaj Auto: Q4 was in keeping with expectation

It said 3W demand is likely to remain tepid in the near term due to a slowdown in India and Egypt.

Markets News

Analyst corner | Amara Raja: Margins to improve to 15.7% in FY20

Revenues were lower y-o-y due to a 13% y-o-y decline in lead prices that was passed on in all segments ex-Replacement. Given the slower OEM growth, we think Replacement 4W battery volume may slow to 6% y-o-y in FY21 from 10%

Amara Raja: Margins to improve to 15.7% in FY20 News

ICICI Bank Rating: Buy; Q4 was in line for estimates operationally

PPoP trend is improving; RoEs of 15.5/16.2% likely by FY21/22F; TP up to Rs 500; one of top picks in the sector.

Markets News

Max Financial Rating| Buy — Valuations are factoring in binary risks

TP raised to Rs 550 from Rs 492 on rollover to Mar’21F and improving business mix

Max Financial Rating, Max Financial, PAR share, ULIP share, APE growth, VNB margins News