Articles By Nomura

446 Articles

GAIL rating: Reduce — Impact of Covid on demand makes outlook bleak

Marketing may be hit most; FY21/22 EPS down 43-46%; downgraded to ‘Reduce’ with TP lowered to Rs 85

oil and gas company, US companies, dharmendra pradhan, oil minister

Britannia rating: Buy — Quarter performance came as positive surprise

April and May saw strong sales growth; FY20/21/22e PAT up 4/10/11%; ‘Buy’ retained with TP rising to Rs 4,000 from Rs 3,595

Motherson Sumi: Maintain ‘buy’ with lower target price of Rs 118

Overall, we cut our consolidated revenue estimates by ~8% and Ebitda by ~12% in FY22F.

Nestle India rating: Recommend ‘neutral’ with target price of Rs 17,250

We expect consumption of RTC foods to increase in a post-Covid world. Nestle’s products in this category — Maggi Noodles, Pazzta, Upma, Poha —could see significant demand growth.

Sun Pharma rating: Buy — Quarter results were in line with estimates

Higher than expected sales of specialty and improving traction in Ilumya were key positives; ‘Buy’ maintained with target price of Rs 525

Kotak Bank Rating: Neutral — A marginally positive performance in Q4

Company is best placed across metrics though current cycle will impact it; ‘Neutral’ maintained as valuations are rich

Kotak Mahindra Bank, has comfortably pipped all lenders in the world to become the most expensive bank stock, a crown which until recently belonged to none other than HDFC Bank.

Analysts Corner | IndusInd Bank rating ‘buy’; liability weakness comes to the fore

Deposit outflow post Yes Bank crisis a surprise; corrective steps raise hope; valuations offer comfort; ‘Buy’ retained.

GAIL – Rating: Buy; Valuations factor in the worst

Since the disappointing Integrated HVJ tariff order on 4-June-19, GAIL’s share price has de-rated significantly (-57% since end-May vs. NIFTY -23%).

GAIL, OIL, PSU, AGR case, Supreme Court, telecom firms, RailTel, Vodafone Idea, airtel, AGR liabilities, bharti airtel

Analyst corner: GAIL ‘buy’ rating maintained; Valuations factor in the worst

FY20e EPS down 3% and FY21/22e EPS cut by 33%; TP reduced to Rs 140 from Rs 190; ‘Buy’ maintained

Analyst Corner: Maintain ‘buy’ on KEC International, Target Price Rs 412

Maintain buy with TP raised to Rs 412, implying 18% upside in KEC’s 3QFY20 sales at Rs 30.7bn (+16% y-o-y), marginally (~2%) below our estimates but in line with consensus.

KEC, working capital, rail segment, indian railways, kec international

Adani Ports: Neutral — Miss on results, but volumes outlook better

Addition of 400kTEU pa of container lines and ramp-up of LNG & LPG volumes key positives; ‘Neutral’ retained

Adani Ports, Adani Logistics margins, Adani Harbour, LPG, LNG volumes, ADSEZ

Torrent Pharma rating | Neutral — Higher other income, cost cuts aided profit

FY20/21/22 EPS up 4/5/1%; TP raised to `2,227; stock downgraded to ‘Neutral’

L&T Rating | Buy — Execution issues impact numbers

We had noted in an earlier report that due to commodity price declines, we expect a 55-60bp y-o-y improvement in core Ebitda margin in 1HFY21, which we view as a key catalyst for the stock.

Larsen & Toubro Rating ‘buy’: Execution issues impact numbers

Improvement in core Ebitda margin key positive; project deferrals expected to be resolved soon; ‘Buy’ maintained

Larsen & Toubro, Larsen & Toubro shares, Larsen & Toubro result

Reliance Industries Rating: Buy; Quarter was in line with expectations

Weak petchem showing was offset by refining and retail; outlook for Jio stays bright; ‘Buy’ maintained with TP of Rs 2,020.

reliance, reliance industry

Insurance: December witnessed some pick-up in growth

Barring HDFC Life, growth expected to be moderate for insurers in FY20; re-rating makes outlook less positive

december, december growth

Mutual Funds: Equity inflows normalise after weak November

Debt/liquid flows showed no signs of recovery in Dec, leading to continued funding constraints for NBFCs and HFCs

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Analyst Corner: Margin pressures to continue onrising onsite costs in IT services

Moderation in y-o-y growth is likely to be driven by weakness in BFSI/Retail (45-50% of revenues for Tier-1 IT), higher-than-usual furloughs and client-specific issues.

Analyst Corner, IT service, CTSH, market news, HCLT, TCS, BFSI, Retail

Adani Ports & SEZ rating ‘neutral’: KPCL deal in likely to be value-accretive

The acquisition of KPCL significantly increases ADSEZ’s footprint on the East Coast and should increase access to the southern hinterland around Andhra Pradesh. Further, we assess that the likely change in industry concentr

Adani Ports, SEZ, rating, KPCL, ADSEZ, market news, capex

Stock corner: ‘Buy’ on Sun Pharma with a target price of Rs 525

Sun Pharma now has an additional injectable site at Baska and, hence, to that extent, its dependence on Halol for injectable launches might be lower, in our view.

Analyst corner | TechM well placed for high-single-digit growth

The three key mega trends are an increase in connected devices (~8bn), proliferation of new age technologies and a rise in video content consumption.

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Stock corner: ‘Neutral’ on Yes Bank, risk to status as a going concern has gone up

Given that fund raise plans have got fuzzier, there is a danger of the company breaching regulatory limits; ‘Neutral’ retained.

Redemptions took heavy toll on Mutual Fund inflows in November

Redemptions in Nov-19 were at Rs 310 bn vs. Rs 220 bn of run-rate in CYTD19. Credit risk funds continued to see outflows, given increased risk aversion. AUM growth both in equities and overall has turned positive at 13-14% y-

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Stock corner: Initiate with ‘Buy’ with TP of Rs 388 for KEC International

Synergistic diversification into new verticals to drive growth in the near term: KEC has witnessed strong growth in Railways (sales doubling each year over FY16-19), and management expects a similar growth trajectory in th

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Stock corner: ‘Buy’ on Dr Reddy’s Laboratories, target price at Rs 3,200

China and Hospital Institutional sales are expected to scale up substantially over time, according to management. India is the key focus market, where the company expects to sustain growth ahead of the broader market.

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Stock corner: ‘Neutral’ on Yes Bank, quality of investors remains an issue

While a successful $2-bn fund raise would address survival concerns, PPOP recovery is going to be gradual; ‘Neutral’ retained

Quality of investor, Yes Bank management, SPGP, Erwin Singh Braich, Citax Holding, NOMURA, SEBI formula

Passenger vehicle volumes likely to be stable in November

2Ws estimated to see dip of 7% y-o-y; MHCVs likely to log fall of 44% due to weak demand, inventory clearance

automobile sales in november 2019: Hyundai Motor sales up 7 pc in November, Mahindra total sales down 9 pc
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