Multi Commodity Exchange of India Ltd.    
16 Jan 2019, 10:35AM
HDFC Securities
Maintain BUY with a TP of Rs 957, implying a P/E of 30x to Dec-20E core earnings and adding back net cash. MCX delivered good set of numbers in 3QFY19. Revenue was up 8.2% QoQ to Rs 0.77bn (in-line with our est. of Rs 0.77bn), led by 7.9% QoQ increase in volume (Rs 17.03tn). MCX maintained its market share at 91% and ADTV grew 7.9% QoQ, despite increased competition from NSE & BSE. EBITDA margin was down 496bps QoQ to 27.2% largely due to higher other expenses. Excluding one-off margin was up 89bps QoQ to 33.1% but still below our estimate of 34.9%. Hedging activity in bullions is witnessing increased traction with open interest built up while metals volume is impacted due to shift from cash to physical settlement.
Multi Commodity Exchange of India Ltd. is trading above it's 100 day SMA of 744.78
Zee Entertainment Enterprises Ltd.    
16 Jan 2019, 06:50AM
HDFC Securities
At 27/24x FY19/20E EPS, Zee's valuations look reasonable given its superior growth and execution. Reiterate BUY with TP of Rs 512 @ 25x Dec-20E EPS. Zee delivered yet another strong quarter on all the operating parameters viz. ad, subscription and margins. This is despite ongoing investments in digital (ZEE5). In 3QFY19, revenue/EBITDA/APAT grew by 18/27/44% YoY. Even in 9MFY19, revenue/EBITDA/APAT grew by healthy 19/27/31%.
Zee Entertainment Enterprises Ltd.'s price crossed above SMA100 today
World Economy and Markets    
TREND | 16 Jan 2019, 12:00AM
Axis Direct
Asian markets are trading lower as investors remain cautious amid uncertainties over the Brexit deal after UK lawmakers rejected Prime Minister Theresa May's proposal. Nikkei is trading lower by 0.82%, Shanghai is trading lower by 0.02% and Hangseng is trading lower by 0.13%. Indian indices are ex..
Axis Direct released a Daily Note report for World Economy and Markets on 16 Jan, 2019.
Tata Consultancy Services Ltd.    
16 Jan 2019, 12:00AM
Buy: TCS
Axis Direct
Tata Consultancy Services (TCS) the largest IT services exporter in India has witnessed strong demand in Q3FY19 across segments. Strong traction was also seen in digital space, digital space reported strong growth of 53% for Q3 FY19 on YoY basis.
Number of FIIs/FPIs holding stock rose by 95 to 1365 in Sep 2018 qtr.
Lemon Tree Hotels Ltd.    
16 Jan 2019, 12:00AM
Nirmal Bang Institutional
We had a meeting recently with the management of Lemon Tree Hotels. The key takeaways are as follows: 1. Occupancy rate and ARR continue to improve. 2. Strong room addition primarily through management contracts. 3. Changing mix of guests to aid ARR growth. 4. Negative working capital helps in keeping the balance sheet healthy. We have retained Buy rating on the stock with a target price of Rs92. Occupancy rate and ARR continue to improve: Hotel industry is not only a cyclical business, but also a seasonal business. The management informed us that the occupancy rose from 78% in 2QFY19 to around 79% in 3QFY19. In some markets the...
Lemon Tree Hotels Ltd. is trading at high day volume of 425.6K.
India Macro Indicators    
TREND | 16 Jan 2019, 12:00AM
Nirmal Bang Institutional released a Economy Update report for India Macro Indicators on 16 Jan, 2019.
Pharmaceuticals & Biotech.    
SECTOR | 16 Jan 2019, 12:00AM
Nirmal Bang Institutional
Cipla is expected to report a strong performance in the US market aided by ramp-up in Albendazole and Voltaren gel generics. Albendazole generic - Cipla has ramped up market share to 48%. The company launched...
Nirmal Bang Institutional released a Sector Update report for Pharmaceuticals & Biotech. on 16 Jan, 2019.
Petronet LNG Ltd.    
16 Jan 2019, 12:00AM
BOB Capital Markets Ltd.
Our meeting with the Petronet LNG (PLNG) management reinforces our core investment thesis (a) Competing terminals are facing start-up issues/delays (esp. Mundra), alleviating concerns for Dahej, and (b) PLNG's volumes are tracking to expand by ~4mmtpa over FY19-FY22 on favourable demand. We trim FY19-FY21 earnings by 2-6% on low volumes in FY19, and revise our Sep'19 target price to Rs 325 (from Rs 340). Attractive dividend...
Petronet LNG Ltd.'s price crossed above SMA50 today
HDFC Securities
We prefer MMFS (TP Rs 500, 2.75x Dec-20E ABV of Rs 175 + Rs 18 for MBIL) and CIFC (TP Rs 1,616, 3.25x Dec-20E ABV of Rs 497) among asset financiers. In the HFC pack, LICHF (TP Rs 534, 1.5xDec-20E ABV of Rs 356) offers value, despite its low pricing NBFCs have grown significantly ahead of Indian aggregate credit over the last decade (19% CAGR vs. overall credit growth of 14%). This growth can be attributed to both intrinsic and extrinsic factors. Intrinsic factors include their ability to (1) Deliver credit to customers that banks cannot reach, (2) Develop niche credit segments and sticky customer relationships, and (3) Price risk appropriately and manage the lending cycle efficiently.
HDFC Securities increased Buy price target of Cholamandalam Investment & Finance Company Ltd. to 1616.0 on 15 Jan, 2019.
Market Movement    
TREND | 15 Jan 2019
HDFC Securities
We believe this is an interesting time to track net inflows to these savings options, as SEBI has banned upfront commission payouts for MF sales by AMCs, while life insurers continue to pay out heavily. We believe this tilts the scale in favour of the insurers, as we expect distributors will push insurance (ULIPs) given the higher commissions and upfronting of payouts. In this context, Dec-18 seems to be a month where growth rates at life insurers (+17% YoY, +54% MoM) have overtaken asset managers (-74% YoY, -23% MoM). Private life insurers individual NBPs grew 17% YoY to Rs 51bn in Dec-18 (FY19TD growth 15%), recovering after a bleak Nov-18 where growth was just 2%. Mutual fund equity (ex. arbitrage and ETF) net inflows on the other hand declined to a 30-month low of Rs 67bn in Dec-18 i.e. 40.6% below FY19TD monthly average of Rs 112bn.
HDFC Securities released a Sector Update report for Market Movement on 15 Jan, 2019.