Research Reports published by CENTRUM BROKING

SBI Home Finance Ltd.    
15 Nov 2018
Centrum Broking
We retain Buy on State Bank of India (SBIN) with SOTP-based TP unchanged at Rs350. Q2FY19 results were an extension of positive trends witnessed in recent past across key ratios domestic margins, loan growth, slippages and asset recovery and return ratios. Commentaries across each of the above aspects remain positive (unchanged since last quarter). Watchlist portfolio stands reduced to 1.04% (vs 1.3% as at FY18); management has reiterated its stance on moderation in slippages / credit cost for FY19E. Capital position remains strong, subsidiaries profitable. Valuations at 1.4x...
Centrum Broking
Strong execution leads to massive growth, retain Hold We remain structurally positive on Ratnamani Metals & Tubes (RMTL) but retain our Hold rating with a revised TP of Rs985 (vs Rs940 earlier) on the back of limited upside potential with strong growth outlook largely factored in at current valuations. Q2 performance was well above expectations with solid EBITDA growth of 127% YoY & 28% QoQ led by strong execution of previous orders. We continue to believe in RMTL's long-term growth story, with expected strong domestic capex over FY19-22E and...
Ratnamani Metals & Tubes Ltd. has gained 28.12% in the last 6 Months
Centrum Broking
We maintain our positive stance on Oriental Carbon & Chemicals (OCCL) and retain Buy with a revised TP of Rs1575. Q2 performance was strong with EBITDA/PAT growth of 32%/42% YoY. We continue to remain positive on company's prospects led by solid demand outlook for IS in domestic market led by fast paced growth of domestic tyre manufacturers and opportunity for gaining market share globally led by higher penetration in new geographies of US & China. Consolidated margins are expected to improve over FY18-20E led by i) higher share of IS business with increasing volumes coupled with benefits of operating leverage and...
Oriental Carbon & Chemicals Ltd. has gained 60.34% in the last 1 Year
Sun TV Network Ltd.    
05 Nov 2018
Centrum Broking
Q2FY19 result highlights: Revenue for Sun TV Network was up 10.9% to Rs7.5bn (1.6% above expectation) on the back of 3.3% YoY growth in advertisement revenue, 19.6% YoY growth in DTH revenues and 27.7% YoY growth in digital revenues. Operating profit was up 11.7% YoY to Rs5.5bn on the back of 51bps margin expansion as employee cost and other expenses were down 5.1%/16.5% respectively. Depreciation and movie amortisation cost was down 20.3% due to lower movies broadcasted in the quarter. PAT rose 23.4% YoY to Rs3.5bn (17.8% above expectations) due to higher other income....
Sun TV Network Ltd. has an average target of 588.00 from 5 brokers.
CARE Ratings Ltd.    
05 Nov 2018
Centrum Broking
We retain BUY on CARE with revised TP at Rs1,550 (vs. Rs1,600 earlier). Q2'19 revenue / PAT were below estimates. This is even as volume of debt rated grew 32.6% YoY and points to pricing pressure. The growth in high-yielding non-BLR segment remains muted (down 3% YoY for H1'19); we foresee trends to continue in H2'19 and have thus trimmed our overall volume growth assumptions for FY19E. In the backdrop of concerns around rating downgrade / delay in rating changes, CARE has strengthened its rating standards further. We will watch for outcome therein. We like CARE for its business model, return ratios and free cash...
CARE Ratings Ltd. has gained 24.03% in the last 1 Week
Hindalco Industries Ltd.    
02 Nov 2018
Centrum Broking
We maintain buy on Hindalco (HNDL) with a TP of Rs340. HNDL's domestic aluminium business beat expectations again despite cost pressures (blended EBITDA/t at US$597 on Utkal inclusive basis) led by industry leading cost positioning and optimum utilisations. Novelis' performance was best ever (EBITDA/t at US$440) and guidance was strong. We like HNDL on account of i) strong earnings visibility from low cost domestic aluminium asset base, ii) increasing proportion of value added downstream conversion business EBITDA share in consolidated entity with acquisition of Aleris and increasing automotive share at Novelis, iii) high FCF...
Hindalco Industries Ltd. is trading above it's 200 day SMA of 274.9
Axis Bank Ltd.    
02 Nov 2018
Centrum Broking
We retain HOLD on Axis Bank with TP revised upwards to Rs560 (valued at 2x FY20E ABV) . Q2'19 results were in-line with our estimates on revenue / operating front. Slippages came in lower (2.4% of loans); provision coverage therein has improved further. The share of vulnerable pool is now at a meagre 1.7% of customer assets and provides greater comfort. Capital position remains strong and will cushion asset growth in the credit up-cycle. While we see levers in place, we would await for better clarity on long-term growth strategy for the bank under the leadership of the new management (change of guard will be effective from...
Axis Bank Ltd. has an average target of 771.08 from 14 brokers.
City Union Bank Ltd.    
02 Nov 2018
Centrum Broking
We retain Hold on CUBK with TP at Rs160 (valued at 2.2x FY20E ABV). Q2'19 revenue beat estimates on strong margin performance; PAT though was as per expectations. Loan growth remains healthy (consecutive fourth quarter of 17%+ YoY growth); asset quality intact with coverage (incl. tech w/off) healthy at 65%; capital position remains strong (CAR / Tier-I at 15.1% / 14.7% respectively). We like CUBK for its...
City Union Bank Ltd.'s price crossed below SMA50 today
Can Fin Homes Ltd.    
25 Oct 2018
Centrum Broking
Can Fin Homes Ltd (CFHL) reported muted growth in Q2FY19 with net interest income (NII), pre-provisioning profit (PPP) and net profit increasing in single digits each. The loan growth remained close to 17% YoY (up ~5% QoQ) to 16,935 crore as on 30 Sept'18, the slowest pace in several years. However, on the bright side, the asset quality improved marginally with gross and net NPAs down 3bps QoQ to 0.63% and 2bps to 0.42%, respectively. View: During H1FY19, the stock of CHFL has witnessed ~46% correction partly due to mounting concerns of asset-liability mismatch, slowing loan growth, higher...
Can Fin Homes Ltd. is trading above it's 200 day SMA of 493.6
Centrum Broking
We maintain Sell rating on GlaxoSmithKline Pharma (GSK) and revise our TP to Rs950 (earlier Rs1,900 cum bonus) based on 24x March'20E EPS of Rs39.6. GSK's Q2FY18 results were better than our estimates. GSK's revenue declined by 2%YoY, EBIDTA margin dropped 280bps to 20.2% and net profit before EO item declined by 10% YoY on a higher base in Q2FY18 after GST implementation. GSK's major brands grew by high single digit to double digit during the quarter. That said, the company has a strong presence in the vaccines segment and derives ~20% revenues from the same. Key risks to our assumptions include...
GlaxoSmithKline Pharmaceuticals Ltd. is trading above all available SMAs