Research Reports published by HDFC SECURITIES

Dodla Dairy Ltd.    
14 Jun 2021, 12:58PM
HDFC Securities
Dodla Dairy Limited IPO Note Issue Open: June 16 June 18, 2021 Price Band: Rs. 421 428 *Issue Size: 12,153,668 eq shares (Fresh issue of 1,168,224 eq sh +offer for Sale of 10,985,444 eqs h ) Issue Size: Rs.511.7 520.2cr Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail Upto 35% eq sh
DLF Ltd.    
14 Jun 2021, 06:47AM
299.20
-3.50%
buy
Buy: DLF Ltd.
HDFC Securities
We maintain BUY on DLF, with increased target price of INR 360/sh (roll forward to FY23E, reduce cap rate to 8.5% vs 9.2% earlier and assume 0-5% price increases across projects in line with DLF commentary). DLF: Presales during the quarter remained flattish at INR 10.6bn vs INR 10.2bn QoQ. While office collection remains robust at 100%, occupancy at DCCDL further declined to 89% from 91% at Dec 20-end. Consumption at retail malls reached 90% of 4QFY20 level during the quarter, with footfalls at 81%. Relief to retailers would be on similar lines as extended during the first lockdown. DLF is targeting INR 40bn presales in FY22 on the back of 7msf launches and expects office occupancy at pre-COVID level by FY23. Gradual recovery in presales, strong launch pipeline, and REIT plans for DCCDL could warrant a rerating.
Number of FII/FPI investors increased from 475 to 486 in Mar 2021 qtr.
Sona BLW Precision Forgings Ltd.    
14 Jun 2021, 03:02AM
HDFC Securities
Sona BLW Precision Forgings Limited IPO Note Issue Open: June 14 June 16, 2021 Price Band: Rs. 285 291 *Issue Size: 190,721,649 eq shares (Fresh issue of 10,309,278 eq sh (Rs 300 cr) +offer for Sale of 180,412,371 eq sh (Rs.5250 cr)) Issue Size: Rs. 5435.6 5550.0 cr Reservation for: QIB atleast 75% eq sh Non Institutional Upto 15% eq sh Retail Upto 10% eq sh
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HDFC Securities released a IPO Note report for Sona BLW Precision Forgings Ltd. on 14 Jun, 2021.
NHPC Ltd.    
12 Jun 2021
buy
Accumulate: NHPC Ltd.
HDFC Securities
Deccan Cement: In 4QFY21, Deccan Cement's (DECM) utilisation firmed up to 94%, riding on strong demand in the Andhra Pradesh and Tamil Nadu markets. Along with low base of last year, this has led to 50% YoY (4% QoQ) volume uptick. While NSR cooled off 1% QoQ, it remained 13% higher YoY. These drove revenue/EBITDA/APAT by 73/227/ 231% YoY. Elevated maintenance expense more than offset op-lev gains and WHRS benefits. DECM's 2mn MT expansion is expected to gain pace FY22 onwards once COVID impact normalises. A net cash balance and healthy profit outlook should keep leverage under check. We retain ADD rating on the stock with an unchanged target price of INR 610/share (6x its Mar'23 EBITDA). NHPC: NHPCs revenue declined to INR 20.9bn (-30%/-36% YoY/QoQ) in Q4FY21, given 21.6% YoY fall in generation due to shutting down of the Sewa unit and lower water availability in the reservoir. EBITDA also declined 34.6% YoY to INR5.1bn on the back of lower revenue. Depreciation declined 38.8% YoY to INR2.4bn while other income increased 13.4% YoY due to higher late payment surcharge income. After adjusting for one-offs related to provisions for Tawang and Sewa, adjusted PAT declined by 20% YoY to INR4.8bn in Q4FY21, while reported PAT was up 5.6% YoY to INR4.0bn. We have revised our SoTP target price to INR29 from INR27 earlier (+ 9% from the CMP, valuation - core business 1.3x P/BV, RoE 10.0%, CoE 13.5% and FY23BV of INR36/share), factoring in improved cash flow and cash balances in FY21. Full dividend for FY21...
NHPC Ltd. is trading above all available SMAs
Deccan Cements Ltd.    
12 Jun 2021
541.20
0.98%
HDFC Securities
Deccan Cement: In 4QFY21, Deccan Cement's (DECM) utilisation firmed up to 94%, riding on strong demand in the Andhra Pradesh and Tamil Nadu markets. Along with low base of last year, this has led to 50% YoY (4% QoQ) volume uptick. While NSR cooled off 1% QoQ, it remained 13% higher YoY. These drove revenue/EBITDA/APAT by 73/227/ 231% YoY. Elevated maintenance expense more than offset op-lev gains and WHRS benefits. DECM's 2mn MT expansion is expected to gain pace FY22 onwards once COVID impact normalises. A net cash balance and healthy profit outlook should keep leverage under check. We retain ADD rating on the stock with an unchanged target price of INR 610/share (6x its Mar'23 EBITDA). NHPC: NHPCs revenue declined to INR 20.9bn (-30%/-36% YoY/QoQ) in Q4FY21, given 21.6% YoY fall in generation due to shutting down of the Sewa unit and lower water availability in the reservoir. EBITDA also declined 34.6% YoY to INR5.1bn on the back of lower revenue. Depreciation declined 38.8% YoY to INR2.4bn while other income increased 13.4% YoY due to higher late payment surcharge income. After adjusting for one-offs related to provisions for Tawang and Sewa, adjusted PAT declined by 20% YoY to INR4.8bn in Q4FY21, while reported PAT was up 5.6% YoY to INR4.0bn. We have revised our SoTP target price to INR29 from INR27 earlier (+ 9% from the CMP, valuation - core business 1.3x P/BV, RoE 10.0%, CoE 13.5% and FY23BV of INR36/share), factoring in improved cash flow and cash balances in FY21. Full dividend for FY21...
Deccan Cements Ltd. average weekly volume is high.
GAIL (India) Ltd.    
11 Jun 2021
163.15
-0.37%
HDFC Securities
Star Cement: Star Cement reported a weak show in 4QFY21. Consolidated revenue rose 10% YoY to INR 6.03bn on 4/12% volume/NSR growth. However, EBITDA declined 16% YoY to INR 1.04bn due to significant cost inflation. Lower tax rate moderated APAT (at INR 853mn) decline to 1% YoY. We expect margin to expand FY22 onwards on production ramp-up. We maintain our BUY rating with a revised our target price of INR 125 (8x FY23 consolidated EBITDA). GAIL (India): Our BUY recommendation on GAIL with a price target of INR 195 is based on 9% CAGR expansion in gas transmission volume over FY21-23E to 124mmscmd on the back of (1) increase in domestic gas production, (2) increase in demand of RLNG, and (3) completion of major pipelines in the eastern and southern parts of India. 4QFY21 EBITDA/APAT were 7/7% below our estimates owing to higher-than-expected raw material cost and operating expenses, offset by an 8% rise in revenue and lower-than-expected finance cost and tax outgo.
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GAIL (India) Ltd. has gained 69.33% in the last 1 Year
HDFC Securities
Shyam Metalics and Energy Limited - IPO Note Issue Open: June 14 June 16, 2021 Price Band: Rs. 303 306 ( Discount of Rs 15 for eligible employees) *Issue Size: 29,705,882 eq shares (Fresh issue of 21,470,588 eq sh (Rs.657 cr) +offer for Sale of 8,235,294 eqs h ) Issue Size: Rs.909.0 cr Reservation for: QIB Upto 50% eq sh Non Institutional atleast 15% eq sh Retail Upto 35% eq sh
ICICI Securities Limited released a IPO Note report for Shyam Metalics and Energy Ltd. on 14 Jun, 2021.
Max Financial Services Ltd.    
10 Jun 2021
1000.60
-1.61%
HDFC Securities
Teamlease Services: Teamlease registered strong growth (+5.1% QoQ) for the second consecutive quarter, in line with our estimate. Growth in core staffing (+5.5% QoQ, 91% of revenue) was led by improved hiring activity in e-commerce, essential retail, BFSI and manufacturing verticals. Stressed verticals like hospitality, retail and travel are not showing signs of recovery though. The core associate headcount growth has been robust (+7.5% QoQ, crossed the pre-COVID level), led by NETAP (+17.5%). The recovery which started in 2HFY21 will be impacted in 1QFY22E by the second wave, but clients are showing resilience and ~80% of the associates being hired are for essential services. Margin came in lower than expected as higher discounts were given to clients, leading to lower realisation (-3.5%), offset by enhanced productivity (+5.4% QoQ). Cash generation has also improved due to lower withholding tax, tax refunds, and lower DSO days (YoY). Going ahead, we expect gradual margin expansion with recovery in growth (by 2HFY22E), improved productivity, better business mix (higher-margin specialised staffing) and low costs of hiring. We cut our EPS estimate by -5.5/-3.4% for FY22/23E to factor in the impact of the second wave of COVID. Our target price of INR 3,950 is based on 38x FY23E EPS (five-year average PE of ~35x). The stock is trading at a PE of 50/35x FY22/23E. Maintain BUY. Max Financial: MAXL delivered an APE growth of 36/57% YoY/QoQ (6% miss vs. estimates). VNB margin for the full year came in at 25.2% (+358bps YoY), led by higher share of NPAR business and better fixed...
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Promoters unpledged 2.67% of shares in last quarter. Total pledge stands at 84.53% of promoter holdings
Petronet LNG Ltd.    
10 Jun 2021
232.75
0.43%
HDFC Securities
Teamlease Services: Teamlease registered strong growth (+5.1% QoQ) for the second consecutive quarter, in line with our estimate. Growth in core staffing (+5.5% QoQ, 91% of revenue) was led by improved hiring activity in e-commerce, essential retail, BFSI and manufacturing verticals. Stressed verticals like hospitality, retail and travel are not showing signs of recovery though. The core associate headcount growth has been robust (+7.5% QoQ, crossed the pre-COVID level), led by NETAP (+17.5%). The recovery which started in 2HFY21 will be impacted in 1QFY22E by the second wave, but clients are showing resilience and ~80% of the associates being hired are for essential services. Margin came in lower than expected as higher discounts were given to clients, leading to lower realisation (-3.5%), offset by enhanced productivity (+5.4% QoQ). Cash generation has also improved due to lower withholding tax, tax refunds, and lower DSO days (YoY). Going ahead, we expect gradual margin expansion with recovery in growth (by 2HFY22E), improved productivity, better business mix (higher-margin specialised staffing) and low costs of hiring. We cut our EPS estimate by -5.5/-3.4% for FY22/23E to factor in the impact of the second wave of COVID. Our target price of INR 3,950 is based on 38x FY23E EPS (five-year average PE of ~35x). The stock is trading at a PE of 50/35x FY22/23E. Maintain BUY. Max Financial: MAXL delivered an APE growth of 36/57% YoY/QoQ (6% miss vs. estimates). VNB margin for the full year came in at 25.2% (+358bps YoY), led by higher share of NPAR business and better fixed...
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HDFC Securities released a Buy report for Petronet LNG Ltd. with a price target of 270.0 on 10 Jun, 2021.
Galaxy Surfactants Ltd.    
10 Jun 2021
3098.80
0.13%
HDFC Securities
Teamlease Services: Teamlease registered strong growth (+5.1% QoQ) for the second consecutive quarter, in line with our estimate. Growth in core staffing (+5.5% QoQ, 91% of revenue) was led by improved hiring activity in e-commerce, essential retail, BFSI and manufacturing verticals. Stressed verticals like hospitality, retail and travel are not showing signs of recovery though. The core associate headcount growth has been robust (+7.5% QoQ, crossed the pre-COVID level), led by NETAP (+17.5%). The recovery which started in 2HFY21 will be impacted in 1QFY22E by the second wave, but clients are showing resilience and ~80% of the associates being hired are for essential services. Margin came in lower than expected as higher discounts were given to clients, leading to lower realisation (-3.5%), offset by enhanced productivity (+5.4% QoQ). Cash generation has also improved due to lower withholding tax, tax refunds, and lower DSO days (YoY). Going ahead, we expect gradual margin expansion with recovery in growth (by 2HFY22E), improved productivity, better business mix (higher-margin specialised staffing) and low costs of hiring. We cut our EPS estimate by -5.5/-3.4% for FY22/23E to factor in the impact of the second wave of COVID. Our target price of INR 3,950 is based on 38x FY23E EPS (five-year average PE of ~35x). The stock is trading at a PE of 50/35x FY22/23E. Maintain BUY. Max Financial: MAXL delivered an APE growth of 36/57% YoY/QoQ (6% miss vs. estimates). VNB margin for the full year came in at 25.2% (+358bps YoY), led by higher share of NPAR business and better fixed...
Galaxy Surfactants L.. has an average target of 2551.20 from 5 brokers.