Research Reports published by JM FINANCIAL

Asian Paints Ltd.    
24 Oct 2018
2215.30
2.78%
JM Financial
We move Asian Paints to BUY from HOLD as we now find valuation to be in a reasonable zone after two years of near-zero return. The stock price has swung from its 52-week high of INR1,467 on the day of its 1QFY19 result to near-52-week low level post a 5% fall today in possibly a reaction to a weak 2QFY19 earnings report, due in part to some once-off factors that impacted the quarter's profitability. We are quite confident, though, that margin performance going forward will be much better vs 2QFY19's, given elements of constraint (deferral of price-hike to avoid attracting anti-profiteering provisions) and once-off rebating (on transition stocks at the time of GST rate cut) present in the latter - issues that are unlikely...
Asian Paints Ltd. has gained 29.15% in the last 1 Year
Wipro Ltd.    
24 Oct 2018
350.50
-1.23%
buy
Hold: Wipro Ltd.
JM Financial
Wipro (WPRO) reported 2QFY19 that was a tad above expectations; the 0-2% QoQ USD revenue growth guidance (JMFe, adjusted for incremental revenues in the USD 1.5bn/10-years Alight Solutions deal) was on expected lines. Organic digital revenues grew 11% QoQ (30% YoY), on our estimates; management indicated a strong demand for cloud migration services. However, the presence of multiple moving parts divestment of data center business, Alight acquisition and the planned carving out of domestic public sector business lower the visibility of the internal construct. Further, the outlook for Healthcare vertical (13% of revenues) remains uncertain. Thus, we stay neutral. That said, we believe the stock's modest...
Wipro Ltd. is trading above all available SMAs
Mahindra & Mahindra Ltd.    
24 Oct 2018
722.00
-0.89%
JM Financial
MMFS recorded a strong performance with PAT of INR 3.8bn (up 133% YoY) on IndAS basis. Comparable IGAAP PAT for 2QFY19 is INR 3.9bn vs. INR0.8bn in 2QFY18, a 5x YoY growth. Other key highlights are: i) acceleration in disbursement growth (44% YoY); this led to AUM growth improving to 26% YoY from 8% last year. ii) GNPA ratio reduced 410bps YoY to 9% while coverage ratio stable YoY at 35%. iii) Management is confident of achieving 3% RoA driven by improvement in credit cost and operational efficiency. In the current situation, we believe strong promoter backed NBFCs will get disproportionate share of funding going forward. Moreover, competition from new, small and PE backed NBFCs will come down...
Mahindra & Mahindra Ltd. has gained 33.72% in the last 1 Year
Kotak Mahindra Bank Ltd.    
24 Oct 2018
1907.10
0.95%
JM Financial
Kotak Bank reported a steady operational quarter in 2QFY19 with PPoP for the standalone bank up 21.5% YoY. However, provisions remained slightly elevated in 2QFY19 as the bank continued to shore up its PCR (up 200bps sequentially to 63%), as well as due to elevated MTM provisions on the investments book. As a result, standalone PAT growth was moderate (+15% YoY), although growth in consol. PAT was healthy at 21%. We believe that the reduction in margin for KMB (down 10bps QoQ to 4.2%), could well be transient, as the loan book (predominantly linked to 6-m MCLR) gets re-priced. Management indicated that the outlook for risk-adjusted margins for KMB seems to be positive, driven by a reduction in...
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Kotak Mahindra Bank Ltd. has gained 56.63% in the last 6 Months
TTK Prestige Ltd.    
24 Oct 2018
5745.80
-1.66%
JM Financial
TTK Prestige (TTK) reported another steady quarter with revenue/EBITDA/adj. net income growth of 7%/6%/10% YoY despite a) Kerala floods (INR 150mn impact on sales) and b) high base (GST restocking). The company hopes to sustain the current growth momentum with a 14% EBITDA margin trajectory on the back of distribution expansion (deeper rural penetration) and product expansion (cleaning solutions, water purifiers, etc.). We appreciate the improved growth momentum (especially cookers led by the Ujjwala scheme); the recent correction in the stock provides an attractive price point for entry/addition, in our view. We introduce FY21 forecasts and roll forward with an SOTP-based Sep'19 TP of INR 7100 and...
TTK Prestige Ltd. has gained 21.60% in the last 6 Months
Bajaj Consumer Care Ltd.    
23 Oct 2018
204.20
7.28%
JM Financial
Bajaj Corp reported a very subdued revenue performance in 2QFY19 with domestic volumes being flattish as per our workings .This is probably attributable to channel inventory clearance prior to the re-launch of its flagship Bajaj Almond Drops brand and some destocking in the rural wholesale channel. Management remains quite confident of delivering a sharp improvement in volume growth from next quarter onwards aided by higher media activation post re-launch of BAD and the festive season demand. Interestingly, as per Nielsen, retail offtakes grew in excess of 25% (of a weaker base though as volumes were merely 5% higher on a sequential basis) and BAD was able to further enhance market share in both...
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Bajaj Consumer Care Ltd. is trading at high volume of 3.8M with price gain of 7.28.
Oberoi Realty Ltd.    
23 Oct 2018
463.40
3.66%
JM Financial
Steady Operations; well placed in current environment Oberoi reported steady operations with pre-sales value at INR 5.7bn (INR 3.5bn 2QFY18) primarily on improvement in pre-sales across projects. Oberoi recognised Eternia revenues in 2QFY19 as project crossed 25% construction threshold. While company's performance continues to improve post RERA/GST implementation, Mulund projects remain slow moving. Collections remained stable at INR 5.6bn (INR 5.7bn in 1QFY19). Net debt was reported at INR 4.1bn. Operating cash flows declined on TDR payments and higher construction spends. Company has received 97% lease commitment in Commerz II (63% at present). We believe...
Oberoi Realty Ltd. is trading at high day volume of 1.9M.
Bajaj Finserv Ltd.    
23 Oct 2018
8758.80
-0.54%
JM Financial
Strong performance by BAF offsets weak quarter for BAGIC; BALIC on track Bajaj FinServ reported consolidated PAT of INR 7.0 billion, up 1% YoY as the strong performance in Bajaj Finance (IndAS PAT up 55% YoY in 2QFY19) was offset by a) Kerala flood losses at BAGIC which negatively impacted combined ratio by 360bps and b) investment related provisions and losses at BALIC which negatively impacted shareholders' net income. A key point to note is that Bajaj FinServ continues to be a debt-free company with surplus liquidity (ex-group investments) at INR 8.4 billion as of Sep'18. All three of Bajaj FinServ's (BJFIN) businesses are well-poised to post strong profitability going forward. We...
Bajaj Finserv Ltd. is trading above all available SMAs
Bajaj Finance Ltd.    
23 Oct 2018
4908.80
1.82%
JM Financial
Stellar quarter; well positioned on ALM and liquidity Bajaj Finance (BAF) reported 2QFY19 net profit of INR 9.24bn (up 55% YoY ) as per IndAS. As per IGAAP, net profit was up 83% YoY at INR 10.2bn. Key highlights: i) AUM growth remained strong at 38% YoY driven by all the segments. As per company, consumer demand remained strong, however given the current environment, company would be slightly cautious for quarter or so in the lumpy exposure in SME, LAS and commercial lending. ii) Customer acquisition remained healthy, with the company acquiring 1.8 million new customers (up 34% YoY) in 2QFY19. iii) Margins increased 33bps YoY to 11.1% on a 47bps...
Bajaj Finance Ltd. has gained 35.14% in the last 3 Months
Ambuja Cements Ltd.    
23 Oct 2018
261.05
0.12%
JM Financial
Ambuja Cement (Ambuja)'s 3QCY18 EBITDA missed the expectations primarily on higher other expenses. Revenues rose 13% YoY on volume growth of 9%. Realisations improved by 3.6% on a YoY basis; sequential growth of 1%. EBITDA grew by 15.6% on a YoY basis. EBITDA/t was reported at INR 648/t (vs. INR 609/t in 3QCY17), grew as realisation improvement and lower other expenses was partially offset by increase in operating costs. We believe Ambuja's long-term growth is constrained by its clinker capacity and limited expansion plans (phase 1 expansion of 1.7MTPA of clinker at Marwar Mundwa expected by 2HCY20). As a result, we expect Ambuja's market share to decline in the interim. While the...
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FIIs/FPIs have increased holdings from 600 to 613 in Sep 2020 qtr.