We maintain our BUY rating on DB Corp with a target price of Rs445 as we value the company based on our conservative Adj. OCF based methodology. We believe the ad growth has bottomed out and expect an uptick in H2FY18 as key sectors begin to advertise. Real Estate is expected to bounce back as RERA has been notified in most of the key states. Further management strategy on increase circulation would pay dividends and help in ad growth in medium term coupled with strengthening market share. Stable newsprint cost and prudent cost...
Revenue grew by 5%YoY: SIL's revenue grew 5%YoY to Rs6.67bn from Rs6.38bn and was impacted by uncertainties of GST launch. The company's top 18 brands contributed ~70% to revenues. Twelve of the 18 top brands surpassed the market growth rate of 2.8% in September'17. We expect these brands to drive the company's growth. SIL derives ~27% of its revenues from exports of APIs, formulations and insulin pens. Launch of new products and line extensions, volume growth of existing brands would drive future growth. EBIDTA margin improved by 460bps: SIL's EBIDTA margin improved by 460bps to...
We downgrade the stock to Hold with a revised TP of Rs1170 given a steep 36% rally in the stock price in last 6 month. While the long term growth prospects remain intact, we believe near term pain would continue in the 99acres business. Recruitment business is showing signs of recovery but is still not out of the woods. We believe the company would continue to invest in the new verticals of jeevansaathi and Shikha.com impacting margins. We believe the margins witnessed during the quarter are not sustainable given the A&P; campaign expected for both the core recruitment and real estate vertical in Q3FY18. Zomato turning cash neutral is a long term positive while...
On the back of impressive growth in the India tractor industry, Swaraj Engines (SWE) reported its best ever quarter in terms of engine sales volume and net profits. But considering strong growth reported by M&M;'s tractor division, this performance was below estimates. 2QFY18 EBITDA/PAT improved 20.3%/22.1% YoY, on the back of 11.6% growth in volumes and 51 bps YoY improvement in EBITDA margin. SWE's EBITDA margin was slightly ahead of our expectations, however sales and net profits missed estimates. While we acknowledge that SWE is poised to leverage the continued good growth in tractor volumes, current reach valuations limit the upside in the near...
We retain BUY on ICICI Bank with SOTP based TP unchanged at Rs340. Q2'18 results saw yet another quarter of strong earnings (NII up 8.7% YoY / NIM +14bps YoY to 3.27%), accelerated loan growth (domestic loans up 13.2% YoY) and sequential decline in slippages (3.9% of loans). Drill-down list has more than halved over FY16-Q2FY18 (4.5% of loans). Commentary on overall NPA accretion remains soothing; resolutions in certain large NPA cases could add positively to overall NPA trend. Capital position remains strong while subsidiaries stay profitable. Valuations continue to remain undemanding. Prefer ICICI Bank over...
GNA Axles Ltd (GNA) Q2FY18 consolidated results were good. Revenue grew by 18% YoY to 154 crore supported both by domestic (up 34.2%) and exports (up 16.2%). EBITDA was up 10% to 24 crore with margin contraction of 115bps to...
Tata Metaliks (TML) delivered in line performance in Q2 as the positive impact of strong volumes mitigated the headwinds of subdued spreads and overall weak market conditions. We continue to maintain our positive view on TML as its DI pipe business boasts of an industry leading cost structure, solid demand drivers and strong entry barriers. With complete stabilisation of growth-accretive and cost efficient projects offering quick paybacks and expected recovery in spreads from H2FY18, TML is set to take the next leap in profitability and deliver EBITDA/PAT CAGR of 26%/38% over FY17-19E. Despite the consistent up move in the stock in last...
We maintain our Sell rating on GlaxoSmithKline Pharma (GSK) and revise our TP to Rs1,525 (earlier Rs1,390) based on 24x March'19E EPS of Rs63.4. GSK's Q2FY18 results exceeded our and consensus estimates. GSK revenue grew by 5%, EBIDTA margin improved 540bps to 23.0% and net profit grew 27% YoY. GSK's pharma segment grew by 6.3% during the quarter. That said, the company has a strong presence in the vaccines segment and is likely to derive growth from the same. Key risks to our assumptions include faster-thanexpected growth in the domestic market and higher growth of its flagship brands. We recommend a switch to other pharma companies, Abbott India or...
