Choice India Broker Research reports

HDFC Bank Ltd. (HDFCB) reported strong performance in operating as well as financial fronts while maintaining stable asset quality during Q2FY18. NII grew at 22.0% YoY, PAT at 20% YoY and GNPA reported at 1.3%, in line with our estimates. Despite of big size, outperformance of HDFCB to peers continued in terms of all...

HDFC Standard Life Insurance Company Ltd. (HDFCSL) is one of the most profitable life insurers, based on the Value of New Business (VNB) margin, among the top five private life insurers in India (measured on total new business premium) in FY16 and FY17....

Khadim India Ltd. (KIL) is one of the leading footwear brands in India with a market share of around 45% in the organized retail market in East India and a market share of 15-20% in South India. The public issue is a combination of OFS and fresh issue. The company will not receive any proceeds from the OFS. Of the net proceeds from the fresh issue, around Rs. 400mn will be utilized for the prepayment or repayment of all or a portion of term loan and...

South Indian Bank (SIB) reported strong operating performance with NII growing by 13.0% YoY in line with our estimates. Improvement in NIM and C/I ratio led to 55% growth in PPOP during the quarter. However, elevated provisioning offset margin improvement and weighted on the profitability. We retain Buy' rating on...

Marigold will remain a key performing vertical for the Company. Continued price pressure, post patent expiry, and a record production in China contributed to a 25% drop in global marigold oleoresin prices from the previous year. These factors coupled with a second consecutive drought year in their growing regions made for a challenging year. However, with a focused approach to improved operational efficiencies and cost reduction measures, the Company has...

Outlook :Indian logistics industry is moving towards a phase of major transformation Government's plans to cut logistics costs from the current 14-15% of GDP to 910%,through a modal shift towards water and railway and efficiency improvement, the sector is all set to experience a positive growth trajectory. Government also announced Sagarmala project for port modernization and augmentation, development of multimodal logistics parks, smart cities project and dedicated freight corridors. Successful and timely completion of these proposed projects will ensure cost effectiveness and operational efficiencies in the transport and logistics sector. With the effect of GST, instead of maintaining smaller warehouses in each and every...

Mahindra Logistics Ltd. (MLL) is one of the India's largest third party logistics (3PL) solutions providers in the logistics industry, which was estimated at Rs. 6.4tn in FY17....

It has a solvency ratio of 2.2x and is one of the highest in the Rajnath Yadav industry. Moreover it is above the regulatory requirement of 1.5x. Research Analyst (022 - 6707 9999; Ext: 912) Solvency ratio measures the company's ability to meet its obligations. In other words, is indicated how financially sound is the Email: rajnath.yadav@choiceindia.com insurer in meeting the claim payments. Profitability in the general insurance companies is dependent on the underwriting performance and investment returns. The company has a combined ratio of 119.7% as against the industry average of around 115%. The combined ratio is calculated by taking the sum of incurred losses and expenses and then dividing it by the earned premium. A ratio below...

Assets quality remains stable: Gross slippage at Rs3,740 mn showed improvement with slippage rate declined to 0.98% (1.35% in previous quarter). During the quarter 1 SDR a/c of housing infra sector of worth Rs2,300 mn was downgraded to NPA and management asserted of carrying adequate provision against it. During the quarter, R&U; remained at Rs3,490 mn leading to net addition of Rs250 mn of GNPAs during the quarter and GNPA ratio reduced by 22 bps to 4.13% v/s 4.34% in previous quarter. Stressed assets (GNPA + watch list) reduced to 7.5% v/s 8.9% in Q1FY18. Substandard NPAs represented around 51.3% of GNPAs in Q2FY18 v/s...

Kansai Nerolac Paints Limited (KNPL) is a paint company. The Company offers a range of products, including decorative, Automotive Coatings and Performance coatings. The Company has coating solutions across the Decorative, Wood Coatings, General Industrial, High Performance Coatings, Powder Coatings, Automotive and Auto Refinish market segments. The Company serves its customers through a network of approximately four manufacturing facilities located at Lote in Maharashtra, Bawal in Haryana, Jainpur in Uttar Pradesh and Hosur in Tamil Nadu and over hundred strategically located depots. The Company has a joint venture in Nepal with Kansai...