Choice India Broker Research reports

APL Apollo Tubes Ltd. (APL) is one of the leading manufacturers of ERW pipes in India with a manufacturing capacity of 1.3mn tonnes. Its nearest competitor is nearly half the size of it. Out of the 1.3mn tonnes, galvanized (GI) and pregalvanized (GP) pipe capacity is 0.12mn tonnes and 0.2mn tonnes, respectively. ERW pipes and structures find application across various industries such as a...

At the higher price band of Rs. 299 per share, ASL's share is valued at a P/E multiple of 58.5x (to its restated FY16 EPS of Rs. 5.1), which is at significant discount to its peer average of 482.7x. On P/BVPS and EV/EBITDA front, it is valued at multiple of 12.3x and 29.6x, respectively, as compared to peers average of 6x and 104.3x. Below are few key observations of the issue:...

Radio City, a part of Music Broadcast Ltd. (MBL) is a subsidiary of Jagran Prakashan Ltd. It is the first and oldest private FM radio broadcaster in India with over 15 years of expertise. The issue is a combination of fresh issue (Rs. 4,000mn) and offer for sale (Rs. 861.4 885.3mn). Net proceeds from the issue will be...

Radio City, a part of Music Broadcast Ltd. (MBL) is a subsidiary of Jagran Prakashan Ltd. It is the first and oldest private FM radio broadcaster in India with over 15 years of expertise. The issue is a combination of fresh issue (Rs. 4,000mn) and offer for sale (Rs. 861.4 885.3mn). Net proceeds from the issue will be...

Higher GDP growth was led by expansion in private consumption and agriculture sector growth. PFCE rose by 10.1% in Q3FY17 v/s 5.1% in Q2FY17 Agriculture sector output increased to a 11-quarter high at 6.0% v/s 3.8% in Q2FY17 and (-)2.2% in Q3FY16. Strong agriculture expansion offset the sluggishness in services sector growth which eased to 6.8% v/s 8.2% in Q2FY17 Higher growth in manufacturing and construction was surprising despite the demonetization. Mining sector output grew at 7.5% in Q3FY17 v/s -1.5% in Q2FY17, benefitted from reviving commodity prices....

Outlook: Broad based contraction was witnessed in the manufacturing sector and it was likely due the shortage of currency which was at peak in the month of December. 22% contraction in capital goods production during Apr-Dec'FY17 indicated weak investments scenario as corporates are making low investments due to prevailing low demand. On the other hand, private players are also sitting on high production capacity; thereby an improvement in capex cannot be expected without the emergence of strong demand in the economy. Consumers durables segment which had been showing strong growth on the back of improving disposable income of consumers, had also impacted by the demonetization move. However, manufacturing PMI reviving to expansion phase at 50.5 in January from 49.6 in...

other income on back of selling of non-core assets provided support to PAT. Q3FY17 Result Analysis: Net interest income (NII) of bank grew by 8.4% YoY and 2.2% QoQ in Q3FY17 (1.3% YoY and 0.9% QoQ in Q2FY17) despite the challenging business environment during the quarter. Pre-provision operating profit (PPOP) grew by significant 30.7% YoY and 11.8% QoQ due to the high NIIs growth and better operating efficiencies. Operating expenses grew by 16.5% YoY and 2% QoQ and thereby the cost-to-income (C/I) ratio declined 230 bps to 48.6% as compared to 50.9% in the previous quarter. NIM during the quarter...

Takeaways from Monetary Policy Committee (MPC) commentary: MPC's view on inflation: Witnessing the fifth consecutive month of easing, CPI inflation over the last five month eased sharper than expectation mainly driven by deflation in prices of vegetables and pulses. The committee is of the view that during the same period inflation excluding food and fuel or core inflation has been remained sticky at around 4.9%. While, continued hardening of the core inflation could check the downward momentum in inflation, headline CPI is likely to remain below 5% in Q4FY17 despite reducing impact of demonetization on demand and rebounding in the prices of vegetables. For the medium...