Kotak Securities Broker Research reports

The demand scenario for capital goods makers in general remains weak. In this scenario, the company's focus remains on taking good quality orders that are fairly priced and have reasonably good credit profile. This is manifested in the company's balance sheet which has shown further improvement in working...

Both the underperforming segments of Home improvement business including Kitchen (Sleek) and bathroom (EssEss), have reported strong financial performance which is healthy for the company. Other expenditure was significantly high in the quarter (+8.8% YoY and +29.2% QoQ), which impacted the operational performance. Source: Kotak Securities - PCG; Company...

JSHL's Q4FY18 standalone numbers were below our estimates, due to lower than expected realisation. The volume during the quarter continues to remain strong. FY18 consolidated PAT doubled to Rs5.91 bn, supported by strong performance in standalone operations and improved performance from Jindal Stainless Steelway (JSSL) and Jindal Lifestyle (JLL)....

We recently visited KNR's Pollachi to Coimbatore EPC project where we interacted with the top management of the company. The company is positive on its construction business in the longer run and believes that traction in order inflows...

We note that the order placements for the Namami Gange has started to gain momentum - VA Tech Wabag (VAW) has recently announced some order wins. With the APGENCO plant achieving COD, we believe receivables from this project...

We expect Cummins India to be able to deliver growth at c.16.4% CAGR (against flat YY growth in FY18E) between FY18-20 given the continued momentum in industrial demand and potential benefits arising from improving economic outlook in exports market (business impact yet to be confirmed by the management). Continued efforts towards cost rationalization (maintain Gross margins through value engineering efforts) and operating leverage will be able to offset the cost inflation to a large extent. We see margins reverting towards FY15-16 levels (still far from...

US sanctions on Rusal (April 2018) and alumina cost push led to ~10% rise in the aluminium prices since Feb'18 end. Besides, supply disruptions, the sanctions also restrict Rusal's ability to complete new projects or ramping up of exiting capacities (1.5-1.6MT), restricting any new supply coming into the market. This, coupled with China's emphasis on environmental sustainability should support aluminium prices in the near to medium term. As we believe that, lower supply from China, low inventory, and deficit (exChina) will continue to support the aluminium prices. Given the recent uptick in aluminium prices, we believe, NALCO should report improvement...

We recently met the management of Genus Power (GPIL). The management was very positive on the demand outlook for meters. Our interaction with other industry players also corroborates this view. After the order win of smart meters in Q3FY18, news-reports indicate that GPIL is the lowest bidder in prepaid meter tender. Based on robust demand outlook, we project strong revenue and earnings growth. We reiterate BUY...

Venky's stock has now run up 216% since we initiated coverage (July, 2017) on the stock. In the last three months, the stock has appreciated 85%, as strong earnings performance in recent quarters has led to better perception among investors, aiding a re-rating. In our last update (March, 2018), we had noted signs of weakening poultry prices. Over the last month, decline in poultry prices has been sharper (more than 20% decline y/y), which is likely to affect near-term performance of the stock negatively. Moreover, industry sources indicate that there may be an excess supply in...

Driven by tight supply and restocking of the inventories, international prices of manganese ore has rebounded to multi-year high of over $7.5/dmtu (CNF India is at $8.5/dmtu). Backed by the firm international price, MOIL has further increased manganese ore price in April 2018 by 5-12% across all the grades, in addition to the 5-10% hike taken in the month of March 2018. Besides, firm international prices, lower supply from the domestic miners also supported the recent increase in the domestic manganese ore prices. The company reported highest ever turnover of Rs13 bn (provisional...