Latest broker research reports from LKP Securities buy, sell, hold, neutral recommendations along with target prices forecast and upside.
|Summary||Date||Stock||Broker||LTP||Target||Price at reco|
Change since reco(%)
|2021-02-25||Mahindra & Mahindra .. +||LKP Securities||840.40||974.00||852.05 (-1.37%)||15.90||Buy|
|2021-02-20||Endurance Technologi.. +||LKP Securities||1405.10||1577.00||1364.80 (2.95%)||12.23||Buy|
|2021-02-19||State Bank of India +||LKP Securities||383.65||473.00||406.25 (-5.56%)||23.29||Buy|
|2021-02-17||Ujjivan Small Financ.. +||LKP Securities||35.80||48.00||33.75 (6.07%)||34.08||Buy|
|2021-02-15||Garden Reach Shipbui.. +||LKP Securities||202.60||251.00||198.00 (2.32%)||23.89||Buy|
|2021-02-12||Ashok Leyland Ltd. +||LKP Securities||126.20||151.00||129.45 (-2.51%)||19.65||Buy|
|2021-02-08||Sun TV Network Ltd. +||LKP Securities||506.10||638.00||526.00 (-3.78%)||26.06||Buy|
Recovery in Ad revenues, new movie releases to lift up FY22 performance Q3 core businesses disappoint, numbers up due to IPL Sun TV's Q3 FY21 numbers came slightly below our expectations as Ad revenues declined by 10.7% yoy, while growing sequentially by 26% in a festive quarter. The sequential growth was on the back of opening of economy, normalcy coming back and advertisers increasing their Ad spend, however there was a yoy fall in advertisements from retail advertisers, local jewellers as demand for their products is still not fully recovered due to pandemic. Also due to absence of any movie releases, the advertising revenues have bore the brunt. Additionally there has been some market share loss in its...
|2021-02-05||Brokerage Research R.. +||LKP Securities||Buy|
State Bank of India (SBI) has delivered a strong result on operating and assets quality front. Moreover, reported gross slippages stood minuscule at 2.8bn v/s 30.8bn in the previous quarter. 9MFY21, pro-forma slippages stood at 164.6bn. It reported GNPA (4.77% v/s 5.28% in 2QFY21) and NNPA (1.23% v/s 1.59% in 2QFY21) declined substantially along with higher PCR (incl. AUCA) of 90.2%. The Pro-forma GNPA/NNPA ratio declined sequentially to 5.44%/1.81% v/s 5.88%/2.08% in the previous quarter. The bank has witnessed stable net advances (7.6% YoY & 3.2% QoQ) and strong deposit growth (13.6% YoY & 1.9% QoQ) sequentially with better liquidity position (LCR of 140% +). Moreover the bank has reported PAT of 52bn (v/s 45.7bn in 2QFY21) on back of steady...
|2021-02-05||Hero MotoCorp Ltd. +||LKP Securities||3461.70||3934.00||3538.95 (-2.18%)||13.64||Buy|
volumes, revenues, operating profits and realizations. Volumes grew by 9% yoy and 1.4% qoq to models and low base of last year when BS 6 was playing as a dampener. The demand in Q3 was strong on the back of festive period and pent up demand rising post lifting up of lockdown. Input...
|2021-02-04||Zee Entertainment En.. +||LKP Securities||218.05||288.00||217.25 (0.37%)||32.08||Buy|
Advertising revenues back on track, while Zee 5 is gaining traction Zee's Q3 FY21 numbers were broadly in line with expectations in the festive third quarter of FY21. Advertising revenues grew by 5.8% yoy and 44% qoq as economy revived and the effect of pandemic faded off in the latter half of the quarter. Subscription revenues grew by 18% yoy and 5.2% qoq as Zee 5 business gained momentum. The core subscription revenues would have remained flattish on uncertainty related with NTO2.0. However, there was a one-off syndication revenue element of 5.51 bn on sale of certain content inventory in international business. Excluding this, total revenues grew by 6.3% yoy. EBITDA margins adjusted for this revenue stream...
|2021-02-01||IndusInd Bank Ltd. +||LKP Securities||1039.90||1134.00||1048.55 (-0.82%)||9.05||Buy|
Indusind Bank has reported better than expected numbers in 3QFY21, as its gross slippages declined at 0.6bn v/s 3.99bn in 2QFY21. The bank has reported provision expenses 18.5bn v/s 19.6bn in the previous quarter. The total Covid provisioning stood at 32.6bn. The total contingent provision (excluding PCR) stood at 2.2% of loan book. Total loan loss provisions (cumulative, Covid and contingent) stood 210% of GNPLs and 3.1% of book. The bank's collection efficiencies have improved significantly (~98% as on Dec-20) and one of the best among large private banks. The capital infusion (post money CET 1: 14.5%) would provide further cushion. Furthermore the liquidity surplus of 400bn is likely to safeguard the balance sheet. We expect the credit cost to...
|2021-01-31||ICICI Bank Ltd. +||LKP Securities||609.45||703.00||622.35 (-2.07%)||15.35||Buy|
Earnings in 3QFY21 acknowledge our conviction that ICICI Bank is preparing for sustainable, prudent and cautious growth despite some exceptional hiccups owing to Covid. The bank has reported its 3QFY21 results with the key pointers being: 1) NII growth of 16.0% YoY, with headline NIMs (Domestic: 3.67% & Overall: 3.67%) growth of 10bps sequentially despite higher liquidity available (LCR: 146%), 3) PPoP growth of 16.8% YoY and 6.8% sequentially, 4) Lower reported slippages (4.7bn v/s 30.1bn) led by retail slippages (84% of total slippages), 5) NNPA further down 36bps to 1.26%; where pro-forma GNPA/NNPA ratio stood at 5.42%/1.26%, 6) PCR (excluding technical write-offs) improved 600bps to 86%, however the bank didn't include Covid & general provision...
|2021-01-30||Bharat Electronics L.. +||LKP Securities||147.00||158.00||139.10 (5.68%)||7.48||Buy|
Superb margin performance in Q3, though revenues were subdued BEL reported earnings which were strong at 2.61 bn, against a yoy profit of 2.15 mn. This growth was at 9.9% yoy. Revenues remained more or less flat yoy at 22.96 bn. The company was done with the supply of ventilators to the Indian Health Department in Q2 itself, due to which Q3...
|2021-01-29||RBL Bank Ltd. +||LKP Securities||242.35||256.55 (-5.53%)||Buy|
RBL Bank's 3QFY21 results indicated a steady normalization in credit cost. As the moratorium lifted, the collection in credit card segment (contributes 18.2%) almost reached the pre-Covid level. The restructured assets (0.9%) and BB and below pool (6% of advances) have high likelihood of crystallizing into NPLs after asset classification resumes. However, the provisioning expense of 6.1bn (5.3bn in 2QFY21) has translated into substantial improvement in PCR to 86.4%. Moreover, the Covid provisioning (6.64bn) stood 121bps of net advances. The bank witnessed 15bps decline in NIMs to 4.19% because of proactive reversal of interest income on pro-forma NPA. As expected the bank reported a muted credit growth of 0.5% sequentially. We estimate the growth to remain...
|2021-01-28||Axis Bank Ltd. +||LKP Securities||730.75||733.80 (-0.42%)||Buy|
3QFY21 marks the manifestation of moderately higher provisioning expenses (46bn v/s 45.8bn in the previous quarter) and net profit of 11.2bn against 16.8bn in the previous quarter. As the asset classification stands still, the bank's reported slippages number remains low (0.3bn v/s 9.3bn in 2QFY21) with GNPA and NNPA ratio declined to 3.44% and 0.74% respectively. The Pro-forma GNPA and NNPA ratio were at 4.55% and 1.19% respectively. The bank's PCR has seen further improvement to 79% v/s 77.2% in the previous quarter. Moreover the resolution rate (98%) stood better than pre-Covid level. Furthermore, the BB & below book inched down 1.37% of customer assets v/s 1.4% in the previous quarter. On business front, credit growth (5.9% YoY &...
|2021-01-26||Kotak Mahindra Bank .. +||LKP Securities||1922.50||1994.00||1764.70 (8.94%)||Target met||Buy|
Kotak Mahindra Bank (KMB) reported tepid 3QFY21 results with the key pointers being: a) profitability (PAT declined 15.1% sequentially) dragged down because of higher provisioning b) Pro-forma NPA (GNPA/NNPA ratio of 3.27%/1.24%) marginally higher than expected c) sequential credit growth stood positive at 4.5% QoQ; with strong participation in ECLGS, d) sequentially higher cost to income ratio (42.3% v/s 38.5% in the previous quarter) driven by lower other income and higher opex., e) Higher provisioning expenses (6bn v/s 3.7bn in the previous quarter) led to sequential PAT de-growth; Covid provision stood 12.8bn as of 3QFY21, f) the total contingent provisioning (Covid + Standard + Specific) stood 1.08% of net advances, g) Total PCR (including Covid, general and specific provision) stood above...
|2021-01-25||Polycab India Ltd. +||LKP Securities||1350.25||1321.00||1182.70 (14.17%)||Target met||Buy|
half in FY21. Polycab's working capital days has significantly improved in this quarter at 37 days from 60 days in previous quarter. The company's ROCE has remained stable at c.30.6% in this quarter while the Net Cash doubled to over 1333.5 crs as of December, 2020. We maintain our...
|2021-01-22||Indian Energy Exchan.. +||LKP Securities||306.40||298.00||242.95 (26.12%)||Target met||Buy|
IEX reported record revenues this quarter on the back of increased transacted volumes on its platform. IEX revenues grew c.43% yoy to 85.23 crores as compared to 59.68 crores in Q3FY20. account of operating leverage coming into play. The company's EBIDTA margin expanded by 288 bps YoY and 345 bps QoQ to 81.6% on consolidated basis. Power demand in India has also picked up since the gradual unlocking, sustained by revival of industrial activities. IEX managed to grow at a much higher pace in FY21 despite the Covid-19 disruption. The main reason for the increase in volumes was that the power traded through IEX platforms offered customers lowest possible...
|2021-01-21||Bajaj Auto Ltd. +||LKP Securities||3852.85||4146.35 (-7.08%)||Buy|
longer time to return to normalcy. Schools and offices are yet start at full strength and is therefore functioning at 40% pre-Covid levels. However, management believes that 3W will come back to normalcy in a quarter, which according to us is a bit optimistic. However, there is some positive movement on the cargo side of 3W (70% pre-Covid levels) due to movement of essential goods...
|2021-01-21||Federal Bank Ltd. +||LKP Securities||87.35||88.00||69.80 (25.14%)||Target met||Buy|
Price Analysis: Federal Bank has reported 3QFY21 earnings in line with our expectations led by a) Strong NII growth (24.4% YoY) with 8bps improvement in NIMs to 3.13%, b) relatively healthy business growth with net advance and deposit growth of 5.3% YoY and 11.8% YoY respectively, c) sequentially higher C/I ratio of 49.8% v/s 46.7% in 2QFY21 and d) downtrend in reported NPA numbers with GNPA/NNPA ratio of 2.71%/0.61%. Furthermore, the bank's PAT grew by 31.4% sequentially with lower provisioning expenses (4.2bn v/s 5.9bn in the previous quarter). The Pro-forma GNPA/NNPA ratio stood at 3.38%/2.71% with PCR of 77.1%. Factoring expected 3QFY21 results and inexpensive valuation (P/BV: 1x), we maintain our positive outlook on the bank....