est.). However, lower tax expenses (19% yoy) negated the impactofdecreaseinotherincomepartially.Taxratestoodat 25.7% vs 27.8% in Q2FY20. PAT marginal beat (+4% vs our...
Latest broker research reports from Yes 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(%)
|2020-11-10||Honeywell Automation.. +||Yes Securities||46909.25||36310.00||29063.50 (61.40%)||Target met||Buy|
|2020-11-09||PSP Projects Ltd. +||Yes Securities||479.55||519.00||390.35 (22.85%)||Target met||Buy|
Surat Diamond project (SDB) revenues were soft in Q2 FY21 due to low labor availability(whichimprovedonlyinAugust).SDBrevenuesareexpectedtopick upfromQ3FY21onwards.TheQ2FY21monthlyexecutionrateofRs.220mnis expectedtoriseto500600mnonmonthlybasisinQ3forSDB.TheCompany...
|2020-11-07||Ujjivan Small Financ.. +||Yes Securities||35.80||40.00||32.45 (10.32%)||Target met||Buy|
A large PPOP/earnings beat in Q2; improved cost metric alleviating creditcostimpactonRoARateBUYwith12mPTofRs40 UjjivanSmallFinanceBank(USFB)deliveredalargebeatonearningsinQ2FY21led byastrongerNIIperformance,highernoninterestincome,controlledopexgrowthand lowerthanestimatedprovisioning.Sequentialdeclineingrossadvancesat3.4%(yoy growth decelerated sharply to 8%) was caused by 6% contraction of Micro Banking portfolio(sharedeclinedto76%)wherethebankhasbeencautiousondisbursements and has tightened credit policy. Qoq growth in affordable housing and MSE lending...
|2020-11-06||Manappuram Finance L.. +||Yes Securities||166.90||225.00||158.50 (5.30%)||34.81||Buy|
and lowerthanexpected provisions (management's expectation of sustained improvement in collection efficiency in nongold businesses). However, we see the billingcollectiontrends(w/oarrearsandforeclosures)inMFIandCVportfolioasbeing weakerthanpeercompaniesinthesesegments.Thus,weretainourconservativeloan loss outcomes in microfinance (7.5%), vehicle finance (6%) and housing finance (4%) businesses.Notwithstandingthis,weestimateMGFLtodeliver5%RoAinthecurrent yearonthebackofsolidprofitabilityingoldloans.Ascreditcostwouldbemuchlower in nongold segments during FY22, the consol. RoA could climb above 5.5%. RoE...
|2020-11-03||CreditAccess Grameen.. +||Yes Securities||703.50||810.00||722.85 (-2.68%)||Target met||Buy|
|2020-11-03||Greenlam Industries .. +||Yes Securities||942.30||1165.00||759.65 (24.04%)||23.63||Buy|
|2020-11-02||AIA Engineering Ltd. +||Yes Securities||1898.45||1948.00||1723.20 (10.17%)||Target met||Buy|
Growing share via value added offerings; Retain 'BUY': We retain FY22 volumeestimatesat296kMTassumingi)Increaseinannualgrindingmediavolumes by2025kMTonanormalizedbaseofFY20,ii)Approx.10kMTcontributionfrommill lining solutions & ~70bps margin expansion over FY2022 led by benefits of INR depreciation (~75% exports), launch of relatively high margin value added mill lining solutions & operating leverage play. The stock is currently trading at 24x FY22E earnings. It deserves premium multiple due to strong business MOAT. We remain optimisticonthebusinessprospectswithadjustedROE(excash)of28%byFY22E,...
|2020-10-29||Can Fin Homes Ltd. +||Yes Securities||506.50||550.00||454.80 (11.37%)||8.59||Buy|
Can Fin's Q2 FY21 result was exceptionally strong on the back of sharp NIM improvementandmodestprovisions(backedbymanagementassessmentofpotential stressandextanthealthyprovisioningbuffer).WeconcurwithmanagementthatNPL increaseandrestructuringquantumwouldnotbesignificantconsideringencouraging collectiontrends(93%inSeptand9697%inOct)andcustomerprofileofthebook. CreditcostfromH2FY21isexpectedtolargenormalize(1520bpsannualized). WhiletheNIMcouldstayaroundthecurrentelevatedlevel(3.94%)foracoupleof quarters (1020 bps incremental decline in cost of fundspossible), it will most likely...
|2020-10-29||Axis Bank Ltd. +||Yes Securities||730.75||586.00||525.15 (39.15%)||Target met||Buy|
We retain BUY on Axis Bank and increase price target to Rs586 (Rs550 before) underpinnedbyearnings/BVupgrade.Earningshavebeenrevisedupwardsbylifting NIM and core fee growth assumptions. Considering management's assessment of probablerestructuringpoolandencouragingcollectiontrends(demandresolutionat 97%inOct),webelievethatdownsideriskstoourprevailingcreditcostestimateshas diminished.Hence,bank'sreturnratioswillmostlikelyrecoversharplyinFY22.The...
|2020-10-28||RBL Bank Ltd. +||Yes Securities||242.35||230.00||184.85 (31.11%)||Target met||Buy|
The decline in NIM weighed on NII growth (10% qoq and 7% yoy). There was strongrecoveryincorefeeincome(up52%qoqandstoodat93%ofQ2FY20 level)withrevivedtractionincardfeesandprocessingincome.Treasuryincome waselevated,andstoodsimilartoQ1FY21atRs950mn. Notwithstanding higher business activity levels in nonwholesale products on sequentialbasis,theabsoluteopexcameoffinQ2FY21andexhibitednogrowth onyoybasis.Cost/incomeremainedbelow50%. AdvancesstoodatRs562bn(1%qoqand4%yoy);nonwholesalegrew7%qoq...
|2020-10-27||ICICI Prudential Lif.. +||Yes Securities||483.50||537.00||409.70 (18.01%)||Target met||Buy|
Individual Protection APE decline was 1520%. This quarter had seen increased competitionwithincreasedfocusonProtectionbyallindustryplayers.ROPareincluded bymanyplayersinprotectionbusiness,howeverthecompanywantstofocusonpure retail protection as ROP and pure protection has significant margin gap. Strong...
|2020-10-27||Nippon Life India As.. +||Yes Securities||352.85||364.00||278.20 (26.83%)||Target met||Buy|
We remain positive on the stock considering our expectations of 1) strong equity marketperformance,2)NAMgainingmarketshareunderthenewpromoters,3)costs controlwillnarrowdownthefinancialperformancegapwhencomparedwithpeers, and4)valuationsareattractiveat21.6xFY23Eearnings.OurestimatesforFY21have...
|2020-10-26||Polycab India Ltd. +||Yes Securities||1350.25||1118.00||909.85 (48.40%)||Target met||Buy|
Polycab reported stronger than expected numbers led by healthy revival in domesticB2Csegmentandexports.C&W;segmentrevenuesdeclined5%yoy;the decline was lowerthanexpected on account of double digit growth in housing wiresand47%yoygrowthinexports.However,domesticB2Bsegmentdeclined 3040%yoyduetoslowerexecutionininfrastructureprojects.ExcludingDangote revenues (Rs440mn), exports jumped 400% yoy led by increasing presence in exportmarket.Recoveryinrevenuesisalsoaidedbythestrongincreaseincopper prices. FMEG growth of 24.7% yoy was quite higher than our expectations....
|2020-10-26||Torrent Pharmaceutic.. +||Yes Securities||2481.70||3200.00||2519.55 (-1.50%)||28.94||Buy|
|2020-10-26||Kotak Mahindra Bank .. +||Yes Securities||1922.50||1670.00||1570.90 (22.38%)||Target met||Buy|
We see no deterioration in RoA for the current year despite higher provisions and expectprofitabilitytoimprovetolifetimehighinFY22.KMBhasunderperformedin recentmonthsanditsvaluationpremiumtoHDFCBhasdissipated.Expectvaluationto reratefromcurrent3xFY22P/ABVisresponsetolikelycontinuationofnonlinear earningsgrowth.UpgraderatingtoBUYand12mPTtoRs1,670. A nearly 20% PPOP beat supported by 10% NII outperformance. Substantial...
|2020-10-26||SBI Life Insurance C.. +||Yes Securities||903.55||1006.00||761.50 (18.65%)||11.34||Buy|
and revival in the ULIP business. It continues to focus on extracting more from its bancassurance and agency channels. Limited presence on the online platforms, however, is a dampener. The stock trades at FY22E P/EV of 2.1x, which we find...
|2020-10-23||Alembic Pharmaceutic.. +||Yes Securities||917.00||1180.00||973.75 (-5.83%)||28.68||Buy|
|2020-10-19||HDFC Bank Ltd. +||Yes Securities||1530.00||1500.00||1203.55 (27.12%)||Target met||Buy|
|2020-09-18||Dixon Technologies (.. +||Yes Securities||19130.90||11056.00||8900.90 (114.93%)||Target met||Buy|
DIXON Technologies (DIXON), India's largest EMS player is currently in a sweet spot given a confluence of rising demand,importsubstitution andfavorableregulatorysupportatthesame time.Thecompanyispreparingforaggressivescaleupacrossproductsegmentsbyinvestingin increasing management bandwidth, adding export markets as a key growth engine and continuouslyincreasingthevalue additioninproductslikelighting,washingmachinesandnow televisions. Fungible capacities, backward integration, focus on ODM solutions vs OEM and continuedadditionofMNCclientshavebeenkeygrowthenablersbehinddrivinga30%revenue and 56% PAT growth over FY1520. Further, an assetlight balance sheet, low WC cycle,...
|2020-08-29||PNC Infratech Ltd. +||Yes Securities||268.55||212.00||169.65 (58.30%)||Target met||Buy|