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|Summary||Date||Stock||Broker||CMP||Target||Change since reco(%)||Upside(%)||Type||Report||Discuss|
|2018-01-18||Hindustan Unilever L..||HDFC Securities||1362.55||1514.00||0.36||11.12||Buy|
We value HUL based on 43x P/E on Dec-19EPS to arrive at a TP of Rs 1,514. We maintain BUY. HULs net revenue grew by 10.8% to Rs 83bn. Like-to-like growth was at 17%, better than our expectation of 11%. Fiscal refunds contributed 2% to revenue. UVG was at 11% (4% in 2QFY18 and -4% in 3QFY17), vs. our expectation of 8.5%. EBITDA and APAT increased by stellar 24% and 30% respectively.
|2018-01-18||Infosys Limited||Axis Direct||1143.25||1345.00||-0.82||17.65||Buy|
Infosys reported in-line revenue but stronger-than-expected margin. Revenue growth at 1% QoQ (USD term) and margin at 24.3% were maintained despite wage hikes and higher variable payout. Growth was driven by Retail and Energy segments.
|2018-01-18||Shree Pushkar Chemic..||ICICI Securities Limited||296.30||360.00||0.44||21.50||Buy|
ICICI Securities Limited
ICICI Securities Ltd | Retail Equity Research Shree Pushkar Chemicals (SPCL) reported a strong H1FY18 with sales coming in at | 174.4 crore (up 20.9% YoY), EBITDA at | 30.8 crore (up 20.3% YoY) with corresponding EBITDA margins at 17.7%. PAT in H1FY18 was at | 17.4 crore, up 15.2% YoY SPCL has successfully moved up the value chain post commissioning its Phase 1 (3000 MT) fully integrated dyestuff capacity in March 2016. Through impressive client acquisitions, this...
|2018-01-18||Sterlite Technologie..||ICICI Securities Limited||376.45||440.00||-3.23||16.88||Buy|
|2018-01-18||Oriental Hotels Limi..||ICICI Securities Limited||59.70||85.00||10.56||42.38||Buy|
|2018-01-18||Jubilant Life Scienc..||ICICI Securities Limited||879.30||1090.00||-2.27||23.96||Buy|
ICICI Securities Limited
ICICI Securities Ltd | Retail Equity Research Revenues grew 39% YoY to | 2068 crore (I-direct estimate: | 1950 crore). Revenues in the pharmaceutical business grew 40% YoY to | 1101 crore (I-direct estimate: | 1078 crore) while life science ingredients (LSI) revenues grew 40% YoY to | 926 crore (I-direct estimate: | 799 crore). The beat vis--vis I-direct estimates in LSI was mainly on account of a favourable pricing environment EBITDA margins declined 209 bps YoY to 20.2% but came in above Idirect estimate of 18.3% mainly due to higher margins in the LSI...
|2018-01-17||Jubilant Life Scienc..||HDFC Securities||879.30||1020.00||-4.55||16.00||Buy|
Maintain BUY with a revised TP of Rs 1,020 (SOTP FY20E EV/EBITDA 11x for pharma + 5.5x for LSI). Jubilant Life Sciences (JUBILANT) top-line grew 42% YoY in 3QFY18, fueled by the continued traction in the LSI segment (up 40% YoY) and the addition of the Triad inorganic component. Adjusted for Triad, the top-line grew ~20%YoY. EBITDA came in at ~Rs 4.2bn, in-line with expectations. The margins contracted optically due to the dilutive Triad acquisition. The gross margin was ~62% (down ~450bps YoY), and the EBITDA margin 20.2% (down ~260bps YoY).
|2018-01-17||MindTree Limited||HDFC Securities||701.70||735.00||12.55||4.75||Buy|
Maintain BUY with a TP of Rs735, 17x Dec-19E EPS (16x earlier). Mindtree posted strong revenue growth and operating performance in 3Q. Revenue stood at USD 214mn, 4% QoQ CC supported by realisation increase of 5.9% QoQ. EBITDA% came at 15.1%, +348bps QoQ supported by multiple large projects transitioning into steady-state (+180 bps impact), and SG&A; leverage. APAT stood at Rs1.2bn, adjusted for (1) Rs65mn write-back of earn-out from prior acquisition (BlueFin, magnet360), and (2) Lower ETR% of 15.2% (24.9% in 2Q) impacting by ~Rs165mn.
|2018-01-17||Zee Learn Limited||Rudra Ltd||45.75||62.00||35.52||Buy|
Rudra recommends a positional call on Zee Learn with a target of Rs 62
PAN India presence with aggressive expansion in footprint, enrolment growth in its institutes, asset light business model, increasing capacity utilization and increase share of wallet makes ZLL a perfect play to participate in the growing opportunities of Indian education industry.
Company has entered into a new strategic line of manpower recruitment and training business through the newly incorporated subsidiary Liberium Global. This segment generated ` 14.33 Crore revenues in Q3 FY18 . The margins for manpower verticals are on the lower side. However, company see tremendous opportunities for growth. The business being a high ROI and low margin one, company looks to differentiate its offering through value added services and the management is confident that this business will provide robust growth in the future.
|2018-01-17||Multi Commodity Exch..||HDFC Securities||837.10||1165.00||-1.59||39.17||Buy|
Maintain BUY with a TP of Rs 1,165 implying a P/E of 35x Dec-19E EPS. MCX delivered bad set of numbers in 3QFY18, revenue was down 9.4% QoQ to Rs 610mn (our est. was Rs 615mn), led by 7.9% fall in ADTV. Options trading started in Oct-17 but the volume pick-up is very slow vs. expectation. Options ADTV stood at Rs 1.40bn (only 0.7% of futures ADTV, target is to reach 20-30% in the next six months). MCX is planning to launch four to five additional options contract in the next few months.
|2018-01-17||Delta Corp Limited||Motilal Oswal||336.80||382.00||1.28||13.42||Buy|
DELTA's revenue increased 56.6% YoY to INR1,622m (est. INR1,502m) in 3QFY18. EBITDA margin expanded 1,220bp YoY to 42.4% (est. of 45%), but was still slightly off from the sustainable high, as the quarter witnessed one-off advertisement expense of ~INR80m on account of World Poker Tour and World Gaming Festival organized by the company. EBITDA grew 119.5% YoY to INR687m (est. INR676m). Consequently, adjusted PAT rose 327.8% YoY to INR447m (est. INR433m) in 3QFY18. Casino gaming revenue grew 73% YoY to INR1,560m, whereas Hospitality revenue rose 28% YoY to INR233m. Online gaming revenue stood at INR284m.
|2018-01-17||Hindustan Unilever L..||Motilal Oswal||1362.55||1585.00||-0.68||16.33||Buy|
HUVR's 3QFY18 net sales rose 11.5% YoY to INR85.9b. Domestic consumer business grew 17% YoY, with 11% underlying volume growth. EBITDA increased by 23.9% YoY to INR16.8b (est. of INR16b) and PAT (bei) by 30.2% YoY to INR12b (est. of INR10.9b). Segmental performance: Home care and Personal care revenues were up 1.9% and 2.8% YoY, respectively. Sales of Foods and Refreshments- the relatively small segments - were up 7.5% and 7.2% YoY, respectively. EBIT margin expanded by 420bp YoY for Home care and 150bp for Personal care, while it contracted by 570bp for Foods and 110bp for Refreshment.
|2018-01-17||Jubilant Life Scienc..||Motilal Oswal||879.30||1110.00||-4.55||26.24||Buy|
Jubilant Life Sciences (JLS) delivered strong 3QFY18 results, with sales, EBITDA and PAT coming in above estimates. JLS recorded sales of INR20.7b (our estimate: INR19.9b), EBITDA of INR4.2b (our estimate: INR3.8b) and PAT of INR2.1b (our estimate: INR1.7b). Performance was led by improved business from the Life Science Ingredients (LSI) segment, full-quarter impact of Triad acquisition, and a lower tax rate. Strong show in LSI segment: LSI sales grew 39.6% YoY to INR9.3b, led by higher demand for JLS??? products. In addition, better pricing helped JLS to achieve highest-ever quarterly segment EBITDA of INR2b (margin of 22.3%).
|2018-01-17||MindTree Limited||Motilal Oswal||701.70||725.00||12.55||3.32||Buy|
3Q revenue growth of 3.8% QoQ exceeded our estimate by 130bp. Ramp-up in several engagements led to 8.3% QoQ growth in top customers, contributing 90% of incremental dollars. Continued strength in deal wins, high visibility in top accounts and a strong exit rate (expectations of continued momentum in 4Q) would ensure acceleration from 8% growth in FY18E to 12.6% in FY19E, without much of an ask (2.6% CQGR in FY19E v/s 3.1% in FY18E). EBITDA margin expanded by 350bp QoQ in 3Q v/s our estimate of +110bp QoQ, primarily led by  5.8% sequential pricing growth, as projects moved from a transition phase to a steady state,  SGA optimization and  absence of one-time expenses from 2Q. PAT at INR1.4b was higher by 13.5% QoQ and beat estimate by 33%, primarily led by operational beat and one-time tax reversal of INR249m.
|2018-01-17||Zee Entertainment En..||Motilal Oswal||599.65||1132.00||1.13||88.78||Buy|
Ex-sports revenue rebounded (+23% YoY) to INR18.4b on a low base (3QFY17 was impacted by demonetization). Consolidated revenue grew 12% YoY (7.6% beat). EBITDA expanded 15% YoY to INR5.9b (8% beat). Ex-sports EBITDA increased 17% YoY ??? lower than revenue growth due to higher SG&A related to a) an increase in original number of hours of content, b) three movie releases and c) INR400m of one-off expense related to Zee???s 25-year branding. EBITDA margin improved 90bp YoY to 32.3% (in-line). PAT rose 29% YoY to INR3.2b. Investment in secured NCD of INR1.67b is overdue, while Zee is pursuing recovery options.
|2018-01-17||Larsen & Toubro(L&T)..||Motilal Oswal||1371.95||1540.00||1.46||12.25||Buy|
Larsen & Toubro (LT) appears to be on track to meet its guidance of zero-to- marginal growth in FY18 orders, given the significant pick-up in 3QFY18 orders (announce dorders at INR373b). We estimate 5% growth in LT's FY18 order inflow, implying a4QFY18 run-rate of INR480b (+2% YoY). We note that domestic E&C execution growth had slowed down to 5% in 2QFY18 (v/s 15% in 1QFY18, 10% in 1HFY18), led by GST transition-related disruption. We,however, build in domestic E&C execution growth of 10%/12% for FY18/19, as the GST impact tapes off and execution picks up. As LT increasingly focuses on its 'Lakshya' strategic plan, NWC should stabilize at 20%of sales after bottoming out in 4QFY17 (18%).
|2018-01-17||Zee Learn Limited||Edelweiss||45.75||80.00||-2.45||74.86||Buy|
|2018-01-17||IndusInd Bank Limited||Axis Direct||1682.00||2060.00||1.06||22.47||Buy|
|2018-01-17||Tata Consultancy Ser..||Axis Direct||2954.75||3075.00||2.26||4.07||Buy|
Q3FY18 operating performance was a marginal miss on revenue and margin fronts. Revenue growth at 1% QoQ in USD terms was a narrow miss to street/ our expectations. Growth was driven by strong momentum in Retail (up 6% QoQ) and Energy & Utilities (up 8.5%).