Buy

BUY Whirlpool of India Ltd at CMP Rs. 917 and add on dips Rs. 820-850 to band for the Sequential Targets Rs. 1030-1113

BUY Hindustan Media Ventures Ltd between Rs. 275 - 252 for the target of Rs. 315 - 360

PNC Infratech (PNC) delivered strong 1QFY17 adjusted net profit beat, ~14% ahead of our estimates, aided by lower interest expense. Other income included ~Rs 140mn on account of interest charged on Rs 850mn loss funding loan given by PNC to its Ghaziabad - Aligarh SPV (cumulative impact from 1QFY16). Going forward, the quantum of other income is expected to reduce accordingly.

While 1QFY17 order inflow was Rs 780mn, PNC has won new orders worth Rs 13.7bn in 2QFY17E (incl. L1 of Rs 1.2bn). With a strong state/NHAI roads pipeline, PNC is well placed to achieve our FY17E guidance of Rs 47.2bn. Maintain BUY. Roll forward EPS to Sep-18E, Increase TP to Rs 144/sh.

Infinite Computer Solutions (India) Ltd. is an Indian multinational technology company headquartered in Bangalore, India. The company is a global service provider of application management outsourcing, remote infrastructure management services, research & development & intellectual property leverage solutions and related Information technology (IT) services for fortune 1000 companies. Its services include IT services, which consists of application management and infrastructure management; Product Management, which consists of Datacom, Wireless, Optical, Messaging Infrastructure and broadband networking, and...

Strong international presence; Customer centric focus to bode well The Company has taken various initiatives to improve global footprint gradually by analyzing the customer's requirement. It has created a marquee clientele in the international market by having strong and solid channel partners in main hubs of UAE and Hongkong, the company stands to gain in...

G2000 companies and leveraging 1) its strong presence in IMS and Engineering & RnD Services, 2) continuous enhancement of its capabilities across Digital technologies (currently ~10% of revenue), 3) Eco-system driven approach and 4) M&A.; HCLT also confirmed that the IP partnership it recently entered with a global Technology major would add revenue of US$100mn in the first year of which US$30-40mn would come in FY17. HCLT has reiterated its FY17E guidance for revenue growth (Ex-consolidation of Geometric) of 12%-14% in CC and EBIT margin of 19.5%-20.5%. We maintain our forecast of revenue/EPS CAGR of 13.2%/11.4% for FY16-18E and expect the...

DCM Shriram Ltd. is a leading business conglomerate with a group turnover of Rs. 6,050 crores. The business portfolio of DCM Shriram comprises primarily of two types of businesses.Agri-Rural Business: Urea & SSP fertilizers, Sugar, Farm inputs marketing such as DAP, Crop care Chemicals, Hybrid Seeds.

They initiate coverage on DCM Shriram Ltd as a BUY @210 with a target of Rs 280 representing a potential upside of 33% from the buy price. DCM Shriram Ltd is trading at a low PE of 10.65.

Phillips Carbon Black (PCBL) reported a robust Q1FY17 performance; largely tracking our investment thesis. Net sales for the quarter were at | 430.6 crore, down 10% YoY • EBITDA was at | 53.0 crore with corresponding EBITDA margins at 12.3%. PAT in Q1FY17 was at | 12.0 crore. Carbon black sales volume in Q1FY17 was at 95,500 tonne, which includes domestic sales of 76400 tonne and export sales of 19,100 tonne. Corresponding EBITDA/tonne in Q1FY17 was at | 5548 tonne.

ICICI Securities Limited expect PCB to report PAT of | 45.5 crore in FY17E & | 93 crore in FY18E. We value PCB at | 300, i.e. 11x P/E on FY18E EPS of | 27/share. We have a BUY rating on the stock.

 

HCL Technologies (HCLT) held its analyst meet to articulate its three mode strategy for building a 21st century enterprise. The management expects opportunities and deal win in Mode 1, especially in IMS & Engineered Services to sustain growth rate whereas demand for Mode 2 services is at an inflection point, which can accelerate and potentially grow 20-30% for coming years. In Mode 3, it will have modest expectations and would pursue selected opportunities. In terms of FY17 guidance, the company maintained its revenues growth guidance of 12- 14% in CC terms (11.2-13.2% in dollar terms) with EBIT margin band of 19.5-20.5%.

Valuation: The stock is currently trading at attractive valuation of 12.6x FY18E along with attractive dividend yield (~3%). They maintain BUY recommendation with a target price of | 950 (15x FY18 EPS).

ARBP’s top line grew 12% YoY to Rs 37bn in 1QFY17, led by 19% growth in US business (45% of revenues). EBITDA margin improved 30bps sequentially to 23.9% (+203bps YoY) with superior business mix. EU operations (27% of revs) benefited from sourcing efficiencies, operating leverage and new products. Reported PAT increased 35%YoY to Rs 5.8bn.

Valuation: ARBP trades at 15.1x FY18E EPS, a yawning 25-30% discount to sector averages. This is understandable, given the purely generic nature of the business mix. With improving profitability and free cash flows, this gap can reduce. Resume coverage with BUY rating and a TP of Rs 925 (18x FY18E EPS).