Buy

ICICI Securities Ltd | Retail Equity Research VA Tech Wabag reported revenues of | 580.3 crore, up 27.1% YoY (Idirect estimate: | 579.9 crore). Domestic operations contributed 44% to the topline. Also, 78% of the topline came from the O&M; segment while the remaining was contributed by the EPC segment Absolute EBITDA increased 127.7% YoY to | 27.5 crore (our estimate of | 24.4 crore). EBIDTA margins came in at 4.7% vs. 2.6% YoY due to improved execution during the quarter. This was despite a 6% YoY increase in employee expenses. Our estimates for EBITDA...

ICICI Securities Ltd | Retail Equity Research Revenues grew 1% YoY to | 1187.3 crore vs. our estimate of | 1309 crore. The key reason for the same seems to be the execution of domestic orders wherein lower commodity prices are a pass through. Hence, revenues were impacted to that extent Order inflows have been quite encouraging for the company over the last five or six quarters. Q1FY17 was no exception as it recorded inflows to the tune of | 1960 crore. Even in Q2FY17E, till now, the...

JKLC’s operating performance was better than expected driven by better realisations. Exit from capex mode also visible and all capacities likely to be on stream by end of H1FY18. Given that realisation improvement sustains, possibilities of upgrades cannot be ruled out.At the price target, the stock will trade at a valuation of ~US$ 90/tonne. Fundamentals appear strong and if cement prices sustain, potential for recovery in earnings upgrade exists.

9 Asset quality performance was better than expectation due to sharp moderation in slippage. However the bank maintained its stressed assets watchlist position at Rs 313bn(2.1%ofloanbook).StandardrestructureddeclinedtoRs365bnVsRs390bnqoq. 9 At the preprovision level results surpassed our expectation, led by strong 44% yoy growthinnoninterestincomedrivenbytreasurygain.HigherprovisionsonNPAdueto...

Key highlights: Revenues were 3% below our estimates to Rs 19.43bn (+18% yoy). While US sales of US$ 104mn (+24% yoy) was in line of our estimates and Domestic formulations outpaced industry growth, the weak show by Latin America markets led to miss in sales estimates. Visible pricing pressure in US & higher employee cost caused 270bps negative surprise in operating margin at 19.5% (estimated 22.2%) that resulted in 15% below expected EBITDA at Rs 3.79bn. Thanks to forex gain of Rs700mn that supported PAT at Rs 2.18bn (10% below estimated). However, the tax rate was higher at 35% (vs 25% normal). The core earnings (adjusted forex gain and abnormal taxes) were 18% below expectation.Phillip Capital now value GNP at Rs 1000 i.e.19x FY18 EPS, implying 18% potential upside. Re?iterate BUY with a lowered TP of Rs 1000.

Sanghvi Movers (SGM) 1QFY17 revenues/EBITDA were ~8.2/11.5% below estimates on account of a seasonal fall in crane utilisation to ~79% (~84% in 4QFY16) and yield to ~2.8% (~3.15% in 4QFY16).

SBIN started FY17 with relatively stable asset quality (compared to peers including corporate-heavy pvt banks). At 2.2%, its watch list now includes overseas stress. Despite soft macro print, we believe GNPAs are close to peaking out for SBI at ~7% post the 3% slippage this quarter.

Sanghi Industries (SNGI) reported EBITDA/t of Rs 899 (vs. estimated Rs 781/t, 74.2% YoY, 30,5% QoQ). This was driven by an improvement in cement pricing (~6% QoQ) and continued low operating costs.

Second largest pump manufacturer in India with 15% market share having an planned capex of ` 250 crores in next three years Company expects the market for pumps and services to grow moderately & market for valves is expected to be sluggish, primarily due to poor demand from the power sector. Whereas, company has taken effective steps to improve operational efficiency to maintain the earnings. As a part of its growth strategy, company plans to expand its operations over the next five years. KSB will set up a new plant for manufacturing high-end engineered pumps for super critical thermal power plants at an estimated capex of around ` 250 Crores to be financed partially from internal generations and...

Key highlights: A strong operational performance led by lower raw material costs and improving efficiency at old plants. Higher copper by?product (gold & silver) prices led to positive surprise in copper segment revenues and profitability. The company after obtaining additional coal security via linkage coal auction is confident to maintain the cost discipline as obtained during Q1FY17. Copper smelter has ramped up smoothly after the maintenance shutdown in Q1FY17 and company expects better efficiencies going ahead.Phillip Capital retain Buy rating on the stock and increase their target price to Rs 170 (from Rs 120 earlier) valuing at average of FY17 & FY18 valuations (6.5x Ev/Ebidta).