Buy

Arvind’s Q1FY17 consolidated revenue grew 18% YoY (down 9% QoQ) to | 2104 crore (I-direct estimate: | 2100 crore). Due to implementation of IND-AS, it reclassified its segments, following which fabric retail (The Arvind store) would now be a part of standalone business. However, earnings from brands like Tommy Hilfiger, premium wholesale garments (Calvin Kline), etc, where Arvind does not have controlling interest, would now directly form part of PAT • Revenue from brand & retail grew 26% YoY to | 553 crore. Revenues from ‘Power’ brands (excluding Tommy Hilfiger) grew 27% YoY to | 300 crore. EBITDA margins for the same were at 10% compared to 9.6% in Q1FY16. Following the effect of store closures, “Unlimited” revenues de-grew by 7% YoY. ICICI Securities Limited continue to maintain BUY recommendation with a target price of | 370.

Trendlyne has 7 reports on ARVIND updated in the last year from 2 brokers with an average target of Rs 367.5. Brokers have a rating for ARVIND with 1 price upgrade in past 6 months.

Bharti Infratel reported its Q1FY17 numbers under the new IND AS wherein Indus numbers were reported under equity account (share of profit from JV) vs. proportionate consolidation earlier • On a like to like basis, revenues came in at | 3210.6 crore, up 6.9% YoY, lower than our expectation of a topline of | 3142.1 crore. Revenues from rentals grew 9.1% YoY to | 2057.3 crore as consolidated tenancies grew from 2.13 to 2.2 over the same period. Rental revenues grew 2% YoY to | 1153.3 crore. ICICI Securities Limited maintain our BUY recommendation with a target price of | 450, based on a SOTP-DCF based methodology.

Trendlyne has 8 reports on INFRATEL updated in the last year from 3 brokers with an average target of Rs 461.7. Brokers have a rating for INFRATEL with 2 price downgrades in past 6 months and 4 price downgrades in past 1 Year.

GSK Consumer Healthcare (GCHL) reported lower-than-expected Q1FY17 net sales with YoY decline of 1.6% to | 1002.6 crore (I-direct estimate: | 1040.2 crore). Adjusting for the impact of Ind AS, net sales were at | 934 crore. Other operating income increased 3.8% YoY to | 56.8 crore on the back of 13% increase in business auxiliary income..ICICI Securities Limited maintain BUY recommendation with a target price of | 6765 per share.

Trendlyne has 9 reports on GSKCONS updated in the last year from 3 brokers with an average target of Rs 6485. Brokers have a rating for GSKCONS with 1 downgrade,3 price downgrades,1 upgrade and 2 price upgrades in past 6 months.

Bharat Electronics (BEL) reported weak Q1FY17 numbers, which were below our estimates on all fronts. On a standalone basis, the company reported revenues of | 871.4 crore, down 20.4% YoY (our estimates: | 1239 crore for the quarter). This was primarily on account of delayed booking of orders. The same is also visible in inventory accretion for the quarter . BEL reported an EBITDA loss of | 46.7 crore in Q1FY17 vs. loss of | 5.4 crore in Q1FY16. They estimated positive EBITDA of | 33.3 crore for the quarter. Hence, EBITDA margins came in at -5.4% for the quarter. ICICI Securities Limited value BEL at | 1560 (unchanged TP) i.e. 25x P/E on FY18E EPS of | 62.4 and retain BUY recommendation on the company.

Trendlyne has 8 reports on BEL updated in the last year from 5 brokers with an average target of Rs 1433.8. Brokers have a rating for BEL with 1 price downgrade and 1 price upgrade in past 6 months.

Reported rating revenues were at | 56.7 crore (up 18% YoY) vs. our estimates of | 54 crore. Higher growth was due to increase in both volumes & surveillance exercises carried out. Total volume of new debt rated increased from | 265000 crore to | 378000 crore with increases being witnessed in both corporate debt & bank loans rating • Other income was at | 2.5 crore vs. estimate of | 3.1 crore down 14.8% YoY mainly due to investments made for a longer tenure where income is booked only when earned & not on an accrual basis • EBITDA came in at | 35.3 crore vs. | 27.9 crore expected while the EBIDTA margin was at 62% vs. 52% expected. This was mainly due to higher revenue & lower-than-expected expenses of | 21.9 crore. Esop charges of | 1.34 crore in Q1FY16 were not there in Q1FY17. Further, other expenses saw a decline of 25% YoY to | 4.2 crore. They stay structurally positive on the rating business in next three to five years. ICICI Securities Limited maintain TP of | 1400 valuing at 23x FY18E EPS, maintain BUY.

Trendlyne has 4 reports on CARERATING updated in the last year from 2 brokers with an average target of Rs 1496.

ICICI Securities Ltd | Retail Equity Research Revenue for Q1FY16 slightly missed our estimates with growth of 2% YoY (down 1% QoQ) to | 425.5 crore (I-direct estimate: | 431 crore). Following the IT implementation in surface logistics, revenue from KWE de-grew 1% YoY to | 282 crore. Standalone revenue growth (up 9% YoY) to | 127.6 crore. We continue to stay supportive of growth in e-commerce business, which grew 29% YoY to | 58 crore EBITDA for the quarter grew 12% YoY (down 12% QoQ) to | 33.4...

For 1QFY2017, HCL Technologies (HCL Tech) posted better-than-expected numbers on all fronts. In US$ terms, revenue came in at US$1,691mn V/s US$1,674mn expected and V/s US$1,587mn in 3QFY2016, ie a growth of 6.5% qoq (6.0% qoq in constant currency [CC] terms). On the operating front, the EBIT margin came in at 20.6% V/s 19.4% expected and..

State Bank of India (SBI), founded in 1806, is the oldest and largest commercial bank in India engaged in providing a range of banking and financial services. SBI has a total of 16,784 branches making it the country largest bank accounting for around 17-18% share in banking industry business. With the declining stressed level and improving balance sheet quality due to AQR, SBI is well poised to avail business opportunities that are likely to emerge with the improving Indian economic scenario and enhancing financial inclusion. We are of the view that SBI is likely to...

Triveni Turbine (Triveni) 1QFY17 reported a stellar 1QFY17 with revenue/PAT growth of 25/23% YoY. Revenue traction was led by 137% YoY growth in exports (both product and after-market sales). Higher after-market sales ( 60% YoY) aided in 40bps YoY margin expansion to 20.5%.

Cummins Indias (CIL) 1QFY17 missed estimates as exports (-21% YoY) continue to witness decline. However domestic sales growth at 7% YoY was in line. Contrary to our expectation, gross margins fell 50bps YoY, which the management attributed to change in mix.