Broker Research reports: latest Downgrades
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Broker research reports for stocks which have been downgraded by brokers. Both recommendation downgrades,
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Downgrade the stock to Neutral (even after the steep fall). Revise TP to Rs 77 (1.4x Dec-20E ABV of Rs 55.4). Apparently, KVB reported yet another disappointing qtr with sequentially stagnant business momentum. Slippages jumped to ~Rs 9.1bn led by corp (~Rs 6.9bn, incl. IL&FS; of Rs 3.1bn). SME slippages, too, remained worryingly elevated at ~Rs 1.58bn. Recoveries were higher with two sales to ARCs for cash. Margins, surprisingly, were sequentially stable at ~3.6%.
We value the stock at Rs.425 (15x Dec-20E EPS) and maintain BUY JBM Auto (JBMA) delivered inline numbers in 3Q (revenue +9%, PAT+18%) amidst a challenging environment for the PV segment. We re-iterate our Buy rating on the stock, based on 1) New order wins in the sheet metal business from M&M;, Tata Motors and VECV 2) Encouraging revenue potential in the tooling business (high margin+30%), owing to rising localization and outsourcing of tooling requirements by major global OEMs (cost-benefit of 25% in India) and 3) Increasing economies of scale in the bus division, which will foster margins and profitability going ahead.
EBITDA margin was down by 1200bps on account of lower margin realisation from Oseltamivir sales in the US (treatment for flu). Initiated work on green-field manufacturing facilities for producing niche agrichemicals with focus on formulation products. Launched Valsartan-Sacubitril tablet in India and filed ANDA for generic version of Ibrutinib tablets in the US . We revise downward our Revenue/PAT estimates by 4%/3% for FY20 to factor lower sales from the US....
We reiterate a BUY rating with DCF based TP of Rs 590/sh (implied P/E - 17x Dec-20E EPS). Thangamayils (TJL) net revenue grew by 8.3% missing estimates (est. growth: 18.4%) as gold volume declined (-1.5% YoY) despite shift of festive season to 3Q (missing in 3QFY18). The quarter witnessed a double-whammy of high gold prices (+8% YoY) and natural calamity (Cyclone Gaja) in Tamil Nadu region which dented gold demand.
Remain bullish on the stock and maintain BUY with a TP of Rs 830 (14x Dec-20E EPS). Neuland Labs (NLL) reported encouraging numbers with 41% YoY revenue growth and a 73% YoY jump in EBITDA in 3QFY19. However, EBITDA margin remained muted at 9% of sales (in line) on account of continued raw material pressure, underutilized facilities and inferior business mix. PAT at Rs 46mn was up 5x YoY.
Monetisation of completed inventory of ~Rs 28bn remains key. We maintain BUY with Rs 292/sh TP. 3QFY19 Revenue came in at Rs 10.8bn, Rs 1bn lower due to IND AS 115. Margins came in at 31.9% (vs 20.0/27.7% YoY/QoQ). PEPL had deliveries of 7mn sqft in 3QFY19 alone (record deliveries of ~24mn sqft in 9MFY19, 141% ahead of full year guidance) leading to total unrecognized revenue of ~130bn, incl. ~Rs 75bn of earlier reversals (re-recognition over 2.5-3 years).
14 February 2019 volume growth of ~12% YoY. In our view and like we also mentioned in our 3QFY19 preview report the company is likely to have benefited from the INR1.53b), while adj. PAT increased 22.2% YoY to INR1b (in-line). EBITDA margin expanded 160bp YoY to 22.4%, led by lower employee costs (-30bp YoY to 15.8% of sales), partly offset by higher other expenses (+20bp YoY to 18.9%). PAT grew 15.5%, 26.1% and 26%, respectively. Overall volumes grew ~7% on a YTD basis.
Prestige Estates Projects or PEPL reported a net profit of Rs 674mn in 3QFY19, down 32.1% YoY and 24.1% QoQ. Residential sales volume at 1.21mn sqft increased from 0.78mn sqft in 3QFY18. Average realisation increased to Rs7,590/sqft from Rs6,869/sqft in 3QFY18 and Rs 6,104/sqft in 2QFY19. Rental income at Rs1,874mn increased 3% on QoQ basis and 14% on YoY basis. Earnings declined 32.1% on YoY basis on account of: 1) Lower revenues at Rs10,776mn, down 15.3% YoY. 2) Higher employee benefit expenses at Rs1,023mn, up 46.6% YoY. 3) Increase in other expenses by 139.7% YoY. 4) Increase in finance costs by 106.7% YoY. Earnings declined 34.1% QoQ because of: a) Decrease in revenues by 18.5% QoQ. b) Decrease in other income by 36.0% QoQ. We have retained Buy rating on PEPL and retained our target priceof Rs256...
Increased focus of the Chinese government on gas availability, construction of distribution infrastructure and suitable policies aiding consumption helped Chinese gas consumption to grow at CAGR of 16% during 2001-10 and another 10% during 2011-18.
Nestl's 4QCY18 nos show 4.8% decline in EBIDTA and 4.3% decline in PAT Change in Estimates | Target | Reco due to higher adspends on brand building and peaked out gross margins, we...
Action Construction Equipment (ACE) reported a weak Q3FY19 performance wherein revenues grew ~30% YoY to | 362.6 crore mainly driven by robust growth in cranes & tractors i.e. agriequipment segment EBITDA margin fell ~250 bps YoY to 7.2% largely due to impact of higher steel prices (COGS, up ~460 bps YoY), offset by operational efficiencies due to incremental demand growth. EBITDA was at | 26 crore, down 4.1% YoY. PAT de-grew 9.4% YoY to | 14.9 crore Cranes segment recorded revenue of | 249.2 crore growing 34.6%...
ICICI Securities Ltd | Retail Equity Research Cochin Shipyard (CSL) reported strong Q3FY19 numbers despite higher contribution from the shipbuilding segment. This is due to strong margins posted in both segments of the business. Shipbuilding and ship repair segment reported EBIT margins of 19.4% (normal margins 8-15%) and 39.8% (normal margins 25-35%) respectively. Shipbuilding and ship repair segment contributed 77.1% and 22.9% to the topline, respectively...
Coal India reported a healthy set of Q3FY19 numbers albeit lower eauction volumes acted as a dampener. E-auction volumes were at 14.7 million tonnes (MT), down 44% YoY, 17% QoQ. E-auction realisations came in at | 2847/tonne, up 42% YoY, 10% QoQ Sales volumes were at 154 MT, up 1% YoY. FSA volumes during the quarter were at 135.8 MT, up 11% YoY. FSA realisations were at | 1334/tonne (up 13% YoY, 2% QoQ vs. our estimate: | 1315/tonne) Topline came in at | 25045.8 crore, up 15% YoY, 14% QoQ, higher than our estimate of | 24545.7 crore. Reported EBITDA came in at...
ICICI Securities Ltd | Retail Equity Research Q3FY19 results were higher than I-direct estimates on all fronts. Revenues de-grew 1% YoY to | 556.7 crore (I-direct estimate: | 534.7 crore) on the back of high base of Oseltamivir (flu) in the US EBITDA margins were at 37.4% against 51.0% in Q3FY18 (I-direct estimate: 35.4%) mainly due to high base of gOseltamivir (flu) in the...
Bosch reported mixed Q3FY19 results. Revenues came in at | 3,096 crore (up 0.8% YoY). Gross revenues from the automotive segment (~80% of revenue) were flat YoY at | 2,537 crore, with the Powertrain Solutions business declining 2.7% YoY and the aftermarket division growing 5.8% YoY Gross revenue from the Non-automotive segment increased 4.8%...
In Q3FY19, Gujarat Borosil Ltd. reported sales revenues of Rs 48.9cr (down 7% YoY &13% QoQ), EBIDTA of Rs 9.2cr (down 18% YoY & 32% QoQ) with EBIDTA margin at 18.7% (down 240 bps YoY) led by pressure on realization because of cheaper imports and increase in power cost
Maintain BUY with a revised target price of Rs 605 (22x Dec-21E EPS + Rs 40/sh for specialty portfolio). Aided by forex gain (4% of sales) and subdued R&D; spend (6% of sales), Sun Pharma (SUNP) beat our earnings estimates by 40% with PAT at Rs 12bn in 3QFY19. Adjusted for forex, PAT was at ~Rs 9bn (+12/-1% YoY/QoQ). Similarly, EBITDA margin came in at 24% post forex adjustment, still ~200bps above our expectation owing to normalized specialty spend.
Astral's consolidated revenue growth of ~24% YoY in Q3FY19 was led by consolidation of Rex Polyextrusion (Rex) in the topline. Piping and adhesive segment recorded revenue growth of ~14% and ~15%, respectively. Piping segment volume growth at ~4% YoY was impacted by liquidity issue and systemic corrections (like channel financing and installation of billing software). On the adhesive segment, Resinova (domestic business) recorded slow revenue growth of 7% YoY on account of a high base...
ICICI Securities Ltd | Retail Equity Research Bata reported one of its best quarterly performances with a strong beat across all parameters. It reported robust revenue growth of 15.5% YoY | 778.7 crore (I-direct estimate: | 722.9 crore). This is the second consecutive quarter wherein Bata reported double digit revenue growth after 10 quarters. Sustained enhancement of product mix drove realisations (up ~13% YoY) with volume growth of 3%. Furthermore, SSSG grew 12% for the quarter...
