Latest broker research reports
with sell recommendations along with share price targets forecast and upside.
Browse thousands of reports and search by company.
Broker Research reports: Sell reports
for all stocks
1) Languishing throughput, 2) rising cost of retailing and 3) shrinking cost arbitrage between this off-line pipe' (read: department stores) and online folks make us wary about the long-term vitals of this format. Ergo, we downgrade the counter to SELL (earlier NEUTRAL). Note: The de-rating cycle for global department stores has been quite severe and we fail to see why Indian counterparts buck the trend. We revise our DCF-based TP marginally upwards to Rs. 370/sh (earlier Rs. 360) largely mimicking revision in FY21/FY22 EBITDA estimates (+4% each) to factor in better SSSG and revenue per sq. ft on low base. Industry pioneer STOPs performance continues to be lackluster as 1) the department format continues to lose footfalls courtesy struggling legacy standalone stores. 2) Private label-led upside in top-line/profitability is expected to be gradual, if at all as the apparel space continues to fragment, 3) Cost of retailing is inching up (up 96bp/260bp YoY over 9MFY20/2 years), 4) Working capital continues to balloon, 5) Cost arbitrage between this off-line pipe and online folks continues to shrink.
Taro had weakest sales in 22 quarters with 16% YoY (and 8% QoQ) decline to US$148m in Q3FY20. Higher intensity of competitive pricing and lack of volume growth in derma portfolio were key reasons for strong erosion in sales. Gross profit was US$94m, declined by 20% YoY and 8% QoQ, while gross margin was 63.7% compared to 66.6% in Q3FY19 and 63.1% in Q2FY20. EBITDA declined by 24% YoY (and 14% QoQ) to $63.6mn, while EBITDA...
JSW Steel Ltd is the largest private sector steel manufacturer in terms of installed capacity. It is also one of the lowest cost steel producers in the world. It offers a wide range of steel products like Hot Rolled, Cold Rolled, Galvanized, Galvalume, Pre-painted Galvanised, Pre-painted Galvalume, TMT Rebars, Wire Rods & Special Steel Bars, Rounds &...
TCV was strong at US$1.23 bn (M9FY20: USD 3.2 bn, 151% YoY) led by US$ 900mn mega deal with Jackson National Life, this deal will be executed over a period of six years with revenue flow starting in the Q4FY20E....
Revival in revenue growth key thing to watch Dollar revenues grew 3.4% sequentially after two consecutive quarters of decline. The growth was aided by one-off projects in the CLX business and milestone accruals. The management said the soft Q4FY20E was on account of one-off gains in Q3 and delay in ramp up of projects. Taking into consideration the weak performance in H1FY20 and a softer Q4FY20E, we expect mere 2.2% YoY revenue growth in FY20E. The company has faced certain client specific issues in the past and pressure in legacy business. In...
JUBILANT Adj. Sales declined 3% YoY to Rs 23.2bn (PLe Rs24.6bn) on account of 11% YoY decline in LSI (Life Science Ingredients) segment. Adj. EBITDA grew 3% YoY to Rs5.1bn (PLe Rs5.1b), while EBITDA margin expanded by 116bps to 21.9% (PLe 20.8%). With installation of instruments, Ruby-fill received better traction from hospitals though the expectation seems to be short-lived with new prolong legality of Bracco over IP assets. US formulations and API sales to remain muted in FY21E, given the FDA's six...
31 January 2020 Despite the weakness at the top client, revenue growth and margins were largely in line with our estimates. The positive outlook on all key verticals and the healthy deal pipeline within IBM are likely to translate into decent revenue growth (8.6% CAGR, USD) over FY20-22. Also, SG&A; optimization will likely leave ~120bp headroom for margin expansion over FY20-22. Our EPS estimates over FY20-22 remain largely unchanged. Despite the sharp re-rating (40% over last year), reasonable multiples offer margin of safety, in our view. Revenue grew 7% YoY to USD129m, EBIT declined 38% YoY to INR806m and PAT was down 4% YoY to INR879m largely in line with our estimates. Growth was led by Services (+6.1% QoQ) and Digital (+6.8% QoQ), partially offset by a decline in Alliance (2% QoQ) and Accelerite (~14% QoQ). While IP-led revenue declined by ~2.
A mix of favourable yet transient dynamics saw eClerx (ECLX) staging a surprising operational beat in Q3FY20 (revenue up 3% QoQ, EBIT margin up 590bps).
