Sell

Venky's stock has now run up 216% since we initiated coverage (July, 2017) on the stock. In the last three months, the stock has appreciated 85%, as strong earnings performance in recent quarters has led to better perception among investors, aiding a re-rating. In our last update (March, 2018), we had noted signs of weakening poultry prices. Over the last month, decline in poultry prices has been sharper (more than 20% decline y/y), which is likely to affect near-term performance of the stock negatively. Moreover, industry sources indicate that there may be an excess supply in...

PTC India Financial Services (PFS) has been a financier to small and medium power projects. Consistent focus on small and medium power projects, especially renewable segment has led to healthy growth in advances at 45% CAGR in FY12-16. Asset quality had been resilient with near zero NNPA and marginal GNPA till Q3FY15. However, a slowdown in the power sector and slippage from restructured accounts led to a rise in NPA. Given the current business environment plagued by a slowdown in investment activity and increasing competition from banking peers,...

NIIT Tech reported steady 2.6%/12.4% QoQ growth in revenue/PAT in Q3FY18. New management based across geographies is expected to result in client additions across the segments. Management has indicated strong deal pipeline in coming quarters. We expect steady double digit revenue growth in FY19 on account of growth across BU's, strong executable pipeline and large order wins. All the positives have already factored in price, hence we recommend to sell the stock with target price of INR 740. Conference call highlights Management indicated Q4FY18 and FY19 to report strong double digit growth on the back of strong order intake and deal pipeline. NIIT Tech now has a decentralized presence with one EVP Europe,...

Cox & Kings recently declared its financial results for Q3FY18 and 9MFY18. The growth was driven by Meininger operations which witnessed healthy utilisations at the newly opened facilities. Segment wise results: Leisure India, Leisure International, Education and Meininger reported...

ICICI Securities Ltd | Retail Equity Research Pitti Laminations (Pitti) reported a steady Q3FY18 performance, with net sales for the quarter at | 77.3 crore, up 0.5% YoY. Recovery in sales was stalled this quarter (vs. H1FY18, up 41% YoY) due to loss of production days (30) on account of shifting of manufacturing base from Hyderabad, Pune to its new facility in Aurangabad, Maharashtra EBITDA in Q3FY18 was at | 11.2 crore with corresponding EBITDA margins at 14.5% and PAT at | 2.7 crore vs. | 1.9 crore in Q3FY17...

Ambuja Cements' (ACEM) result was above estimates with EBITDA at Rs4.4bn against our estimate of Rs3.8bn and EBITDA/tonne at Rs750 against our estimate of Rs655, led by lower opex. Key surprise was sequential decline in other expenses. Sales volume was up 15.3% yoy at 5.87mt, supported by low base (volume declined 7.8% in Q4CY16). Realization grew by 3.5% yoy to Rs4,450/tn (vs. estimated Rs4,451/tn). EBITDA/tn stood at Rs750 vs. Rs586/Rs617 in Q4CY16/Q3CY17. with clinker capacity of 3.1mt (phase I of 1.7mt clinker unit by H1CY20). We would await more clarity on this project, as it is being talked about for the last few years....

Thermax Ltd (TMX) is a leading energy and environment solutions provider. They offer integrated innovative solutions in the areas of heating, cooling, power, water & waste management, air pollution control and chemicals ....

Sector: Banking /Small-Cap | Earnings Update 3QFY18 Background: Karur Vysya Bank (KVB) is one of the mid-sized banks in the private sector space, operates through a network of 773 branches and about 1,777 ATMs. KVB's business - 82% is concentrated in South India with about 73% of its branch footprint in Tamil Nadu and Andhra Pradesh. As of 3QFY18 the total...

We maintain SELL on KPDL with NAV based TP to Rs 312/sh. Kolte Patil Developers Ltd. (KPDL) delivered strong 3QFY18 revenue growth of 17.8% YoY, lead by year end sales promotions in key projects viz. Life Republic, Ivy Estate, Western Avenue & Downtown. KPDL has achieved 0.6mn sqft of pre-sales during 3QFY18 and guided for sustaining the pre-sales momentum in Q4FY18E.

GE T&D;'s Q3 order inflow was lower 30% YoY to Rs 7.8 bn and order backlog was down 12% YoY to Rs 72 bn. Company won major orders from Sterlite Power and Gujarat Transco during Q3.