Brokerage Research Reports share price target

Background: Kajaria Ceramics is the largest manufacturer of ceramic/vitrified tiles in India and the 8th largest in the world. It has present annual capacity of 70.40 mn. Sqm (28.10MSM Ceramic tiles, 44.9MSM Vetrified tiles) spread across eight plants; three plants in Morbi, Gujarat with cumulative capacity of 15.9 MSM, one each in Sikandrabad - UP (8.4MSM), Vijayawada - AP (2.9 MSM) and Sri Kalahasti - AP (5 MSM), Malootana Rajasthan (6.5 MSM) and Gailpur - Rajasthan (34.3...

Prefer upstream companies on spike in crude oil and expected gas realization. Crude oil prices have increased sharply to ~USD90/bbl, due to healthy demand recovery coupled with geo political tension. With onset of state elections in key Indian states next month, we believe OMCs marketing margins may come off from current Rs4.5/3.0litre levels for diesel and petrol. This will likely impact OMCs stock performance, despite healthy refining margins which have improved from pick-up in economic activity and gas to oil switch. We leave our earnings and recommendation unchanged but prefer...

Continued strong headcount addition (+4% QoQ, +30% YoY) LTI reported revenue growth of 9.2% QoQ CC, +8.7% QoQ $ slightly above our estimates. (Ple: 8%). This is second consecutive quarter of greater than 8% sequential growth. Growth was led by Manufacturing (+18.3% QoQ USD) and BFS (+9.7% QoQ USD) which together contributed 69% of incremental revenue. Growth in manufacturing was aided by higher pass through revenue...

by 1) increasing deal pipeline every quarter, 2) highest ever headcount addition (+11.9% QoQ, +25.2% YoY); 3000 freshers added in 9MFY22 and plan to add similar number in FY23 and 3) healthy deal momentum with 3 USD 10mn+ deals and two empanelment with potential TCV of USD 50 mn each over 5 years and 4) huge success in client mining with $45 mn large deal in EACV space being 3rd deal from same client in past three quarters adding to total TCV of $90 mn. FY22 USD revenue growth guidance of 19-20% remains intact implying 2-4% QoQ USD growth in Q4FY22....

Recovery on-track; Omicron impact key monitorable

LTTS reported a 4.2% QoQ CC growth in 3Q, 100bp below our estimate due to softer Industrial Products (+0.7% QoQ) and Medical Devices (+1.5% QoQ) on a high base of 2QFY22. Operating leverage aided the 20bp QoQ improvement in EBIT margin to 18.6% (In line), despite adding a record 2,135 net employees (+12%), lower utilization (-220bp) and on-site mix (+50bp). It reported an attrition of 17.5% (+100bp QoQ). USD revenue/INR EBIT/INR PAT grew 20%/59%/48% YoY in 9MFY22. The management maintained its 19-20% USD revenue growth guidance. It...

PAT grew 23% QoQ and 125% YoY to INR1.65b (9% beat) in 3QFY22. The beat on profitability was driven by a) a 2% beat on operating revenue (up 17% QoQ and 105% YoY to INR3.5b) owing to a 5% beat on interest income, whereas net brokerage revenue was in line with our expectation; b) a 4% beat on other income (growth of 5% QoQ and 85% YoY); and c)...

HDFCB's PAT at Rs103.42bn was marginally higher than estimate (PLe: R101.53bn), led by a better than expected NII growth of 13% YoY on the back of healthy loan growth of 16.5% YoY. NII traction remained lower than loan growth for some time now due to high B/S liquidity & non-retail focus. In our view, HDFCB has faced challenges in maintaining loan growth momentum leading to slower NII growth. Said that, improving traction in retail and commercial & rural banking is expected to improve loan & fees coupled with...

Delicately Poised: Indian economy is delicately poised with mixed signs of post 2nd wave recovery with strong tailwinds from 1) IT services with record hiring and salary hikes 2) expected gains from China+1 supply chain realignment in Pharma, Chemicals, Textiles etc. 3) rising visibility of private sector capex to kick start led by cement, steel, Oil and Gas, Textiles, Data centres etc. 4) PLI schemes amounting to Rs1600bn over coming 3-4 years and 5) huge Govt led Infra capex amounting to USD1400bn. However, slowdown in rural demand, increase in inflation, firm crude prices, disruption in global supply chain are headwinds. 3rd Covid wave with lower...

The retail price inflation for December was recorded at 5.59 percent in December versus market expectations of 5.80 percent and previous month's reading of 4.91 percent. The keenly watched inflation numbers from the U.S coming along...