Stock to Watch
The positive impulse sensed by Blue Star’s management earlier in 1QFY2013 has faded now with a deteriorating macro scenario. Some unexpected developments on the order book front and execution level are the prime reasons for the pessimistic outlook. We maintain our Buy recommendation on the stock with a reduced target price of Rs.224. The key …
We attended the annual investor meet of Persistent Systems (Persistent). We remain positive on the prospects of the company as it is well positioned to benefit from the next technology wave focused on cloud, mobility, analytics and collaboration. Following are the key takeaways of the meet: Focus on emerging areas – cloud, mobility, collaboration and …
Tata Consultancy Services (TCS) hosted an analyst briefing with Mr S. Mahalingam, CFO and Executive Director, and Mr Kedar Shirali, Head of Investor Relations. Following are the key takeaways: Stable demand environment with no change in outlook: TCS is on track to meet its full-year plan shaped in April 2012 and does not see any major …
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TTK Healthcare (TTKH), a part of the TTK group is present across businesses like pharmaceuticals, consumer products, medical devices and foods. The company has leading brands like Woodward’s Gripe Water with more than 50% market share and Eva which is a leader in women’s deodorant segment. TTKH’s continuous advertisement spend has resulted in suboptimal …
- Jaguar and Land Rover (JLR) recorded a strong wholesale volume growth of 18.7% yoy (24.2% mom) to 34,649 units for the month of November 2012, which was ahead of our estimate of 28,500 units, led by robust growth across Jaguar and Land Rover. – Jaguar sales posted a strong growth of 17.8% yoy (87.5% …
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Incorporated in November 1958, government-owned NMDC is India’s largest iron ore producer with a capacity of 32mn tonne. The company operates highgrade iron ore mines in Chhattisgarh and Karnataka. As of March 31, 2011, its estimated reserves and resources stood at 1,434m tonnes. Iron ore capacity to expand: NMDC aims to ramp up its production capacity …
Hexaware Technologies (Hexaware) has announced downward revision of its 4QCY2012 revenue guidance to US$92mn from US$94.7-96.5mn earlier; and thereby its full year CY2012 USD revenue growth guidance is now lowered down to 18% yoy from 20% earlier. The company attributed this to a sudden change in project scope and deliverables from a large client which …
Bharti Infratel limited (Bharti Infratel) is tower and related infrastructure providing company of Bharti group. It is one of the largest tower infrastructure providers in terms of number of towers own and operated by a company having pan India presence on a consolidated basis. Largest player in the sector: Bharti Infratel is one of the largest …
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Market share gainer, while maintaining best-in-class margins: CARE is the second largest rating agency in India, with large PSU banks such as IDBI, Canara and SBI, being its prominent shareholders (pre-offer combined shareholding of 58.2%). CARE has garnered market share from its globally affiliated peers in the past few years and even while doing so, it …
Uco Bank reported a flattish operating performance and net profit decline of 55.1% yoy during 2QFY2013, on back on interest reversals and/higher provisioning expenses, considering sequential deterioration in the asset quality. NIMs decline on interest reversals; Asset quality deteriorates sequentially: During 2QFY2013, the bank registered a healthy business growth, with both advances and deposits growing by …
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Government of India is divesting 37,008,720 shares (4% stake) in Hindustan Copper Ltd. (HCL) with an option to sell an additional 51,714,580 shares. It has set a floor price of Rs.155 for the issue. We recommend investors to AVOID subscribing to shares due to expensive valuation. Company overview HCL was incorporated in 1967 to take …
For 2QFY2013, Sadbhav Engineering (SEL) reported a poor set of numbers, which were significantly below our and consensus estimates. SEL had an order inflow of ~Rs.750cr during1HFY2013, taking its order book to Rs.7,947cr (3.4x FY2013E revenue), which provides good revenue visibility. We maintain our Buy view on the stock. Execution falters, to improve in 2HFY2013: On …
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For 2QFY2013, United Spirits (USL) posted a standalone top-line growth of 24.0% yoy to Rs.2,221cr (Rs.1,791cr in 2QFY2012), aided by one time sale amounting to Rs.315cr of bulk spirit stocks. Adjusted for the same, the sales growth stood at 6.4%, below our growth estimate of 8.9%. The PAT declined by 73.4% yoy due to higher …
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Views on markets today – The BSE Sensex declined 9.68 points or 0.05% to close at 18,329.32 and Nifty50 up 0.15 points or 0.003% to close at 5,571.55 led by stocks of Auto, Oil & Gas and a cautious market ahead of the winter session of parliament. – Mahindra & Mahindra gained 3.25% on expectations …
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The fiscal cliff refers to a substantial tightening of fiscal policy in 2013. Monetary policy cannot offset the cliff’s negative effect on the economy. However, it would be surprising if a deal were not reached, if not by the end of this year, then in early 2013. Due to concerns about the long-term budget picture, …
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For 3QCY2012, Nestle India (Nestle) reported a weak performance, both on the top-line and the bottom-line front. The top line growth at 7.8% yoy to Rs.2,116cr was the lowest in the past several quarters with volume growth under pressure. The net profit grew by 2.3% yoy to Rs.267cr. Key highlights during the quarter: Domestic sales grew …
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Andhra Bank posted a weak operating performance, with a 7.1% yoy decline in its operating profit. However, the bank was able to report a marginal net profit growth of 3.0%, aided by lower provisioning expenses (PCR declined by 723bp qoq). Slippages continued to remain elevated for the bank, which coupled with lower recoveries/upgrades, resulted in …
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Pennar Industries has reported a dismal consolidated quarter due to heavy engineering division witnessing a slow order inflow for the fifth straight quarter in the infrastructure segment. The Heavy Engineering segment showed marginal improvement, staying relatively flat compared to the last year but up 8.3% compared to last quarter. We believe the scenario looks grim …
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For 2QFY2013, Monnet Ispat (MIL) reported a robust operating performance; however, its bottom-line declined by 7.3% yoy mainly due to higher interest costs. We maintain our Buy rating on the stock. Robust top-line performance: MIL’s net sales grew by 19.3% yoy to Rs.547cr mainly due to increase in sales volumes of sponge iron (+15.4% yoy). Also, …
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UTDBK reported a net profit growth of 15.9% during 2QFY2013, despite moderate operating level performance, largely on account of yoy flattish provisioning expenses. The operating profit grew by 6.0% yoy, largely aided by a strong performance on the non-interest income front (higher treasury gains and robust recoveries), even as the NII de-grew by 2.8% yoy. …
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For 2QFY2013, Central Bank reported a decent set of numbers. The net profit was up by 35.1% yoy on a low base. Slippages were high but were on expected lines. Advances growth healthy; Asset quality pressures continue: Advances grew by 17% yoy, while growth in deposits remained weak at 8% yoy. The growth in savings account …
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For 2QFY2013, Madras Cements (MC) posted a healthy 19.9% yoy growth in its net profit to Rs.133cr, which was above our estimates. The company posted a highly impressive 10.2% yoy growth on the volume front indicating pick-up in cement demand in its key markets Tamil Nadu and Kerala. Realizations too were higher by 11.5% yoy …
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Canara Bank posted a disappointing operating performance during 2QFY2013, with operating income and operating profit witnessing a decline of 8.1% and 20.1% yoy, respectively, largely on back of 26.6% yoy de-growth in non-interest income. Consequently the bank witnessed earnings decline of 22.4% yoy. Asset quality pressures continued during the quarter, as slippages came in higher …
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For 2QFY2013, Simplex Infrastructures (Simplex) reported a modest set of numbers with revenue coming in line with expectations but owing to better-than-expected EBITDAM, earnings were higher than estimates. At the end of the quarter, the company’s order book stood at Rs.15,230cr (2.4x trailing revenue). Simplex witnessed an order inflow of Rs.1,092cr for the quarter which …
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For 2QFY2013, Bhushan Steel (Bhushan) reported a modest growth in top-line; however, its bottom-line was impacted by higher depreciation. Maintain Neutral. Net sales up 2.3% yoy: During 2QFY2013, Bhushan’s net sales grew by 2.3% yoy to Rs.2,446cr mainly on account of higher realizations, partially offset by lower volumes. Flat products’ sales volumes decreased by 2.1% …
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For 2QFY2013, Sun TV Network Ltd (STNL) reported a 15.8% yoy decline in net profit to Rs.152cr. The company’s OPM contracted by 506bp yoy to 75.9% largely on the back of 281bp yoy increase in cost of revenues as a percentage of sales (due to a non-fictional show produced during the quarter) and shift from …
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For 2QFY2013, Britannia Industries (Britannia) posted a top-line growth of 8.4% yoy to Rs.1,403cr (Rs.1,294cr in 2QFY2012). Net profit grew by 18.9% yoy to Rs.45cr, aided by a 141.2% yoy growth in other income to Rs.27cr. Key highlights for the quarter: Britannia’s top-line grew by 8.4% yoy largely on account of higher prices as volume growth …
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Dena Bank posted a healthy performance on the operating front during 2QFY2013, with a growth of 15.9% and 24.2% yoy, respectively in operating income and operating profit. On the earnings front, the bank witnessed a healthy growth of 23.8% to Rs.240cr. Business growth continues to be aggressive; Asset quality pressures witnessed: During 2QFY2013, the bank continued …
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During 2QFY2013, State Bank of India (SBI) reported a 30.2% yoy growth in its standalone net profit to Rs.3,658cr, which was in-line with our estimates. The operating level performance was largely subdued, as pre-provisioning profit declined by 1.6% yoy. Slippages came in at elevated levels of 3.3%, which we had anticipated. Slippages remain at …
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Corporation Bank registered a subdued performance on the operating level, with both operating income and operating profit declining by 1.1% and 2.1% yoy, respectively. On the earnings front, despite witnessing a PBT level decline of 15.8% yoy on higher provisioning expenses considering deteriorated asset quality, lower effective tax rate aided the bank to a report …
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ondor Gold has started a 7,000m Drilling Programme on its La India Gold Project in Nicaragua. The project currently has a CIM compliant Mineral Resource of 2,375,000 oz gold at 4.6g/t and has a an Indicated Mineral Resource within the current Whittle open pit of 534,000 oz gold at 3.9g/t> the current drill programme involving 3 …
Cadila Healthcare (Cadila) reported just-in-line expected numbers for 2QFY2013. The company’s sales for the quarter were just-in-line with estimates at Rs.1,513cr. On the operating front, the gross and operating margins reported a dip on a yoy basis. This along with a higher tax expense during the quarter resulted in net profit coming in a tad …
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For 2QFY2013, NMDC’s result was below our estimates on account of lower-than-expected sales volumes. We downgrade the stock from Buy to Accumulate. Volumes declines 22.8% yoy: NMDC’s net sales fell by 14.7% yoy to Rs.2,612cr mainly due to lower volumes which declined 22.8% yoy to 5.85MT. Iron ore sales volumes were low due to lower off …
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Indraprastha Gas’s (IGL) 2QFY2013 top-line grew by 43.1% yoy. However, EBITDA and PAT grew by only 30.8% yoy and 28.5% yoy on account of higher RLNG and interest costs. Maintain Neutral. Top-line driven by volume and realization growth: The company’s net sales grew by 43.1% yoy to Rs.855cr mainly driven by increases in both, sales as …
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BGR Energy (BGR) reported a dismal set of numbers for 2QFY2013, below our expectations. The company registered an 18.7% yoy decline in top-line to Rs.627cr. The increase in interest cost by 32.8% to Rs.40cr, due to working capital borrowings led to a decline in PAT by 32.4% yoy, which came at Rs.35cr, lower than our …
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Gujarat State Petronet’s (GSPL) 2QFY2013 volumes continued to decline led by declining production from KG D6. The top-line decreased by 1.3%. Maintain Neutral. Transmission volumes continue to slide: GSPL’s total operating revenues decreased by 1.3% yoy to Rs.277cr mainly due to decline in transmission volumes, partially offset by higher tariffs. Transmission volumes for 2QFY2013 decreased by …
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For 2QFY2013, Bharti Airtel’s (Bharti) revenue as well as operating margins came in-line with our as well as the street’s estimates, however its bottom-line disappointed because of higher tax paid. Telecom revenues in India have been depressed due to subdued subscriber addition and stable pricing. The EBITDA margin of Africa came in as a positive …
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Strong JLR performance; weak standalone results: Tata Motors (TTMT) registered a lower-than-expected bottom-line performance for 2QFY2013 due to sequential decline in operating margins (down 99bp to 12.3%) on account of deteriorating standalone performance and higher tax rate (32% as against 27.3% in 1QFY2013). Nevertheless, Jaguar and Land Rover (JLR) witnessed margin expansion of 40bp qoq to …
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SAIL reported disappointing 2QFY2013 results as both net sales and net profit were below our estimates due to lower-than-expected sales volumes. Maintain Neutral. Volumes continue to disappoint: SAIL’s net sales declined by 1.6% yoy to Rs.10,663cr (below our estimates of Rs.10,960cr) mainly due to lower volumes which were down 8.8% yoy to 2.6mn tonne. Lower sales …
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IDBI Bank reported a healthy operating profit growth of 18.2% yoy, despite witnessing a 45.5% yoy increase in employee expense (on back of higher provisions for pension & leave encashment and increased staff strength), largely aided by a 50.4% yoy growth in income from CEB (one-off element to the tune of Rs.125cr, excluding which CEB …
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