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Old 03-02-2015, 10:20 AM
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Default brokers report on stocks

Few reco from broker

Stock Update

HCL Technologies
Reco: Buy
PT: Rs2,050
CMP: Rs1,794




Beats the Street on all counts, Buy maintained with a PT of Rs2,050



Key points

After two quarters of steady performance, HCL Technologies (HCL Tech) has delivered a strong all round performance for Q2FY2015 and beat the Street estimates on all counts. IMS has made a strong comeback with a 6.2% Q-o-Q growth, while the IT services grew by 6.3% QoQ and BPO by 4.5% QoQ on a constant-currency basis. The total revenues were up by 4% QoQ to $1,490.8 million (6.2% on a constant-currency basis), which is highest among the top four IT companies. HCL Tech outperformed on the basis of margins despite a staggered wage hike and 15% Q-o-Q increase in S&M spends. The EBIT margins have remained broadly stable QoQ at 23.8% as compared with 23.9% in Q1FY2015. The net income for the quarter was higher by 2.2% QoQ to Rs1,915 crore, however adjusting for a Rs153.6-crore one-off gain from the real estate sale in Q1FY2015. The net income for the quarter grew by 3.1% QoQ.

The operating metric performance remain healthy with 6% and 7.2% Q-o-Q growth in the USA and Europe respectively on a constant-currency basis, while on the industry vertical side life sciences and healthcare grew by 19.3% QoQ, and retail and CPG grew by 8.6% QoQ. The company added 11,734 gross headcounts during the quarter (5,018 added net levels), while attrition remained stable at 16.4%. Deal wins remained healthy as the company signed 15 transformational deals worth $1 billion in TCV for the quarter (cumulative TCV of $4 billion in the last four quarters). It also added two clients in the $40-million client bucket and one client in the $50-million client bucket.

HCL Tech is back with top of the quadrant performance among the top four IT companies and the management’s commentary indicates at the momentum to continue, notwithstanding the cross-currency headwinds. The overall demand environment looks promising with an improvement in the market share in the key markets and deals momentum. We have tweaked our earnings estimates on account of currency reset to Rs61 and Rs60.5 for FY2016E and FY2017E respectively. We have introduced our FY2017E estimates in this note and rolled over our target multiple to FY2017E and arrived at a price target of Rs2,050. We maintain our Buy rating on the stock.



ICICI Bank
Reco: Buy
PT: Rs424
CMP: Rs361




Margins continue to expand, asset quality deteriorates



Key points

ICICI Bank reported net profits of Rs2,889 crore (up 14.1% YoY) supported by net exchange rate gains of Rs192 crore from overseas operations. The operating performance remained healthy as net interest income grew by 13.1% YoY, while margins expanded by 4BPS QoQ to 3.46%.

Asset quality deteriorated as the bank reported fresh NPA additions of Rs2,279 crore and restructuring of Rs1,755 crore. The management expects its asset quality impairment to extend in Q4FY2015 as well (restructuring pipeline of Rs2,300 crore) though it expects to contain its credit cost to 1% (~90BPS guided earlier).

We believe healthy growth in the core interest income and pick-up in fee income would drive steady growth in profits (17% CAGR over FY2014-17). Also, a likely revival in the economy should ease asset quality challenges and we expect the NPAs pressure to be within the manageable limits (better than other large-sized banks). The bank is well capitalised (Tier I CAR of ~12% including 9MFY2015 profits) and monetisation of stake in insurance business will boost capital ratios. We maintain our Buy rating with an SOTP-based price target of Rs424. Key risk–Delayed recovery in the economy and defaults from large accounts could affect the asset quality and profitability.



Ashok Leyland
Reco: Buy
PT: Rs76
CMP: Rs66




Operationally in line, outlook positive; Buy maintained with a revised PT of Rs76



Key points

Ashok Leyland Ltd (ALL) continued to ride the momentum generated in the commercial vehicle (CV) industry and posted an impressive volume growth of 37.6% YoY in Q3FY2015. The growth in the revenues was higher at 72.1% on the back of multiple price increases taken and a richer product mix. Its operating profit at Rs238 crore (as against a loss of Rs97 crore in Q3FY2014) was in line with our estimates. However, with the profit projections higher than earlier anticipated, the tax rate for the quarter was significantly higher, thus capping the net profit at Rs32 crore as against our expectation of Rs46 crore.

The domestic CV industry is poised for a strong growth, driven by increasing economic activities and improving operator profitability given the reduction in diesel prices over the past couple of months. With a growth of over 50% in 9MFY2015, exports continue to do well for the company and the management expects export contribution to significantly increase over the next three years. While the defence currently contributes 5% to the topline of the company the government’s trust on indigenous defence production is expected to open new avenues for the company.

With a leaner cost structure, minimal capex going forward and de-leveraging of balance sheet, ALL is well poised to reap the benefits of a revival in the CV industry. The expiry of the concessional excise duty benefits is expected to boost profitability for ALL as it gains from the Pantnagar facility. We have raised our earnings estimates for FY2016 and FY2017 by 12% and 14% respectively, factoring in the higher realisations and improved margins. We continue to remain positive on the stock and reiterate our Buy recommendation with a revised price target of Rs76 (earlier Rs58), valuing the core business at 16x FY2017E earnings.



Bank of Baroda
Reco: Hold
PT: Rs212
CMP: Rs193




PT revised to Rs212, downgraded to Hold



Key points

Bank of Baroda (BoB) reported disappointing set of numbers for Q3FY2015 on both earnings (down 68% YoY to Rs334 crore) and asset quality fronts. The dip in earnings was due to a sharp rise in provisions and one-off tax outgo (overseas operations) of Rs410 crore. The net interest income growth was also sluggish (up 7.5% YoY).

The stressed loan formation increased sharply led by slippages of Rs3,042 crore (~Rs1,000 crore from restructured book) and fresh restructuring of ~Rs1,600 crore. The provision coverage dipped to 62.4% from 65.4% in Q2FY2015. The management has guided for similar kind of stress in Q4FY2015 as well.

BoB had traded at a premium to other PSBs due to lesser stress on the asset quality (compared with the other PSBs) and better capital position (Tier I CAR of 9.1%). However, post the Q3FY2015 results we have revised our estimates downward factoring in a higher tax rate for FY2015 and weakness in asset quality. We now value the bank at 0.9x FY2017 BV resulting in a revised price target of Rs212. We downgrade our rating from Buy to Hold on the stock.



Ratnamani Metals and Tubes
Reco: Buy
PT: Rs815
CMP: Rs703




Sustainable growth; reiterate Buy



Key points

Ratnamani Metals & Tubes delivered strong earnings for Q3FY2015 with a robust top-line growth of 39% YoY to Rs499.5 crore. The total revenue growth was driven by 79% revenue growth in carbon steel tubes and pipes segment (led by higher realisation up 18%, higher contribution from value added products and increase in volume up 53%, demand remains strong) and a 32% jump in the revenue of stainless steel tubes and pipes (up 46% YoY volume, robust demand scenario). Its operating margins improved by 103BPS YoY and stood at 19%. Adjusted earnings for the quarter improved by 46% YoY to Rs52.5 crore.

Order book for the quarter stood at Rs855 crore, 9% higher as compared with the same period in the last year. The company is likely to receive monthly orders in the range of Rs125-150 crore which will be sustainable in the years to come. It is receiving more orders in the carbon steel pipe segment as compared with the stainless steel.

The management is confident to maintain its growth rate and margins around 18-20% over the next couple of years. It is experiencing strong traction across the segments especially for carbon steel pipes. We have revised our earnings upward to factor in the high growth in the revenues attributed to a strong volume growth. We maintain our Buy rating on the stock with a price target of Rs815.
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Old 03-02-2015, 11:55 AM
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Fundamental Outlook Timken India (Timken) is the fourth largest organised bearings player in India with ~8% market share (in terms of revenues). It is known for tapered roller bearings wherein it commands a staggering ~45% market share. Segment wise, Timken derives 25% of its revenues from Railways, 25-30% from exports, 25% from industrial and aftermarket and balance from CVs, UVs and tractors. While the stock is currently trading at 82.6x FY14 P/E, it seems to reflect the growth momentum of H1FY15 wherein earnings grew 84.5% YoY aided by handsome topline growth of 32.3% YoY with ~600 bps expansion in margins to 16%. With an expected industrial revival and the auto segment showing signs of a recovery, Timken is well poised to capture the opportunity given its robust balance sheet with cash flow generation, strong parentage and scalability bandwidth.

Read more at: http://www.moneycontrol.com/news/rec...ce=ref_article
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Old 03-02-2015, 07:51 PM
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TRENT LTD

http://www.equitybulls.com/admin/new....asp?id=154181
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Old 04-02-2015, 11:23 AM
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Lupin Ltd has announced the following results for the quarter ended December 31, 2014:

The Un-Audited Standalone results for the Quarter ended December 31, 2014

The Company has posted a net profit of Rs. 5133.00 million for the quarter ended December 31, 2014 as compared to Rs. 5333.80 million for the quarter ended December 31, 2013. Total Income has decreased from Rs. 24305.60 million for the quarter ended December 31, 2013 to Rs. 24060.30 million for the quarter ended December 31, 2014.

The Consolidated Results are as follows:

The Unaudited Consolidated results for the Quarter ended December 31, 2014

The Group has posted a net profit after taxes and minority interest of Rs. 6014.50 million for the quarter ended December 31, 2014 as compared to Rs. 4761.30 million for the quarter ended December 31, 2013. Total Income has increased from Rs. 30544.10 million for the quarter ended December 31, 2013 to Rs. 32610.40 million for the quarter ended December 31, 2014.

1700 + might come EOY
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Old 04-02-2015, 04:16 PM
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bhai aisi ek jhakkaaas report Rpower pe chhap do
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Old 19-03-2015, 12:37 PM
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Mahindra CIE_Icicidirect.com_18-03-2015.pdf

Mar 18, 2015, 03.58 PM IST | Source: Moneycontrol.com Buy Mahindra CIE; target of Rs 260: ICICIDirect.com Brokerage house ICICIDirect.com is bullish on Mahindra CIE Automotive and has recommended buy rating on the stock with a target price of Rs 260 in its research report dated March 18, 2015. ICICIdirect.com More about the Brokerage... 0 0 Google +0 0 Comments (1) ICICIDirect.com’s rearch report on Buy Mahindra CIE Automotive “Mahindra CIE completed its merger process on December 10, 2014. The company has come out with the quarterly numbers of the merged entity (all segments included) for the first time. The results, therefore, are not comparable on a like-to-like basis. Its standalone business consists of Mahindra’s Forging India, casting & magnet business and composites & stamping division. At the consolidated level, it includes Mahindra Forging Europe, CIE forging business and Mahindra’s gears business.” “MCI is a strong tier-1.5 supplier to global OEMs, i.e. a supplier of critical components to OEMs. With global carmakers moving towards homologation with modular architecture, global platforms and standards, automotive suppliers need to meet the increasing intensiveness. We believe MCI’s greatest advantage is in its significant geographic spread that has the “there is little alternative” (TILA) factor associated with it. With a presence ranging across Europe, Latin America (LatAm), North America Free Trade Agreement (Nafta) region and Asia, the alliance produces a company with limited competition in terms of presence.” “Mahindra CIE Auto is a unique case of valuation considering the massive turnaround possibilities. We expect utilisation levels to improve leading to EBIT margins rising to 8% and RoCE expansion to ~15% in FY17E. We expect dividend payout of ~30%, in line with CIE’s philosophy of high dividend payouts (~30-50%). CFOs are also likely to balloon to ~| 700- 800 crore (FY17E). We value MCI at 10x FY17E EV/EBITDA multiple (~25% discount to Bharat Forge), considering its steady turnaround in operations. Our target price of | 260 implies an upside of ~29%. We continue to recommend BUY”, says ICICIdirect.com’s research report. For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management.



Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read more at: http://www.moneycontrol.com/news/rec...ce=ref_article



DO NOT TRADE THEM UNLESS U CAN NOT HOLD THEM MORE THAN A YEAR
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Last edited by nTP; 19-03-2015 at 02:13 PM.
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Old 24-04-2015, 09:38 PM
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Greetings from SBICAP Securities.

We hereby bring to you the 4QF15 result review on “Persistent Systems Ltd“provided by our Research Team for your perusal. Please CLICK HERE to view the detailed report.

Persistent Systems 4QF15 Result Review | TP – Rs670 (-7%) | Rating: HOLD (Upgrade)

Performance meets lowered expectations

Persistent Systems’ (PSL) quarterly performance came inline with management’s mid-March cut in expectations. For 4QF15, revenues grew 0.6% QoQ to US$80.0mn (SSLe of US$80.5mn) on the back of 1.8% QoQ rise and 4.1% QoQ decline in the Services and IP-led businesses, respectively. Services volumes rose 0.7% QoQ, while blended realization improved 1.1% QoQ. EBITDAM improved 10bps QoQ to 20.2%. Net profits rose 2.1% QoQ to Rs760mn (SSLe of Rs683mn) benefited by lower ETR (20.6% vs. 25.1% QoQ). We remain cognizant of growth challenges the company faces in the near term; however, considering sharp stock price correction (22% down in 3M) and medium term growth opportunities, we upgrade stock to HOLD with TP of Rs670 at 15x March’17e EPS.

Near term growth challenges continues: Services revenues growth was slower at 1.8% QoQ after two quarters of strong growth. Within PES, ISV reported a flattish performance with growth of 0.5% QoQ. Enterprise reported 5% QoQ growth. The company continues to follow a three-pronged sales strategy (account-led, IP-led and partnership-led) and would focus on few bigger enterprises rather than winning many small clients. The management expects weakness in ISV to continue as clients face their own challenges as they struggle with rapid changes in technology landscape. The company is seeing good traction in EDT (Enterprise Digital Transformation); however, at present, the deal sizes remain relatively smaller (US$250–500k). The near term growth performance would also be impacted by weakness in top client. Additionally, due to smaller size and contract based nature of business, volatility in revenue growth would continue.

IP-led revenues impacted by weakness in top client: IP-led revenues were impacted by delay in renewal of a service maintenance contract from top client. The management expects renewal to happen in a couple of quarters. The pipeline for end-of-life IP acquisition opportunities has doubled over last few quarters; however, closure of deals is unpredictable. The management expects IP-led revenues to track a ~US$14-15mn quarterly run-rate and uptick would come from acquisitions.

Maintain PBT margin target range of 18–20%: EBITDAM improved 10bps in the quarter. The management maintains PBT margin target range of 18–20%. The company would continue to invest in newer technologies and in S&M. It target to maintain S&M expenses at ~10% of revenues.

Conference call highlights: a) Outstanding hedges of US$113mn at an average rate of Rs65.61/US$, b) F16e capex expected at Rs1bn, c) targets net employee addition of ~1,000 in F16e including ~600 fresher recruits and d) DSOs improved to 64days vs. 65 days QoQ.

Valuation: The stock currently trades at 18.2x/16.1x F16e/F17e EPS. We have cut our US$ revenue and margins estimates on the back of its 4QF15 performance miss and weakness in PES. We remain cognizant of growth challenges the company faces in near term; however, considering sharp stock price correction (22% down in 3M) and medium term growth opportunities, we upgrade stock to HOLD with TP of Rs670 at 15x March’17e EPS.


Warm Regards,
SBICAP Securities Ltd.
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Old 25-04-2015, 12:19 PM
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yesbank 970-1000
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File Type: pdf Yes Bank 4QF15 result review 22-04-15.pdf (429.0 KB, 0 views)
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