Thursday, 3 March 2016

{LONGTERMINVESTORS} Express Idea – Yes Bank, Company Report - Salzer Electronics, Event Note – Tata Comm., Chart Masala - Technical Insights

 




IIFL Weekly Wrap
March 02, 2016

Yes Bank Ltd - BUY
CMP: ₹718, 3-m Target: ₹825, Upside: 14.9%

  • Loan growth to remain strong
  • Deposit franchise improving; NIM outlook encouraging
  • Relative comfort on asset quality
  • Valuation attractive given stronger fundamentals

Click here for the detailed report on the same.

Salzer Electronics Ltd: Switching on Growth - BUY
CMP: ₹181, 1-yr Target: ₹253, Upside: 40%

Salzer Electronics Ltd has transformed itself from a rotary switch manufacturer to a leading player that offers total and customized electrical solutions. The company has added a range of products over the past three decades and is a preferred supplier to OEMs such as GE and Schneider. It is the largest supplier of rotary and load break switches to Indian Railways. The company provides superior customized products backed by tie-ups with global electrical majors, in-house manufacturing capabilities, and strong R&D. We expect the company to witness 21.9% revenue CAGR over FY15-18, driven by a strong product portfolio, introduction of new products, and revival in demand for electrical products. The company is focused on expanding its high-margin industrial switch gear segment. This coupled with lower interest expenses will enable the company to clock 29.5% earnings CAGR over the same period. Buoyed by a healthy balance sheet following capital infusion and strong earnings growth, we initiate coverage on the company with a BUY rating for a target price of ₹253.

Click here for the detailed report on the same.

Tata Communications: 'Neotel deal termination setback to sentiment' - BUY
CMP: ₹333, Target: ₹480, Upside 44.1%

Neotel deal termination: a sentiment hit but we stay the course with BUY
In a disappointing end to the Neotel divestment, Tata Comm has announced that agreement between Vodacom and Neotel which had earlier concluded a modified transaction has lapsed due to "regulatory complexities in concluding the transaction as well as certain conditions not being fulfilled".

Click here for the detailed report on the same.

Chart Masala - Technical Insights

The market ​remains precariously poised even as the fundamentals have been gradually improving. To take advantage of the swings as they come, "ChartMasala" help in determining the entry and exit points of not just the indices, but also individual stocks.

Our ​fortnightly ​offering will give you brief self-explanatory charts and our comments to help you make your trading and investment decisions.

Click here for the detailed report on the same.

Warm Regards,

Amar Ambani
Head of Research, IIFL

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