* Maintain Outperform, Target `1825
* Reasonable Q1 performance as operating leverage drives PAT
* Working capital, inflows, and margins performance strong in Q1
* Key Ind-As changes; no permanent impairment in profitability:
* Expected credit loss is non-cash charge and would stabilise with Wcap
* Working cap interest and bad debt provisions already carry it
CITI ON L&T
* Maintain Buy, Target `1773
* Estimate comparisons are meaningless due to the accounting change
* Results ahead if we add back expected credit loss provision, shipbuilding inventory writedown
* FY16 standalone & consolidated EPS could be reset 7% & 14% down
* Consolidated YoY comparisons suggest solid business momentum
* Weakness due to this change in accounting is an opportynity to buy
MS ON L&T
* Raise target to `1806 from `1596, Maintain Overweight
* Adjusted for the INDAS impact results were reasonable
* Margins and stability in working capital make up for revenues and orders
* Lower revenue forecasts down 1-3% and F17-18 EPS down 5-7%
* Given the increase in market multiple, target price goes up by 13%
JEFFERIES ON L&T
* Maintain Buy, Target `1750
* Restated 1QFY16 revenues are in-line with the earlier one while EBITDA, PAT lower
* L&T's YoY EBITDA and PAT growth are very strong in 1Q on restated
* Absolute FY16 EBITDA and PAT could be lower by 16-21% if extrapolated
EDELWEISS ON L&T
* Cur target to `1650 from `1750, Maintain Buy
* Ind-AS required much higher-than expected provisioning
* Business outlook indicates a slow and steady improvement
* Trim FY17/18E EPS ~20% each building in the Ind-AS impact
* Interim results appear good on what probably may be a new goal post
IDFC ON L&T
* Downgrade to Neutral from Outperform, Target 1646
* Earnings were impacted by inventory write-off in shipbuilding business
* Earnings impacted due to loss provisions in the hydrocarbons business
* Downgrade of 9.4%/7.7% in FY17E/FY18E earnings due to Ind AS
KOTAK ON L&T
* Maintain Reduce, Target `1500
* Weak Q1 led by Ind AS changes and expected credit loss
* Company has to be book an expected credit loss provision as per Ind AS
You received this message because you are subscribed to the Google Groups "LONGTERMINVESTORSRESEARCH" group.
To unsubscribe from this group and stop receiving emails from it, send an email to longterminvestorsresearch+unsubscribe@googlegroups.com.
Visit this group at https://groups.google.com/group/longterminvestorsresearch.
For more options, visit https://groups.google.com/d/optout.
No comments:
Post a Comment