Re: {LONGTERMINVESTORS} Research Reports extracts & summaries - Thread

 

Special Reports

Initiating Coverage

Mahanagar Gas: Cash cow

l Initiate coverage on MGL with ADD rating and DCF-based TP of Rs600 l Industry overview: Policy initiatives, regulatory relief and competitive economics augur well l Key drivers: Moderate volume growth and sustainable unit margins, in a low gas price setting l Key risks: Competition, regulations and economics

Daily Alerts

Results

Bank of Baroda: Transition pangs

l Weak headline earnings as provisions remain high; operating profit growth of 21% yoy l Slippages remain high; SMA-2 portfolio declines ~15% qoq l Target to achieve 15%+ RoE in 3 years; few levers and challenges; retain REDUCE for now

Page Industries: Revenues ahead but EBITDA/PAT miss

l 1QFY17 - sharp gross margin decline mars a solid show on volume growth l Little to dislike except valuations; we retain SELL

Thermax: Sustained weakness

l 1QFY17 earnings sharply below estimates l Order inflow weak in 1QFY17; finalization of a large overseas order only in FY2018 l Revise estimates; downside risks to estimates persist

Gujarat Pipavav Port: Weak links to normalize

l Weakness in container and liquid volumes partly compensated by other cargo classes l Cost efficiencies lead to steady EBITDA margin despite large yoy contraction in revenues l FY2017: A lot to look forward to l Build in weakness in 1QFY17 results; retain positive stance

IRB Infrastructure: Much to cheer

l BOT - steady traffic growth for the portfolio l Construction - good pace of execution enthuses; recent L1 order to boost backlog l Equity commitments manageable for now; close to filing DRHP for the InvIT l 1QFY17 results: Operationally in-line results

Jyothy Laboratories: Creditable performance in a tough market context

l 1QFY17 print - robust performance overall with double-digit volume growth l All power brands (ex-Maxo) post healthy growth; Maxo impacted due to extended summers l Henkel 'call' renders fundamentals irrelevant. Retain Not Rated rating

Coffee Day Enterprises: ASPD growth continues to lag expectations

l 1QFY17 earnings print - operationally weak quarter; EBITDA/PAT below estimates l Board approves merger of CDOL with CDEL to consolidate CDGL holding

Dhanuka Agritech: Strong growth outlook

l Revenue growth steady, in line with industry demand in the quarter l Management sees strong pickup in growth starting 2QFY17, maintains guidance l Valuations: Keep estimates and TP unchanged; maintain BUY

Results, Change in Reco

Jagran Prakashan: Upside limited

l 1QFY17 - steady quarter l Print ad growth to decelerate in FY2018 l Short term positives priced in; we downgrade to REDUCE given limited upside

JK Lakshmi Cement: Stay North

l Sequential price increase of Rs232/ton helps improve profitability to Rs557/ton (+154/ton qoq) l Prices in North continue to trend firm, cost-side pressures will contain benefit l Downgrade to ADD (from BUY) with revised target price of Rs480/share (Rs410/share earlier)

Change in Reco

Coal India: A drab year

l Sluggish volume growth, impending wage revision may keep earnings growth in check l Auctions of linkages see lukewarm response with negligible premium, and contained off-take l Large capex plans, non-core diversification to further weigh on cash flows l Lower rating to REDUCE, will revisit once clarity on wage revision emerges

Company alerts

Grasim Industries: All under one roof

l Restructuring of group business, ABNL to be merged with Grasim Industries l Steady performance from fiber and chemicals business, realizations on the upswing

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