* Downgrade to sell from outperform, raise target to `345 from `330
* Near-term headwinds include entry of Chinese players with ex-Japanese brands
* Rising foreign competition in AC biz, weak MEP market could see stock peak out
* Would look for cheaper entry point as expensive valuation leaves no room for execution slip-ups
* Downgrade after 24% rally over 3 months, as stock doesn't price in risk of rising competition
NOMURA ON VOLTAS
* Maintain neutral, target at `320
* Improvement in UCP sales, margins more than offsets weakness in other segments
* EMP revenue growth disappointing at 3% y-y highlighting challenging conditions
* Ordering momentum from Middle East for EPS biz revenues, margins adversely impacted
* Momentum slow on muted domestic envt coupled with currency depreciation in Mozambique
* Believe negative stock reaction was surprising despite strong results
* In electrical consumer durables space, prefer CG Consumer Electrical
CLSA ON TATA COMM
* Upgrade to buy from outperform, raise target to `570 from `523
* Rise in core EBITDA was led by increasing share of data revenue and rise in data margin
* Deleveraging efforts are on track, with sale of data centres and Neotel progressing well
* Deleveraging should more than offset impact of `10.5bn buyback of TTSL shares
* Forecast 19% core EBITDA CAGR, led by 25% EBITDA CAGR in data business over FY16-19
CITI ON IGL
* Maintain buy, raise target to `741 from `654
* Forecast consol EPS CAGR of 12% over FY16-19E based on corresponding 9% volume CAGR
* Recent policy initiatives in NCR driving volume growth revival
* Gurgaon presents a huge opportunity for IGL
* Ongoing pilot project for CNG on 2W, if successful, will be material volume growth driver
* Given healthy net cash B/S, strong FCF generation, believe there is scope for upside to payouts
CS ON BHEL
* Maintain Underperform, target `100
* Alive competition, stuck orders, market size and profitability cloud positive view
* New order pipeline appears slim as utilities go slow on new projects
* ~40%+ of projects in order book stuck due to environment clearances concern
* Change FY17-19E EPS by -31% to +2% for lower execution on weak book
* Retain Underperform despite 1x book valuation, given long streak of single digit RoEs
CITI ON UFO MOVIEZ
* MAINTAIN BUY, TARGET `590
* Results below expectation, while 9% YoY ad growth was largely in line
* PAT down on soft revenues, investments on Caravan / D-cinema advertising capabilities & other costs
* Ad revenues for Caravan business small, but sequential decline is a negative surprise
* Positive business mix overall has offset some of adverse margin impact
* In-cinema advertising opportunity in India is large & UFO's network makes it well placed
KOTAK ON WABCO INDIA
* Maintain BUY, target raised to `7200 from `6500
* Strong results with revenue growth led by installation of ABS in trucks
* Decline in production of Class 8 trucks in USA had some impact on revenues
* Growth outlook strong as significant scope of increase in content per vehicle in trucks
* Estimate company to deliver 24% EPS CAGR over FY2016-19E
GS ON FINANCIALS
* Upgrade Yes Bank to buy from neutral, raise target to `1484 from `970
* Upgrade HDFC Bank to buy from neutral, raise target to `1477 from `1175
* Downgrade IDFC to neutral from buy, cut target to `53 from `57
* Reiterate Sell on PNB, raise target to `86 from `73
* Reiterate Sell on BOB, raise target to `142 from `129
* India's banking sector is at infection point after deep asset quality cycle over last 7 years
* New NPLs likely peaked but provision coverage yet to catch up
* Believe SOEs may continue to report losses, implying min capital requirement of 70% of Mcap
* Believe pvt banks could triple market share gains in credit over FY16-21E
* See retail, working capital and SME lending as key drivers of systemic credit growth
* Expect pvt banks to retain pricing power, with significantly increased share of industry profit pool
JEFERRIES ON FMCG
* Nestle - Hold, Target raised to `7400 from `7020
* Godrej Consumer - Buy, Target `1850
* United Spirits - Underperform, Target `1800
* ITC - Buy, Target `300
* HUL - Hold, Target `850
* Marico - Underperform, Target `216
* Inherent cash generation, low capital intensity and a negative working capital makes compelling case
* MSCI India Consumer 12-month forward P/E at 34x, a historical peak, warranting caution
* Believe consumption in India is poised to grow, led by demographic dividend
* Incumbents enjoy high entry barriers, thanks to robust distribution network and brand equity
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