Monday, 5 September 2016

{LONGTERMINVESTORS} India Daily: Results - Apollo Hospitals, Sadbhav Engineering; Updates - Coal India, Maruti Suzuki, Ambuja Cements, Mindtree

 

 

 

Daily Alerts

Results

Apollo Hospitals: Weak show - focus on rationalization

l

Ind-AS impacts 1QFY17 significantly; operational weakness continues

l

Restructuring of business aimed to increase efficiency; Mumbai commissioning delayed

l

Mumbai performance critical, though delays continue - REDUCE

Sadbhav Engineering: Positive surprises driven by BOT arm

l

Construction: FY2017 to be about steady execution, revival in margin and declining debt

l

BOT: 1QFY17 throws positive surprises on regulatory front and on SIPL standalone business

l

Revise SEL's SoTP primarily on revision in SIPL's SoTP to Rs130

Company alerts

Coal India: Volumes continue to falter

l

Volumes decline 10% yoy in Aug 2016, further dragging down an already modest performance

l

Billion ton aspirations may be altered; inventories continue to remain elevated at power plants

l

Maintain REDUCE rating with a target price of Rs320/share

Maruti Suzuki: Assessing the profitability of Baleno and Brezza models

l

Baleno and Brezza models are probably more profitable than common perception

Ambuja Cements: A larger re-christened structure

l

ACEM concludes the acquisition of ACC; attributable capacity now stands at 45 mtpa

l

ACEM and ACC - poles apart on efficiency, unsure whether the gap will get bridged

l

Valuations remain rich and risk to earnings high; maintain SELL

Mindtree: Another unpleasant intra-quarter update

l

Project cancellations, slower ramp-ups and Bluefin to result in 2QFY17 revenue decline

l

Softer spending by a few large clients, expected ramp-downs contribute to deceleration in growth

l

Profitability is the key weak link in Mindtree story; cut FY2017-19E EPS by 2-3%

 

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