{LONGTERMINVESTORS} India Daily: Results; Results, Change in Reco - Asian Paints

 

 

 

Daily Alerts

Results

HDFC Bank: Stable trends

l Stable performance aided by cost control and low credit cost l Retail loan growth momentum continues l Retain ADD with TP of Rs1,400 (from Rs1,350)

Axis Bank: The pain increases

l Weak overall performance; positive trends on retail front l Slippages from watchlist rises sharply; slippage also seen in foreign currency exposure l Operating profit growth to be under pressure; valuation discomfort leads to our negative view

Bharti Airtel: 2QFY17 ahead of estimates; takes Board approval for BHIN stake sale

l 2QFY17 earnings print - fine on most counts l Board approval for monetization of stake in Bharti Infratel

Bharti Infratel: Remains a good compounding bet

l Key changes to our earnings model l Takeaways from the earnings call l Target price stands revised to Rs410/share on rollover to Sep 2018E, retain ADD

Adani Port and SEZ: Stellar quarter

l 2QFY17: Share gains in container, SEIS income and sub-5% interest drive PAT outperformance l On target to meet the higher end of volume growth guidance and of reduction in related L&A l Strategy: Long-term aim set high and wide

Dr Reddy's Laboratories: Marginal boost, though thesis intact

l Good on revenues, poor on margins l Expect US business to remain under pressure in 2HFY17 l Hopes high on FDA re-inspection, but the absence of a pipeline is more worrying - SELL

Zee Entertainment Enterprises: Steady ship

l 2QFY17 - steady operating performance l Brace for some softness in advertising and subscription against steep expectations l Zee's outperformance versus industry and comfort on profitability stays

IDEA: Tough prognosis, tougher to value; we remain believers

l Key changes to our earnings model l Read-through from Bharti's results l Overall view: brace for challenges ahead

Shriram Transport: In-line results, weak outlook

l Weak outlook l Lower estimates and price target; management changes may weigh in

Mahindra & Mahindra Financial: Another weak quarter

l Strong growth was the only positive l NPLs continue to trend up l Retain REDUCE with TP of Rs315

Federal Bank: Another good quarter

l Earnings growth led by healthy growth in operating profits l Many positive takeaways l Maintain BUY rating; good performance raises expectations of better times ahead

Adani Power: Still struggling

l Tiroda generation ramps up, though losses remain l Imported coal prices have risen 46% since June 2016, will increase cash cost of generation l Maintain SELL with target price of Rs26/share

Jyothy Laboratories: Mixed performance; revenue growth decelerates

l 2QFY17 print - revenue growth disappoints; EBITDA/PAT growth healthy l Ujala, Maxo and Margo disappoint; dishwash and Henko continue to deliver l Henkel 'call' renders fundamentals irrelevant. Retain Not Rated rating

Hexaware Technologies: Focus areas drive impressive outperformance

l Strong quarter; revenue growth of 4.8% (c/c) led by top 5 accounts l Growth led by strategic focus areas l Announces a small buyback. Maintain positive view

Rallis India: Improving growth outlook

l Ag-chem business returns to strong growth path l Improved growth outlook in domestic and export markets l Valuation: Reduce estimates slightly but increase TP to Rs250 (Rs240 earlier), maintain ADD

Results, Change in Reco

Asian Paints: Healthy quarter, not much to read either way; downgrade to SELL

l 2QFY17 earnings print - decent quarter albeit a tad below estimates l Estimates broadly unchanged; continue to find valuations rich - downgrade to SELL

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