Monday, 31 October 2016

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

 DB ON BAJAJ AUTO: ET NOW

MAINTAIN HOLD, TARGET `2500
Revenue/ EBITDA 3%/6% below forecasts, PAT 2% higher due to higher other income
Overall inline results; management indicated lukewarm festive demand 
Domestic business market-share & mix improving, exports remain under pressure

MS ON COLGATE: ET NOW
MAINTAIN UNDERWEIGHT, TARGET `830
2QF17 was a steady quarter for Co. in a weak demand environment
Domestic volume growth for the quarter was 4% below estimate of 5%
Key positive surprise for quarter was gross margin expansion of ~90bps YoY
Shifting preference towards 'natural' products may crimp valuation multiples on stock

CITI ON NTPC: ET NOW
MAINTAIN BUY, TARGET `174 
Delivered another steady quarter, PAT came in 6% ahead of estimate 
Added 575MW of capacity in 1HFY17 including 250MW of solar & acquired 325MW 
Solar PLF 2Q at ~14%, mgmt. confident of increasing to 18-19% for FY17E; hydro PLF was ~93%

CITI ON UPL: ET NOW
MAINTAIN BUY, TARGET `860
Another strong showing with strong, above industry volume growth & margins
Developed markets US & Europe weak as expected, offset by strong growth in India & LatAm
23% volume growth, one of strongest quarters & also well ahead of most peers
Seeds business grew 23% YoY in 2Q after a 10% YoY decline in 1Q
Demonstrates ability to deliver above industry growth & improve margins despite tough times

MS ON BHARAT FINANCIALS: ET NOW
MAINTAIN OVERWEIGHT, TARGET `1125
Good Numbers with Better Risk Metrics, PAT 3% below MS estimates 
NII below estimates, operating costs were higher, partially offset by lower provisions
Operating efficiency was good & Asset quality was stable
Non-AP AUM growth strong at 66% YoY, 7% QoQ Disbursements growth strong at 51% YoY

MACQUARIE ON EICHER MOTORS: ET NOW
MAINTAIN OUTPERFORM TARGET RAISED FROM `25,000 TO `28,500
Strong performance, with Royal Enfield EBITDA growth 3.0% ahead of estimates
VECV saw mixed performance, Co. gained significant market share, operating margin declined
Order intake for RE continues to be ahead of supplies despite ~31% growth in production
RE has maintained production guidance at 675k units for FY17E

MS ON GRASIM: ET NOW
MAINTAIN OVERWIEGHT, TARGET `1196
Good quarter with business momentum remaining strong 
Key surprise was higher-than-expected volumes in chemicals businesses
PAT 11% ahead of estimate, helped by higher-than-expected other income
Margin below estimate of 22.3% from lower-than-expected margins in both VSF & chemical business
Co. to benefit from ongoing expansion in chemical business on volume side
Operating at 100% utilization on VSF side, looking grow capacity through debottlenecking

IDFC ON MARICO: ET NOW
MAINTAN NEUTRAL, TARGET `275
Predictive pricing model backfires, volumes dropping sharply in Parachute 
Expect franchise to stabilize in the quarters to come
Earnings growth is likely to slow in 2HFY17 from the 17% levels of 1HFY17.
Valuations of 37x FY18E implies premium to peers like GCPL & Dabur, giving downside risks

IDFC ON NESTLE: ET NOW
MAINTAIN UNDERPERFORM, TARGET `6150
Results ahead of estimates, Maggi rebound & new launch pipeline drives revenues
Domestic up 38% on low base which had negligible Maggi sales on account of ban
Reduce CY16E and CY17E earnings by 6%/2% factoring lower revenue growth for core business

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