CS ON ICICI BANK: ET NOW
* maintain outperform, target at `328
* Asset quality trends not improved with NPLs running at elevated levels even outside watchlist
* 18% growth in savings deposits was the key positive
* Residual watchlist still likely to be >3% of loans keeping NPL addition & credit costs high in 2HFY17 & FY18
* As legacy stress is provided, with loan mix shift to retail, stock can trade at better multiples
CLSA ON ICICI BANK: ET NOW
* maintain buy, target at `320
* While slippages may stay high in 2H, expect corporate deleveraging to help reduce stress-list by 30%
* With healthy 18% growth in Casa deposits, believe ICICI can gain share in loans
* Positives: strong deposit franchise, scope to reduce stress-list and valuation discount to peers
CS ON GODREJ CONSUMER: ET NOW
* Maintain outperform, raise target to `1800 from `1760
* India biz volume growth of 9% is at upper end of range that peers delivered in 2Q
* Intl biz impacted adversely by weak insecticides growth in Indonesia
* Expect Indonesia to recover in 2H, while Africa will continue to see currency issues
* Remain very positive on GCPL's innovation led growth strategy across markets
CLSA ON GODREJ CONSUMER: ET NOW
* maintain outperform, raise target to `1700 from `1650
* Domestic underlying volume growth accelerated to 9% YoY led by strong performance in HI
* Intl constant-currency revenues rose 25% YoY, bolstered by acquisition of SON biz
* Like management's focus on product innovation and growth
MS ON SHRIRAM TRANSPORT: ET NOW
* Upgrade to equal weight from underweight, target at `1050
* Revenue progression in 1HFY17 was weak; 2HFY17 likely to be weaker
* Weak 2HFY17 seems priced in by recent stock underperformance
* Asset quality showing signs of stabilization; valuation is around long-term mean
CS ON TATA MOTORS: ET NOW
* upgrade to outperform from neutral, riase target tp `720 from `510
* Believe GBP depreciation will drive a multi-year outperformance
* 15% post-Brexit depreciation can lead to >50% rise in EBITDA per car
* JLR's other levers: product mix, commodity can provide 300 bp benefit
* believe JLR will report 20%+ margins in Dec qtr, which will drive EPS upgrades
CS ON MARUTI: ET NOW
* downgrade to neutral from outperform, target at `6000
* After maintaining it as top pick since Apr13, downgrade co as most positives seem priced in
* At ~24x 1-yr fwd. PE, it is the most expensive auto stock globally
* With start of the Gujarat plant, there could be a ~100 bp impact on margins
* Post Ignis, the pipeline of new launches looks a bit dry
* Suzuki is a better way to play Maruti story; Within Indian Autos suggest shift to TAMO
CS ON HINDALCO: ET NOW
* maintain outperform, raise target to `197 from `177
* Novelis 2Q17: In line; FCF guidance revised up; we see pricing related tailwinds
* Potentially higher LME Al prices enable Novelis to benefit from recycling investments
* Higher US physical premiums (up $25/t vs Sep-lows) could reduce metal price lag loss going forward
* Raise Novelis' EBITDA and lower interest costs, resulting in 6-7% rise in FY17/18 EPS
CLSA ON SHREE CEMENT: ET NOW
* maintain sell, raise target to `16000 from `15500
* Focus on capacity expansion has helped Shree to grow ahead of the market
* Continuous increase in cement prices helped Shree to report 17-quarter high unit Ebitda of ~`1,300/t
* Cut FY17-18 earnings by 10-14% given Shree's accelerated depreciation policy
* While Shree is arguably best cement play in India, it is reflected in premium valuations
CLSA ON ECLERX: ET NOW
* maintain sell, target at `1500
* missed revenue expectations sharply for the third quarter in a row
* Headwinds from top clients in FS further complicated by corp action across Digital and cable clients
* Soft demand, RPA and insourcing were the key persistent headwinds
* Flat FY17 growth, investments mean high margins unlikely to sustain outside of FX gains
JPM ON CONGNIZANT: ET NOW
* Read-through for India IT: Demand may have stopped deteriorating, may be stabilizing* Holding of lower end of $ guidance for CY17 despite forex headwind to 4Q revenue base was a relief
* Believe impact on CY16E/FY17E revenue growth of India IT accrues from structural and cyclical headwinds
* key point is whether India IT valuations factor in these continuing headwinds
* believe valuations in India Tech are reasonable enough to offer upside in 2017
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