Updates

added date update company name note
Monday, July 16, 2018 - 08:45Top PicksAurobindo Pharma Ltd

CMP: ₹603     TP: ₹780      Upside: 28.7%

We Expect Aurobindo To Report Net Revenue CAGR Of ~13% & Net Profit To Grow At ~5% CAGR During FY2018-20E, Due To Increased R&D Expenditure. However, Valuations Of The Company Are Cheap V/S Its Peers And Own Fair Multiples Of 17-18x. We Recommend BUY Rating.

Monday, July 16, 2018 - 08:45Top PicksSafari Industries India Ltd

CMP: ₹693     TP:₹800      Upside: 15.4%

We are increasing the target price of Safari Industries to 800 at 40x FY2020 earnings in view of continued demand momentum.  

Friday, July 6, 2018 - 09:00Top PicksRBL Bank Ltd

CMP: ₹565             TP: ₹670          Upside: 18.5%

We believe advance to grow at a healthy CAGR of 35% over FY18-20E. Below peers level ROA (1.2% FY18) to expand led by margin expansion and lower credit cost.

Friday, July 6, 2018 - 08:45Top PicksYes Bank Ltd

CMP: ₹348        TP: ₹418       Upside: 20.1%

Well planned strategy to grow small business loans and cross-selling would propel fees income. We expect YES to grow its advance much higher than industry and improvement in asset quality to support profitability.

Saturday, June 30, 2018 - 13:15FundamentalAurobindo Pharma Ltd

CMP: 601                                                            Target Price: 780                                                      Upside: 29%

We expect Aurobindo to report net revenue CAGR of ~13% & net profit to grow at ~5% CAGR during FY2018-20E, due to increased R&D expenditure. However, valuations of the company are cheap V/s its peers and own fair multiples of 17-18x. We recommend BUY rating.

Saturday, June 30, 2018 - 12:45Top PicksJindal Steel & Power Ltd

CMP: 222                                                            Target Price: 350                                                      Upside: 57%

We expect JSPL’s top line to grow at 27% CAGR over FY19-FY20 on the back of strong steel demand and capacity addition (mostly from real estate, automotive & infra sector). On the bottom line front, we expect JSPL to turn in to profit by FY19 on back of strong operating margin improvement (due to higher utilization in steel and power segment and simultaneous reduction in debt level). Along with that, The management intend to increase the shareholders value by either monetizing some the asset or building it to improve the profitability of JSPL. We recommend to BUY the stock with a target price of ₹350 based on peer comparison method, we value the Steel segment on EV/Tonne basis and Power business as per EW/MW basis.

Saturday, June 30, 2018 - 11:45Top PicksBata India Ltd

CMP: 862                                                            Target Price: 948                                                      Upside: 10%

We have revised our Target Price from `896 to `948 on an anticipation of strong sales growth and better operating margin (increase in volume of premium products i.e. Hush Puppies, Naturalizer, Power, etc).

Friday, June 29, 2018 - 10:30Top PicksGMM Pfaudler Ltd

GMM Pfaudler Ltd. - CMP 775 Target Price - 1020

GMM is the Indian market leader in glass-lined steel equipment used in corrosive chemical processes of agrochemicals, specialty chemical and pharma sector. GMM has a strong and sticky clientele comprising global giants in chemicals and pharma space. Indian agrochemicals and specialty chemicals players are seeing a buoyant demand due to slowdown in Chinese competition. Most of these companies are expanding or upgrading their manufacturing facilities which will augur well for GMM.  Strong order inflow from the user industries is likely to provide 20%+ growth outlook for next couple of years. Hence, we recommend a Buy on the stock with a target price of ₹1020 ( 24x FY2020 earnings).

Monday, June 25, 2018 - 16:00Top PicksNavkar Corporation Ltd

Exit from Navkar Corporation (NCL): CMP 133

In FY18, the company has reported subdued performance, both on top-line & bottom-line growth mainly to due increase in volume of direct port delivery (DPD), which is expected to increase further increase. Thus, we are advising client to exit from the stock.

Wednesday, June 20, 2018 - 10:00Top PicksShriram Transport Finance Company Ltd

Shriram Transport Finance Company Ltd (BUY) - CMP: ₹1,466, Target Price: ₹1,764

SHTF is in the sweet spot with benefits from stronger CV volumes, NIMs unaffected by rising bond yields on the back of stronger pricing power and an enhancing ROE by 750bps over FY18-20E, supported by decline in credit cost.

Monday, June 18, 2018 - 13:30Top PicksL T Foods Ltd

 

Going forward, we are expecting LT Foods would get pressure on operating margin due to pricing constraint (higher production of rice). Further, newly opened European operation (Rotterdam) is expect to report operating losses which would create further pressure on profitability. Thus we are recommending exit on stocks at Rs.66

Friday, June 15, 2018 - 10:45Top PicksBata India Ltd

                     Bata India (BUY) – CMP: ₹779, Target Price: 896

BIL Is The Largest Footwear Retailer In India, Offering Footwear, Accessories And Bags Across Brands. We Expect BIL To Report Net PAT CAGR Of ~16% To ~`3115cr Over FY2018-20E Mainly Due To New Product Launches, Higher Number Of Stores Addition And Focus On Women’s High Growth Segment And Margin Improvement 

Thursday, June 14, 2018 - 08:30Top PicksAmber Enterprises India Ltd

Amber Enterprises (BUY)–  CMP: 1026, Target price: 1230

Amber Enterprises (Amber) is the market leader in the room air conditioner (RAC) outsourced manufacturing space in India with a market share of ~55%. It has emerged as a one-stop solutions provider for the major brands in the RAC industry and currently serves eight out of the ten top RAC brands in India. Amber has posted a CAGR of 19%/26% in revenue/ net profit over FY13-18. It would continue to post robust growth of 20%+ over the next few years owing to its higher capacity utilization, buoyant demand in RACs/ consumer electronics and reduction in leverage. Hence we recommend a Buy on the stock.

Monday, June 11, 2018 - 08:45Top PicksMahindra & Mahindra Ltd

We expect Mahindra & Mahindra (M&M) to report net revenue CAGR of ~15% to ~₹62,218cr over FY2018-20E mainly due to healthy growth in automobile segment like Utility Vehicles (on the back of new launches and facelift of some models) and strong growth in Tractors segment driven by strong brand recall and improvement in rural sentiment. Further on the bottom-line front, we expect CAGR of ~15% to ₹4771cr over the same period on the back of margin improvement. Thus, we recommend an Accumulate rating on the stock with target price of ₹1050.

Thursday, May 31, 2018 - 08:45Top PicksAlkem Laboratories Ltd

In 4QFY18, the company has reported de-growth of 51% yoy to `67cr on bottom-line front which is below our expectation. Hence we are advising to client to book the profit in Alkem Laboratories.

Thursday, May 31, 2018 - 08:45Top PicksHSIL Ltd

During the 4QFY18, the company reported growth of ~4% yoy to `661cr on top-line front which is below our expectation and on bottom-line front reported de-growth of ~22% yoy to `31cr on back of lower revenue and poor operating performance (mainly impacted due to increase in power and fuel costs). Considering below expectation in 4QFY18 results and increase in gas prices, which will further impact HSIL. Hence we are downgrading stock from buy to neutral rating.

Tuesday, May 29, 2018 - 08:45FundamentalGMM Pfaudler Ltd

GMM Pfaudler has given 31% returns since our coverage initiated on the stock, last month. In view of continued traction in its user industries like Pharma and Agrochemical, we are increasing our target price to ₹1020  (  revised target multiple of 24x on its FY2020 earnings). In view of limited upside, we maintain accumulate rating on the stock. 

Thursday, May 24, 2018 - 09:45Top PicksKEI Industries Ltd

We expect KEI to report net revenue CAGR of ~16% to ~`4,646cr over FY2018-19E mainly due to (a) higher order book execution in EPC segment; (b) growth in EHV business; (c) higher B2C sales; and (d) higher exports. On the bottom-line front, we expect a CAGR of ~19% to `207cr over the same period on the back strong revenue and lower interest costs. At the CMP of `481, the stock trades at 18.0x its FY2020E EPS of `26.8. Thus, we maintain our Buy rating with the revised Target Price of `589.

Thursday, May 17, 2018 - 08:45Top PicksT.V. Today Network Ltd

The stock at CMP of ₹​460 has given a return of 55%. Considering the recent past move in share price and valuation, we recommend to Book Profit at CMP. 

 

Thursday, May 17, 2018 - 08:30Top PicksCentury Plyboards India Ltd

We are downgrading Century Plyboards at CMP of ₹​280 from Buy to Neutral as company posted weak 4QFY18 result and rupees has also depreciated by 10% from January 2018 as company imports 50% of raw material.

Tuesday, May 15, 2018 - 10:30Top PicksParag Milk Foods Ltd

We have slightly upgraded our earnings estimates in view of new products pipeline, better off take in whey protein and the revised margin guidance from the management. We now expect PARAG to report a CAGR of ~18%/37% in revenue/ earnings over FY18-20E. The stock has given 35% return since our initiation in April. The stock is currently trading at 17.5x its FY2020 earnings, which still looks attractive looking at its evolving FMCG story. Hence we
recommend BUY with a target price of ₹410 (21x FY2020E EPS).

Monday, May 14, 2018 - 16:30FundamentalGMM Pfaudler Ltd

GMM Pfaudler has given 16% returns since our coverage initiated on the stock, last month. In view of continued traction in its user industries like Pharma and Agrochemical, we are increasing our target price to  ₹900 from  ₹861 (Target multiple of 21x on its FY2020 earnings).

Wednesday, May 9, 2018 - 16:15FundamentalPrism Cement Ltd

Prism Johnson Ltd (PJL) is an Integrated Building Materials company and has a wide range of products from cement, ready-mixed concrete (RMC), tiles, bath products to kitchens (TBK). TBK contribute 43% of the revenue. Lately, jump in Natural gas price has impacted EBITDA margin of other listed ceramics company. TBK segment is reporting loss and jump in Natural gas price would impact margin and PJL revival process. Hence considering this we discontinue our coverage in PJL

Monday, April 16, 2018 - 16:15Top PicksSafari Industries India Ltd

We are upgrading target price of Safari Industries to  ₹720 from  ₹650 as we are upgrading target multiple from 36x to 40x in view of buoyancy. 

Monday, February 19, 2018 - 16:15Top PicksAsian Granito India Ltd

We have stopped covering the Asain Granito India Ltd. stock from February 19, 2018. 

Monday, March 12, 2018 - 16:15Top PicksKarur Vysya Bank Ltd

We have stopped covering the Karur Vysya stock from March 12, 2018.

Friday, February 9, 2018 - 16:15Top PicksRuchira Papers Ltd

We have stopped covering the Ruchira Paper stock from February 09, 2018.