HDFC BANK LTD - SEPTEMBER QUARTER FY17

HDFC BANK - SEPTEMBER QUARTER FY17 Banking Industry bell-weather, HDFC Bank continued with its growth momentum reporting double digit growth of 20% for both Net Interest Income & PAT. Net Interest Income, difference between interest earned and expended was at Rs. 79936 Mn in the current quarter against Rs. 66809 Mn same period previous year. Net Profit too zoomed 20% YOY at Rs. 34553 Mn in the current September quarter along with strong quarterly growth of 7%. Net Interest Margin indicating core profitability of bank’s operations was well maintained at 4.20%. Gross NPAs as a percentage of Gross Advances edged up 11 basis points YOY at 1.02%, Net NPAs as a percentage of Net advances also rose 5 basis points at 0.30% in the current September quarter. Provisions & contingencies was another star performer declining 13% QOQ and rising 10% on yearly basis in Q2 FY17. One basis point is 0.01%. Double digit growth is visible in all business segments, the highest in other banking business at 19%, followed by both treasury and wholesale at 18%. Retail segment contributes 52% of total revenue and reported 12% growth at Rs. 165131 Mn in the current quarter. CASA ratio stood at 40% improving 10 basis points QOQ. CASA deposits increased from Rs. 2013330 Mn in Q2 FY16 to Rs 2391040 Mn in current September quarter, jump of 19% YOY. Other income or non interest revenue accounting 15% of the total income of the bank rose 14% YOY and stood at Rs. 29010 Mn in current Q2 FY17. Loan book moved at a higher rate of 18% than deposits growing a tad lower at 17% YOY. Quarterly growth was also better for advances in the current September quarter at 5% whereas deposits rose sequentially at 3%. Cost income ratio of bank stood at 44.70% in the current September FY17 against 45.40% corresponding quarter previous year. With uncertainty and volatility being the hallmark of financial markets, Indian financial sector with HDFC bank is still one of the best long term bets.  The second largest private sector bank with market capitalization of Rs. 3012649.49 Mn has a CAR of 15.40% (Tier I-13.30%) and commands credibility due to growing profitability and stable asset quality in today’s volatile scenario. The bank is poised for higher growth as one of the major players in Indian banking industry. Thus we recommend BUY for the stock for medium and long term investment with a target price of Rs. 1280. Disclaimer                                                                               The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment. The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report. The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected. The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments. We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever. The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice. This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk. The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

HINDALCO INDUSTRIES LTD RESEARCH REPORT - SEPTEMBER QUARTER FY17

HINDALCO INDUSTRIES LTD - SEPTEMBER QUARTER FY17 HINDALCO Industries Ltd reported stellar YOY performance with PAT & EBDITA galloping at 256% & 39% respectively in the current September quarter on the back of benign input costs & higher volumes leading to high operational performance and profitability for the company.  Net Profit or PAT for the September quarter stood at Rs.4397 Mn compared to Rs. 1235 Mn same period previous year. EBDITA was reported at Rs. 14928 Mn in Q2 FY17 against Rs. 10743 Mn corresponding quarter previous year. Revenue or Income from operations was almost stagnant YOY but jumped in double digits sequentially by 17%. Revenue was reported at Rs. 95619 Mn compared to Rs. 81593 Mn in the previous June quarter. Profit Before tax at Rs. 6318 Mn jumped 4 times on yearly basis and grew 53% sequentially as exceptional gain of Rs. 849 Mn was reported in the current September quarter. Other Income declined 27% yearly whereas on sequential basis there was a jump of 49%. Other Income was reported at Rs. 3364 Mn in the current Q2 FY17. Higher volumes, rationalized cost structure due to soft input costs YOY, enhanced coal security at a time when international coal prices are roaring high, and captive reserves led to both EBDITA & Net Profit Margins improving phenomenally by 437 bp & 331 bp respectively in the  current September quarter. Hindalco Industries Ltd receives 52% of its revenue from Aluminium segment which grew 10% YOY. Copper segment contributing 48% of the revenues exhibited de-growth of 9%. The company is also focused on deleveraging itself and interest costs have been declining over the previous two quarters. Hindalco with market cap of Rs. 329597.74 Mn is the industry leader in the Indian Aluminium industry and is poised for higher growth with strong demand from power, transportation, housing & packaging sectors. In addition to that industries such as solar power, aerospace, defence, railways, metro & smart city projects offer long term growth opportunities to Indian Aluminium industry. We recommend BUY for the stock for medium & long term investment with PE multiple of 22.34 x FY17E & 20.86 x FY18E with a target price of Rs. 220. Disclaimer                                                                               The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment. The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report. The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected. The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments. We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever. The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice. This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk. The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

PETRONET LNG LTD RESEARCH REPORT - SEPTEMBER QUARTER FY17

EXIDE INDUSTRIES LTD - SEPTEMBER QUARTER FY17 RESEARCH REPORT

EXIDE INDUSTRIES LTD - SEPTEMBER QUARTER FY17

Exide Industries Ltd reported double digit growth in September quarter FY17. Revenue or Income From Operations, PAT and EBDITA all rose in double digits at 11%, 17% and 18% respectively.  Revenue rose 11% YOY from Rs. 19654 Mn to Rs. 21746 Mn in the current September quarter.  Sequentially growth rate was negative at 4% for Revenue compared to 28% quarterly growth in Q1 FY17. Net Profit grew at a higher rate of 17% yearly at Rs. 1813 Mn against Rs. 1551 Mn in the same period previous year. EBDITA stood at Rs. 3118 Mn compared to Rs. 2637 Mn in the same period previous year growing by 18% YOY whereas QOQ negative growth was 5% in the current September quarter. Expenditure jumped 11% YOY from Rs. 17478 Mn to Rs. 19324 Mn in the current September quarter. On quarterly basis there was decline of 3%. EBDITA margin improved 92 basis points YOY as Revenue growth outpaced rise in operating expenditure. Interest or Finance costs declined 66% QOQ at Rs. 5.80 Mn in the current September quarter vis-à-vis Rs. 17.10 Mn in previous June quarter. Tax expenditure constituting 4% of total revenue jumped 12% YOY in Q2 FY17. Taxation expense was reported at Rs. 792 Mn compared to Rs. 708 Mn in the same period previous year. Net Profit Margin was 8.34% against 7.89% same period previous year, improving by 45 basis points YOY. Other Income on the other hand was on a rising spree with a YOY jump of 125% and was reported at Rs. 190 Mn compared to Rs. 84 Mn in current Q2 FY16. 

We recommend BUY for the stock for medium & long term investment with PE multiple of 21.01x FY17E & 19.20 x FY18E. P/BV is seen at 2.87 x FY17E & 2.50 x FY18E with a target price of Rs. 230. Disclaimer                                                                                                     The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment. The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report. The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected. The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments. We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever. The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

BATA INDIA LTD - SEPTEMBER QUARTER FY17 RESEARCH REPORT

BATA INDIA LTD- September Quarter FY17  BATA INDIA LTD one of the popular & credible brands of India reported second quarter FY17 with Revenue rising 2% YOY from Rs. 5747 Mn to Rs. 5837 Mn corresponding period previous year. Net Profit in the current September quarter stood at Rs. 346 Mn compared to Rs. 544 Mn in Q2 FY16, declining by 36% YOY. Decline is with respect to exceptional item of Rs. 317 Mn reported in Q2 FY16. Excluding this item, Net Profit or PAT has handsomely jumped by 53% YOY. EBDITA is also on a strong footing rising 17% YOY at Rs. 676 Mn against Rs. 578 Mn in Q2 FY16. EBDITA Margin has also risen 153 basis points on yearly basis and was reported at 11.58% in the current September quarter. Other Income has increased both quarterly and yearly by 27% and 45% respectively. Other Income was reported at Rs. 141 Mn in the current September quarter. Operational Expenditure was curtailed at Rs. 5462 Mn declining 10% QOQ whereas it was constant in yearly terms. Though the yearly numbers are healthy, quarterly growth is somber as Revenue, PAT & EBDITA have fallen in double digits. Revenue has declined by 13% QOQ, EBDITA followed suit plunging by 27% quarterly and Net Profit 31% QOQ.  The June quarter has always been the strongest quarter for the company and as such highest sales or revenue is recorded in the quarter ended 30th June. This is on account of re-opening of educational institutions across India leading to higher revenue and PAT for the company as BATA is still regarded as the most trusted brand for school & Kids footwear across India. Though it has maintained its leadership position in branded footwear industry, the company needs to reinvent beyond its June syndrome and take competition head on both from unorganized sector and organized players like Relaxo, Paragon to name a few. Bata stands for Trust, Superior Quality & Credibility and it has maintained it for over more than 85 years. In the present scenario, the company has over 1265 Bata stores, sells 50 million pairs and serves 120000 customers every day. We recommend BUY for the stock for medium & long term investment with PE multiple of 29.13x FY17E & 26.47 x FY18E. P/BV is seen at 2.28x FY17E & 2.10 x FY18E with target price of Rs.495. Disclaimer                                                                                                     The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment. The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report. The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected. The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments. We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever. The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice. This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk. The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

INFOSYS LTD - SEPTEMBER QUARTER RESULT (Consolidated)

INFOSYS, India’s second largest IT major with a market cap of Rs. 2236062 Mn returned to its growth momentum with PAT and Income from Operations rising 6% and 11% respectively in Q2 FY17 compared to the same period previous year.  Profit After Tax or Net Profit stood at Rs. 36060 Mn quarter ended 30^th September 2016 against Rs. 33980 Mn corresponding September quarter 2015. EBDITA also reported growth of 7% at Rs. 54930 Mn in Q2 FY17 compared to Rs. 51440 Mn in Q2 FY16. September quarter was better than the previous June quarter as PAT, EBDITA rebounded with 5% & 6% growth QOQ. Revenue also grew 3% QOQ at Rs. 173100 Mn against Rs. 167820 Mn in the previous June quarter. Except Manufacturing & Life Sc, Healthcare, Insurance, all other business segments grew in double digits. Energy & Utility Communication Services led the pack with 16% jump YOY at Rs. 38640 Mn against Rs. 33360 Mn same period previous year. Volume growth is 4% during the quarter and high performer attrition rate is down to 8.90%. Operating margins have improved 80 basis points QOQ through efficient utilization of workforce, reduction in subcontractor costs and onsite employee cost. Though the company is struggling to consolidate its position in the present volatile slow growth scenario especially in US & Europe which contribute 61.50% & 22.50% respectively of its revenues, it is on the path of maintaining sustainable growth which might be considered low compared to its financial performance in the previous few years. Global uncertainty has heightened and protectionism is the current theme which started with BREXIT. Indian IT Industry is facing the brunt due to uncertain global regulatory changes, increase in wage bill, pricing pressure and low discretionary IT spending world over. Infosys will take all these challenges head on with its highly credible management, stable margins, zero debt, high operating cash flow, improving bottom line and thus is still a force to reckon with.

·       Net Profit Margin is seen at 21.28% X FY 17E and 21.74% x FY18E respectively. EPS is seen at 63.32 x FY17E and 68.57 x FY18E respectively. At CMP of Rs.977.30, PE ratio for the bank is seen at 15.44 x FY17E and 14.25 x FY18E respectively. P/B for the Bank is seen at 2.93 x FY17E and 2.67 x FY18E respectively. Thus we recommend BUY for the stock for medium and long term at a target price of Rs. 1250.

  Disclaimer                                                   

                                                

    The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

    The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

   Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

  The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

    The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

   

   We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

   The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

   This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

  The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

AMARA RAJA BATTERIES LTD - RESEARCH REPORT (SEPTEMBER QUARTER FY17)

YES BANK RESEARCH REPORT - SEPTEMBER QUARTER FY17

YES BANK - SEPTEMBER QUARTER RESULT FY17

Yes Bank reported strong numbers in the second quarter of the financial year FY17. Net Interest Income, difference between interest earned and expended was at Rs. 14462 mn up by 30.50% YOY. Net Profit or PAT also grew in double digits at 31.30% YOY, from Rs. 6105 mn compared to Rs. 8015 mn in the current September quarter. Net Interest Margin (NIM) rose 10 basis points YOY whereas quarterly status quo is maintained at 3.4%. With respect to asset quality NNPAS were constant at 0.29% quarterly whereas YOY, there is rise of 9 basis points. GNPAs as a percentage of gross advances rose by 22 basis points YOY though yearly rise was restricted to just 4 basis points. Provisions curtailed quarterly by 22%, jumped 56% YOY compared to same period previous year. Double digit growth rate is visible in all business segments, but retail segment stole the show galloping at 150% on yearly basis. As a result, major driving force for the bank, corporate segment’s share in total revenue, is reduced to 63% from 66% same period previous year. Other Income or Non Interest Income constituting 18% of total income exhibited 1% de-growth in the current September quarter where as YOY growth was a healthy 44%. The bank has achieved for the first time CASA ratio of 30.30% in the current September quarter. Low cost funding or CASA expanded 480 basis points YOY and 70 basis points over the previous June quarter. Growth momentum continued for both Deposits and Advances with healthy yearly growth of 29% and 38% respectively. Advances and Deposits stood at Rs. 1102162 mn and Rs. 1280238 mn respectively with quarterly growth of 4%.

Net Profit Margin for the Bank is seen at 20.83% X FY 17E and 21.34% x FY18E respectively. At CMP of Rs. 1215.50, EPS is seen at 77.55 x FY17E and 89.00x FY18E respectively. The PE ratio for the bank is seen at 15.67 x FY17E and 13.66 x FY18E respectively. P/B for the Bank is seen at 3.00 x FY17E and 2.46 x FY18E respectively. We recommend BUY for medium and long term investment with the target price of Rs 1300.

AMARA RAJA BATTERIES LTD - SEPTEMBER QUARTER RESULT FY 17 

Amara Raja Batteries Ltd one of the leading manufacturers of automotive batteries reported double digit growth numbers for its second quarter FY17. Revenue rose 18% YOY from Rs.12891 Mn to Rs. 15204 Mn in the current September quarter. Net Profit grew by 10% yearly at Rs. 1363 Mn against Rs. 1234 Mn in the same period previous year. Sequential growth was slower at 4% for both Revenue & PAT in the current Q2 FY17. Other Income on the other hand was on a stronger footing quarterly with a 34% rise and was reported at Rs. 120 Mn compared to Rs. 112 Mn in current Q2 FY17 with yearly growth at 7%. EBDITA stood at Rs. 2417 Mn compared to Rs. 2112 Mn in the same period previous year growing by 2% QOQ & 14% on yearly basis. Expenditure jumped 19% YOY from Rs. 11235 Mn to Rs. 13364 Mn in the current September quarter. As a result, EBDITA margin declined 48 basis points YOY as operating expenses outpaced Revenue growth. Interest or Finance costs jumped 16% YOY at Rs. 14.90 Mn in the current September quarter. Tax expenditure constituting 4% of total revenue jumped 12% YOY in Q2 FY17. Taxation expense was reported at Rs. 582 Mn compared to Rs. 522 Mn in the same period previous year. Net Profit Margin was 8.97% against 9.57% same period previous year.  We recommend BUY for the stock for medium & long term investment with PE multiple of 27.36x FY17E & 24.39 x FY18E. P/BV is seen at 5.78 x FY17E & 4.67 x FY18E. Disclaimer                                                                                                     The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment. The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur. Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report. The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected. The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments. We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever. The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice. This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk. The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

SOUTH INDIAN BANK RESEARCH REPORT - Q2 FY17

RALLIS INDIA Q2 FY17

Rallis India Ltd - September Quarter Results (Q2 FY17)

Rallis India Ltd posted consolidated Net Profit of Rs. 665 million for the quarter ended September 30, 2016 as compared to Rs. 508 million for the quarter ended September 30, 2015, 31% up YOY. Net Profit has declined 62% QOQ as Net Profit stood at Rs. 1742 million in Q1 FY17 which included exceptional item of Rs.1584 million on account of profit on assignment of leasehold rights to a plot of land in the MIDC area. Profit before exceptional item & taxation in the current September quarter stood at Rs. 958 mn compared to 624 mn in Q1 FY16, rise of 53% QOQ. Other income too has increased 26% YOY at Rs.37.60 million in the current Q2 FY17. Earnings before depreciation, interest and taxation galloped 18% YOY from Rs. 912 million to Rs. 1080 million in the current September quarter. Expenditure was reported at Rs. 5034 million in Q2 FY17 against Rs.  4169 million same period previous year. Finance costs were curtailed to Rs. 11 million compared to Rs. 29 million corresponding quarter previous year. Total Income has increased from Rs. 4924 million for the quarter ended September 30, 2015 to Rs. 5966 million for the quarter ended September 30, 2016, growth of 21% YOY.

Net Profit Margin for the Bank is seen at 8.15% X FY 17E and 8.10% x FY18E respectively. EPS is seen at 7.79 x FY17E and 8.08 x FY18E respectively. The PE ratio for the bank is 27.45 x FY17E and 26.50 x FY18E respectively at CMP of Rs. 214. The P/BV ratio for the bank is at 3.96 x FY17E and 3.45 x FY18E respective. We recommend BUY for the stock at a target price of Rs. 280 for medium and long term. 

INDUSIND BANK REPORT - SEPTEMBER QUARTER FY17

SOUTH INDIAN BANK -SEPTEMBER QUARTER RESULT FY17

South Indian Bank reported strong second quarter numbers with PAT & Net Interest Income rising 18% & 15% respectively. Profit After Tax stood at Rs. 1105 mn for the quarter against Rs. 934 mn in the same period previous year and also rose 16% sequentially. Net Interest Income stood at Rs. 4450 mn compared to Rs. 3880 mn in the corresponding quarter previous year, rising 15% YOY and 19% QOQ. Net Interest Margin (NIM) is reported at 2.75% rising by one basis point over the previous June quarter, but on yearly basis decline has been around 6 basis points. Other income also jumped 20% YOY from Rs. 1212 mn to Rs. 1459 mn in the current September quarter. Compared to the previous June quarter, other income declined by 16% in Q2 FY17. Asset Quality seems to be stable as Net NPAs have declined QOQ by 12 basis points whereas Gross NPAs were constant at 3.96%. Gross NPAs & Net NPAs stood at 3.96% & 2.77% respectively in the current September quarter FY17. Provisions for the current quarter were at Rs. 1283 mn compared to Rs. 675 in Q2 FY16, almost doubling YOY. All segments except corporate performed well in the current quarter. CASA ratio is stagnant at 22.80% YOY, though on quarterly basis it has dipped by 40 basis points. Advances witnessed QOQ growth of 5.60% whereas Deposits were constant at 4% over the previous two quarters. Advances & Deposits stood at Rs. 435480 mn & Rs. 601920 mn with yearly rise of 10% & 13% respectively in the current September quarter. South Indian Bank has around 454 branches in Kerala with a total of 854 branches & 1306 ATMs as on 30^th September 2016. The bank has Capital Adequacy Ratio of 11.13%. The bank seems to be strong on profitability in the current September quarter but weak when it comes to asset quality & CASA ratio compared to other private sector competitors. The bank needs to expand to strengthen its CASA & credit growth in the long run. With new banks already in the fray along with small & payments bank, Indian banking sector is becoming more & more competitive.

Net Profit Margin for the Bank is seen at 5.33% X FY 17E and 5.19% x FY18E respectively. At CMP of Rs. 24.40, EPS is seen at 2.56 x FY17E and 2.62 x FY18E respectively. The PE ratio for the bank is seen at 9.53 x FY17E and 9.30 x FY18E respectively. P/B for the Bank is seen at 0.81 x FY17E and 0.75 x FY18E respectively. We recommend HOLD for medium and long term investment with the target price of Rs 40.

Disclaimer                                                   

                                                

The information and opinions contained in the research reports have been compiled or arrived at from sources believed reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. The research report does not constitute a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual clients. Clients should consider whether any advice or recommendation in this research is suitable for their particular circumstances and, if appropriate, seek professional advice, including but not limited to tax advice. The reports do not take into account the particular investment objectives, financial situations, risk profile or needs of individual clients. The user assumes the entire risk of any use made of this information. This report is not to be relied upon in substitution for the exercise of independent judgment.

The price and value of investments referred to in this research and the income from them may fluctuate. Past performance is not a guide to future performance, future returns are not guaranteed, and a loss of original capital may occur.

Research data and reports published/ emailed/ text messaged via Short Messaging Services, Online Messengers, WhatsApp etc/transmitted through mobile application/s, including but not limited to FLIP™, Video Widget, telephony networks, print or electronic media and or those made available/uploaded on social networking sites (e.g. Facebook, Twitter, LinkedIn etc) is for informational purposes only. The reports are provided for assistance and are not intended to be and must not alone be taken as the basis for an investment decision. The user assumes the entire risk of any use made of this information. Though disseminated to clients simultaneously, not all clients may receive the reports at the same time. We will not treat recipients as clients by virtue of their receiving this report.

The reports include projections, forecasts and other predictive statements which represent our assumptions and expectations in the light of currently available information. These projections and forecasts are based on industry trends, circumstances and factors which involve risks, variables and uncertainties. The actual performance of the companies represented in the report may vary from those projected.

The opinions expressed in the reports are subject to change but we have no obligation to tell our clients when our opinions or recommendations change. The reports are non-inclusive and do not consider all the information that the recipients may consider material to investments.

We shall not be in any way responsible for any indirect, special or consequential damages that may arise to any person from any inadvertent error in the information contained in the reports nor do they take guarantee or assume liability for any omissions of the information contained therein. Information contained therein cannot be the basis for any claim, demand or cause of action. These data, reports and information do not constitute scientific publication and do not carry any evidentiary value whatsoever.

The user should consult their own advisors to determine the merits and risks of investment and also read the Risk Disclosure Documents for Capital Markets and Derivative Segments as prescribed by Securities and Exchange Board of India before investing in the Indian Markets. The securities discussed in this report may not be suitable for all investors. Investors must make their own investment decision based on their own investment objectives, goals and financial position and based on their own analysis. Prospective investors and others are cautioned that any forward-looking statements, if any, are not predictions and may be subject to change without notice.

This report may provide the addresses of, or contain hyperlinks to websites. Except to the extent to which the report refers to material we take no responsibility whatsoever for the contents therein. Such addresses or hyperlinks are provided solely for your convenience and information and the content of the linked site does not in any way form part of this report. Accessing such website or following such link through this report shall be at your own risk.

The author of this Research Report accepts no liability and will not in any way be responsible for the contents of this report or for any losses, costs, expenses, charges, including notional losses/lost opportunities incurred by a recipient as a result of acting or non-acting on any information/material contained in the report. This is not an offer to sell or a solicitation to buy any securities or an attempt to influence the opinion or behavior of investors or recipients or provide any investment/tax advice. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.