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