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Friday, 31 March 2017
Thursday, 30 March 2017
Wednesday, 29 March 2017
INDIAN ECONOMY IN A
SWEET TINA SPOT
“It’s the TINA factor
sweetheart”, I quipped when my 12 year old was emphatic over her social science
& biology grades. I explained that there was no other alternative for her
than to study. “Really! You are funny Ma”. She has no idea that these days even
stock market surges are being attributed to this renowned acronym, TINA (There Is No Alternative). Well Indian
Stock markets are soaring these days and people i.e investors, hedge fund managers,
brokerage houses, analysts are not finding any reason for it. How long can they
keep giving UP election results as a reason for the REASONS why our NIFTY might
touch 9300 in few months? So for most of them when the markets go up its ‘TINA’
and when the market goes down its TRUMP. And mind you both TINA & TRUMP are
mutually exclusive.
Stock markets were once considered as barometer of economic
prosperity & financial health of a country. But this theory has long been forgotten
in the era of liquidity & uncertainty. As a result investors are more
driven by sentiments & information flow within the market than by its
fundamentals. With respect to India, there is no uncertainty left, so no
reasoning left for upside risk for the economy. Analysts keep on harping on
policy continuity on reforms and predicting 2019 general elections and even
beyond that as if they were discussing some telecom company’s extension offer.
Have the macro fundamentals just gone up after UP assembly elections or have we
started using prism glasses. But the question remains, why the Indices are
moving up without any backing from corporate earnings. I think most of us have
forgotten what we learnt in our graduation days. PEST.
PEST is nothing but Political, Economic, Social &
Technological external factors that influence any company or industry. These factors
are analyzed by any sane serious investor before putting his hard earned money in
stocks or companies. And India has all these factors in the right place at the
right time. So when the dollar seems to be confused about its own divergent economic
& fiscal policies, Indian Rupee is gaining strength over the convergence of
its socio-economic-political policies. Now for pragmatists who need facts, IIP for
January was 2.7%, PMI above 50, controlled inflation at 3.65% within RBI limit,
forex reserves have gone up to $367 billion, exports grew 17.50% in February
which is a sixth consecutive rise this year and last but not the least GDP at
7.1% is the fastest growing in the world. Now coming back to corporate earnings, growth
is definitely not anemic but in single digits which is expected to rise in
double digits by financial year 2018 and investors both domestic & foreign
are betting on this growth as evident from FPI flows of Rs.22268 crore this
month, highest since February 2013. Government is moving with GST
implementation by July this year, NPA resolution policy next month and other land,
labor and agricultural reforms. So foreign analysts are rightly calling us of
being in a SWEET TINA SPOT. But I really love this word TINA, which I am
planning to give it to my newborn niece. Yes, you guessed it right, I didn’t
find any other name!!
Tuesday, 28 March 2017
Saturday, 25 March 2017
Friday, 24 March 2017
|
HAVELLS INDIA LTD - Q3 FY17
HAVELLS INDIA LTD
reported stable third quarter FY17 with PAT rising at 28% YOY despite
demonetization. PAT stood at Rs. 1530 Mn against Rs. 1199 Mn corresponding
period previous year. Sequential growth was reported at 5% in the
current December quarter. Revenue
was seen at Rs. 16221 Mn rising 13% YOY, though growth was slower at 4% sequentially. EBDITA
was reported at Rs. 2194 Mn in Q3 FY17 against Rs. 1985 Mn corresponding
quarter previous year, registering a double digit growth of 11% YOY. On
quarterly basis, EBDITA declined 7% in the current Q3 FY17 as operating expenditure rose 15% YOY. Operating
expenditure stood at Rs. 14592 Mn compared to Rs. 12731 Mn corresponding
quarter previous year. Other Income too played it’s part and jumped 2 times YOY buttressing
company’s bottom-line in the current quarter. Other Income was reported at
Rs. 264 Mn compared to Rs. 134 Mn in Q3 FY16. Increase in other income
is due to interest earned on funds received from Sylvania divestment. Havells
India witnessed strong volume growth & demand in industrial cable & lighting
divisions in the current quarter. With
double digit growth Net Profit Margin rose 105 bp YOY & 8 bp sequentially. One basis point is 1/100th
of a percentage. EBDIA & Net Profit Margin stood at 13.52%
& 9.43% in the current December quarter. The company is also focused on
deleveraging itself as Net Debt
has halved from Rs. 553 Mn in Q3 FY16 to Rs. 114 Mn in the current December quarter.
The company has current cash holdings
of about Rs.14313 Mn as on 31st December 2016.Havells India Ltd with
market cap of Rs. 282455 Mn is a
leading FMEG company. The products of
the company range from industrial and domestic circuit protection switchgear,
cables and wires, motors, fans, power capacitors, compact fluorescent lamps, luminaries
for domestic, commercial and industrial applications, modular switches
covering household, commercial and industrial electrical needs, water heater and
domestic appliances. The company has performed well despite a
tough demonetization hit December quarter. The company has strong
fundamentals and is poised for higher growth with its foray into consumer
durables industry with Lloyd acquisition. We recommend BUY for the
stock for medium & long term investment with PE multiple of 46.29 x
FY17E & 37.14 x FY18E with a
target price of Rs. 590.
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.
|
Thursday, 23 March 2017
Wednesday, 22 March 2017
Tuesday, 21 March 2017
Monday, 20 March 2017
Saturday, 18 March 2017
WHEELS INDIA LTD - Q3 FY17
Wheels India Ltd reported
strong yearly growth in December quarter FY17. Revenue or Income From
Operations rose 14% YOY from Rs. 4698 Mn to Rs. 5365 Mn in the current Q3
FY17. PAT jumped at a phenomenal growth rate of 121% YOY and stood at Rs. 132
Mn compared to Rs. 60 Mn in the current December quarter. EBDITA stood at Rs. 450 Mn compared
to Rs. 380 Mn in the same period previous year growing by 18% YOY. Quarterly growth
was somber with Revenue & EBDITA declining 2% whereas Net Profit managed
to rise 1% in the current December quarter. Operating Expenditure jumped 14%
YOY from Rs. 4473 Mn to Rs. 5076 Mn in the current December quarter. On
quarterly basis there was decline of 1.5% to cope with low revenue growth. As a result EBDITA margin declined 2
basis points YOY and was reported at 8.39% in the current December quarter. Operating
costs constitute 95% of total revenues. In addition to that, higher interest or
Finance costs need to be curtailed and comprise 2% of Revenues or 88% of Net
Profit. Net Profit Margin was reported at 2.46% jumping 119
basis points YOY compared to same period previous year. Sequentially
there was a jump of 6 basis points. Other Income aided rising 73% YOY and was
reported at Rs. 8.30 Mn compared to Rs. 4.80 Mn corresponding quarter
previous year. QOQ, other Income jumped 20% in the current Q3 FY17.
Wheels India is a
leading manufacturer of steel wheels for passenger cars, utility vehicles, trucks,
buses, tractors & construction equipment. Apart from wheels other divisions
are air suspension, energy equipment & heavy engineering division. The
wheels division contributes 50% of revenues for the company. Air suspension
business has reported strong volume growth in the first nine months of the
year. The company has a diversified base with over 30 customers spread
globally such as Japan, Korea, US, Brazil, China to name a few.
We recommend BUY for
the stock for medium & long term investment with PE multiple of 25.80 x
FY17E & 22.61 x FY18E with a target price of Rs. 1355.
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.
|
Friday, 17 March 2017
Thursday, 16 March 2017
Wednesday, 15 March 2017
Tuesday, 14 March 2017
DCB BANK LTD -Q3 FY17
DCB BANK LTD reported stellar
third quarter results despite demonetization with PAT, NII, PBT, Advances
& Deposits all growing in double digits. PAT for the December quarter stood at Rs.
513 Mn compared to Rs. 412 Mn same period previous year rising 25% YOY. Net
Interest Income, difference between interest earned and expended was at Rs. 2095
Mn in the current quarter against Rs. 1605 Mn corresponding quarter previous
year, expanding 31% YOY. Net Interest Margin reported at 3.95% seems
to be stable in a demonetization hit quarter. NPA ratios have improved both yearly and
sequentially in the current December quarter. Gross NPAs as a percentage of Gross
Advances improved 43 basis points YOY at 1.55%. Net NPAs as a percentage of Net
Advances was reported at 0.74% in the current Q3 FY17 against 1.12% same
period previous year recovering 38 basis points YOY. One
basis point is 0.01%. Provisions & contingencies increased
45% YOY at Rs. 305 Mn vis-Ã -vis Rs. 210 Mn in Q3 FY16. Double
digit growth was visible in all business segments except corporate banking which
contributes 12% to total revenues. Retail & Treasury rose 22% & 13% accounting
64% & 23% respectively in the current December quarter. Other banking
business growing 2.5 times YOY was 1% of revenues. CASA ratio at 25.85% jumped 394 basis points YOY due to
demonetization impact. CASA deposits increased from Rs. 32175
Mn in Q3 FY16 to Rs 48709 Mn in current December quarter, jump of 51% YOY. Other
income or non interest revenue accounting 10% of the total income of the bank
rose at 36% YOY at Rs. 641 Mn against Rs 472 Mn same period previous year. Deposits
outpaced Advances moving at 34% yearly and 7% QOQ. Advances also grew at a
healthy yearly rate of 24% though sequential growth was dismal at 1.03% in the
current December quarter. Cost income ratio of bank improved to 59.42% in the
current December FY17 against 60.07% corresponding quarter previous year.
|
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.
Monday, 13 March 2017
DEMONETIZATION
CONUNDRUM: NO SURPRISES MITROON
Political pundits & financial analysts are a baffled lot
these days. The number 324 was the last straw. Demonetization did what Jan Dhan
Yojana couldn’t. Nobody cares what the GDP is and what rate India is going to grow
in the next two years. Let that job be done by our esteemed international
rating agencies and that is the only job left for them after 2008. If not for
them Greece would not have made it to the Euro and the rest is history. Well
before I get into politics or geo-politics, let me get to the core issue for
what I am writing. DEMONETIZATION.
8TH November, the dreaded date when 86% of legal
tender went out of circulation, our economists & analysts predicted the December
quarter’s GDP as 6.5% or 6.7% or 6% depending on their level of pessimism covertly
labeled as pragmatism. But what happened in the next 52 days could be added as another
exception to the Law of Diminishing Marginal Utility. On 8th
November 2016, even hard core misers went out to buy gold in kilos, medicines in
thousands, fuel in kilo-liters and booked tickets for soothing far flung
relatives. Even my 12 year old daughter took out her savings to contribute to
the monthly family medicinal budget. So did economic activity cease, No! But
there were economic disruptions which propelled digitalization into our lives seeping
into India’s middle-class psyche and the aftermath was evident in Uttar Pradesh assembly
elections.
Coming to the bone of contention, Indian GDP and how did it come
out to be 7.1% for the third quarter of 2017. To make them understand, just
wanted to do what my economic professor always loved to do, giving illustrations.
So let’s assume that you give a Rs. 10 note to a 10 year old and explicate to
him that this is the last time he would ever see or hold it as its going out of
circulation the very next day. The Kid will obviously buy an ice-cream or a chocolate.
This is what our Richie rich class, HNIs, traders and corporate did. They spent
where they could and traded where they couldn’t as evident from higher sales
numbers of SUVs and Utility vehicles of auto companies. As demonetization
exercise started after festive season of Dussera & Diwali, the yearly held
on discretionary expenditure was already done before the government’s due date.
In addition to that government accelerated its expenditure in December quarter
to make up for the lost economic activity. Companies across industries delivered
huge stocks to their dealers who willing paid in advance propelling current
accounts and helped CASA ratios of banking sector swell with liquidity and as a
result companies showing normal sales for the December quarter. So where does the
question arise of GDP getting impacted. You just need to get your calculations
right. Now that the GDP numbers are out, our learned pessimist economists are waiting
for the March quarter to unfold and prove them right. But before they could
pronounce the next quarter GDP, Manufacturing PMI and Factory output have rebounded.
So what is left? Nothing just optimism
which according to Henry Rollins, “Wears heavy boots and is loud” and we just
heard it on 11th March 2017. Right!!!
Friday, 10 March 2017
LAKSHMI VILAS BANK LTD Q3 FY17 - BUY
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.
|
Wednesday, 8 March 2017
Tuesday, 7 March 2017
HINDALCO INDUSTRIES LTD (Standalone)- Q3 FY17
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
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user should consult their own advisors to determine the merits and risks of
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may not be suitable for all investors. Investors must make their own investment
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and based on their own analysis. Prospective investors and others are
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may be subject to change without notice.
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report may provide the addresses of, or contain hyperlinks to websites. Except
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the report. This is not an offer to sell or a solicitation to buy any
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category of investors. Persons in whose possession this document may come are
required to inform themselves of and to observe such restriction.
|
Monday, 6 March 2017
DREDGING CORPORATION OF INDIA LTD - BUY
Dredging Corporation of India Limited, or DCI, is engaged in
the business of dredging which involves maintenance dredging, capital dredging,
beach nourishment, land reclamation, shallow water dredging, Project Management
consultancy and Marine construction. The company is a Mini Ratna category- I
PSU with its head office at Visakhapatnam. The current market price of the
company spiked up today in morning trade as government stake sale is speculated in the market. The
company would definitely benefit from government selling its majority stake and
DCI moving to the private sector (in-case of a majority stake sale).
The current Profit After Tax for the December quarter stood
at Rs. 140 Mn against Net Loss of Rs. 196 Mn same period previous year. Income
from Operations was reported at Rs. 1519 Mn in the current quarter compared to Rs.
1614 Mn corresponding quarter previous year. Though Income from Operations have
declined 6% YOY, the company has reduced its operating cost 25% and finance
cost by 5% YOY. It would be a win-win situation for both the government &
the company as witnessed by the 10% intraday rise in the stock price. The government
with stake of about 73% may get a sizeable chunk of its disinvestment target and
DCI would benefit from privatization. Irrespective of disinvestment by the government, the stock is attractive for long term investment as DCI
is the leader in the Dredging industry in India and would benefit from the government
initiatives being undertaken with respect to various projects for inland
waterways and increase in merchandise trade. We recommend BUY for the stock
with a target price of Rs. 550 for medium & long term.
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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.
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