09/08/2018
BLOOMBERGQUINT BROKERAGE RADAR
Nomura on ACC
Upgrade to Buy from Neutral; Raise TP to Rs 1,900 from Rs 1,890
After correction, valuations are no longer demanding
Cycle uptrend has begun; Earnings recovery on track
Volume upside limited, but may surprise on realisations/costs
Nomura on Ambuja
Upgrade to Buy from Neutral; Cut TP to Rs 295 from Rs 300
Post-correction valuations attractive
As demand growth continues, earnings outlook looks better
New capacity improves volume outlook
See synergy benefits to improve after master supply agreement
SBICAP on BPCL
Maintain Buy with TP of Rs 526
Q1 net profit above estimates purely driven by higher than expected inventory gains
Refining core performance was weak with lower core GRM and higher opex
Marketing inventory gain was higher than expected
Temporary pause in price hike doesn’t change structural deregulation story
Nomura on BPCL
Maintain Buy with TP of Rs 555
Large inventory gains was a key reason for the beat
Strong marketing margins adjusted for inventory gains
Near-term focus will likely remain on retail prices of diesel/petrol
Continue to believe OMCs should be able to pass on cost increases
JPMorgan on HPCL
Maintain Underweight; Cut TP to Rs 260 from Rs 295
Large inventory gains drove earnings beat
Underlying refining sharply weaker
HPCL's older refineries means not ideally positioned for IMO
Remain underweight given confluence of headwinds
Nomura on HPCL
Maintain Buy with TP of Rs 415
Large inventory gains was a key reason for the beat
Marketing apart from inventory gains remained strong
Near-term focus will likely remain on retail prices of diesel/petrol
Continue to believe OMCs should be able to pass on cost increases
CLSA on Cipla
Maintain Buy; Raise TP to Rs 760 from Rs 650
Operationally in-line, Net profit beat on higher other income
US ramp-up weak but should pick up in H2FY19
Expect margin expansion to continue as US sales ramp up
Morgan Stanley on Cipla
Maintain Overweight with TP of Rs 716
In-line Q1FY19; Steady improvement under way
Top-line growth to be driven across geographic segments
U.S. Margins are poised to improve
Complex launches, cost control and better revenue mix to aid
Reasonable valuations keep us overweight
Credit Suisse on Lupin
Downgrade to Underperform from Neutral; Cut TP to Rs 715 from Rs 770
Sharp erosion in US sales; Price erosion to accelerate with increasing approvals
Q1 saw no one-offs in US; Current weak base is the new normal
Expect earnings to remain subdued for the next two quarters
JPMorgan on Lupin
Maintain Neutral with TP of Rs 760
Lower US revenues leads to margin miss
Margins weak despite lower R&D and other expenses
Erosion in US business and margin reset is concerning
Few catalysts for earnings recovery in the near term
CLSA on Sobha
Maintain Buy with TP of Rs 764
Q1 results steady amidst major accounting change
Non-Bengaluru presales drive performance; Expect acceleration ahead
Contracting business is seeing good growth
Accounting changes drive financial adjustments
Deutsche Bank on Sobha
Maintain Buy with TP of Rs 550
Started new fiscal with steady operational and financial performance
New launch momentum accelerated over the quarter
See improved performance in contract and manufacturing units
Deutsche Bank on Siemens India
Maintain Hold; Cut TP to Rs 1,070 from Rs 1,150
Reported a solid net profit growth, but flat on order inflows
Thesis of good revenue growth but weak orders is playing out
Expect single-digit revenue growth in FY19
IDFC Securities on Strides Shasun
Maintain Outperformer with TP of Rs 613
Q1 positives: Higher US and institutional business
Management expects pick up in US business from H2FY19 onwards
Remain positive given strong position in Australia and growth potential in US
UBS on SRF
Maintain Buy with TP of Rs 2,500
Riding on packaging film and guiding strong
Packaging strong due to higher realization, currency tailwinds, volume uptick and inventory gains
Management maintained strong growth guidance for specialty chemical
