Wednesday, 30 November 2016



                                       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.

Thursday, 24 November 2016


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 30th 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.





Monday, 21 November 2016

Tuesday, 15 November 2016

Thursday, 10 November 2016


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.

Wednesday, 9 November 2016


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.