Showing posts with label market. Show all posts
Showing posts with label market. Show all posts
Tuesday, May 9, 2017
Company news, Market News, Stocks
Torrent Pharma acquires healthcare brands from Novartis:Torrent Pharma has said that it has completed the acquisition of women healthcare brands Regestrone and Pregachieve for India from Swiss pharma major Novartis AG.
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Dena Bank reports net loss of Rs 575.26 crore in Q4:The Bank has posted a net loss of Rs 575.26 crore for the quarter ended March 31, 2017.
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Precision Wires India surged over 4% after net profit rose 39.72% to Rs 6.93 crore on 18.3% rise in net sales to Rs 247.94 crore in Q4 March 2017 over Q4 March 2016.
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CMI rose over 3% after the company won an order from Gujarat Energy Transmission Corporation (GETCO) for supply of 66KV XLPE cables. The order is revenue accretive and will be delivered within two quarters of the year ending 31 March, 2018 (FY 2018).
Monday, May 8, 2017
Fundamental Company Update: Greaves Cotton Ltd
Greaves Cotton Ltd
Industrials - Capital Goods
Volume Pick-up and Easing Cost Pressures to Aid Growth
Greaves consolidated revenue (net) remained flat at 1.1% at Rs.16,344mn nevertheless consolidated EBITDA dropped by 9.0% to Rs.2,434mn which are however higher by 2.4% and 1.6% respectively than my full year FY17 estimates. In terms of volumes, for FY17 for 3 Wheelers engines reached to 270k, 4 Wheelers-30k, Power Gen-32k, Power Tillers-3.8k and Pumps-90k. Despite volume growth in other segments, drop in auto volumes was majorly due to demonetisation during the peak season and switch from BS3 to BS4 standards which came in with higher realisation aided flat revenues for FY17.
Revenues flat for FY17; Product mix contributes positively: Consolidated revenues for FY17 were flat at Rs.16,344mn and the same for Q4FY17 dropped by 3.4% to Rs.3,907mn. In terms of segments, Engines segment revenues (gross) were flat at Rs.17,565mn however, de-grew in Q4FY17 by 5.8% QoQ to Rs.4,123mn. Volume drop on YoY in the auto engines segment by 9.0%-10%, while volumes were higher by 60.0% for powergen, for tillers at 8.6% and for pumps at 12.5%.
Switch from BS3 to BS4 in the domestic market ushered in price hikes in the range of 8.0%-10.0% which aided for volume drop.
Margins were under pressure; expected to normalise going forward: Absolute EBITDA, EBIT and PAT came in at Rs.2,434mn, Rs.2,530mn and Rs.1,807mn which were lower by 9.0%, 14.9% and 10.1% respectively. Material margin dropped by 66bps due to material mix, inventory positions, higher staff costs and other costs dented margins further. EBITDA, EBIT and PAT margins were lower by 166bps, 291bps and 138bps to come in at 14.9%, 15.5% and 11.1% respectively.
Valuation and Outlook
Grevaes domestic market to turn robust with BS4 implementation apart from new product launches like Leap engines, new geographical presence, potential addition of customers, ‘Greaves Auto Care’-new service offering and fructification of R&D efforts for BS6 engines could all shape into FY18E, FY19E and beyond. We roll forward our valuation to FY19E estimates and revise our price target upwardly to Rs.203.
Industrials - Capital Goods
Volume Pick-up and Easing Cost Pressures to Aid Growth
Greaves consolidated revenue (net) remained flat at 1.1% at Rs.16,344mn nevertheless consolidated EBITDA dropped by 9.0% to Rs.2,434mn which are however higher by 2.4% and 1.6% respectively than my full year FY17 estimates. In terms of volumes, for FY17 for 3 Wheelers engines reached to 270k, 4 Wheelers-30k, Power Gen-32k, Power Tillers-3.8k and Pumps-90k. Despite volume growth in other segments, drop in auto volumes was majorly due to demonetisation during the peak season and switch from BS3 to BS4 standards which came in with higher realisation aided flat revenues for FY17.
Revenues flat for FY17; Product mix contributes positively: Consolidated revenues for FY17 were flat at Rs.16,344mn and the same for Q4FY17 dropped by 3.4% to Rs.3,907mn. In terms of segments, Engines segment revenues (gross) were flat at Rs.17,565mn however, de-grew in Q4FY17 by 5.8% QoQ to Rs.4,123mn. Volume drop on YoY in the auto engines segment by 9.0%-10%, while volumes were higher by 60.0% for powergen, for tillers at 8.6% and for pumps at 12.5%.
Switch from BS3 to BS4 in the domestic market ushered in price hikes in the range of 8.0%-10.0% which aided for volume drop.
Margins were under pressure; expected to normalise going forward: Absolute EBITDA, EBIT and PAT came in at Rs.2,434mn, Rs.2,530mn and Rs.1,807mn which were lower by 9.0%, 14.9% and 10.1% respectively. Material margin dropped by 66bps due to material mix, inventory positions, higher staff costs and other costs dented margins further. EBITDA, EBIT and PAT margins were lower by 166bps, 291bps and 138bps to come in at 14.9%, 15.5% and 11.1% respectively.
Valuation and Outlook
Grevaes domestic market to turn robust with BS4 implementation apart from new product launches like Leap engines, new geographical presence, potential addition of customers, ‘Greaves Auto Care’-new service offering and fructification of R&D efforts for BS6 engines could all shape into FY18E, FY19E and beyond. We roll forward our valuation to FY19E estimates and revise our price target upwardly to Rs.203.
Stocks to look for the week
Smart Trader is a weekly product from US, with 8 stock recommendations to help you take Long/Short Positions based on the swing movement in F&O. The stock selection is based on Technical and Derivative parameters.
|
| STOCK | SECTOR | CMP | ACTION | ENTRY* | SL | TGT |
| ADANIPORTS | INFRA | 345.1 | BUY | 342 | 328 | 363 |
| LT | CG | 1733.45 | BUY | 1732 | 1690 | 1795 |
| MINDTREE | SOFTWARE | 499.15 | BUY | 498 | 485 | 520 |
| PFC | UTILITIES | 162.7 | BUY | 162 | 158 | 169 |
| AJANTPHARM | PHARMA | 1644.9 | SELL | 1656 | 1720 | 1560 |
| JUSTDIAL | SOFTWARE | 490.7 | SELL | 495 | 515 | 465 |
| MCDOWELL-N | FMCG | 1900.65 | SELL | BLW 1890 | 2010 | 1710 |
| SAIL | METAL | 60.1 | SELL | 60.5 | 63 | 55 |
*Refers to (if any call is not initated,entry levels for the recommendations(s) will be sent on the trading terminals) (CMP: Currrent Market Price |SL: Stoploss| TGT: Target)
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