Post on 03-Jul-2020
1
EQUITY
Latest 1 Day P/E* P/B*
SENSEX 29,858.8 (0.9) 21.8 2.8
NIFTY 9,285.3 (0.8) 22.0 2.9
CNXMIDCAP 18,048.6 (1.0) 32.0 2.3
5-May-17
*Source: Bloomberg
NET INFLOWS (Rs. Crs.) 4-May-17
NET MTD YTD
FII (140.2) (7416.0) 10162.9
MF** 258.4 19971.3 30516.0
*YTD From January till date **As on 27-Apr-17
8 May 2017
Sushil Financial Services Private Limited Member BSE : SEBI Regn.No. INB/F010982338 | NSE : SEBI Regn.No.INB/F230607435. Regd. Office : 12, Homji Street, Fort, Mumbai 400 001. Phone: +91 22 40936000 Fax: +91 22 22665758 Email : info@sushilfinance.com
Please refer to important disclosures at the end of the report For private Circulation Only.
5-May-17
Latest Points % Chg.
NIKKEI 225 * 19795.2 349.5 1.8
HANG SENG * 24586.3 110.0 0.5
DOWJONES 21006.9 55.5 0.3
NASDAQ 6100.8 25.4 0.4
SGX NIFTY FUT* 9339.5 22.5 0.2
INFY 14.8 0.1 0.5
HDFC BANK 82.5 0.9 1.1
ICICI BANK 9.4 0.2 2.0
TATA MOTORS 32.7 (1.2) (3.5)
WIPRO 10.0 0.0 0.0
DR REDDY 40.8 (0.1) (0.2)
* At 08:20 a.m. IST on 8-May-17
WORLD INDICES & INDIAN ADRs (US$)
COMMODITIES 2-May-17
Latest Points % Chg.
GOLD 1230.5 8.9 0.7
CRUDE OIL (WTI) 46.8 0.6 1.2
CRUDE OIL (Brent) 49.7 0.6 1.3
FII ACTIVITIES IN DERIVATIVES 5-May-17
FII Net Buy (Rs.
Crs)
Open
Interest
Ch. in Open
Int. (DOD)Index Futures (1088.5) 15236.1 (3.7)
Index Options 1800.3 57506.7 4.9
Stock Futures (470.4) 69189.9 (0.5)
Stock Options (105.2) 4016.7 16.0
5-May-17
Closing % Chg.
Dollar Index 98.7 0.10
Rs. / $ 64.4 0.31
Rs. / EURO 70.5 0.57
Rs. / UK Sterling 83.2 0.60
EXCHANGE RATE
G.SEC. YIELD 5-May-17
Yield (%)
GS CG2025 8.2% 6.94
US 10 Year Gsec 2.36
KEY OVERNIGHT DEVELOPMENTS
Wall street gained on Fri, with the S&P 500 ending at a record high close, as energy stocks bounced back along with oil prices and US job growth rebounded. US nonfarm payrolls surged by 211,000 jobs last month after a paltry gain of 79,000 in Mar, and the unemployment rate dropped to 4.4%, near a 10-year low. Asian shares traded mostly higher on Mon following the landslide victory of Emmanuel Macron in the French polls on Sunday, with the Nikkei share average hitting its highest level since Dec 2015.
MUST KNOW…. Expect 12-15% growth for HSCL over next 2-3 years: NBCC (#) (Rs.197, -1%)
PTC India (#) ties up pacts for 1,050 mw wind power supply (Rs.100, -3%)
'Slurp' being a milk based mango drink has edge over competition: Parag Milk (Rs.240, +1%)
Shankara Building Q4 profit rises 11% on stable topline, operational growth (Rs.705, +1%)
Eicher Motors’ (#) March quarter net profit jumps 33% to Rs.459 cr, announces dividend of Rs.100 (Rs.25837, 0%)
BSE Q4 net profit surges 3-fold to Rs.73 cr
HPCL, Mittal ready $3 bn to set up Bhatinda petchem unit (Rs.525, -1%)
Norway wealth fund excludes BHEL due to environment rules (Rs.173, -1%)
TCS (#) sets up research lab for drones in US (Rs.2320, 0%)
Orient Cement Q4 net profit declines 10.5% to Rs.16.52 cr (Rs.160, -3%)
Hope to achieve 10% bottomline growth in FY18; SKY to do well: Firstsource Solutions (Rs.40, -5%)
Procter and Gamble (#) Q3 net profit rises 2.6% to Rs.99.63 cr (Rs.737, 0%)
Transformers and Rectifiers Q4 net profit at Rs.0.29 cr (Rs.413, -2%)
Shoppers Stop Q4 net loss at Rs.36.06 cr (Rs.276, +1%)
Sanofi India Q1 net profit dips 27% at Rs.60 cr (Rs.4181, -1%)
Monsanto India Q4 net profit up 25% at Rs.30.11 cr (Rs.2575, 0%)
Apollo Tyres Q4 PAT down 16% at Rs.228.23 cr (Rs.245, +1%)
Oberoi Realty (#) hits 1-year high on strong Q4 numbers (Rs.403, +2%)
Rural markets seeing recovery; volume growth to improve in FY18: Emami (#) (Rs.1085, -2%)
Tata Communications Q4 loss at Rs.209 crore (Rs.641, -9%)
JP Associates fails to pay interest on NCDs (Rs.12, -4%)
Jubilant Life gains, to acquire radiopharmacy biz of Triad Isotopes (Rs.760, +3%)
Will focus on NIMs plus fee income: L&T Finance Holdings (#) (Rs.133, -3%)
NIIT Tech Q4 net up 23% to Rs.100.3 cr (Rs.471, -1%)
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Corporate Announcements & Financial Scoreboard Expect 12-15% growth for HSCL over next 2-3 years: NBCC (#) (Rs.197, -1%)
NBCC (India) Ltd management met analysts yesterday to discuss the Hindustan Steelworks Construction Ltd
(HSCL) acquisition that came into effect on Apr 1. In an interview to media, Anoop Kumar Mittal, CMD of
the company spoke about the latest happenings in his company and sector. "For the next two-three years I
am expecting minimum 12-15% topline growth for HSCL", he said, adding that he also expects 6-7%
bottomline growth for HSCL in FY18. Margin performance for FY18 should be in the range of 6-7%, he
added. Right now, HSCL a debt-free company and has cash reserves, which will be disclosed after results are
out, Mittal said.
PTC India (#) ties up pacts for 1,050 mw wind power supply (Rs.100, -3%)
Power trading solution provider PTC India has announced execution of agreements with seven state utilities
for sale of wind energy for a total 1049.9 mw. The agreements were exchanged between PTC and discoms
in presence of Power Minister Piyush Goyal at a conference of power, new and renewable energy and
mines ministers of states and UTs held here yesterday, the company said in a statement. The distribution
utilities of Uttar Pradesh, Bihar, Jharkhand, Assam, Odisha, Delhi and Noida have signed up. Uttar Pradesh is
the largest beneficiary of the scheme and has signed the memorandum of agreement (MoA) for 440 mw.
Earlier this year, the tariff for wind energy was discovered transparently through competitive bidding at a
historic low of 3.46 per unit. "The scheme is very beneficial for the power industry as a whole and the wind
industry in particular. It will attract more investments in the industry and lower tariff through competitive
bidding, which will benefit end consumers. This model will be very helpful for scaling up wind power
generation in the overall renewable energy basket in future," Deepak Amitabh, Chairman and Managing
Director, said in the statement. The Ministry of New and Renewable Energy (MNRE) had formulated the
scheme for tying up of 1,000 mw ISTS (Intra- state Transmission System) connected wind power in India.
Under the scheme, the projects are to be set up in windy states for supply of power to non-windy ones and
UTs. PTC is the trading partner responsible for purchase and sale of wind power under the programme. The
government successfully completed the first ever auction of wind power and associated infrastructure for
1,000 mw in the last week of Feb with a provision to increase in up to 1,050 mw. The bidders were selected
and the Letter of Award was given to successful bidders. The PTC India has successfully tied up entire power
with the above discoms, it said.
'Slurp' being a milk based mango drink has edge over competition: Parag Milk (Rs.240, +1%)
Parag Milk Foods had expanded its product range to enter beverage category. The company introduced
'Slurp', a mango drink with a dash of milk. Being a milk based mango drink it has an edge over competition,
said Bharat Kedia, CFO, Parag Milk Foods in an interview to media. He said they entered this space because
they were not present there, and moreover, competition in milk based mango beverages was low. The
200ml pack of Slurp is charged at Rs.20. The pricing of the product is at a premium because it is a value
based drink, said Kedia, and because pricing has its relevance to value. Consumers are appreciating the
product, he added. The company in the last one year started focusing higher on beverages, he said, adding
that any product that has milk content or is a dairy based has the potential to flourish in India. According to
him, mango beverage market size is over Rs.6000 crore. Meanwhile, he said the production of the new
beverage will be done from their existing facility in southern India.
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Shankara Building Q4 profit rises 11% on stable topline, operational growth (Rs.705, +1%)
Shankara Building Products announced its quarterly earnings for the first time after its listing on exchanges
in Apr 2017. Consolidated profit for Jan-Mar quarter grew by 10.9% to Rs.19 crore compared with year-ago
period, driven by stable topline and operational growth. Revenue on consolidated basis increased 5.2% to
Rs.600.4 crore compared with Rs.570.8 crore in same quarter last fiscal, led by growth in its both segments
retail and channel & enterprise. Operating profit during the quarter grew by 10.1% year-on-year to Rs.45.6
crore and margin expanded by 30 basis points to 7.6% in the quarter ended Mar 2017. For the financial year
2016-17, profit jumped 14.8% to Rs.60.27 crore and total income from operations rose 13.4% to Rs.2,310.4
crore compared with previous year. Bangalore headquartered Shankara Building Products is a retailer of
home improvement and building products including structural steel, cement, TMT bars, hollow blocks,
pipes and tubes, roofing solutions, welding accessories, primers, solar heaters, plumbing, tiles, sanitary
ware, water tanks, plywood, kitchen sinks, lighting and other allied products.
Eicher Motors’ (#) March quarter net profit jumps 33% to Rs.459 cr, announces dividend of Rs.100
(Rs.25837, 0%)
Royal Enfield maker Eicher Motors reported a 33.9% jump in its consolidated net profit at Rs.459.4 crore
against Rs.343.1 crore during the same period last year. The company’s consolidated total income rose
23.3% at Rs.2,132.5 crore against Rs.1,729 crore during the corresponding quarter. "Royal Enfield has
performed exceedingly well in the fourth quarter achieving record sales and profits. The Himalayan has
been well received in India and with it we are creating a full new segment in the country," its CEO,
Siddhartha Lal said in a statement. Meanwhile, the consolidated earnings before interest, taxes,
depreciation and amortisation (EBITDA) increased 30.8% to Rs.584.7 crore from Rs.446.9 crore YoY. The
channel’s poll pegged EBITDA at Rs.613 crore. The EBITDA margin came in at 31% against 29.2% year-on-
year. The company announced a dividend of Rs.100 per share. In Apr 2017, Royal Enfield opened a direct
distribution subsidiary in Brazil, as well as our first exclusive store in Sao Paulo. With this, Royal Enfield now
has 25 exclusive stores in its international markets.
BSE Q4 net profit surges 3-fold to Rs.73 cr
Leading stock exchange BSE reported more than three-fold jump in consolidated net profit to Rs.72.66
crore for the fourth quarter ended Mar 31, 2017. In comparison, the bourse had a net profit of Rs.20.24
crore in the Jan-Mar quarter of the previous fiscal, 2015-16, BSE said in a filing to the NSE. Besides, total
income of the exchange rose to Rs.231.13 crore during the fourth quarter of 2016-17 from Rs.190.31 crore
in the year-ago period. The robust earnings can be attributed to increase in securities services and lower
regulatory cost, a BSE spokesperson said. For the fiscal year ended Mar 31, 2017, BSE has a net profit of
Rs.265.09 crore as compared to Rs.177.13 crore in 2015-16. BSE's total income surged to Rs.800.75 crore in
the just concluded financial year (2016-17) from Rs.670.09 crore in the preceding fiscal. The exchange's
group firms include CDSL, Indian Clearing Corporation, BSE Institute, BSE Investments and BSE Sammaan.
On a standalone basis, BSE's net profit grew to Rs.41.41 crore in the quarter under review from Rs.4.01
crore in Jan-Mar quarter of 2015-16. Further, total income increased to Rs.147.36 crore in three months
ended Mar 31, 2017 from Rs.138.10 crore in the year-ago period. Earlier in Feb, BSE -- formerly known as
Bombay Stock Exchange-- got listed on the rival NSE. The issue, which was also the first share sale by a
domestic stock exchange, was open to bidding on Jan 23-25. The IPO saw robust investor demand and was
oversubscribed 51.22 times. The bourse is the world's largest exchange by number of listed companies.
Shares of nearly 3,000 companies trade on BSE.
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HPCL, Mittal ready $3 bn to set up Bhatinda petchem unit (Rs.525, -1%)
State-owned Hindustan Petroleum Corporation Ltd (HPCL) and its partner Lakshmi N Mittal will invest about
USD 3 bn in setting up a petrochemical complex at their Bhatinda refinery in Punjab. HPCL-Mittal Energy Ltd
(HMEL), a joint venture between HPCL and Mittal Energy Investments Pvt Ltd, Singapore, plans to set up an
up to 1.7-mn tonne naphtha cracker unit to produce basic raw material that goes into making of plastics. "It
will be a 1.2-mn tonne plant, expandable to 1.7 mt," HPCL Chairman and Managing Director M K Surana
said here. Though setting up a petrochemical plant takes up to four years, HMEL plans to fast-track the
process to build it in lesser time. "We have land and other infrastructure at the Bhatinda refinery," he said,
adding that the project will be formally announced shortly after investment approvals. He said the USD 350
mn expansion of Bhatinda refinery capacity to 11.25 mt per annum from the current 9 mt will be completed
next month. The refinery has taken its first 45-day maintenance shutdown to complete hooking up of the
new units, he said, adding that additional volumes will cater to growth in demand in northern India. This
will be HPCL's first petrochemical plant in Northern India. The company has refineries in Mumbai and
Visakhapatnam. HPCL and steel baron Mittal are equal partners in the Bhatinda refinery in Punjab. HPCL
and Mittal Investment Sarl hold 48.94% stake each in HMEL while the balance is with financial institutions.
HMEL had also plans to expand Bhatinda refinery capacity further to 10 mt, but Surana did not speak on the
same. HPCL is investing Rs.45,000 crore by 2020 for expansion of its Mumbai and Visakhapatnam refineries
as well as augmenting its marketing infrastructure. It is investing Rs.4,199 crore in expanding its Mumbai
refinery capacity to 9.5 mt per annum from the current 6.5 mmtpa. It is lining up another Rs.17,000 crore in
expanding Visakhaptnam refinery capacity to 15 mmtpa, from 8.3 mtpa currently. The investments will also
help the company produce "products confirming to Euro VI" emission specification, he said.
Norway wealth fund excludes BHEL due to environment rules (Rs.173, -1%)
Norway's wealth fund has excluded Bharat Heavy Electricals from its investment portfolio because of
concerns over the environmental impact of a plant the Indian company is building, the Norwegian central
bank said on Fri. The USD 935-bn Norwegian fund, the world's largest, is not allowed to invest in companies
that breach certain ethical guidelines set by the Norwegian Parliament. These include producing nuclear
weapons, tobacco or anti-personnel landmines. BHEL, an engineering and manufacturing company that is
majority-owned by the government of India, did not reply to requests for comment. It's stock was excluded
from the Norwegian fund's portfolio because of "the risk of severe environmental damage" resulting from
the building of a coal-fired power plant close to the Sundarbans, the world's largest mangrove forest, in
Bangladesh, the fund's ethics watchdog said in a statement. This is an area with "universally unique
environmental qualities" the Council on Ethics said, adding that "there is an unacceptable risk of the
company contributing to or being responsible for severe environmental damage". The Council on Ethics
makes recommendations to the board of the central bank, which then decides whether to follow them
through and instructs the fund's management to take action. The fund is managed by a unit of the central
bank. The watchdog said that BHEL "did not reply to the Council's inquiries initially, but has later submitted
comments to a draft recommendation, stating that there is no need to dredge the waterways" through
which ships will access the plant. The fund has sold all its holdings in BHEL, which it did ahead of the
publication of the decision. The fund did so gradually so as not to alert market participants.
TCS (#) sets up research lab for drones in US (Rs.2320, 0%)
India's largest IT services firm TCS has established its first research lab for drones in the US to address the
rapidly expanding demand for these unmanned aerial vehicles and business solutions. The lab -- which has
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been set up in its Ohio campus -- will focus on experimentation and co-innovation for customers to build
solutions for specific industry problems, Tata Consultancy Services (TCS) said in a statement. "Forward
thinking companies worldwide are at different stages of exploring drone technology to reimagine existing
operational processes and transform the way they do business," TCS EVP and Chief Technology Officer K
Ananth Krishnan said. He added that the fully operational lab is demonstrating solutions for insurance,
manufacturing, logistics, and transportation industries, as well as specific environmental applications. The
Seven Hills Park facility was established in 2008 as TCS' largest and first North American digital centre for
advanced technologies. The campus has over 1,000 employees.
Orient Cement Q4 net profit declines 10.5% to Rs.16.52 cr (Rs.160, -3%)
CK Birla Group firm Orient Cement reported a 10.55% decline in net profit to Rs.16.52 crore for the fourth
quarter ended Mar 2017, impacted by the full extent of finance costs and depreciation. It had reported a
net profit of Rs.18.47 crore in the Jan-Mar period a year-ago, Orient Cement said in a BSE filing. Orient
Cement's total income was up 36.98% to Rs.695.70 crore during the quarter under review as against
Rs.507.88 crore in the corresponding quarter of last fiscal. "The company has reported volume growth of
25% over the corresponding quarter last year on account of increasing volumes across all its areas of
operation," the company said in a statement. It further said that its profit was "impacted by the full extent
of finance costs and depreciation booked during the year on the Chittapur plant." Its total expenses saw a
rise of 36.68% at Rs.680.88 crore as against Rs.498.14 crore in the year-ago quarter. Commenting on the
results, Orient Cement MD and CEO Deepak Khetrapal said: "The quarter ended Mar 31 has seen a very
good pick up in volumes across our core areas, especially AP and Telangana, which is reflected in our
utilisation levels this quarter, for the company's expanded capacity, rising to 87%." For the year ended Mar
31, 2017, Orient Cement reported a net loss of Rs.32.09 crore. It had a net profit of Rs.62.36 crore in 2015-
16. However, Orient Cement's net sales for the fiscal were up 28.50% to Rs.2,183.55 crore as against
Rs.1,699.18 crore in 2015-16. Meanwhile, in a separate filing Orient Cement informed BSE that its board in
a meeting held "recommended final dividend of Rs.0.50 per equity share (50% of the face value)."
Hope to achieve 10% bottomline growth in FY18; SKY to do well: Firstsource Solutions (Rs.40, -5%)
Firstsource Solutions Ltd announced a consolidated net profit of Rs.65.36 crore for the fourth quarter
ending Mar 2017, down 15.7% over that in the corresponding period last year due to forex losses. Sanjiv
Goenka, Chairman, Firstsource commenting on the fourth quarter performance said they saw an impact of
Rs.35 crore on account of currency. However, going forward the first quarter could be muted but from the
second quarter onwards things could be buoyant. The first quarter will be largely similar to Q4FY17, said
Goenka. Q1FY18 revenues could be between Rs.900-920 crore, he added. However, despite all the currency
uncertainties etc, the bottomline growth for FY18 would be around 10%, he said. The company in Feb
signed a 10-year contract with Sky Subscriber Services Ltd of UK. With this deal, UK has become an
important market for the company. Goenka said business from SKY could go up because of Brexit.
Procter and Gamble (#) Q3 net profit rises 2.6% to Rs.99.63 cr (Rs.737, 0%)
FMCG firm Procter and Gamble Hygiene and Health Care (P&G) reported a 2.64% rise in net profit to
Rs.99.63 crore for the third quarter ended Mar 31, 2017. It had posted a net profit of Rs.97.06 crore in the
Jan-Mar quarter a year ago, it said in a BSE filing. The company's net sales during the quarter under review
rose 7% to Rs.624.28 crore from Rs.583.40 crore in the year-ago period, it added. The company follows Jul
to Jun fiscal year. Its overall expenses during the quarter also increased to Rs.462.90 crore from Rs.439.52
crore in the corresponding quarter of previous fiscal.
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Transformers and Rectifiers Q4 net profit at Rs.0.29 cr (Rs.413, -2%)
Transformers and Rectifiers reported a 97% drop in its standalone net profit at Rs.0.29 crore in the quarter
ended Mar 31, 2017. The company had posted a net profit of Rs.10.74 crore in the year-ago quarter,
Transformers and Rectifiers said in a BSE filing. Its total income during the fourth quarter fell to Rs.191.96
crore from Rs.249.70 crore in the year ago period. In 2016-17, the firm's standalone net profit was at
Rs.13.03 crore as against a loss of Rs.8.53 crore in the previous financial year. Total income of the company
rose to Rs.808.92 crore from Rs.581.41 crore in the preceding fiscal. The order book of 30,235 MVA valued
Rs.962 core as on Apr 30, 2017, it said. The company also said its board approved an investment of Rs.17.02
lakh in Jingkeparth Electrical Equipments Private Ltd towards 60% stake in Joint Venture with Jiangsu Jingke
Smart Electrical Co Ltd China.
Shoppers Stop Q4 net loss at Rs.36.06 cr (Rs.276, +1%)
Retail chain Shoppers Stop reported a net loss of Rs.36.06 crore on standalone basis for the quarter ended
Mar 31, due to one-time provision for investment impairment considered for its subsidiary Hypercity. The
company had posted a net profit of Rs.10.05 crore in Jan-Mar quarter a year ago, Shoppers Stop said in a
BSE filing. However, its total income was up 2.96% at Rs.916.05 crore during the quarter under review as
against Rs.889.70 crore in the corresponding period of the last fiscal. Shoppers Stop total expenses were
also up 2.66% at Rs.895.70 crore as against Rs.872.48 crore in the year period. According to the company:
"The accumulated losses of Hypercity Retail (India) Ltd, a subsidiary company, have substantially eroded its
networth." It further added: "One time provision for investment impairment considered for Hypercity Rs.36
crore and NGIPL Rs.11.8 crore in Q4 FY17." For the year ended Mar 31, 2017, Shoppers Stop's net loss on
consolidated basis widened to Rs.78.37 crore. It had a net loss of Rs.40.28 crore in 2015-16. However,
Shoppers Stop's net sales for the fiscal was up 10.70% to Rs.4,935.20 crore as against Rs.4,457.95 crore in
2015-16. Shoppers Stop MD Govind Shrikhande said: "This year has been disruptive on several fronts, as we
have seen a lot of changes in global politics and domestic economic policies such as demonetisation On the
back of these headwinds, FY'17 has seen a softer growth of 9%."
Sanofi India Q1 net profit dips 27% at Rs.60 cr (Rs.4181, -1%)
Drug firm Sanofi India reported a 27.36% dip in standalone net profit to Rs.60 crore for the first quarter
ended Mar 31, 2017 on account of price reduction of drugs in the country and lower exports. The company
had posted a net profit of Rs.82.6 crore for the corresponding period of previous fiscal, Sanofi India said in a
BSE filing. Standalone total revenue from operations also declined to Rs.552.9 crore for the quarter under
consideration as against Rs.556.5 crore in 2015-16. The company follows Jan-Dec financial year. "Lower
export volumes and rupee appreciation versus euro had an adverse impact on sales and profitability for the
quarter ended Mar 31, 2017," Sanofi India said. The profit for the quarter ended Mar 31, 2017 as compared
to the same quarter of the previous fiscal has also been impacted due to price reduction following the
fixation of the ceiling prices under Drug Prices Control Order (DPCO) 2013, it added.
Monsanto India Q4 net profit up 25% at Rs.30.11 cr (Rs.2575, 0%)
Biotech major Monsanto India Ltd reported 25% increase in net profit at Rs.30.11 crore for the fourth
quarter ended Mar 31, 2017. Its net profit stood at Rs.24.08 crore in the year-ago period, the company said
in a regulatory filing. Total revenue rose to Rs.144.92 crore in the quarter under review from Rs.93.21 crore
in the corresponding period of the previous year. During the last fiscal, the company's net profit stood at
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Rs.147.53 crore as against Rs.101.25 crore in the 2015-16 fiscal. Total revenue rose to Rs.654.16 crore in the
2016-17 fiscal from Rs.555.75 crore in the previous year.
Apollo Tyres Q4 PAT down 16% at Rs.228.23 cr (Rs.245, +1%)
Apollo Tyres reported 16.1% decline in consolidated profit after tax at Rs.228.23 crore for the fourth
quarter ended Mar 31, 2017 hit by rise in raw material costs. The company had posted a consolidated profit
after tax of Rs.272.05 crore in the same period of previous fiscal, Apollo Tyres said in a BSE filing. Total
revenue during the quarter under review stood at Rs.3,639.39 crore as compared to Rs.3,268.84 crore in
the year- ago period, a growth of 11.33%. Cost of raw material consumed zoomed by 29% during the
quarter at Rs.1,739.22 crore as compared to Rs.1,347.23 crore in the year-ago period. The company said its
total expenses during the quarter were at Rs.3,380.86 crore as against Rs.2,917.49 crore in the same period
of previous fiscal, a jump of 15.88%. For the fiscal ended Mar 31, 2017, profit after tax was at Rs.1,098.99
crore as against Rs.1,122.96 crore, down 2.13%. Apollo Tyres said its total revenue for 2016-17 was at
Rs.14,324.08 crore as against Rs.12,919.51 crore, a growth of 10.87%. The board of directors of the
company have recommended a dividend payment at Rs.3 per equity share of face value Re.1 each.
Commenting on the results, Apollo Tyres Chairman Onkar S Kanwar said despite challenges in the last fiscal,
all the key operations of the company have done well. "Raw material prices, which have increased sharply
quarter-on-quarter, continue to pose challenges for us, and have impacted our margins," he said. Kanwar
further said truck radial segment grew in India in the fourth quarter but it has been impacted by dumping of
low cost tyres, especially from China, through the year. "There has been a healthy volume growth in the
passenger vehicle segment across geographies in the past fiscal," he added. On the outlook, he said the
company is looking forward to a good volume growth in the current fiscal on the back of tyres rolling out
the new Hungarian plant and also from the expanded truck-bus radial facility in Chennai. The company is
also eyeing a gradual increase in market share in Europe over the next few years, he added.
Oberoi Realty (#) hits 1-year high on strong Q4 numbers (Rs.403, +2%)
Share price of Oberoi Realty rises on the back robust Q4 numbers. The company's Q4 (Jan-Mar) net profit
was up 50.4% at Rs.101.8 crore versus Rs.67.7 crore, in the same quarter last year. Total income of the
company rose 25.9% at Rs.289.6 crore versus Rs.230.1 crore. Operating profit (EBITDA) increased 41.7% at
Rs.151.5 crore and EBITDA margin rose 580 bps at 52.31%. The board of director of the company has
approved raising of capital upto Rs.750 crore via issue of equity shares and raising Rs.1500 crore via issue of
non-convertible debentures (NCDs). The board has recommended dividend of Rs.2 per share (20%) for the
financial year 2016-17. The payment of dividend is subject to approval of the shareholders in the ensuing
annual general meeting of the company.
Rural markets seeing recovery; volume growth to improve in FY18: Emami (#)(Rs.1085, -2%)
Emami posted a weak set of fourth quarter earnings as consolidated revenue de-grew and international
business disappointed with a decline in revenue. Throwing more light on the quarter’s performance and the
outlook going forward NH Bhansali, CEO, Finance, Strategy & Business Development and CFO, Emami Group
said the de-growth in international business was by more than 30% because of corrected inventories and
lower demand in countries like Russia and Middle-East. The company reported a marginal increase in
consolidated net profit at Rs.83.32 crore for the fourth quarter ended Mar 31, 2017.The Company had
posted a consolidated net profit of Rs.82.11 crore during the same period of last fiscal, Emami said in a
regulatory filing. The net sales stood at Rs.577.58 crore during the quarter under review, down 4.14% as
compared to Rs.602.53 crore in the last fiscal. In an interview to media, he said the volume growth for
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domestic was around 3.1% for the quarter and expects good monsoon and GST rollout to aid growth going
forward. The volume growth for FY18 would improve, he added. He is also not too worried about
competition from Patanjali impacting them, infact, he thinks it will help grow the overall industry. The
increased competition will be good for customers and would benefit all, he added. According to him, rural
market is showing signs of green shoots but said the trade channel distributions were not yet back to the
pre-demonetisation levels. The company has increased market share across the board, said Bhansali.
Tata Communications Q4 loss at Rs.209 crore (Rs.641, -9%)
Tata Communications reported a loss of Rs.209 crore for the fourth quarter ended Mar 31, 2017. The gross
revenue for the same quarter stood at Rs.4,300 crore. "During the current quarter, based on the High Court
order dated Apr 28, 2017, the company has made a provision of Rs.872 crore towards the contractual
obligation under...agreement as the difference between the fair market value of the shares to be acquired
and the advance paid to Tata Sons for shares of Tata Teleservices," the company said in a statement. The
quarterly revenue and EBITDA growth were hit by the exclusion of the India and Singapore data centre
revenue, demonetisation impact and one-off expenses due to cable repair, employee-related expenses and
legal and professional fee. The consolidated net profit for the full year ended Mar 31, 2017 stood at Rs.1233
crore. Commenting on the results, Vinod Kumar, MD and CEO of Tata Communications, said the market
demand for the company's services remains strong and it continues to increase wallet share with large
global enterprises. The conclusion of the Data Center and Neotel deals makes the company stronger and
more agile, and will help drive transformation from a traditional telco to a next-generation digital
enablement provider, he added. During financial year 2016-17, Tata Communications divested its data
centre operations and sold off its South Africa-based telecom arm, Neotel to Liquid Telecom. The company
said none of the figures are comparable.
JP Associates fails to pay interest on NCDs (Rs.12, -4%)
The cash-strapped infrastructure firm Jaiprakash Associates has failed to pay interest on non- convertible
debentures even after more than three months of the due date. "... the interest instalment in respect of
12.4% non-convertible debentures... remains unpaid for more than three months as on May 4, 2017," the
company said in a BSE filing. The Jaypee group has been selling off its assets to lighten its debt load. Last
year, it announced sale of its cement plants with a total capacity of 21.1 mn tonnes per annum (mtpa) at an
enterprise value of Rs.16,189 crore to the Aditya Birla Group firm UltraTech Cement. Jaiprakash Associates
had said it had got the approval of the National Company Law Tribunal (NCLT) for the transfer. The deal will
help the Jaypee Group firm to cut down debt, which runs into thousands of crores of rupees.
Jubilant Life gains, to acquire radiopharmacy biz of Triad Isotopes (Rs.760, +3%)
Shares of Jubilant Life Sciences gained as it is going to acquire the radiopharmacy business of Triad
Isotopes. "Jubilant Pharma, a material wholly owned subsidiary of Jubilant Life Sciences, through one of its
wholly owned subsidiaries, has signed an asset purchase agreement with Triad Isotopes Inc. and its parent,
Isotope Holdings, Inc. to acquire substantially all of the assets which comprise the radiopharmacy business
of Triad," as per company release. "The closing of the transaction is subject to customary closing conditions,
including contract, regulatory and other approvals. The sais acquisition will be funded through Jubilant
Pharma’s internal accruals," it added. The acquisition will facilitate Jubilant forward integrate in the
radiopharmaceutical business, thereby helping it better directly serve healthcare providers and their
patients with high quality radiopharmaceutical products. Triad recorded revenues in excess of USD 225 mn
in CY2016 with positive EBITDA and operates the second largest radiopharmacy network in the US.
9
Will focus on NIMs plus fee income: L&T Finance Holdings (#)(Rs.133, -3%)
L&T Finance Holdings posted a good set of earnings in Q4 with strong growth as disbursement were up 50%
on a sequential basis. In an interview to media, Dinanath Dubhashi, MD and CEO of the company spoke
about the results and his outlook for the company. “We realise that even we are very competitive in cost of
funds etc, net interest margins (NIMs) will always be a losing battle vis-à-vis banks, hence where we need to
make money is NIMs plus fees”, he said.
NIIT Tech Q4 net up 23% to Rs.100.3 cr (Rs.471, -1%)
IT firm NIIT Technologies reported a consolidated net profit of Rs.100.3 crore for the fourth quarter ended
Mar 31, 2017, up almost 23% compared to the year-ago period. The growth came on the back of a one-time
settlement from a government contract as well as strong momentum in the banking and financial services
and Geographic Information Systems (GIS) businesses. The net profit for the same period in the previous
year stood at Rs.81.6 crore, as per the Indian Accounting Standards. During the quarter under review, NIIT
Tech received part payment against settlement of a government contract that had been put on hold. This,
in turn, resulted in revenue recognition of Rs.27.1 crore for services contracted, and also reversed
provisions of Rs.13.15 crore provided in the first quarter of FY17, the company explained. "Revenues
excluding the settlement impact reflects a reported sequential growth of 3.4% during the quarter with
operating margins expanding 82 bps to 17.6%," the company added. Consolidated revenue rose 8.5% to
Rs.744.7 crore during the Jan-Mar quarter of 2016-17. Arvind Thakur, CEO and Joint MD, NIIT Technologies
Ltd told PTI that the company expects 2017-18 to be better than the year just ended, both in terms of
profitability as well as revenue. "The order book includes USD 112 mn of fresh business this quarter. The
orders executable over the next 12 months stands at USD 320 mn," Thakur said. The operating margin -- a
measure of profitability -- expanded to 20.5% from 17.9%. For the full year ended Mar 2017, the
consolidated net profit slid 7.4% to Rs.250 crore, Thakur said. But the revenue was up 4.2% to Rs.2,802
crore for FY17. "Revenues in Travel and Transportation segment declined one% sequentially reflecting
currency impact on large engagements in Europe, Middle East and Africa (EMEA region) and now
represents 31% of the revenue mix," the company statement said. Its headcount at the end of the quarter
stood at 8,853 and attrition was 12.7% for the year.
10
Information Of Bulk Deals – 5th May 2017 On BSE
Scrip Name Name Of Client BUY (B) / SELL (S)
Quantity Shares
Trade Price/ W Avg. Price
Arcfin Ethan Constructions Private Limited B 2,80,000 13.01
Arcfin Veenit Builders Private Limited S 4,78,001 13.02
Arcfin Venkateshwara Industrial Promotion Co Limited S 3,50,000 13
Architorg Shree Mallikarjun Trad Invest Private Limited B 50,000 66.25
Architorg Shweta Samirbhai Shah S 97,123 66.25
Architorg Vishwamurte Trad Invest Pe Ltd B 50,000 66.25
Bnrsec Savita Arya . S 36,541 29.03
Dbcorp Amansa Holdings Private Limited S 37,72,562 350.07
Dbcorp Icici Prudential Life Insurance Company Limited B 33,23,619 350
Delta Shyamal Sardar B 65,000 19.8
Majesaut Anil Kumar Goel B 69,374 101.2
Majesaut Sanjay Devkinandan Gupta S 70,000 101.21
Mnil Shree Bhuvanakaram Tradinvest Pvt Ltd B 70,000 99.69
Mnil Ska Securities And Financial Services Pvt Ltd . S 40,000 100.95
Octaware Aryaman Broking Limited B 56,000 90.33
Octaware Jhaveri Trading And Investment Pvt Ltd S 40,000 90.25
Octaware Manlike Chemical And Pharmacheutical Co Pvt Ltd B 35,200 91.1
Octaware Vicky Rajesh Jhaveri S 20,800 91.13
Pritikauto Ashok Ghanchand Vohra ( Huf ) S 1,00,000 56.18
Profinc Ambe Securities Private Limited S 69,000 202.18
Profinc Arvind Shantilal Shah B 30,000 201.53
Sadbhin Amansa Investments Limited S 132,25,812 104.5
Sadbhin Nomura Ast Mgmt Singa Ltd Astro Trst Sers Trcrat B 132,25,812 104.5
Shreeram Citigroup Global Markets Mauritius Private Limited S 3,75,000 63.53
Symbiox Ethan Constructions Private Limited S 1,92,810 17.55
Symbiox Venera Property Private Limited S 2,64,672 17.31
Vikaseco Harsha Goyal S 15,00,000 23.5
Vikaseco New Leaina Investments Limited B 20,00,000 23.56
Virtualg Pragish Textiles Private Limited B 25,80,000 5.61
Information Of Bulk Deals – 5th May 2017 On NSE
Scrip name Name of Client BUY (B) / SELL (S)
Quantity Shares
Trade Price/ W Avg. Price
Cupid Limited Elara India Opportunities Fund Limited S 107236 317
Cupid Limited Wasatch Advisors Inc. B 121003 319.98
Kopran Ltd. Jugalkishore Mohanlal Maheshwari B 219164 86.87
R. S. Software (I) Ltd. Athlan Partners S 162245 82.77
Stampede Capital Ltd Pragish Textiles Private Limited B 1500000 21.55
The Byke Hospitality Ltd Alken Management And Financial Services Limited S 377489 210
The Byke Hospitality Ltd Modern Trading Business Private Limited S 402000 210
11
The Byke Hospitality Ltd Wasatch Advisors Inc. B 986416 210
Time Technoplast Limited American Funds Insurance Series- Amrcn Funds Ins S 1990240 122.92
Weizmann Forex Limited Meghna Pratik Doshi S 150000 495
Weizmann Forex Limited Param Value Investments B 200000 495
12
Disclosures Under SEBI (Prohibition Of Insider Trading) Regulations, 2015
Company Name Name of Acquirer / Seller Securities Held pre Transaction
Securities Acquired / Disposed Number Value Transaction Type
Securities held post Transaction
Period
Upsurge Investment & Finance Lt Dayakrishna Goyal 850000 (5.61) 73,500 1049174 Acquisition 923500 (6.09) 03/05/2017 Mark
et
Mep Infrastructure Developers Lt Anuya J. Mhaiskar 9869300 (6.07) 2,952 203469.48 Acquisition 9872252 (6.07) 05/05/2017 Mark
et
13
Rating Scale This is a guide to the rating system used by our Institutional Research Team. Our rating system comprises of six rating categories, with a corresponding risk rating.
Risk Rating Risk Description Predictability of Earnings / Dividends; Price Volatility
Low Risk High predictability/ Low volatility
Medium Risk Moderate predictability / volatility
High Risk Low predictability/ High volatility
Total Expected Return Matrix Rating Low Risk Medium Risk High Risk
Buy Over 15 % Over 20% Over 25%
Accumulate 10 % to 15 % 15% to 20% 20% to 25%
Hold 0% to 10 % 0% to 15% 0% to 20%
Sell Negative Returns Negative Returns Negative Returns
Neutral Not Applicable Not Applicable Not Applicable
Not Rated Not Applicable Not Applicable Not Applicable
Please Note
Recommendations with “Neutral” Rating imply reversal of our earlier opinion (i.e. Book Profits / Losses).
** Indicates that the stock is illiquid With a view to combat the higher acquisition cost for illiquid stocks; we have enhanced our return criteria for such stocks by five percentage points.
“Desk Research Call” is based on the publicly available information on the companies we find interesting and are quoting at attractive valuations. While we do not claim that we have compiled information based on our meeting with the management, we have taken enough care to ensure that the content of the report is reliable. Although we have christened the report as “Desk Research Calls” (DRC), we intend to release regular updates on the company as is done in our other rated calls.
For any information or suggestion, please contact the below mentioned…
Nishita Shah (nishita.sshah@sushilfinance.com)
Sushil Financial Services Private Limited Member BSE: SEBI Regn.No. INB/F010982338 | Member NSE: SEBI Regn.No.INB/F230607435.
Office: 12, Homji Street, Fort, Mumbai 400 001. Phone +91 22 4093 6000 Fax +91 22 2266 5758
“Research Analyst – SEBI Registration No. INH000000867”
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