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Manappuram General Finance and Leasing (MAGFIL) Q2FY11 result estimates
We expect MAGFIL to report a robust 216% yoy growth in NII driven by healthy growth in balance sheet aided by significant addition to the branch network. Key things to watch out – expansion of the branch network and movement in the NPAs.
Rallis India Q2FY11 Results – Inline with estimates - First Cut
Rallis India’s Q2FY11 results were broadly inline with estimates. Although revenues at Rs 3.7 bn were a tad below estimates, the company’s margins remained intact. Revenues for Q2FY11 grew by 15% yoy versus the estimated 25% growth to Rs 3.7 bn and were below our estimates of Rs 4.0 bn. Despite lower topline, EBITDA margins expanded by 80 bps to 24% and were ahead of our estimates by 100 bps. APAT for the quarter at Rs 587 mn, +23% yoy was broadly inline with estimates of Rs 626 mn. The company reported EPS of Rs 30.2 for Q2FY11 versus Rs 23.6 last year.
For H1FY11 the company has reported revenues of Rs 5.7 bn (+17% yoy), EBITDA of Rs 1.1 bn (18% yoy) and APAT of Rs 736 mn (+24% yoy). AEPS for H1FY11 stands at Rs 37.8 versus Rs 28.5 in Q2FY10.
We maintain our FY11 and FY12 estimates and our positive bias on the stock and re-iterate BUY recommendation
Axis Bank Q2FY11 Result Update; Earnings growth healthy; Slippage remains high; REDUCE; Target Price: Rs1,200
n Axis Bank’s (AXSB) Q2FY11 NII at Rs16.2bn marginally ahead of expectations driven by 36% growth in advances and 18bps expansion in NIMs
n Higher growth in NII was partially offset by lower trading gains and higher operating expenditure
n Slippages continue to remain high resulting in higher credit costs. Slippages for Q2FY11 at 1.7% vis-à-vis 1.5% in FY10 and 1.6% in Q1FY11
n Valuations unattractive at 3.0x FY12E ABV with slippages remaining high. Continue REDUCE rating with TP of Rs1,200
LIC Housing Finance Q2FY11 Result Update; Structurally strong story continues; ACCUMULATE; Target: Rs 1,490
n LICHF reported strong 63% growth in NII at Rs3.1bn driven by 36% growth in advances and 35bps expansion in spreads. Stable spreads/NIMs are positive surprise
n The growth in sanctions to individuals remained strong at 28% yoy, although the D/S ratio was lower at 67% due to as LICHF funded mostly under construction properties
n The asset profile improved as the gross NPAs were down by 22% yoy and net NPAs were down 54% yoy. The gross and net NPAs stood at 0.7% and 0.1% respectively
n Valuations at 2.7x FY12E ABV look expensive in short term. However, strong balance sheet, earnings growth keep long term story intact. Maintain ACCUM with 18-mth TP of Rs1490
n Dealer Comments
The markets started the day’s session on a positive note with almost 160 odd point’s upward gap mirroring positive trend from the global markets. On the onset of the trading session markets managed to touch its 33 month high levels and hopes of probably closing even higher built in. Today good buying momentum was seen in Fertilizer space in anticipation of better than expected Q2 numbers with most of stocks edging higher like GSFC, GNFC, Chambal Fert, United Phosp, Coromandel Intl and RCF. Among the IT pack Infosys continued to see good buying action ahead of its unveiling of Q2 results tomorrow. Finally markets closed the day on negative note towards the end at almost day’s lows with Sensex losing 190 points or 0.92% lower to settle at 20497 levels while Nifty lost 57 points or 0.91% lower to settle at 6177 levels. The overall traded volumes were lower compared to the earlier day by almost 11% and were at Rs 1342 bn. While delivery based volumes were also marginally lower compared to the earlier day at 39.5% of the total traded turnover. Among the Fund activities FII’s were net buyers to the tune of Rs 22.49 bn while Domestic Funds were net sellers to the tune of Rs 3.52 bn respectively on 13th October 2010. While on 14th October 2010, FII’s bought shares worth Rs. 10.20 bn in cash segment (provisional) while in the F&O segment they were net buyers to the tune of Rs 4.04 bn whereas Domestic Funds sold shares worth Rs. 6.94 bn (provisional).
n Technical Comments
Minor dip – Good opportunity to buy
Equity benchmarks delayed the follow-up rally by erasing more than 50 points on Nifty on the back of profit booking in major sectors like infrastructure, financial, telecom and oil & gas. The sell-off was imminent because Nifty rallied near 200 points since yesterday. Technically, we feel that this was just a minor dip as Nifty is still trading above the support of key moving averages on hourly degree. So we still suggest buying on dips near the support levels mentioned below.
BSE Realty:
BSE Realty index after touching our mentioned target of 3950 is showing signs of weakness. After today’s move one should become cautious as the index failed to pierce the upper Bollinger band and also gave a key reversal bar, which is a sign of exhaustion. Moreover, there is a negative divergence between the daily price chart and the momentum indicator RSI - one more alert. However, trend reversal will take place only on the breach of 3800.
BSE Bankex:
After touching our mentioned target of 14550, BSE Bankex witnessed some selling pressure at higher levels. Also the daily MACD has turned bearish, which is a sign of alertness. However, till 14050 is not broken the trend remains bullish.
n Results Today
Dev.Credit Bank | Heidelberg Cem. | Infosys Tech. | Karnataka Bank | Manap.Gen.Fin. |
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