Nestle, J & K Bank, Oil & Gas, Economy:: Kotak reports from 19 Sep :: Kotak Sec, PDF report link

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Company
Nestle India: RM/pricing tailwinds drive EPS upgrades; valuations stretched
` Multiple tailwinds drive upgrades to our EPS estimates
` However, core concerns remain; retain SELL with revised target price of
Rs5,300
` We note we have baked in a robust volume/earnings recovery over
CY2014-16E


J&K Bank: Floods send fresh pangs of pain
` 50% of the loan book within the state of J&K is probably at risk
` Guidelines from RBI indicate a sharp rise in restructured loans
` An overhang that is likely to extend beyond a year; NPLs could rise
moderately in the short term
` Maintain REDUCE as the concerns continue to increase

Sector
Energy: BPCL>IOCL>HPCL
` Sharp increase in normalized net debt of HPCL and IOCL; modest increase
for BPCL
` BPCL's operating cash flows fund capex, leading to enhancement of core
business
` Increase in net debt for IOCL is associated with significant capex in
greenfield projects
` HPCL's rising net debt has not resulted in much improvement in core
business metrics
` BPCL remains our preferred pick among OMCs


Economy
Economy: Notes from Delhi: strong government commitment
` Activity level is palpable
` Focus on urban development
` Stable macro picture, numbers can take some time to deliver
` Government committed to reforming the capital market



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LINK
http://www.kotaksecurities.com/pdf/indiadaily/indiadaily19092014oh.pdf