Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Gujarat Gas The sharp fall in spot LNG price to $14-15/mmBtu and lower cost of crude-linked LNG would make I-PNG competitive versus propane (price rallied by 24% since October 2022). This would shift 2-3mmcmd of gas demand from propane to I-PNG and drive strong volume recovery for Gujarat Gas (GGAS). We expect strong 28% gas sales volume CAGR over FY2023E-FY2025E on low base of FY2023E. GGAS has taken I-PNG price hike of Rs. 1.5/scm (as per media reports) to Rs. 47.5/scm despite the steep fall in spot LNG price, which indicates some pricing power for the company as propane price is likely to be at a premium to I-PNG in March 2023. Moreover, rising share of high-margin CNG volume bodes well for margin. Thus, we see upside risk to management’s EBITDA margin … [Read more...] about Buy Gujarat Gas; target of Rs 620: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Biocon Biocon registered strong operating performance in Q3, with revenue growing in strong double digits Revenue grew by 35% y-o-y to Rs. 2,941 crore, driven by strong 54% y-o-y growth in the biologics segment, 23% y-o-y growth in research services (Syngene), and 18.2% y-o-y growth in the generic segment. Consolidation of Viatris’ biosimilar business will add to the growth of Biocon Biosimilars in Q4FY2023; and going forward, it will immensely help in overall revenue growth and expansion in profitability. Outlook The stock is currently trading at reasonably attractive levels of 29.7x/16.9x its FY2024/FY2025E revised earnings. Hence, we maintain Buy with a revised PT of Rs. 266. For all recommendations report, click here Disclaimer: The views … [Read more...] about Buy Biocon; target of Rs 266: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Sanofi India Sanofi has reported soft numbers for Q4CY2022. Revenue declined by 2.3% y-o-y and PAT grew by strong 44.8%. This was due to a 635-bps YoY expansion in EBITDA margin to 24.8%, which was below streets’ expectation though. We believe the emphasis on leveraging the digital platform and divestment of the slow-moving business have led to OPM expansion. We expect a high single-digit PAT CAGR over the next three years. High-growth visibility from chronic, a strong and debt-free balance sheet, sturdy dividends, and healthy cash position are the key positives. The company has announced dividend of Rs. 377 (including second special dividend); for CY2022, it has declared Rs. 570 per share of dividend. Outlook We retain our Buy rating on Sanofi with a … [Read more...] about Buy Sanofi India; target of Rs 6200: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Federal Bank We attended Federal Bank (FB) Analyst Day, where in Bank discussed recent trends and its outlook, along with the key levers for RoA expansion. Credit cards, personal loans, MSME funding, CV/CE, gold loan and MFI loans would see significant scale up in next three years. Asset mix skewed towards these high yielding product segments is expected to support NIMs. Also, higher focus on retail assets will help improve fee income, further supporting incremental RoAs. Moreover, fee income traction is expected to improve led by new bancassurance partnerships, cross selling and co-lending. The bank is confident of ~10 bps improvement in ROA every year for next 3 years. Besides this, focus is on 3Ns- NNPA under check (maintain best-in-class asset quality); Net … [Read more...] about Buy Federal Bank; target of Rs 170: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Blue Star Further, increase in off-take from channel partners for the summer and improving demand for energy efficient models with smart features are encouraging signs. Performance will be aided by commencement of new AC manufacturing facility. Blue Star’s long-term growth would be driven by favourable demand, market share gains, backward integration and deepening of penetration (launch of affordable mass premium products) and expansion of distribution network through conventional and e-commerce channels. It will be further aided by healthy execution in the project business. The company has low debt, low working capital cycle and healthy operating cash flows. We expect Revenue/PAT CAGR of 19%/34% over FY23-25E. At CMP, the stock trades at ~29xFY25E EPS. … [Read more...] about Buy Blue Star; target of Rs 1655: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Mahindra and Mahindra Financial Services M&M Financial Services Limited (MMFSL) reported healthy disbursement numbers for February 2023, up 53% y-o-y/5% m-o-m at Rs. 4,185 crore, driven by strong credit demand trends. Disbursements growth is expected to moderate going forward due to a higher base in the trailing 12 months; however, there are no demand concerns. Loan book grew by 1.5% m-o-m. Collection efficiency remained broadly stable y-o-y as well as m-o-m at 97%. Gross stage-2 assets saw a sequential improvement m-o-m, while gross stage-3 assets remained stable m-o-m. Outlook At the CMP, the stock trades at 1.7x/1.4x its FY2024E/FY2025E ABV, respectively. We reiterate Buy with an unchanged PT of Rs. 290. For all recommendations report, click … [Read more...] about Buy Mahindra and Mahindra Financial Services; target of Rs 290: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Tech Mahindra Tech Mahindra stated that although it was seeing some pause in decision-making by clients due to the ongoing near-term global macroeconomic challenges, demand for business transformation projects among enterprise customers is expected to continue. The company expects EBIT margins to improve in FY24 (hit in FY23 by M&A, large deals and wage hikes) driven by operational efficiency, large deals and business & geo-mix changes. However, the company expects to reach FY22 EBIT margin levels only by FY26. The company identified Products & Platforms and Co-creation with customers as new business streams that would witness higher investments and expects 2x revenues in the next 2-3 years. The management reflected a stable to healthy outlook on all … [Read more...] about Buy Tech Mahindra; target of Rs 1220: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Grasim Industries Grasim is expected to benefit from stabilizing VSF prices in Q4FY2023 to date post sharp q-o-q correction seen during Q3FY2023 while it continues to focus on leveraging LIVA brand. Caustics soda prices witness q-o-q correction in Q4FY2023 till date post sharp uptick seen in Q3FY2023. Focus to remain on chlorine integration and capacity expansions to improve ECU realisations. It remains to track to set up six units in paints by Q4FY2023 end while it remains committed on becoming second largest player in paints serving premium to basic range of products. Outlook We retain a Buy on Grasim with an unchanged PT of Rs. 1900 considering healthy growth outlook for its key subsidiaries and standalone businesses. For all recommendations … [Read more...] about Buy Grasim Industries; target of Rs 1900: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Gujarat State Petronet Q3FY23 PAT of Rs. 171 crore (down 46% q-o-q) was 15% below our estimates due to lower-than-expected gas transmission volume of 22 mmscmd (down 9% q-o-q) and higher operating costs. Net transmission tariffs remained resilient at Rs. 1.7/scm (up 1.3% q-o-q) but EBITDA margins fell by 11% q-o-q to Rs. 1.3/scm given lower volume/high costs. Volume from CGD/refinery & petchem declined by 3%/24% q-o-q while that from fertilizer/power sector increased by 4%/88% q-o-q. Recent PNGRB amendments to the natural gas pipeline tariff allays concern over steep tariff cuts of 15-20% to a large extent and bodes well for revival in gas pipeline capex cycle. Moreover, a recent steep fall in spot LNG price to $17-18/mmBtu would help in volume recovery. … [Read more...] about Buy Gujarat State Petronet; target of Rs 342: Sharekhan

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Sharekhan's research report on Balrampur Chini Mills Balrampur Chini Mills Limited’s (BCML’s) Q3FY2023 performance was affected by a delayed start of the sugar season on adverse weather and delay in new projects based on late supply of machinery. Revenue and operating profit decreased by 19% and 20% y-o-y. A delayed sugar season will spill over in the quarters ahead. Cane crushed in FY2023 with be ~9.25 lakh quintals and cane crushing will be higher by ~10% in FY2024. With production capacity being enhanced to 1,050 KLPD, BCML expects to produce 21 crore litres and 35 crore litres of ethanol in FY2023 & FY2024. A better mix will help improve overall EBIDTA margins. Outlook The stock is currently trading at 13.7x/12.1x its FY024E/FY2025E earnings. We maintain a Buy with an … [Read more...] about Buy Balrampur Chini Mills; target of Rs 425: Sharekhan