LIC housing Finance limited reported mixed Q3FY20 numbers. Topline growth came in at 12.10% on back drop of slowing economy and struggling housing sector. Tax sops, interest rates incentives rolled by government in earlier years did yield dividends for HFC’s focused in affordable segment. Tier II & III cities witnessed demand for low cost houses. Bottom line of LICHSGFIN was significantly impacted by provision for impairment of financial instruments which was 390.68 crore in Q3FY20 as compared to -3.14 crore in Q3FY19. NIMs improved to 2.42% from 2.33%. Gross NPA increased to 2.73%, due to project loans. Individual Gross NPA was lower at 1.90%. Company remains focused on individual home loans in affordable segment and PMAY. We expect slight credit cost pressure in Q4FY20 as well. Reported PAT came marginally lower on YoY basis.
Recommendation: Accumulate
We had initiated buy recommendation on LICHSGFIN at Rs. 370 for a target price per share of Rs. 681, valuing the company at P/BV of 1.5x on FY21e. Pick up in economy aided by higher rural income on back drop of expected good ‘Rabi’ harvest and lower interest rate regime augurs well for housing finance companies focused in affordable housing segment. We recommend accumulate on LIC Housing Finance Limited.
Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (“INSL”), for use by the recipient as information only and is not for circulation or public distribution. INSL includes subsidiaries, group and associate companies, promoters, employees and affiliates. INSL researches, aggregates and faithfully reproduces information available in public domain and other sources, considered to be reliable and makes them available for the recipient, though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. The third party research material included in this document does not represent the views of INSL and/or its officers, employees and the recipient must exercise independent judgement with regard to such content. This document has been published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is not to be altered, transmitted, reproduced, copied, redistributed, uploaded or published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from INSL. This document is solely for information purpose and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. INSL does not take responsibility thereof. The research analysts of INSL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is based on technical and derivative analysis center on studying charts of a stock’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s fundamentals and, as such, may not match with a report on a company’s fundamentals. Nothing in this document constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. INSL does not accept any responsibility or whatever nature for the information, assurances, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this document only. The opinions are subject to change without any notice. INSL directors/employees and its clients may have holdings in the stocks mentioned in the document. This report is based / focused on fundamentals of the Company and forward-looking statements as such, may not match with a report on a company’s technical analysis report Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Dharmesh Kant.
Posted by Mehul Kothari | Published on 01-FEB-2020
Better top line, PAT growth boosted by lower taxes!Rating: BUY | CMP: Rs 235.25 | Target Price: Rs 310 | Upside: 31.77%ITC limited reported healthy Q3FY20 numbers. Total income grew by over 6% YoY while net profit registered growth a tad over 29%. Bottom line growth was primarily on account of lower taxes as the company availed new tax structure. Blended realization for cigarettes grew by 5.29% which accounts for around 40% of top line while; its contribution to segmental revenue was 82%, clocking 6.40% YoY growth. Agri-business revenue was up 10.43% YoY while it’s segmental revenue contribution rose 16.77% YoY. Paperboards, Paper & Packaging Segment Revenue witnessed muted growth on a relatively firm base due to slowdown in the FMCG and liquor industry and depressed realisations on softening of global pulp prices. Hotels segment’s revenue was up 22.2% and EBITDA 40.1% YoY, driven by strong growth in existing properties and robust performance of new properties. Overall, it was a operationally strong performance by ITC amidst continued slowdown in FMCG industry.
Recommendation: AccumulateWe had initiated buy recommendation on ITC at Rs. 242 for a target price per share of Rs. 310, valuing the company at PER of 23x on FY21e, which is a 15% discount to its normal forward PE multiples per share. Valuation has become attractive, after the recent price correction of around 22% from peak levels. A high dividend pay-out ratio is translating into a dividend yield of around 2.37%, which makes it appealing in the present market scenario. We recommend buy on ITC.
Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (“INSL”), for use by the recipient as information only and is not for circulation or public distribution. INSL includes subsidiaries, group and associate companies, promoters, employees and affiliates. INSL researches, aggregates and faithfully reproduces information available in public domain and other sources, considered to be reliable and makes them available for the recipient, though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. The third party research material included in this document does not represent the views of INSL and/or its officers, employees and the recipient must exercise independent judgement with regard to such content. This document has been published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is not to be altered, transmitted, reproduced, copied, redistributed, uploaded or published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from INSL. This document is solely for information purpose and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. INSL does not take responsibility thereof. The research analysts of INSL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is based on technical and derivative analysis center on studying charts of a stock’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s fundamentals and, as such, may not match with a report on a company’s fundamentals. Nothing in this document constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. INSL does not accept any responsibility or whatever nature for the information, assurances, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this document only. The opinions are subject to change without any notice. INSL directors/employees and its clients may have holdings in the stocks mentioned in the document. This report is based / focused on fundamentals of the Company and forward-looking statements as such, may not match with a report on a company’s technical analysis report Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies
)
LIC Housing Finance Ltd. - Q3 FY20 Stock Result Updates
Rating: ACCUMULATE | CMP: Rs 440.15 | Target Price: Rs 681 | Upside: 54.77%
LIC housing Finance limited reported mixed Q3FY20 numbers. Topline growth came in at 12.10% on back drop of slowing economy and struggling housing sector. Tax sops, interest rates incentives rolled by government in earlier years did yield dividends for HFC’s focused in affordable segment. Tier II & III cities witnessed demand for low cost houses. Bottom line of LICHSGFIN was significantly impacted by provision for impairment of financial instruments which was 390.68 crore in Q3FY20 as compared to -3.14 crore in Q3FY19. NIMs improved to 2.42% from 2.33%. Gross NPA increased to 2.73%, due to project loans. Individual Gross NPA was lower at 1.90%. Company remains focused on individual home loans in affordable segment and PMAY. We expect slight credit cost pressure in Q4FY20 as well. Reported PAT came marginally lower on YoY basis.
Recommendation: Accumulate
We had initiated buy recommendation on LICHSGFIN at Rs. 370 for a target price per share of Rs. 681, valuing the company at P/BV of 1.5x on FY21e. Pick up in economy aided by higher rural income on back drop of expected good ‘Rabi’ harvest and lower interest rate regime augurs well for housing finance companies focused in affordable housing segment. We recommend accumulate on LIC Housing Finance Limited.
Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (“INSL”), for use by the recipient as information only and is not for circulation or public distribution. INSL includes subsidiaries, group and associate companies, promoters, employees and affiliates. INSL researches, aggregates and faithfully reproduces information available in public domain and other sources, considered to be reliable and makes them available for the recipient, though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. The third party research material included in this document does not represent the views of INSL and/or its officers, employees and the recipient must exercise independent judgement with regard to such content. This document has been published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is not to be altered, transmitted, reproduced, copied, redistributed, uploaded or published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from INSL. This document is solely for information purpose and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. INSL does not take responsibility thereof. The research analysts of INSL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is based on technical and derivative analysis center on studying charts of a stock’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s fundamentals and, as such, may not match with a report on a company’s fundamentals. Nothing in this document constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. INSL does not accept any responsibility or whatever nature for the information, assurances, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this document only. The opinions are subject to change without any notice. INSL directors/employees and its clients may have holdings in the stocks mentioned in the document. This report is based / focused on fundamentals of the Company and forward-looking statements as such, may not match with a report on a company’s technical analysis report Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies and securities, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report: Dharmesh Kant.
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Share Market Today 31st January 2020 - Get Daily Stock Market Report
Market Recap Market Outlook Bank Nifty Outlook Exhibit 4: Participants Activity FII STATS FII (Activity in no. of Contracts) in Rs. Cr. Bought Sold Net Chg Conclusion NET OI INDEX FUTURES -1534.23 -76271 -49391 -26,880 Unwinding -75442 INDEX CALLS 3875.15 -81371 -76532 -4,839 Sold PE 43102 INDEX PUTS -145004 -65530 -79,474 81157 NET 2629.86 Neutral PROP (Activity in no. of Contracts) Bought Sold Net Chg Conclusion NET OI INDEX FUTURES -9975 -7363 -2,612 Unwinding 1279 INDEX CALLS -66830 -193903 1,27,073 Unwinding -41049 INDEX PUTS -85312 -119574 34,262 -216154 Neutral Source: Company, IndiaNivesh Research Note on Participants Activity Derivative Outlook . Exhibit 6: LONG BUILT UP SYMBOL Close Price change % OI OI Change % EQUITAS 114.45 0.18% 23867900 5.91% Source: Company, IndiaNivesh Research Exhibit 7: SHORT BUILT UP SYMBOL Close Price change % OI OI Change % DABUR 480.95 -2.71% 12818750 2.16% LICHSGFIN 443.3 -3.75% 9334000 1.56% TECHM 796.35 -1.32% 15601200 1.40% IDFCFIRSTB 40.95 -7.25% 219108000 1.35% Source: Company, IndiaNivesh Research Exhibit 8: LONG UNWINDING SYMBOL Close Price change % OI OI Change % HEROMOTOCO 2443.9 -0.13% 2115400 -47.90% NIITTECH 1840.8 -4.36% 785250 -37.10% NIFTYIT 16279 -0.89% 5250 -35.19% BANKNIFTY 30768.4 -0.68% 1232000 -32.79% CESC 722.1 -2.74% 1508000 -32.24% Source: Company, IndiaNivesh Research Exhibit 9: SHORT COVERING SYMBOL Close Price change % OI OI Change % EICHERMOT 20414.55 0.64% 212850 -38.62% POWERGRID 188 0.59% 44740000 -27.41% PIDILITIND 1527.2 1.64% 2365000 -27.32% BALKRISIND 1086.6 0.14% 1240800 -26.39% RECLTD 148.1 0.51% 20958000 -24.56% Source: Company, IndiaNivesh Research Nifty 50 Pivots SYMBOL Close S2 S1 Pivot R1 R2 ADANIPORTS 378.00 372.67 375.33 379.52 382.18 386.37 ASIANPAINT 1805.00 1777.07 1791.03 1799.97 1813.93 1822.87 AXISBANK 730.90 722.43 726.67 731.53 735.77 740.63 BAJAJ-AUTO 3145.50 2979.97 3062.73 3123.87 3206.63 3267.77 BAJFINANCE 4364.30 4257.90 4311.10 4398.05 4451.25 4538.20 BAJAJFINSV 9639.65 9384.35 9512.00 9731.00 9858.65 10077.65 BPCL 469.65 453.75 461.70 473.10 481.05 492.45 BHARTIARTL 489.80 474.80 482.30 487.60 495.10 500.40 INFRATEL 246.15 237.32 241.73 245.62 250.03 253.92 BRITANNIA 3210.70 3170.37 3190.53 3212.62 3232.78 3254.87 CIPLA 451.00 438.13 444.57 452.78 459.22 467.43 COALINDIA 187.95 184.42 186.18 189.27 191.03 194.12 DRREDDY 3154.85 3096.35 3125.60 3147.80 3177.05 3199.25 EICHERMOT 20340.30 19993.43 20166.87 20373.43 20546.87 20753.43 GAIL 123.35 120.62 121.98 124.37 125.73 128.12 GRASIM 791.25 774.08 782.67 795.83 804.42 817.58 HCLTECH 607.85 598.25 603.05 608.45 613.25 618.65 HDFCBANK 1226.05 1205.65 1215.85 1227.40 1237.60 1249.15 HEROMOTOCO 2482.30 2431.43 2456.87 2489.43 2514.87 2547.43 HINDALCO 193.45 189.58 191.52 194.63 196.57 199.68 HINDUNILVR 2058.10 2033.30 2045.70 2061.85 2074.25 2090.40 HDFC 2415.00 2368.40 2391.70 2410.20 2433.50 2452.00 ICICIBANK 532.20 520.30 526.25 530.10 536.05 539.90 ITC 234.05 230.68 232.37 234.68 236.37 238.68 IOC 117.15 114.02 115.58 117.77 119.33 121.52 INDUSINDBK 1231.50 1203.23 1217.37 1235.68 1249.82 1268.13 INFY 780.70 771.10 775.90 782.80 787.60 794.50 JSWSTEEL 256.95 251.25 254.10 258.10 260.95 264.95 KOTAKBANK 1628.25 1605.88 1617.07 1628.68 1639.87 1651.48 LT 1370.20 1342.87 1356.53 1366.67 1380.33 1390.47 M&M 567.85 549.38 558.62 573.08 582.32 596.78 MARUTI 7020.45 6948.82 6984.63 7016.82 7052.63 7084.82 NTPC 113.65 110.75 112.20 113.50 114.95 116.25 NESTLEIND 15520.80 15261.37 15391.08 15600.97 15730.68 15940.57 ONGC 115.60 113.50 114.55 116.05 117.10 118.60 POWERGRID 194.40 189.83 192.12 193.68 195.97 197.53 RELIANCE 1443.75 1414.78 1429.27 1454.48 1468.97 1494.18 SBIN 310.70 299.93 305.32 311.03 316.42 322.13 SUNPHARMA 442.10 431.93 437.02 445.38 450.47 458.83 TCS 2137.85 2102.62 2120.23 2142.62 2160.23 2182.62 TATAMOTORS 186.20 179.37 182.78 187.67 191.08 195.97 TATASTEEL 56.35 53.38 54.87 56.63 58.12 59.88 TECHM 791.35 770.48 780.92 794.43 804.87 818.38 TITAN 1179.25 1167.02 1173.13 1182.32 1188.43 1197.62 UPL 544.15 532.62 538.38 544.87 550.63 557.12 ULTRACEMCO 4486.00 4388.53 4437.27 4512.88 4561.62 4637.23 VEDL 140.95 137.78 139.37 141.38 142.97 144.98 WIPRO 240.70 235.43 238.07 242.83 245.47 250.23 YESBANK 39.05 37.18 38.12 39.48 40.42 41.78 ZEEL 267.85 260.98 264.42 269.48 272.92 277.98 Note: The levels for TATASTEEL are of TATASTEEL Partly Paid up Share. Disclaimer: "Investment in securities market and Mutual Funds are subject to market risks, read all the related documents carefully before investing.")
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ITC Limited - Q3 FY20 Stock Result Updates
Better top line, PAT growth boosted by lower taxes!Rating: BUY | CMP: Rs 235.25 | Target Price: Rs 310 | Upside: 31.77%ITC limited reported healthy Q3FY20 numbers. Total income grew by over 6% YoY while net profit registered growth a tad over 29%. Bottom line growth was primarily on account of lower taxes as the company availed new tax structure. Blended realization for cigarettes grew by 5.29% which accounts for around 40% of top line while; its contribution to segmental revenue was 82%, clocking 6.40% YoY growth. Agri-business revenue was up 10.43% YoY while it’s segmental revenue contribution rose 16.77% YoY. Paperboards, Paper & Packaging Segment Revenue witnessed muted growth on a relatively firm base due to slowdown in the FMCG and liquor industry and depressed realisations on softening of global pulp prices. Hotels segment’s revenue was up 22.2% and EBITDA 40.1% YoY, driven by strong growth in existing properties and robust performance of new properties. Overall, it was a operationally strong performance by ITC amidst continued slowdown in FMCG industry. Recommendation: AccumulateWe had initiated buy recommendation on ITC at Rs. 242 for a target price per share of Rs. 310, valuing the company at PER of 23x on FY21e, which is a 15% discount to its normal forward PE multiples per share. Valuation has become attractive, after the recent price correction of around 22% from peak levels. A high dividend pay-out ratio is translating into a dividend yield of around 2.37%, which makes it appealing in the present market scenario. We recommend buy on ITC. Disclaimer: This document has been prepared by IndiaNivesh Securities Limited (“INSL”), for use by the recipient as information only and is not for circulation or public distribution. INSL includes subsidiaries, group and associate companies, promoters, employees and affiliates. INSL researches, aggregates and faithfully reproduces information available in public domain and other sources, considered to be reliable and makes them available for the recipient, though its accuracy or completeness has not been verified by INSL independently and cannot be guaranteed. The third party research material included in this document does not represent the views of INSL and/or its officers, employees and the recipient must exercise independent judgement with regard to such content. This document has been published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is not to be altered, transmitted, reproduced, copied, redistributed, uploaded or published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from INSL. This document is solely for information purpose and should not to be construed as an offer to sell or the solicitation of an offer to buy any security. Recipients of this document should be aware that past performance is not necessarily a guide for future performance and price and value of investments can go up or down. The suitability or otherwise of any investments will depend upon the recipients particular circumstances. INSL does not take responsibility thereof. The research analysts of INSL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. This document is based on technical and derivative analysis center on studying charts of a stock’s price movement, outstanding positions and trading volume, as opposed to focusing on a company’s fundamentals and, as such, may not match with a report on a company’s fundamentals. Nothing in this document constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. INSL does not accept any responsibility or whatever nature for the information, assurances, statements and opinion given, made available or expressed herein or for any omission or for any liability arising from the use of this document. Opinions expressed are our current opinions as of the date appearing on this document only. The opinions are subject to change without any notice. INSL directors/employees and its clients may have holdings in the stocks mentioned in the document. This report is based / focused on fundamentals of the Company and forward-looking statements as such, may not match with a report on a company’s technical analysis report Each of the analysts named below hereby certifies that, with respect to each subject company and its securities for which the analyst is responsible in this report, (1) all of the views expressed in this report accurately reflect his or her personal views about the subject companies )