Equity Research Report Ways2Capital 27 Nov 2017

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515,516 Shagun Arcade Vijay Nagar
Madhya Pradesh 452001 

Nifty futures and bank nifty future market closed at 10366./ 25770. according to technical analysis if nifty futures and bank nifty future moves up-word in upcoming treading sessions then 10400/ 25800 will be next resistance level, if it break this level then nifty futures and bank nifty future can touch 10530 / 26000 level . it will be hard resistance. meanwhile in reveres there is support on 10300/ 25650 for nifty futures and bank nifty future after breaking this support with volume there is big support for nifty futures and bank nifty future on 10100/25000

Standalone Results Q4FY17: (Rs. in crore)
Q2FY18 YOY( %)

REVENUE 3142 2.40
EBITDA 317 14.90
EBITDA MARGIN (%) 10.10 153
NET PROFIT 457 74.10

Siemens standalone revenue for the quarter came in at Rs. 3142 crore, registering 2.4% yoy decline. This was primarily driven by 15% and 25% yoy decline in revenues from Power and Gas and Mobility segment.  EBITDA for the quarter rose by 14.9% yoy to Rs. 317 crore with a corresponding margin expansion of 152 bps. EBITDA margin for the quarter stood at 10.1%. This margin expansion was aided by 3% and 10% yoy decline in Purchase of stock in trade and net other expenses. The adjusted PAT for the quarter came in at Rs. 457 crore, yoy decline of 74.1%. This was due to 9% yoy increase in depreciation. Also rise in effective tax rate to 30% from 24% in corresponding quarter last year contributed to the same. Looking at the full year numbers, we see that revenue jumped by 1% to reach Rs.11348.3 crore, while EBITDA rose by 3% to 1051.24 crore. Company reported net profit of Rs.1133.57 crore, down 61% yoy. Company reported exceptional gain of Rs.567 crore which is inclusive of impairment loss on certain assessment, sale and transfer of engineering, design development business forming a part of Power and Gas business and profit on sale of property at Worli. During the quarter, new orders grew by 10.4% yoy to Rs.2704 crore. With this, order backlog is reached to Rs. 12263 crore. Further, management is optimistic about future growth and express its increasing focus on winning projects where the governments thrust on spending is high.

1 Standalone Results Q2FY18: (Rs. in crore)
Q2FY18 YOY( %)

NII 3720.20 8.60
NPA ( %) 11.20 19
PROVISIONS 2329 29.80

Bank of Baroda reported its Q2FY18 results today. The quarterly numbers missed street estimates on  net profit. The net profit for the quarter was 22.6% below the street estimates of Rs.459 crore. However, net interest income for the quarter was 5.7% above the street estimates of Rs.3519 crore. The NII for the quarter was saw 8.6% yoy increase to Rs.3720 crore vs R s.3426 crore in Q2FY17. This was largely due to 2.6% yoy increase in interest income to Rs.10753 crore. While, interest expendedremained flat. The asset quality for the quarter showed steady performance. The GNPA’s for the quarter rose by 8% yoy to Rs.46306 crore. The GNPA’s as percentage to total advances declined by 19 bps to 11.16% vs 11.35% in Q2FY17. The NNPA also declined by 41 bps to 5.05% vs 5.46% in previous year corresponding quarter. The provisions for the quarter continue to remain inch upwards for aging stressed asset problem. The provisions for the quarter rose by 30% yoy to Rs.2329 crore vs Rs.1795 crore Q2FY17. The resultant net profit for the quarter declined by 35.7% yoy to Rs.355 crore in previous year corresponding quarter.Also, the PCR for the quarter stood at 67.18%. Further advances and deposits grew by 9% & 3% yoy to Rs.387301 crore & 583212 crore respectively

Foreign institutional investors net bought stock futures worth Rs100cr and index futures worth Rs140cr on NSE on Thursday. They net sold index options worth Rs500cr. FIIs net bought Indian shares worth Rs73.2cr on the BSE, NSE, and Metropolitan Stock Exchange combined. Domestic institutional investors, however, net bought shares worth Rs220cr, according to provisional data on the NSE website.

Next week promises to be full of action as there are slew of macro-economic data to be released not only in India but also in the US. October fiscal deficit data and second quarter GDP data will be announced on November 30th while Nikkei market manufacturing PMI will also be announced. Apart from interest rate sensitive sectors like banking, realty and auto’s will be in action ahead of the RBI policy meet which will be held on December 6, 2017. Apart from this, US GDP data and also the OPEC meeting is scheduled on 30th of November. Given below is the list of upcoming events –

Nov 29 – GDP data US 

Nov 30 – Oct fiscal deficit India

Nov 30 – Q2 GDP data India

Nov 30 – OPEC meeting 

Dec 1 – Nov Nikkei market manufacturing PMI

Dec 6 – RBI Policy meet

Idea Cellular announced that it is in the process of doubling its current 4G capacity by adding 5 MHz spectrum in the 1800 MHz band. This action the company claims would significantly increase current speeds to more than double from current levels. Over 7,200 4G sites are planned that would cover over 525 towns and 7,100 villages in Maharashtra and Goa. The company plans to add over 3,700 broadband sites in FY18. This move could double 4G capacity and give Idea customers much faster download and upload speeds. In August September 2017, Idea Cellular added 1.5 lakh subscribers to its wireless base in Maharashtra alone. Nationally, however, the company lost 9 lakh subscribers during the same period. Idea is the third largest telecom player in India with a revenue market share of 19% . It also owns 12.8% stake in Indus Towers, a three-way joint venture with Bharti Airtel and Vodafone. Idea had a total subscriber base of 19.8cr at the end of  FY17.

Godrej Consumer Products has cut the prices of products such as hair color, air fresheners, liquid detergents and deodorant categories by 7-10%. This step has been taken in order to pass on the benefits of the recent reduction in GST rates to consumers. This will result in a decline in the prices of their products and would make them more competitive against their peers. Reduction in prices will result in an increase in overall sales and market share. Recent performance of the company indicates that their India business doing comparable sales growth of 11% led by 10% volume growth. International business also reported comparable growth of 9%. We believe, moving ahead there will be stronger growth in H2FY18 as post GST, the trade channels are getting back to normal and consumer offtakes have improved. We have a positve outlook on the stock. T

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