Reports
View latest reports from the Arihant Research Desk. Daily News Analysis, daily market outlook, Value Plus for the latest happenings, investment ideas, model portfolio and market summary, mutual fund reports, ongoing IPO and NFO recommendation reports.

 

Daily Market Outlook

Daily Equity F&O Margin Report 19-12-2014 Download 170KB
Daily Equity F&O Margin Report 19-12-2014
Daily Market Update Report 19-12-2014 Download 647KB
Daily Market Update Report 19-12-2014
Daily Equity F&O Margin Report 18-12-2014 Download 170KB
Daily Equity F&O Margin Report 18-12-2014
Daily Market Update Report 18-12-2014 Download 641KB
Daily Market Update Report 18-12-2014

Value Plus – Monthly

Arihant's Value Plus: Dec 2014 Download 2MB
Arihant's Value Plus Dec 2014 Issue is now available. This month's issue contains - Market Roundup of Nov 2014 month, Domestic data releases, Auto sector review, Technical Nifty Outlook, Commodity Pick, Currency Outlook, Trading Glossary, Technical Stock Picks, Mutual Fund Roundup, Personal Finance: 6 Retirement Risks You Need To Be Prepared Of
Arihant's Value Plus: Nov 2014 Download 2MB
Arihant's Value Plus Nov 2014 Issue is now available. This month's issue contains - Market Roundup of Oct 2014 month, Domestic data releases, Auto sector review, Technical Nifty Outlook, Commodity Pick, Currency Outlook, Technical Stock Picks, Mutual Fund Roundup
Arihant's Value Plus: Oct 2014 Download 2MB
Arihant's Value Plus Oct 2014 Issue is now available. This month's issue contains - Market Roundup of Sep 2014 month, Domestic data releases, Auto sector review, Technical Nifty Outlook, Commodity Pick, Currency Outlook, Technical Stock Picks, Mutual Fund Roundup

Ongoing IPO and NFO Note

IPO Note - Sharda Cropchem Ltd Download 424KB
Sharda Cropchem Ltd is a crop protection chemical company engaged in the marketing and distribution of a wide range of formulations and generic active ingredients globally. The company is priced at PE ratio of 13x the upper price band of Rs 156 and 12x the lower price band of Rs 145 on FY2014 earning. This seems reasonable; given the company’s strong balance sheet, healthy return ratios and earnings growth. Also, the offer price is at a discount to the comparable agrochemical companies in the industry (PE ratio is 25x FY2014 earnings). The company’s diversified business model with a clear focus on registration of molecules makes its business strategy unique as compared to its peers. We recommend investors to SUBSCRIBE for the IPO.

Commodity Reports

DAILY CURRENCY UPDATE REPORT 19-12-2014 Download 372KB
DAILY CURRENCY UPDATE REPORT 19-12-2014
COMMODITY AGRI MARKET BUZZ DAILY-19-12-2014 Download 170KB
COMMODITY AGRI MARKET BUZZ DAILY-19-12-2014
Arihant - COMMODITY DAILY METAL BUZZ-191214 Download 170KB
Arihant - COMMODITY DAILY METAL BUZZ-191214
Arihant - COMMODITY DAILY METAL BUZZ-191214 Download 170KB
Arihant - COMMODITY DAILY METAL BUZZ-191214
DAILY CURRENCY UPDATE REPORT 18-12-2014 Download 373KB
DAILY CURRENCY UPDATE REPORT 18-12-2014
COMMODITY AGRI MARKET BUZZ DAILY-18-12-2014 Download 170KB
COMMODITY AGRI MARKET BUZZ DAILY-18-12-2014
Arihant - COMMODITY DAILY METAL BUZZ-181214 Download 162KB
Arihant - COMMODITY DAILY METAL BUZZ-181214
Commodity Diwali Special Report-2013 Download 195KB
Commodity Diwali Special Report-2013
Copper - Mirror Image Download 131KB
Copper - Mirror Image

Stock Recommendation and Other Reports

POSITIONAL CALL: BUY IDFC Download 357KB
POSITIONAL CALL 01-12-2014: BUY IDFC AT CMP 159.40 OR ON A DECLINE UP TO 145 SL 133 TGT 176-186-204
POSITIONAL CALL: BUY ABIRLANUVO Download 309KB
POSITIONAL CALL 01-12-2014: BUY ABIRLANUVO AT CMP 1794.95 OR ON A DECLINE UP TO 1750 SL 1700 TGT 1860-1950-2050
TVS Motor Company – Q2FY15 Result Update Download 208KB
TVS reported mixed set of numbers for Q2FY15. The stock at Rs. 237 trades at 20.6x our estimated FY16 EPS of Rs 11.5 per share at which stock looks over-valued in our view. We have assigned a price target of Rs 184 per share based on PE of 16x its FY16 estimates. We recommend ‘Reduce’ rating on the stock.
Bank of Maharashtra – Q2FY15 Result Update Download 235KB
Bank of Maharashtra Q2FY15 numbers were in line with our estimates. PAT at Rs 163 crs increased by 248% on YoY basis. We have become cautious on Bank of Maharashtra post its last quarter (Q1FY15) results due to deteriorating asset quality. At CMP of Rs 44 the bank is trading at 0.72x its FY16 ABV of Rs 62. We recommend to ‘REDUCE’ with a price target of Rs 37 based on 0.6x P/ABV FY16E.
POSITIONAL CALL: BUY BATAINDIA Download 353KB
17-11-2014 POSITIONAL CALL: BUY BATAINDIA AT CMP 1313.65 OR ON A DECLINE UP TO 1285 SL 1220 TGT 1400-1430-1474
Hindalco – Q2FY15 Result Update Download 224KB
Hindalco reported rise in its EBITDA margin to 10.5% from 8.6% on YoY basis largely due to strong realisations. PAT however was lower by 77.9% on YoY basis at 79 crs largely due to exceptional item of Rs 431 crs. Our SoTP value for Hindalco stands at Rs 166 per share and recommend HOLD rating on the stock.
Tata Steel – Q2FY15 Result Update Download 297KB
Tata Steel’s result was lower than estimate mainly due to lower realization on account of increase competition from Chinese players. Our fair value, based on SoTP valuations, for Tata Steel stands at Rs 586 per share. At CMP of Rs 471 per share the stock is trading at FY16E P/E(x) of 6.5x and EV/EBITDA(x) 5.3x respectively. We recommend BUY rating on stock.
JK Cement – Q2FY15 Result Update Download 287KB
J.K. Cement’s 2QFY15 operating performance was in line with estimates. Standalone EBITDA margins increased by 442 bps on YoY basis and stood at 10.9%.At CMP of Rs 630 the stock is available at FY16E P/E(x) and EV/EBITDA(x) of 18.0x and 7.9x respectively at which valuations looks attractive in our view. We recommend to HOLD on the stock with a price target of Rs. 694.
DCB Bank – Q2FY15 Result Update Download 234KB
DCB bank, while steadily growing advances and fairly maintaining its asset quality, reported decent earnings performance. We value DCB at 2x FY16E ABV of Rs 58 giving a price target of Rs 116. We recommend to BUY the stock.
Andhra Bank – Q2FY15 Result Update Download 238KB
Andhra Bank reported good set of numbers both on the top-line front and bottomline. At current valuations we concede the stock is fairly valued, hence significant upside expectations remain dim in the medium-term. We recommend to HOLD the stock with a price target of Rs 95 based on 1x P/ABV FY16E.
Ambuja Cement – Q3CY14 Result Update Download 207KB
Ambuja’s 3QCY14 result came in line with estimates largely driven by higher realisations. Profit after tax increased by 44% YoY to Rs 239 cr. We have valued stock on EV/EBITDA of 11.0(x) its CY15 estimates and have arrived at a fair value of Rs 257 per share. At CMP of Rs 228 the stock is available at CY15E P/E(x) and EV/EBITDA(x) of 16.6x and 9.5x, respectively at which valuations look cheap in our view. We recommend Accumulate rating on the stock.
ACC – Q3CY14 Result Update Download 302KB
ACC’s 3QCY14 operating performance came in line with estimates. Profit after tax increased by 69.6% YoY to Rs 205 cr. We have valued stock on EV/EBITDA of 10.0(x) its CY15 estimates and have arrived at a fair value of Rs 1,585 per share. At CMP of Rs 1,501 the stock is available at CY15E P/E(x) and EV/EBITDA(x) of 18.0x and 9.3x, respectively at which valuations looks attractive in our view. We recommend HOLD rating on the stock.
Maruti Suzuki – Q2FY15 Result Update Download 226KB
Maruti Suzuki’s Q2 FY15 reported PAT was at Rs 863 crores a growth 28.7% on YoY basis, and PAT margin at 7.2%. The stock at Rs 3,242 trades at 27.5x and 19.2x our estimated EPS of Rs 118 and Rs 169 per share for FY15E & FY16E respectively. We value the stock at 18x FY16 EPS, and assign a price target of Rs 3,040 with a “Reduce” recommendation.
HDFC Bank – Q2FY15 Result Update Download 228KB
HDFC Bank reported stable set of numbers. Asset quality, as seen in GNPAs, continues to remain strong. We have valued stock on P/B(x) of 4x on its FY16 adjusted book value of Rs 246 per share and arrived at a target price of Rs. 985. We recommend to ‘HOLD’ the stock.
Hindustan Zinc – Q2FY15 Result Update Download 347KB
Hindustan Zinc’s (HZL) 2QFY15 performance was better than expected largely due to strong LME prices (11.4% rise sequentially). We have valued stock on EV/EBITDA of 6x its FY16E and have arrived at fair value of Rs 186 per share. At CMP of Rs 171 the stock is trading at FY15E and FY16E EV/EBITDA of 5.5x and 5.3x. We recommend Hold rating on the stock.
JSW Steel – Q2FY15 Result Update Download 292KB
JSW Steel’s Q2FY15 numbers were above expectations on account of higher proportion of value added products which increased to 33% vs 29% sequentially. We have valued the company at 6.0x FY16E EV/EBITDA and have arrived at the price target of Rs 1,426. We recommend Accumulate rating on the stock.
Ultratech Cement – Q2FY15 Result Update Download 306KB
Ultratech’s (ULTC) 2QFY15 numbers were largely in line with the estimates largely driven by increased volume. We continue to value stock using EV/EBITDA(x) and have ascribed EV/EBITDA(x) of 10x to its FY16E EBITDA. Our fair value for Ultratech comes at Rs. 2,872 per share. We recommend ‘ACCUMULATE’ rating on the stock.
Federal bank – Q2FY15 Result Update Download 236KB
The Q2FY15 Earnings of Federal bank was largely in-line with expectations. With advances growth picking up to 12% from 8% level in previous quarter. We became positive about the prospects of the bank in the longer run and have revised our price target to Rs 161 based on 1.75x ABV of Rs 92. We have ‘Accumulate’ rating on the stock.
TCS – Q2FY15 Result Update Download 213KB
TCS’s 2QFY15 performance was marginally lower than our estimates on revenue and operating margins front. TCS reported $ revenue growth of 6.4% QoQ and 17.7% YoY. We have valued stock at P/E(x) of 19x its FY16 EPS and have arrived at a fair value of Rs 2,428. Recommend ‘Neutral’ rating on the stock.
Hero Motocorp – Q2FY15 Result Update Download 212KB
Hero Motocorp net sales grew by 20.5% YoY to Rs 6,864 cr, on strong volume growth of 19.5%. The stock at Rs 2,877 trades at 17.4x our estimated FY16 EPS of Rs 165 per share. We assign a price target of Rs 2,970 at 18x FY16 EPS, and have “Neutral” rating on the stock.
Bajaj-Auto – Q2FY15 Result Update Download 203KB
Bajaj-Auto Q2FY15 results were in line with estimates. Q2 PAT stood at Rs 853 crore showing an increase of 1.9% on YoY basis. We assign a price target of Rs 2,284, at 16x FY16 EPS of Rs 143 per share, and have a “NEUTRAL”rating on this stock.
Indusind Bank – Q2FY15 Result Update Download 246KB
Indusind Bank posted healthy growth both on the top-line and bottom-line front. Net profit grew by 30% YoY and stood at Rs 430 crs. We recommend to HOLD with a price target of Rs 685 based on 3x FY16E ABV of Rs 228.5.
Infosys – Q2FY15 Result Update Download 209KB
Infosys has delivered good set of numbers with a top line growth of 3.2% qoq at $2,201mn. Rupee Revenues increased 4.5% qoq to Rs 13,342cr. We believe Infosys deserve a re-rating thus we have assigned a higher PE of 18.5x (16x) to its FY16E earnings and have arrived at fair value of Rs 4,146 per share. At CMP Rs 3,889, stock trades at 17.4(x) its FY16 earnings. We have HOLD rating on the stock.
Initiating Coverage - Coal India Ltd Download 307KB
We are initiating coverage on Coal India Ltd (CIL). The company is into coal production. The company has the distinction of holding largest coal reserves in the world and is also the largest producer of coal. CIL produces more than 80% of the domestic coal and enjoys the virtual monopoly in India. We initiate coverage with NEUTRAL rating on the stock.

Weekly Reports

Weekly Metal Energy Outlook-15-12-2014 Download 205KB
Weekly Metal Energy Outlook-15-12-2014
WEEKLY CURRENCY OUTLOOK 15-12-2014 Download 187KB
WEEKLY CURRENCY OUTLOOK 15-12-2014
WEEKLY AGRI OUTLOOK 15-12-2014 Download 182KB
WEEKLY AGRI OUTLOOK 15-12-2014
Weekly Market Report - 15-12-2014 Download 823KB
Weekly Market Report - 15-12-2014
Weekly Metal Energy Outlook-08-12-2014 Download 170KB
Weekly Metal Energy Outlook-08-12-2014
WEEKLY CURRENCY OUTLOOK 08-12-2014 Download 183KB
WEEKLY CURRENCY OUTLOOK 08-12-2014
WEEKLY AGRI OUTLOOK 08-12-2014 Download 177KB
WEEKLY AGRI OUTLOOK 08-12-2014
Weekly Market Report - 08-12-2014 Download 825KB
Weekly Market Report - 08-12-2014