Fan Site: Inspired, Not Endorsed, By Rakesh Jhunjhunwala

Q4FY16 Results Update By Amar Ambani Of IIFL



Amar Ambani of IIFL has evaluated the Q4FY16 performance of several stocks and given buy recommendations with price targets




The Stocks Talk Forum is also a repository of interesting articles and news items. Check it out now and contribute your share of news & views

Strides Shasun (Q4 FY16): Strong end to FY16 – BUY
CMP: ₹1,192, 1-yr Target: ₹1,450, Upside: 21.6%

  • Strides rebounded from a mixed Q3 to end FY16 on a strong note; achieves H2 FY16 guidance numbers on revenues, margin and filings
  • Q4 revenues up ~18% qoq on strong regulated, institutional showing; margins improve ~75bps qoq
  • Expect momentum to continue on regulated markets, institutional front going into FY17E; retain 1- year SOTP target of ₹1,450

Multibagger Stocks Book

Indraprastha Gas (Q4 FY16): Weak quarter but robust outlook – BUY
CMP: ₹568, 1-yr Target: ₹655, Upside: 15.4%

  • Net sales at ₹886cr were lower than estimates owing to weaker than expected PNG volumes and realizations
  • CNG volumes at 210mn kgs were higher by 5% yoy and flat qoq. PNG volumes were at 86 scm a growth of 8.9% yoy and decline of 0.7% on a sequential basis
  • Gross margins/unit increased by 8.9% yoy and flat on qoq basis to ₹12.19/unit. This was lower than our expectations
  • OPM at 22.2% came in lower than our expectations and grew by 306bps yoy
  • Maintain BUY with a price target of ₹655

Glenmark Pharmaceuticals (Q4 FY16): Sequential growth revival – BUY
CMP: ₹869, 1-yr Target: ₹1,100, Upside: 27.1%

  • Strong rebound in growth across all geographies led by India (+22.5% yoy), US (+21.6% yoy) and ROW (+36% yoy)
  • One offs provision related to legal and currency depreciation mar EBIDTA performance; gross margin declines ~200bps qoq
  • Expects Zetia to drive strong traction in US over FY17/18E; co aims to sustain margin profile even beyond Zetia

    • Expect rerating to continue as Zetia launch looms; retain BUY and raise 1-year target to ₹1,100, based on 20x FY18E EPS

Magma Fincorp Ltd. (Q4 FY16): Stress peaking out – BUY
CMP: ₹89, 1-yr Target: ₹120, Upside: 34.8%

  • AUM shrinks marginally, as expected; execution on product mix strategy continues
  • AUM could grow by 15-18% pa over FY16-18
  • NIM improved by 30 bps qoq and 110 bps yoy; operating leverage at play
  • Asset quality was stable; credit cost peaking out

    • Profitability to improve sharply over FY16-18, Maintain BUY

 

investments, Mid Cap, Multibagger, Portfolio, stock picker, Top Picks    , ,

No Comments Yet

Leave a Reply

Your email address will not be published. Required fields are marked *

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 509 other subscribers

RSS Stocks Talk Forum

  • Piramal Pharma is seeing strong momentum in CDMO. Buy for TP ₹320 (27% upside)
    Piramal Pharma is seeing strong momentum in CDMO. Postponement of the Biosecure Act is unlikely to cause growth related issues as China rebalancing drive by global innovators likely to continue. Other growth levers are intact. Buy for TP ₹320 (27% upside) Download report... Piramal Pharma is seeing strong momentum in CDMO. Buy for TP ₹320 […]
  • The "Golden Crossover" strategy signals a Bullish trend is underway & yields multibagger returns
    Expert says the "Golden Crossover" strategy, where the 50 DMA crosses above the 200 DMA, signals that a Bullish trend is underway. It yields multibagger returns. Top investors & traders use this. There are scanners which reveal when crossover is happening ET's screener shows stocks which have undergone the "golden crossover" in the recent past. […]
  • Hiren Ved has no Banking stocks in his portfolio.
    Hiren Ved has no Bank stocks in his portfolio because Banks are unable to get cheap deposits & lend profitably. People are investing in SIPs instead of FDs & Capital Market stocks are better than Bank stocks. HDFC AMC is a better investment than HDFC Bank [youtube https://www.youtube.com/watch?v=O4SA4czZqY0]
Disclaimer: This is a Fan Site in Rakesh Jhunjhunwala's name. Rakesh Jhunjhunwala is not associated with us and is in no way aware, accountable or responsible for what is stated here. Further, nothing here constiutes investment advice for you to act on. Also, we have a vested interest, and are extremely biased, in everything that we say. So Mind It!