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 496 other subscribers

RSS Stocks Talk Forum

  • ROHL will immensely benefit from current upcycle. TP ₹431 (+37%)
    ROHL will immensely benefit from current upcycle. It is going through investment phase & taking steps in right direction by refurbishing existing inventory, shifting focus to value & hiring right talent. Valuation gap with peers narrowing. TP ₹431 (+37%) Download report... ROHL will immensely benefit from current upcycle. TP ₹431 (+37%)
  • PSP Projects strategic alliance with Adani to unlock large opportunities. TP 792 (+30%)
    PSP Projects has focused on its core competency, profitable growth & value creation. Its strategic alliance with Adani to unlock large opportunities. Out of current order book of ₹65bn, ₹5bn is from Adani. ₹35-40bn order inflows expected. TP 792 (+30%) Download research report... PSP Projects strategic alliance with Adani to unlock large opportunities. TP 792 […]
  • SOBHA’s ~190msf of land reserve is valued at ₹90b, assuming 25-75 years of monetization
    SOBHA’s ~190msf of land reserve is valued at ₹90b, assuming 25-75 years of monetization. The Co trades at 8.5x FY25E EV/EBITDA (based on FY25E pre-sales), which is at a 15-30% discount to its comparable peers (PEPL, GPL, MLDL & Sunteck). TP ₹2213 (+44%) Download research report ... SOBHA’s ~190msf of land reserve is valued at […]
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!