October 3, 2025
IIFL
Amar Ambani of IIFL has evaluated the Q4FY16 performance of several stocks and given buy recommendations with price targets
Amar Ambani of IIFL has evaluated the Q4FY16 performance of several stocks and given buy recommendations with price targets




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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

 

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