Stocks To Buy & Sell After Q4FY15 Results: Amar Ambani Of IIFL

Shriram City Union Finance Ltd. (Q4 FY15) – BUY
CMP Rs1,918, Target Rs2,325, Upside 21.2.%

• AUM growth improved to 14% yoy in FY15
• Asset growth to only marginally pick-up in FY16 but accelerate sharply in FY17
• NIM declined in Q4 FY15 due to product mix changes, but long term outlook is robust
• Asset quality was stable; future hinged on economy
• Profitability to improve over FY15-17; Retain Buy with 12-month TP of 2,325

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Exide Industries (Q4 FY15) – Accumulate
CMP Rs170, Target Rs187, Upside 10.0%

• Net sales at Rs. 1,652cr was lower than our and street estimates; represented a muted growth of 2.4% yoy and 6% qoq
• Weaker than expected revenues was owing to sharp fall in inverter sales on the back of improved power situation
• OPM at 14.4% was much better than our expectations and was higher by 85bps yoy and 286bps qoq driven by fall in lead prices and better product mix
• PAT was at Rs. 138crs in line with our expectations and saw a 4.1% yoy and 41.5% qoq growth
• Automotive industry fortunes are expected to revive from H2 FY16 and further strengthen in FY17, however replacement demand will be weak given the muted OEM sales in the past three years
• We maintain our Accumulate rating on the stock as we believe upside triggers are factored in the current valuations

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Biocon (Q4 FY15) – Reduce
CMP Rs453, Target Rs430, Downside 5.4%

• Biocon posted better than expected growth at 8.9% qoq and 7.4% yoy on back of higher biopharma sales
• Biopharma revenues improved 11.5% yoy though uncertainty around Middle East sales still persist
• Profit adjusted for gain from Syngene stake sale ahead of estimate; lack of near term triggers results in a downgrade with unchanged target of Rs430

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