Stocks To Buy & Sell After Q4FY16 Results By Amar Ambani Of IIFL

Reliance Infra – BUY
CMP: ₹577, 18-m Target: ₹1,000, Upside: 73%

Ever since making a peak of ₹2,425 in January 2008, it has been a downhill journey. Once known as the momentum play of the previous bull market, the stock gradually slipped out of the investor’s radar as it consolidated at lower levels. However, Reliance Infra is now showing a fresh lease of life as it approaches the downward sloping trendline of the triangle. Analyzing stock from larger time frame (Monthly chart), positive break out of multi-year triangle pattern may lead the stock higher towards ₹1,000 levels. Maintain stop loss of ₹345 for long positions.

Click here for the detailed report on the same.

Infosys Ltd (Q4 FY16): Growth getting stronger – BUY
CMP: ₹1,172, 1-yr Target: ₹1,367, Upside: 16.6%

• Traction in volumes impressive; FY16 CC dollar revenue growth at 13.3% yoy
• Large deals win rate improving; TCV of wins in FY16 up 45% yoy
• Strong FY17 growth guidance at 11.5%-13.5% yoy
• EBIT margin expansion was heartening; margin band to improve in the longer term
• Set to deliver industry-best earnings CAGR over FY16-18; Retain BUY rating

Click here for the detailed report on the same.

Mindtree Ltd. (Q4 FY16): Strong show, yet again – BUY
CMP: ₹731, 1-yr Target: ₹880, Upside: 20.4%

• Strong growth delivery despite headwinds; FY16 CC organic dollar revenue growth at 18.6% yoy
• Improving deal wins to underpin sustenance of high growth
• Operating margin to improve from the current year
• Valuation to re-rate further; reiterate BUY

Click here for the detailed report on the same.

DCB Bank (Q4 FY16): Healthy performance and comforting valuations – Accumulate
CMP: ₹88, 1-yr Target: ₹98, Upside: 11.7%

• NII growth marginally better than estimates; PAT growth surpasses estimates on lower tax outflow
• Advances growth continues to witness strong momentum; corporate banking de-grows
• Headline asset quality lower on sale to ARCIL
• Full year NIMs stood at 3.94%; expect some correction going forward
• Valuation captures the impact of new strategy; maintain Accumulate rating

Click here for the detailed report on the same.

TCS Ltd (Q4 FY16): Better-than-expected execution – Accumulate
CMP: ₹2,522, 1-yr Target: ₹2,645, Upside: 4.9%

• Q4 FY16 CC dollar revenue growth beat estimates; FY16 growth at 12% v/s 17% in FY15
• Margin decline was a negative surprise, company will have to manage operating levers adeptly to sustain margins
• Risk-reward now in balance; upgrade rating to Accumulate

Click here for the detailed report on the same.

LIC Housing Fin Ltd. (Q4 FY16): Loan growth slows but profitability remains robust – Accumulate
CMP: ₹463, 1-yr Target: ₹507, Upside: 8.3%

• NII growth marginally below expectation; PAT growth was dragged by higher expenses
• Loan growth continues to moderate to 16% yoy; fresh disbursements were pretty robust
• NIM continues its upward march; further upside may be capped
• Valuation largely factors strong profitability of the franchise; Retain Accumulate rating

Click here for the detailed report on the same.

Manappuram Finance Ltd – Call Update
Reco Price: ₹35, Previous Target: ₹40, New Target: ₹48

In our previous Call Success dated Mar 10, 2016 we had mentioned about the extension of our target price to ₹40 as was communicated in our Q3 FY16 Result Update on Feb 15, 2016. The stock has surpassed the target in today’s trading session yielding a return of 14% from the date of extension. Since our coverage initiation on Sept 14, 2015 at ₹22, the cumulative return stands at 82% in just over 7 months. We continue to remain bullish on the stock as Manappuram has been delivering satisfactorily on its outlined strategy of diversifying its lending franchise. With valuation still compelling at 1.1x FY18 P/Adj. BV, we further upgrade 12-month target price to ₹48.

Click here for the detailed report on the same.

IndusInd Bank Ltd (Q4 FY16): Qualitative progress on track – BUY
CMP: ₹972, 1-yr Target: ₹1,132, Upside: 16.4%

• Loan growth at 29% yoy remains strong; nature of growth getting broader
• Loan mix moving towards consumer financing; bank well capitalized for sustained strong growth
• Savings deposit growth remains sturdy; branch addition to up CASA ratio in longer run
• Marginal improvement in NIM was a positive surprise; to remain resilient in coming quarters
• Asset quality stable; outlook sanguine
• Premium valuation to stay, maintain BUY rating

Click here for the detailed report on the same.