Amar Ambani
Reliance Industries (Q2 FY15) – BUY
CMP Rs958, Target Rs1,400, Upside 46.1%
– Revenues at Rs965bn, lower by 7% yoy driven by fall in refining and oil and gas segment sales
– OPM improves by 97bps yoy and 72bps qoq; yoy improvement was led by 87bps increase in refining segment margins, sequential improvement was led by 169bps rise in petrochemical EBIT margins
– GRMs were at US$8.3/bbl and was better than our expectations of US$8/bbl, GRMs saw 7.8% yoy rise while being lower by 4.6% qoq
– Shale gas EBIDTA continue to rise sequentially but revenues declined
– PAT at Rs57.4bn was better than our and street estimates owing to better than expected refining segment performance
– We maintain BUY rating with 2-year TP of Rs1,400
Click here For the detailed report on the same.
Indusind Bank (Q2 FY15) – BUY
CMP Rs635, Target Rs811, Upside 27.7%
– Sustained weakness in consumer financing moderates overall loan growth to 22% yoy
– CASA improves to 34%; NIM was flat at 3.63%
– Fee growth sustained at buoyant level; C/I ratio deteriorates on accelerated branch investments
– Asset quality was strong; stress in consumer segment was stable while it eased on corporate side
– Retain BUY and 24-month target price of Rs811
