Stocks To Watch: ACC, Aurobindo Pharma, BHEL, Cadila Healthcare, SAIL

Earnings Reactions To Watch

Aurobindo Pharma Q3 (YoY)

• Revenue up 11 percent at Rs 4,336 crore
• Net profit up 3 percent at Rs 595 crore
• EBITDA up 15 percent at Rs 1,025.5 crore
• Margin at 23.7 percent versus 22.9 percent

IGL Q3 (QoQ)

• Revenue up 5.1 percent at Rs 1,184 crore
• Net profit down 1.7 percent at Rs 166 crore
• EBITDA down 6.6 percent at Rs 263 crore
• Margin at 22.2 percent versus 25 percent

Hexaware Q3 (QoQ)

• Revenue up 1 percent at Rs 1,005 crore
• Net profit down 15 percent at Rs 121 crore
• EBIT down 8 percent at Rs 144 crore
• Margin at 14.3 percent versus 15.8 percent

Irb Infra Q3 (YoY)

• Revenue down 8 percent at Rs 1,296.2 crore
• Net profit up 12.5 percent at Rs 207.3 crore
• EBITDA down 15 percent at Rs 630 crore
• Margin at 48.6 percent versus 52.7 percent

Reliance Home Finance Q3 (YoY)

• Revenue up 54.4 percent at Rs 403 crore
• Net profit up 100 percent at Rs 46 crore

Alphageo Q3 (YoY)

• Revenue up 28 percent at Rs 104 crore
• Net profit up 17 percent at Rs 14 crore
• EBITDA up 15 percent at Rs 31 crore
• Margin at 29.8 percent versus 33.3 percent

Firstsource solutions Q3 (QoQ)

• Revenue up 2 percent at Rs 89 crore
• Net profit up 43 percent at Rs 10 crore
• EBIT up 11 percent at Rs 10 crore
• Margin at 11.2 percent versus 10.3 percent

Gati Q3 (YoY)

• Revenue up 5.5 percent at Rs 448.5 crore
• Net profit down 45.5 percent at Rs 3 crore
• EBITDA down 8 percent at Rs 23.5 crore
• Margin at 5.2 percent versus 6 percent

Dixon Technologies Q3 (YoY)

• Revenue up 0.3 percent at Rs 678 crore
• Net profit up 25 percent at Rs 15 crore
• EBITDA up 6 percent at Rs 27 crore
• Margin at 4 percent versus 3.8 percent

SRF Ltd Q3 (YoY)

• Revenue up 23 percent at Rs 1,397 crore
• Net profit up 21 percent at Rs 131 crore
• EBITDA up 11 percent at Rs 253 crore
• Margin at 18.1 percent versus 20.1 percent

Excel Industries Q3 (YoY)

• Revenue up 60 percent at Rs 147 crore
• Net profit up at Rs 19.6 crore
• EBITDA up at Rs 32.5 crore
• Margin at 22.1 percent versus 6.5 percent

Kalpataru Power Transmission Q3 (YoY)

• Revenue up 25.5 percent at Rs 1,417 crore
• Net profit up 31.6 percent at Rs 75 crore
• EBITDA up 27 percent at Rs 152 crore
• Margin at 10.7 percent versus 10.6 percent

Monte Carlo Q3 (YoY)

• Revenue up 24 percent at Rs 356 crore
• Net profit up 37 percent at Rs 48 crore
• EBITDA up 50 percent at Rs 79.5 crore
• Margin at 22.3 percent versus 18.4 percent

Ramco Systems Q3 (QoQ)

• Revenue up 9 percent at Rs 125 crore
• Net profit down 38.5 percent at Rs 4 crore
• EBIT down 50 percent at Rs 6 crore
• Margin at 4.8 percent versus 10.4 percent

Other Earnings To Watch

• ABB India
• ACC
• BHEL
• Bharat Forge
• Cadila Healthcare
• CESC
• Dr Lal Path Labs
• Glenmark Pharmaceuticals
• Granules India
• Manappuram Finance
• Page Industries
• Parag Milk Foods
• Petronet LNG
• Reliance Capital
• SAIL
• Torrent Pharmaceuticals

Brokerage Radar

Nomura on Eicher

• Maintain neutral with target price of Rs 33,049
• EBITDA marginally ahead of estimates in the third quarter
• Expansion of standalone gross margins is a positive
• Sharp jump in other expenses led by new product launch
• Expect Royal Enfield volumes growth to normalise to 15 percent/12 percent in the next fiscal

Jefferies on Eicher

• Maintain hold; cut target price to Rs 31,227 from Rs 31,447
• In-line for Royal Enfield in the third quarter
• VECV delivered strong performance
• Better gross margin, helped partly by inventory build-up
• Believe Royal Enfield is going through a reset
• Seeing waiting periods disappear, growth moderates and margins stabilize

Deutsche Bank on Indraprastha Gas

• Maintain buy with target price of Rs 320
• Marginally below estimates in the December-ended quarter
• Strong volume growth offsets weaker margin impact
• IGL on track to deliver robust earnings growth
• IGL looks well placed to benefit from expansion in new areas

Angel Broking on Elantas Beck India

• Initiate Buy with target price of Rs 2,500
• Market leader in liquid insulation used in electrical equipment
• Liquid insulation forms small but critical part
• Demand from user industries likely to be robust
• Deleveraged company generates healthy free cash flow
• Has liquid investments worth more than Rs 128 crore
• Company shares this wealth in every 2-3 years in form of rich dividends
• Expect company to soon announce a lumpy dividend
• Calendar year 2017 to be subdued due to GST woes and poor off take
• Demand to pick up from the present calendar year: Earnings to grow at a compounded annual growth rate of 17 percent over three calendar years up to 2020
• Current valuations looks attractive considering growth potential and high return ratios

Prabhudas Lilladher on Indraprastha Gas

• Maintain Buy; Cut target price to Rs 333 from Rs 342
• Net profit and EBITDA lower than estimates in the September to December quarter
• Higher gas costs and other expenses drag margins
• CNG, PNG volume traction remains strong
• IGL remains a play on rising pollution concerns
• Natural gas if included in GST will further boost gas demand

Macquarie on Cipla

• Upgrade to Outperform from Neutral; Raised target price to Rs 670 from Rs 632
• EBITDA was tad above estimate in the third quarter
• Impairment charge in Invagen acquisition value was a key negative
• India, Europe and SA shine; U.S. growth yet to pick up
• Expect U.S. sales to pick up starting in the fourth quarter
• US to deliver decent 12 percent revenue CAGR over financial years 2017 to 2020
• Cipla is best placed amongst large-cap pharma stocks

Credit Suisse on Cipla

• Maintain Outperform with a target price of Rs 700
• Beat EBITDA estimates in the third quarter due to strong India growth better gross margins and cost control
• Ex-U.S.: Strong growth in India and Europe
• Margin expansion to continue as the second quarter was partially benefitted from high margin launches
• Benefit of key U.S. launches to be visible in the fourth quarter

Jefferies on Voltas

• Maintain Buy with a target price of Rs 660
• Strong operational beat; Profits came in-line in the December-ended quarter
• Cooling products surprised on both revenue and margins
• MEP profitability surprises
• Cooling products maintain market leadership at 23.7 percent share

Macquarie on Hexaware

• Maintain Outperform; Raised target price to Rs 444 from Rs 380
• Revenue were marginally better in the last quarter of the previous calendar year
• New deal wins remain solid; Validates articulated strategy
• Guidance may be conservative
• Expect Hexaware to post industry leading dollar revenue growth of 12.4 percent in the current calendar year
• Aiming to reduce U.S. revenues to 70 percent in medium term
• Continue to rate L&T Infotech and Hexaware as top midcap picks in Indian IT space

IDFC Securities on Spicejet

• Maintain Outperformer; Raised target price to Rs 181
• Stellar earnings led by higher volumes and better yields in the third quarter
• Capacity additions lagging demand; Load factors continue to remain robust
• Continues to reap benefits of its increased non-metro/regional focus
• Expect impact of recent surge in crude prices to be passed on in tariffs by the first quarter of the next fiscal
• With strong cash generation balance sheet to strengthen further

Elara Capital on SpiceJet

• Maintain Buy; Raised target price to Rs 203 from Rs 188
• Strong pricing power driving earnings
• Strong passenger volume growth; Strong yield growth
• Spicejet is top pick among aviation space
• Company to benefit from regional market growth