This document provides a 6-month report for the HPAM Ultima Ekuitas-1 fund as of June 2018. The key points are:
1) The fund's net asset value grew 8.58% year-to-date as of June 2018, outperforming the Jakarta Composite Index which fell 8.75% over the same period.
2) The fund maintains a diversified portfolio with a focus on companies with strong fundamentals, and employs strategies like tactical allocation and momentum trading.
3) The top 5 sector allocations are trade and services, basic industry, property, consumer goods, and miscellaneous industry, making up over 70% of the portfolio.
The document provides a quarterly report from Conquest Strategies, LLC on their MidCap portfolio for Q4 2015. It summarizes the strategy, investment objective, and performance for the quarter and year. While the portfolio underperformed the benchmarks for the quarter, it outperformed for the year. The report discusses sector allocations and top holdings, noting increases to utilities and healthcare. It provides analysis of selected positions and the outlook.
Ride the Short Duration Wave - June 2019iciciprumf
Triggers to watch out for -
Current situation in the Fixed Income space
Our Outlook on what lies ahead
Segment of the yield curve, which stands to benefit
Read the full document to know more.
This document summarizes an investment note on Access Bank's recent $300 million Eurobond issuance and its bonds maturing in 2021. It discusses the bank's strong financial performance in recent years and stable asset quality. While the new bond issue will help refinance existing debt, its higher yield may reduce earnings from currency swap assets. The note recommends allowing time for the new bond's price to stabilize before investing.
ICICI Prudential Equity Savings Fund Series 1- Presentationiciciprumf
This product is suitable for investors seeking a long term wealth creation solution through a close-ended equity scheme that invests in stocks specified under the Rajiv Gandhi Equity Savings Scheme and aims to generate capital appreciation. It carries a high risk as per the product labeling.
CardinalStone Research - Banking sector update-where will the dust settle (2)Clement Adewuyi
The document analyzes the potential impact of further depreciation of the Nigerian naira on the capital adequacy ratios of Nigerian banks. It finds that based on half-year 2016 results, five out of seven banks saw declines in their capital adequacy ratios following the 42% devaluation in June 2016. Simulations of capital adequacy at exchange rates of N305, N350 and N400 to the dollar indicate that only a few banks would remain above regulatory minimums of 15% at higher exchange rates. The author believes continued naira depreciation could significantly erode bank capital and negatively impact the financial system.
This document provides a 6-month report for the HPAM Ultima Ekuitas-1 fund as of June 2018. The key points are:
1) The fund's net asset value grew 8.58% year-to-date as of June 2018, outperforming the Jakarta Composite Index which fell 8.75% over the same period.
2) The fund maintains a diversified portfolio with a focus on companies with strong fundamentals, and employs strategies like tactical allocation and momentum trading.
3) The top 5 sector allocations are trade and services, basic industry, property, consumer goods, and miscellaneous industry, making up over 70% of the portfolio.
The document provides a quarterly report from Conquest Strategies, LLC on their MidCap portfolio for Q4 2015. It summarizes the strategy, investment objective, and performance for the quarter and year. While the portfolio underperformed the benchmarks for the quarter, it outperformed for the year. The report discusses sector allocations and top holdings, noting increases to utilities and healthcare. It provides analysis of selected positions and the outlook.
Ride the Short Duration Wave - June 2019iciciprumf
Triggers to watch out for -
Current situation in the Fixed Income space
Our Outlook on what lies ahead
Segment of the yield curve, which stands to benefit
Read the full document to know more.
This document summarizes an investment note on Access Bank's recent $300 million Eurobond issuance and its bonds maturing in 2021. It discusses the bank's strong financial performance in recent years and stable asset quality. While the new bond issue will help refinance existing debt, its higher yield may reduce earnings from currency swap assets. The note recommends allowing time for the new bond's price to stabilize before investing.
ICICI Prudential Equity Savings Fund Series 1- Presentationiciciprumf
This product is suitable for investors seeking a long term wealth creation solution through a close-ended equity scheme that invests in stocks specified under the Rajiv Gandhi Equity Savings Scheme and aims to generate capital appreciation. It carries a high risk as per the product labeling.
CardinalStone Research - Banking sector update-where will the dust settle (2)Clement Adewuyi
The document analyzes the potential impact of further depreciation of the Nigerian naira on the capital adequacy ratios of Nigerian banks. It finds that based on half-year 2016 results, five out of seven banks saw declines in their capital adequacy ratios following the 42% devaluation in June 2016. Simulations of capital adequacy at exchange rates of N305, N350 and N400 to the dollar indicate that only a few banks would remain above regulatory minimums of 15% at higher exchange rates. The author believes continued naira depreciation could significantly erode bank capital and negatively impact the financial system.
India Strategy: All eyes on growth - Prabhudas LilladherIndiaNotes.com
- The document discusses India's strategy and top investment ideas. It provides an overview of key macroeconomic factors in India such as growth, inflation, monsoon, and the current account deficit. It also reviews global and Indian market performance. The document recommends remaining overweight on financial, automobile, and infrastructure stocks, and maintains a neutral stance on healthcare, IT, and capital goods. It highlights several companies as top picks including HDFC Bank, SBI, Axis Bank, and L&T.
CMC has recent healthy demand environment across the IT space, Narnolia Securities Limited positive for the "BUY" view on the stock and we revise our target price from Rs1490 to Rs1690.
The document discusses the strong performance of the Indian stock market after the COVID-19 pandemic. It notes that economic activity and corporate profits are recovering. Some sectors have surpassed pre-pandemic levels while others are recovering gradually. Risks like a potential third wave, rising inflation, and global factors could impact the recovery. The fund manager believes the market rally can continue if COVID containment accelerates and as economic growth remains strong. However, valuations appear elevated and returns may moderate going forward. The portfolio aims to provide value through a focus on quality companies with strong earnings growth at reasonable prices.
How do investors pick the winning asset class? What is the importance of asset allocation and how do you build an effective asset allocation strategy? Through this deck, find answers to the benefits of equity, debt and gold assets and how does one select mutual funds to fulfill long term goals.
www.Quantumamc.com
- US stock markets rose last week after the Fed clarified it was not rushing to taper QE3 stimulus.
- India's industrial production contracted 1.6% in May, below expectations, due to weak manufacturing.
- Earnings season has started positively for Indian IT and private banks, with forecast growth of 0-4% and 15-20% respectively.
Q2FY15: Hold Federal Bank for a target of Rs156 - Sushil FinanceIndiaNotes.com
- Federal Bank reported decent quarterly results with credit growth of 15% and stable asset quality. Net interest income grew 6% year-over-year due to advances growth and stable margins.
- Advances grew 15% year-over-year across segments like agriculture, retail, and SME. Deposits grew 14% year-over-year. Asset quality remained stable with gross and net NPAs of 2.1% and 0.66% respectively.
- The analyst maintains a 'Hold' rating with a target price of Rs. 156, expecting continued profitable growth and stable asset quality.
Narnolia Securities Limited believe Bank of Baroda would rally more because of trading at lower side despite of index is running at all time high. But with this fundamental Bank of Baroda would trade in range of Rs.625 to Rs.700 depending upon sentiment as per our view.
The RBI recently cut interest rates by 50 basis points, signaling a change in its tight monetary policy. While lower rates will benefit many sectors, the RBI governor warned against expecting immediate further cuts until inflation decreases significantly. Last week, markets were flat with some volatility, and key company results like HDFC Bank met expectations while RIL profits declined. This week, markets will watch the US Federal Reserve's policy meeting for any signs of further quantitative easing measures. European debt issues also remain a key uncertainty.
- The Indian stock market rose last week as the rupee stabilized around 65 levels against the dollar due to measures by the new RBI governor to provide short-term support to the currency.
- Factory activity in India contracted for the first time in over four years in August, while euro zone sentiment turned positive for the first time in more than two years.
- The report recommends remaining cautious on banking stocks and prefers sectors like IT, pharma, FMCG and telecom.
IndusInd Bank delivers strong set of numbers in Q4; AccumulateIndiaNotes.com
Indusind Bank Ltd. reported strong quarterly results for the quarter ending March 2015, with healthy growth in advances, net interest income, and profit after tax. Asset quality improved slightly with gross non-performing assets declining to 0.8% from 1.0% in the previous quarter. The bank expects further improvement in asset quality and margins going forward as the business mix shifts toward retail lending and CASAs increase. The analyst maintains an 'Accumulate' rating and raises the target price to Rs. 960 based on positive fundamentals and growth prospects.
Goldmoney Investor Presentation February 2021Goldmoney Inc.
This document contains an investor presentation for Goldmoney Inc. It discusses Goldmoney's mission to build a safe financial service focused on precious metals and its subsidiaries that help broaden access to physical gold. Goldmoney follows a return on metal weight model where its precious metal position grows over time as the business earns metals. Recent financial highlights show increasing revenue, profits, and client assets under custody. The corporate metal position reached a record high.
- The RBI lowered interest rates last week but further cuts may be limited due to global and local factors like the US Federal Reserve's expected interest rate increases. If the Fed raises rates, emerging markets like India cannot lower rates aggressively.
- Monsoon rainfall is important but full effects won't be known until mid-June. Inflation expectations and weak economic data point to challenges for the equity market. Government capital expenditures will be key as corporate balance sheets limit private investment.
- Tactically, export sectors like IT and pharma that benefit from rupee weakness are preferred, while private banks offer long-term potential after declines and PSU banks are a value opportunity over 5 years.
The equity markets were largely flat last week, rising only 0.2%. The RBI significantly tightened liquidity measures to support the falling rupee, increasing borrowing rates and capping overnight loans. This was an attempt to stem the rupee's 10% depreciation against the dollar over the last few months. Most private banks reported strong profits but also increasing non-performing assets. Global markets rose as US banks had strong earnings and the Fed indicated it was not yet ready to reduce monetary stimulus.
- The document provides an investment outlook and strategy for 2022, discussing themes of survival, sustainability, and the changing global order.
- It suggests 2022 may see a continuation of 2021 trends but different outcomes for investors as central banks withdraw support. Moderate returns should be expected.
- The new normal may include continued remote working, ESG as standard practice, and electric vehicles, while lower growth, rates, and inflation become accepted.
Goldmoney Investor Presentation August 2020Goldmoney Inc.
The document is an investor deck for Goldmoney, a company that provides precious metals custody and trading services. It summarizes Goldmoney's mission to build a safe financial service focused on precious metals and its subsidiaries that help expand access to and use of physical gold and precious metals. Key points include Goldmoney's global vault network that stores over $2.8 billion in client assets, its trading platform and services available through the Goldmoney Holding, and its investment in Menē, a jewelry company that sells gold and platinum by weight.
The markets have started on a somber note. As discussed in the past that markets were at tiring levels of 8600, a 3% correction was expected in last one month. it would be an approximate fall of 7% after today’s correction which is in line with developed markets. The US markets fall of ~7.5% in last one month has impacted Y-O-Y returns from 17% to 3%. India on the other hand, is considered to be an outperformer as compared to other emerging markets like Brazil, Australia, Indonesia, etc however a further correction of 3% - 4% cannot be ruled out. The mid cap index is fairly resilient but people should stay away from low quality high beta mid cap stocks and if investments are existing then profit booking followed by exiting these stocks is suggested.
Goldmoney investor presentation November 2020Goldmoney Inc.
Goldmoney Inc. is a precious metals focused financial services company. It provides online precious metals custody and trading services through its Goldmoney Holding platform. The company reported record quarterly revenue and net income in Q2 2021, driven by strong growth across its business lines including Goldmoney.com, SchiffGold, and its investment in Menē Inc. Goldmoney has a global network of vaults storing over $2.5 billion in client assets and pursues a business model that aims to generate returns through accumulating precious metals over time.
The document provides an equity market and macroeconomic overview for the week of January 6-11, 2014:
- Indian IT stocks performed well due to strong revenue growth from North America and Europe. The sector is expected to see further price-earnings multiple expansion.
- Inflation numbers for India are expected to decline slightly from the previous month's high levels. The RBI policy is expected to keep rates stable given muted growth and sticky inflation.
- Chinese trade surplus declined more than expected in December, missing forecasts. Eurozone inflation dipped slightly. The US unemployment rate fell but manufacturing activity slowed.
The document discusses why large cap stocks are preferable for investment in the IDFC Large Cap Fund. It notes that large caps have potential for upside returns with relatively low volatility compared to mid and small caps. Large caps tend to have strong customer bases, high liquidity, good corporate governance and experienced management which allows them to better withstand difficult market conditions. The fund employs a strategy of investing in the right sectors, sector leaders, and opportunistically in mid/small caps. It is currently overweight in healthcare and telecom and underweight in financials, energy and utilities. The document promotes the IDFC Large Cap Fund as benefiting from predominantly investing in leading large cap companies while having an active management approach.
Interbank call money rates remained mostly below the RBI’s repo rate of 5.40% in the month owing to comfortable liquidity in the system, prompting the central bank to conduct frequent reverse repo auctions and provide banks with idle funds an opportunity to invest for a short period.
Read the full document to know more.
India Strategy: All eyes on growth - Prabhudas LilladherIndiaNotes.com
- The document discusses India's strategy and top investment ideas. It provides an overview of key macroeconomic factors in India such as growth, inflation, monsoon, and the current account deficit. It also reviews global and Indian market performance. The document recommends remaining overweight on financial, automobile, and infrastructure stocks, and maintains a neutral stance on healthcare, IT, and capital goods. It highlights several companies as top picks including HDFC Bank, SBI, Axis Bank, and L&T.
CMC has recent healthy demand environment across the IT space, Narnolia Securities Limited positive for the "BUY" view on the stock and we revise our target price from Rs1490 to Rs1690.
The document discusses the strong performance of the Indian stock market after the COVID-19 pandemic. It notes that economic activity and corporate profits are recovering. Some sectors have surpassed pre-pandemic levels while others are recovering gradually. Risks like a potential third wave, rising inflation, and global factors could impact the recovery. The fund manager believes the market rally can continue if COVID containment accelerates and as economic growth remains strong. However, valuations appear elevated and returns may moderate going forward. The portfolio aims to provide value through a focus on quality companies with strong earnings growth at reasonable prices.
How do investors pick the winning asset class? What is the importance of asset allocation and how do you build an effective asset allocation strategy? Through this deck, find answers to the benefits of equity, debt and gold assets and how does one select mutual funds to fulfill long term goals.
www.Quantumamc.com
- US stock markets rose last week after the Fed clarified it was not rushing to taper QE3 stimulus.
- India's industrial production contracted 1.6% in May, below expectations, due to weak manufacturing.
- Earnings season has started positively for Indian IT and private banks, with forecast growth of 0-4% and 15-20% respectively.
Q2FY15: Hold Federal Bank for a target of Rs156 - Sushil FinanceIndiaNotes.com
- Federal Bank reported decent quarterly results with credit growth of 15% and stable asset quality. Net interest income grew 6% year-over-year due to advances growth and stable margins.
- Advances grew 15% year-over-year across segments like agriculture, retail, and SME. Deposits grew 14% year-over-year. Asset quality remained stable with gross and net NPAs of 2.1% and 0.66% respectively.
- The analyst maintains a 'Hold' rating with a target price of Rs. 156, expecting continued profitable growth and stable asset quality.
Narnolia Securities Limited believe Bank of Baroda would rally more because of trading at lower side despite of index is running at all time high. But with this fundamental Bank of Baroda would trade in range of Rs.625 to Rs.700 depending upon sentiment as per our view.
The RBI recently cut interest rates by 50 basis points, signaling a change in its tight monetary policy. While lower rates will benefit many sectors, the RBI governor warned against expecting immediate further cuts until inflation decreases significantly. Last week, markets were flat with some volatility, and key company results like HDFC Bank met expectations while RIL profits declined. This week, markets will watch the US Federal Reserve's policy meeting for any signs of further quantitative easing measures. European debt issues also remain a key uncertainty.
- The Indian stock market rose last week as the rupee stabilized around 65 levels against the dollar due to measures by the new RBI governor to provide short-term support to the currency.
- Factory activity in India contracted for the first time in over four years in August, while euro zone sentiment turned positive for the first time in more than two years.
- The report recommends remaining cautious on banking stocks and prefers sectors like IT, pharma, FMCG and telecom.
IndusInd Bank delivers strong set of numbers in Q4; AccumulateIndiaNotes.com
Indusind Bank Ltd. reported strong quarterly results for the quarter ending March 2015, with healthy growth in advances, net interest income, and profit after tax. Asset quality improved slightly with gross non-performing assets declining to 0.8% from 1.0% in the previous quarter. The bank expects further improvement in asset quality and margins going forward as the business mix shifts toward retail lending and CASAs increase. The analyst maintains an 'Accumulate' rating and raises the target price to Rs. 960 based on positive fundamentals and growth prospects.
Goldmoney Investor Presentation February 2021Goldmoney Inc.
This document contains an investor presentation for Goldmoney Inc. It discusses Goldmoney's mission to build a safe financial service focused on precious metals and its subsidiaries that help broaden access to physical gold. Goldmoney follows a return on metal weight model where its precious metal position grows over time as the business earns metals. Recent financial highlights show increasing revenue, profits, and client assets under custody. The corporate metal position reached a record high.
- The RBI lowered interest rates last week but further cuts may be limited due to global and local factors like the US Federal Reserve's expected interest rate increases. If the Fed raises rates, emerging markets like India cannot lower rates aggressively.
- Monsoon rainfall is important but full effects won't be known until mid-June. Inflation expectations and weak economic data point to challenges for the equity market. Government capital expenditures will be key as corporate balance sheets limit private investment.
- Tactically, export sectors like IT and pharma that benefit from rupee weakness are preferred, while private banks offer long-term potential after declines and PSU banks are a value opportunity over 5 years.
The equity markets were largely flat last week, rising only 0.2%. The RBI significantly tightened liquidity measures to support the falling rupee, increasing borrowing rates and capping overnight loans. This was an attempt to stem the rupee's 10% depreciation against the dollar over the last few months. Most private banks reported strong profits but also increasing non-performing assets. Global markets rose as US banks had strong earnings and the Fed indicated it was not yet ready to reduce monetary stimulus.
- The document provides an investment outlook and strategy for 2022, discussing themes of survival, sustainability, and the changing global order.
- It suggests 2022 may see a continuation of 2021 trends but different outcomes for investors as central banks withdraw support. Moderate returns should be expected.
- The new normal may include continued remote working, ESG as standard practice, and electric vehicles, while lower growth, rates, and inflation become accepted.
Goldmoney Investor Presentation August 2020Goldmoney Inc.
The document is an investor deck for Goldmoney, a company that provides precious metals custody and trading services. It summarizes Goldmoney's mission to build a safe financial service focused on precious metals and its subsidiaries that help expand access to and use of physical gold and precious metals. Key points include Goldmoney's global vault network that stores over $2.8 billion in client assets, its trading platform and services available through the Goldmoney Holding, and its investment in Menē, a jewelry company that sells gold and platinum by weight.
The markets have started on a somber note. As discussed in the past that markets were at tiring levels of 8600, a 3% correction was expected in last one month. it would be an approximate fall of 7% after today’s correction which is in line with developed markets. The US markets fall of ~7.5% in last one month has impacted Y-O-Y returns from 17% to 3%. India on the other hand, is considered to be an outperformer as compared to other emerging markets like Brazil, Australia, Indonesia, etc however a further correction of 3% - 4% cannot be ruled out. The mid cap index is fairly resilient but people should stay away from low quality high beta mid cap stocks and if investments are existing then profit booking followed by exiting these stocks is suggested.
Goldmoney investor presentation November 2020Goldmoney Inc.
Goldmoney Inc. is a precious metals focused financial services company. It provides online precious metals custody and trading services through its Goldmoney Holding platform. The company reported record quarterly revenue and net income in Q2 2021, driven by strong growth across its business lines including Goldmoney.com, SchiffGold, and its investment in Menē Inc. Goldmoney has a global network of vaults storing over $2.5 billion in client assets and pursues a business model that aims to generate returns through accumulating precious metals over time.
The document provides an equity market and macroeconomic overview for the week of January 6-11, 2014:
- Indian IT stocks performed well due to strong revenue growth from North America and Europe. The sector is expected to see further price-earnings multiple expansion.
- Inflation numbers for India are expected to decline slightly from the previous month's high levels. The RBI policy is expected to keep rates stable given muted growth and sticky inflation.
- Chinese trade surplus declined more than expected in December, missing forecasts. Eurozone inflation dipped slightly. The US unemployment rate fell but manufacturing activity slowed.
The document discusses why large cap stocks are preferable for investment in the IDFC Large Cap Fund. It notes that large caps have potential for upside returns with relatively low volatility compared to mid and small caps. Large caps tend to have strong customer bases, high liquidity, good corporate governance and experienced management which allows them to better withstand difficult market conditions. The fund employs a strategy of investing in the right sectors, sector leaders, and opportunistically in mid/small caps. It is currently overweight in healthcare and telecom and underweight in financials, energy and utilities. The document promotes the IDFC Large Cap Fund as benefiting from predominantly investing in leading large cap companies while having an active management approach.
Interbank call money rates remained mostly below the RBI’s repo rate of 5.40% in the month owing to comfortable liquidity in the system, prompting the central bank to conduct frequent reverse repo auctions and provide banks with idle funds an opportunity to invest for a short period.
Read the full document to know more.
Interbank call money rates remained below the RBI’s repo rate of 5.75% during most parts of the month as systemic liquidity remained in surplus amid periodic repo auctions conducted by the central bank. The RBI also conducted frequent reverse repo auctions to drain away excess liquidity and give the opportunity to banks to park their idle funds.
Read the full document to know more.
- Yes Bank is an Indian private sector bank that has grown to become the 4th largest private bank in India. It has over 600 branches with a focus in Northern and Western India.
- The document recommends Yes Bank as a strong buy due to its strong financials, shift towards a retail-led strategy that will boost profit margins, and potential interest rate cuts that will support loan growth.
- Yes Bank has successfully increased its lower-cost current and savings account deposits while maintaining strong asset quality and profitability. It is poised for further growth as it expands its retail presence.
Interbank call money rates found itself below the Reserve Bank of India (RBI)’s repo rate of 6.00% for most parts of the month as systemic liquidity remained comfortable amid periodic repo auctions conducted by the RBI. However, intermittent tightness in call rates was seen on fund demand from banks to meet their mandatory reserve requirements. Meanwhile, the apex bank sporadically offered banks the opportunity to park funds through some reverse repo auctions. Read the full document to know more.
Riding the Tide: Navigating Through a Rising Interest Rate Environmenticiciprumf
We highlight our view on the rise in interest rates and the measures we have taken in our debt scheme portfolios to sail through the volatility in the fixed-income market. Check out the PDF to know more.
Karur Vysya Bank is a privately held Indian bank, headquartered in Karur in Tamil Nadu. The company operates in four business segments: treasury operations, corporate/ wholesale banking operations, retail banking operations and other banking operations. The company's investments are categorized into three categories, held to maturity, held for trading and available for sale. Karur Vysya Bank
This document provides a fund summary and performance report for the KB Star Value Focus Korea Equity Fund as of March 31, 2019. It summarizes that the fund focuses on stock selection in Korea and is managed using the same strategy as its South Korea-domiciled counterpart. It outperformed its benchmark, the KOSPI index, over the past month, year, and since inception. The top sector allocations are materials, industrials, and consumer discretionary. The top three holdings are in chemicals, zinc, and conglomerates.
This document provides a fund summary and performance report for the KB Star Value Focus Korea Equity Fund as of March 31, 2019. It summarizes that the fund focuses on stock selection in Korea and is managed using the same strategy as its South Korea-domiciled counterpart. It outperformed its benchmark, the KOSPI index, over the past month, year, and since inception. The top sector allocations are materials, industrials, and consumer discretionary. The top three holdings are in chemicals, zinc, and conglomerates.
- Kotak Mahindra Bank reported a 6% miss in its 3QFY15 consolidated profit compared to estimates, as competitive pressures impacted its non-lending businesses.
- The bank's lending business was in-line with estimates, with strong loan and fee growth driving a 37% rise in standalone profit. However, lower net interest margins weighed on performance.
- Asset quality remained stable, with gross and net NPAs of 1.9% and 1% respectively. Loan growth was healthy at 25% year-on-year excluding commercial vehicles.
- Non-banking subsidiaries like investment banking and asset management reported losses due to higher distribution costs and competitive pressures.
At the CMP of Rs 33, the stock is trading at an Adj P/BV of 1.3x and 1.1x for FY15E and FY16E, respectively. With the new government stepping-up reforms and making efforts to remove the bottlenecks in the economy, we expect the economic growth to pick up going forward. Consequently, we expect the strong growth momentum seen in SIB over past few years to continue. We expect advances and deposits to grow at a CAGR of ~19% each over the forecasted period of FY14-16E.
With business further expected to grow at CAGR of 19.5% over FY14-16E; NIMs remaining stable at ~3.0% and cost-to-income ratio improving to ~45% (currently ~50%), we expect a robust PAT growth of 22.6% CAGR over FY14-16E to Rs 763 crore.
Asset quality of SIB has improved in FY14 with GNPA and Net NPA standing at 1.2% and 0.8% in FY14 against 1.4% and 0.8% in FY13, respectively (which compares favourably with peers).
On the capital adequacy front, SIB is comfortably placed to support the future business needs of the bank over the period FY14-16E. The management has stated that it does not require any Tier-I capital funding during the current year. However, it plans to raise Tier-II capital of Rs 200 crore in FY15 to fund future growth.
Banking Sector Q4FY15 preview: Asset quality will remain under pressureIndiaNotes.com
- Loan growth for state-owned banks is expected to be moderate at 10-11% YoY due to weak corporate demand and capital conservation efforts, while private banks may see higher growth of 18-20% due to strong retail loans.
- Asset quality is likely to remain under pressure with high slippages of 2.4% and increased restructuring as the RBI forbearance period ends. Stress additions will be a key factor for state-owned bank earnings.
- Net interest margins are expected to be stable for most banks, while treasury gains from falling bond yields and provision reversals may support earnings. However, retail fees growth and high operating expenses will impact state-owned bank profits.
- The
Interbank call money rates remained below the RBI’s repo rate of 6.25% during the month as the RBI conducted periodic repo auctions to infuse liquidity in the system. Meanwhile, the central bank accepted the $5 billion it targeted from banks at its currency swap auction to ease liquidity as against the bids received worth $16.31 billion.
Read the full document to know more.
IndusInd Bank continues to demonstrate strong growth in both its consumer finance and corporate finance segments. Management expects medium-term loan growth to be 25-30% and for consumer finance to remain around 50% of the total loan book. The bank's commercial vehicle loans, which make up around 24% of its total portfolio, have seen strong growth and stable asset quality despite sector slowdown. Asset quality across the consumer finance segment has exhibited an improving trend. The bank has also increased its focus on new products like loan against property, which is showing better than expected growth. The report upgrades the bank's FY14 EPS estimate by 8% on expectations of higher margins from recent capital raising and an improving CASA ratio.
The document provides a market and macroeconomic update for September 2019. Interbank lending rates remained near the RBI's repo rate of 5.40% due to ample liquidity in the system. Currency in circulation and bank credit growth increased year-over-year in August, while deposit growth was moderate. Government bond yields declined over the month but increased toward the end due to slowing growth concerns.
Q4FY14 Result: Bajaj Finance continues to reap the benefits of healthy consum...IndiaNotes.com
Bajaj Finance (BAF) reported a 11% year-over-year increase in 4QFY14 profit at INR1.82 billion, which was below estimates due to a decline in net interest margins from shifting loan mix to lower-yielding mortgages and higher operating expenses from ongoing investments in new business lines. Asset quality remained healthy with non-performing assets stable at 1.18% despite a corporate loan slippage. The report maintains a "Buy" rating with a target price of INR2,018, but reduces FY15/16 earnings estimates by 5-6% to factor lower margins and higher costs from the loan mix shift and investments.
This document provides an analysis of the Indian fixed income market and recommendations for positioning bond portfolios. It begins with a review of historical yield movements and the current high levels of term premium and spread premium. The document then recommends adding duration to benefit from higher term premiums and adding higher-rated corporate bonds to benefit from wider spread premiums. It provides examples of portfolio adjustments made across several ICICI Prudential bond funds to increase government bond and Treasury bill holdings and add exposure to AA-rated corporate bonds. The document concludes with fund-specific positioning strategies and takeaways for various maturity categories.
This document provides an initiating coverage report on State Bank of India by Arihant Capital Markets. It recommends buying the stock with a target price of Rs. 456, representing an upside of 37% from the current market price. The report highlights SBI's improving asset quality, falling deposit rates due to rate cuts, healthy recoveries from resolving distressed assets, and growing retail portfolio as reasons for the positive outlook. Key financial projections show rising profits driven by loan growth and margin expansion over the next two years.
Similar to Banking & Financial Services: Q4FY15 Result Preview (20)
The document summarizes financial information for GlaxoSmithKline Consumer Healthcare Ltd for quarters ending June 2015 and September 2015E. Key highlights include:
- For Q1 FY16 ending June 2015, net profit increased 19.13% YoY to Rs. 1550.10 million, net sales grew 8.18% YoY, and operating profit rose 20.64% YoY.
- Estimates for Q2 FY16 ending September 2015 show net sales growth to Rs. 11850.30 million and net profit increasing to Rs. 1775.02 million.
- At the current market price of Rs. 6270.20, the stock trades at a P/E ratio of 40.
Apollo Tyres approves further expansion of the Truck & Bus radial tyre capacityIndiaNotes.com
Apollo Tyres reported a 12.4% decrease in net sales but a 27.5% increase in net profit for Q1 FY16 compared to Q1 FY15. EBITDA rose 15.4% and profit margins increased 319 and 447 basis points respectively. Apollo Tyres approved expanding its Chennai truck and bus radial tire capacity and raising Rs. 20,000 million in debt for ongoing expansions. Analyst estimates see Apollo Tyres' operating profit and PAT growing at a CAGR of 13% and 23% from FY14 to FY17 respectively.
Grasim Industries reports improved performance in Q1FY16IndiaNotes.com
Grasim Industries reported improved performance for the quarter ended June 2015, with consolidated net sales up 7% to Rs. 8,599 crore. Operating margin improved 130 basis points to 16.5% due to lower raw material and power costs. However, operating profit grew only 16% to Rs. 1,417 crore due to higher interest and depreciation costs. Net profit declined 1% to Rs. 484.67 crore. Key segments like viscose staple fibre saw revenue increase 15% and EBITDA surge 72% on higher sales volumes and lower input costs. The cement subsidiary UltraTech reported 7% revenue growth but net profit fell 5% to Rs. 591 crore.
The document provides a technical analysis recommendation for buying Lupin stock. It recommends buying between price levels of 1790 and 1820 with a stop-loss of 1660. The analysis notes that shorter term moving averages have converged and the RSI oscillator is showing a positive signal in the mid-range, indicating buy signals on both technical indicators.
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Thermax Limited is a leading energy and environment solutions provider operating globally. In Q1 FY2016, the company's net sales increased 19.27% to Rs. 10011.90 million and net profit increased 48.96% to Rs. 616.78 million compared to the same period last year. The order balance on June 30, 2015 stood at Rs. 42750 million, down 18% from the previous year. The company plans to set up new manufacturing facilities. Analysts recommend buying the stock with a target price of Rs. 1145, citing expected growth in earnings.
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Banking & Financial Services: Q4FY15 Result Preview
1.
April 10, 2015 36
Jan‐Mar 2015 Earnings Preview
Nitin Kumar
nitinkumar@plindia.com
+91‐22‐6632 2236
Pritesh Bumb
priteshbumb@plindia.com
+91‐22‐6632 2232
Top picks
ICICI Bank
HDFC Bank
State Bank of India
Yes Bank
Banking & Financial Services
It’s a challenging quarter, particularly for PSUs: With loan growth remaining
elusive and asset quality pressures persisting, we believe that it is going to be a
challenging quarter for the financial services sector, especially for the state
owned banks. Several banks have already guided for a spike in fresh
restructuring, while slippages may moderate for PSUs against a high base, but
nevertheless will remain elevated. On the macro front, bond yields have shown
healthy easing, crude price has fallen sharply, inflation trajectory appears under
control but demand/growth environment remains weak. Treasury gains which
helped support earnings in Q3FY15 will also be modest as bond yields have
largely been stable. While we remain constructive on the sector from a one‐year
perspective, we believe that near‐term stock performance would depend more
on an on‐ground recovery.
We expect modest uptick in credit growth in FY16E as the credit growth to
nominal GDP multiple is most levered to industrial growth, which is likely to
improve only gradually. Also, continued acts of de‐leveraging and credit
substitution will likely affect overall growth. We expect RBI to continue with
calibrated rate easing as there are near‐term risks from recent unseasonal rains
and rising possibility of El‐Nino which can again drive up inflation.
Earnings growth to improve from H2FY16E: PPOP growth has been slowing for
all banks including private sector and we expect economic recovery to be fairly
gradual. We believe that PSU banks will fully provide for employee provisions
(wage, pension, gratuity & mortality) over H1FY16 as they receive inputs from
the actuaries and will stage a modest recovery over H2FY16E. We also estimate
credit cost to decline by ~25bps each over next two years for SOE banks which
will further aid earnings growth.
Q4FY15 Preview:
(1) Private Banks – PPoP growth is likely to moderate further as loan/fee
growth remains soft, while margins are unlikely to expand (except for IIB &
YES). We expect controlled deterioration in asset quality (particularly ICICIBC
which has already guided for elevated trend in stressed asset formation).
However, any negative asset quality shocks are highly unlikely.
(2) PSUs ‐ Earnings trend to remain muted as revenue progression remains
weak, while elevated opex/credit cost further act as a drag. Margins are
expected to remain stable at current low levels and are likely to remain there
with prospects of rate cut over Q1FY16. Most bank’s guidance (UNBK, PNB,
BOI) on asset quality is concerning on both fresh slippages and the NPL
formation from restructured assets as restructuring deadline ended in
Q4FY15. Treasury gains will also be modest unlike the previous quarter,
given stable bond yields during the quarter.
(3) NBFCs ‐ Although wholesale rates have eased significantly, loan growth is
yet to pick up meaningfully and will thus delay any material improvement in
margins. LICHF will report some NIM uptick (incremental spreads have
already improved), SHTF’s asset quality will plateau. MMFS to report better
asset quality trends, given a seasonally strong quarter, though macro hasn’t
improved much.
2.
April 10, 2015 37
Jan‐Mar 2015 Earnings Preview
Overall, we expect ~8.4% YoY PAT growth for the sector, with ~14% for Pvt Banks
and ~2% for PSBs.
Asset quality – pressures to intensify: Pressure on asset quality is expected to
increase as most PSU banks guided for higher restructuring and slippage trend,
particularly from existing pool of restructured assets. Also, this being the last
quarter to avail lower provisioning benefits on fresh restructuring, most banks
will be more forthcoming in restructuring troubled accounts, in our view. PSBs
had resorted to high sale of NPA to ARCs in FY14 which has been lower in
9MFY15; however, we expect some NPAs to be sold in Q4FY15.
Our key stock ideas:
ICICI Bank (BUY): (+) Like Axis, risk in power/large corporate book low, especially
in asset class with high loss, given default (+) Retail SME portfolio stable despite
significant stress. (+) Subsidiaries are gaining scale and their contribution to
overall profitability is improving. (+) Relaxation in FDI limit in insurance is a
positive trigger. (‐) On a relative basis, asset quality risks appear high due to
lumpy exposure (‐) PPOP moderation to continue despite better fee growth as
there is limited room for further margin expansion.
HDFC Bank (BUY): (+) Best placed to overcome current slowdown – Both opex
and credit cost flexibility high. (+) Fixed rate book to aid margins, while benign
earning base will help bank generate ~25% earnings CAGR over FY16‐17E (+)
Asset quality holding up (‐) Slowing PAT growth and uptick in credit cost.
Yes Bank (BUY): (+) Earnings traction to remain strong led by loan growth
recovery and improving margins (higher cut‐off balance limit for 7% SA rate) (+)
Asset quality remains stable with strong coverage ratio (+) Continued traction in
CASA mix and pick‐up in retail loan growth (+) Strongly capitalized to benefit
from economic turnaround. We are rolling forward our valuations to FY17E
with a revised PT of Rs930 (from Rs815), which corresponds to 2.5x FY17E ABV.
Federal Bank (BUY): (+) Stability in large corporate portfolio as well after steady
performance on SME/Retail (+) Slower branch expansion to aid in cost
optimization (+) Loan growth to improve after an year of consolidation, while
management’s focus on broad‐based fee income yields results (‐) Growth still
below par and hence, leveraging up will take longer.
PSU banks ‐ Prefer SBI on cleaner Balance sheet and healthy earnings: (+) PPOP
growth likely to improve on pick‐up in loan growth and continued benefits from
cost optimization. (+) Asset quality is showing an improving trend over past two
quarters and we estimate credit cost to decline over FY16‐17E. (+) Strong
liability franchise + reasonable valuations (+) SBI is strongly capitalized and has
lower restructuring levels. (‐) Corporate book riskier v/s private peers. (‐) Under‐
provisioned B/S + limited P&L support in this credit cycle (low
recoveries/upgrades).
Shriram/LICHF preferred NBFC picks: (+) SHTF: Profitability has bottomed out –
Initial signs of a pick‐up in loan growth, while credit cost likely to inch lower in
H2FY15 (+) Margins likely to expand as funding cost has declined (+) Regulatory
overhang on NPL recognition is now done away with – Recent up‐move limits
risk‐reward though (2) LICHF: Will be beneficiary of lower rates and strong
competitive advantage, given bank’s inability to lend below base rate +
reasonable valuations.
4.
April 10, 2015 39
Jan‐Mar 2015 Earnings Preview
Loan growth has come off to sub ~10% as corporate have shifted preference to Bond
funding
8.0%
11.0%
14.0%
17.0%
20.0%
23.0%
26.0%
29.0%
Dec‐07
Mar‐08
Jun‐08
Sep‐08
Dec‐08
Mar‐09
Jun‐09
Sep‐09
Dec‐09
Mar‐10
Jun‐10
Sep‐10
Dec‐10
Mar‐11
Jun‐11
Sep‐11
Dec‐11
Mar‐12
Jun‐12
Sep‐12
Dec‐12
Mar‐13
Jun‐13
Sep‐13
Dec‐13
Mar‐14
Jun‐14
Sep‐14
Dec‐14
Credit growth Deposit growth
Source: RBI, PL Research
Most Banks have cut deposit rates mainly in the longer tenure buckets during the quarter
Cut in peak deposit rate 0‐3M 3‐9M 9‐15M 15‐36M >36M
HDFC Bank 0.00% 0.00% 0.00% 0.00% ‐0.50%
Axis Bank 0.00% 0.00% ‐0.25% ‐0.40% ‐0.40%
ICICI bank 0.00% 0.25% 0.00% 0.00% ‐0.25%
IndusInd bank 0.00% 0.00% ‐0.25% ‐0.15% ‐0.25%
Yes Bank 0.00% ‐0.25% 0.00% ‐0.10% 0.00%
SBI 0.00% 0.00% ‐0.25% ‐0.25% ‐0.50%
Bank of Baroda 0.00% ‐0.10% 0.00% 0.00% ‐0.25%
Bank of India 0.00% 0.00% 0.00% 0.00% ‐0.25%
Punjab National Bank 0.00% 0.00% 0.00% 0.00% ‐0.25%
Union Bank 0.00% 0.00% 0.00% 0.00% 0.00%
Source: Company Data, PL Research *Change over Dec‐14 quarter
SBI has cut its short term deposit rates on high liquidity and lower credit growth
4.00
4.50
5.00
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
SBI 30D SBI 46D SBI 91D SBI 180D SBI 1Yr SBI 3Yr SBI 5Yr
Current Sep‐14
Source: Bloomberg, SBI
Muted credit off take has brought credit
growth in lower double‐digit which is the
lowest since 2001
9.
April 10, 2015 44
Jan‐Mar 2015 Earnings Preview
Stock Performance (Financial Services)
1M 3M 6M 12M 1M 3M 6M 12M
HDFC (1.7) 15.9 28.2 39.2 (2.3) 10.7 18.4 12.0
Infrastructure Development Finance Corporation 2.7 14.3 25.8 41.2 2.1 9.1 16.0 14.1
LIC Housing Finance (1.9) (2.6) 47.6 72.3 (2.5) (7.8) 37.8 45.2
Mahindra & Mahindra Financial Services 4.4 (14.7) (5.6) 9.2 3.8 (19.9) (15.4) (17.9)
Shriram Transport Finance (4.7) 7.1 29.6 45.4 (5.2) 1.9 19.8 18.2
Absolute Relative to Sensex
Source: Bloomberg, PL Research
Banking
Summary Financials ‐ Quarterly (Rs m)
Q4FY15E Q4FY14 YoY gr. (%) Q3FY15 QoQ gr. (%) 12MFY15E 12MFY14 YoY gr. (%)
NII 38,480 31,658 21.6 35,896 7.2 147,017 119,516 23.0
PPP 38,622 32,477 18.9 33,146 16.5 140,135 114,561 22.3
NIM Calculated (%) 3.9 3.8 10 bps 3.9 2 bps 3.5 3.3 21 bps
PAT 21,742 18,423 18.0 18,998 14.4 73,109 62,177 17.6
NII 33,920 31,243 8.6 32,861 3.2 130,219 119,653 8.8
PPP 25,324 25,796 (1.8) 23,390 8.3 95,346 92,910 2.6
NIM Calculated (%) 2.3 2.3 1 bps 2.2 10 bps 1.9 2.0 (8)bps
PAT 8,516 11,728 (27.4) 3,340 155.0 37,245 45,411 (18.0)
NII 28,957 30,473 (5.0) 27,802 4.2 115,867 108,305 7.0
PPP 18,421 19,961 (7.7) 18,654 (1.2) 84,389 84,229 0.2
NIM Calculated (%) 2.2 2.3 (12)bps 2.2 4 bps 1.9 2.1 (22)bps
PAT 4,901 5,575 (12.1) 1,734 182.7 23,715 27,293 (13.1)
NII 6,407 6,251 2.5 5,872 9.1 23,979 22,286 7.6
PPP 3,985 4,200 (5.1) 3,974 0.3 15,572 14,804 5.2
NIM Calculated (%) 3.2 3.0 25 bps 3.0 16 bps 3.0 3.1 (3)bps
PAT 2,297 2,773 (17.1) 2,647 (13.2) 9,550 8,389 13.8
NII 58,289 49,526 17.7 56,999 2.3 221,163 184,826 19.7
PPP 46,691 37,793 23.5 47,786 (2.3) 174,508 143,601 21.5
NIM Calculated (%) 4.3 4.4 (10)bps 4.4 (10)bps 4.1 4.1 (3)bps
PAT 28,387 23,265 22.0 27,945 1.6 103,313 84,784 21.9
NII 49,864 43,565 14.5 48,117 3.6 198,759 164,756 20.6
PPP 51,465 44,535 15.6 50,370 2.2 197,507 165,946 19.0
NIM Calculated (%) 3.4 3.4 7 bps 3.5 (4)bps 3.1 2.9 16 bps
PAT 29,086 26,520 9.7 28,897 0.7 113,652 98,105 15.8
NII 9,261 7,812 18.6 8,614 7.5 35,388 28,907 22.4
PPP 8,578 7,191 19.3 7,738 10.9 32,286 25,960 24.4
NIM Calculated (%) 3.7 3.8 (9)bps 3.9 (13)bps 3.6 3.6 1 bps
PAT 4,995 3,961 26.1 4,472 11.7 18,015 14,080 27.9
ICICI Bank
Axis Bank
Bank of Baroda
Bank of India
Federal Bank
HDFC Bank
IndusInd Bank
Source: Company Data, PL Research
10.
April 10, 2015 45
Jan‐Mar 2015 Earnings Preview
Summary Financials ‐ Quarterly (Rs m)
Q4FY15E Q4FY14 YoY gr. (%) Q3FY15 QoQ gr. (%) 12MFY15E 12MFY14 YoY gr. (%)
NII 5,222 4,713 10.8 4,917 6.2 19,738 17,532 12.6
PPP 3,439 2,500 37.6 2,801 22.8 12,576 11,275 11.5
NIM Calculated (%) 3.5 3.6 (11)bps 3.4 9 bps 3.1 3.0 1 bps
PAT 1,778 1,391 27.8 1,457 22.1 6,470 6,579 (1.6)
NII 7,353 7,012 4.9 6,387 15.1 27,036 26,845 0.7
PPP 4,636 4,814 (3.7) 3,805 21.8 17,240 18,998 (9.3)
NIM Calculated (%) 4.1 4.0 4 bps 3.7 38 bps 3.4 3.6 (19)bps
PAT 1,586 2,506 (36.7) 1,046 51.6 5,656 11,825 (52.2)
NII 11,595 9,665 20.0 10,594 9.4 53,244 48,382 10.0
PPP 7,618 6,071 25.5 7,376 3.3 41,949 37,669 11.4
NIM Calculated (%) 4.9 5.2 (27)bps 4.6 25 bps 4.4 4.5 (7)bps
PAT 5,223 4,072 28.3 4,645 12.4 27,211 22,859 19.0
NII 43,821 40,018 9.5 42,331 3.5 168,899 161,460 4.6
PPP 29,336 31,734 (7.6) 27,507 6.6 115,618 113,845 1.6
NIM Calculated (%) 3.2 3.2 4 bps 3.2 3 bps 2.9 3.1 (25)bps
PAT 9,508 8,064 17.9 7,746 22.8 38,195 33,426 14.3
NII 3,738 3,647 2.5 3,199 16.8 13,929 13,988 (0.4)
PPP 2,252 2,049 9.9 2,194 2.7 9,199 8,843 4.0
NIM Calculated (%) 2.8 3.0 (19)bps 2.5 26 bps 2.4 2.7 (26)bps
PAT 964 1,246 (22.7) 879 9.6 3,872 5,075 (23.7)
NII 141,211 129,028 9.4 137,766 2.5 542,852 492,822 10.2
PPP 106,738 106,278 0.4 92,945 14.8 363,438 321,092 13.2
NIM Calculated (%) 3.7 3.2 53 bps 3.3 38 bps 2.8 2.9 (9)bps
PAT 35,072 30,407 15.3 29,101 20.5 134,992 108,912 23.9
NII 22,103 20,522 7.7 21,212 4.2 88,809 78,793 12.7
PPP 14,522 13,198 10.0 14,653 (0.9) 55,959 52,181 7.2
NIM Calculated (%) 3.0 2.6 40 bps 2.5 45 bps 2.4 2.4 0 bps
PAT 4,690 5,790 (19.0) 3,024 55.1 23,679 16,962 39.6
NII 9,844 7,196 36.8 9,090 8.3 34,913 27,163 28.5
PPP 9,154 6,804 34.5 8,627 6.1 33,478 26,880 24.5
NIM Calculated (%) 3.8 3.1 68 bps 3.6 14 bps 2.9 2.6 34 bps
PAT 5,659 4,302 31.5 5,403 4.7 19,906 16,178 23.0
Union Bank of
India
YES Bank
South Indian Bank
State Bank of India
ING Vysya Bank
Jammu & Kashmir
Bank
Kotak Mahindra
Bank
Punjab National
Bank
Source: Company Data, PL Research
11.
April 10, 2015 46
Jan‐Mar 2015 Earnings Preview
Financial Services
Summary Financials ‐ Quarterly (Rs m)
Q4FY15E Q4FY14 YoY gr. (%) Q3FY15 QoQ gr. (%) 12MFY15E 12MFY14 YoY gr. (%)
NII 24,689 21,410 15.3 20,166 22.4 80,014 70,030 14.3
PPP 26,702 23,831 12.0 21,095 26.6 76,865 66,701 15.2
PAT 18,350 17,231 6.5 14,255 28.7 59,776 54,402 9.9
NII 6,504 6,680 (2.6) 6,620 (1.7) 26,434 27,040 (2.2)
PPP 6,397 8,340 (23.3) 7,820 (18.2) 31,920 31,912 0.0
PAT 4,009 2,580 55.4 4,200 (4.5) 17,259 18,022 (4.2)
NII 6,399 5,331 20.0 5,486 16.7 22,219 19,158 16.0
PPP 6,000 4,993 20.2 5,283 13.6 19,877 17,106 16.2
PAT 3,927 3,700 6.1 3,443 14.0 15,156 13,172 15.1
NII 8,073 7,627 5.8 7,388 9.3 29,632 27,336 8.4
PPP 5,534 5,439 1.7 4,771 16.0 19,915 18,516 7.6
PAT 2,571 3,107 (17.3) 1,364 88.5 7,558 8,872 (14.8)
NII 8,847 6,368 38.9 9,183 (3.7) 37,290 34,226 9.0
PPP 7,425 6,658 11.5 7,822 (5.1) 30,552 28,574 6.9
PAT 3,160 2,950 7.1 3,125 1.1 12,370 12,642 (2.2)
HDFC
Infrastructure
Development
Finance
Corporation
LIC Housing
Finance
Mahindra &
Mahindra
Financial Services
Shriram Transport
Finance
Source: Company Data, PL Research
Consolidated Sectoral Data (Banks)
Quarterly Table (Rs m)
Jan‐Mar'15 Jan‐Mar'14 YoY gr. (%) Oct‐Dec'14 QoQ gr. (%)
NII 470,064 422,329 11.3 451,657 4.1
PPP 370,783 345,401 7.3 344,967 7.5
PAT 164,405 150,023 9.6 141,333 16.3
Consolidated Sectoral Data (Financial Services)
Quarterly Table (Rs m)
Jan‐Mar'15 Jan‐Mar'14 YoY gr. (%) Oct‐Dec'14 QoQ gr. (%)
NII 54,513 47,417 15.0 48,842 11.6
PPP 52,057 49,261 5.7 46,792 11.3
PAT 32,016 29,568 8.3 26,387 21.3
Note: NII, PPP and PAT numbers are arrived by totaling corresponding numbers of all companies under our coverage in this sector.
Key Figures (Rs m)
2015E 2016E 2017E
NII 1,821,812 2,125,786 2,511,529
Growth (%) 12.8 16.7 18.1
PPP 1,389,199 1,641,892 1,969,076
Growth (%) 12.7 18.2 19.9
PAT 638,580 792,094 972,908
Growth (%) 13.6 24.0 22.8
PE (x) 17.2 13.8 11.3
Key Figures (Rs m)
2015E 2016E 2017E
NII 195,589 232,446 274,874
Growth (%) 10.0 18.8 18.3
PPP 179,129 210,448 248,965
Margin (%) 91.6 90.5 90.6
PAT 112,119 135,141 158,534
Growth (%) 4.7 20.5 17.3
PE (x) 26.2 21.8 18.6
12.
Jan‐Mar 2015 Earnings Preview
April 10, 2015 134
Prabhudas Lilladher Pvt. Ltd.
3rd Floor, Sadhana House, 570, P. B. Marg, Worli, Mumbai‐400 018, India
Tel: (91 22) 6632 2222 Fax: (91 22) 6632 2209
Rating Distribution of Research Coverage PL’s Recommendation Nomenclature
44.6%
39.1%
16.3%
0.0%
0%
10%
20%
30%
40%
50%
BUY Accumulate Reduce Sell
% of Total Coverage
BUY : Over 15% Outperformance to Sensex over 12‐months
Accumulate : Outperformance to Sensex over 12‐months
Reduce : Underperformance to Sensex over 12‐months
Sell : Over 15% underperformance to Sensex over 12‐months
Trading Buy : Over 10% absolute upside in 1‐month
Trading Sell : Over 10% absolute decline in 1‐month
Not Rated (NR) : No specific call on the stock
Under Review (UR) : Rating likely to change shortly
DISCLAIMER/DISCLOSURES
ANALYST CERTIFICATION
We/I, Mr. R Sreesankar (B.Sc), Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject
issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report.
Terms & conditions and other disclosures:
Prabhudas Lilladher Pvt. Ltd, Mumbai, India (hereinafter referred to as “PL”) is engaged in the business of Stock Broking, Portfolio Manager, Depository Participant and distribution for third party financial products. PL is a
subsidiary of Prabhudas Lilladher Advisory Services Pvt Ltd. which has its various subsidiaries engaged in business of commodity broking, investment banking, financial services (margin funding) and distribution of third
party financial/other products, details in respect of which are available at www.plindia.com
This document has been prepared by the Research Division of PL and is meant for use by the recipient only as information and is not for circulation. This document is not to be reported or copied or made available to
others without prior permission of PL. It should not be considered or taken as an offer to sell or a solicitation to buy or sell any security.
The information contained in this report has been obtained from sources that are considered to be reliable. However, PL has not independently verified the accuracy or completeness of the same. Neither PL nor any of its
affiliates, its directors or its employees accepts any responsibility of whatsoever nature for the information, statements and opinion given, made available or expressed herein or for any omission therein.
Recipients of this report should be aware that past performance is not necessarily a guide to future performance and value of investments can go down as well. The suitability or otherwise of any investments will depend
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