Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
Google
Web www.equitybulls.com
Union Budget
Budget 2011-2012 Home
Industry Expectations - Budget 2011-2012
Industry Reactions - Budget 2011-2012
Budget 2010-2011
Budget 2010-2011 Home
Industry Expectations - Budget 2010-2011
Industry Reactions - Budget 2010-2011
Contributor's Corner
Bonanza Portfolio
Hemant K Gupta
Krish Bhatt
S A A R T H I
Trinity Investments
Exchange Information
BSE 2009 Holidays
NSE 2009 Holidays
Investor Guide
Depository & Dematerialisation
Grievance Redressal
Investor Guide
SEBI
Trading of Securities
Transfer of Securities
Your Rights
Budget 2009-2010
Budget 2009-2010 Home
Industry Expectations - Budget 2009-2010
Industry Reactions - Budget 2009-2010
Interim Budget 2009-2010 Home
Industry Expectations - Interim Budget 2009
Budget 2008-2009
Railway Budget 2008-2009
Industry Expectations - Budget 2008
Union Budget 2008-2009
Highlights of Budget 2008-2009
Summary of Budget 2008-2009
Industry Reactions - Budget 2008
IPOs
Current IPOs
Past IPOs
IPO Subscription
Mutual Funds
Gold Exchange Traded Fund
MF Unique Holding
Forthcoming Dividends
ELSS Schemes Comparison
Tax Plans
New Fund Offers
Research
Arbitrages
Equity
Market Whispers
Tax Planning
Home
Equity Linked Savings Scheme
Post Office MIS
9% GOI Senior Citizens Savings Scheme
8% Savings (Taxable) Bonds
Kisan Vikas Patra
National Savings Certificate
Public Provident Fund
Research

| More

Stocks Picks - TVS Motors, TCS & DCB Bank - Arihant Capital Markets Ltd

Posted On: 2017-09-23 02:04:31

TVS Motors (CMP - Rs 650 Target Price - Rs 690).

TVS Motor Company Ltd is the third largest two-wheeler manufacturer in India and one among the top ten in the world.

TVS Motors is well poised to outpace industry growth (TVS is likely to report a 15% volume CAGR over FY2017-FY2019 as against estimated industry growth of about 10%), given the success of recent launches and strong product pipeline. Further, realisation/vehicle would improve as share of the highvalue non-moped segment rises. Moreover, TVS Motors' margins are likely to reach the doubledigit mark by FY2019, leading to a strong 37% earnings CAGR over the next two years.

TVS Motors volume outlook has improved, given the acceleration in the 2W industry's growth and a strong product pipeline, which is likely to be unveiled in the ongoing festival season. We give HOLD rating on the stock with a Price Target (PT) of Rs.690 (based on 33x FY2019 earnings).

Tata Consultancy Services (CMP- Rs 2519 Target Price - Rs 2416)

Tata Consultancy Services is an IT solution provider.TCS offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its unique Global Network Delivery Model, recognized as the benchmark of excellence in software development..The company also engagged in the business of Telecom, Retail and Distribution, Banking, Financial Services and Insurance.

TCS has restructured its business in Emerging Markets (India, ME, APAC ex-Australia) that were more volatile owing to project-based nature of delivery, product-platform sales and inconsistency in business opportunities. This collective base accounts for ~17.6% of total revenues as of Q1FY18 and is termed as 'Regional Markets & Others'. The company reported 2.3% qoq growth in BFSI, driven by a platform win in Insurance and a Core Banking win in USA. The traction in BFSI is improving and is also reflected in healthy pipeline for Diligenta business. Retail revenues grew 2% qoq and saw some very encouraging deal engagements. The remaining segments grew in the range of 4-7% qoq and are showing sustained promise. The only dampener would be the performance of low focus 'Regional Markets & Others' segment.

The outlook on the business growth has been largely kept intact with strong growth in Digital business and improved business metrics on the segment - size, scale, and competitiveness. Taking into account the risk to growth estimates and likely impact on profitability, we have a NETURAL rating on the stock with TP of Rs 2416 based on P/E of 16x FY19E EPS of Rs 151.

DCB Bank (CMP - Rs. 193 ; Target Price- Rs.218)

Development Credit Bank Ltd (DCB) is one of the emerging private sector banks in India. The services offered by the bank include Personal Banking, Corporates banking & NRI Banking.

DCB Bank Ltd. reported strong growth for Q1FY18 quarter. Operating Profit came in at Rs.136 Cr. for Q1 FY18 as against Rs. 93 Cr. in Q1 FY17 registering robust growth of 47%. Net profit increased to Rs 65 Cr up by 39% YoY and growth of 23% sequentially. Deposits for the bank grew at 22% YoY. NIM for the quarter came in at 4.23. We believe bank is in growth trajectory with continued focus on retail and SME segment customers. On back of strong CASA growth and better asset quality ahead we believe bank will be able to maintain its current NIM levels. Company has set target to bring down Cost to Income ratio to 55% by end of next FY. Company's top Business priorities are improving staff quality & focus on internal training, keeping NPA's intact and focusing more on fee based income. Company has set target to achieve fee based income with a growth of around 14%-16% YoY.

Our Estimates for FY19, Net interest Income at Rs.1218 Cr & PAT at Rs. 313 Cr. We have pegged a multiple of 2.4(x) to FY 19E ABV & arrived at a fair value of Rs 218 per share.


Source: Equity Bulls

Click here to send ur comments or to feedback@equitybulls.com


Disclaimer:The article above is a gist / extract of the original report prepared by the research firm / brokerage firm. This article is not to be considered as an offer to sell or a solicitation to buy any securities. This article is meant for general information only. www.equitybulls.com, its employees or owners or the research firms, its employees or owners won't be responsible for any liability that may arise from information, errors or omissions in these articles. www.equitybulls.com or its employees or owners / the research firms or its employees or clients or owners may from time to time hold positions in securities referred in this article. For detailed research reports, please contact the concerned research firm directly.





Other Headlines:

Energy: 3QFY18E preview-expect a strong quarter
Telecom: Thoughts on Jio's latest price cut - Kotak
Initiating Coverage: Vascon Engineers Ltd - BUY - TP Rs.60 - Kotak
Initiating Coverage: Dilip Buildcon Ltd - BUY - TP Rs.1217 - Kotak
Brigade enterprises Ltd - Research Report - Rating - ACCUMULATE - Arihant Capital Markets
Jindal Stainless (Hisar) - Initiating Coverage - BUY - TP Rs.318 - Kotak
Consumer Products - Cautious: Quick look back at what worked in CY2017 - Kotak
VRL Logistics Ltd - Company Update - BUY - TP Rs.500 - Kotak
HDFC Bank board approves raising Rs.24,000 crore: Angel Broking
Talbros Automotive Components Ltd - Initiating Coverage - Buy - Kotak Securities
Shemaroo Entertainment Ltd - Q2 FY2018 Result Update Rating - NEUTRAL - Arihant Capital Markets
Bodal Chemicals Ltd - Result Update - REDUCE - TP Rs.176 - Kotak
Management Meet Update: Time Technoplast Ltd - ACCUMULATE - TP Rs.214 - Kotak
Petronet LNG - Company Update - BUY - TP Rs.285 - Kotak
FIEM Industries Ltd - Result Update - BUY - TP Rs.1203
Quarterly Market Outlook - Kotak Securities
Dollar Industries Ltd - Result Update - BUY - TP Rs.560 - Kotak
Infosys gets a new CEO and MD: Angel Broking
November Auto Sales Analysis: Angel Broking
NBCC (India) Ltd - Result Update - SELL - TP Rs.250 - Kotak
Bajaj Quadricycles, not enough to see a rally: Angel Broking
Sector Update: Infrastructure Sector - Kotak
Management Meet Update: Blue Dart Express - ACCUMULATE - TP Rs.4375 - Kotak
TRAI unequivocally votes for net neutrality: Angel Broking
The Pitch Report - Initiating Coverage: NESCO Ltd - BUY - TP Rs.611
KNR Constructions Ltd - Result Update - BUY - TP Rs.306 - Kotak
Dr. Reddy's gets EIR for Vizag Plant: Angel Broking
PNC Infratech Ltd - Result Update - ACCUMULATE - TP Rs.198 - Kotak
MRPL - Company Update - ACCUMULATE - TP Rs.138 - Kotak
AIA Engineering Ltd - SELL - TP Rs.1130 - Result Update - Kotak
Minda Industries (MNDA.IN) - Robust performance - CSEC Research
Karur Vysya bank (KVB IN) - Moderate loan growth, coupled with deteriorating asset quality - CSEC Research
Aksharchem India Ltd - REDUCE - TP Rs.680 - Result Update - Kotak
Voltamp Ltd - BUY - TP Rs.1248 - Result Update - Kotak
Shankara Building Products Ltd - BUY - TP Rs.1654 - Result Update - Kotak
Simplex Infrastructure Ltd - BUY - TP Rs.590 - Result Update - Kotak
MOIL Ltd - ACCUMULATE - TP Rs.265 - Result Update - Kotak
CHHOTA (to) MOTA ideas: Eveready Industries Ltd - BUY - TP Rs.522 - Kotak
Castrol India Ltd - Q2FY18 Result Update - Religare
Minda Corporation - Q2FY18 Result Update - Religare
Mold-Tek Packaging - Q2FY18 Result Update - Religare
The India Cements Ltd - BUY - TP Rs.223 - Result Update - Kotak
Tata Motors - BUY - TP Rs.514 - Result Update - Kotak
Ashok Leyland - ACCUMULATE - TP Rs.126 - Result Update - Kotak
Oil India Ltd - ACCUMULATE - TP Rs.381 - Result Update - Kotak
Sun TV Network - REDUCE - TP Rs.878 - Result Update - Kotak
Larsen & Toubro - ACCUMULATE - TP Rs.1337 - Result Update - Kotak
Voltas - ACCUMULATE - TP Rs.610 - Result Update - Kotak
Allcargo Logistics - BUY - TP Rs.205 - Result Update - Kotak
Mahindra & Mahindra - BUY - TP Rs.1604 - Result Update - Kotak


Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2018