Brokerages were cautious on the stock, citing volume growth issues ahead on the back of weak demand trends.
HSBC expects further demand pick-up which will improve company's return on capital employed.
With rising crude prices, cost efficiency of natural gas, environmental concerns, policy framework changes and budget allocations, the gas distribution companies are positioned for a strong uptick in volumes.
While maintaining Buy call on the stock with a target price at Rs 885 per share, CLSA said the outlook was fairly strong for 2018.
A detailed analysis of the third quarter numbers of over 7600 companies showed all-around improvement in financial parameters. Aggregate sales growth of 8% was better than the 6.7% in the previous quarter. EBIDTA (earnings before interest depreciation & tax) margins improved a tad as well.
The company aims to achieve a turnover of USD 100 million by the end of FY20 on the back of strong order visibility from its Swedish client, higher capacity utilisation at its pharma packaging facility, and improved sales traction from FMCG and automobile clients.
Market leadership, a strong uptick in CVs, marquee clientele, operating leverage, and strong financial performance should support valuation for some of these companies, going forward
All brokerage houses barring Motilal Oswal highlighted in this article are having Reduce to Hold rating and expect the stock to fall up to 25 percent.
Moneycontrol Research maintains the view that Bodal Chemicals is on an accelerated growth path for the next few years.
Operating leverage, backward integration, capacity addition (for terry towels), risk diversification, and increased emphasis on sale of brands are the key moats that make Himatsingka Seide a good investment proposition.
Higher volumes led to higher PLNG profitability with efficiency gains and margin improvement.
Brokerage houses retained negative stance on the stock and slashed target price on asset quality concerns.
While there has been a good mix of volume and value, overall result is below our expectations. Higher raw material prices have prompted company for consecutive prices hikes in Parachute hair oil. Though so far company has been not seen any negative impact on the market share, it need to be seen it’s sustenance in coming quarters.
With disposable incomes rising and government’s push towards pan-India electrification evident, AC manufacturers have quite a few tailwinds to look forward to.
Company has a major capacity expansion plan ( ~Rs 150-200 crore) where in details are tentative but can expand Synthetic latex capacity to 75-80,000 MT (from 55,000 MT) and Nitrile rubber capacity can go up to 30,000 MT.
Analysts have maintained their positive stance on the stock on hopes of asset quality improvement in FY19, expects the stock to give up to 35 percent return in next 12-month.
The company was able to control its raw material cost like coking coal and conversion cost saving to the extent of Rs 550 crore along with reduction in fixed cost such as interest cost by 4.3% to Rs 1327 crore as a result of refinancing of its debt.
The company’s overall December quarter performance was uninspiring, but the order inflows give reason for hope.
IIFL expects a 24 percent FY17-20 PAT (pre-exceptional) CAGR. Valuations appear attractive, hence it maintained Buy rating on the stock with a one-year price target of Rs 950 per share.
The company is well-poised to witness earnings traction on the back of capacity expansion and a change in the product mix. The valuation, at 5x FY20 projected earnings, remains undemanding and merits attention.
An asset-light model, growing presence in ODM, backward integration of processes, well-established relationships with marquee clients, and the government's emphasis on domestic manufacturing are the key tailwinds that stands Dixon in good stead and makes it worth accumulating in the current weakness.
While addressing conference call, Glenn Saldanha, Chairman and MD said the US business continued to be very challenging and that pricing pressure would remain challenging for 5 quarters.
With continued commercialization of new products, strong orderbook line up, global agrochemical recovery, clearing up of inventory channels and a conducive domestic agri environment, we expect growth to pick up at PI in FY19
HEG’s quarterly result was well ahead of expectations. Sales more than doubled on sequential basis and exhibited the benefit of change in pricing trend and progress in contract renewals for the graphite electrodes
CLSA estimates robust 30 percent earnings CAGR for FY18-20, while retaining Buy rating on the stock with a target price of Rs 750 per share.