TVS Motor Company Rating: Hold Target: Rs 48 Rationale: Q3 operating performance is weak as new launch expenses and lower export incentives impact margins. A Likely upside risk from new launches and BMW deal and a raised volume growth estimate in FY14/FY15 to 14.7%/10.2% on new products is expected.
Corporation Bank Rating: Hold Target: Rs 440 Rationale: Corporation Bank Q3FY13 NII at Rs 8.8bn were better-than-expected. However, with significantly higher provisions, PAT was lower-than-expected at Rs 3.0bn. Asset quality worsens with net slippages highest in many years at Rs 6.7bn. With 48 percent provision on incremental slippages.
Sterlite Technologies Rating: Hold Target: Rs 34 Rationale: It is an operationally weak quarter with revenue at Rs 8.3bn, EBITDA at Rs 566m. An earnings cut by 32%/18% for FY13E/14E is expected, as one factors-in lower volumes and margins in telecom segment.
Idea Cellular Rating: Reduce Target: Rs 93 Rationale: Higher network operating expense & access charge led to 36bps QoQ decline in EBITDA margin to 26.4 percent. Regulatory issues and slowing growth is concerning. An estimate of 4 percent average revenue per user (ARPU) increase and 150bps margin expansion for FY14E is expected.
Nava Bharat Ventures Rating: Accumulate Target: Rs 264 Rationale: NBVL's Q313 earnings miss was mainly due to 1) lower MAT credit (Rs18 mn vs. Rs100mn exp), 2) Other Income and 3) lower sugar profits (Rs40mn at PBT).
Lakshmi Machine Works Rating: Hold Target: Rs 1770 Rationale: Q3FY13 results were weak with revenues at Rs 3.9bn, EBITDA at Rs 441 million and PAT at Rs 203m. Delay in order execution led to revenue decline of 27 percent and 26 percent yoy in textile machinery and machine tool, respectively.
Jubilant Foodworks Rating: Sell Target: Rs 1000 Rationale: Same-store sales growth (SSG) detoriates further to 16.1 percent; EBIDTA margins disappoint at 17.4 percent down 150 bps yoy; APAT growth at 24 percent yoy to Rs377 million remains below forecast. A forecast of 3 years to stabilisation and JFL EBIDTA margins is being capped.
Bank of Baroda Rating: Hold Target: Rs 780 Rationale: BOB's Q3FY13 results are below estimates with Net interest income at Rs 28.4bn and PAT at Rs10.1 billion. Going forward, the slippages are expected to remain elevated. Higher dependence on international book for growth would mean NIM to remain flat at best vs Q3FY13.