Brokerage: Bank of America Merrill Lynch | Rating: Buy | Target: Rs 1,090
The global research firm observed that the company’s Q4 results were largely a miss. Having said that, it feels, that the worst is likely behind us and the demand may see gradual revival. It also quoted the company’s commentary that demonetisation impact was visible till the first half of March.
Analysing its results further, it said that the withdrawal of buy one get one (BOGO) pizza offer has led to 7.5 percent fall in same-store sales. BofAML maintained the view that the new management may now focus on aggressive growth in the medium term and the priority lies in reviving same store sales growth (SSSG).
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 1,250
This global investment bank too called demonetisation impact and withdrawal of BOGO as the reasons behind weak results. It lowered the earnings estimates for FY17-19 by 14 percent to factor in weak results and higher employee costs. Further, it stated, that it liked the company’s strategy of lowering store opening guidance to 45 from 150 annually earlier.
Brokerage: CLSA | Rating: Buy | Target: Rs 1,250
CLSA appreciated the company’s action which identified areas that needed attention. Having said that it said that the worst ever SSSG managed to shake its confidence in the company’s business model. It highlighted that it had closed 14 Domino’s and 20 Dunkin’ stores in the last fiscal.
Brokerage: Credit Suisse | Rating: Outperform | Target: Rs 1,100
Credit Suisse observed that its focus on cost control is reflecting in the results and that losses in Dunkin Donuts are targeted to be halved in FY18. The global research firm sees Q4 as the bottom and expects a recovery on margins and SSSG hereon. It cut estimates by over 20 percent to build in the resetting of the profit base.
Brokerage: JPMorgan | Rating: Overweight | Target: Rs 1,140
The brokerage firm observed that the company’s Q4 operational performance was below its and Street estimates. It sees downside risk to its FY18/19 earnings forecasts. Having said that, it believes that progress on revamped growth strategy will be the key going forward.
Brokerage: | Macquarie | Rating: Outperform | Target: Rs 1,258
The research firm cut FY18/19 earnings by 7-10 percent on lower store additions and gross margin assumptions. Going forward, high SSSG will be the key catalyst to the stock. Simultaneously, it believes that the medium term potential to have 1,800-2,000 stores in India is intact.
Brokerage: Bank of America Merrill Lynch | Rating: Buy | target: Rs 1,992
The global research firm said that its Q4 was a big positive surprise and that the company could beat FY18 guidance. It observed that the guidance for the current fiscal was cautious and that a potential to surprise existed. For FY18, the company has guided
for 12-14 percent order flow growth and 12% sales growth, it said.
Brokerage: Jefferies | Rating: Positive | Target: Rs 2,300
The global research firm observed that EBITDA was below expectations given higher NPA provisioning. The profit was driven by lower interest costs and tax rate, it added.
Brokerage: Nomura | Rating: Neutral | Target: Rs 1,895
The brokerage observed that weakness in domestic execution raise concerns on revival in infrastructure segment.
Brokerage: JPMorgan | Rating: Overweight | Target: Rs 1,850
The global research firm said that in the Q4, core business’ EBITDA & bottomline were ahead of estimates.
Brokerage: Goldman Sachs | Rating: Buy | Target: Rs 1,900
The brokerage said that the results display stable operating performance across segments. It fine-tuned FY18/19 EPS estimates by up to 3 percent.
Brokerage: Jefferies | Rating: Underperform | Target: Rs 106
Asset quality stress shows up under tighter rules, the brokerage observed. The catch-up in NPL recognition & provision norms led to bottomline loss, it observed. Furthermore, it remains skeptical of a quick turnaround in the power sector, it added.
Brokerage: Deutsche Bank | Rating: Buy | Target: Rs 985
Solid deferred revenue booking point to an upbeat outlook, it observed. DB also said that the largest investee company, Zomato, is close to breaking even.
Brokerage: Jefferies | Rating: Buy | Target: Rs 996
It termed that the company’s better margins lead to the beat in Q4 of Fy17.
Brokerage: Macquarie | Rating: Outperform | Target: Rs 1,000
The research firm said that the firm was a good-quality internet play & have strong online-classified websites.
Brokerage: Morgan Stanley | Rating: Underweight | Target: Rs 268
Cost increase has lead to an EBITDA miss in Q4, the brokerage observed. It expects FSA & e-auction realisations to improve but its reflected in estimates. Going ahead, it sees muted earnings growth and restrict dividend. Looming wage hike will result in payments, it added.
Brokerage: CLSA | Rating: Sell | Target: Rs 245
Outlook For FY18 is not much better given recent coal quality downgrade, it added.
Brokerage: Citi | Rating: Buy | Target: Rs 310
Citi cut FY18/19 earnings per share by 8/4 percent. Having said that, it believes that the risk reward is favourable. It sees potential upsides on volumes and pricing front.
Brokerage: BofAML | Rating: Underperform | Target: Rs 141
The brokerage observed that there was a 900 bps recovery in gross margins. It sees risks to order flow, margins, and receivable write-off remains. It said that the current market price already bakes in positives and expects recovery to be gradual.
Brokerage: Macquarie | Rating: Underperform | Target: Rs 108
The research firm observed that the outlook for the firm remains very bleak and sees struggle for topline growth existing in FY18/19.
Brokerage: Jefferies | Rating: Underperform | Target: Rs 100
The brokerage believes that the risk to revenue visibility was rising. Further, it added that the business model of the company was flawed as overcapacity will mean sub-10 percent medium term RoE.
Brokerage: Goldman Sachs | Rating: Sell | Target: Rs 138
It observed that Q4 results was below expectation and pay hike offset savings on raw material costs. Quality of earnings to be poor, it added.
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