Recommendations Archive

Multi Commodity Exchange of India Ltd. review and analysis by Angel Broking

Multi Commodity Exchange of India Ltd. (MCX) is a leading commodities exchange, which received permanent recognition from Government of India on September 26, 2003. The company reported a market share of 87.3% as of December 2011. MCX is also the fifth largest commodity futures exchange globally in terms of the number of contracts. As of June 2011, MCX was the largest silver exchange, the second largest gold, copper and natural gas exchange and the third largest crude oil exchange for this period globally.

Electrosteel Castings report: Iron ore mines get MOEF clearance

We resume coverage on ECL in view of a positive development (receipt of forest clearance). ECL has received forest stage-I clearance for its iron ore mines located at Kodolibad, West Singhbhum, Jharkhand, from Ministry of Forests and Environment (MOEF).ECL expects to receive stage-II clearance in the coming 2-3 months and then sign mining lease with the state government. After signing the mining lease, ECL can develop the mine and resume production.

Monnet Ispat 3QFY2012 performance highlights and results update

Monnet Ispat’s (MIL) net sales grew strongly by 38.6% yoy to Rs.481cr during 3QFY2012. Growth was mainly driven by the 17.8% yoy increase in sponge iron realization to Rs.21,004/tonne. The company’s sponge iron sales volumes grew by 8.3% yoy to 160,521 tonnes, while power sales volumes declined by 18.1% yoy to 172mn units. Net realization on power sales grew by 2.3% yoy and 18.5% qoq to Rs.3.5/unit during the quarter.

Multi Commodity Exchange of India Ltd. IPO review and analysis by Nirmal Bang

MCX is the leading commodities exchange in India based on value of commodity futures contracts traded. It is a de-mutualised exchange and received permanent recognition from the Government of India on September 26, 2003, to facilitate nationwide online trading, clearing and settlement operations of commodities futures transactions. As of December 31, 2011, MCX offered trading in 49 commodity futures based on contract specifications, from a diverse range of classes including bullion, ferrous and non-ferrous metals, energy and agriculture.

Multi Commodity Exchange of India Ltd IPO review and analysis by Keynote Capitals

Multi Commodity Exchange of India Ltd. (MCX) is a de-mutualised multi commodity association and was incorporated in April 2002. MCX is the leading commodities exchange in India based on value of commodity futures contracts traded. Its a de-mutualised exchange and received permanent recognition from the Government of India in September 2003 to facilitate nationwide online trading, clearing and settlement operations of commodities futures transactions. Online futures trading commenced on MCX in November 2003.

NMDC report: NMDC cuts prices; lowers volume guidance

NMDC has cut prices of iron ore fines and lumps by 20% and 3%, respectively for 4QFY2012 on the back of decline in global iron prices (-18% over the past five months), the recent rupee appreciation (7.5% since January 1, 2012) and increase in export duty on iron ore (from 20% to 30% effective January 1, 2012). The price cut by NMDC is higher than our expectations given the shortage of iron ore in the domestic markets (especially iron ore lumps) on the back of mining ban in Karnataka region and government’s stricter stance on illegal mining in other regions such as Goa and Orissa.

Dhanuka Agritech Q3 FY12 results update by Nirmal Bang

Dhanuka Agritech reported results lower than expectations due to bad North East Monsoon which impacted the whole agrochemicals¡¦ industry. The reported sales of Rs 109.8 cr has declined by 42.6% qoq and 2.9% yoy. EBITDA margins declined to 10.9% (down 239 bps qoq and 467 bps yoy) due to higher raw material cost and administration cost. Management expects Q4 to be better than Q3, however real push in numbers would only be visible in Q2FY13 i.e. in the Kharif season.

Astral Poly Technik Ltd. Q3 FY12 results update by Nirmal Bang

Revenues grew 63% YoY at Rs.160.5 crores. This was on the back of continues demand for its products and a promotional scheme offered by the company during the quarter. The company has utilized its capacity to the tune of 9727 M.T. as against previous Q2FY12 quarter of 9822 M.T. EBIDTA margins declined by 184 bps at 10.2% on the back of increase in expenses for the promotional scheme which was to the tune of Rs.4.5 crores. In addition material costs went up by 140 bps QoQ on the back of rupee depreciation.

State Bank of India 3QFY2012 performance highlights and results update

For 3QFY2012, SBI’s standalone net profit increased by 15.4% yoy to Rs.3,263cr, which were above street estimates. Sequential expansion in both domestic (32bp) and foreign NIM (4bp) was the major positive from the result. However, the asset quality continued to disappoint with gross and net NPA levels increasing sequentially by 18.1% and 16.6%, respectively. We recommend an Accumulate on the stock with a target price of Rs.2,595.

Jaiprakash Associates 3QFY2012 performance highlights and results update

For 3QFY2012, Jaiprakash Associates (JAL) reported in-line performance on the revenue front but better-than-expected numbers on the EBITDAM and PAT level. This outperformance was owing to high margin in construction segment (owing to last leg of payment for completion of Yamuna expressway) and higher other income (on account of dividend from subsidiaries). We recommend Buy on the stock.

CESC 3QFY2012 performance highlights and results update

For 3QFY2012, CESC posted a 32.7% yoy decline in its net profit on account of customers being billed under the existing tariff, as WBERC’s new tariff approval for FY2012 is still pending (generally awarded in the second quarter). Although the current tariff provisions allow the hike in fuel costs to be passed on automatically, CESC has to obtain WBERC’s orders for passing on the additional fixed costs. The company expects to receive the new tariff order in 4QFY2012, post which it can charge higher tariff in 4QFY2012 with retrospective effect.

IVRCL 3QFY2012 performance highlights and results update

IVRCL reported a disappointing set of numbers for 3QFY2012, with lower-thanexpected performance on all fronts. However, order inflow for 9MFY2012 was commendable at Rs.10,700cr, given the current scenario. The company’s order book stands at Rs.25,000cr (4.4x FY2011 revenue, including L1 projects of Rs.3,000cr). During the quarter, IVRCL Assets and Holdings has sold its Noida land (3 parcels out of 4) and is expecting to receive the cash to the tune of Rs.225-300cr by March 2012.

Tata Motors 3QFY2012 performance highlights and results update

Tata Motors (TTMT) reported an extremely strong set of results, driven by stellar performance at JLR. The company’s top line grew by robust 44% yoy (25% qoq), led by 41.5% yoy (28.6% qoq) growth in JLR sales, which were driven by a 36.7% yoy (26.9% qoq) jump in volumes and 3.1% yoy (0.8% qoq) improvement in net average realization. The company’s operating margin surprised positively and stood at 15.1% on account of better-than-expected performance at JLR (EBITDA margin at 18.2%), which benefitted from superior product and geography mix, favorable forex and higher operating leverage.

Coal India 3QFY2012 performance highlights and results update

Coal India’s (CIL) 3QFY2012 top-line was below our expectations; however, bottom-line beat our estimates on account of lower-than-expected staff cost and higher-than-expected other income. We maintain our Neutral view on the stock. CIL’s 3QFY2012 net sales increased by 21.0% yoy to Rs.15,349cr (below our estimate of Rs.17,664cr) primarily due to higher average realization.

SAIL 3QFY2012 performance highlights and results update

For 3QFY2012, SAIL’s sales volumes were below our estimates, while its PAT was higher-than-our expectations due to lower-than-expected raw material costs. We maintain our Neutral rating on the stock. During 3QFY2012, SAIL’s net sales decreased by 4.9% yoy to Rs.10,594cr (below our estimates of Rs.12,239cr) mainly due to lower sales volumes (-19.4% yoy to 2.6mn tonnes), partially offset by increase in realizations (+17.9% yoy to Rs.40,435/tonne).

Eicher Motor Q4 CY11 results update by Nirmal Bang

Eicher Motor results are good. Although parent company (12% of consolidated sales) saw some decline on account of lower sales on Bullet motorcycle but subsidiary continue to perform well. Outlook continues to remain positive. Eicher Motors Ltd (EML’s ) consolidated revenues increased 26.8% YoY to Rs 1,568 crs in Q4CY11 against Rs 1,235 crs in Q4CY10 due to 25% YoY volume growth in the VE Commercial Vehicle (VECV) business and 28% YoY volume growth in the Royal Enfield business.

Essel Propack Ltd. Q3 FY12 results update by Nirmal Bang

Essel Propack Global operations reported a jump in net sales YoY by 13.7% and up by 4.7% QoQ to Rs. 414.04 crs backed by strong growth registered in all four regions comprising: AMESA (10.5% YoY), AMERICA (10.8% YoY), EAP (9.5% YoY) and Europe (45.3% YoY), in Q3FY12. The company reported an 11.5% YoY jump in EBITDA to the tune of Rs. 67 crs in Q3FY12 and a jump by 6.2% QoQ. The margin was almost flat QoQ but reported a decline by 30bps YoY led by jump in input prices and employee expenses.

Simplex Infra 3QFY2012 performance highlights and results update

For 3QFY2012, Simplex Infra’s (Simplex) numbers came above our and street’s expectations on the revenue and earnings front and marginally lower at the EBITDAM level. At the end of the quarter, the company’s order book stood at Rs.14,442cr (2.9x FY2011 revenue). Order inflow for the quarter stood at Rs.1,018cr, with the company having L1 orders worth Rs.2,565cr. We are revising our estimates for FY2012 and FY2013 upwards owing to better-than-expected performance during the quarter. We maintain our Buy view on the stock.

ACC 4QCY2011 performance highlights and results update

For 4QCY2011, ACC reported better-than-expected bottom-line performance. The company’s net profit grew by 83.8% yoy to Rs.470cr. Bottom-line growth was on account of increased cement volumes, Rs.228cr (Rs.82cr in 4QCY2010) reversal of excess tax provisions pertaining to earlier years and higher other income (89.2% yoy to Rs.46cr). Although the company witnessed a substantial 20.3% yoy improvement in realization, its OPM stood flat on a yoy basis due to the surge inpower and fuel costs and freight costs. At current levels, we maintain our Neutral view on the stock.

Punj Lloyd 3QFY2012 performance highlights and results update

For 3QFY2012, Punj Lloyd (Punj) posted a mixed set of numbers with decent performance on the revenue front; however, the company reported dismal performance on the margin front and its earnings came in black on account of higher other income (mainly foreign exchange gains), barring which it suffered losses. Punj has received orders worth Rs.12,364cr (commendable job in a gloomy environment) during 9MFY2012 against Rs.9,978cr in FY2011, taking its order backlog to Rs.28,270cr (3.6x FY2011 revenue).

Graphite India 3QFY2012 performance highlights and results update

For 3QFY2012, Graphite India’s (GIL) top line came in at Rs.436cr, registering 29.2% yoy growth. EBITDA margin contracted by 137bp yoy to 20.3%. EBITDA increased by 21.1% yoy to Rs.89cr. PAT increased by 27.1% to Rs.56cr on the back of higher revenue. Going ahead, the scenario is positive for the company, as it has started steel production again in June 2011 (post the shutdown) and is showing a strong rising trend. We maintain our Buy view on the stock.

Ambuja Cements 4QCY2011 performance highlights and results update

For 4QCY2011, Ambuja Cements (ACEM) reported 17.2% growth in its bottom line, which was higher than our estimates. Better-than-expected performance was on account of higher volumes. The company’s realization also improved by 17.5% yoy and 11.8% qoq. However, the company faced substantial margin pressure due to higher freight expenses and other costs, which negated the improvement in realization, resulting in a marginal 63bp decline in OPM to 19.1%. We maintain our Neutral view on the stock.

DLF 3QFY2012 performance highlights and results update

DLF’s 3QFY2012 results were below our expectations. The company’s revenue declined by 18.0% yoy to Rs.2,034cr. OPM for the quarter came in at 40.4%, down 706bp yoy, below our expectation of 43.7%. PAT declined by 44.6% yoy to Rs.258cr, below our expectation of Rs.414cr. We recommend Neutral on the stock.

Amara Raja Batteries 3QFY2012 performance highlights and results update

Amara Raja Batteries (AMRJ) reported a strong performance for 3QFY2012, driven by double-digit volume growth in the industrial (telecom and UPS) and automotive (led by replacement demand) battery segments. We revise our earnings estimates upwards for FY2012/13E by 17.5%/14.2% due to upward revision in the top line and operating margin. Due to the recent run-up in the stock price (~35% in the past month), we recommend Accumulate on the stock.

Indian Bank 3QFY2012 performance highlights and results update

For 3QFY2012, Indian Bank reported net profit growth of 7.0% yoy (up 12.2% qoq) to Rs.526cr, above our estimate, primarily due to reversal of Rs.52cr of tax liability during the quarter. We recommend Neutral on the stock. Advances for the bank grew by 1.8% qoq (18.2% yoy) and deposits grew by 2.4% qoq (17.8% yoy). CASA deposits growth was relatively healthy at 3.8% qoq (11.1% yoy), leading to a 41bp sequential rise in CASA ratio to 30.2%. CASA deposit growth was mainly on account of healthy traction in saving account deposits, which grew by 6.1% qoq.

Andhra Bank 3QFY2012 performance highlights and results update

For 3QFY2012, Andhra Bank posted a weak set of numbers with net profit declining by 8.4% yoy (down 4.1%) to Rs.303cr, in-line with our estimates. We recommend a Neutral rating on the stock. The bank’s loan book grew sequentially by 7.6% to Rs.79,169cr (up 20.7% yoy), while deposits grew by 4.5% qoq to Rs.98,680cr (up 20.2% yoy). CASA deposits growth was also healthy at 6.4% qoq (up 12.1% yoy), which was primarily driven by strong 7.1% qoq growth in saving account deposits.

Consolidated Construction Consortium 3QFY2012 performance highlights and results update

Consolidated Construction Consortium (CCCL) posted a disappointing set of numbers for 3QFY2012, as expected. The company reported a decline in revenue, with continued dismal performance at EBITDAM level, which along with interest cost burden led to loss at the earnings front. We are revising our estimates further downwards for FY2012 to factor in the poor performance on the revenue front during the quarter; however, we are keeping our FY2013 estimates unchanged. We recommend Reduce on the stock.

Reliance Communication 3QFY2012 performance highlights and results update

For 3QFY2012, Reliance Communication (RCom) reported a muted set of results. The company’s net sales grew by just 0.7% qoq even when 3Q is a seasonally strong quarter for telecom companies. RCom hiked voice tariffs on both on-net and off-net calls for GSM subscribers; and on CDMA, the company raised tariffs on only off-net calls. Since the hike has been undertaken largely on the GSM subscriber base, the impact of the same was less as compared to its peers, as the company is primarily CDMA based and, thus, tariff hike has not showed any signs of improvement in the APRU of RCom.

Alembic Pharma 3QFY2012 performance highlights and results update

Alembic Pharma (Alembic) reported a strong performance for 3QFY2012. The company’s growth was driven by the exports and domestic formulation business (which performed better than others), as restructuring of the business has now started showing results. Alembic reported robust sales growth and improvement in OPM during the quarter. At the CMP, the stock is trading at attractive valuations. Hence, we maintain our Buy view on the stock.

FAG Bearings 3QFY2012 performance highlights and results update

FAG Bearings (FAG) reported a strong set of results for 4QCY2011, despite a marginal slowdown in the automotive and industrial sectors, the company’s main growth drivers. Results were ahead of our estimates mainly due to strong top-line growth; the company’s operating margin was, however, negatively impacted due to higher proportion of traded goods. We rollover to CY2013E and recommend Accumulate on the stock.

Tata Steel 3QFY2012 performance highlights and results update

Tata Steel reported net loss on a consolidated basis during 3QFY2012 due to weak performance from its Tata Steel Europe (TSE) and Southeast Asian operations. Nevertheless, we continue to maintain our positive stance on Tata Steel and recommend Buy on the stock. Tata Steel’s consolidated net sales increased by 13.8% yoy to Rs.33,103cr, above our estimate of Rs.30,992cr, mainly on account of increased average realization in rupee terms. Standalone net sales increased by 12.3% yoy to Rs.8,305cr.

Hindalco 3QFY2012 performance highlights and results update

For 3QFY2012, Hindalco’s standalone profit declined by 1.9% yoy while Novelis reported a net loss of US$12mn. We recommend Neutral on the stock. Hindalco’s standalone net sales increased by 11.4% yoy to Rs.6,590cr mainly on account of higher volumes in both, aluminium and copper segments. However, aluminium segment EBIT decreased by 33.4% yoy to Rs.310cr due to increase in input costs (mainly coal and crude derivatives). Nevertheless, copper segment EBIT rose by 51.1% yoy to Rs.216cr due to higher treatment and refining charges and by-product credits.

Apollo Tyres 3QFY2012 performance highlights and results update

For 3QFY2012, Apollo Tyres (APTY) reported strong net sales growth of 36.3% yoy (12.4% qoq), led by an 18.2% yoy (8.3% qoq) increase in volumes and 15.3% yoy (3.8% qoq) growth in net average realization. Top-line growth was led by strong performance in India, Europe and South Africa, which posted revenue growth of 46.2%, 26.3% and 27.9% yoy, respectively. EBITDA margin expanded by 202bp sequentially to 10%, benefitting from lower raw-material costs and higher profitability in Europe in a seasonally strong quarter.

GIPCL 3QFY2012 performance highlights and results update

For 3QFY2012, GIPCL’s operating profit rose by 15.1% yoy to Rs.94cr, lower than our estimate of Rs.117cr. Lower-than-expected performance was on account of low PAF in SLPP station II, which had technical problems. Expensive gas led to a decline in PLF for gas-based plants, resulting in lower generation-linked  incentives. The company’s bottom line fell by 30.6% yoy to Rs.17cr due to higher depreciation and higher taxation. The company incurred tax of Rs.6cr during the quarter vs. negative taxation of Rs.8cr in 3QFY2011.

Bajaj Electricals 3QFY2012 performance highlights and results update

Bajaj Electricals (BEL) posted strong top-line growth of 15.1% yoy to Rs.794cr (Rs.690cr) in 3QFY2012. The company’s OPM fell by 212bp yoy but improved by 66bp qoq to 8.2%. PAT for the quarter came in at Rs.33cr (Rs.41cr), down 19.1% yoy. We recommend Buy on the stock. BEL’s sales grew by 15.1% yoy due to strong performance by the lighting and consumer durables segments, which grew by 18.8% and 24.7%, respectively, while the E&P segment witnessed a decline of 5.1% yoy.

Tech Mahindra 3QFY2012 performance highlights and results update

For 3QFY2012, Tech Mahindra reported subdued performance with revenue as well as profit coming in below ours as well as street’s expectations. BT business was a major growth dampener, USD revenue of which declined by 7.8% qoq. Growth came from non-BT business yet again, which grew by 0.6% qoq. BT has started retendering its work; this poses risk to Tech Mahindra’s revenue run rate. However, due to the company’s stake in Mahindra Satyam, we maintain our Accumulate rating on the stock.

United Bank of India 3QFY2012 performance highlights and results update

For 3QFY2012, United Bank of India (UBI) registered a strong set of numbers. The company’s net profit grew by 38.5% yoy to Rs.226cr, which was significantly above our estimate due to higher margin expansion and lower provisioning than estimated by us. We recommend Accumulate on the stock.

BHFC 3QFY2012 performance highlights and results update

BHFC reported in-line 21.1% yoy (3.4% qoq) growth in its standalone revenue to Rs.941cr, driven by the strength of its exports segment, which grew by 29.2% yoy (7.6% qoq). Strong growth in the CV segment in the U.S. and Europe continued to drive exports revenue, which grew by 35% and 27.3% yoy in the U.S. and Europe, respectively. Volumes in tonnage terms increased by 15.2% yoy (3.1% qoq) to 55,412MT and net average realization jumped by 6% yoy (1.5% qoq).

JK Lakshmi Cement 3QFY2012 performance highlights and results update

JK Lakshmi Cement (JKLC) reported an impressive performance for 3QFY2012. The company’s bottom line came in at Rs.49cr as against Rs.4.6cr in 3QFY2011. Bottom-line growth was driven by strong 26.3% growth in realization, reduction in raw-material and power and fuel costs on per tonne basis and 59.2% growth in other income to Rs.14.8cr. We recommend a Buy on the stock.

ONGC 3QFY2012 performance highlights and results update

For 3QFY2012, ONGC’s EBITDA and adjusted PAT decreased by 18.3% yoy and 49.2% yoy on account of higher subsidy burden. We recommend Accumulate on the stock. ONGC’s top line decreased by 2.5% yoy to Rs.18,124cr. The company’s crude oil net realization declined by 30.9% yoy to US$44.8/bbl on account of higher subsidy burden. The company shared a subsidy burden of Rs.12,536cr in 3QFY2012 vs. Rs.4,222cr of subsidy shared in 3QFY2011 and Rs.5,713cr in 2QFY2012.

Bharti Airtel 3QFY2012 performance highlights and results update

Bharti Airtel (Bharti) reported a mixed performance for 3QFY2012, with revenue coming in-line with our as well as street expectations. The company, however, disappointed on the operating and profitability fronts due to higher depreciation and amortization expenses. Also, minutes of usage (MOU) of mobile – India as well as Africa business declined by 1.0% and 2.5% qoq to 419min and 125min, respectively. We maintain our Neutral view on the stock.

Siyaram Silk Mills 3QFY2012 performance highlights and results update

For 3QFY2012, Siyaram Silk Mills (SSM) reported a weak performance. The company’s net sales declined by 9.2% qoq and 2.6% yoy to Rs.222cr. OPM expanded by 9bp yoy to 13.2%. Net profit witnessed a 17.0% yoy decline to Rs.13cr. We continue to maintain our Buy view on the stock.

Dena Bank 3QFY2012 performance highlights and results update

For 3QFY2012, Dena Bank registered healthy 20.3% yoy growth to Rs.187cr, above our estimates due to higher margin expansion and lower provisioning expenses than estimated by us. We recommend Buy on the stock. The pace of business picked up in 3QFY2012, with advances growing by 12.2% qoq (up 15.7% yoy) and deposits growing by 6.4% qoq (13.0% yoy). CASA deposits growth was relatively slower at 4.2% qoq (11.4% yoy), leading to a 72bp qoq (50bp yoy) decline in CASA ratio to 34.9%.

Mahindra and Mahindra 3QFY2012 performance highlights and results update

Mahindra and Mahindra (MM) reported mixed results for 3QFY2012. The company registered better-than-expected top-line growth, led by robust volume growth. However, net profit was below our estimates on account of margin contraction due to higher purchases from its manufacturing subsidiary, Mahindra Vehicle Manufacturers Limited (MVML). We have lowered our earnings estimates for FY2012/13 by 6.8%/7% to factor in lower tractor volumes (8% growth in FY2013E from 12% earlier) and higher purchases from MVML.

Cadila Healthcare 3QFY2012 performance highlights and results update

Cadila Healthcare (Cadila) reported lower-than-expected numbers for 3QFY2012, except on the sales front. The company’s sales for the quarter were mostly in-line at ~Rs.1,352cr. However, higher R&D expense during the quarter resulted in depression in the operating margin, which came in at 17.1%. This coupled with forex losses during the quarter resulted in higher dip in net profit during the quarter. The stock is trading at 20.1x FY2012E and 15.6x FY2013E earnings. We recommend Buy on the stock.

IL&FS Transportation Networks 3QFY2012 performance highlights and results update

For 3QFY2012, on a consolidated basis, IL&FS Transportation Networks (ITNL) posted a good set of numbers, though below our expectations. The company reported strong growth on the top-line front; however, the fall in EBITDAM and high interest cost prevented top-line growth to flow to the bottom-line level. On account of 3QFY2012 performance, we are tweaking our FY2012 estimates and toll collection revenue numbers for operational BOT projects. Owing to the recent run-up in the stock price, we recommend Accumulate on the stock.

SpiceJet 3QFY2012 performance highlights and results update

For 3QFY2012, SpiceJet’s net sales grew by 41.6% yoy to Rs.1,176cr. EBITDA margin came in at negative 1.6%. At the EBITDA level, the company witnessed loss of Rs.19cr. Consequently, the company reported net loss of Rs.39cr during the quarter. We remain Neutral on the stock. For 3QFY2012, SpiceJet reported strong top-line growth of 41.6% yoy on the back of capacity additions during the year.

LIC Housing 3QFY2012 performance highlights and results update

For 3QFY2012, LIC Housing posted net profit growth of 43.2% yoy to Rs.306cr, above our estimates mostly due to reversal of excess provisions (~Rs.100cr) that the company was carrying on its balance sheet. We recommend an Accumulate rating on the stock.  For 3QFY2012, LICHF’s loan book grew strongly by 26.6% yoy (4.7% qoq) to Rs.58,707cr. Loan growth was driven by loans to the individual segment, which grew by 32.9% yoy to Rs.55,171cr, while loans to the developer segment declined by 27.2% yoy to Rs.3,536cr (6.0% of overall loan book).

MOIL 3QFY2012 performance highlights and results update

For 3QFY2012, MOIL’s net sales and EBITDA decreased by 5.4% and 31.9% yoy, respectively, mainly due to a steep decline in manganese ore prices. We recommend a Reduce rating on the stock. During the quarter, MOIL’s net sales decreased by 5.4% yoy to Rs.240cr (slightly below our estimate of Rs.248cr) mainly on account of the decrease in average realization (down 20.1% yoy and 1.9% qoq to Rs.7,993/tonne), partially offset by increased sales volume growth (up 19.5% yoy and 5.4% qoq to 285,500 tonnes).

IDBI Bank 3QFY2012 performance highlights and results update

For 3QFY2012, IDBI Bank reported a weak set of numbers, below our estimates on account of higher margin compression and higher-than-estimated provisioning. We recommend a Neutral rating on the stock. The bank’s advances grew by 16.2% yoy, while deposits increased by 17.9% yoy. CASA deposits growth continued to be healthy at 54.1% yoy (4.1% qoq), leading to a 462bp yoy improvement in CASA ratio to 19.7%. However, on a sequential basis, saving account deposits declined by 7.2% qoq due to shift to higher-yielding term deposits.

BGR Energy 3QFY2012 performance highlights and results update

BGR Energy’s (BGR) results were disappointing for 3QFY2012, as expected. The company’s top line for the quarter declined on account of a high base, leading to downbeat earnings growth. Amidst execution concerns, management has guided revenue of ~Rs.3,400cr for FY2012E, which is in a stark contrast to the earlier guidance of Rs.4,800cr and well below our conservative estimates of Rs.4,196cr. Hence, we revise downwards our FY2012E/FY2013E revenue estimates by 20.3%/7.6% and earnings estimates by 18.0%/18.9%.

Dena Bank Q3 FY12 results update by Nirmal Bang

Dena Bank's performance for Q3FY12 was good and broadly in line with expectations with growth in both NII and other income. The bank reported a net profit of Rs 186.7 crs in Q3FY12 resulting in a growth of 20.3% on a YoY basis and a QoQ decline of 3.6%. Although the bank reported comfortable NPA levels, we believe that the banks restructuring book is a cause of concern in the near term.

India Cements 3QFY2012 performance highlights and results update

India Cements (ICEM) reported strong operating performance during 3QFY2012. The company’s bottom line grew by 162.3% yoy to Rs.56cr. Bottom-line growth was largely due to improved cement realization (16.2% yoy to Rs.4,262 per tonne) and higher cement dispatches (6.9% yoy to 2.18mn tonnes), as cement demand in South India showed signs of recovery. We maintain our Neutral view on the stock.

Nagarjuna Construction 3QFY2012 performance highlights and results update

Nagarjuna Construction Company (NCC) posted a poor set of numbers for 3QFY2012, below our and street expectations. Owing to the company’s poor performance in 3QFY2012, we are revising our estimates downwards for FY2012. Further, on account of the recent run-up in the stock price, we recommend Neutral on the stock.

Subros 3QFY2012 performance highlights and results update

Subros (SUBR) reported weak results for 3QFY2012, led by a yoy decline in its volumes and higher interest expense. However, sequentially, higher interest cost and depreciation expense impacted the company’s performance. We expect passenger car demand to improve in FY2013E, led by the likely easing of interest rates, thereby benefitting SUBR. We recommend Accumulate on the stock.

Madras Cements 3QFY2012 performance highlights and results update

For 3QFY2012, Madras Cements (MC) posted a strong performance, with net profit surging by 76.7% yoy to Rs.77cr. Strong bottom-line performance was on account of both 19.1% yoy growth in dispatches (though on a lower base) and 8.6% yoy growth in realization. We remain Neutral on the stock.

Finolex Cables 3QFY2012 performance highlights and results update

For 3QFY2012, Finolex Cables (Finolex) reported a 2.6% yoy decline in its top line to Rs.499cr. The company’s operating profit declined by 18.8% yoy to Rs.41cr. OPM declined by 165bp yoy but improved by 29bp qoq to 8.3%. PAT came in at Rs.14cr, down 47.7% yoy and 30.6% qoq. Going ahead, the business outlook remains positive, given the growth prospects in user industries and higher sales from the high-tension (HT) cables plant.

Sadbhav Engineering 3QFY2012 performance highlights and results update

For 3QFY2012, Sadbhav Engineering (SEL) reported another set of strong numbers, marginally ahead of our expectations (highest on street) and way ahead of street estimates. Order inflow for 9MFY2012 stood at Rs.742cr, order book remained decent at Rs.5,940cr (2.7x FY2011 revenue). We are revising our toll  collection estimates for Ahmedabad Ring Road and Aurangabad Jalna projects. Also, we are factoring in lower interest cost for FY2013E as per management’s guidance.

Bajaj Electricals Q3 FY12 results update by Nirmal Bang

Bajaj Electricals has reported a dismal performance where the EBIDTA margin was down by 210bps YoY to 8.2% in Q3FY12 as against 10.3% in Q3FY11 led by the slump in Engineer & Project division (E&P) which reported a decline in margins by 580bps YoY to the tune of 3.6% in Q3FY12. The company reported a jump in net revenue by 15% YoY and by 13.5% QoQ to Rs. 792.86 crores.

Dr. Reddy’s Laboratories 3QFY2012 performance highlights and results update

Dr. Reddy’s Laboratories (DRL) reported higher-than-expected 3QFY2012 results. Net sales increased by 45.9% yoy, led by 57% yoy and 12% yoy growth across the global generics and proprietary products businesses, respectively. This aided an expansion of the operating margins and subsequently a higher net profit growth during the period. Management has reinforced its FY2013 guidance of US$2.7bn, with RoCE expected to come in at 25%. We maintain our Buy rating on the stock.