BLOOMBERGQUINT BROKERAGE RADAR

Emkay on United Spirits
Maintain Reduce with TP of Rs 600
Q1FY19 results: disappointing numbers
Overall volume grew by 1% vs expectation of +14%
Gross margin improved by due to price hikes in key states and better product mix

Macquarie on United Spirits
Maintain Underperform with TP of Rs 443
Q1FY19 adjusted net profit below estimates on account of higher Ad and other spends
Volume growth in-line with our estimates
Expect Ad spend to remain high on higher competitive intensity
Expect significant downgrades to consensus

Morgan Stanley on United Spirits
Maintain Equal-weight with TP of Rs 650
Weak volume growth and sharp increase in costs affected Q1 margins
See low visibility on earnings growth, especially after weak Q1
Stock to trade lower on continuing overhang of GST uncertainty

Macquarie on ACC
Maintain Neutral with TP of Rs 1,640
Strong quarter, but remain cautious
ACC should start underperforming on volume growth in absence of capacity additions
Valuations have corrected, but triggers for a re-rating are lacking
Expect costs to ease in coming quarters

CLSA on ACC
Maintain Buy; Cut TP to Rs 1,900 from Rs 2,150
Q2CY18: Strong with EBITDA and net profit ahead of estimates
Surprisingly strong realisations and modest cost inflation
Cut earnings estimates by 10%-12% as lower realisations expected in H2CY18 and CY19

JPMorgan on ACC
Maintain Neutral; Cut TP to Rs 1,500 from Rs 1,680
Adjusted EBITDA a big beat driven by realisation and cost controls
Delivered meaningful improvement in operating trends over the last six quarters
ACC’s valuation is cheap, and earnings surprise could drive a sharp rally
Clarity on new capacity expansion/M&A will be key

Morgan Stanley on ACC
Maintain Overweight with TP of Rs 1,887
Earnings surprise led by better realisation owing to geography and mix channel
Expect margin expansion to drive earnings as utilisation and volume growth at peak
Expect freight cost to remain stable at these levels in ensuing quarters

Macquarie on Hindustan Zinc
Downgrade to Neutral from Outperform; Cut TP to Rs 276 from Rs 316
Adjusted Q1FY19 EBITDA in-line on the back of strong prices
With upcoming mine supply, zinc prices to remain under pressure
Expect inconsistent dividend payout, price headwinds and back-ended volume growth
Premium valuation difficult to justify

Credit Suisse on Hindustan Zinc
Maintain Neutral; Cut TP to Rs 295 from Rs 325
Q1 EBITDA miss on the back of lower volumes and long-term wage settlement
Below EBITDA, lower-than expected other income led to net profit miss
Cut FY19 volumes and increase costs to incorporate higher coal costs and wages

CLSA on L&T Tech
Maintain Buy with TP of Rs 1,750
Q1FY19: stellar revenue growth but margin miss
Large deals ramping up, pipeline healthy and client mining strong
Secular growth and cyclical recovery story intact

CLSA on ICICI Securities
Maintain Buy; Cut TP to Rs 480 from Rs 520
Q1 profits tad below estimates
Slower growth in broking revenues offset by healthy growth in distribution/corporate finance
Lower participation from retail clients was the key drag
Uptick in retail trading volumes will be key to profitability