SNI MARKET OUTLOOK UPDATE 01ST NOVEMBER 2013 : Expect market to open on a flat note on account of global cues. U.S. stocks finished half percent lower as the Federal Reserves statement the day before added to investors anxiety about the timing of a pullback in its stimulus program. Core Infrastructure sector for the month of October grew by 8% (38% weightage of IIP), first time since 11 months. Dr Reddy reported better than expected Q2 result and we have buy rating on the stock. Bank of Baroda and IDFC reported Q2 results ahead of estimates. Petrol price was cut by Rs 1.15 a litre, the second reduction in rates in a month, while diesel prices were raised by 50 paise per litre. Research Updates: IDFC 2QFY14: Above est.; NIMs stable QoQ; Growth remains moderate; PPP inline; Lower Provisions drive PAT beat ‐ IDFC’s 2QFY14 reported PAT grew 3% YoY and declined 13% QoQ to INR4.87b (14% above est.). PPP adjusted for lumpy trading gains grew 2.3% YoY to INR6.7b (Est. of INR6.8b) Key highlights a) Stable spreads (rolling 12m) QoQ at 2.4%; calculated spreads up 10bp QoQ b) Trailing 12months Cost to income ratio at 15% c) Asset quality stable QoQ with GNPA/NNPA at 32/20bp and d) Other operating income (ex‐ fixed income and principal income) were at INR1.2b (down 10% YoY) vs. est. of INR1.4b due to muted loan related fees Based on the current estimates stock trades at AP/ABV of 0.9/0.8x FY14/15E. Maintain Buy with SOTP of INR145. For more details log on to sainathinvestment
Posted on: Fri, 01 Nov 2013 04:04:56 +0000
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