Signs of rural pickup more evident - Motilal Oswal

Back on the saddle – Volume II

Signs of rural pickup more evident In our Rural Strategy note, Back on the Saddle, which we released in August 2017, we had highlighted the potential consumption revival in Rural India. Now, as we look back at the just-concluded 2QFY18 earnings season, we note that signs of a pickup in rural consumption are indeed

22/11/2017 3:30:07 PM | Posted in Special Event Reports read full news
Exclusive: Prescient messages about Indian companies circulate in WhatsApp groups

By Rafael Nam

MUMBAI  - Three days before Dr. Reddy's Laboratories Ltd announced quarterly results this summer, a message circulated on a private WhatsApp group saying the Indian drugmaker would not post good numbers.

Dr. Reddy's was going to report a loss, according to the message on the "Market Chatter" group, which was posted on Jul

21/11/2017 10:59:15 AM | Posted in Special Event Reports read full news
QFY18 review demand trends still mixed; GST and cost control aid margins - Kotak Sec

2QFY18 review – demand trends still mixed; GST and cost control aid margins. Likely partial retention of higher input tax credits in the GST regime and the stepped-up cost control drive aided strong EBITDA and PAT growth print for our FMCG coverage universe in 2QFY18. That said, given the noise induced by GST-related destocking, restocking cycle in quarter

20/11/2017 5:24:19 PM | Posted in Special Event Reports read full news
Up, up and Upgrade Moody`s swings India`s way - IIFL

Roads do not upgrade or maintain themselves. Bridges do not repair themselves or rebuild themselves - Martin O'Malley

The street and the government ought to be pleased today. The continued progress on economic and institutional reforms will, over time, enhance India's high growth potential, says rating agency Moody's Investors Service, whic

17/11/2017 5:54:18 PM | Posted in Special Event Reports read full news
Fears of fiscal deficit slippage are exaggerated - Motilal Oswal

Fears of fiscal deficit slippage are exaggerated

Combined analysis of center and 16 states discards such fears

*  One of the serious contentions today, which has afflicted the analysis of the monthly accounts of the central government, is if the center has appropriately distributed the tax collection wi

17/11/2017 4:12:30 PM | Posted in Special Event Reports read full news
2QFY18 Earnings Review A breath of fresh air - Motilal Oswal

2QFY18 Earnings Review: A breath of fresh air

* Domestic MFs maintained their positive momentum in October, with equity AUM touching a new high of INR7.1t (+7.4% MoM) in the month – also marking the quickest INR1t jump.

* The increase in equity AUM was led by a rise in market indices (Nifty up 5.6% MoM). While gross inflows declined 13

17/11/2017 12:14:28 PM | Posted in Special Event Reports read full news
Relapse of curve steepening; Private lender ahead in cyclical upturn - Emkay

Multiple indicators suggest that the recent hardening of G-sec yields will sustain going forward, as the temporary macro disturbances normalize. Reversal in some of the domestic indicators such as revival in credit growth, decline in systemic excess liquidity, still leveraged banking system, increased supply of government debt and revival in inflationary pressure have reinforced our earlier con

16/11/2017 5:42:17 PM | Posted in Special Event Reports read full news
Earnings outlook better after generally good 2QFY18 results - Kotak Sec

Long time, finally see. 2QFY18 results were generally good and may have put a floor to earnings of the market and several sectors after downward revisions over the past several quarters. We now expect FY2018E and FY2019E net profits of the Nifty-50 Index to grow 4% and 23%. However, valuations are rich and India’s macro outlook has dimmed with likely highe

15/11/2017 5:47:33 PM | Posted in Special Event Reports read full news
Lupin FY17 - Annual Report - Motilal Oswal

Lupin’s (LPC) FY17 annual report analysis highlights the management’s increasing thrust on transforming it into a complex generics company and achieving growth through acquisitions. This led to (a) R&D costs rising by 34% to INR23.1b, 13% of revenue, (b) depreciation and amortization rising by 86% to INR9.1b, 5% of revenue, and (c) finance cost rising by 1.5x to INR1.5b, 1% of r

15/11/2017 5:41:41 PM | Posted in Special Event Reports read full news
October CPI inflation picks up as supply disruption weighs on food prices - Kotak Sec

Inflation continues to inch up.

CPI inflation continued to move up and looks set to touch the 4% mark in November. Vegetable prices continued increasing sequentially on the back of unseasonal rains even as core inflation remained flat. We maintain our call that the RBI would pause for the rest of FY2018. With RBI fixed on the 4% target on a durable bas

14/11/2017 5:16:15 PM | Posted in Special Event Reports read full news
GST/ RERA-related issues have hurt near-term demand Revival to be led by better tax compliance and preference for brands - Equirus Sec

We met several listed/unlisted companies at the recently-concluded ACETECH Exhibition in Mumbai. The consensus was that there would be demand pressure and stretched WC cycles in the short term due to GST-related issues and RERA implementation, forcing the real estate industry to pass through a transition phase. At the same time, all organized players were optimistic that GST rates for tiles wou

14/11/2017 5:00:42 PM | Posted in Special Event Reports read full news
India Industrial Production - September 2017 - IIFL

India Industrial Output Growth During September Slowed To 3.8%,When Copared With The Rate Of 4.5% During The Month Prior.Growth For First Half Of This Fiscal Year Is Reported At 2.5%Lower Than Pace Of 5.8% During Same Period Last Year.Sluggishness In THe Manufacturing Activity Continues To Take A Toll On The Headline Reading. Manufacturing Output During The First Six Months Of FY18 Has Expanded

14/11/2017 4:52:45 PM | Posted in Special Event Reports read full news
Inflationary concern to augment in Q4 - Emkay

Retail inflation in Oct’17 increased to 3.6% yoy, however it is tad lower than our expectation of 3.7%. Overall build up in inflation remained strong and was broad based. Food inflation particularly vegetables inched up further this month, this trend will further intensify in Nov-Jan’18 as the last year’s base of demonetization sets in. Even with recent ease in GST rates, we d

14/11/2017 4:46:53 PM | Posted in Special Event Reports read full news
CPI inflation hits seven-month high in October - Motilal Oswal

CPI inflation hits seven-month high in October

Vegetable, housing inflation surges; core inflation unchanged

*  CPI inflation inched up to 3.6% YoY in October 2017, higher than consensus of 3.4%, but lower than our estimate of 3.8%. This was the highest level of inflation in seven months.

* Th

14/11/2017 4:43:05 PM | Posted in Special Event Reports read full news
GST Rate Revisions More Earnings Power For Several Names - Kotak Sec

GST rate revisions – more earnings power for several names.

GST council’s decision to revise rate downwards on several items should enhance earnings power of several companies in our universe – (1) directly via partial retention of the lower overall indirect tax incidence, and/or (2) indirectly via volume elasticity driven by consumer

14/11/2017 4:35:15 PM | Posted in Special Event Reports read full news
India Strategy Weekly outlook Hints of uncertainty - ICICI Sec

Hints of uncertainty

* Signals from US bond market and rising risks to US tax reforms create uncertainty for US growth outlook: US treasury yield curve (difference between 2-year and 10-year US treasuries) has been flattening for a while and is now close to the narrowest level seen since 2007, clouding the outlook for l

14/11/2017 2:49:14 PM | Posted in Special Event Reports read full news
Making GST more palatable - Motilal Oswal

Rates slashed

Making GST more palatable The GST Council, in its 23rd meeting, has made significant changes to the tax framework, pruning the tax rates and easing the compliance burden for SMEs. The reduction in taxes is estimated to have an impact on government revenue to the tune of ~INR200b. We believe the reduction in duties will benefit sectors li

13/11/2017 5:55:30 PM | Posted in Special Event Reports read full news
Some festive season cheers for industrial production - Kotak Sec

Some festive season cheers for industrial production.

September IIP growth at 3.8% was a reflection of (1) buoyancy in the run-up to the festive season and (2) gradual normalization after the GST rollout. However, The internals of the IIP paint a mixed picture with some encouraging sign in the capital goods segment while consumer durables segment remai

13/11/2017 5:15:04 PM | Posted in Special Event Reports read full news
IIP disappoints but turnaround expected in H2FY18 - Emkay

IIP slowed to 3.8%, in line with our expectations; most of the manufacturing industries reported a sub 5% growth. Activity turned weaker in Sep’17 from Aug’17 despite the festive seasonality. Drag in IIP continued to be more pronounced from consumer durables sector, we believe this sector would witness turnaround in H2FY18 with the lag effect of government spending on demand. Some p

13/11/2017 4:52:28 PM | Posted in Special Event Reports read full news
Arvind Fashions and Anup Engineering set to become independent of parent Arvind Ltd

Mumbai, November 08, 2017: Arvind Limited, India’s largest textile and branded apparel player, announced its decision today to demerge its Branded Apparel and Engineering businesses from the parent company.  

The Branded Apparel business will be demerged into the entity Arvind Fashions Limited. At 25% CAGR, the branded apparel business

9/11/2017 5:42:54 PM | Posted in Special Event Reports read full news
United Spirits FY17 - Annual Report - Motilal Oswal

United Spirits’ (UNSP) FY17 annual report analysis highlights net revenue growth of 4%, driven by premiumization and price increases, primarily at the standalone level. EBITDA margin expanded 70bp to 11.4% at the standalone level, but declined 20bp to 11.2% at the consolidated level. Losses in subsidiaries led to consolidated PAT (at INR0.9b) being lower than standalone PAT (at INR1.7b).

9/11/2017 2:17:23 PM | Posted in Special Event Reports read full news
Hindalco FY17 - Annual Report - Motilal Oswal

Hindalco Industries’ (HNDL) FY17 annual report highlights muted revenue growth of 1.4% to INR1,026b. Yet, EBITDA increased significantly from INR88b in FY16 to INR124b due to higher gross margin (up from 41.3% in FY16 to 45.8%). HNDL hedging as a % of sales (for standalone business) has been varying over the years. Commodity hedges grew from 38% of standalone revenue in FY16 to 82%. In ou

Views on One Year Completion Of Demonetisation By Parthasarathi Mukherjee

Below Is the View On One Year Completion Of Demonetisation of By Mr. Parthasarathi Mukherjee, MD & CEO, Lakshmi Vilas Bank.

“It is now a year after the event and, on reflection, I feel that the impact for the banks has been largely positive. Besides the fact that banks picked up deposits, during the demonetisation drive, a lot of small loans got paid off, ma

8/11/2017 12:11:41 PM | Posted in Special Event Reports read full news
Sectors and Stocks Impacted in One Year post Demonetsiation - Yes Securities

It’s been a year since demonetization was announced. While some sectors/ stocks benefitted from the same, some were fairly impacted. Below is the comment from Ms. Nitasha Shankar, Sr. Vice President and Head of Research at YES Securities (I) Ltd. on stocks and sectors that were impacted in the one year period post demonetization for your reference.  

Mos

8/11/2017 12:04:42 PM | Posted in Special Event Reports read full news
View On One Year Completition Of Demonitisation By Mr. Ashishkumar Chauhan

Below Is the View On one year Completition Of Demonitisation By Mr. Ashishkumar Chauhan, MD & CEO BSE

“Demonetisation was definitely a bold and timely move. Prime Minister Shri. Narendra Modi announced this exercise a year ago and we have seen a considerable impact in the year that followed. The main objective of bringing unaccounted money within the system

7/11/2017 5:51:03 PM | Posted in Special Event Reports read full news