Escorts Ltd is India's leading automotive & engineering conglomerate operating in the high growth sectors of Agri-machinery, construction & material handling equipment and railway equipment. Agri-machinery accounts for 80%, Construction Equipment 14% and Railway segment 6% of the revenue.
* Robust outlook for the tractor segment
The voltas management believes that the impact of demonetization of currency should normalize by February, well in time before the peak season kicks in. Inventory levels at industry-wide level is also within limits and is not a concern. However, delivering revenue growth in UCP segment could be tough as it would have to grapple with 1) Demonetisation impact 2) Relatively high base of Q3FY16.
Demonetisation impact - Wholesale and Rural sales affected; Modern Trade and Chemist channels performing well:
Like other FMCG companies, Marico is also feeling the pinch from the Government’s demonetisation measure, with its sales expected to be lower in H2FY2017. About 30-35% of Marico&rsquo
Indiabulls Housing Finance (IHFL) is now focused on the housing loan segment. It has executed consistently on its strategy of expansion by
* focusing on the affordable housing segment,
* growing its loan book using better technology,
* leveraging its financial strength and improving its ratings to increase competitiveness
Unichem laboratories is mainly focused on formulations, API manufacturing and caters to various therapeutic areas like gastroenterology, cardiology, diabetology, anti-bacterials, anti-infectives etc. Company's domestic business accounts for ~58% revenue and has strong brands like Losar, Losar H, Ampoxin etc. Exports accounts for ~42% of revenue of which US business is major contributor with
Cipla recently received the UKMHRA’s approval to launch its combination inhaler Sereflo (gSeretide - indicated for Asthma treatment) in the UK market. The UK sales for gSeretide stood at $288 million (around Rs1,950 crore) as of June 2016 end. The UK is a lucrative market for gSere
The recent spike in Spot LNG prices (31% qoq) due to seasonal factors/ higher crude oil prices reduces the relative attractiveness of LNG to alternate fuels like Naphtha/FO. Additionally, slowing industrial demand due to demonetization will impact gas demand in the near future, we opine. Though, we are hopeful that this trend will change earlier than expected but will negatively impact GSPL'
* We believe that LIC Housing Finance (LIC Housing) stands to gain materially in the medium to long term from the Government’s demonetisation drive and its after-effects. Although in the near term, the company’s business could witness some deceleration, in line with most of the financial sector, we are positive on the long-term p
Fiem Industries is among the leading manufacturers of automobile lightings, signaling equipment and rear view mirror for two wheelers and four wheelers. It has also forayed in LED luminaires for indoor and outdoor applications and Integrated Passenger Information System with display and softwares for buses, metros and railways. It has 9 manufacturing units in India with diversified products bas
The US Food & Drug Administration (USFDA) inspected Divis Laboratories’ (Divis Lab) Unit-II at Visakhapatnam (Vizag) from November 29 to December 06. The USFDA has issued Form 483 with five observations, which are moderate to serious in nature. One of the five observations: that
We recently met with the management of IRB Infrastructure and following are the key takeaways of the meeting-
* Order inflows stood fairly strong during FY17. Expects healthy IRR on these projects.
* Company is on track to list InVIT by March, 2017.
* Recent arbitration claims to ease debt burden
* Demonetization didn't impact the construction schedul
* Seasonally weak quarter affected by delay in project execution:
In Q2FY2017, the standalone revenue of Gayatri Projects (GPL) grew by 10.3% YoY to Rs350 crore, hindered by a prolonged monsoon and land acquisition delays in starting work at new project sites. Further, the Operating Profit Ma
* We attended the analyst meet of BEML in which the company outlined its outlook on the three broad revenue segments ie Mining, Railways and Defence.
* The company believes that all the three segment have strong growth potential. The company is a play on rollout of Urban transit systems across country. Railways offer huge growth opportunities in terms of replacement of existing coache
Credit Analysis and Research Ltd (CARE) is in the business of analysing and giving financial ratings to companies based on their financial health. Apart from this, it rates debt and bond instruments floated by various institutions. It is the second largest rating agency in India in terms of rating revenue.
Surplus deficit to keep zinc prices firm
LME zinc price is up ~63% YTD CY16 and has significantly outperformed other base metals. The sharp rally in the prices is driven by mine closures, leading to deficits in both the concentrate and refined metal markets. In addition, decline in inventory to 429kt has also supported the zinc prices. We expect, zinc
Demonetisation to impact demand in Indian operations:
The Government of India’s demonetisation move (banning of high denominated currency notes of Rs500 and Rs1000) has led to a cash crunch situation and has impacted demand in the consumption space (FMCG, Consumer Discretionary). Post the demonetisation announcement, the RBI
Fears of transit pain overshadows long term potential; Upgrade to BUY
The recent demonetization move has led to fears of growth moderation and deterioration in asset quality in LAP and business loans for Bajaj Finance (BAF). Although the initial data points shared by the management point towards stability, situation warrants close monitoring. We believ
IRB Infrastructure receives Rs270 crore arbitration claim for two projects:
IRB Infrastructure Developers (IRB Infra) has received 75% of the arbitration award amounts for two projects, namely Ahmedabad Vadodara Super Expressway (Rs21 crore) and Goa/Karnataka Border to Panaji/Goa (Rs249 crore), aggr
We met Voltas’ management and the key takeaways from the meeting are: (1) Demand for AC should normalise as liquidity improves in the system over next 2‐3 months and is preparing for the summer demand as per schedule, (2) Focus continues to be on profitability and improving brand equity for the UCP business, (3) After the launch of Air Cooler, Voltas is also looking at adding more produ
A fresh start – walking away from the past
* We attended the analyst meet of Bharat Earth Movers Ltd (BEML) wherein the company spelt out the revised strategy and focus areas for improving the segment performance. While the company indicated its FY18 revenue growth plans across all segments, management refrained from commenting on segment EBITM.<