* Regulatory forbearance likely for SMEs and small borrowers…:
Media reports suggest that the government may ask the RBI to consider lenient loan classification norms, especially for SME and MSME units. Loans may not need to be classified as NPA if interest or repayment is overdue for more than 90 days.
Our consumer universe posted Q2FY17 net sales/EBITDA/adj. PAT growth of 8%/9%/13% YoY. We have been underweight on the sector for the last 12 months and continue to find the risk-reward unattractive even after the recent correction, as valuations need to be adjusted to a lower earnings profile for the sector (10-12% over FY16-FY19E vs. 20% over FY08-FY16). We retain ITC as BUY and find risk-rew
In the wake of cash demonetisation, the general consensus is that property prices across India are set for a 10-20% correction. This is negative for HFCs as our analysis suggests that property prices rather than volumes underpin HFC loan growth. HFC margins too could come under pressure as (1) benefits of lower wholesale cost from falling yields may be short-lived and (2) competition from banks
NIFTY REALTY Current Close: 168.35 Trend : Negative
* NIFTY REALTY is one of the most underperforming sectoral indices, as it closed down by a massive 13.84% at 168.35, as against a down move of 1.63% in benchmark NIFTY 50.
* After facing strong resistance @ 215 - 220 level fr
NIFTY PSU BANK Current Close: 3320.25 Trend : Positive
* NIFTY PSU BANK is one the most outperforming sector amongst all the indices last week, as it has moved up by a massive 12.13%, as against a down move of 1.63% in benchmark NIFTY 50.
* In the last week, the Sector has given
The Indian Pharmaceutical Market (IPM) grew at a slow 8.6% YoY in Oct’16, due to a high base and weak anti-infective/anti-malarial sales. Volume growth tumbled to 2.6% YoY from 6.5% in Sep’16, while pricing and new launches were broadly unchanged. The NLEM and non-NLEM markets remained under pressure, as did the FDC market. Therapy-wise, the anti-diabetic, cardiac and dermatology se
While most OEMs registered strong yoy growth, few players like Bajaj Auto (BAL), Hero MotoCorp (HMCL) & Maruti Suzuki India (MSIL) saw weakness in their respective dispatch numbers on sequential basis. As per the auto dealers, though festive season – which started on weak note – improved around Diwali, while other factors like payouts of 7th Pay Commission, availability of new m
We forecast a 7.9% CAGR in India’s apparel and retail sector to Rs 300bn over FY16-FY20 as an increasingly youthful, urbanised consumer base leverages rising income levels to uptrade to branded goods. We expect (1) Indian players to gradually match global peers on margins (as store costs moderate) and ROCE (as working capital cycle ease), (2) big brands to dominate, and (3) e-shopping to
As per RBI data, credit growth for the fortnight ended 28 Oct’16 improved to 9.1% YoY while deposit growth declined to 9.8%. Investment growth declined marginally to 8.4% YoY while SLR remained stable to 26.9%. Credit growth has been weak over the last few months due to low corporate demand and a lack of fresh investments. We do not see material improvement ahead and forecast 10-11% YoY g
Power Grid Corporation of India’s (PGCIL) ordering witnessed a strong 65% YoY increase to ~Rs171bn in H1FY17. Even discounting a chunky order worth Rs58bn for HVDC project, growth has been 9% on a relatively higher base. Strong ordering in FY16 and FY17 (healthy growth in PGCIL’s investment approvals as well) so far points at strong order booking and revenue visibility for the T&
Overhang of US elections removed.
Last week’s free fall in global and Indian generics priced in (1) potential progress in the two year old DoJ case over drug pricing, and (2) overhang of the US elections, particularly, concerns over a potential Democrat sweep. Yesterday’s Republican sweep removes the election overhang and assuages concerns
We recently hosted NHAI chairman Mr. Raghav Chandra in Mumbai for investors meeting. The interaction reinforces our bullish stance on the Indian road sector given the extensive ramp-up in road projects awarding planned in coming years for which structural policy changes are already in place. NHAI has identified ~75 projects worth 4,435km which are toll generating and can be monetized under the
Global metals and mining stocks have reacted positively perhaps taking cues that a Trump presidency could launch significant fiscal stimulus in US and boost demand for metals. In his victory speech last night, presidential elect did mention that he would prioritize rebuilding of American infrastructure with hopes of doubling U.S. economic growth. There are expectations of lower taxes, higher in