Chemical Sector Update - Equirus Sec

Key Takeaways

● Indian chemical companies continue to maintain their bullish stance in terms of prospects over the next 2-3 years given the issues in China related to pollution control norms not showing any impending signs of slowing down

● Prices of raw materials like Toluene, Sulphuric Acid, Phenol had been on an upward trend, in respon

14/10/2017 2:27:58 PM | Posted in Broking Firm Views - Sector Report read full news
Insurance Sector Update - Kotak Sec

Select large players drive growth. Business momentum in September 2017 remained robust with 23% growth in private sector’s overall APE and 19% at LIC translating into 21% growth for overall industry. Within private sector, growth was driven by select large players, viz. Bajaj Allianz, HDFC Life and PNB Metlife, while Max Life and ICICI Life witnessed moder

Energy - 2QFY18E preview—strong quarter across the board - Kotak Sec

2QFY18E preview—strong quarter across the board.

We expect energy sector companies to report robust profits in 2QFY18—(1) OMCs are expected to benefit from higher refining margins, increase in ‘implied’ marketing margins and adventitious gains, (2) RIL’s standalone performance will be boosted by strong refining and petchem

12/10/2017 3:25:46 PM | Posted in Broking Firm Views - Sector Report read full news
Metals & Mining Sector Update - Kotak Sec

2QFY18 preview—good for all. Domestic metal companies will report strong sequential improvement in earnings led by higher prices and volume. We expect earnings of large cap. steel companies to increase by 5-19% qoq led by improved realizations and higher steel volumes from project ramp-ups. The earnings of nonferrous names will improve on the back of highe

12/10/2017 3:19:58 PM | Posted in Broking Firm Views - Sector Report read full news
India Automobiles Moving into fast lane backed by rural catalysts - Emkay

Moving into fast lane backed by rural catalysts

Key trends

The Indian automobile industry is in a sweet spot on the back of a cyclical recovery across segments. Rural India is turning out to be the growth frontier for the automobile industry, as near-normal monsoon for 2 years and receding effect of demonetiza

12/10/2017 9:28:14 AM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector—on a weak footing - Kotak Sec

Cement prices—on a weak footing.

All-India cement prices declined by ₹8/bag mom in October 2017, maintaining the weak trend seen through the monsoon period. Price changes were marginal in North and West markets while South and East saw a sharp fall of ₹16-18/bag mom. Weak price trends threaten another year of earnings downgrades on the back

11/10/2017 12:49:22 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector Update - IIFL

Strong volume performance

Post revised emission norms and GST rollout, Indian auto sector reported a strong volume performance. Advent of festive season and lower interest rates further buyed demand, particularly for passenger cars and two wheelers, backed by neew model launches, enthused rural buyers and high pent up demand in the system (as prices we

10/10/2017 5:43:38 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update - Reliance Sec

Favourable Cross Currency Movements to Aid Growth

Sector Preview

We expect the IT firms under our coverage universe to post a combined 3.3% QoQ rise in USD revenue in 2QFY18. We expect the Top-5 IT firms to post 2-4% QoQ USD revenue growth in reported terms (1-3% in CC terms), with TCS and HCL Technologies (HCLT) to lead the

10/10/2017 5:15:38 PM | Posted in Broking Firm Views - Sector Report read full news
India steel exports rise 71% YoY to 1.1mt in September - Motilal Oswal

India steel exports rise 71% YoY to 1.1mt in September

* Indian steel: Long product (TMT Mumbai) prices were down ~2% WoW. Sponge iron prices were down ~2% WoW, while domestic scrap prices were unchanged. NMDC cut iron ore fines/lump prices by INR100/t. Pellet prices were unchanged. Domestic HRC prices were unchanged.

* Raw materials: Iron or

10/10/2017 12:28:31 PM | Posted in Broking Firm Views - Sector Report read full news
GRMs up YoY/QoQ; crude prices up YoY/QoQ - Motilal Oswal

GRMs up YoY/QoQ; crude prices up YoY/QoQ

Inventory gains to boost refiners’ earnings

* Singapore complex GRM was USD8.3/bbl in 2QFY18 v/s USD6.4/bbl in 1QFY18 and USD5.1/bbl in 2QFY17. Inventory gains are likely to boost earnings further.

* Average Brent crude price was up 13% YoY and 3% QoQ to USD51.5/bbl. W

10/10/2017 12:21:51 PM | Posted in Broking Firm Views - Sector Report read full news
Merchant rate surges due to poor hydro generation and high demand - Emkay

Merchant rate surges due to poor hydro generation and high demand

* Power generation increased by 7.8% yoy in Aug’17 (excluding Renewables), driven by a strong 16.5% yoy rise in generation across the Coal space, which was partially offset by low generation across Hydro (-12.1% yoy) and Nuclear (-36.0% yoy) segments.

* The overall indust

10/10/2017 12:07:48 PM | Posted in Broking Firm Views - Sector Report read full news
Infrastructure Sector Update - Kotak Sec

E-way bill to change pricing dynamics and formalize logistics ecosystem.

The recently notified e-way bill can bring down road freight pricing meaningfully. This will coincide with the benefits of double stacking peaking at Concor, leading to volatility in its margin till the commissioning of DFC. Seen differently, the e-way bill will also set the stage

9/10/2017 5:30:10 PM | Posted in Broking Firm Views - Sector Report read full news
Technology Keeping expectations low as US continues to drag - Motilal Oswal

Keeping expectations low as US continues to drag

Familiar story – weakness despite seasonal strength: The seasonal strength of 1Q was watered down by a delay in BFS recovery, which most companies were hoping for to drive an improved performance for the year. Any revival in spend – albeit there have been increased discussio

9/10/2017 10:27:34 AM | Posted in Broking Firm Views - Sector Report read full news
Banking Sector Update - Motilal Oswal

Earnings to remain subdued

Provisioning pressure to stay elevated; margins likely to remain muted

* The key factors expected to impact earnings for the quarter are: (a) tepid corporate loan growth, (b) excess liquidity chasing quality credit (pressure on yields), and (c) progress on stressed asset resolutions under Insolvenc

9/10/2017 10:24:25 AM | Posted in Broking Firm Views - Sector Report read full news
Cement - 2QFY18 Preview - Healthy Volumes, Costs Outweigh Realizations - Kotak Sec

2QFY18 preview—healthy volumes, costs outweigh realizations.

A modest price increase and healthy volume growth, although dented by higher production costs, will likely underpin 2Q earnings. Profitability of cement companies will be down (3% yoy) as cost pressures out-weigh the price increases and volume growth. Sequentially, the price decline ha

7/10/2017 2:46:40 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom - OpenSignal report 2.0: not a happy reading for the incumbents - Kotak Sec

OpenSignal report 2.0: not a happy reading for the incumbent

OpenSignal’s second State of Mobile Networks: India report shows a marked deterioration in 4G as well as 3G speeds for the incumbents and improvement for Jio versus the first report released six months back. As expected, Jio continues to lead the industry on 4G availability. What is sur

7/10/2017 2:39:07 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector Cost escalations to impact profitability - ICICI Sec

Cement companies under our coverage are likely to report average EBITDA/te decline of ~Rs100/te YoY and ~Rs240/te QoQ mainly led by cost escalations which could not be passed-on owing to seasonality. Total costs/te are expected to be up by 3-4% YoY and QoQ led by price increases in pet coke, diesel, slag, packing material etc. Average realisations are likely to be down ~4% QoQ in South and 2-3%

6/10/2017 4:31:29 PM | Posted in Broking Firm Views - Sector Report read full news
Consumer Products 2QFY18E preview – start of a heady earnings growth phase - Kotak

2QFY18E preview – start of a heady earnings growth phase?

Low base, GST-driven gains for the organized players and benign-again RM environment are likely to reflect in an improvement in revenue and profit growth trajectory for our FMCG coverage universe. We expect the trajectory to only get better for at least the next couple of quarters but woul

6/10/2017 4:14:06 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG Sector Update - Reliance Sec

GST Roll-out to Depress Quarterly Performance

We expect our consumer coverage universe comprising of 18 companies to report 4.3% YoY, 5.3% YoY and 7% YoY growth in revenue, EBITDA and net profit, respectively in 2QFY18. Despite a subdued YoY performance, we expect a marked improvement in sequential performance. Teething troubles post GST roll-out in J

6/10/2017 4:05:11 PM | Posted in Broking Firm Views - Sector Report read full news
Automobiles Q2FY18 Results Preview - Emkay

Automobiles

* Revenue to surge in Q2FY18: Revenue growth is expected to be robust primarily due to the early festive season (Navratri in Q2 in FY18 vs Q3 in FY17), strong rural demand and higher realizations. Most automotive manufacturers are likely to report double-digit revenue growth, with best performers being Escorts (+33% yoy), A

6/10/2017 11:43:49 AM | Posted in Broking Firm Views - Sector Report read full news
NBFCs Strong growth across segments - Motilal Oswal

Better profitability aided by declining cost of funds

* We expect gradual improvement for microfinance institutions (the most impacted segment post demonetization) and vehicle financiers (led by better monsoon). Post implementation of GST, while growth has moderated, we expect improved loan demand from SMEs due to inventory restocking and cash flow mi

6/10/2017 11:31:15 AM | Posted in Broking Firm Views - Sector Report read full news
Monthly Auto Sales - September 2017 - SPA Sec

Most of the automakers in India registered double-digit growth in September, with strong demand around Navratri offsetting the setback from increased cess on large cars and SUVs. Sales at market leader MSIL rose nearly 10% to top 1.5 lakh units. The festival of Navratri saw an 18% increase in bookings and 15% growth in shipments to dealerships. At Tata Motors, the recently launched Nexon booste

5/10/2017 3:29:23 PM | Posted in Broking Firm Views - Sector Report read full news