India PharmaScope - Convalescing post-demonetisation - RCML

Growth in the Indian Pharmaceutical Market (IPM) recovered to 10.1% YoY in Jan’17 from 7.2% in Dec’16, driven by a volume uptick as demonetisation headwinds receded. Despite improved pricing, NLEM revenues fell 5.5% YoY (-9% in Dec’16) as volumes dropped. While the FDC market remains in pain (-34%), the non-NLEM and non-FDC segments improved. Therapy-wise, antidiabetic drug sa

14/02/2017 5:32:47 PM | Posted in Broking Firm Views - Sector Report read full news
India IT Services - Downgrade cycle bottoming; valuations cheap - RCML

The RCML IT universe saw Q3FY17 revenue growth of 1.3% QoQ (RCMLe 1.1%) and EBIT margins of 21.3% (RCMLe: 21.2%). While Q3 was expected to be slow, our IT universe largely met estimates or outperformed slightly. We think earnings expectations for the sector have moderated and Q3 results indicate a bottoming out of the earnings downgrade cycle. Valuations are cheap and greater comfort on estimat

14/02/2017 4:11:41 PM | Posted in Broking Firm Views - Sector Report read full news
Ports - The January PORTfolio - Emkay Global

* Major Indian ports handled 54.1mn tons of freight in the month of January 2017, clocking a growth of 3.6% YoY, however, was down 5.1% MoM. YoY growth was led by iron ore (+287% YoY), other liquids (+95% YoY) and fertilizer (+20% YoY). Growth was weighed down by a decline in coal (-13% YoY), POL (-4% YoY) and others category (-21% YoY)

* Mormugao (+58% YoY), Paradip (+22% YoY) and Co

14/02/2017 3:08:01 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Pharma has immediate support placed at 10150 levels - GEPL

NIFTY PHARMA   Current Close: 10438.10    Trend : Negative

Observation

* NIFTY PHARMA is one of the perennially underperforming sectoral indices, as it closed down by around 1.11% at 10438.10, as against an up move of 0.60% in benchmark NIFTY 50.

* The Sector had made a recent swing high @ 11215.45 i

13/02/2017 5:03:19 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Media holds strong Bullish momentum - GEPL

NIFTY MEDIA   Current Close: 3010.90   Trend : Positive

Observation

* NIFTY MEDIA is one of the outperforming sectors amongst all the indices last week. It moved up a good 3.54%, as against an up move of 0.60% in benchmark NIFTY 50.

* In the month of Oct. 2016, the Sector created an All Time High at 3158.

13/02/2017 4:58:27 PM | Posted in Broking Firm Views - Sector Report read full news
IT Services - Frenetic legislative activity ignore slight positives in December'16 results - Emkay

* Recent flurry in H1B visa reforms coupled with the leaked draft of the Presidential Executive order has prompted increased investor apprehensions in terms of adverse ramifications that the sector could possibly suffer.

* The broader contours of the bills being tabled include (1) raising minimum wages for H1B visa staff, (2) alterations in the methodology of administering visas, and

9/02/2017 3:24:57 PM | Posted in Broking Firm Views - Sector Report read full news
India Energy - Fundamentals sound – re-rating to continue - RCML

After a stellar outperformance in 2016, gas utilities continue to offer a structurally sound outlook, with key investment drivers playing out as expected: (a) low LNG prices are fuelling a spike in consumption, (b) pollution control measures are buoying CGD growth prospects, and (c) new LNG regasification capacities continue to augment supply. We initiate coverage on MAHGL with HOLD and reitera

9/02/2017 3:06:40 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Deposits continue to decline; credit growth stabilises - RCML

As per RBI data, deposit growth for the fortnight ended 20 January fell to 13.9% YoY from 14.7% the previous fortnight. Deposit growth has started moderating over the last three fortnights after witnessing a spurt post demonetisation. Credit growth on the other hand has stabilised at 5.1%. Investments grew 32.7% YoY while SLR was stable at 31.7%. We expect FY17 credit growth to remain under pre

4/02/2017 4:00:58 PM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector - Monthly round up – January 17 - Emkay Global

* Crude oil prices appreciated:

Brent crude oil averaged $54.6/bbl in Jan. 17 which implies a growth of 2.4% MoM as OPEC members pressed ahead with the planned output cuts. In fact, as per a recent Reuters survey, OPEC has already cut down 1Mbpd or 82% of its pledged output cut in January 2017 itself. Light-Heavy (L-H) differential declined by a magni

4/02/2017 3:53:09 PM | Posted in Broking Firm Views - Sector Report read full news
FMCG Sector - Better affordability to lead to ~3% volume growth in FY18 - ICICI Securities

Excise duty on cigarettes of all lengths saw a hike of 6% in the Union Budget 2017 unveiled yesterday. Key things to observe from the announcement:

a) Excise hike on cigarettes and chewing tobacco is same at 6%.

b) This is the lowest excise hike on cigarettes in the past five years – and lower than the projected nominal GDP growth and closer to the inflation band.

3/02/2017 2:55:14 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector - RJio leads MBB subs pack, but active subs only 84% of total - ICICI Securities

Reason for report: Subscriber data for the month of November 2016

Regulator (TRAI) released monthly subscriber and MNP (mobile number portability) data for Nov’16. Industry-active (VLR) growth was impacted by demonetisation and fell 1.7mn despite 10.4mn net add by RJio while net add for the top-3 operators stood at 0.3mn. Though RJio captured act

3/02/2017 2:35:20 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - Investment positives demolished - RCML

Investment arguments favouring a re-rating of the Indian cement sector look untenable as (a) demonetisation has deferred the touted FY19 capacity utilisation story, (b) the low-cost regime is winding down, (c) new entrants will induce price volatility, and (d) realisation gains post-GST seem uncertain. We are cautious on the sector and anticipate further consensus earnings cuts along with a con

3/02/2017 2:00:35 PM | Posted in Broking Firm Views - Sector Report read full news
Automobiles Sector Update - Passenger Vehicles lead; Commercial Vehicles on the path to recovery - Sharekhan

The Automotive sales for January 2017 were a mixed bag, with the domestic Passenger Vehicles (PV) segment registering a double-digit volume growth. A higher share of sales through the financing route, and new product launches in the recent past led to a 15.5% YoY volume growth in the domestic PV segment. The Two Wheeler (2W) segment’s sales fell by 8% YoY, but the pace of deceleration aba

3/02/2017 1:51:54 PM | Posted in Broking Firm Views - Sector Report read full news
India Telecom - Vodafone Q3 results – Competition remains intense - RCML

Vodafone Plc reported its Q3FY17 results, and key takeaways from an India perspective are: (1) The impact of competition is clearly visible in declining revenue. (2) A drop in ARPU levels (-8% QoQ) is in sync with the industry. (3) The India business has retained high-speed data subscribers amid stiff competition at 35mn (Q2: 36mn). (4) Churn rates are going up, with the postpaid churn rate hig

3/02/2017 1:40:03 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector - Steel prices fell first time in seven months! - Emkay

Key observations

* Hard coking coal 25% MoM which is nothing short of a crash landing. Steel prices continued with the downward trail as well, falling 2% MoM. However, Iron ore prices for 62% and 58% grade held up and posted a decent rise of 6% and 18% MoM respectively.

* Iron ore prices should cool off with supply pressure emanating from

3/02/2017 1:13:15 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector - Speeding up FDA approvals, negative for generics; positive for CRAMS - Emkay

* The US pharma industry has been asked by the new US administration to lower drug prices as well as commit to more production of drugs in the US. In turn the US government has promised to re-look the functioning of the FDA to ensure faster drug approvals.

* We have already seen a shift of generic companies setting up more production facilities in the US as part of risk mitigation str

3/02/2017 11:20:34 AM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Industry credit growth plunges 4.3% YoY - RCML

As per sectoral deployment of credit data released by the RBI, industrial credit declined further to 4.3% in Dec’16 (Nov’16: -3.4%). The medium and small & micro segments continued to bear the brunt of demonetisation with loans to these segments declining over 8%. Retail loan growth moderated further to 13.5% while agri loans grew by 8.2%. We believe the ill effects of demonetis

2/02/2017 4:30:45 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector - Mega merger in offing! Negative for BHIN - Emkay

*  Vodafone and Idea Cellular have confirmed potential merger plan. This would exclude Vodafone's 42% stake in Indus Towers. Merger would entail issuance of new shares in Idea to Vodafone with the former looking for equal rights in the combined entity. The plan on the ownership of Idea’s tower business remains unclear.

*  This merger is a fallout of past spectrum a

2/02/2017 1:09:38 PM | Posted in Broking Firm Views - Sector Report read full news
Paints Sector - Slowdown due to deferment of demand - ICICI Sec

Our recent channel checks across regions indicated that decorative paint demand post demonetisation (w.e.f. 9-Nov’16) was better during November as trade accepted the old currency; however, December seemed to feel the pain due to liquidity challenges. On the other hand, sales in North India were impacted during November as markets were closed for a few days. However, sales in December see

31/01/2017 4:43:11 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank holds strong Bullish momentum - GEPL

NIFTY PSU BANK   Current Close: 3234.15   Trend : Positive

Observation

* NIFTY PSU BANK is the most outperforming sector amongst all the indices last week. It moved up a good 6.38%, as against an up move of 3.50% in benchmark NIFTY 50.

* In the month of Nov. 2016, the Sector created a 52 Week High at 3503

30/01/2017 5:31:21 PM | Posted in Broking Firm Views - Sector Report read full news
Defense & Aerospace – Political Developments: – India Nivesh

India, UAE sign 14 pacts including areas like Defense & Security

India on Jan 25 signed 14 pacts (including areas Defense & Security) with UAE through a Comprehensive Strategic Partnership (CSP). This development comes when the crown prince Mohammed bin Zayed Al Nahyan was invited as Chief Guest for the Republic parade. A MoU (Memorandum of Und

30/01/2017 4:14:22 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Deposit growth declines to 14.7% - RCML

Deposit growth has started moderating after surging post demonetisation. As per RBI data, deposit growth for the fortnight ended 6 January fell to 14.7% YoY from 15.2% the previous fortnight, with bank deposit inflows increasing by Rs 0.7trn during this period. Credit growth remained stable at 5.1% while investments grew 33% YoY. SLR was stable at 31.8%. We expect FY17 credit growth to remain u

23/01/2017 12:33:43 PM | Posted in Broking Firm Views - Sector Report read full news
India Capital Goods - Capex growth a fond memory - RCML

As the industry reels under sub-optimal capacity utilisation, banks struggle to clean up balance sheets, and the demand slowdown becomes more pronounced post demonetisation, we see capex growth hard to come by for India Inc. Our analysis points to a 13%/5% YoY decline in corporate capex for FY18/ FY19, posing downside risks to execution and earnings. In the cap goods space, our top ideas are: S

23/01/2017 12:28:47 PM | Posted in Broking Firm Views - Sector Report read full news