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
Banking Sector Update - Kotak Sec

More questions than answers.

RBI’s study paper on MCLR transmission recommends that banks adopt external benchmarks in a complete and time-bound manner. Key risks/imponderables, in our view, are (1) much greater volatility in NIM for banks, (2) unlike the asset side, market-linkage of deposit rates is much more challenging, and (3) ability of cu

5/10/2017 12:05:12 PM | Posted in Broking Firm Views - Sector Report read full news