Colorful long-term outlook; demand buoyancy to stay - Motilal Oswal

Colorful long-term outlook; demand buoyancy to stay

Growth drivers: distribution, innovation I Challenges: raw material, currency

We hosted a conference call with Mr Krishnaswamy, President, Indian Paints Association (and Managing Director, Akzo Nobel India) to understand the long-term growth opportunity as well as chal

29/Sep/2014 01:21 PM | Posted in Broking Firm Views - Sector Report read full news
September 2014 Update On Information Technology Sector - Prabhudas Lilladher Ltd

The creeping transition of Indian IT companies to Fixed Price Projects (FPP) from Time & Material (T&M) to mitigate the pricing pressure was evident over the last half?a?decade. We have tried to qualitatively assess the pros & cons of these two billing models. Our assessment indicated the maturity of commoditized business which has resulted in migration towards FPP, whereas T&

27/Sep/2014 03:38 PM | Posted in Broking Firm Views - Sector Report read full news
September 2014 Update On Media & Entertainment - IDFC SecuritiesLtd

Event

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) today observed that content cost for MSOs cannot be discriminatory.

 

Details

Hathway had contested, in a plea to TDSAT, that MediaPro has been charging it a higher content fee than it has been charging Den.

27/Sep/2014 03:36 PM | Posted in Broking Firm Views - Sector Report read full news
September 2014 Update On Metals & Mining Sector - Prabhudas Lilladher Ltd

Taking a hard stand on the coal block allotments, the Supreme Court (SC) cancelled all the coal blocks except four coal blocks. These four blocks include block of NTPC and SAIL and two blocks allocated to UMPPs. Allocatees of the cancelled operational coal blocks would be allowed to operate the blocks for next six months i.e. till 31st March?2015 to adjust and manage their affairs. Post that

25/Sep/2014 12:34 PM | Posted in Broking Firm Views - Sector Report read full news
September 2014 Update On Metals Sector - Motilal Oswal

* Indian steel prices are coming under pressure from weakening import prices. India HRC import prices have corrected to USD520/t, after holding in a range of USD535-545/t for the past five to six months. We expect a similar correction to flow through in Indian flat product prices.

* Indian long product market never worried about imports. This does not hold true anymore. Imports fr

19/Sep/2014 03:59 PM | Posted in Broking Firm Views - Sector Report read full news
Foreign Trade (August 2014) - Domestic demand improves - IDFC SecuritiesLtd

India’s trade deficit has declined to USD10.8bn (down USD1.4bn mom) in Aug 2014 due to a sharp 15% yoy reduction in oil imports. Export growth, too, has decelerated to 2.3%, compared with 7.4% increase seen during Apr-Aug FY15. While import growth in Aug 2014 was muted at 2.1%, non-oil-non-gold imports increased by 7.7%. This indicates a robust increase in domestic demand. Gold imports

18/Sep/2014 06:18 PM | Posted in Broking Firm Views - Sector Report read full news
Auto Update - continue our preference for Hero MotoCorp over Bajaj - Prabhudas Lilladher Ltd

* Scooter segment accounted for 27.4% of the two?wheeler market for Aug ’14:

Led by new launches from Honda (New Activa), Hero (Maestro), and TVS (Jupiter), the scooter segment grew at a faster clip of 30.4% YoY for Aug’14 period. The motorcycle segment, too, witnessed a faster pace of growth, growing at 14.4% vs 6.2% l

17/Sep/2014 10:56 AM | Posted in Broking Firm Views - Sector Report read full news
September 2014 Update On Tyre Sector - Angel Broking Pvt Ltd

Automotive volume recovery coupled with increased CV radialisation to lead to double-digit growth for tyre industry

The tyre industry is poised to grow in double digits over the next two years. Recovery in the OEM segment (contributing about 30% of the demand) due to positive consumer sentiment, and better replacement sales due to improved economi

17/Sep/2014 10:56 AM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update - Uptrend in IPM growth continues with 8.4% growth in August 2014 - Prabhudas Lilladher Ltd

Contribution of higher price growth, acute therapy growth, lower growth in chronic drugs are highlights of IPM sales in August 2014

The Indian Pharma market (IPM) achieved 8.4% growth in August 2014 on the back of higher contribution of price growth. With implementation of new NLEM prices in August 2013, the benefits of higher price growth (YoY) w

12/Sep/2014 05:59 PM | Posted in Broking Firm Views - Sector Report read full news
AGIC 2014 Delhi Drive: ShShShSh! Bureaucracy at work - MotilalOswal

AGIC 2014 Delhi Drive: ShShShSh! Bureaucracy at work

Shape of things to come in the next 2-3 years

We rounded up AGIC 2014 Conference with a tour of Delhi to gauge the mood of policy makers, including politicians and senior bureaucrats. We indeed returned convinced that the new Government has already mad

11/Sep/2014 06:14 PM | Posted in Broking Firm Views - Sector Report read full news
September 2014 Update On Cement Sector - Motilal Oswal

TTM cement production growth bounces up 6.1% Monsoon woes led to prices plunge in August

* IIP data reported encouraging 16.5% YoY growth in cement production in July 2014 (the highest-ever since November 2011).

* YTDFY15 production growth stood at 11.2% YoY and TTM growth bounced up to 6.1% versus a low of 3.3% in March 2014.

08/Sep/2014 02:12 PM | Posted in Broking Firm Views - Sector Report read full news
September 2014 Update On Automobile Sector - Angel Broking Pvt Ltd

Strong momentum continues in passenger space; CVs subdued: The passenger vehicle (PV) segment and two wheelers (2Ws) maintained their strong growth momentum, reporting a double digit volume growth during August 2014. An improvement in the economic scenario and positive consumer sentiments post elections boosted volumes during the month. Commercial vehicles (C

05/Sep/2014 11:48 AM | Posted in Broking Firm Views - Sector Report read full news
September 2014 Update On Automobile Sector - Sharekhan

In August 2014 the domestic automobile companies shifted to a higher gear buoyed by an improvement in consumer sentiment and with an eye on the upcoming festive season. With the festive season falling about a month earlier this year as compared with the last year, dealers have started stocking inventory early. Hence, the growth rates have to be adjusted for the impact of the same. August saw

05/Sep/2014 11:46 AM | Posted in Broking Firm Views - Sector Report read full news
Auto Sector - Positive on Tata Motors and Hero MotoCorp - Kotak Securities Ltd

Continued strong growth dispatches by automakers to the dealers reflect their optimism towards recovery in demand. OEM are anticipating strong demand in the upcoming festive season and have accordingly started stocking up inventories at the dealers end. In August 2014, Maruti Suzuki, TVS Motors and Hero MotoCorp reported strong increase in volumes. Passenger car and MHCV demand sentiments se

02/Sep/2014 05:21 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile Sector - Top picks: MSIL, TTMT among large-caps; TVSL and AL in mid-caps - Motilal Oswal

We interacted with the industry participants to get an update on expected sales trend for the month of Aug-14 for our auto coverage universe.

Key highlights:

* Post general elections, sentiments have improved driving higher inquiries and step-up in conversions, particularly in PVs and MHCVs. Concerns on monsoon have also receded with na

02/Sep/2014 05:47 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector Update - DAS timeline extended again, ZEEL is our preferred pick - Sharekhan

Key points 

* Operational and execution constraints have led to the inevitable extension of the DAS timeline. The information and broadcasting ministry has announced that the government has decided to extend the deadline for digitisation by one year where Phase 3 deadline has been extended to December 2015 (from September 2014 earlier) and phase 4 deadlin

27/Aug/2014 12:38 PM | Posted in Broking Firm Views - Sector Report read full news
August 2014 Update On Metals & Mining Sector - Prabhudas Lilladher Ltd

Today, the honourable Supreme Court of India in its hearing termed all the coal blocks allocations made based on the recommendations of Screening Committee as illegal and arbitrary. The court found that the guidelines followed by the screening committee have been inconsistent, unclear and most importantly, have not served the public interest at large. However, the Court would hear the conseq

26/Aug/2014 11:19 AM | Posted in Broking Firm Views - Sector Report read full news
August 2014 Update On Pharma Sector - - Prabhudas Lilladher Ltd.

Higher NLEM volume, lower price reduction help IPM growth

The Indian Pharma market (IPM) achieved 7.2% growth in July 2014 and 7.7% growth in H1 CY14. While the Pharma market achieved double?digit growth in June 2014, IPM’s return to single digit growth was due to the impact of NPPA’s new guidance on pricing premium of non?NLEM drugs. NPPA issu

26/Aug/2014 10:39 AM | Posted in Broking Firm Views - Sector Report read full news
August 2014 Update On Cement Sector - Prabhudas Lilladher Ltd

Indian cement prices softened by Rs15?20/bag MoM in August due to a lean monsoon period. However, on YoY basis, prices are up ~5%, given the weak base last year and tight production discipline in the Southern and Western regions. Our channel checks suggest that off?take has been weak so far in August on account of monsoon and high base in the last month. However, they expect strong pick?up i

26/Aug/2014 10:38 AM | Posted in Broking Firm Views - Sector Report read full news
Construction Sector Review Post Q1FY15 - Kotak Securities Ltd

Construction sector has witnessed a sharp re-rating post the election outcome during Q1FY15 on expectations of improvement in overall macroeconomic environment and order inflows. Companies have started witnessing improvement in order inflows in select segments like buildings, urban infra and roads but improvement is yet to be seen in power, industrial, railways, irrigation and mining. Though

22/Aug/2014 05:30 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 earnings review Sector Update - Sharekhan

High double-digit earnings growth with important encouraging signs

The aggregate earnings growth of 17.5% in the Sensex companies seen in Q1FY2015 was largely contributed by the usual export-driven sectors like information technology (IT) services and pharmaceuticals (pharma) in addition to private sector banks and a few select companies like Tata Motors a

21/Aug/2014 12:21 PM | Posted in Broking Firm Views - Sector Report read full news
Update On Media & Entertainment Sector - IDFC Securities Ltd

Indian Media & Entertainment (IME) is a mixed bag. Digitization has failed on the ‘monetization’ promise as revenue-share impasse between LCOs and MSOs is keeping collections low at Rs65/ STB (though traction seen in new DTH subs). Also, broadcasters are seeking ARPU share, which will further dent MSO profitability. Meanwhile, viewership fragmentation is forcing broadcasters

20/Aug/2014 02:33 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 Capital goods Sector & engineering Sector earnings review - Sharekhan

Key points 

* The top line performance of the capital goods and engineering companies under our coverage was a mixed bag in Q1FY2015. While KPTL, V-Guard, Crompton Greaves and Bajaj Electricals reported a revenue growth in the range of 10-20% YoY, the power equipment manufacturers like BHEL and Thermax continued to witness a declining trend in revenues Yo

20/Aug/2014 12:29 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 Auto Sector earnings review - Sharekhan

Key points 

* The automobile sector reported an improved performance in Q1FY2015 with a volume growth across segments except CVs. In the CV segment too, the rate of decline reduced and a drop in the discount levels enabled the OEMs to report an improved performance. Our auto universe ex TAMO reported a 9.8% increase in revenues and a healthy 14.1% growth

20/Aug/2014 12:07 PM | Posted in Broking Firm Views - Sector Report read full news
Q1FY2015 FMCG earnings review - Sharekhan

Key points 

* The volume growth of the FMCG companies remained muted in Q1FY2015 as well, though the pressure on the sales volume is showing signs of easing out. The relatively smaller companies (like Bajaj Corp) reported a low singledigit decline in volumes in Q1FY2015 (compared with a double-digit dip in the previous quarter). On the other hand, FMCG co

19/Aug/2014 10:03 AM | Posted in Broking Firm Views - Sector Report read full news