Telecom Sector - RJio channel check – Pushing the pedal harder - Motilal Oswal

We conducted a channel check with RJio’s center heads and ex-senior management (including marketing and strategy heads). We discussed current on ground situation, nearterm execution strategy, strategic vision and market positioning over a 2-4 year horizon. From this, we understand that RJio has extended its distribution channel from just own retail stores previously to modern outlets and

18/11/2016 2:32:36 PM | Posted in Broking Firm Views - Sector Report read full news
India Pharmaceuticals - Q2 Review: Some hits, some misses - RCML

Our pharma universe posted Q2FY17 revenue growth of 11.3% YoY, broadly in line with estimates. EBITDA margins were 120bps higher than expected at 25.7% driven by lower R&D spends (vs. guidance) and a better geographical mix (resilient US + healthy domestic sales). We continue to prefer mid-caps (ARBP, CDH, GNP), though we also upgraded SUNP to BUY after the recent correction given a positiv

18/11/2016 2:25:09 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - Regulatory forbearance ahead; structural story intact - RCML

* 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.

 

*

18/11/2016 2:22:34 PM | Posted in Broking Firm Views - Sector Report read full news
India Consumer - Froth starting to come off - RCML

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

17/11/2016 3:13:22 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials - HFCs more sensitive to property prices than interest rates - RCML

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

17/11/2016 3:10:02 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty Realty has immediate support placed at 155 levels - GEPL

NIFTY REALTY     Current Close: 168.35    Trend : Negative

Observation

* 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

16/11/2016 3:19:38 PM | Posted in Broking Firm Views - Sector Report read full news
Nifty PSU Bank holds Bullish momentum - GEPL

NIFTY PSU BANK    Current Close: 3320.25    Trend : Positive

Observation

* 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

16/11/2016 3:12:43 PM | Posted in Broking Firm Views - Sector Report read full news
India PharmaScope - Volumes still under pressure - RCML

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

15/11/2016 3:43:38 PM | Posted in Broking Firm Views - Sector Report read full news
Automobile Sector - Monthly Update - Healthy Festive Season - Reliance sec

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

15/11/2016 2:56:46 PM | Posted in Broking Firm Views - Sector Report read full news
India Consumer Sector - A BRAND new world - RCML

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

15/11/2016 2:51:00 PM | Posted in Broking Firm Views - Sector Report read full news
India Financials: Credit Tracker - Credit growth improves to 9.1% - RCML

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

14/11/2016 12:22:38 PM | Posted in Broking Firm Views - Sector Report read full news
T&D Equipment - PGCIL H1FY17 ordering: Strong show continues - ICICI Sec

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&

14/11/2016 12:10:30 PM | Posted in Broking Firm Views - Sector Report read full news
Pharmaceuticals - Overhang of US elections removed - Kotak Sec

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

14/11/2016 12:00:45 PM | Posted in Broking Firm Views - Sector Report read full news
Roads and Highways - Sector on a long-term growth trajectory - ICICI Sec

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

14/11/2016 11:43:34 AM | Posted in Broking Firm Views - Sector Report read full news
Metals Sector - Tactical beneficiaries of improving global growth? - ICICI Sec

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

14/11/2016 11:37:35 AM | Posted in Broking Firm Views - Sector Report read full news
Currency De-monetization ... A Game Changer! - Reliance Sec

De-monetization of Rs500 & Rs1,000 notes may prove to be a game changer for Indian banking sector. Currently, currency in circulation is ~12.5% of GDP, which is one of the highest amongst comparable economies. There are Rs16.4 trillion notes in circulation out of which 86.4% are in Rs500 & Rs1,000 denominations. Notably, major chunk of these notes are currently out of the ambit of banki

12/11/2016 2:31:15 PM | Posted in Broking Firm Views - Sector Report read full news
Ports - The October PORTfolio - Emkay Global

Key highlights

* Indian Major Ports handled 54.6 mn tons in the month of October 2016, clocking a growth of 13.2% YoY and 7.7% MoM, led by POL (+24.4% YoY), iron ore (+45.5% YoY) and others category (+65.1% YoY) offset by decline in coal (-11.8% YoY)

* New Mangalore (+43% YoY), Mormugao (+58.4% YoY), Paradip (+17.6% YoY), Kandla (+31% YoY), C

10/11/2016 3:56:51 PM | Posted in Broking Firm Views - Sector Report read full news
PSU sees Strong Buying Amidst Correction - Dynamic Levels

Shares of PSU banks have recovered by up to 24 per cent from their intra-day’s low on the bourses after the trade at this eventful day came to an end and have witnessed strong buying among the correction.

State Bank of India’s (SBI) two associate banks of State Bank of Travancore and State Bank of Mysore share price have recovered more than 27 per cent each from their resp

9/11/2016 4:48:20 PM | Posted in Broking Firm Views - Sector Report read full news
Retail Sector - Festive season demand belies hopes of consumption recovery - Motilal Oswal

Healthy for Jewelry and Electronics, tepid for QSR and Apparel

Our on-the-ground surveys of retail outlets in West India towards the close of the festive season belie hopes of a recovery in consumption. For apparel stores and QSR outlets, demand during the festive season (Navratri followed by Diwali) was fairly tepid. A depressed base and lower prices

8/11/2016 2:34:47 PM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector - Added hindrance for upstream companies - Emkay Global

* The CBEC in a recent circular on service tax liability on use of wireless spectrum stated that all periodic payments such as royalty on use of natural resources will attract 15% service tax.

* As per the circular, service tax will be applicable with retrospective effect from FY16. Upstream companies have decided to contest the levy and have already taken the matter to Oil Ministry a

8/11/2016 2:16:52 PM | Posted in Broking Firm Views - Sector Report read full news
Cement Sector - - Dealers check: Demand Remained Subdued; Recovery in Sight - Reliance sec

All India average cement prices broadly remained flat month-on-month (m-o-m) in Oct’16 despite continued price uptick in Western region (+3% m-o-m). Though demand scenario improved in selected pockets after seasonal overhang, persistent sand crisis in pockets of Northern UP & Bihar along with back-to-back festivities during the month took a toll on demand in several parts of the count

5/11/2016 5:23:48 PM | Posted in Broking Firm Views - Sector Report read full news
Metallica - Metal Prices on the move!! - Emkay

Key observations

* Global steel prices continued to improve during the past month supported by improvement in sentiments. Overall, the WSA projects an improvement in steel demand, although it’s currently tepid.

* Hard coking coal prices rose further by 21% to US$258.5/tn. CIS (FoB Black Sea) HRC prices rose 9% MoM to US$425/tn. Chinese

5/11/2016 5:06:46 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Dips over Possible US Probe Into Price Cartelization - Dynamic Levels

Shares of the pharmaceutical companies on Friday (4th November 2016) fell, with Sun Pharma share price hitting over 28 month low after the news report concluded that the US has begin probe on the possible price cartelization.

Shares of Sun Pharmaceuticals Industries Ltd fell 7.1 per cent, its steepest fall since 21st December 2015 and hit a low of Rs 654.70 per share—a level las

5/11/2016 4:42:38 PM | Posted in Broking Firm Views - Sector Report read full news
Agri Input & Chemicals - Agri Digest – Q2FY17 results so far have been encouraging - Emkay

* Results declared so far by the fertiliser companies under our coverage have reported better than estimated volume growth which has compensated for weak realizations. Companies have also benefited from fall in RM costs

* Agrochemical companies have reported mixed results with UPL posting strong volume growth of 23% yoy led by healthy revenue growth in India and Latin America while Ba

3/11/2016 3:47:59 PM | Posted in Broking Firm Views - Sector Report read full news
Oil & Gas Sector - Monthly round up – November16 - Emkay Global

* Rise in crude oil price: Brent Crude oil was up by 7.2% MoM, mainly driven by speculation that OPEC countries would freeze output as had been tentatively considered in the meeting in September. Light-Heavy (L-H) differential is up by $0.2/bbl MoM to $2.6/bbl.

* Refining margins and product spreads: Calculated benchmark S’pore GRM has shown a downtrend MoM from $6.7/bbl to $6.0

3/11/2016 3:00:06 PM | Posted in Broking Firm Views - Sector Report read full news