On an average, there was a 4% increase in the sales turnover of the 14 mid and small size construction companies that have reported results so far.
PGCIL is facing challenges because of the new rules which call for competitive bidding. Earlier, the government used to hand projects on a platter to PGCIL. The change in rules is hurting PGCIL.
We believe that the market will continue to support the emerging trends: strong growth in commercial vehicles (CV) on the back of a good monsoon and increased production of BS-IV compliant vehicles.
A quarter point rate hike, if it happens in December, would raise the target Fed funds rate range to 1.25-1.50. This incidentally would also be a two-year anniversary of the rate hike cycle that commenced in December 2015.
While Q1 2018 was impacted by severe destocking in the trade channel due to GST, Q2 2018 witnessed a sharp recovery partly led by restocking and festive season demand recovery. Average volume growth in Q2 2018 has been 6.2 percent YoY (vs. -6.3 percent in Q1 2018) led by Emami, Godrej consumers, Marico and Dabur.
GST triggered disruptions in a number of sectors, especially the consumer-facing ones. However, it was surprising to see some electrical component and wire/cable manufacturers posting a rather robust set of numbers in the recently concluded quarter.
Over the past year we have seen companies demerging their business divisions, and a few more are queueing up to do so. This urge to demerge is driven by the fact that the companies feel their stocks are mispriced despite a broad market rally.
The road sector continues to remain a promising theme within construction for the long-term. This is particularly so in the light of government's renewed focus on roads and consolidation in the sector that will allow serious players to reap dividends.
While the contours of the recap plan are being worked out, the Street is in a mood to party, lifting all PSU bank stocks irrespective of quality.
News reports suggest projects of about 4500 MW could be awarded over the next four months, which is quite significant given market estimates of mere 1500 MW addition this year.
Power transmission is a regulated business, where transmission assets are built at competitive tariffs. Once the assets are in place, generation companies can use these assets for transmitting power to different markets, regions.
The deal, if it goes through, would not only reduce the significant amount of debt but it will also release a significant amount of equity.
Intensifying competition and increased entry of international players is expected to pose serious competition to state-run companies. International players have heavy investment plans and are looking for aggressive expansion.
It is unlikely that the government would want to tinker with the GST structure and introduce any slab higher than 28 percent. But if it decides to bring it under GST, it will be at a huge cost.
The 22nd GST Council meet addressed concerns of jewellery companies by easing KYC norms. There was some relief for synthetic yarn makers, too, as issues in connection with delayed clearances/ambiguity in export-related tax refunds and an inverted tax structure were considered.
Apart from the awareness, what is causing the damage is a perception about the certainty of yield. While the yields are calculated more scientifically and independently they suffer from the estimates and assumptions made for the next 15-20 years.
What’s the way forward – struggle and put up with the pain or get merged with a “big boy” as one of their peers is contemplating?
Has the wind power industry reached a tipping point? With wind power cost touching a new low of Rs 2.64 per unit, it does seem so.
The relief to the consumers comes at the expense of government finances that are already struggling
While Garware-Wall Ropes appears to be well-positioned to innovate its product offerings, Sarla Performance Fibers is yet to make a mark given its growth potential. Nonetheless, both stocks appear to be reasonably valued for now.
The numbers continue to support previous month’s trends: strong growth in commercial vehicles (CV) on the back of a good monsoon and increased production of BS-IV compliant vehicles.
The current proposal seeks permission to sell a majority stake in oil fields to private players. The move, if it goes through, holds a big opportunity for private companies.
Prices of titanium di oxide (TiO2), the key raw material for paints, is firming up again on account of capacity shutdowns in China. Along with this, oil prices have added to the margin pressure for paint companies.
The first advance estimates for the Kharif crop, released by the Ministry of Agriculture, anticipates a year-on-year drop in the output of almost all the major crops.
Amazon is banking on multiple levers to expand its reach. Hence, retail as well as FMCG players will see much more action in the coming days as the offline-online partnership gathers momentum.