BUSINESS
Fed reaches lower range of neutral rate; global growth, event risks need to be watched
The markets expected a far more dovish tone and is now concerned about global growth slowdown
BUSINESS
HUL gets a taste of Horlicks: Big leap in food segment; innovations and synergy holds promise
Overall we find this deal transaction earnings accretive and believe that synergy benefits are worth watching out for.
BUSINESS
G20 meet: A sentiment boost to global risk appetite; long road ahead
If the sudden decline in oil prices and the apparent change in the Federal Reserve’s stance was not enough, the takeaways from the recently concluded G20 meet is boosting risk appetite. Among its key highlights, US agreed not to escalate tariffs from 10 percent to 25 percent on imports of $200 billion Chinese goods for a 90 day period and utilise the time window for trade talks. China, US President Donald Trump said, has agreed to reduce tariffs on US cars exported to the country and substantially increase US imports.
BUSINESS
Galaxy Surfactants Q2FY19 review: Improved domestic growth outlook offset by weak international show
Company’s capacity utilisation level is near optimum level of 78 percent currently. In in light of the fact that it takes 2-3 years for new capacity to commission, company is primed for new capex plan to cater to steady demand from the FMCG sector.
BUSINESS
Fed’s neutral rate stance can have a positive rub off on Indian equities
A moderate rate path by Fed could ease off pressure on EM currencies and have a positive implications for EM in terms of fund flows, commodity imports and inflation.
BUSINESS
Q2 FY19 review: Add these 2 aromatic chemical companies to your portfolio
Benzene-based specialty chemical companies continue to deliver strong operating results aided by tactical factors like disruption in China production and structural improvement in cost competitiveness and technical prowess
BUSINESS
Rain Ind: Adverse impact on Q3 CY18 sales volume already in price; accumulate
We expect growth in CY19 to be led by volume improvement in carbon segment and pricing gains in the advance material segment
BUSINESS
Balaji Amines Q2FY19 review: Volume growth hit by transitory issues; accumulate
In our assessment, growth levers for Balaji Amines are intact and we remain positive on the stock, primarily because of its strategy of capitalising on import substitution opportunities
BUSINESS
Sadhana Nitro: A niche player in the nitrobenzene value chain; diversification is key
As far SNCL is concerned, its diversification into various end-market applications holds promise and helps it to move beyond the commodity play
BUSINESS
Britannia Q2 review: Portfolio expansion, distribution reach to aid earnings, Accumulate
The management outlook on operating margin remains positive. It is also aiming at a price increase of about three percent in Q4. Bulk of its cost saving target (Rs 250 crore) is expected to unfold in the second-half
BUSINESS
Buy HEG on dips; higher FY19 capacity utilisation guidance a positive
The management said Chinese government’s anti-pollution campaign is stricter in the current year
BUSINESS
Dabur Q2 FY19: Moderation in rural growth expectations; accumulate on staggered basis
Dabur posted consolidated sales growth of 8.5% YoY mainly aided by 8.1% volume growth (vs. 7.2% in the base quarter) in the domestic business (69% of sales)
BUSINESS
Emami Q2FY19 review: Business in transition; accumulate on dips
Management is hopeful of clocking double digit sales growth in FY19 on the back of recent strategy changes and improving demand. However, double digit volume growth (earlier guidance) scenario in this fiscal looks less likely.
BUSINESS
ITC Q2FY19 review: Broadening of growth levers; regulatory risks remain
Recently, a few of ITC’s businesses have witnessed encouraging growth traction –volume growth in FMCG business, growth outlook in hotel business and paper business and stabilization in cigarette business.
BUSINESS
Zydus Wellness’ Kraft Heinz bet healthy, but requires heavy lifting
The M&A transaction can be EPS accretive provided there is higher private equity or third party participation.
BUSINESS
Bodal Chemicals benefits from favourable demand-supply dynamics
We remain positive on the traction towards vertical integration and capacity expansion.
BUSINESS
Bajaj Corp Q2 review: Business in transition; wholesale channel weakness key worry
Key thing to watch for the company is volume offtakes from rural areas and consumer response post-relaunch of ADHO.
BUSINESS
China growth slowdown gets worrisome as trade tiff broadens
Consistent positive macro data from the US and Federal Reserve’s hawkish stance has been instrumental in reversal of portfolio flows from China and other emerging markets to the US
BUSINESS
Bhansali Engineering Q2 review: Weaker rupee & input cost weigh; accumulate on dips
The company is already witnessing improved market share. Its planned mega capacity expansion (200,000 tpa in FY21) is expected to bridge the domestic demand and supply gap
BUSINESS
Risk reward turns favourable in these 3 FMCG stocks; should you buy?
Market beta (sensitivity to broader index) of various FMCG stocks are well below one, which means they decline or rise less in times of market wide correction or upsurge phases, respectively
BUSINESS
US earnings review: Performance so far outshines global macro worries
So far, more than 10 percent of S&P 500 companies mostly from the financials, technology, consumption and industrial sectors have reported earnings.
BUSINESS
SC petcoke verdict removes major hurdle, but uncertainty on capex remains
The court verdict removes a major hurdle for the petcoke value chain catering to the aluminium industry
BUSINESS
US political uncertainty can potentially thaw in fund outflows from emerging markets
Upcoming US midterm election could potentially halt the rally in USD and reverse the flows from US markets to relatively better-placed EMs like India
BUSINESS
Why are global bond yields rising and what it means for emerging markets such as India?
Since the investors seek higher risk premium for the earnings visibility in this scenario, management outlook and operational execution gains prime importance.
