BUSINESS
Marico Q3: Volume uptick but margin pressure remains a concern
While there has been a good mix of volume and value, overall result is below our expectations. Higher raw material prices have prompted company for consecutive prices hikes in Parachute hair oil. Though so far company has been not seen any negative impact on the market share, it need to be seen it’s sustenance in coming quarters.
BUSINESS
Apcotex Industries Q3: Stellar result aids in market share gain in nitrile rubber
Company has a major capacity expansion plan ( ~Rs 150-200 crore) where in details are tentative but can expand Synthetic latex capacity to 75-80,000 MT (from 55,000 MT) and Nitrile rubber capacity can go up to 30,000 MT.
BUSINESS
HEG & Graphite India Q3: Tight supply demand balance remains a support
HEG’s quarterly result was well ahead of expectations. Sales more than doubled on sequential basis and exhibited the benefit of change in pricing trend and progress in contract renewals for the graphite electrodes
BUSINESS
Q3 review: JHS benefits from capacity ramp up, Dabur sees well-diversified performance
We are encouraged with demand pick up in rural market. Sales growth through Dabur's Super stockist channel, which is largely rural, was 26% YoY and augurs well for a company having sales contribution of about 45-50% from rural areas.
BUSINESS
Himadri Specialty Chemicals: Pricing tailwinds, new capacity enhancements to aid growth
Instead of 30,000 MT capacity expansion earlier announced, it is now looking for 60,000 MT additional capacity for carbon black.
BUSINESS
Budget 2018: Focus on rural income and productivity; positive for FMCG sector
Boost in rural sector should aid the fragile rural recovery and spur consumer demand.
BUSINESS
Godrej Consumer & Emami Q3: Rural prospects expected to lead recovery
While Emami’s result was below expectations, the results of both Emami and Godrej Consumer nonetheless point to a sector-wide recovery in terms of volume growth.
BUSINESS
Q3 Earnings picks: Commodity, food processing and IT stocks resonate
GNFC reported excellent traction in its earnings (PAT: 241% YoY) aided by 40 percent topline growth, EBITDA margin expansion (+906 bps) and lower interest expense. This was mainly led by Chemicals division
BUSINESS
Asian Paints: Moderate pick up in volume growth keeps us wary
Nerolac posted ~20 percent volume growth in Q2 and ~15 percent in Q3 FY18 in the decorative segment, while Asian Paints has been struggling with 6-8 percent growth in the segment for last two quarters.
BUSINESS
Thirumalai Chemicals Q3 review: Upgrading earnings outlook after strong show; valuations attractive
At the consolidated level, company reported even better numbers aided by performance of Malaysian subsidiary. Net sales were up 39 percent YoY and EBITDA almost doubled in last one year
BUSINESS
HUL Q3 performance — Pick up in rural growth & naturals business a positive
HUL with its high rural exposure (40% of sales) and well entrenched distribution network, is among the key beneficiaries of further uptick in consumption and related policy announcements, in our view.
BUSINESS
Bhansali Engineering: Near term earnings growth priced in
In the near term, company is on course to increase capacity to 137,000 MT (from 80, 000 MT) involving capex of Rs 50 crore.
BUSINESS
Sintex Plastics: Business under transition; balance sheet repair the key focus area
While company’s strategic move to focus on balance sheet repair is a key positive, near term earnings visibility is moderate.
BUSINESS
Thirumalai Chemicals: Exposure to varied markets, capacity expansion & diversification key triggers
Company’s strong presence in duopoly market (Phthalic anhydride), diversification to value added products, capacity expansion plans and a healthy balance sheet makes it an interesting business to look at.
BUSINESS
Alufluoride gains from the improving prospects for end market aluminum
Alufluoride, which like its industry peers was struggling with weak pricing environment for the last few years, has witnessed a good traction in its earnings. Its healthy balance sheet, along with a niche production process positively positions it for an investment assessment.
BUSINESS
US tax code: Windfall fiscal incentive to aid US companies’ competitiveness
While re-rating of US equities in last one year partially reflects the execution of corporate reforms, significant improvement in US domestic companies' competitiveness, on account of fiscal incentive, is arguably underway.
BUSINESS
For food color cos, the next trigger will be adding capacity, after a robust earning season
Industry has an oligopolistic structure wherein a few companies are up the scale in technical knowhow and quality control which help in offering a palette of colour solutions vetted by necessary regulatory requirements in different geographies and client approvals.
BUSINESS
Aliphatic amines makers: Margin upside limited, earnings growth to come from volumes
While companies enjoy duopoly kind of dominance in the Indian market, competition from MNC suppliers and Chinese imports keeps a cap on margin expansion for a few of their products
BUSINESS
Rain Inds: Good results confirm strong tailwinds for carbon products in metal industry
Current pricing realization can sustain in medium term on account of structural supply curtailments. This also provides positive takeaways for Himadri Speciality Chemicals.
BUSINESS
Stable crude prices could boost sovereign fund flows from Middle East into India
The possibility of a big jump in crude prices hereon appears slim as at this price many shale gas producers could up their output. Further, correlation studies don’t show high crude prices hurting stock market returns.
BUSINESS
Elantas Beck Q3: Uninspiring quarter, but long-term drivers intact
Though the company remains a dominant provider of electrical insulation solutions in the country, it is adversely impacted by imports. Improved operational efficiency is commendable and, therefore, in the context of surging raw material prices this a key factor to watch for.
BUSINESS
Xi Jinping’s marathon speech suggests more balanced growth in China, has positives for global economy too
Xi reiterated goal for achieving “moderately prosperous society” by 2020 along with an emphasis on structural reforms for almost every facet of the socio-economic set up. The implication here is for the “soft landing” of the Chinese economy along with reforms on both domestic and international fronts.
BUSINESS
Bhansali Engineering gains from an improved pricing environment
The company reported another stellar quarterly results after it gained from elevated capacity utilization, improved product pricing and better operating performance.
BUSINESS
Bajaj Corp’s Q2 result: GST transition gets longer
Unlike the much talked-about ‘V’-shaped restocking and a scenario of supply chain normalization by Q3, the industry appears to be grappling with a slightly longer transition.
