Moneycontrol PRO

Anubhav Sahu

Principal Analyst

Moneycontrol Research

Buy graphite electrode stocks for the long haul

BUSINESS

Buy graphite electrode stocks for the long haul

Britannia Q3FY19 review: Recent moderation needs to be watched; accumulate on declines

BUSINESS

Britannia Q3FY19 review: Recent moderation needs to be watched; accumulate on declines

The stock is currently trading at an elevated multiple of 54x FY20 estimated earnings compared to its own history and FMCG universe.

Balaji Amines Q3FY19 review: Input price volatility hits volumes; accumulate on staggered basis

BUSINESS

Balaji Amines Q3FY19 review: Input price volatility hits volumes; accumulate on staggered basis

On a longer term we remain positive on company’s strategy with respect to new product capacities (Greenfield project: revenue potential of Rs 450 crore in FY23), import substitution strategy along with strong technical execution capabilities. Further we take solace from the fact that demand in end markets in which company operate are stable.

NOCIL Q3 review: Weak end market weighs on volume but margins to remain stable

BUSINESS

NOCIL Q3 review: Weak end market weighs on volume but margins to remain stable

Central banks create space for growth; event risks keeps market on tenterhooks

BUSINESS

Central banks create space for growth; event risks keeps market on tenterhooks

Series of stance changes from the global central banks and RBI, along with sudued commentary on inflation creates a timely monetary policy space for growth. We expect financial market conditions would also ease out as the event risks gets mitigated. However as we go closer to deadlines 1st March (Trade truce) and (29th March) Brexit and end game plays out – volatility will remain elevated.

Dabur: Enhanced growth prospects, accumulate

BUSINESS

Dabur: Enhanced growth prospects, accumulate

The stock had corrected significantly (down 25 percent from 52-week high) after the management’s Q2 commentary on rural outlook.

First Cut | Britannia Q3 FY19: Steady execution but recent demand slump a concern

BUSINESS

First Cut | Britannia Q3 FY19: Steady execution but recent demand slump a concern

Q3 results indicate Britannia is reaping benefits of beefing up distribution, addressing gaps in product portfolio and implementing cost efficiency programmes.

Himadri Speciality Q3 review: Volumes may pick up gradually; accumulate in a staggered manner

BUSINESS

Himadri Speciality Q3 review: Volumes may pick up gradually; accumulate in a staggered manner

Tata Global Q3 review: Price hike in select brands and improving global biz are key positives

BUSINESS

Tata Global Q3 review: Price hike in select brands and improving global biz are key positives

Key challenges for the company remains in terms competitive intensity in the mass market. Having said that price hike taken by the company for three key domestic tea brands provides some solace.

Marico Q3 review: Gross margin gains to be deployed for growth of new categories; buy on dips

BUSINESS

Marico Q3 review: Gross margin gains to be deployed for growth of new categories; buy on dips

For FY20, Marico has guided at 10 percent volume growth for its India business and over 18 percent EBITDA margin. In constant currency terms, the international business should continue its double-digits growth

First cut | Tata Global Beverages Q3: Pricing pressure, lower contribution from associates hurt earnings

MONEYCONTROL-RESEARCH

First cut | Tata Global Beverages Q3: Pricing pressure, lower contribution from associates hurt earnings

The consolidated net profit for Q3 was lower mainly due to a deferred tax credit of Rs 53 crore recognised in Q3 FY18.

Alufluoride: A small cap with a unique proposition

BUSINESS

Alufluoride: A small cap with a unique proposition

the current valuation keeps us positive as the stock is trading at 3.6 times estimated earnings for FY21 (EV/EBITDA of 3.2 x for FY21), which is at a discount to the non-ferrous sector

Rain Industries: Adverse SC action has material impact on business model; stay cautious

BUSINESS

Rain Industries: Adverse SC action has material impact on business model; stay cautious

We have turned cautious on the stock and wait for management commentary and future action.

Budget 2019 impact on FMCG: Incremental push for bottom of pyramid consumption; positive for rural infra

BUSINESS

Budget 2019 impact on FMCG: Incremental push for bottom of pyramid consumption; positive for rural infra

While a direct income benefits are supportive to the staple consumption on the margin, steady push for the food processing industries is positive.

Emami Q3 review: Success in silos but mojo is missing

BUSINESS

Emami Q3 review: Success in silos but mojo is missing

Rural-led growth and market intervention should improve given the significant progress the company has achieved in terms of direct distribution reach

Global market cues: Second half of 2019 will be better for risk assets

BUSINESS

Global market cues: Second half of 2019 will be better for risk assets

First cut | Dabur Q3FY19 review: Strong volume growth, positive rural commentary; buy

BUSINESS

First cut | Dabur Q3FY19 review: Strong volume growth, positive rural commentary; buy

Management’s positive commentary on the steady rural growth outlook was the key relief from the result.

Quick Take | US Fed gives in to market expectations; stance supportive of EM assets

BUSINESS

Quick Take | US Fed gives in to market expectations; stance supportive of EM assets

While the US Fed continues to emphasise that US economy is fine fettle with labour market dynamics and wage growth improving, cross currents across the globe remain concerning

Godrej Consumer Products: International business remains a drag; stay on the sidelines

BUSINESS

Godrej Consumer Products: International business remains a drag; stay on the sidelines

First Cut | Godrej Q3FY19: Weak international operating performance weighs on earnings

BUSINESS

First Cut | Godrej Q3FY19: Weak international operating performance weighs on earnings

Household Insecticides continued to see stagnant performance with 2 year CAGR of mere 3 percent. Company noted flat growth mainly driven by unfavorable season in South India. However, this is strikingly contrast to growth seen by Jyothi labs in this segment in Q3 (12 percent YoY).

Navin Fluorine Q3: Speciality chemicals segment looks poistive; buy on dips

BUSINESS

Navin Fluorine Q3: Speciality chemicals segment looks poistive; buy on dips

Company remains a beneficiary of strong barriers to entry in the fluoro-chemical value chain and should gain from the formidable expertise in delivering complex chemical intermediates for the pharmaceuticals industry.

Quick Take | Colgate Q3 review: Stellar operational execution; valuation fair

BUSINESS

Quick Take | Colgate Q3 review: Stellar operational execution; valuation fair

The company has been working on reducing costs, resulting in a 180 bps and 110 bps decline in raw material and employee cost, respectively, as a percentage of sales over the last six quarters

Thirumalai Chemicals Q3 review: Raw material prices hurt; limited pricing power bigger worry

BUSINESS

Thirumalai Chemicals Q3 review: Raw material prices hurt; limited pricing power bigger worry

There could be some relief on material costs as crude oil prices have cooled off. However, the bigger worry is on the revenue front.

ITC Q3FY19 review: Operating slowdown in cigarette biz offset by others; accumulate

BUSINESS

ITC Q3FY19 review: Operating slowdown in cigarette biz offset by others; accumulate

We believe that the thesis of broadening of growth levers for ITC is unfolding as expected. ITC’s Non-Cigarettes businesses have witnessed encouraging growth traction in recent times.

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