BUSINESS
SRF: Capex intensity in free flow
Among the recent announcements, what got our attention is more than 50 percent expansion for the belting fabrics capacity to cater to demand as infrastructure spend revives.
BUSINESS
Syngene: Multi-year contract with Zoetis adds to long-term visibility
The risk to watch is the execution in the field biologics and the pending regulatory approvals
BUSINESS
Gland Pharma: What do acute supply shortages mean for the business & investors?
In the medium to long term, upside triggers can come from biologics CDMO and China opportunity.
BUSINESS
Bhansali Engineering: Normalising margins, limited scope for volume growth cap earnings
The challenges to the auto end-market are showing signs of easing, but BEPL’s limited idle capacity restricts it from capitalising on the situation
BUSINESS
What does strength in dollar index mean for Indian equities?
One-month rolling return on the Dollar index is more than two standard deviation level higher from the average value of returns for last 20 years– the level at which it generally doesn’t stay long.
BUSINESS
Himadri Speciality: What does the future hold?
In the years before COVID disruptions, HSCL used to command premium operating margins, compared to peers such as PCBL and Rain Industries. However, in the past 10 quarters, this is not the case
BUSINESS
KIMS: Can it replicate its healthcare success?
In the next few years, KIMS plans to replicate the success of Andhra and Telangana in the adjacent states of Maharashtra and Karnataka
BUSINESS
What does Fed’s dilemma — US recession vs inflation — mean for investors?
Fed would reiterate its hawkish stance in the coming meetings as well. While a 75-basis-point hike is widely expected in the July meet, another 75-bps hike during the September meet cannot be ruled out
BUSINESS
Clean Science and Technology: Capacity additions to help gain market share
Clean Science and Technology’s progress in capacity addition and product diversification bode well for the company’s future growth
BUSINESS
Sumitomo Chemicals India: Steady margin profile catches attention
The company’s superior execution in recent quarters makes it worthy of tracking. We see huge business opportunities emerging from the parent and group companies; investors can buy the stock on market dips
BUSINESS
Gland Pharma: Track this inorganic play for the near term
While in the near term, the equity market looks fragile, Gland Pharma makes a cut for the longer haul. This is because of the rising prevalence of chronic diseases and growth of biologics, wherein injectables have a role in treatment and drug delivery
BUSINESS
As the Fed steps up inflation fight, how long will the relief rally sustain?
As per FOMC projections, the Federal Funds rate can reach 3.4 percent by the end of this calendar year. This is significantly higher than the March projection of 1.9 percent and implies about 50 bps rate hike each in the remaining four meetings this year
BUSINESS
Laurus Labs: This pharma stock gets a shot in the arm
Relatively better growth visibility and the recent steps towards diversification support our long-term conviction on this scrip.
BUSINESS
How hard will Powell push the pedal after the latest US inflation data?
Fed Funds futures are pricing in a 75 bps hike in one of the meetings till September
BUSINESS
Get ready for an action-packed week ahead as central banks eye soft landing
Earnings downgrades in the last two quarters have been a function of margin compression. In the next few quarters, there is a potential risk of earnings downgrades due to demand destruction
BUSINESS
Fine Organics: Strong Q4; time to book profit?
The reliability in its supplies has helped Fine Organics pass on the increase in input costs, and hence elevated input cost by itself is not a formidable challenge
BUSINESS
Aarti Industries: Multi-year contract opportunity intact
The third multi-year contract and the NCB (Nitro Chloro Benzene) capacity expansion project for Aarti Industries are expected to get completed in FY23
BUSINESS
Sun Pharma: Time for investors to exit?
Even though further traction in specialty products and domestic business is expected, we believe this may not be enough to offset the running expense on brands/products and field force.
BUSINESS
IPCA Labs: Growth outlook primed by domestic business
Ipca is adding 1200 medical representatives with a focus on Ortho, Derma, and Cardiovascular therapies
BUSINESS
Divi’s Labs: Steady margin profile amid cost headwind
Earnings trigger for the medium term is Contrast Media API opportunity, where there is limited competition
BUSINESS
Aether IPO | This niche chemical player is a leader of the pack. How?
The company’s success depends on identifying the molecule/product opportunity, investing behind R&D and implementing processes/integration to scale it up
BUSINESS
Zydus Lifesciences: Success in niche molecules key to growth
While we acknowledge that the COVID opportunity has significantly declined during this period, the company deserves attention purely on the basis of its valuation (10x EV/EBITDA FY24e) and domestic business
BUSINESS
Lupin: Pricing erosion intensifies in US
Near-term growth visibility is low due to a lack of major product launches, aggravating pricing erosion and input cost pressure for Lupin
BUSINESS
Dr Reddy’s: Acceleration in EM opportunity to help re-rate company
Dr Reddy’s area of focus in the domestic market includes hepatology, diabetic nutrition and its health-tech platform
