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.
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
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.
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.
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.
Seya Industries: Specialty chemical major in making
Company’s earnings trajectory, range of products offered and the chemical reaction capabilities highlight the increasing non-commoditised nature of the 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.
Prataap Snacks Q2: Solid bottom-line show, but competition needs to be watched
Intense competition in the snacks industry, elevated valuation and the vagaries of the raw material costs make us wary about listed entities in this space.
Fed's Dec meeting: Market not factoring Fed projections for 3 rate hikes in 2018
Should markets catch up with Fed's expectations as they did in 2017 when owing to higher yields in US, fund flows headed back?
Bodal Chemicals: Weak quarter but correction provides an opportunity
Current phase of consolidation and post result correction provides an opportunity, as vertically integrated Bodal Chemicals is well placed for the growth opportunity in the sector.
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.
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.
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.
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
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.
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.
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.
Asian Paints: Raw material pricing & volume growth are key factors to watch for
Investors need to watch out how end market demand picks up from hereon. Elevated raw material prices are expected to weigh on margins in the near-term.
Infosys Q2 results: Focus shifts back to business
Overall, first quarterly result of Infosys, after Nilekani takes over office is about a refocus on earlier defined strategic and operational priorities.
Graphite India Q2: Gains from improved pricing; Watch out for fresh contracts
While it is expected to continue with the healthy operating performance as it benefits from the pricing trends, investors should keep an eye on long-term contracts to be inked during October-December in 2017.
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.
Colgate: Weak volumes despite price cuts signal further market share decline
The falling market share for this single product category company keeps us concerned and we prefer to wait on the sidelines before we see any definitive signs of improvement.
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.
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.
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