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.
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.
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
BUSINESS
Global market cues: Second half of 2019 will be better for risk assets
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.
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
BUSINESS
Godrej Consumer Products: International business remains a drag; stay on the sidelines
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).
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.
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
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.
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.
BUSINESS
Quick Take | ITC: Hotels and FMCG shine in Q3; downtrading in cigarettes needs a close watch
We believe that the thesis of broadening of growth levers for ITC is unfolding as expected. Few of ITC’s other businesses have witnessed encouraging growth traction in recent times: volume growth in the FMCG business and growth outlook in the hotel and paper business.
BUSINESS
Prabhat Dairy–Lactalis stake sale: Investors wary of deal transaction
The current transaction is routed through a subsidiary, so all proceeds (post capital gains tax) would come to the company and it remains to be seen whether it will be shared with shareholders.
BUSINESS
Atul Q3 review: Strong performance adds to conviction; accumulate
We are particularly enthused by the operating margin and expect the company to sustain at least 17-18 percent in the medium term.
BUSINESS
Quick Take | US earnings broadly in line with long term trends; tariffs & currency key factors to watch
Projected earnings growth for Q4 CY18 has softened a bit from the start of the year (10.6 percent versus 12.2 percent YoY). While improvement is seen in industrials; financials, IT, materials and energy sectors have seen downward revisions. For CY19, analysts are projecting single-digit earnings growth of 6.5 percent and revenue growth of 5.3 percent as benefits of fiscal stimulus fade away
BUSINESS
Ideas for Profit | HUL benefits from investment behind brands and distribution; accumulate
One needs to closely watch for pricing growth, which was a shade lower than expectations. It possibly reflects upon recent moderation in cost inflation.
BUSINESS
HUL Q3 Quick take: Volume led growth sustains on a high base
The premium valuation factors in limited volatility in earnings, innovation profile and strong execution capabilities
BUSINESS
Phillips Carbon Q3 review: Soft patch in auto sector demand needs a close watch
Company's capacity expansion programmes ensure continuance of dominant market position and facilitates a potential for high single digit volume growth in medium term.
BUSINESS
Brexit in limbo: Here are the 4 options ahead
The silver lining from May’s defeat is that options like second referendum or UK effectively cancelling Brexit (reversing Article 50) is also alive. But so is the possibility of total stalemate and hence a no-deal Brexit
BUSINESS
Quick Take | China trade data accentuates importance of key events – China plenum & trade talks
Next round of trade negotiation is expected to happen later this month wherein Chinese side would be led by Vice Premier Liu He. Sequence of events gets interesting as China’s communist party plenum (19-22 Jan’19) is also around the corner. This is important as traditionally major reforms are announced in such events which may point towards more opening of the Chinese economy.
BUSINESS
Varun Beverages: Beneficiary of inorganic growth, but how long can it sustain?
BUSINESS
Quick take GST changes: Calamity cess is not equal to sin tax; positive for ITC
This also sets a reference for future as the GST legislation provides for levy of special taxes for a specified period to raise additional resources during any natural calamity or disaster. And hence, on each such occasion tobacco companies may not be on the receiving side.
BUSINESS
Goa Carbon: Weak Q3, but volume rebound on horizon; margin to remain weak
Post recent raw material mobilization, company’s operations are in full swing. Company is sitting on sale order of 50,000 tonne and hopeful of capacity utilization of 96 percent in Q4. End market demand, particularly in aluminum industry (80 percent of sales) remains intact.
