BUSINESS
Amines sector: Improved pricing, expanded capacity aids earnings
Balaji Amines’ management said the current developments have contributed to a price premium of about 25 percent, which can ease as these developments subside
BUSINESS
Jet Airways: Cost-cutting measures may not be good enough
Looking at pro forma quarterly numbers for next year, incorporating some of the strategic steps by Jet Airways, suggests operating profit may not be good enough and interest coverage may remain negative.
BUSINESS
Britannia results: Portfolio expansion to accelerate, competition as well
Overall takeaway for the snacks industry is positive as double digit growth in rural areas continue with accelerated growth seen in northern states. While company’s attempt to expand its portfolio and focus on high margins products is commendable, increasing competition in the premium biscuits category and cheese categories needs to be watched carefully.
BUSINESS
Graphite electrodes: Strong cash flow visibility; needle coke supply is key
All in all, investors with high risk appetite only should add position to graphite electrode manufacturers.
BUSINESS
Marico Q1 review: Elevated competition caps earnings visibility; diversification key
While volume guidance banks more on the product portfolio other than Parachute, the company’s ability to defend higher margin would be tested in times to come
BUSINESS
Recent FMCG results marked by volume recovery, should you buy?
Dabur’s exceptionally better earnings was due to a recovery in the beverage segment while Emami’s performance came in below our expectation as its summer portfolio lacked shine on account of a weak season
BUSINESS
Godrej Consumer: Household insecticides needs close watch; valuation rich
While the businesses are on the mend, we expect pricing and innovation contribution to be tested in times to come
BUSINESS
Dynemic Products Q1 review; Plant shutdown weighs on sales; capex clearances crucial
Delay in getting the environmental clearance adds to uncertainty. Further, once they get the clearance then it would take about one year or so for the new plant to get operational.
BUSINESS
ITC Q1 review: Stabilising legacy business, new growth levers to aid re-rating
Recently few of its businesses have witnessed encouraging growth traction –volume growth in FMCG business, growth outlook in hotel business and paper business and now stabilization in cigarettes.
BUSINESS
Navin Fluorine: Improved revenue trajectory for specialty chemicals a positive, accumulate
Higher exposure to pharma end markets and improved turnout in specialty chemical is a key positive, which can help company re-rate in the medium term
BUSINESS
Thirumalai Chemicals: Re-rating potential capped on limited pricing power
We remain wary about the product price realization trend given the potential removal of trade protection measure and the limited pricing power of the chemical commodity business
BUSINESS
Risk premium inflates as Trump trade war rages
Even if one expects Trump to succeed, prolonging of political manoeuvres, could make the global supply chain more susceptible to disruption
BUSINESS
Goa Carbon: Elevated green coke prices key to watch out for
Sales realization continues to remain firm and up about ~3 percent QoQ and 15 percent in last six months.
BUSINESS
Bajaj Corp: Q1 volume growth led by rural consumption; acceleration in innovations remains critical
Positives for the company from the earnings result includes growth revival in rural areas and improving distribution reach. Company’s key challenge comes from the changing hair oil industry dynamics which includes competition from the low cost manufacturers.
BUSINESS
Ideas for Profit: Strong growth recovery unfolds in HUL; competitive intensity key
HUL with its high rural exposure (40 percent of sales) and well entrenched distribution network, is amongst the key beneficiaries of further uptick in consumption and related policy announcements, in our view.
BUSINESS
Bhansali Engineering Polymer: Accumulate on deflating valuation froth, positive outlook
BEPL’s strong balance sheet, guidance for better capacity utilisation and promising end markets remain key positives.
BUSINESS
Astral Poly Technik’s Rex Polyextrusion buy a positive, accumulate on dips
The deal gives the company a head start in the high growth and relatively less crowded plastic piping segment
BUSINESS
Can the chemical industry benefit from US-China trade war?
Duties imposed on these commodities are important inputs for various streams like animal feed and plastic processing industries.
BUSINESS
Tata Global Beverages: Restructuring story is still alive
Reports suggest that one of the proposals that Tata Group is evaluating involves merging the salt and branded lentils business of Tata Chemicals with Tata Global Beverages and full consolidation of Tata Coffee
BUSINESS
Graphite electrodes supply-demand dynamics: Let’s do the math again
Graphite India is expected to continue to ride the strong cash flow cycle in the medium term
BUSINESS
Vikas Ecotech: Weaker governance offsets green opportunity
We would err on the side of caution and advice investors to stay cautious given the balance sheet woes and corporate governance issues
BUSINESS
Horlicks: A potential nutrient fit for select FMCG giants
While the category itself undergoes a change, even the existing business of GSK Consumer holds value for other FMCG players and there is a scope for operational synergies
BUSINESS
Prataap Snacks: Munch on this long-term growth story
Over the period, key concerns - higher logistics costs and increasing geographical reach - have been partially addressed due to decentralised production through contract manufacturing
BUSINESS
Fine Organic Industries IPO: Subscribe for the long term
Incorporated in 2002, Fine Organic Industries is the largest manufacturer of oleo-chemical based additives in India.
