BUSINESS
Phthalic Anhydride players: Removal of anti-dumping duty intensifies competitive landscape; avoid
After taking imports from major Korean importer (Aekyung) into account, one finds that 65 percent of India’s total imports took place without any anti-dumping duty during the period of investigation.
BUSINESS
FMCG major gravitate to healthier beverage space; here’s 4 stocks to look at
Globally, carbonated drink majors are shifting towards healthier drink options after having experienced stagnancy in the carbonated drinks segment
BUSINESS
Ideas for Profit: Shift to value added products to boost earnings growth for dairy cos
While improved margin profile would be moderated by increased competitive intensity, the recent decline in stock prices offer some opportunity to keep an eye on
BUSINESS
Ideas for Profit: Alufluoride rerates on improving demand outlook; accumulate on decline
While the capacity expansion plan has slightly delayed, order pipeline and a potential quick ramp up of utilization makes the prospects for topline growth promising. Operational efficiency measures are another earnings tailwind which investors can keep an eye at.
BUSINESS
Avadh Snacks deal launches Prataap Snacks as a major player in Gujarat; accumulate
Prataap Snacks is acquiring 80 percent stake in Avadh Snacks for Rs 148 crore.
MONEYCONTROL-RESEARCH
Apcotex Ind: Improving earnings for nitrile rubber, latex a key positive; accumulate
Apcotex Industries multi-year expansion plan and operating efficiency measures make it an accumulation candidate
BUSINESS
Himadri and Galaxy: Improving end markets act as catalyst for these chemical stocks
Recovery in another important end market for the chemical industry, Indian FMCG, has aided higher earnings growth for Galaxy surfactants.
BUSINESS
Rain industries: Robust end market prospects remain key catalyst; emerging risks to be watched
Growth in aluminium production in the US (restarts) and Asia remains the key demand driver
BUSINESS
Ideas for Profit: Bodal, Vidhi Speciality set to reap favourable supply-demand dynamics
While both companies are key beneficiaries of environmental compliance and favourable supply-demand dynamics in their respective segments of dyes and colour industry, their focus on vertical integration and capacity expansion provides impetus to earnings growth.
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.
