BUSINESS
Trade war: Weak risk sentiments can provide opportunities
Elevated volatility scenario (CBOE VIX: 25 and above) may not necessarily be unsuitable for investment. Historically, they have been amongst the best time to invest, particularly when the global growth indicators are robust.
BUSINESS
ICICI Securities: Strong beneficiary of financial savings trend but available at a premium
While implied multiples are certainly towards the higher end prevailing among the peer group, SOTP valuation also reflects that part of the near term growth is priced in the offer
BUSINESS
Trumponomics: Tough negotiator ensuring political payback if not economic
In the words of Peter Navarro, director of the White House National Trade Council, the US can institute tariffs on foreign goods without starting a global trade war or violating WTO rules.
BUSINESS
Himadri Specialty: Holding all aces – New products, capacity jump and domestic protection
The company has announced its medium-term growth plan (next five years) aiming at addition of 2 lac tones capacity (Rs 1,000 crore investment) in the carbon black business.
BUSINESS
Arrow Greentech Q3FY18: Client-end challenges derail near term growth prospects
The company's legacy capacity is utilized optimally (150 MT), however, utilization of new capacity (300 MT) would depend on the trial runs and customer approvals of new grade of film. Management expects streamlining on new capacity by the end of FY18, with incremental utilization FY19 onwards.
BUSINESS
Food colour industry Q3 review: Mixed results; capacity addition remains next trigger
Recent announcements of Vidhi Specialty acquiring Arjun Food Colorants and the increase of promoter’s shareholding in Dynemic Products point towards increasing promoter’s confidence in the sector and makes it an interesting investment space to look at.
BUSINESS
Ignore Trump's trade war talk, India's metal sector to ride on global economy, China reforms
Iron & Steel and Aluminum exports to the US constitute only 0.29% of India’s total exports.
BUSINESS
Elantas Beck Q4CY17: Valuation captures improving demand prospects
Raw material prices have surged recently mainly on account of global supply chain constraints for MDI in 2017. In the current year, however, raw material prices can stabilize due to improving supply and the expectations that oil prices would settle at current level.
BUSINESS
Aliphatic Amines manufacturers: New capacity backed volume growth to aid earnings growth
Anti-dumping investigations by the central government for select amine products is also improving earnings growth scenario.
BUSINESS
How Indian markets should interpret the US Fed meet minutes
The real interest rate differential is shifting in favour of the US market, making the latter a relatively-attractive destination for the portfolio flows.
BUSINESS
Food processing Q3: Earnings rise, but surge in raw material costs need to be monitored
Government’s impetus on developing food processing infrastructure can benefit firms in the long run.
BUSINESS
Marico Q3: Volume uptick but margin pressure remains a concern
While there has been a good mix of volume and value, overall result is below our expectations. Higher raw material prices have prompted company for consecutive prices hikes in Parachute hair oil. Though so far company has been not seen any negative impact on the market share, it need to be seen it’s sustenance in coming quarters.
BUSINESS
Apcotex Industries Q3: Stellar result aids in market share gain in nitrile rubber
Company has a major capacity expansion plan ( ~Rs 150-200 crore) where in details are tentative but can expand Synthetic latex capacity to 75-80,000 MT (from 55,000 MT) and Nitrile rubber capacity can go up to 30,000 MT.
BUSINESS
HEG & Graphite India Q3: Tight supply demand balance remains a support
HEG’s quarterly result was well ahead of expectations. Sales more than doubled on sequential basis and exhibited the benefit of change in pricing trend and progress in contract renewals for the graphite electrodes
BUSINESS
Q3 review: JHS benefits from capacity ramp up, Dabur sees well-diversified performance
We are encouraged with demand pick up in rural market. Sales growth through Dabur's Super stockist channel, which is largely rural, was 26% YoY and augurs well for a company having sales contribution of about 45-50% from rural areas.
BUSINESS
Himadri Specialty Chemicals: Pricing tailwinds, new capacity enhancements to aid growth
Instead of 30,000 MT capacity expansion earlier announced, it is now looking for 60,000 MT additional capacity for carbon black.
BUSINESS
Budget 2018: Focus on rural income and productivity; positive for FMCG sector
Boost in rural sector should aid the fragile rural recovery and spur consumer demand.
BUSINESS
Capacity expansion, contract renewal cycle could trigger re-rating for Alufluoride
New capacity of about 4500 MT would be operational in Q1FY19, taking the Aluflouride's overall capacity to 12,000 MT.
BUSINESS
Godrej Consumer & Emami Q3: Rural prospects expected to lead recovery
While Emami’s result was below expectations, the results of both Emami and Godrej Consumer nonetheless point to a sector-wide recovery in terms of volume growth.
BUSINESS
Q3 Earnings picks: Commodity, food processing and IT stocks resonate
GNFC reported excellent traction in its earnings (PAT: 241% YoY) aided by 40 percent topline growth, EBITDA margin expansion (+906 bps) and lower interest expense. This was mainly led by Chemicals division
BUSINESS
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.
BUSINESS
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
BUSINESS
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.
BUSINESS
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.
