Moneycontrol

Budget 2021

Associate Partners:

  • SMC
  • Samsung
  • Volvo

Moneycontrol

Budget 2021

Associate Partners:

  • SMCSamsungVolvo

Krishna Karwa

Research Analyst

Moneycontrol Research

Retail sector Q3 review: Promising outlook amid stiff competition

BUSINESS

Retail sector Q3 review: Promising outlook amid stiff competition

While Future Retail and V2 Retail may be considered for a medium to long-term investment perspective, accumulation on further corrections is advisable for the rest.

Ideas for Profit: Beat the heat with these cool stocks

BUSINESS

Ideas for Profit: Beat the heat with these cool stocks

As the mercury rises, some companies can look forward to strong earnings traction in the quarters ahead.

Innerwear sector Q3: Premium valuations factor in the growth story

BUSINESS

Innerwear sector Q3: Premium valuations factor in the growth story

Inroads made by organised retailers across India, simplification of logistics, and growing preference for branded innerwear are some of the key tailwinds in the long-run.

Sreeleathers Q3 – A smallcap that outperformed Bata & Relaxo yet again

BUSINESS

Sreeleathers Q3 – A smallcap that outperformed Bata & Relaxo yet again

For the company, focused asset-light expansion, operating leverage, and benefits of GST transition are likely to lead to improved earnings visibility.

Which jewellery stock should you trust after the Gitanjali Gems fiasco?

BUSINESS

Which jewellery stock should you trust after the Gitanjali Gems fiasco?

In the aftermath of the recent fraud, brands that have had a long history of being very trustworthy are highly likely to benefit

Shaily Engineering Plastics Q3 – An expensive yet promising performer

BUSINESS

Shaily Engineering Plastics Q3 – An expensive yet promising performer

The company aims to achieve a turnover of USD 100 million by the end of FY20 on the back of strong order visibility from its Swedish client, higher capacity utilisation at its pharma packaging facility, and improved sales traction from FMCG and automobile clients.

Himatsingka Seide Q3 – Operating leverage holds the key to a re-rating

BUSINESS

Himatsingka Seide Q3 – Operating leverage holds the key to a re-rating

Operating leverage, backward integration, capacity addition (for terry towels), risk diversification, and increased emphasis on sale of brands are the key moats that make Himatsingka Seide a good investment proposition.

Voltas, Blue Star Q3 – All set to tackle the heat

BUSINESS

Voltas, Blue Star Q3 – All set to tackle the heat

With disposable incomes rising and government’s push towards pan-India electrification evident, AC manufacturers have quite a few tailwinds to look forward to.

Fiberweb (India) Q3 – Does business model uniqueness lead to better earnings?

BUSINESS

Fiberweb (India) Q3 – Does business model uniqueness lead to better earnings?

The company is well-poised to witness earnings traction on the back of capacity expansion and a change in the product mix. The valuation, at 5x FY20 projected earnings, remains undemanding and merits attention.

Aditya Birla Fashion & Retail, Shoppers Stop Q3 – Can turnaround strategies pay off?

BUSINESS

Aditya Birla Fashion & Retail, Shoppers Stop Q3 – Can turnaround strategies pay off?

For both companies, prospects of a re-rating can be attributed to demand growth, network augmentation, and business/cost rationalisation.

Titan Q3 - Accumulate on weakness

BUSINESS

Titan Q3 - Accumulate on weakness

The transition of India’s jewellery industry from unorganised units to tax-compliant entities will work considerably in favour of Titan, one of the largest organised branded players in the country.

Arvind Q3 – branded apparels segment to be the game-changer

BUSINESS

Arvind Q3 – branded apparels segment to be the game-changer

The company's branded apparel segment is on course to deliver high growth, whereas the textile segment may witness margin pressure in the near-term.

Budget 2018 Impact: Corporate tax relief for the SME sector

BUSINESS

Budget 2018 Impact: Corporate tax relief for the SME sector

Companies with a turnover of less than Rs 250 crore in FY17 would be required to pay tax at 25 percent (and not at the erstwhile rate of 30 percent) in FY19.

Security and Intelligence Services — Promising prospects deserve attention

BUSINESS

Security and Intelligence Services — Promising prospects deserve attention

For 9MFY18, the company benefited from economies of scale (in its India-based security operations and facility management services segments), whereas reduction in interest costs (by paring debt through IPO proceeds) led to a visibly improved bottom-line.

Raymond – good quarter on a favourable base

BUSINESS

Raymond – good quarter on a favourable base

While the low base (demonetisation in Q3FY16) had a big role to play, top-line traction across all segments, lower ad spends, and operational efficiencies were the primary drivers for the company's visibly better performance in the quarter gone by.

Avenue Supermarts – perfect valuation limits upside despite picture perfect execution

BUSINESS

Avenue Supermarts – perfect valuation limits upside despite picture perfect execution

Though D-Mart remains one of the strongest players in Indian retail, achieving consistent double-digit top-line growth on an already high base with the company owned company operated (COCO) store model will be a tall task given the aggressive outlet additions that it would necessitate.

Crompton Greaves Consumer Electricals – Look for valuation comfort

BUSINESS

Crompton Greaves Consumer Electricals – Look for valuation comfort

The company's earnings visibility may improve by virtue of a strong order book and a shift towards product premiumisation.

Havells & V-Guard – should you buy after a strong show?

BUSINESS

Havells & V-Guard – should you buy after a strong show?

Both the companies have been industry leaders and steady performers in the consumer electricals space over the years. This can be predominantly attributed to their robust fundamentals, clearly defined future strategies, and strong execution capabilities.

PC Jeweller: Good show, long-term thesis getting better

BUSINESS

PC Jeweller: Good show, long-term thesis getting better

Robust fundamentals, coupled with favourable economic moats, may result in the valuation gap between PC Jeweller and Titan narrowing over a period of time.

Den Networks puts up a robust Q3 performance, should you invest?

BUSINESS

Den Networks puts up a robust Q3 performance, should you invest?

For the company, uncertainties and risk factors outweigh the positives substantially, at least in the near-term.

Amber Enterprises IPO – a cool stock to look at

BUSINESS

Amber Enterprises IPO – a cool stock to look at

With marquee clientele in its kitty and a higher share of margin-accretive original design manufacturing (ODM) contracts in its revenue, the company has all the right ingredients for a profitable journey.

100% FDI in single-brand retail: A much-needed booster shot?

BUSINESS

100% FDI in single-brand retail: A much-needed booster shot?

The Union Cabinet, in a landmark move for Indian retail, announced some noteworthy changes in norms pertaining to single-brand foreign direct investments (FDI) in India, thereby making it considerably easier for global retailers to gain access to the highly dynamic and fast-growing Indian markets

Future Retail – Will the 'Tathastu' strategy translate to better earnings visibility?

BUSINESS

Future Retail – Will the 'Tathastu' strategy translate to better earnings visibility?

Though the historical margins of the company vis-à-vis its peers aren’t quite up to the mark, the possibility of a further re-rating cannot be ruled out since a change in business mix could augur well for the financials.

Innerwear Vs Outerwear: Who can deliver growth sustainably?

BUSINESS

Innerwear Vs Outerwear: Who can deliver growth sustainably?

Within the textile sector, the trade is now shifting towards the innerwear companies as outerwear companies’ growth and margins have been facing the brunt of competition, with new domestic and international players crowding the market.

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