BUSINESS
Ideas for Profit: GST, auto cos rev up battery manufacturers; industrial/EVs drain
Demand from telecom, within the industrial segment, continues to be a spot of bother. What is eating into the profitability of battery manufacturers is higher lead and sulphuric acid prices
BUSINESS
Ideas for Profit: Valuations reasonable for these two tyre cos; accumulate
Short term concerns such as change in axle norms and mandatory long term third party vehicle insurance could dampen demand from original equipment manufacturers
BUSINESS
Ideas for Profit: LEDs continue to light up fortunes of Lumax and Fiem Industries
Market leadership, marquee clients, focus on developing technologically advanced products and adoption of LED-based products provide improved earnings visibility for the companies and therefore merits investor attention
MONEYCONTROL-RESEARCH
Ideas for Profit: JLR hits speed breaker, avoid Tata Motors
In the near future, JLR is expected to face challenges from the rapidly evolving automotive technology, uncertainty in the UK and Europe and change in import duty structure in China
BUSINESS
Maruti Suzuki Q1FY19 review: Steady show, but valuation leaves little room for upside
Today, MSIL has a virtual monopoly in passenger vehicle market in India led by strong dealership network, brand loyalty on the back of competitive prices and resale value. With a slew of new launches including refreshers, strong order pipeline, product rejig toward premium products and leadership position in Indian market, the stock will continue to enjoy the fancy of investors despite the premium valuation.
BUSINESS
Hero MotoCorp Q1 review: Host of factors make stock worthy of long-term accumulation
Strong leadership in two-wheeler segment, revival riding on rural growth, a slew of new launches, structural changes from an upcoming product rejig, focus on exports market and reasonable valuations make it a stock worth accumulating for long-term investors.
BUSINESS
CEAT Q1 FY19 review: Riding smoothly on rubber, low base and strong demand
CEAT posted a strong growth in net revenue and operating profitability. Its margin also improved on the back of falling RM prices. The company is poised to gain from an increase in market share in passenger vehicle (PV) segment and capacity expansion in selected pockets.
BUSINESS
Ideas for Profit: Market share war might weigh on Bajaj Auto's future performance
While the company reported a significant increase in volume and revenue, operating margin was marred by an adverse product mix and price cut undertaken by the management in the entry level motorcycle segment
EARNINGS
Ideas for Profit: Ashok Leyland rides on multiple opportunities, accumulate for the long term
We see numerous opportunities for the company such as more organised players in the economy, strong exports, robust industry prospects, its defence strategy and focus on electric vehicles
MONEYCONTROL-RESEARCH
Ideas for profit: IndiGo, SpiceJet set to soar
Recent weakness in the stock prices of Indian airlines on the back overall market volatility and rising ATF prices is providing an opportunity to board fundamentally strong business for the long term
BUSINESS
CV, tractor sales continue to zoom in June
Stronger two-wheeler sales is an emerging trend and could receive additional support from the back of a revival in demand
BUSINESS
Varroc Engineering: Valuations rich, avoid
We would wait for a correction after its listing to accumulate this company for the long-term
MONEYCONTROL-RESEARCH
Ideas for profit: 4 auto ancillaries to ride upmove in CV space
Growth has been fuelled by the government’s focus on infrastructure, increase in mining activity, boost to rural sentiment from a normal monsoon and a strict ban on overloading of vehicles
MONEYCONTROL-RESEARCH
Ideas for profit: 3 bearings stocks to accumulate now
The bearing space appears promising on the back of secular growth in automobiles, uptick in the industrial segment and improvement in technology that would lead to increase in content per vehicle.
MONEYCONTROL-RESEARCH
May auto sales: Commercial vehicles continue to skyrocket
CV and tractor segments should have a strong run going forward given the government’s focus on the rural economy in an election year and its continued investment in infrastructure.
BUSINESS
Auto December 2017 sales analysis: Growth exaggerated by base effect
We feel most regulatory headwinds are weakening and the situation has returned to near normal. Good monsoon, rural demand and government’s capex push are the tailwinds that will drive growth in the sector.
MONEYCONTROL-RESEARCH
Rane Brake Lining Ltd– Strong financials and no EV impact demand attention
RBL is a part of the Rane Group of companies and is a leading manufacturer and marketer of safety critical friction material.
MONEYCONTROL-RESEARCH
SNL Bearings – niche player, technological prowess, and strong financials make it worth investing
SNL has a strong set of financials and is virtually a debt-free company. Also, it is trading at a discount compared to the valuations its peers are commanding
STOCKS
GNA Axles' niche player tag, immunity from EV disruption give it an edge
GNA has consistently been focusing on reducing debt and used IPO proceeds to pay back the large chunk of its debt. Debt-to-equity ratio has come down to 0.40 in FY17 from 1.47 in FY13.
MONEYCONTROL-RESEARCH
EV portfolio features 9 auto ancillaries that are immune to the electric disruption
Since the Indian market has a large play on auto ancillaries, we decided to create a portfolio of ancillary companies that are immune to EV disruption and/or beneficiaries of the advent of EV.
BUSINESS
Rural demand, government's capex plans to drive auto sales
Auto players witnessed a huge spike in their sales volume for the month of November, partly due to the lower base of the previous year when demonetization hit them.
BUSINESS
Consolidation, data boom key triggers for telecom sector
Incumbent players have seen a steep erosion in margins and profits over the last couple of quarters as they were forced to slash tariffs in response to the rates offered by Jio.
STOCKS
For 2 of India's battery makers, what does EV push hold in store?
The biggest challenge for Amara Raja and Exide is the sourcing of raw material. Lithium is the key raw material for the batteries to be used in EVs.
