Consumer-facing businesses appear to be the preferred picks of most investors, and retail companies are no exception. Consequently, it isn’t surprising to see such stocks trading at a premium
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.
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.
While Q1 earnings were subdued, we expect future profitability to improve, albeit gradually, as operating leverage will play out with growth in the business
BEPL’s strong balance sheet, guidance for better capacity utilisation and promising end markets remain key positives.
Stability in senior leadership, well chalked out execution strategy, better demand environment, generous payout and opportunities from a weaker rupee-dollar protects downside for the stock
Potential change in duty protection regime can be a dampener for the IG Petrochem and Thirumalai Chemicals
With marquee clients in its kitty, huge industry opportunities, focus on high margin products, plans for launching electric buses, strong performances from subsidiaries and joint ventures, and robust financials, the company beckons investor attention
We expect the stock to consolidate following a weak Q1. However, we are confident about Cyient’s domain expertise, supplemented by the right acquisition and execution capabilities
The management has stepped up its investments in IT infrastructure. It has completed more than 200 IT projects in the past 2 years to bring in business efficiencies across departments.
To play safe, institutional and retail investors preferred large caps with a promising profitability potential and robust fundamentals, whereas mid and small caps bore the brunt of selling pressures.
The deal gives the company a head start in the high growth and relatively less crowded plastic piping segment
Duties imposed on these commodities are important inputs for various streams like animal feed and plastic processing industries.
Although the stock appears expensive at current levels, long term investors should buy this stock on dips as it has multiple levers in place to drive growth ahead
Outlook for the wealth management industry is promising as the market is under penetrated, likely to grow in sync with India’s economic growth and rising income levels in the economy
We view Q1 FY19 as a continuation of the well-charted out strategy of building a solid business with a focus on high yielding/good quality assets, backed by retail focused low cost liability.
While the payout limits the downside, rupee depreciation in a volatile global environment could act as a tailwind. Investors should use dips to accumulate TCS as a core holding in the large cap IT space.
Even while Hiesinger was announcing the transaction with Tata Steel’s Chairman N Chandrasekaran at a press conference, the rumour mills were working overtime about his impending exit.
Within the power sector, we are more constructive about state-run utilities such as NTPC, which has a stable cash flow stream, capacity addition and low regulatory risk
Notwithstanding a few temporary blips, we remain bullish on Titan’s ability to maintain its premium valuation
Valuation appears to be reasonable after the stock correction
With majority of the capital expenditure behind it, improving free cash flows will help it de-leverage the balance sheet and and push return ratios into double-digits
At 6 times FY19 estimated earnings, GMDC remains one of our attractive picks in the mining space
Despite weak performance in housing finance subsidiary, expected buoyancy in the capital markets along with growth in the fee-based businesses should support MOFS’ future earnings.
MSP is a short term eye wash which can be called a myopic solution to the agrarian distress.