The company is staring at an optimistic future as government initiatives along with new product launches should push sales up. Operating margin is also anticipated to improve on the back of weakness in metal prices
The significant fall in the oil prices in recent months may help airlines reduce fares and witness passenger growth
The recent acquisition of Perma Construction is likely to further intensify the competitive intensity in the market as Kansai is planning to triple the Perma’s revenues in the next 2-3 years through expansion to newer geographies.
From an operational standpoint, the company has an established distribution network and been able to develop a strong brand recall among its customers.
The stock can be considered for accumulation on dips as the as the business is highly scalable, enjoys strong operating leverage and looks well positioned to grow in an increasing digitizing world economy.
The company is doubling its capacity from 53,000 tonnes to 100,000 by the end of FY20.
Infusion of Rs 4,500 crore through the proposed deal would help in taking care of the debt strengthening the balance sheet and improving returns.
In the shorter run, while crude prices might see some support, we remain bearish on the overall crude prices in the longer term
Stylam operates in the building material space and is engaged in the manufacture of high pressure laminates for exterior cladding of furniture, cubicles and interior furnishing.
This shift will provide diversification and scale but help garner higher margins and ensure sustainability for many of these companies as the competitive landscape changes
Backed by favourable socio-economic factors, the domestic poultry industry is expected to grow at a steady pace over the medium to long term
Despite oil prices softening, automobile majors continue to post a weak set of volumes due to muted consumer sentiment caused by liquidity crunch, non-availability of retail finance and moderate festive season
Weakening macroeconomic condition marked by rise in crude oil prices, rupee depreciation, rising interest rate regime coupled with regulatory challenge coming from mandatory long-term insurance as well as natural calamity like floods in Kerala had dampened the demand for most of the auto majors in India in September 2018. However, festive season brought cheers to selected pockets in the month of October 2018.
During Q1 and Q2, Kajaria has displayed resilient operational performance which indicates the superior execution capabilities in a tough market environment