Retail remains a promising industry in the Indian context, given the large consumer base throughout the country.
Globally, carbonated drink majors are shifting towards healthier drink options after having experienced stagnancy in the carbonated drinks segment
Macro factors such as favourable demand – supply dynamics along with micro factors like margin improvement to aid TNPL’s future profitability.
Although there has been a substantial correction in stock prices, we approach the current year with caution given the increasing global uncertainty, rising crude oil prices, growing agitation against higher petrol and diesel prices in domestic markets and government’s unwillingness to reduce taxes on fuel
Sustainability of asset growth can’t be taken for granted. The steep hike in funding cost would impact interest margin as the entire hike may not be passed on to end-customers.
An oligopolistic nature of the market, higher consumer discretionary spending, wider reach of organised retailers and increased awareness towards health/hygiene should benefit leisurewear companies in the long run.
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
While the volumes will continue to grow at a healthy pace due to shorter replacement cycles (reduction in warranty period) and deeper market penetration, the margins will certainly suffer on account of reduction in selling prices.
Finolex Industries will continue to grow at a steady pace for the next couple of years as the management is seeing strong traction in high margin CPVC business, which registered 70 percent volume growth in Q1 FY19
A plethora of factors like trade wars, weather anomalies in the US, inability of nations to boost production have inundated a negative sentiment, leading to the firing up of oil prices
Hotel companies reported an encouraging performance amid rising room rates and occupancies. With a favorable supply demand situation we stay positive on the growth story for the sector
Short term concerns such as change in axle norms and mandatory long term third party vehicle insurance could dampen demand from original equipment manufacturers
The commercial vehicle segment continues to remain strong on the back of factors like normal monsoon, improved rural sentiments and investment in infrastructure
With increasing capacity utilisation across regions, cement prices are expected to firm up after the monsoons and should aid margin recovery, which appears to have bottomed out
While improved margin profile would be moderated by increased competitive intensity, the recent decline in stock prices offer some opportunity to keep an eye on
While Relaxo and Sreeleathers reported healthy top-line growth YoY, Bata was the standout performer on the margin front.
While the bearings sector looks interesting from a growth versus valuation standpoint, we like SNL Bearings, Menon Bearings and NRB Bearings
While the rupee’s depreciation against the dollar in recent times could offer some respite to home textile majors, the near-term outlook for the sector as a whole is far from promising.
Given the overall momentum in crude oil prices, we expect both companies to be comfortable as far as revenue is concerned
Asian Granito has been consistently delivering industry-leading double-digit volume growth for the past few quarters. It continues to expand its retail footprint in an aggressive manner and is focusing on value-added products to enhance margins
Both these companies trade at rich valuations given the high growth prospects in light of sector opportunities: GST, e-way bill and axle norms
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
The financials of airline companies are clearly feeling the heat, despite an increase in passenger traffic, improving utilisation and government’s accommodative policy
The revival of the rural economy and expectations of normal monsoon continue to make the outlook positive for the tractor segment.
We prefer Ambuja over ACC as the latter has a higher fixed cost structure and lags much behind its peers in terms of operating margins.