Populist support measures are only a short-term solution and aggravate the imbalance in resource allocation.
With a large number of positives expected from DFC, there is a lot at stake from an industry perspective. Although the execution of the project is still in early stage, the first set of beneficiaries would be the companies having proximity to the Eastern and Western Freight Corridor.
Companies that had identified digital as a transformative tool and got into the game early on, are now reaping rich dividends.
Barring load factor, performance of the industry on all parameters was better when compared to last month.
Import duty on palm oil has surged over the last one year. In March, duties on CPO were increased to 44% from 30%, which is the third such hike in nine months which started from 7.5%.
The MDF segment being the fastest growing segment in plywood category, is getting the much needed attention from industry majors - Century Ply and Greenply.
For India, the opportunity knocks on two forms. One, Indian companies will be able to increase supply as a result of rising demand. Two, they will benefit from higher international aluminium prices.
With Aramco’s high credit rating, the deal has the potential to significantly bring down the cost of financing for the project which would benefit all the involved stakeholders.
Brewing geopolitical tensions coupled with fears of trade wars and inventory cuts are expected to keep crude up in the near term
We have hand-picked five smaller companies that beckon investors ‘attention.
IndiGo pulled out of the race saying it does not have the capability to take on the herculean task of acquiring Air India’s entire operations and turning it around
Notwithstanding some minor hurdles, the sector remains in a sweet spot and is undoubtedly worth banking on.
The introduction of E-Way bill (electronic documentation aimed to track goods movement and prevent tax evasion under GST) from 1 April 2018 would result in increased transparency as well as encourage further formalisation of the sector
Tailwinds such as increasing disposable incomes, growing preference towards branded discretionary items, and inroads made by organised retailers across the country are the key catalysts that could give this sector a noticeable fillip in due course.
Focus on rural economy in an election year and continued investment in infrastructure should boost CV and tractor segments going forward.
Though the engine problem of A320neo aircraft first surfaced in February, Indigo gained 20 bps in its market share over January
GSPL has approved the purchase of another 28.4 per cent stake in Gujarat Gas from its parent company GSPC.
Overall the deal brings about significant synergies for IOC and BPCL and would facilitate their strong and rapid expansion in the retail segment, though there could be short-term surge in the finance cost.
Power is one big sector that started to panic as there is substantial stressed capacity in the sector.
The cost benefit that cement companies enjoyed (power & fuel as well as freight) seems to be waning. In the absence of broad-based demand revival and valuation still reflecting optimism, investors got to place their bets wisely.
Relaxing the net worth criteria would increase the universe of bidders as there are hardly any players with positive net worth. This could help in fetching a better valuation.
The government has also started work on reviving closed urea manufacturing plants to ramp up production by 2022, in order to reduce imports of fertilizer.
Though valuations of the home textile stocks appear undemanding, investors may consider going long on Himatsingka Seide and Trident given their ability to tackle headwinds better than their peers, good fundamentals, and strong execution competencies.
Given the price uptick for both crude and gas, it should have a positive rub-off on net realizations. ONGC can be bought at current levels, but look for a better entry point for Oil India