sector analysis

Indian Agriculture: Misdirected populist policies doing more harm than good

Populist support measures are only a short-term solution and aggravate the imbalance in resource allocation.

Will Dedicated Freight Corridor be the much touted game changer?

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.

Should you log into IT stocks post the stellar showing in Q4 FY18?

Companies that had identified digital as a transformative tool and got into the game early on, are now reaping rich dividends.

Air passenger growth in March: A look at the winners & losers

Barring load factor, performance of the industry on all parameters was better when compared to last month.

Protectionist measures in palm oil industry may bear fruits for domestic players

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%.

Ideas for Profit | Indian wood panel industry: Building on a secular theme

The MDF segment being the fastest growing segment in plywood category, is getting the much needed attention from industry majors - Century Ply and Greenply.

US sanctions on Rusal: Indian aluminium players to gain of two fronts

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.

Saudi Aramco’s Indian refinery investment: A win-win deal for all parties

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.

What spike in crude could mean for downstream oil cos – will govt. go back on its words?

Brewing geopolitical tensions coupled with fears of trade wars and inventory cuts are expected to keep crude up in the near term

5 smaller companies that merit more attention as roads sector heats up

We have hand-picked five smaller companies that beckon investors ‘attention.

What hike in natural gas price means for stakeholders

Will Air India disinvestment hit an air pocket after IndiGo pulls out of race?

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

Why is the Indian consumer durables space promising?

Notwithstanding some minor hurdles, the sector remains in a sweet spot and is undoubtedly worth banking on.

Logistics sector outlook: Long and exciting road ahead

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

Footwear companies Q3: Finding growth pathways amid challenges

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.

Auto March 2018 sales review – CV and tractors segment continues to zoom

Focus on rural economy in an election year and continued investment in infrastructure should boost CV and tractor segments going forward.

Aviation sector continues to navigate high

Though the engine problem of A320neo aircraft first surfaced in February, Indigo gained 20 bps in its market share over January

GSPL to acquire additional stake in Gujarat Gas – pain or gain?

GSPL has approved the purchase of another 28.4 per cent stake in Gujarat Gas from its parent company GSPC.

GAIL stake sale proposal is a win-win for all

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.

Battle for power: NTPC gearing up for acquisition of stressed power assets

Power is one big sector that started to panic as there is substantial stressed capacity in the sector.

Cement sector in tumult. Top bets where investors can find comfort

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.

Air India disinvestment: Relaxing net worth norm in search of a buyer

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.

Approval of urea subsidy with nationwide DBT rollout to benefit fertilizer sector

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.

Home Textile Companies Q3: We prefer Himatsingka Seide & Trident

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.

Upstream oil companies: Pricing momentum looks supportive, ONGC a better pick at current levels

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