E-com to be next growth driver for Indian FMCG: Rising middle class population, lack of strong distribution network in smaller cities/villages and significantly overcrowded condition of cities is resulting in the ever-increas
Q2FY20 standalone and consolidated EPS is down 83-93% YoY hit by inventory loss of Rs 11.8 bn compared to a gain of Rs 44.1 bn last year, 50% YoY fall in petrochemical Ebitda and 81% YoY fall in GRM to $1.28/bbl.
The stock is currently trading at 6.9x FY21e earnings, which we believe, is an attractive valuation considering the improving mix of non-cyclical business, expected increase in cashflow and consequent reduction in debt givin
The company has demonstrated very effective cost control with 250bps margin expansion in FY19 and our estimates assume additional benefit of ~100bps base business margin expansion from the ongoing efforts.
Considering the quantum of amount notified, the ADD would make the Chinese and Korean imports (constituting 30% of India’s overall imports of CPVC resin/ compound) non-competitive vs their major global (particularly US and
Further, with the expected growth traction in decorative veneers, PVC sheets and low-end plywood segment (under brands ‘Jan Saathi’ and ‘Bharosa’), the management has guided for 7-9%/8-10% growth in volume/value in it