Motilal Oswal

Articles By Motilal Oswal

316 Articles

Tata Motors Rating: Neutral; Miss for Jaguar Land Rover in August volumes

The comprehensively re-engineered Land Rover Discovery Sport will be launched in China later this year further solidifying its position as a best-selling model.

Tata Motors, Tata Motors ratings, Jaguar Land Rover, Jaguar volumes, Frankfurt Motor Show News

Motilal Oswal: PI Industries to derive synergies from Isagro Asia acquisition

The proposed transaction is expected to be completed in 3QFY20, subject to finalisation of definitive agreements, customary closing conditions and regulatory approvals.

Motilal Oswal, PI Industries, Isagro Asia acquisition, synergies, domestic formulation business News

Lemon Tree Hotels rating | Buy — Execution of strategy will be key

LEMONTRE had a debt of Rs 12.66 bn; of this, 55% can be attributed to adult hotels, which have the capability of generating enough cash to service the debt themselves.

Lemon Tree, Lemon Tree hotels, Lemon Tree hotels rating, investors news

Motilal Oswal: Maintain ‘buy’ on Trent; target price at Rs 515

Standalone revenue increased 23% to Rs 25.3 bn in FY19, primarily led by Westside (+18%) and Zudio (newly started fast fashion value format; +42% to Rs 2 bn).

Trent intends to raise Rs 15 bn to fund its growth plans, of which Rs 9.5 bn is already raised from Tata Sons News

MCX: Clarification on whistleblower allegations

Malpractice in cotton trade from November 2018 to June 2019 by two international customers, which delivered stock of sub-standard quality. MCX passed it off to investors who bought on the exchange platform.

Industry News

Dabur Rating: Neutral; Company to get back to Ayurveda roots

Execution of the strategy will be key; fair valuations, moderate growth prospects behind ‘Neutral’ rating.

DABUR is well poised to capitalise on these trends with its longer pedigree, better sourcing and access to a wider set of manuscripts unlike herbal peers News

Bajaj Finance: Maintain ‘Neutral’with TP of Rs 3,550

The share of new loans booked from consumer durables (CD) declined meaningfully from 71% in FY17 to 54% in FY19.

Bajaj Finance rating, Bajaj Finance profit, Bajaj Finance revenue, Bajaj Finance shares, Bajaj Finance stocks, Bajaj Finance loans, CD loan News

Motilal Oswal: ‘Buy’ on Bajaj Auto; exports register marginal growth

The company has reported improved walk-ins, inquiries and retail sales since the last week of Aug'19.

Bajaj Auto rating, Bajaj Auto profit, Bajaj Auto revenue, Bajaj Auto shares, Bajaj Auto stocks, Bajaj Auto production, auto slowdown, auto sector india, auto industry india News

Petronet LNG rating | Buy — Growth in demand augurs well

Higher utilisations likely to continue owing to steps to boost gas usage and weaker competition; ‘Buy’ retained

Petronet LNG, PLNG, domestic gas consumption, Brent, GERC, National Green Tribunal, Central Pollution Control Board, LNG gas News

Motilal Oswal: Realty sector bets on government steps to resolve problems

As far as the real estate sector is concerned, the FM had met key stakeholders such as developers, home buyers and lenders on 11th Aug’19. In this note, we highlight the key wish list put forth by the sector.

Motilal Oswal, Realty sector, Nirmala Sitharaman, Reserve Bank of India, Bimal Jalan Committee, Bimal Jalan Committee News

ICICI Bank Rating: Buy; Comfort in a difficult environment

Operating metrics are getting better steadily; core RoA/RoE expected to improve to 1.5/15.5% by FY21e; ‘Buy’ maintained

ICICI Bank Rating, NNPA, ICICIBC, CAGR, ICICIBC deposit growth, Corporate & SME News

Motilal Oswal: Page Ind’s topline growth target hard to achieve

The management is targeting 20% topline growth (led by 10% volume growth) for FY20. But, we believe this target is difficult to achieve, particularly as trade liquidity concerns have persisted for the first few months in FY20

Motilal Oswal, PAG, Page Ind topline growth, EBIDTA, exclusive brand outlet  News

Sun Pharma’s transactions evoke concern: Motilal Oswal

Contingent liability stood high at Rs 66.4 bn, 16% of NW due to income tax disputes (at Rs 58.9 bn).

Markets News

Analyst Corner: Maintain ‘neutral’ on P&G Hygiene and Healthcare

While the structural growth opportunity in the feminine hygiene segment (~70% of sales) remains very promising, valuations of 52.1x FY21E EPS do not leave much room for an upside. Maintain Neutral.

Markets News

Britania Industries Rating: Buy; Results were below expectations

Consolidated gross margin expanded 40bp y-o-y to 40.4%. Higher other expenses as percentage of sales (up 90bp y-o-y to 21.3%) and increase in staff costs as percentage of sales (up 20bp y-o-y to 4.5%), meant that Ebitda margi

Britania Industries, Britania Industrie limited, Britania Industries Rating, Britania Industries, market news, BRIT, Biscuits, Britania cake, Britania share, Britania rusk News

Analyst corner: FY 20/FY 21 EPS estimates reduced by 7-9 pct for Bosch

The company provided for expenses (~INR821m) towards restruct-uring, reskilling and redeployment in preparation for potential structural slowdown in the auto industry.

Bosch believes that the Indian auto industry is going through a paradigm shift News

Divi’s Lab’s: FY20/FY 21 earnings estimate lowered

Divi’s Labs is working on backward integration to ensure key starting material availability, the benefit of which would accrue from 2HFY20.

Nutraceutical sales came in at INR1b, growing at a moderate rate of 13% YoY for the quarter. (Representational Image) News

GSK consumer: Maintain ‘neutral’ with TP at Rs 7,670

Gross margin expanded 40 bps y-o-y to 70%, while EBITDA margin was up 270 bps y-o-y to 23.5% (against estimate of 20.3%). Volume growth for 1QFY20 was broad-based; domestic volume growth for both Horlicks/Boost stood at 4% ag

market news, buy shares, buy stocks, Volume market share, HFD, GSKC, GSKC shares, GSKC stocks News

Bajaj Finance Rating: Neutral; Strong AUM growth drove quarter results

Outlook is bright though asset quality issues in some products might slow loan growth; ‘Neutral’ retained.

Markets News

Dabur rating: Neutral; First quarter results were ahead of expectations

Guidance for year has been cautious; FY20/21e EPS up 1/0.4%; valuations are fair; ‘Neutral’ maintained

Dabur rating, domestic FMCG business, Dabur volume growth, Ebitda margins, CAGR, rural growth News

Tata Chemicals: India business delivered revenue growth

Tata Chemicals Magadi (TCML) revenue was down 4% to $73.8 million on account of a 15% decline in volume, partly offset by a 13% improvement in realisation.

Tata Chemical, India, business, revenue growth, Tata Chemicals Magadi, TCML, market news, Tata Chemicals North America, TCNA News

ICICI Prudential Life: Maintain ‘buy’ with TP of Rs 475

During FY19, ULIP APE fell 2.7% y-o-y v/s an average 18% growth over FY17-19. Protection business, though, has grown at 62% y-o-y and its share in the total APE improved to 9.3%.

ICICI Prudential Life, buy, Markets, Markets news, IPru Life, APE growth, share market news

Stock corner: ‘Buy’ Shriram Transport Finance, company saw momentum loss in FY19

After nearly doubling in FY18, slippages were largely stable YoY at Rs 66 bn in FY19. However, there has been a sharp increase in bad debt write-offs in FY19 – up 60% YoY to Rs 23.4 bn.

Shriram Transport Finance, momentum loss, NCD, ECB, market news, IGAAP, SHTF, AUM  News

Delta Corp Rating | Buy — Flat showing in Q1 but the ship is stable

Consequently, revenue growth is likely to bounce back from Q2FY20, and we estimate 18% growth in the Casino biz in 9MFY20.

Casino business incurred a loss due to maintenance work, and thus, the muted growth therein is not very significant. News

Titan: Maintain ‘buy’ with a target price of Rs 1,500

However, gold prices increased toward the second half, which, in our view, led to demand postponement, impacting segmental growth for the quarter.

In fact, the first half of the quarter was good in terms of sales, with 19% y-o-y growth till 7th May’19 (as mentioned in Q4FY19 earnings call). News

Marico: ‘Buy’, TP at rs 435; growth momentum remains strong

Management had stated in its previous quarterly results conference call that new products are likely to double as a percentage of sales over the next two years.

Markets News

Analyst corner: ‘Neutral’ on Bajaj Auto over expected BS VI turbulence

The company believes the domestic market will get more competitive across various segments, as it expects segmental quasi-monopolistic control to end.

Bajaj Auto, BS VI turbulence, Bajaj Auto annual report, key export markets, market news