Motilal Oswal

Articles By Motilal Oswal

329 Articles

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

Analyst corner: Asian Paints’ FY19 report shows pressure on RoCE

The rise in working capital led to a decline in earnings-to-cash flow conversion to 89% in FY19 from 99% in the previous year and kept OCF modest at Rs 2,210 crore (FY18: Rs 2,110 crore).

Analyst corner, Asian Paints, Asian Paints report, RoCE, market news

Axis Bank Rating | Buy — Execution of strategy will be vital to earnings

Digital initiatives at the bank are gaining traction, with 43% of its personal loans sourced digitally versus 22% in FY18.

Axis Bank, Axis Bank rating, axis bank annual report, earnings metrics, market news

ITC Rating: Uncertainty over earnings a dampener

Cigarette Ebit growth is a cause for concern given 23 months have passed since GST hike; ‘Neutral’ retained with TP of Rs 310

itc, itc rating News

Analyst corner | Demand fundamentals for natural gas favourable

Global gas demand is expected to gr-ow at a rate of 1.6% a year until 2024.

natural gas News

SH Kelkar rating | Buy — Recovery is expected to be gradual

PAT estimates down 16%; ‘Buy’ rating reinstated with target price of Rs 169.

Markets News

Analyst Corner: Maintain ‘neutral’ on GCPL, strong revival to take time

Balance sheet performance has been fairly good in recent years, particularly on the cash conversion cycle front, which declined from 47 days to 14 days in the past three years (on average basis) and from 60 days to 11 days on

Markets News

Maintain ‘buy’ on HUL, target price Rs 2,070

With a contribution of 44%/47%/38% of incremental sales in FY17/18/19, Detergents continues playing a key role in driving HUVR’s overall growth (based onForm No. MGT-9 in the annual report).

Maintain ‘buy’ on HUL, target price Rs 2,070 News

Stock corner: ‘Neutral’ on HCL Technologies, a miss on margins even as revenue was strong

FY20e EPS down 4.4% due to lower margin guidance and extra costs; ‘Neutral’ retained with TP of Rs 1,200

Stock corner: 'Neutral' on HCL Technologies, a miss on margins even as revenue was strong News

Stock corner: Maintain ‘buy’ on Prism Johnson with a target price of Rs 104

Q4FY19 revenue increased 4% y-o-y (+17% q-o-q) to Rs 16.8b (v/s est. of Rs 16.5b). Cement volumes stood at 1.75mt (+5% y-o-y) implying 100% utilisation, while cement realisations increased 0.5% y-o-y, led by stronger prices i

Markets News

Bharti Airtel Rating: Buy; results bucked downtrend of last several quarters

India wireless business made a strong comeback; outlook is favourable given multiple levers; ‘Buy’ retained with TP of Rs 410.

Markets News

Stock corner: ‘Neutral on Kotak Mahindra Bank, stable showing across businesses in Q4

SA deposits continued growing strongly by 22% y-o-y (SA cost of 5.66%). Core deposit mix (CASA + TD < Rs 50 m) stood at 81% of total deposits. CASA mix improved to 52.5% (+180bp q-o-q) . 

Kotak Mahindra bank, कोटक महिंद्रा बैंक, Kotak Bank Q4, Kotak Mahindra Bank Profit, Kotak Bank NPA, Provisioning News

HDFC Life Rating | Buy — Performance in the quarter was stable

For FY19, total premium/PAT grew 23.8/13.1% y-o-y to Rs 289/12.5 bn. For FY19, the share of the protection business increased to 16.7% of total APE (7% on an individual APE basis).

Markets News

Stock corner: ‘Buy’ on HDFC Life; return ratios to remain strong

We expect return ratios to remain strong on healthy new business margins, quality underwriting, and strong cost control.

Markets News

Stock corner: ‘Buy’ on IPCA Laboratories; price target at Rs 1,145

The share of the Pain segment within DF has increased from 30% in FY12 to 45% at end-M9FY19.

ipca, ipca laboratories, motilal iswal News