Friday, 20 April 2018

20 April 2018 - Views & News


Business Standard

TCS Q4 profit rises 4.5%; approves 1:1 bonus issue
WhatsApp leaks case: Sebi scanning Facebook ‘likes’
NCLT rules 2nd round of bids for Essar Steel invalid
Fortis board to form committee to evaluate bids 
RIL-BP sanction satellite gas field in KG-D6
Blockchain all set to revolutionise shipping industry
Withdraw up to Rs 2,000 via PoS free of charge: SBI
CCI slaps Rs 215 cr fine on Eveready, Indo National
IMF lauds India for 'right policies' to lower debt, bats for transparency
Oil soars to 3-yr high as Saudi withholds supply, seeking $80-100 a barrel
As part of $4.2-bn global deal, P&G to acquire Merck India for Rs 12.9 bn
HDFC life Q4 PAT up 24% at Rs 11 billion in FY18; total premiums rise 21%
IndusInd Q4 net up 26% at Rs 9.5 bn; divergence seen with RBI on NPA data
Some MPC members doubt if growth would be sustainable: RBI minutes


Net interest income boosts IndusInd Bank net profit up 27%
Group of shareholders seek removal of 4 directors: Fortis
Godrej Security eyes 20% growth in home safes biz
Metal stocks drive Sensex up 96 points; Tata Steel soars 3.2%, YES Bank 2.83%
Rupee dips to 65.80 on dollar demand, rising crude oil prices
Metal stocks shine as LME aluminium hits near 7-year high
RCom tower, fibre assets sale plan suffers setback
 Warburg set to exit Avtec, sell 30% stake to CK Birla Group
No relaxation in new bad loan rules, indicates RBI
‘Government’s fighter jet tenders may be worth Rs1 trillion’
SSG Capital buys 47% stake in Shapoorji Pallonji Finance
RBI minutes: Urjit Patel in favour of more data before changing policy stance
US may reject India’s plea to join China in tariff dispute
NCLT directs Essar Steel lenders to consider Numetal, ArcelorMittal bids

Financial Chronicle

'Jio-fication' propels Mukesh Ambani to World's Greatest Leaders List
Group of Ministers proposes ‘One Nation One Tax’ for commercial vehicles
RBI to recoup forex reserves despite being put on US watch list, says report
India to invest more than 1 billion pound in UK
MSME ministry to hold global SME convention this month
SC allows Sahara to sell properties in Aamby Valley by May 15
FTTL raises 2nd tranche of funds
India leads South Asia in occupational frauds
Defence stocks start rising after Expo boost
Base metals surge on fears of supply disruptions


Banking Sector: In the minutes of the 10th Monetary Policy Committee (MPC) meeting, RBI Deputy Governor Viral Acharya has said he is likely to shift decisively to vote for a beginning of “withdrawal of accommodation” in the next MPC meet on June 5 and 6, 2018. – Sentimentally Negative as this may indicate tightening bias in RBI’s stance going forward

Fortis: Fortis Healthcare approves evaluation of binding offers; will have advisory panel to assess rival offers on April 25, 2018 – Stock to remain in focus.

JB Chemicals: Company gets orders from pollution control board directing closure of formulation unit at Daman – Negative for JB Chemicals

Lasa supergenerics: Company gets WHO-GMP certificate for unit situated at Mahad – Positive for Lasa.

JSW Steel: As per media reports, The National Company Law Tribunal (NCLT)  has ruled second round of bids for Essar Steel invalid. Since JSW Steel had submitted its bid along with Numetal Steel in second round of bidding, the same would be considered invalid; negative  

L&T: Schneider-Temasek may announce a deal to buy L&T’s electric & automation business …..(Details in other news)

Eveready: CCI orders to pay company Rs 171.55 crore in fine for cartelisation of Zinc carbon dry batteries, negative read-thru


ICICI Bank: The bank’s board is looking at the option of reviving the positions of Joint Managing Director / Deputy Managing Director, who could step into the shoes of the Managing Director & CEO as and when a vacancy arises. - Neutral read thru. The move becomes significant  post allegations on the top management. Also, recently some of the investors and board directors have informally have had discussions over Questions around a succession plan at ICICI Bank

UltraTech Cement: Is willing to pay Rs7,960 crore for Binani Cement if the tribunal orders liquidation of the company and would further raise its bid by Rs500 crore if any other bidder matches its offer of Rs7960 crore for Binani Cement as per media reports - Negative for Ultratech Cement as any upward revision in offer would increase its acquisition cost for Binani Cement.

TVS Motor Co: has launched the electric start version of its moped – XL100 priced at Rs 36,109 – Positive read thru.
TVS Motor Company, has launched TVS XL100 Heavy Duty ‘i-Touch Start’ with the electric start technology ‘i-Touch Start’, which has an integrated starter generator system.The mo ped has a wide platform and is equipped with a detachable rear seat. It also features striking graphics, attractive LED Daytime Running Lamps (DRL), sports a vibrant “Heavy Duty” logo with USB charger and is available in Green, Red, T. Grey, Black, Blue and Copper Shine and Mineral Purple color options. The moped is priced at Rs 36,109 (Ex showroom Delhi)

L&T: Schneider-Temasek may announce a deal to buy L&T’s electric & automation business
As per media reports, Schneider Electric and Temasek Holdings has resumed negotiations to acquire Larsen & Toubro’s electrical and automation business. L&T Electrical & Automation is expected to be valued between Rs 13,000 crore to Rs 15,000 crore, which is lower than the earlier estimate. L&T has already identified the electrical &automation unit as non-core to divest it.

Maruti Suzuki: Unveils refreshed Ertiga MPV at Indonesia Motors show; India launch likely soon; positive read thru
Suzuki Motor Corp has revealed the new Suzuki Ertiga at the Indonesia Motor Show. The 2018 Suzuki Ertiga is underpinned by the same Heartect platform that is also used by the Maruti Suzuki Swift and Baleno. The new Ertiga has been given a slightly butch appeal to give it an SUV look but then maintains the utilitarian approach that retains the MPV in it. The MPV is longer at 4,395 mm, it is 1,735 mm wide, has 2,740 mm of wheelbase and the height has been dropped at 1,690 mm. The new Ertiga gets a wider cabin and will get an engine start/stop button, chrome door handles and a floating roof look. At the back, it gets LED tail lamps and parking sensors. T he Ertiga sports a new 1.5-litre petrol engine with output about 104 bhp and 138 Nm, which is a step up from the 1.4-litre K-Series engine 94 Bhp and 130 Nm outputs on the current Ertiga. Like the petrol version, the diesel model is also likely to get an all-new engine, this time a 1.5 litre-4 cylinder unit developed in-house by Suzuki.

Idea: Aditya Birla Group plans to sell 15-20% in Idea Payments Bank, stock to be in focus
As per media reports, Aditya Birla Group will sell a minority stake of anywhere between 15% and 20% in its Idea Payments Bank to raise about Rs 200 crore, seeking a valuation of Rs 1,000 crore for the two-month-old venture. The payments bank, in which group companies Idea Cellular and Aditya Birla Nuvo own 51% and 49%, respectively, will use the money to expand its operations. 

Thursday, 19 April 2018

19 April 2018 - Views & News


Business Standard

Saudi Arabia seeks crude oil as high as $100/barrel
Mounting global debt a risk to world economy: IMF
RBI directs Mumbai bank to restrict withdrawals
Cash crunch pushes India to defend its scam-hit banks
Post-Brexit UK just as important to India, says Modi
'Room for improvement on visas in post-Brexit deal'
Mindtree Q4 profit jumps 29% QoQ; beats estimates
SBI India's most trusted bank, ICICI tops in private sector: Report
Maruti Suzuki attains leadership in UV segment with 27.53% market share
NCLAT recalls order that allowed sale of RCom's tower and fiber assets
EPFO members to get option to hike investments in ETFs by this fiscal
Rel Jio tops 4G availability, Airtel scores best speed: Report


CBI arrests Diamond Power promoters in Rs 2,654 cr bank fraud
UIDAI brings updated QR code for offline Aadhaar verification
RBI cautions banks on risks in retail loans
GMR Hyderabad airport cargo gets WHO certification
China’s Fosun is the 4th contender for Fortis hospitals biz with $350-mn proposal
Oil India commissions 52.5-MW wind energy project
Sebi bans Mark Builders, directors from market
ICICI Bank Videocon loan case: CBI quizzes NuPower Renewables CFO
Ashok Leyland plans to redesign LCVs to target e-commerce industry
Glaxo, Novartis join Bill Gates led push to fight drug-resistant malaria
Statoil eyes partnership with ONGC to re-enter India’s hydrocarbon space
NSEL case: 63 Moons’ stand sought on govt objection to de-freezing accounts

Financial Chronicle

Trade war could harm global economy: IMF
India must fully implement GST to avoid tax revenue underperformance: IMF
Uber says peak traffic hours in four Indian cities costing $22 billion a year
New NPA resolution norms outcome oriented, flexible: RBI
SBI pegs cash shortfall at Rs 70,000 crore
Govt seeks power to attach assets in $2b PNB scam
Tata Sponge net sees 2-fold rise
Ashok Leyland expects Rs 5,000cr from defence orders
Amtek sells SMI JV stake to Nippon & Sumitomo


Ashok Leyland: plans Rs 1,000 crore capex (highest in recent years) to ramp up capacity and lines up 20 new launches in FY2019; expects close to double digit growth for MHCV industry over the next 3 years  – Positive…..(details in other news)

ACC: reported 15.9% YoY growth in standalone net profit led by healthy volume growth (up 7.7% YoY) and higher realization (up 6.5% YoY). Positive for ACC…(details in Investment calls)

TVS Motors: BMW has commenced the bookings of its two motorcycles – G310R and G310 GS for its existing customers in India at a token amount of Rs 50,000. Deliveries are likely to commence after July 2018. Both the motorcycles are being built at TVS Motors plant at Hosur. Positive

Aviation: Domestic airlines posted a 28% YoY growth in passengers flown during March 2018 to 11.6 million passengers. IndiGo remained the market leader in terms of passenger carriage by flying 39.5% of the total passengers, followed by Jet Airways carrying 16.6%. SpiceJet maintained its pole position in terms of load factor with 95% occupancy, followed by IndiGo with 89%. Positive read thru for aviation sector for stocks like InterGlobe aviation, Spicejet, Jet airways (India).

Fortis: Radiant Lifecare, Mumbai-based hospital chain backed by buyout firm KKR, is set to submit its bid for Fortis Healthcare. A new twist has been added to the battle for takeover of Fortis Healthcare with the minority shareholders pressing for convening of an extra-ordinary general body meeting  for appointment of 3 independent directors and removal 4 directors – Stock to remain in focus.

NMDC: cut prices of lump ore and fines by Rs 100 each to Rs 2,900 per tonne and Rs 2,560 per tonne with effect from April 18. Negative read thru for NMDC

Parag Milk: acquires Danone Food’s manufacturing facility in Haryana - Positive
Parag Milk has acquired Danone Foods and Beverages India Pvt Ltd.’s manufacturing facility of Curd, Yogurt and other related products at Rai, Sonipat, Haryana. This acquisition would help expand the company’s footprints in North India and strengthen company’s fresh category distribution of Milk, Flavoured Milk, Buttermilk, Curd, Fresh Paneer and Yogurt in this region.

Mishra Dhatu Nigam: signs two contracts in DefExpo India 2018 – positive for the stock


Ashok Leyland: plans Rs 1,000 crore capex (highest in recent years) to ramp up capacity and lines up 20 new launches in FY2019; expects close to double digit growth for MHCV industry over the next 3 years  – Positive.
Ashok Leyland (ALL) has plans to ramp up its capacity with an investment of Rs 1,000 crore and launch 20 new vehicles in FY2019. The capex is the highest in the recent years. Further the company expects the truck industry to grow by higher single digit or even a double-digit for the next 2-3 years on the back of GST, pre-buying due to Euro-VI emission norms and followed by new scrappage policy implementation, which is expected to throw an additional opportunity of 700,000 new vehicles.

Bajaj Auto: launches at upgraded version of the Pulsar 150 priced at Rs 78,016 with cosmetic changes, wider rear tyres and improved suspension – Positive read thru.
Bajaj auto has launched - Bajaj Pulsar 150 twin disc, an upgraded version of the existing Pulsar 150. The new Bajaj Pulsar 150 twin disc version comes with a wider tyre at the back, bigger front disc and the front forks have been updated as well, along with some other changes. Also Bajaj claims that the new Pulsar 150 will also offer a smoother ride through improvements in noise, vibration, and harshness. The twin-disc Bajaj Pulsar will be sold alongside the existing single disc variant and has been priced at a premium of Rs 4390 bringing its ex-showroom retail price at Rs 78,016

Lemon Tree Hotels: signs three management contract for a hotel each in Rishikesh, Neelkanth and Mussoorie – positive read through for the stock

Jain Irrigation : The board has approved the plan to raise Rs 260 crore loan from World Bank arm – Neutral for the stock

Container Corporation of India may consider stock split on April 30 board meeting.

GE Shipping takes delivery of secondhand very large gas carrier of about 81,617 cbm; company has also committed to purchase one second-hand medium gas carrier. Positive read thru for GE shipping.

Oil marketing companies (OMCs): Reliance Industries and Essar Oil plans to add 2,500 retail auto fuel stations (1,000 fuel stations by RIL and 1,500 by Essar Oil) over next two years as per media reports. We highlight here that private fuel retailers currently holds 9% market share in the India’s total auto fuel retail fuel stations of ~60,575 - the addition of new fuel stations could further increase competition in the auto fuel marketing business and likely impact market share of PSU OMCs (IOCL, BPCL and HPCL).

Oil & Gas: As per introduction of new clause in the production sharing contracts (PSC) for oil & exploration, the government wants to retain its share of profit petroleum irrespective of the investment multiple (the basis of sharing revenues from oil and gas blocks between the operators and the government) as per media reports. This is negative for Reliance Industries and Vedanta Limited (given its exposure to oil & gas sector through Cairn India Limited). We have already highlighted the above news in our FNA dated April 16, 2018.

Infibeam: gets online marketplace contract from NSDC – positive read-thru
Infibeam has been awarded the contract for providing online marketplace for skilling resources from National Skill Development Corporation (NSDC). This online marketplace will facilitate the availability of skilling from different providers to skill seekers and training providers thereby bringing demand and supply side of skill resources on the same platform.

Bharti Airtel: Bharti Airtel announces 30GB free data for users upgrading to 4G – positive read-thru, this would attract customers to switch to 4G networks

Bharat Dynamics: signs licensing agreement with DRDO for Astra MK-1 Weapon System –positive read-thru

Hero Motocorp: launches an e-commerce portal to retail Hero Genuine Parts and Accessories – Positive read thru.
Hero Motocorp has launched an e-commerce portal to retail Hero Genuine Parts and Accessories. The portal will enable customers to purchase Hero Genuine Parts and Hero Genuine Accessories directly from the company. Through this initiative Hero MotoCorp plans to tap its client base across the country efficiently.  The company will use a hub and spoke model to ensure timely deliveries to customers.

Wednesday, 18 April 2018

18 April 2018 - Views & News


Business Standard

China’s Fosun emerges as the 4th contender for cash-strapped Fortis
RBI Governor called by parliamentary panel on May 17
1.55L post offices to be empowered as Payments Banks
RBI ramps up printing of currency notes 
India to grow at 7.4 per cent in 2018: IMF
Swedish cos to invest 1.1 billion dollars in India
Rupee tanks to near 7-mth low of 65.64 a dollar
NCLT approves Vedanta's resolution plan for insolvent Electrosteel
IMF sees world economy weaker post-2020, lifts US estimate to 2.9%
Rs 29-bn Rotomac case: CBI questions former Bank of Baroda CMD, 5 others
Bharat-22 ETF follow-on offer could be worth Rs 100 bn: Finance Minnistry
Higher tariffs could harm market sentiment, disrupt supply chains: IMF


GST to cut construction costs, not housing prices: report
 India, US announce joint task force on natural gas
Crisil Q1 net jumps 14% on cost-control, better margins
Indian Hotels enters Saudi with first Taj hotel in Makkah
Marico to acquire up to 22.5% in Revolutionary Fitness
NHPC’s 50 MW solar project synced with grid
Aditya Birla Group in talks to raise $1 billion for Idea Cellular
Kedaara Capital may buy Munjals’ Sunbeam Auto for Rs650 crore
Mahindra & Mahindra joins Rs1 trillion market cap club
Crypto-exchange CoinRecoil challenges RBI order on cryptocurrency in Delhi HC
Deutsche Bank said to shelve $4.6 billion India portfolio sale

Financial Chronicle

Indian investment proposals in France jump 73% in 2017
Six more states to launch intra-state E-way bill from April 20
Cash crunch: RBI clarifies sufficient cash in currency chests, printing of notes ramped up too
Glenmark Pharma to begin phase 2b clinical trial of atopic dermatitis drug
Government contemplating industrial health clinics for sick MSMEs
Govt raises FY19 highway project award target to 20,000 km: Gadkari
MFs get over Rs 67K cr from SIPs in FY18
IPO-bound HDFC AMC posts 31% rise in FY18 profit
CBI files Rs 621cr Punjab & Sindh Bank fraud case


Road Sector: The road ministry has raised the daily target for constructing national highways to 45km a day for FY2019 from 27km achieved in FY2018 as per media reports. The target for awarding contracts had been fixed at 20,000km, almost 3000km more than what the ministry awarded in FY2018. The ministry’s total capacity expansion programme will entail an investment of nearly Rs2 lakh crore, up from Rs1.2 lakh crore spent in FY2018. Positive read thru for stocks like IRB Infrastructure, Sadbhav Engineering, KNR Constructions, Ashoka Buildcon, Dilip Buildcon, gayatri projects among others.

Building materials: E-way bills to be implemented in six more states from 20th April 2018 - Positive for stocks like Century Plyboards, Kajaria Ceramics, Greenply Industries, Cera Sanitaryware among others.
E-way bills will be mandatory for intra-state trade in respect of six more states (Bihar, Jharkhand, Haryana, M.P., Tripura and Uttarakhand) from 20th April 2018. E-way bill was first implemented in six states (A.P., Gujarat, Kerala, Telanga and U.P.) from 15th April. Positive for stocks like Century Plyboards, Kajaria Ceramics, Greenply Industries, Cera Sanitaryware among others.

IRB Infrastructure: receives a copy of the Closure report filed by the CBI before the Session Court Pune after conducting further investigation in the matter pertaining to the murder of the RTI activist in Maharashtra, India. The report once again clearly exonerates the Company officials from any involvement in the matter. Positive for IRB Infrastructure

Lupin Ltd: Lupin received tentative approval for its Testosterone Gel from US FDA to market generic version of AbbVie Inc.'s AndraGel. It had annual sales of approximate USD 956.9 million in the US (IQVIA MAT January 2018) - Positive for stock


Gujarat Gas Limited (GGAS): Has increased retail price of CNG by Rs2.15/kg to Rs49.65/kg and price of domestic PNG by Rs1.1/scm to Rs21.95/scm with effect from 18-April-2018 due to recent increase in the domestic natural gas prices – although there has been some delay in increasing the CNG and domestic PNG prices but the price hike would help GGAS to maintain its gross margins in H1FY2019 – positive read through for GGAS. 

TCS: TCS opens North America insurance hub in Iowa – positive read-thru, it would help TCS to focus on localization strategy in the USA
TCS opened a North America insurance hub in Iowa after it took over 800 employees as part of its $2.5 billion deal with Transamerica. The insurance hub is based in Cedar Rapids and TCS has become one of the largest employers in the city.

The Indian Hotels Company Limited (IHCL) - Launched its first Taj property in Saudi Arabia in the city of Makkah. IHCL has partnered with Umm Al Qura Development and Construction Company. The proposed hotel is situated within walking distance of the Grand Mosque, the attraction for over 6 million pilgrims who visit the city each year. The hotel, scheduled to open in January 2023, will have approximately 340 keys. This hotel will be IHCL’s fourth venture in the MENA region. The company manages Taj Dubai located in the Burj Khalifa downtown area. It will also open another two hotels in Dubai in the next twelve to eighteen months - positive read through for IHCL.

Future Consumer: It has increased its stake in Integrated Food Park Pvt. Ltd. (IFPPL) to 99.93% by buying the stake from Capital Foods Pvt. Ltd. IFPPL is a PPP project, which has been approved by the Ministry of Food Processing Industry to set up a mega food park in Karnataka – positive read through

Jagran Prakashan: to consider share buyback on April 27

Tata Motors: has launched the Automatic transmission in SUV- Nexon with a 6 speed AMT gearbox. As of now the AMT is available in the top variant – XZA+ for both the petrol and diesel vehicles. The AMT version also gets a new color scheme and is likely to be dearer by Rs 40,000 against the manual transmission version. Positive read thru

Indian Oil Corporation (IOCL): Targets to start its new 0.7mtpa polypropylene unit in Paradip by June-2018 and expects to start commercial production by December-2018 as the new unit would require some time to stablise post commissioning. We have already highlighted the above news in our FNA dated March 20, 2018. 

Tuesday, 17 April 2018

17 April 2018 - Views & News


Business Standard

India must create 8.1 mn jobs annually: World Bank
SC stays NCLAT order allowing RCom to sell towers 
'Russia, China playing currency devaluation game'
US bans American cos from selling to China's ZTE
France builds WhatsApp rival due to surveillance risk
Fortis shareholders need objective advice: IiAS
Infosys, Amazon rediscover radio to connect with staff
SC asks Jaiprakash Associates to deposit Rs 1 bn by May 10
Loan sale-down activity by banks, NBFCs shrinks by 7% in FY18
Investment projects worth Rs 550 billion to be rolled out in April: Yogi
NCLT lets insolvency proceedings against debt-ridden Essar Power Jharkhand
Three oil PSU cos to distribute 70,000 LPG connections in Gujarat on Apr 20


RBI bad loan norms take a toll on NBFCs
IMD predicts average monsoon rains in 2018
India to launch natural gas trading hub by October
WPI inflation eases marginally to 2.47% in March
Fortis expresses ‘inability to engage’ in deal due to binding agreements: IHH Healthcare
Suzlon retains market leadership as industry transitions
Uttam Galva offers to repay all its debt to banks
Reliance Jio sees wired broadband internet as the next battleground
Kotak Mahindra Bank pips SBI to become India’s second most valuable bank
Jaguar Land Rover to cut 1,000 UK jobs amid slumping sales
LIC profit booking rises to record Rs25,000 crore in FY18
JCB India revenue rises to Rs8,100 crore in 2017

Financial Chronicle

World Bank, IFC to host venture capitalists roundtable in Goa in June, says Suresh Prabhu
China remains largest developing country, says economist Wang Yuanhong
RBI may give freer rein to Rupee as US puts India on monitoring list for currency manipulation
RBI ban on Letters of Undertaking: Switch to local credit may squeeze liquidity
MFs get over Rs 67K cr from SIPs in FY18
Germany backs India’s inclusion in NSG
Trai unveils beta site for comparison of telcos’ tariffs
NPA resolution may get 180 days more
Panel to meet businesses, experts today on GST return simplification
Govt to launch gas trading hub by Oct


ALERT - Monsoon: Indian Metrological Department predicts 3rd consecutive year of normal monsoon standing at 97% of LPA; 3rd consecutive year of normal monsoon will further boost the rural economy – sentimentally positive for rural centric FMCG companies (such as HUL, Emami, Dabur India and Godrej Consumer products), agri input companies (such as PI Industries, UPL, Kaveri Seeds and Godrej Agrovet), rural focus auto companies (like M&M, Hero Motocorp and Escorts) and non-banking financial institutions (such as ShriRam Transport and Mahindra & Mahindra financial services)

Bajaj Electrical: has bagged orders worth ~ Rs 3,580 crores for 10 rural/urban electrification projects in UP -  Positive..(details in other news)

Federal Moghul Goetze India: Tenneco inc would be making an open offer to acquire 13.9 mn equity shares of the company representing around 25.02% of the fully diluted equity share capital. The open offer price is fixed at Rs 400, which is at substantial discount of ~ 15% (CMP as of compared to yesterday’s closing price of Rs 472). Negative.


Reliance Industries (RIL): Reliance JIO, subsidiary of RIL, is expected to launch JioHome TV with monthly offer of Rs200 for Standard Definition (SD) channels and Rs400 for SD and HD (High Definition) channels as per media reports. This is believed to be Jio's latest technology based on Enhanced Multimedia Broadcast Multicast Service (eMBMS) and is not the yet-to-be-launched Jio DTH service – positive read through for RIL.

Sobha Ltd: The company will make an investment of over Rs500 crore towards residential development in Gujarat International Finance Tec-City (GIFT City). With a total built up area of 1.3 million square feet, Sobha will develop close to 1000 housing units. Positive read thru for the stock.

Bhel: secured order worth Rs137 crore for renovation and modernization of electrostatic precipitators (esp) in telangana for NTPC. Positive

Bajaj Electrical: has bagged orders worth ~ Rs 3,580 crores for 10 rural/urban electrification projects in UP -  Positive
Bajaj Electricals’ engineering and projects division has bagged orders worth ~ Rs 3,580 crores for 10 rural/urban electrification projects in UP under the Saubhagya Yojna of GOI.

Oil & Gas: Petroleum and Natural Gas Regulatory Board (PNGRB) to hire consultant for preparing regulatory framework to develop and start gas trading hub or exchange in India. The consultant is expected to submit final report within 18 weeks. The gas trading hub will facilitate natural gas trading and supply through market based mechanism – development of gas trading hub would be positive for city gas distribution companies (Indraprastha Gas Ltd, Gujarat Gas and Mahanagar Gas Ltd) as the gas pricing would be market determined based on demand and supply fundamentals. 

Arvind - GAP has rolled out a range of ‘make for India’ products customised for the Indian shoppers in terms of fitting, colour and design. The brand is also rolling out two new smaller-size formats - one dedicated to adult fashion and another for kids. GAP has set up two adult only stores, one each in Bengaluru and Kolkata while the GAP kids exclusive store will come up this year – positive read through for Arvind as GAP is one of the emerging brands in its kitty and as per the management’s strategy, it expects 70-80% of GAP’s domestic sales to come through indigenous production in India, which would be beneficial for the brand’s profitability.

Maruti Suzuki: To launch facelifted and a seven seater version of Wagon R hatchback in November 2018; positive  
Maruti is likely to launch the new 2018 Maruti WagonR in November as per media sources. The hatchback will have new features and design, and will be expensive than the current model. The refreshed WagonR will get a new headlamp section and the tail lamp will also be revised in order to make it look significantly different than the regular model. The new WagonR is also expected to come with the same touchscreen infotainment system that comes on the new Maruti Dzire. It will also be launched in a seven-seater version and will be based on the Suzuki Solio platform that is already on sale in the global markets. The seven-seater model has been snapped with a thick chrome section at the rear that gives it a more upmarket and premium appeal. 

M&M, Tata Motors: Cab aggregator OLA aims to put 10,000 electric vehicles and e-rickshaw on road by 2019 (over the next 12 months). This is positive for e vehicle makers – M&M and Tata Motors amongst other players.

M&M: Keen to give cult status to Thar SUV eyeing next-gen roamers; likely to strengthen sales
Mahindra & Mahindra is keen on growing its Thar SUV as some kind of a cult brand within its product portfolio. The Thar being a niche product, the monthly numbers are in the region of 700 units, but this is a buyer segment that is growing. As per M&M, these customers need to be treated differently since they are unconventional in their thinking and pretty much like their own space. M&M believes the Thar community can be grown and expanded in such a way that it represents a certain heritage (same as Royal Enfield and Harley Davidson fan community). M&M may toy with the idea of ‘Thar Clubs’ and the like where drivers meet and take off on long weekend drives.

Reliance Communications (RCOM): No legal restriction any more to proceed with sale of spectrum, MCNs & real estate – stock to remain in focus
Based on legal advise, RCOM believes the claim of minority investors in the tower and fiber proceeds, which is fully disputed by RCOM, can at best be Rs. 200 - 300 crore. RCOM remains confident of completion of its asset monetisation programme of approx. Rs. 25,000 crore within the next few weeks.

HDFC: AMC unit’s FY18 total revenue up 18% YoY to Rs 1,867 crore while the net profit is up by 31% to Rs 721 crore – Neutral Read thru 

Monday, 16 April 2018

16 April 2018 - Views & News


Business Standard

'Chinese investment risks Pak running into debt trap'
Auditor BDO flags rule violations in Educomp deals
ICICI Lombard frontrunner for Star Health
Saudi against US plan to transfer embassy to Jerusalem
Banks' NPAs to rise by Rs 8,000 crore in Q4 
Tata Steel India posts highest output at 12.48 MT
Eight of top 10 firms add Rs 83,672 crore to m-cap
Govt raises Nabard's authorised capital to Rs 300 bn to aid rural economy
PNB scam: ICAI sends notices to statutory auditors of Brady House branch
NITI Aayog VC says India will not take sides in US-China trade spat
India to work with China against OPEC's 'Asian Premium': Pradhan
Lakshadeep emerges front-runner for Jaypee Infratech with Rs 73.5-bn bid
Business as usual: RBI crackdown fails to deter bitcoin traders


Maruti hits top gear, gaining more of passenger car market share in 2017-18
CBIC details procedures on e-way bill verification, inspection of goods
French defence major Thales sees India as manufacturing, export hub
Balmer Lawrie looking at organic growth across businesses
RIL, JM Financial bid to acquire Alok Industries rejected
I-T dept seizes Rs 440 cr dividend income of Cairn Energy
RBI scrutiny in 2016 found no ‘quid pro quo’ in ICICI Bank loans to Videocon
Embassy to invest $1 billion on warehousing space, says CEO
IDBI Bank prepares roadmap for NPA reduction, improving financial health
Facebook doesn’t use WhatsApp payments data for commercial purposes: WhatsApp
Blackstone’s new $4 billion fund gives India top billing

Financial Chronicle

RBI ban on Letters of Undertaking: Switch to local credit may squeeze liquidity
Electrosteel Insolvency case: IBBI fines Electrosteel resolution professional
Insolvency and Bankruptcy Code effect: Banks stare at large haircuts
Intra-state E-way bill rolled out in 5 states including Gujarat & Kerala
India to rank among top 5 cosmetics markets
Aluminum surges on supply constraint fears
Mid- & small-cap segments bound to grow in years to come
Guar gram prices may rise on exports demand
19 coalmines’ auction likely this quarter
NPA maze: Govt for scrapping of one-day default norm


Cipla: USFDA inspection of Indore unit completed without any adverse or data integrity or repeat observations – Positive for Cipla; Cipla is one of our preferred pick in pharma sector. We have a Buy rating on the stock with PT of Rs 685. 

ICICI Lombard General Insurance : ICICI Lombard General Insurance Co has emerged as the frontrunner to acquire Chennai-based Star Health and Allied Insurance Co from its founders and financial investors, edging past the competing consortium of WestBridge Capital and ace stock market investor Rakesh Jhunjhunwala, valuing the company at Rs 6,000 crore, as per media reports.  - Stock to be in focus  

IDBI Bank : The finance ministry has reopened the case for restructuring of IDBI Bank, including a possible sale of government stake to private players, as it seeks to stop a further burden on the exchequer and use the money for other social security schemes. The government, which holds 78% in the bank, had put its plan to pare stake in the erstwhile financial institution on hold.Meanwhile IDBI Bank has prepared a comprehensive plan for improving its financial health and reducing stressed assets. - Sentimentally positive  

Tata Motors (JLR): To cut production at UK plant; to shed 1,000 jobs amid weak demand scenario; Negative ….(details in other news) 

M&M, Tata Motors: Government extends FAME India scheme (incentive for green vehicles) for six months; positive ….(details in other news) 

UCO Bank: CBI to question former top management of UCO Bank for allegedly cheating the bank to the tune of Rs621cr which has caused a loss of over Rs 737 crore to the bank – sentimentally negative


Oil & Gas: Government has changed the terms of several existing production sharing contracts (PSCs) starting FY19 and has fixed the floor for government’s share of profit petroleum in running contracts, irrespective of the investment multiple (the basis of sharing revenues from oil and gas blocks between the operators and the government) as per media reports - negative read through for Reliance Industries and Vedanta Limited (given its exposure to oil & gas sector through Cairn India Limited)

M&M, Tata Motors: Government extends FAME India scheme (incentive for green vehicles) for six months; positive

The Department of Heavy Industries extended for an additional six months Phase 1 of the FAME programme to promote purchase and usage of green vehicles. The extension of the scheme will be valid till Sep 30, 2018. As per the scheme, depending on technology, battery operated scooters and motorcycles are eligible for incentives ranging between Rs 1,800 and Rs 29000, three-wheeler for incentives in the range of Rs 3,300 and Rs 61,000. In four-wheelers, the incentives range from Rs 13,000 to Rs 1.38 lakh, in light commercial vehicles it is from Rs 17,000 to Rs 1.87 lakh, and for buses it is from Rs 34 lakh to Rs 66 lakh.

GAIL (India): Has finalized contract orders for pipe supply and laying for 2,200kms of its prestigious 2,655kms long Jagdishpur-Haldia & Bokaro-Dhamra Natural Gas Pipeline (JHBDPL) project and expects its first phase of Urja Ganga project to get completed before scheduled target of December-2018 – positive read through for GAIL.   

Tata Motors (JLR): To cut production at UK plant; to shed 1,000 jobs amid weak demand scenario; Negative
Will cut production at its UK plants in wake of fall in sales caused by uncertainty around Brexit and confusion over diesel policy. The company plans to cut around 1,000 jobs at its English factories at central English Solihull and Castle Bromwich plants. The company would soon  announce the revised production plans for FY2019.  

M&M: To launch refreshed 2018 XUV5OO SUV with new features and upgraded engine; to roll out four electric performance cars by 2020 (built by Pininfarnia) for the European markets – Positive.

M&M shall be launching the new 2018 XUV500, an upgrade of the existing XUV500 on 18th April 2018. The company has commenced the bookings of the new vehicle. The XUV500 facelift is expected to get a host of new exterior and interior features and also a major upgrade on its engine. A few changes include a change in visual appeal, engine changes – 2 power outputs on the diesel engine and a petrol variant is also likely and more convenience features. The new vehicle would be priced higher by Rs 30,000 to Rs 50,000 than the outgoing variant. Also, M&M shall be launching an hyper electric car in 2020 which will be built at subsidiary company Pininfarina. The car would compete with the likes of Bugatti Chiron and Lamborghinis in the electric segment and would be priced just under 2 mn euros. M&M has set up a new subsidiary (Automobili Pininfarina) and also plans to launch 4 new models with an estimated investment of USD 100 mn.

Marico - To make a strategic investment in Revolutionary Fitness Private Limited (which owns Revofit a fitness app) by acquiring 22.5% stake – positive read through for a longer term as this will help Marico’s health brand Saffola to leverage Revofit’s integrated platform to offer healthy food options like edible oil, oats, soups and nutrishakes.
Marico Limited has announced a strategic investment in Revolutionary Fitness Private Limited by agreeing to acquire upto 22.5% equity stake, through primary and secondary infusions. Revolutionary Fitness Private Limited owns Revofit - an integrated fitness and holistic wellness solutions app, which provides a 360-degree approach to a healthy lifestyle. It helps urban, health conscious, working professionals build healthy habits and enables easy access to all health needs, be it diet, fitness, nutrition or exercise. Over the years, Marico, through its brand 'Saffola', has always pushed a proactive and healthy lifestyle. Saffola has been expanding its product offerings from healthy edible oils to healthy foods such as oats, high-fibre soups and meal-replacement high protein Nutrishakes. Going forward, the brand will continue to develop a wider bouquet of healthy foods. This alliance is yet another step towards strengthening Marico's healthy lifestyle offerings, by leveraging Revofit's integrated platform.

Dilip Buildcon sets up 5 SPVs to undertake Rs 6307 crore worth projects from NHAI. Neutral read thru for the stock.

Ultratech, Dalmia Bharat, Binani Industries: Ultratech has made yet another higher offer of Rs7,990 crore, up Rs700 crore from the last one for Dalmia Cement assets as per media reports. The revised offer will cover the interest lenders had to forgo. Negative for Ultratech Cement on account of upwardly revision in offer price.

Indian Oil Corporation (IOCL): Has signed a definitive tolling agreement with Dhamra LNG Terminal Pvt. Ltd. (DLTPL) for 3 Million Metric Tonnes Per Annum (MMTPA) of Regasification Capacity in their 5 MMTPA LNG Terminal – the impact of the agreement would depend upon pricing of LNG, which is expected to meet captive gas requirements of three refineries of IOCL in Barauni, Haldia and Paradip. 

Infosys: Infosys whistleblower asks Sebi to question board – sentimentally negative for the stock
The whistleblower who had last year raised charges of irregularities by the Infosys board, sent a letter to Sebi demanding accountability from the board on its decision first to buy Panaya and Skava and then to sell them three years later.

Building materials: E-way bill requirement for intra-state movement of goods have been rolled out in five states, viz. Gujarat, Uttar Pradesh, Andhra Pradesh, Telangana and Kerala from Sunday as per media reports. Positive read thru for companies like Kajaria Ceramics, Century Plyboards, Cera Sanitaryware, Greenply Industries among others

Reliance Industries (RIL): Lenders to Alok Industries have rejected a revised offer of Rs5,050 crore by RIL-JM Financial ARC to acquire the bankrupt company Alok Industries. Moreover, RIL has agreed to buy a majority stake of 72.69% in the artificial intelligence (AI)-based education platform Indiavidual Learning Pvt Ltd (Embibe) and plans to invest $180million in the acquired company  - largely neutral read through for RIL.

Jaypee Infratech, JP Associates: Jaypee Infratech has made its offer in an affidavit to the Supreme Court as the bidders for the company are making offers ranging between Rs7000 crore and Rs8000 crore as per media reports. Jaypee Infratech hopes that the SC would accept its proposal, which would in turn help the company get Rs140 crore funding from Deutsche bank to run the company. Neutral read thru for Japee Infratech and JP Associates.

Interglobe aviation: All the 14 planes (11 of Indigo) which were grounded between February and March this year due to safety concerns are now back into operation as per media reports. Positive read thru for Interglobe aviation.