Friday, 28 July 2017

28 July 2017 - Views & News


ITC Q1FY2018 results came in-line with expectation; the core cigarette business and non-cigarette FMCG business performance was better than expectation (details in investment call) – positive read through for the stock

Director General of Hydrocarbon (DGH) have asked consortium partners in Panna Mukti Tapti (PMT) field (ONGC -40%, Reliance Industries -30% and BG Exploration and Production India – 30%) to pay $3.9billion for differential government of India (GoI) share of profit petroleum and royalty based on the decision by international tribunal related to arbitration case on PMT field between Reliance Industries, BG Exploration and Production India and GoI. We highlight here that ONGC has not made any provision for its share of $1.57billion in its Q1FY2018 results as the final decision on the matter is still pending by the international tribunal – negative for ONGC and Reliance Industries.   

Exide Industries launches a mass brand – Dynex to gain share from unorganized players post GST rollout; eyes foray into lithium ion batteries: Positive ….(details in other news)


Nava Bharat Ventures 300 MW Power Plant of Maamba Collieries has achieved provisional acceptance under the EPC contract; sentimentally positive

Branded Apparel (Inner wear segment): Advent International buys significant stake in Dixcy Textiles – increased in competition for Rupa and Co. (brands like Macroman, Frontline and Euro brands); Lux Industries (brands like Lux Cozi) and Dollar Industries (brands like Bigboss and Club). However, Page Industries (Markets Jockey brand) and ABFRL (Van Heusen innerwear) would not be that impacted as they mainly target the premium segment and have better distribution reach
Global private equity fund Advent International has acquired a significant stake in leading innerwear company Dixcy Textiles (having brands like Dixcy Scott, Dixcy Scott Uno, Dixcy Josh and Dixcy Slimz) for an undisclosed sum. Although the financial terms of the transaction were not disclosed, reports say that Advent could be investing up to Rs 700-800 crore ($125 million) to professionalize the business and drive growth. Once fully invested, the fund will end up with a controlling stake in the company. Dixcy has a network of more than 1,000 distributors, and supplies its products to over 1,20,000 retail outlets across the country. The innerwear market in India is expected to grow at double-digit rates over the next five years, driven by an increased per capita spending and consumer demand for higher-quality products.

Axis bank: Shikha Sharma has been reappointed as MD & CEO of Axis bank for 3 years – Neutral read thru

Exide Industries launches a mass brand – Dynex to gain share from unorganized players post GST rollout; eyes foray into lithium ion batteries: Positive
Exide Industries has launched a mass battery brand ‘Dynex’, priced approximately 15% lower than the mother brand. Dynex is targeted at small businesses and other segments in the replacement market that prefer low-cost offerings over branded products and would be a key driver of Exide targeting market share gains from unorganised players post GST rollout (unorganised player account for 35% of replacement market). Also, the company is eyeing foray in the lithium ion batteries and signed a technology co-operation agreement for the design and manufacture of lithium ion family of products with Chawei Group, China. Also Exide has lined up a capex of Rs 1,100-crore for FY2018 including that of the Haldia unit, and another Rs 100 crore towards setting up of a smelter unit.

Mindtree announces elevation to Business Partner Status
Mindtree announced its advancement to Business Partner within the Adobe Solution Partner Program. This reflects Mindtree's specialization in Adobe Experience Manager, part of Adobe Experience Cloud, and its sustained focus to provide clients with comprehensive offerings, leveraging Adobe Experience Cloud for customer experience transformation.

Dish TV: National Company Law Tribunal approves Dish TV-Videocon D2h merger
The National Company Law Tribunal approved merger of satellite TV service providers Dish TV and Videocon D2h, paving the way for creation of country's largest direct-to-home service provider. The merged entity would have a subscriber base of over 27.2 million, creating the largest DTH service provider in the industry.

Tata Motors – (Land Rover) has launched the Range Rover SVAutobiography Dynamic priced at Rs 2.79 crore, ex-showroom, India. The vehicle is manufactured by JLR’s Special Vehicle Operations (SVO) team. The Range Rover SVAutobiography Dynamic is powered by an all-aluminium 2.01 litre V8 supercharged petrol engine, which produces 543 hp of maximum power. The new launch would expand Range Rover kitty in India. Positive read thru

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