Research Reports published by PHILLIP CAPITAL

Telecom Services    
SECTOR | 08 Oct 2016
Phillip Capital
They say one ends up over eating at a buffet because of being spoilt for choices. The recentlyconcludedspectrumauctionsareanexampleofthetelecomoperators'insatiable appetite the government put out all the available bands and spectrum up for auction and the operators went to town buying it all up. The saving grace was thatnooperator submitted bids for the ultraexpensive 700MHz. All have bought spectrum that is more than their current requirements. Jio, which is just days into the launch of its operations has added capacity spectrum. With this significant addition of data spectrum, all operators are now battleready. The scramble for capacity spectrum and the ensuing...
RBI and Finance Ministry    
TREND | 07 Oct 2016
Phillip Capital
that 4% CPI is now a fiveyear target vs. the 2018 timeline set during Dr. Rajan's governorship.We view this positively, asbringing CPI down to 4% in the nearterm was aggressive for India, because it suffers from supplyside constraints. The longer timeline will ensure easy monetary policy, low interest rates, and stimulus for economic growth. WeawaitmoredetailsontheinflationtrajectorythatRBIaimstoachievebeyondFY17to formanopiniononquantumanddurationofmonetarypolicyeasing.Fornow,thecurrent monetary policy regime seems reasonably dovish vs. the previous one. Commentary on growthismixedanditispositiveoninflation.Riskstobotharewellbalanced,saysRBI....
Axis Direct released a Economy Update report for RBI and Finance Ministry on 04 Jun, 2021.
Transportation    
SECTOR | 07 Oct 2016
Phillip Capital
As of August 2016, IR had Rs 4,366bn (US$ 65bn) of pending projects, announced and/or awarded, but pending completion; 83% of these are construction related (new lines, doublingandgaugeconversion)whiletherestareroadsafety,signalling&telecom;,andIR's investmentsintoitsproductionworkshopsandmetroprojects. Constructionrelatedprojects:61%unbankable,48%WIPfor>5yearsduetonewlines InFY15,IRreduceditsthresholdrateofreturnto12%from14%earlier;despitethat,61%of its pending construction projects remain unbankable. Key reason for this is the slow...
Endurance Technologies Ltd.    
05 Oct 2016
1497.25
-0.11%
Phillip Capital
dominating position in the 2W casting segment with a 33% market share and holds 14%/22% share in 2W braking & transmission/suspension segments. It generates 70% revenues from India (mainly 2Ws) and 30% through its European subsidiaries (PVs). We recommendsubscribingtotheissuedespiteloftyvaluations,aswelikeitsbusinessmodel coupled with the scarcity premium for quality companies to play the segmental opportunities it offers. We see strong structural growth potential led by high exposure to segments that are primed to benefit from changing consumer preferences and regulatory changesleadingtohighercontentpervehicleandrecoveryin2Windustrysales.Asperour...
Axis Direct increased Buy price target of Endurance Technologies Ltd. to 1664.0 on 24 May, 2021.
Consumer Durables    
SECTOR | 05 Oct 2016
Phillip Capital
In Q2FY17, we do not see a major revival in growth for most consumer companies as the factors responsible for sluggish growth in the last few quarters, like rural stress, liquidity crunch, and subdued macro-environment, continue to impact growth. For consumer companies (ex-Nestle), we expect topline to grow by 8% yoy in Q2 vs. 5%/5%/6% in the previous three quarters and bottomline to grow by 11% vs. 9%/7%/10% in previous three quarters. We believe that the minor improvement in growth rates will be due to a favourable base for companies impacted by excise benefit cessation in FY16, mild revival in ITC's cigarettes business, and gross margin expansion for categories consuming cruderelated raw materials....
Capital Goods    
SECTOR | 04 Oct 2016
Phillip Capital
New project announcements +24% qoq after adjusting for projects with low visibility: Overall, new projects announced in 2QFY17 (Rs 1.97tn) were up 32% qoq, but down 19% yoy. However, adjusting for lowervisibility projects (Rs 500bn JSW steel plant), they increased24%qoq,butfell40%yoy.Manufacturing(Rs1tn,drivenbymetalsandrefinery) and transport (Rs 611bn, led by aircrafts) accounted for 83% of new announcements. By ownership, the private sector accounted for 70%. Key projects include Go Air's aircrafts order (Rs 517bn), JSW's Odisha steel plant (Rs 500bn), CPCL's Nagapattinam refinery (Rs...
Oil and Gas    
SECTOR | 04 Oct 2016
Phillip Capital
Arab Heavy, and Maya went up slightly by 1% qoq. WTI was slightly down 1% qoq. Brent closedatUS$47.7/bblQ2endversusUS$48.4/bblQ1end,implyingasmallinventoryloss forrefiners.Theaveragerupeedollarratealsowasflatqoqwhileitclosedstrongerat66.6...
default
Chemicals & Petrochemicals    
SECTOR | 04 Oct 2016
Phillip Capital
We organised a Specialty Chemicals Industry Conclave on 28th September 2016 in Mumbai. In this daylong event, we hosted the following eminent dignitaries from the Indian specialty chemicals' sector in a panel discussion...
Software & Services    
SECTOR | 04 Oct 2016
Phillip Capital
INDIA | IT SERVICES | Q2FY17 Results Preview We expect 2QFY17 to be a lacklustre quarter for Indian IT companies, considering that it is traditionally the strongest quarter for the industry. Sharp cross-currency movement (particularly GBP post Brexit) and client-specific issues will drag revenue growth for almost all companies. We expect large-cap companies to report CC revenue growth of 0.4%-3.3% and 50-100bps negative cross-currency impact. Margins are expected to expand for Infosys and TCS and contract for Wipro (wage hike), HCL Tech (wage hike), and Tech Mahindra (restructuring cost). Management commentary will be of utmost importance in this...
HDFC Securities released a Sector Update report for Software & Services on 26 May, 2021.
Software & Services    
SECTOR | 30 Sep 2016
Phillip Capital
Digital business grew by 30% yoy (in local currency). Digital, Cloud and Security revenues combined constitute 40% of Accenture's total revenue. Outlook subdued guidance for FY17...
HDFC Securities released a Sector Update report for Software & Services on 26 May, 2021.