In the month of February, India's key benchmark indices rose (Nifty 3.7%, Sensex 3.9%) on account of Union budget announcements, better than expected corporate earnings in 3QFY17 and GDP figures. Investor sentiments turned positive as budget provided a big relief to investors by not changing long-term capital gain tax structure on Equity investments, contrary to pre-budget concerns over discontinuance of tax exemptions. During the month, sectors such as Realty, Consumer Durable and IT rose by 9.2%, 9.1% and 8.2% respectively, while Auto sector fell by 1.5%. FPI remained the net buyers on account of heavy buying in HDFC bank as RBI lifted the restriction of FII buying in the bank. However, DII has also remained buyers on excluding the activity in HDFC bank where they remained sellers. India's GDP grew at a positively surprising rate of 7% in 3QFY17 despite the demonetization move. Also, CSO has maintained its advance GDP growth estimate for the current fiscal at 7.1%, implying that the demonetization has had limited hit on the economy. The mainstay of growth during the quarter...
PI Industries' is one of the leading players in the Crop protection industry. Company largely operates under two main segments a) agriculture inputs, b) custom synthesis and contract manufacturing. Company has a niche portfolio of 34 products, which includes 5 in-licensed products and 7 co-marketing products in tie up with MNCs such as Bayer, BASF & Kumiai chemicals. Company currently operates three manufacturing sites in Gujarat, having three formulation units and six multiproduct plants for manufacturing, active ingredients and intermediates. PI has a strong distribution network of 8,000 dealers / distributors; 35,000 retailers and 27 stock points....
Background Established in 1984, Solar Industries is the largest manufacturer of industrial explosives and explosive initiating systems in India. With a licensed explosives capacity of over 290,000 MT/annum, the company has ~28% market share in India. Solar, with a 70% market share in exports from India, exports to 19 countries in Africa and South East Asia. Economic Explosives, a 100% subsidiary, manufactures detonators. Solar has manufacturing facilities spread across 16 locations and eight states in India. In recent years expanded its manufacturing base to Nigeria, Zambia and Turkey. SIIL has also interests in the coal mines (in Chattisgarh) through two JVs. Solar is...
If the promoters decide to maintain their shareholding at the current levels of 73.31%, they will have to sell about 41.2mn shares, leaving only 15mn shares to be bought from the public, implying the acceptance ratio at a minuscule 0.76%....
Background: Lumax Industries, part of DK Jain group, is the largest automotive lighting company in India. It manufactures Head lamps, Tail lamps, Sundry & Auxiliary lamps. Lumax has technological & financial collaboration with Stanley Electric of Japan. Stanley holds 37.5% in Lumax Industries and is its largest shareholder. Lumax provides high quality automotive lighting solutions for four wheelers, two wheelers, CVs & Tractors. It has 9...
Background: Greaves Cotton (GCL) is one of the largest manufacturers (primarily) single cylinder (diesel, gasoline engines) and dual cylinder engines, which find application in running 3-W vehicles and 4-W small commercial vehicles (SCVs). Over the years, GCL has been able to command an overall 3W auto segment share at about 35% in FY08-14, second only to Bajaj Auto (that has in-house engine manufacturing). In the 3W goods segment (sub 1-tonne category), GCL commands a dominating position of 80-90% share (as of FY13) as the market leader OEM i.e. Piaggio (single largest client of GCL) sells the highest 3W goods carrier in the...
Established in 1975, Motherson Sumi Systems Limited (MSSL), a JV between Samvardhana Motherson Group (36.9% stake) and Sumitomo Wiring Systems, Japan (25.6%), is India's biggest supplier of wiring harness and one of the largest manufacturers of rear view mirrors in the world. With a strong workforce of over 60,000 qualified professionals and 140 manufacturing units spread across 25 countries, MSSL caters to major global OEMs such as Volkswagen group, BMW, Daimler, Renault Nissan, Ford, Volvo, Maruti Suzuki, Tata Motors, Honda, Toyota etc. In terms of revenue mix as of FY16, of its standalone revenue, wiring harness accounts for...
If the promoters decide to maintain their shareholding at the current levels of 73.31%, they will have to sell about 41.2mn shares, leaving only 15mn shares to be bought from the public, implying the acceptance ratio at a minuscule 0.76%....
