HUL has delivered another strong quarterly performance, with double digit sales YoY growth across all three divisions of home, personal care and food. Overall domestic volume growth was in line with estimates at 10% for Q2FY19 versus 12% sequentially and 4% YoY. Net sales grew 11.1% YoY to Rs 92.3 bn indicating a YoY price increase of meagre 1.1% because of intense competition. However, the company is growing ahead of the industry on the back of WIMI strategy, as also innovations and activations. The company also continues to make margin gains through cost management and favorable...
We recently met the management of Arvind Ltd. The company is positive on all major businesses textiles, Apparels and engineering business. The company expects to complete demerger of branded apparel business and engineering business in the near future. The company has maintained FY19...
finalized by the Ministry of Defense (MoD) in May 2018, a 7.5% PBT margin would be allowed v/s the earlier 10-12% margin. Order book continues to be strong. With the LRSAM order of Rs 92 bn, the...
We continue to remain positive on TTSP's strong business model. The recent increase in iron ore costs and coal prices (due to INR depreciation), we feel spread would remain subdued in the coming quarters as well. Factoring this, we have revised our earnings estimates downwards to Rs96.8 (earlier Rs98.5) and Rs89.4 (earlier Rs98.7) for FY19E and FY20E, respectively. Sponge iron realisation declined by Rs2,700/tonne from its high of Rs26,700/tonne in the month of September 2018. Post the recent correction in the stock price, we feel at CMP, the stock is trading at 2.6x FY20E EV/EBITDA, is attractive and risk-reward is favorable....
(1) Strong growth in volumes across segments backed by expansion of capacity; (2) healthy contribution from subsidiary ports; (3) healthy consolidated EBITDA margin, (4) higher non-recurring income (SEZ) and rationalization of interest cost would drive the performance of APSEZ in FY19. The company's good FY19 volume growth guidance, led by commissioning of new ports, new cargo sourcing and market share gains, is a positive. Stake dilution by the promoters of 4% gives us more comfort for addressing group...
Stable performance in both the key segments of decorative and industrial paints over many quarters, renewed aggression under a new management, favourable macro environment, reduction in GST and raw material price inflation would be the highlights of the performance for Akzo in near term. For Akzo, we estimate 11% volume CAGR over FY18 FY20E with stable margins and ROE of ~23% and ROCE of ~21.9% for FY20E. Maintain BUY with...
In our earnings model, we build 1/ bottoming out of Powergen business and showing modest recovery and 2/ continued momentum in industrial and distribution business driven by infrastructure sector. Exports could potentially surprise, given the bounce back in crude oil prices leading to the recovery in Middle East & Africa market and Europe. In our forecasts, we are factoring margins below the historical peak. We build...
Berger is the second biggest decorative paint company in the country. In Q1FY19, in the decorative segment, Berger reported 15% YoY volume growth. The decorative business constitutes around 80% of Berger's overall business and typically grows at 1.5x the GDP of the country. The current volume growth of...
NMDC has revised prices of domestic iron ore thrice YTD, adding up to Rs300 and Rs350 per tonne for iron ore fines and lump ore to Rs2,960/tonne and Rs3,350/tonne, respectively. We believe that the recent hike in the iron ore prices is backed by 4% month on month increase in international iron ore prices, rupee depreciation and the surge in pellet prices (~4 years high / +25% YoY). Though, we continue to remain cautious on the outlook of iron ore prices for the medium to long term perspective. But, expect it to remain...
Performance of the company during Q1FY19 was in line with our estimates. Rental growth was driven by the strong operational performance of Market City malls PMC Chennai, PMC Pune & PMC Mumbai as well as High Street Phoenix & Palladium. Commercial and hospitality segment also registered 35%/6% YoY growth respectively led by improvement in rentals and ARRs. High Street Phoenix performance was led by rental improvements as North Sky zone and new F&B; outlets which has an area of 50,000 sq ft comprising of nearly 13 retailers has started contributing towards improvement in rental income....
