India Policy and Reforms share price target

GST provides much needed fillip to the market

Event Update: GST Reform 2.0

GST reset is vital ingredient to boosting consumption

As per our calculations multi-cap funds have a total AUM of `1,46,500 crore with almost 74% of AUM being allocated to large caps while allocation to mid and small caps are 16.5% and 6.2% respectively. If the SEBI recommendations are implement then there could be shift of `40,650 crore from large caps to mid and

SEBI today has published a circular governing the allocation of multi cap funds across companies of different market capitalization

SEBI MULTICAP FUND ASSET ALLOCATION

Finance Minister Announcements 26032020

Finance Minister Announcements 24032020

This is wrongly seen by naysayers as harking back to Nehruvian socialism. It is actually beneficial for citizens and businesses, with relatively better execution and targeting. We have maintained that Union Budgets are more accounting statements than policy documents. Ms Sitharamans first Budget mostly confirms this, though a few policy flashes were visible. Large corporates (and rich individuals) should reconcile with a decidedly tougher, rule-based tax regime rather than hope for sops via lobbying. For its part, Govt has toned down GST aggression (13% lower FY20 target vs. Interim est), while persisting with rising spends in agri/rural/social welfare

4 November 2018 2QFY19 Result Update TRPs revenue increased 33% YoY to INR18.9b (our formulation (DF)/US market, better traction in existing products in the US, and a low base for the LATAM business. Gross margin improved marginally by ~30bp YoY (+90bp QoQ) to 70.5%. EBITDA margin expanded by ~200bp YoY to improving MR productivity related to the Unichem portfolio. However, PAT declined ~12% YoY to INR1.8b (in-line), primarily due to increased depreciation/ interest cost, partly offset by a low tax rate of 12.7% (v/s 25% in 2QFY18). For 1HFY19, sales stood at INR37.7b (+34% YoY), EBITDA at INR9.5b (+52% YoY) and PAT at INR3.4b (-13% YoY). DF business (44% of sales) grew 34% YoY in the quarter. Ex-Unichem and adjusting for GST, YoY growth was 21% in DF.

Q1FY19 Results Review The Q1FY19 earnings season has been positive across most sectors. Domestic sectors such as consumer, capital goods and media did well, partly due to a low GST transition base, but the quarter had negative surprises from automobiles, cement, and power and telecom companies

Reinitiate coverage with BUY. The Indian gas sector looks attractive based on several possibilities like (1) Inclusion of Natural Gas (NG) under the GST, (2) Unified tariff method for computing gas transmission tariffs, (3) Increase in penetration of City Gas Distribution (CGD). Availability of Input Tax Credit (ITC) under the GST reign (unlike Value Added Tax) will likely reduce end user cost of NG by 5-19%. NG will become 12-18% cheaper than Fuel Oil (FO) vis--vis being 6-13% cheaper now.

We believe low penetration of cooling products and their leadership position, along with a solid management track record warrants a great entry opportunity to play the structural story. The summer of 2018 started on a weak note, despite IMD predicting a harsh summer. Consumer offtake has thus far been weak, as evident in cooling products (air conditioner and air cooler) performance in 4QFY18. The room air-conditioner (RAC) industry has witnessed several headwinds during FY18, led by GST transition and the change in energy efficiency ratings. Air cooler industry saw two bad quarters (1Q and 4Q) in FY18 owing to erratic summer.

Revenue collection from Goods and Services Tax (GST) touched Rs 86,318 crore in January, falling marginally from previous month's mop-up, data released by Finance Ministry on Tuesday showed.

Top picks: Rallis India and Dhanuka Agritech A normal monsoon in 2017 and better reservoir level led to strong crop sowing in the rabi season. Sowing was at a record high of 58.4 mn hectares (+57.4% YoY) led by Rice (+46.1%) and Pulses (+7.6%). However, GST implementation resulted in some disruptions in 1HFY18. We expect better growth for domestic agrochemical industry in 2HFY18E. However, we prefer companies with the focus on the export market.

India's external trade continues to see swings. The November exports swung to a rise of 30% (yoy) against a decline of 1.3% (yoy) in October. Petroleum (POL) exports surged 48% while POL...

Exports surprised by de-growing 1.1% (y-o-y) in October after a stellar show in September. Trade deficit widened to a $ 14 billion, a 3 year high.

Exports surprised by de-growing 1.1% (y-o-y) in October after a stellar show in September. Trade deficit widened to a $ 14 billion, a 3 year high.