India Policy and Reforms share price target

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.

Going forward, in the near term, Indian stockmarket focus on the on-going quarterly result season would continue with high stock-specific action. As far as the medium-to-long-term is concerned, after seeing some slowdown post demonetization and the countrys transition to the new tax system (GST), the domestic economy is expected to gather some steam, also aided by the concentrated efforts of the government. The only challenge from the near-term perspective is the fact that valuations seem to have run a bit ahead of their true worth and thus we do not rule out heightened volatility in the months ahead for the market. However, at the same time, every dip should be taken as an opportunity to enter the market with an investment horizon.

We value V-Guard based on a P/E of 32x Sep-19EPS, and arrive at a TP of Rs 214. We maintain BUY. We arranged a road-show with the management of V-Guard. Our confidence in the companys long-term business trajectory was further strengthened, despite the short-term hiccups caused by GST. The company is confident of achieving 15% revenue growth in FY18, despite revenue being flat in 1QFY18. Healthy underlying growth with restocking should register high double-digit figures in the coming quarters. Management is also confident of maintaining 10% EBITDA margin in FY18 (1QFY18 margin was at 5.8%, -574bps YoY).

Q1FY18 earnings season displayed another quarter of weak performance. The performance was also hit by GST-related de-stocking in several consumer-oriented sectors. Q1FY18 earnings season displayed another quarter of weak performance. The performance was also hit by GST-related de-stocking in several consumer-oriented sectors.

Q1FY18 corporate earnings tepid performance can mainly be attributed to de-stocking in major sectors before the GST roll-out. However, going forward, we expect sustainable recovery in earnings from H2FY18, which is also important from market standpoint considering that the market valuation is at premium from the near-term perspective. Moreover, while nothing much changes for the medium-to-long-term India growth story, in the short-term, geopolitical concerns and corporate earnings recovery, along with the Governments reform agendas, will decide the course of the Indian stockmarket. We maintain our positive outlook on Indian equities and continue to advocate taking advantage of any correction in the market.

An economy enters the strongest phase of growth when stocks, bonds and commodities rally. We believe that India is at the cusp of entering this phase.