Background: AU SFB, initially incorporated as a vehicle finance company in 1996, was transformed into a Small Finance Bank in April 2017. The bank has presence in 11 states and 1 union territory, with 496 branches, 310 ATMs, 31 asset centers and ~6,59,904 loan accounts. The bank offers a comprehensive and tailor made range of products (both asset and liability) and services to cater to the needs of various businessmen (SME and MSME) and other middle and low...

Topline weaker than expected but AUM decline reverses Nippon Life India Asset Management Ltd (NAM) reported its 3QFY20 results with the key pointers being: (1) Full stop to the AUM decline (2) Revenue traction remains weak (See comprehensive conference call takeaways on page 2 for significant incremental colour). Per se, on the key financials, NAM posted MF AUM decline of 12% YoY at Rs1,997bn, Net revenue decline of 13% YoY at Rs3,031mn, EBITDA growth of 23% at Rs1,453mn and PAT growth of 36% YoY at Rs1,493mn. We have revised our estimates for FY20/FY21/FY22 and retained Accumulate rating on NAM, revising our target price to...

Westlife Development (WLDL) continued to deliver an encouraging performance in 3QFY20 amid challenging demand environment. It delivered a topline growth of 16.8% YoY to Rs4.3bn for the quarter, which was around 2% above our expectations. The company has now delivered 18th consecutive quarter of positive Same Store Sales Growth (SSSG). The growth was led by strong SSSG of 9.2% (versus our estimate of 8.5%). 3QFY20 traditionally has been a critical quarter for the company. It leveraged the festive season and strengthened the value platform with the introduction of all new McSaver combo at compelling price points, which helped improve baseline sales. WLDL added 11 new restaurants during the quarter (number of...

Asian markets are lower as spread of coronavirus continues to weigh on investor sentiments amid reports of 800 persons being infected and death toll increasing to 25. Nikkei is trading lower by 0.09%, Hang Seng is trading lower by 0.29% while Shanghai is trading lower by 2.75%. Indian indices are e

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There has been a big disconnect between the trailing 12-month performance of the narrower indices Head of Research (respectable if not spectacular) and domestic GDP growth (which has been trending lower by the quarter). girish.pai@nirmalbang.com But the boarder market's poor performance had been in sync. Among domestic players, equity inflows have been into companies which have gained market share profitably in a slowing economy. The global +91-22-6273 8017 backdrop for risk assets including equities has been fairly benign ever since the US Fed decided to reverse its monetary policy course in early 2019 and reinforced it with a substantial non-QE' in 2HCY2019. This Research Team has been supported by easing policy/statements from both ECB and Chinese central bank. There has also been a large amount of fiscal stimulus imparted in both US and China. As long as this benign central bank...

Asian markets are lower amid continuing concerns over spread of coronavirus while data from Japan also weighed on investor sentiments. On the data front Japanese trade data showed exports falling more than expected in December. Nikkei is trading lower by 0.64%, Hang Seng is trading lower by 0.96%

Indian Equity Markets continued scaling to new high in December'2019 on the back of strong FII inflows, which were positive for 4 months in a row. FII flows in Indian equity remained positive in December'2019, taking total net flow to Rs.1 Lakh Crore for the whole of 2019, one of the highest in last 6 years. Mutual Funds saw highest ever monthly inflow into SIP's in December'2019 at Rs.8,518 Crore Vs. Rs.8,273 Crore in November'2019. Robust SIP flows are indicator of growing participation of Retail segment in equity investing. Consumption slowdown at both urban & rural level continued and NBFC sector...

Indian Equity Markets continued scaling to new high in December'2019 on the back of strong FII inflows, which were positive for 4 months in a row. FII flows in Indian equity remained positive in December'2019, taking total net flow to Rs.1 Lakh Crore for the whole of 2019, one of the highest in last 6 years. Mutual Funds saw highest ever monthly inflow into SIP's in December'2019 at Rs.8,518 Crore Vs. Rs.8,273 Crore in November'2019. Robust SIP flows are indicator of growing participation of Retail segment in equity investing. Consumption slowdown at both urban & rural level continued and NBFC sector...

Asian markets are mixed amid concerns over spread of coronavirus that has resulted in 9 deaths in China so far. Nikkei is trading higher by 0.53%, Hang Seng is trading higher by 0.62% while Shanghai is trading lower by 0.74%. Indian indices are expected to open lower and focus will be on key quarte

Industry slowdown and cautious lending approach has rightly reflected in LTFH lackluster Q3FY20 earnings show. PAT at Rs5.9bn (PLe:5.5bn) grew mere 2%YoY on account of higher provisioning (80% spike YoY) and stood largely supported by tax adjustments (18% tax rate for Q3) under new regime. Steadying WAC at 8.55% over past 1 year and improving attempts to reduce de-focused book (Rs55bn down 22% QoQ) stood credible aiding YoY operating performance. However, 2.5% QoQ decline in PPoP led by slower...

Asian markets are trading lower after ratings agency Moody's cut its rating for Hong Kong to Aa3 from Aa2, while investors await Bank of Japan's release of its quarterly outlook report which will provide cues for the direction of monetary policy. Nikkei is trading lower by 0.75%,

Our optimism on longevity of appliance sector is driven by (1) Rapid change in consumer affordability & preferences, (2) Rising share of branded products, (3) Multi-year growth opportunity (under penetrated), (4) Untapped rural market (rural electrification, rising rural focused strategy by leading companies) and (5) Scope of premiumisation. Appliances are more sensitive to GDP growth. Thereby, any improvement in the economy in 2020 will provide better prospects for the sector. We continue to like companies who are leaders in their respective categories and have ability to tap opportunity in other categories. In consumer appliances, we have BUY rating on Havells, Voltas, Crompton Consumer and Symphony. We did a roadshow with an industry veteran for consumer appliances. Key discussion was around (1) Robust performance of appliances in CY19, (2) Structural drivers of appliances, (3) Disruption from Chinese players and (4) Winning strategies.

Rural demand set to kick-start virtuous cycle We are presenting our latest thematic in our series Rural Kaleidoscope. In the current state of gloom, we got first instance of ray of hope when our team visited Kisan fair in Dec2019 in Pune. We not only observed increase in footfalls but also trade inquiries and willingness to spend on Agri implements, Auto and consumption items. Our interaction with Rural Industry participants and recent visit of our Auto Team to MP further cemented our view of sharp upsurge in rural demand in coming quarters. We believe Rural India is on the verge to kick-start the virtuous cycle in the economy....

Rural demand set to kick-start virtuous cycle We are presenting our latest thematic in our series Rural Kaleidoscope. In the current state of gloom, we got first instance of ray of hope when our team visited Kisan fair in Dec2019 in Pune. We not only observed increase in footfalls but also trade inquiries and willingness to spend on Agri implements, Auto and consumption items. Our interaction with Rural Industry participants and recent visit of our Auto Team to MP further cemented our view of sharp upsurge in rural demand in coming quarters. We believe Rural India is on the verge to kick-start the virtuous cycle in the economy....

Most Asian markets are trading in the green as the Peoples Bank of China keeps the 1 year and 5 year loan prime rates unchanged for January. Nikkei is trading higher by 0.25%, Hang Seng is trading lower by 0.06% while Shanghai is trading higher by 0.22%. Indian indices are expected to open margi..

Accenture recently announced changes to its growth model and composition of its global management committee. This has come after induction of Julie Sweet as the CEO of Accenture about four months back. After having focused since 2014 on growing its capabilities around Strategy, Digital and the Growth Markets, from 1st March 2020, Accenture would organize its capabilities into four services: Strategy & Consulting, Interactive, Technology and Operations. Accenture will change from five reportable operating segments: Communications, Media & Technology; Financial Services; Health & Public Service; Products and Resources (the Operating Groups), to three reportable...