Inflation and IIP: Food inflation at 70-month high. AGLL: Gati acquisition deriving synergies an uphill task

Consumer Price Index or CPI inflation rose 5.54%YoY in November'19 higher than Bloomberg teresa.john@nirmalbang.com consensus estimate of 5.3% and significantly higher than our estimate of 4.69%. It rose from +91 22 6273 8114 4.62% in the previous month. The deviation from our estimate was on account of a sharper than expected rise in vegetable prices. Core inflation stood at 3.49% broadly in line with our estimate. Apart from vegetables, prices of other food items such as cereals, pulses, meat, fish, egg and milk are also edging up. Food and beverage inflation stood at 8.66%, up from 6.93% in the previous month. While we do not expect the spike in vegetable prices to sustain at current levels, the gradual increase in prices of other food items is likely to sustain. Meanwhile, core...

We interacted with the management of R System International Ltd recently. Here are the key highlights:?Going ahead, management expects dollar revenue growth of 11-12% for CY19 and 12-13% for CY20. Management indicates that Ebitda margins for Q4CY19 is likely to come in at 9 -10% vs 7.8% in Q3CY19, thereby ending the year in the range of 8.6-9%. Ebitda margin for CY20 is further likely to see an improvement of 200-300bps, according to management.At CMP, the share is trading at EV/Ebitda of 8.5x and PE of 12.1x TTM Q3CY19 EPS

Aurobindo Pharma continues to strengthen market share in Ertapenem. Compared to the Research Analyst previous quarter, its market share is up from 56% to 75% in the current quarter. In Valsartan, vishal.manchanda@nirmalbang.com Aurobindo Pharma's share is declining, which is being largely replaced by a ramp-up in +919737437148 supplies from Alembic Pharma. In Renvela suspension, Aurobindo Pharma continues to hold Gaurang Sakare...

Union Cabinet has approved NHAI's proposal to set up an Infrastructure Investment Trust (InvIT) and monetise its completed highway projects.

In another major development, Suven Life's SUVN-502 (Masupirdine) phase 2a study for Alzheimer's disease failed to meet its pre-specified primary endpoint in proof of concept (POC) study. This is a major setback on this flagship drug. Nonetheless, the future financial impact may be minimal mainly because the company has already expensed R&D; cost in P&L.; On the regulatory front, the USFDA has classified Ipca Labs' formulations facility at Piparia, Silvassa as official action indicated (OAI). The facility had received three observations after the cGMP inspection conducted from...

& how they are well positioned to capture digital opportunities in transforming the core. The CEO mentioned that Enterprises need to master four essential plays to excel ahead 1) Digitizing the core 2) Data Driven Organization, 3) Experience transformation & 4) Operate to transform. Customer centricity remains a key aspect of LTI strategy. LTI sales & marketing initiatives are driving strong growth for the company. LTI has laid out sales strategy framework three years ago & it focusses mainly on large deal wins, growing top accounts & focusing on strategic alliances. It...

Asian markets are trading mixed tracking cues from Wall Street overnight while investors continue to focus on U.S China trade and UK elections. Nikkei is trading higher by 0.23%, Hang Sang is trading higher by 1.14% while Shanghai is trading lower by 0.19%. Indian indices are expected to open higher

Asian markets are trading mixed ahead of the US Fed interest rate decision due later in the day. Nikkei is trading lower by 0.23%, Hang Sang is trading higher by 0.12% while Shanghai is trading higher by 0.23%. Indian indices are expected to open in the green. Sgx Nifty is trading higher by 0.06%.

We hosted a Commercial Vehicle (CV) expert over a conference call recently to get his views on the current CV slowdown due to fall in freight volume in a slowing economy and on fleet owners thought process on truck purchases with the onset of BS-VI in a few months. Lastly, we took his views on the potential scrappage policy that could be introduced soon. We highlight the key takeaways in this note. Reasons for slowdown in CV sales: The expert stated some of the reasons for slowdown in CV industry as below: 1) Overall slowdown in economy, which led to decline in freight volume. Transport industry is the pulse of the economy and slowdown in freight volume is an indicator of slowdown in the economy. There has been sizable reduction in actual movement of goods across the country, particularly from road (which accounts for approx 65% of...

We looked at IRDA data for monthly new business figures and note that (1) HDFC Life Individual New Business APE growth for Nov'19 was 43% YoY (2) Max Life's growth for the same metric was 17% YoY (3) Growth for SBI Life, at 22% YoY, bounced back (4) Growth for ICICI Prudential Life was 20% YoY. In our view, the new business performance for Nov'19 is encouraging, especially in the backdrop of two consecutive months of negative-to-low growth. Our interpretation of the revenue performance is outlined below. Private sector individual APE growth back in double digits, though LIC's growth was stronger: Post 2 consecutive months of low growth (Sep'19: +2.5% YoY, Oct'19: +3.8% YoY),...

Asian markets are trading mixed as investors take note of data that showed Chinese consumer inflation jumped 4.5% year-on-year. Nikkei is trading lower by 0.09%, Hang Sang is trading higher by 0.06% while Shanghai is trading lower by 0.22%. Indian indices are expected to open in the green. Sgx Nifty

The cogs of this flywheel include (a) Real estate choices (we mapped networks across income profiles and population density of 460+ districts), (b) Assortment/mix and pricing (across 1,50,000 SKUs), (c) Financial position of 40+ retailers. Despite the huge opportunity, food & grocery (F&G;) and Apparel exhibit divergent trends. While F&G; is consolidating, Apparel is gradually fragmenting. Both trends make it imperative to identify whos got the proverbial flywheel (momentum) moving.

Asian markets are trading mixed as data showed that China's exports declined for the fourth consecutive month in November. Nikkei is trading higher by 0.29%, Hang Sang is trading lower by 0.04% while Shanghai is trading flattish. Indian indices are expected to open on a flat note. Sgx Nifty is tradi

For the month ended November 29, 2019, returns across all Equity Mutual Fund categories were positive. The Nifty 50-TRI returns were 2.29%, while the Nifty Midcap 100-TRI returns were 4.57%. The Nifty Small Cap 100TRI returns were 2.03% over the month. Out of the 219 open-ended equity diversified funds, about 23% of the funds were able to outperform their respective benchmarks over the past one month, ended November 29, 2019. Previous month, 26% of the schemes were able to beat their benchmarks. For the 1- year ended November 29, 2019. The Nifty 50 TRI returns were...

For the month ended November 29, 2019, returns across all Equity Mutual Fund categories were positive. The Nifty 50-TRI returns were 2.29%, while the Nifty Midcap 100-TRI returns were 4.57%. The Nifty Small Cap 100TRI returns were 2.03% over the month. Out of the 219 open-ended equity diversified funds, about 23% of the funds were able to outperform their respective benchmarks over the past one month, ended November 29, 2019. Previous month, 26% of the schemes were able to beat their benchmarks. For the 1- year ended November 29, 2019. The Nifty 50 TRI returns were...

Status quo as inflation expectations drive rates; further cuts not ruled out Teresa John, CFA The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) maintained status quo on key policy rates against consensus and our expectation of a 25bps rate cut. The accommodative stance was also maintained. Interestingly, the decision was unanimous. Our expectation was for a pause after a rate cut this time, as growth in 2QFY20 surprised significantly on the downside against the RBI's estimate. At the same time, GDP growth for FY20 has been cut to 5% (in line with our estimate) while growth for 1HFY21 stands at 5.9-6.3%. CPI inflation for 2HFY20 has been revised up to 4.7-5.1% from 3.5-3.7% earlier and 3.8-4% for 1HFY21. Our CPI estimate for 2HFY20 stands at 5%. The decision to...

Asian markets are trading higher tracking while investors await release of U.S. governments monthly nonfarm payrolls report in the day ahead. Nikkei is trading higher by 0.26%, Hang Sang is trading higher by 0.97% while Shanghai is trading higher by 0.11%. Indian indices are expected to open margina