MOSL: Morning India (05/February/19): 1. India Strategy (3QFY19 interim earnings review); 2. Maruti Suzuki; 3. UPL; 4. GSK Pharma; 5. Exide Inds; 6. PI Industries – ART FY18; 7. Utilities
MOrning India (05/February/19): 1. India Strategy (3QFY19 interim earnings review); 2. Maruti Suzuki; 3. UPL; 4. GSK Pharma; 5. Exide Inds; 6. PI Industries – ART FY18; 7. Utilities
Today’s top research theme
India Strategy: 3QFY19 interim earnings review; In-line performance so far; more upgrades than downgrades after long
- Earnings revision trend has improved significantly this quarter with an upgrade-to-downgrade ratio of greater than one. Broader headline numbers have been in line for both MOSL Universe and Nifty, with Consumption leading from the front and Corporate Banks posting a smart recovery in asset quality.
- For MOSL Universe, sales, EBITDA and PAT grew 24.2%, 5.6% and 8.7% YoY v/s estimate of 15.5%, 7.0% and 9.2%, respectively. Excluding Private Corporate Banks, sales, EBITDA and PAT grew 24.5%, 4.2% and (0.8) % v/s estimate of 15.6%, 4.4% and (3.0)%, respectively.
- Sales, EBITDA and PAT for Nifty companies have grown at 25.6%, 5.3% and 7.9% v/s estimate of 14.8%, 5.6% and 9.3%, respectively. Excluding corporate-focused Private Banks, Nifty sales, EBITDA and PAT have grown by 25.9%, 3.2% and (3.5%) v/s estimate of 14.8%, 2.1% and (4.5%), respectively.
- Our Nifty EPS estimate is broadly unchanged at INR508 for FY19, but cut by 1.5% to INR638 for FY20. We are building in Nifty EPS growth of 12%/26% for FY19/20.
Piping hot news
SBI, other performing PSBs may see stake sale
- The government plans to sell stakes in better-performing staterun banks, including the State Bank of India, as part of its Rs 90,000 crore disinvestment programme for FY20. The divestment announced in the interim budget will include share sales in the better-performing banks, where the government’s stake has risen in recent years, said a finance ministry official, adding that SBI, the country’s largest lender, is one of those on the radar.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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