MOSL: Morning India (08/April/19): 1. India Strategy- 4QFY19 Preview (India's PE movement: Politics to Economy); 2. Indiabulls Hsg Fin. (Announces amalgamation with LVB); 3. HDFC Bank; 4. Financials (Decoding F
MOrning India (08/April/19):
Today’s top research theme
India Strategy | 4QFY19 Preview—India's PE movement: Politics to Economy; Banks dominate the earnings revival
** The 4QFY19 earnings-report season will be a repeat of 3QFY19, with Financials driving the performance singlehandedly. Global Cyclicals - the driver of earnings growth over the last few quarters - have decelerated sharply and are expected to post decline of 14% in profit.
** Corporate banks will account for entire growth in the Nifty and the broader MOFSL Universe's earnings performance.
** We expect MOFSL Universe PAT to grow 29% YoY. Defensives are expected to post flat profits YoY, whereas Domestic Cyclicals will post 4x YoY jump in PAT.
** We expect Nifty sales, EBITDA and PAT to increase by 11%, 2% and 15% on a base of 16%, 22% and 8% growth, respectively. Ex-Corporate Banks, Nifty profits are expected to decline 2.7% YoY. Our Nifty EPS estimates for FY19/20 have been cut by 2.1%/3.6% to INR486/INR606 (prior: INR496/INR629), building in EPS growth of 6.8%/24.8% for the Nifty for FY19/20.
** Our top ideas: Large-Caps: ICICI Bank, SBI, Maruti, Titan, Coal India, Bharti Airtel, L&T, Infosys,ACC. Mid-Caps: Federal Bank, Shriram Transport, Godrej Agrovet, Indian Hotels, Marico, IGL, Exide, Jindal Steel, Alkem Labs.
Piping hot news
Baring PE Asia to acquire 30% stake in NIIT Tech for $381 million
** Baring Private Equity Asia (BPEA) has agreed to buy a 30% stake in software services company NIIT Technologies Ltd for about ₹2,627 crore ($381 million). Funds affiliated with BPEA have signed definitive agreements to purchase the stake totalling 18.85 million shares of NIIT Technologies from NIIT Ltd and other promoter entities. Baring will acquire the shares at ₹1,394 apiece, NIIT Technologies said in a regulatory filing on Sunday. The offer price is a 3.3% premium to the closing price of NIIT Technologies on Friday.
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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