EUR 120.00 For Business Accounts Only

MOSL: Morning India (10/April/19): 1. Retail – Thematic (The Land of Opportunities); 2. EcoScope (2QCY19: India’s Quarterly Economic Outlook) 3. L&T Finance Holdings (Ground Reality); 4. Delta Corp

MOrning India (10/April/19): 1. Retail – Thematic (The Land of Opportunities); 2. EcoScope (2QCY19: India’s Quarterly Economic Outlook) 3. L&T Finance Holdings (Ground Reality); 4. Delta Corp

 

Today’s top research theme

Retail (Thematic): The Land of Opportunities; Biz models rightly evolving to suit ‘New-age Retail’

• Indian organized retail market appears set for a stellar run, with its size likely to triple by FY25. Food & grocery (F&G) and apparel categories are likely to deliver a strong CAGR of 27% and 22%, respectively, over the next four years.
• Business models are evolving as the improving internet ecosystem and the inherent benefit of convenience are fuelling demand for e-commerce. We believe that e-commerce is acting as an enabler and remains more a friend than a foe, as offline retailers leverage on their strength and create an integrated business model.
• Unlike in the previous cycles, many retailers are exercising a measured approach to drive profitability. This will likely ensure sustainable growth and superior valuations.
• We initiate coverage with Buy on Aditya Birla Fashion and Retail, Future Retail, Future Lifestyle, Trent, Spencers Retail, and Neutral on Shoppers Stop and V-Mart. We maintain Sell on Avenue Supermarts. We do not have a rating on Reliance Retail.

Piping hot news

After ADB & RBI, IMF cuts India GDP growth forecast to 7.3% for 2019-20

The International Monetary Fund (IMF) on Tuesday cut India’s GDP growth forecast for 2019-20, following similar action by the Asian Development Bank (ADB) and the Reserve Bank of India (RBI). “In India, growth is projected to pick up to 7.3% in 2019 (2019-20) and 7.5% in 2020, supported by the continued recovery of investment and robust consumption amid a more expansionary stance of monetary policy and some expected impetus from fiscal policy," IMF said in its World Economic Outlook report released on Tuesday.