MOSL: Morning India (10/November/17): 1. EcoScope- 2. Tatat Motors- 3. Aurobindo Pharma- 4. Petronet LNG- 5. Ashok Leylan- 6. SAIL- 7. United Breweries- 8. Page Industries- 9. Indraprastha Gas- 10. Muthoot Finance

​MOrning India (10/November/17): 1. EcoScope; 2. Tatat Motors; 3. Aurobindo Pharma; 4. Petronet LNG; 5. Ashok Leylan; 6. SAIL; 7. United Breweries; 8. Page Industries; 9. Indraprastha Gas; 10. Muthoot Finance

Today’s top research idea

• Tata Motors: Above estimates; Strong performance at both JLR & India business

• Consol EBITDA grew 20% YoY to INR89.4b (est INR72.5b), translating into adj PAT growth of 65% YoY to INR24.4b (est INR12.1b).

• JLR's EBIT margins expanded 100bp YoY (+400bp QoQ) to 5.2% (est 3.5%) driven by lower fx hedge loss, lower other expenses, op leverage & higher share of China JV PAT.

• S/A business EBITDA margin came in at 7% (est. 4.5%), expanded 370bp YoY (+700bp QoQ), driven by better mix, cost reduction initiatives and op. leverage.

• For JLR, it expects 10% retail growth for FY18, despite weak outlook for developed market, driven by ramp-up of new product launches.

• Fx hedges slowly but surely improving, as reflected in sharp decline in unrealized current Fx hedge losses to GBP793m as of Sep-17 (v/s GBP1.1b as of Jun-17).

• Maintains S/A business PAT break-even target for FY18, led by volume growth & cost reduction.