MOSL: Morning India (11/September/18): 1. Technology; 2. Hindalco (Annual Report Analysis); 3. Coromandel Intl; 4. Tata Motors (JLR’s Aug-2018 wholesale above estimate)
MOrning India (11/September/18): 1. Technology (Assessing currency's relative beneficiaries across our coverage); 2. Hindalco (Annual Report Analysis); 3. Coromandel Intl (Well on track for a healthy season); 4. Tata Motors (JLR’s Aug-2018 wholesale above estimate)
Today’s top research idea
Technology: Assessing currency's relative benefits across our coverage
- While the industry is secularly a winner in terms of absolute earnings as the INR depreciates, relative benefits are another story altogether. We analyze three key aspects that will determine the extent to which a company's earnings are sensitized to currency fluctuations [1] Mix of USD revenue bookings among other currencies, [2] Extent of onsite-offshore revenue mix - that will determine the net exposure after natural hedge; and [3] The hedging policy in terms of duration and proportion of the net exposures hedged.
- Based on our assessment of the above parameters across our coverage universe, we see INFO as most favorably placed and TECHM the least among tier-I IT companies. In tier-II, we would expect MTCL to benefit the most and LTI the least.
Piping hot news
ArcelorMittal raises bid for Essar Steel to ₹42,000 crore
- ArcelorMittal SA, the world’s largest steel maker, on Monday sharply raised its bid to acquire debt-laden Essar Steel Ltd to ₹42,000, said a person with direct knowledge of the matter. The National Company Law Appellate Tribunal in its judgement last Friday asked ArcelorMittal to first clear dues totaling ₹7,000 crore of Uttam Galva Steels Ltd and KSS Petron Pvt. Ltd by 11 September to be considered an eligible bidder for Essar Steel.
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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