EUR 120.00 For Business Accounts Only

MOSL: Morning India (12/November/21): 1. Clean Science (Richer prospects to aid growth, but rich valuations to cap upside; Downgrade to Neutral); 2. Pidilite Inds.; 3. Godrej Consumer; 4. Piramal Enterprises

Morning India (12/November/21): Morning India (12/November/21): 
Today’s top research ideaClean Science: Richer prospects to aid growth, but rich valuations to cap upside; Downgrade to Neutral- Clean Science (CSTL) reported revenue in line with our estimate; however, higher operating expenditure led to a miss on EBITDA (margin at 44.9% v/s 50.1% in 2QFY21 and 48.8% in 1QFY22).- The Performance segment aided the quarter, while Pharma and FMCG Chemicals suffered on lower volumes and realization. In view of its dominating product market share and ability to sustain the highest margins in the industry, we value the company at 50x FY24E EPS (as it commands ROIC of ~75%) to arrive at Target Price of INR1,800/share.- The stock has posted a stellar price performance of 40% in the last three months (since our initiating coverage report) and trades at 70x FY23 EPS.- Considering the rich valuations, we downgrade the stock to Neutral.
Piping hot newsOPEC cuts world oil demand forecast for 2021OPEC lowered its world oil demand forecast for 2021 on Thursday, citing weaker demand in major consumers China and India, and an expected hit from high energy prices. In a monthly report, the cartel of major oil producers cut its forecast by around 160,000 barrels per day.