MOSL: Morning India (13/August/18): 1. SBI; 2. Coal India; 3. IOCL; 4. GAIL; 5. Bosch; 6. Hindalco Inds; 7. Aurobindo Pharma; 8. Aditya Birla Capital; 9. Sun TV; 10. United Breweries
MOrning India (13/August/18): 1. SBI; 2. Coal India; 3. IOCL; 4. GAIL; 5. Bosch; 6. Hindalco Inds; 7. Aurobindo Pharma; 8. Aditya Birla Capital; 9. Sun TV; 10. United Breweries
Today’s top research idea
SBI: Asset quality pressure easing; remain constructive amidst volatility
- SBIN reported a loss of INR48.76b as it made entire investment depreciation provisions of INR71b. Asset quality improved aided by moderation in fresh slippages to INR99.8b even as corporate slippages declined to INR37b (~91% from the watch list). While non-corporate slippages stood higher but it has been seasonal in nature. SBIN holds 71% provision on NCLT exposure and is expecting further write-backs here. The size of watch-list including SMA-1 & 2 has declined to 2% of loans including non-fund.
- We expect slippages to further moderate during 2HFY19E while the resolution of stressed power assets remains an important event to watch for in the near. We estimate FY20E RoA/RoE to improve to 0.6%/13.7% and maintain Buy with unchanged PT of INR360 (1.7x FY20E ABV).
Piping hot news
Jet Airways plans $400-million stake sale to PEs
- Cash-strapped Jet Airways, which was forced to delay its earnings announcement and is under watch over debt repayments, has initiated a formal stake-sale process to raise $350-400 million from global private equity firms. Approaches have been made to bulge-bracket funds including Blackstone, TPG and Indigo Capital Partners, said multiple people aware of the ongoing discussions.
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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