Motilal Oswal - MOSL: Morning India (13/January/20): 1. Infosys (Encouraging deal wins and guidance upgrade are key positives!); 2. Avenue Supermarts; 3. Tata Motors-JLR; 4. EcoScope (IIP); 5. India Life Insurance; 6. KNR

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Motilal Oswal

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MOSL: Morning India (13/January/20): 1. Infosys (Encouraging deal wins and guidance upgrade are key positives!); 2. Avenue Supermarts; 3. Tata Motors-JLR; 4. EcoScope (IIP); 5. India Life Insurance; 6. KNR

MOrning India (13/January/20): 1. Infosys (Encouraging deal wins and guidance upgrade are key positives!); 2. Avenue Supermarts; 3. Tata Motors-JLR; 4. EcoScope (IIP); 5. India Life Insurance; 6. KNR

Today’s top research idea

Infosys: Encouraging deal wins and guidance upgrade are key positives!

Independent investigation in whistleblower case is complete and Audit Committee has given a clean to the management. In 3Q, revenue grew 9.5% YoY (CC) to USD 3.2b, in line with our estimate.
EBIT increased 3% YoY to ~INR52b, a marginal miss. PAT was up 23% YoY to ~INR45b, a marginal beat aided by a one-off (interest income on tax refund). Key verticals BFSI (1.6% YoY, CC, Organic) and Retail (2.5% YoY, CC) remained soft. Barring these, growth in most verticals was strong. Strength in large deal wins (58% YoY, rolling four-quarter average) and the growth guidance upgrade (from 9-10% to 10-10.5% YoY CC) have surprised us. Meaningful moderation in attrition (~200bp QoQ) is a reason to cheer.
We upgrade our EPS estimate for FY20-22 by 2%-3%, given the robust large deal wins and the decent outlook. Reiterating Buy.

Piping hot news

Govt plans to restrict coal supply to Andhra Pradesh

The Centre is considering restriction of coal supplies and all sanctioned loans and funding to Andhra Pradesh from central public sector units (PSUs) such as Power Finance Corp. Ltd (PFC) and REC Ltd, if the state government refuses to reconsider its decision to revise renewable energy contracts, according to two people aware of the development.

13/01/2020 25 EN

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MOSL: Morning India (13/January/20): 1. Infosys (Encouraging deal wins and guidance upgrade are key positives!); 2. Avenue Supermarts; 3. Tata Motors-JLR; 4. EcoScope (IIP); 5. India Life Insurance; 6. KNR

MOSL : HOME FIRST FINANCE COMPANY: Earnings in-line with sustained improvement in asset quality

MOSL : SHOPPERS STOP: Ticking the right boxes

MOSL : ERIS LIFESCIENCES: Enhanced efforts toward product launch-related activities

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