Report
Team Research
EUR 120.00 For Business Accounts Only

MOSL: Morning India (14/August/19): 1. India Strategy (A peek into market-cap changes since peak); 2. Fund Folio; 3. EcoScope; 4. Financials – NBFC; 5. ONGC; 6. Coal India; 7. Sun Pharma; 8. BPCL; 9. Bosch; 10.

MOrning India (16/August/19): 1. Godrej Consumer FY19 – ART (Rising payable drives working capital improvement); 2. EcoScope; 3. Grasim Inds; 4. NMDC; 5. NHPC; 6. Indraprastha Gas; 7. SAIL; 8. Glenmark Pharma; 9. Ipca Labs; 10. Jindal Steel

 

Today’s top research idea

Godrej Consumer FY19 - ART: Rising payable drives working capital improvement

  • GCPL's FY19 annual report highlighted a subdued operating performance as EBITDA grew 3% to INR21.2b. Adjusted for (a) MAT benefit recognized (at INR6.7b) and (b) write-back of earn-out liability pertaining to the SON acquisition (at INR1.9b), PAT was down 3% to INR14.2b. Return ratios were much lower at the consol. (RoE at 21%, RoCE at 22%) than standalone (RoE at 65%, RoCE at 86%) owing to high capital intensity at subsidiaries. Intangibles assets stood high at INR49.2b (103% of NW), of which Africa constituted INR29.7b. CCC days improved to 10 (FY18: 13), led by rise in payables.
  • Over FY16-19, CCC days improvement of 19 was led by payables (+21 days). Over FY17-19, dividend payout increased significantly by 6x to INR14.8b.

Piping hot news

July trade deficit narrows to $13.43 bn

India’s trade deficit narrowed to $13.43 billion in July 2019, from $15.28 billion in the previous month, according to official data released on Wednesday. “India’s overall exports [merchandise and services combined] in April-July 2019-20 are estimated to be $181.47 billion, exhibiting a positive growth of 3.13% over the same period last year,” the government said in a statement. “Overall imports in April-July 2019-20 are estimated to be $214.37 billion, exhibiting a negative growth of 0.45% over the same period last year.”

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