Motilal Oswal - MOSL: Morning India (14/January/19): 1. Infosys (Catching up with leading peers on growth); 2. Avenue Supermarts (Margin pressures evident); 3. Tata Motors (JLRâ€™s wholesale volumes); 4. India Life Insurance; 5

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Motilal Oswal

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MOSL: Morning India (14/January/19): 1. Infosys (Catching up with leading peers on growth); 2. Avenue Supermarts (Margin pressures evident); 3. Tata Motors (JLRâ€™s wholesale volumes); 4. India Life Insurance; 5

MOrning India (14/January/19): 1. Infosys (Catching up with leading peers on growth); 2. Avenue Supermarts (Margin pressures evident); 3. Tata Motors (JLR’s wholesale volumes); 4. India Life Insurance; 5 Ecoscope

Today’s top research idea

Infosys: Catching up with leading peers on growth

INFO’s 3QFY19 constant currency revenue growth accelerated to 10.1% (our estimate: 9.0%) from 4.6% YoY CC five quarter ago. Investments, however, continued to take a toll, with the adjusted EBIT margin down 70bp QoQ to 23% (our estimate: 23.5%).
PAT grew 8% YoY to INR39.9b (1% beat) in 3QFY19. INFO announced (a) buyback of INR82.6b under the open market route at a maximum price of INR800/share and (b) special dividend of INR4/share, in line with its announcement of USD2b payout to shareholders.
As we had highlighted in report and also in our commentary post TCS’ , the scarcity of local talent pool at onsite has been driving companies toward more sub-contractors (among other initiatives), thereby impacting margins. INFO missed our margin estimate by 40bp in 2Q and again by 50bp in 3Q (margin now down by 110bp YoY.

Piping hot news

Finance ministry may sell part of SUUTI holding in Axis Bank, ITC

The Finance Ministry may consider selling part of its stake in Axis Bank and ITC, held through SUUTI, in next few months, an official said. As on September 30, 2018, Specified Undertaking of Unit Trust of India (SUUTI) held around 9.63% stake in Axis Bank, 7.97% in ITC and 1.80% in L&T.

14/01/2019 20 EN

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MOSL: Morning India (14/January/19): 1. Infosys (Catching up with leading peers on growth); 2. Avenue Supermarts (Margin pressures evident); 3. Tata Motors (JLRâ€™s wholesale volumes); 4. India Life Insurance; 5

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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