Motilal Oswal - MOSL: Morning India (14/November/18): 1. Maruti Suzuki; 2. Sun Pharma; 3. HDFC Std. Life; 4. Zee Entertainment; 5. Britannia Inds; 6. Tata Steel; 7. Shree Cement; 8. Fund Folio (Shrugging off volatility)

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Motilal Oswal

Team Research

MOSL: Morning India (14/November/18): 1. Maruti Suzuki; 2. Sun Pharma; 3. HDFC Std. Life; 4. Zee Entertainment; 5. Britannia Inds; 6. Tata Steel; 7. Shree Cement; 8. Fund Folio (Shrugging off volatility)

MOrning India (14/November/18): 1. Maruti Suzuki; 2. Sun Pharma; 3. HDFC Std. Life; 4. Zee Entertainment; 5. Britannia Inds; 6. Tata Steel; 7. Shree Cement; 8. Fund Folio (Shrugging off volatility)

Today’s top research idea

Maruti Suzuki: Cyclical pressures easing; Big picture intact

From its recent peak of USD85/bbl, the crude oil price has corrected by ~17%. Domestic PV industry – and also Maruti Suzuki (MSIL) – is highly influenced by the crude cycle, not just in terms of demand but also profitability.
The benefit of softening crude prices (which has translated in correction in fuel price by 5-8% from peak) and FX tailwinds (~4% JPYIN appreciation) should drive better demand/margins from 4QFY19.
Competitive launches are not much of a concern as MSIL’s pipeline remains strong, with at least two new launches (including full upgrade) per annum for the next 3-5 years. We expect the contribution from new models and product mix to improve 4QFY19 onward.
We remain positive on MSIL, given its (a) multi-year favorable product lifecycle, (b) better product mix aiding realizations/margins, (c) reducing JPY exposure, (d) lower capex intensity, (e) better FCF conversion and (f) improving RoIC.

Piping hot news

Zee plans strategic divestment to fuel global ambitions

Media and entertainment conglomerate Zee Entertainment Enterprises Ltd has decided to divest 50% of Essel Group’s shareholding in the company as it looks for a global strategic partner. The move would help it maximize long-term value and transform it into a global media-tech player with content offering for audiences in more than 170 countries.

14/11/2018 52 EN

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Motilal Oswal

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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MOSL: Morning India (14/November/18): 1. Maruti Suzuki; 2. Sun Pharma; 3. HDFC Std. Life; 4. Zee Entertainment; 5. Britannia Inds; 6. Tata Steel; 7. Shree Cement; 8. Fund Folio (Shrugging off volatility)

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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