EUR 120.00 For Business Accounts Only

MOSL: Morning India (14/October/19): 1. Infosys (Outperformance calls for multiple convergence); 2. Avenue Supermarts; 3. Cipla; 4. Bharat Forge; 5. Shoppers Stop; 6. Ecoscope; 7. India Life Insurance; 8. Power

MOrning India (14/October/19): 1. Infosys (Outperformance calls for multiple convergence); 2. Avenue Supermarts; 3. Cipla; 4. Bharat Forge; 5. Shoppers Stop; 6. Ecoscope; 7. India Life Insurance; 8. Power & Coal monthly

 

Today’s top research idea

Infosys: Outperformance calls for multiple convergence

• Infosys reported revenue growth of 11.4% YoY CC and EBIT margin of 21.7%. Operationally result was marginally above estimate. On an organic basis , Communications, Energy/Utilities/Resources, Manufacturing and Hi-tech) delivered double-digit YoY CC growth. However weakness in capital markets in US and interest rate concerns in European banks led to underperformance in BFS. Weak consumer confidence and the resultant softness in IT spend by retail companies resulted in disappointing growth in Retail.
• INFO reiterated that cost discipline will be the key focus area and that it will deploy levers such as automation, onsite-offshore effort rationalization and pyramid correction to recover margins. We expect profitability to inch up over the next two quarters with an exit margin of 22%+. On an overall level this would mean an earnings upgrade by 5%.

Piping hot news

DHFL inks pact to sell its entire wholesale book

Dewan Housing Finance Corp. Ltd has signed a nonbinding term sheet with Oaktree Capital to sell its entire Rs 35,000-crore wholesale book. The agreement is valid until February. Banks have signed the intercreditor agreement (ICA) and are working on the resolution proposal submitted by DHFL management, including converting part debt into 51% equity. This will see the stake of the Wadhawan family, the promoters, halve to 20%.