Motilal Oswal - MOSL: Morning India (15/November/21): 1. United Spirits (Emerging headwinds; fair valuations – downgrade to Neutral); 2. ONGC; 3. Grasim; 4. Info Edge (India); 5. Motherson Sumi; 6. Hero Motocorp; 7. Balkrishna

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Motilal Oswal

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MOSL: Morning India (15/November/21): 1. United Spirits (Emerging headwinds; fair valuations – downgrade to Neutral); 2. ONGC; 3. Grasim; 4. Info Edge (India); 5. Motherson Sumi; 6. Hero Motocorp; 7. Balkrishna

MOrning India (15/November/21): 1. United Spirits (Emerging headwinds; fair valuations – downgrade to Neutral); 2. ONGC; 3. Grasim; 4. Info Edge (India); 5. Motherson Sumi; 6. Hero Motocorp; 7. Balkrishna Inds; 8. Ashok Leyland

Today’s top research idea

United Spirits: Emerging headwinds; fair valuations – downgrade to Neutral

United Spirits (UNSP) has been the second best performer in our Coverage Universe since our upgrade to Buy rating in Jan'21, with the stock price moving up nearly 60% since.
The strategic refresh under the new CEO as well as the ongoing strategic review of the Popular portfolio offer scope for sustained double-digit volume-led topline growth as well as sharper margin improvements going forward.
However, valuations at 62.3x on a standalone basis leave little room for any upside and while it may appear cheaper than the other discretionary stocks under our coverage, the government-dependent nature of the Alcobev sector with regard to procurement, pricing, distribution, and receivables prevents us from increasing our target multiples for UNSP.
We maintain our forecasts and TP and downgrade to Neutral.

Piping hot news

Healthcare giant Johnson & Johnson to split into two companies

Healthcare conglomerate Johnson & Johnson said on Friday it is planning to break up into two companies, splitting off its consumer health division that sells Band-Aids and Baby Powder from its large pharmaceuticals unit.

15/11/2021 64 EN

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MOSL: Morning India (15/November/21): 1. United Spirits (Emerging headwinds; fair valuations – downgrade to Neutral); 2. ONGC; 3. Grasim; 4. Info Edge (India); 5. Motherson Sumi; 6. Hero Motocorp; 7. Balkrishna

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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