MOSL: Morning India (16/November/17): 1. Fund Folio (Oct-17)- 2. Britannia Inds.- 3. Fortis Health.- 4. CEAT- 5. Manpasand Beverages- 6. Repco Home Fin.- 7. KNR Construction- 8. Prime Focus- 9. Indo Count Inds

​MOrning India (16/November/17): 1. Fund Folio (Oct-17); 2. Britannia Inds.; 3. Fortis Health.; 4. CEAT; 5. Manpasand Beverages; 6. Repco Home Fin.; 7. KNR Construction; 8. Prime Focus; 9. Indo Count Inds

Today’s top research idea

• Britannia Industries: Best-of-breed earnings growth visibility commands premium multiples
  
• BRIT reported 7.4% YoY consolidated sales growth in 2QFY18. Standalone sales too were up by 7.8% YoY.
  
• We are enthused with the consistent healthy performance in a difficult operating environment. Rapidly expanding distribution, continuing investment in R&D and significant expansion of its own manufacturing indicate management's optimism about the growth prospects. Opportunity beyond biscuits is also substantially high. Continuing premiumization, significant incremental cost savings and a favorable commodity cost outlook mean that 15% EBITDA margin is now achievable.
  
• We maintain Buy with a target price of INR5,845 (46x December 2019E EPS, 20% premium to three-year average due to improving visibility on both volume recovery and margin growth).
  

Piping hot news

Decks cleared for first mega CEZ; 45 companies may invest Rs 15k-crore in phase-I

• The government has given the go-ahead for setting up India’s first mega coastal economic zone (CEZ) at the Jawaharlal Nehru Port in Maharashtra as part of a plan to develop 14 such industrial clusters to spur manufacturing and generate jobs. About 45 companies across telecom, auto and IT sectors will soon bid for 200 hectares of land to set up manufacturing units in the zone, senior officials told ET.