FREE

MOSL: Morning India (18/December/18)- 1. Indraprastha Gas -2. ABB (ABB to sell Power grid business to Hitachi-3. Healthcare (Green-shoot in domestic formulations)-4. Utilities (Draft regulations 2019-24: CERC k

MOrning India (18/December/18): 1. Indraprastha Gas (The engine running well on CNG); 2. ABB (ABB to sell Power grid business to Hitachi for EV of USD11b); 3. Healthcare (In-licensing: Green-shoot in domestic formulations); 4. Utilities (Draft regulations 2019-24: CERC keeps RoE unchanged)

 

Today’s top research idea

Indraprashta Gas: The engine running well on CNG

• Led by higher private conversion to CNG-fitted engines, the focus on reducing consumption of polluting fuels by industries/commercial establishments, increasing restriction on diesel vehicles and the higher cost differential between diesel and petrol/CNG vehicles, IGL is expected to continue delivering lower-double-digit growth over the near-to-medium term.
• Penetration in newer areas like Gurugram, Rewari and Karnal would also boost sales volume. Wider access to gas would encourage intercity/highway travel on CNG. Saving with respect to petrol/CNG would result in stable EBITDA/scm for the company.
• Valuing IGL at 24.3x Dec'21 EPS and adding contribution from its JVs, we reiterate Buy with a target price of INR381.

Piping hot news

Pharma exports cross $11 bn, may beat FY18 high of $17 bn

• Pharmaceutical exports have raced past the $11-billion mark in the first 7 months of this fiscal. Exports stood at $17.27 billion in FY18. “If the trend continues, we will cross $20 billion, [or] at least $19 billion,” Pharmaceuticals Export Promotion Council of India director general Ravi Uday Bhaskar said on Monday.