EUR 120.00 For Business Accounts Only

MOSL: Morning India (18/March/20): 1. Endurance Technologies (All EU plants working, but utilizations down); 2. Cipla (Goa site warning letter content out); 3. EcoScope

Morning India (18/March/20):

Today’s top research Idea
Endurance Technologies – All EU plants working, but utilizations down; India business as usual, but 1QFY21 to be slow on BS6 transition

** All of ENDU’s 9 plants (6 in Italy + 3 in Germany) in EU are operational. ENDU’s plants in Italy are primarily located in the Turin region, while Lombardy and Venice regions are facing shutdowns.

** EU operations are meeting 100% of its production schedules and have not lost any business, though operating rates have reduced.

** Over the last 6-7 years, Italian plants have strategically shifted focus toward German customers, which is now reflected in VW group being its largest customer.

** Production schedules in India are yet to see any material change. However, 1QFY21 could see some changes as they transit to BS6 in this environment.

** ENDU has benefitted from the supply disruption in China. One of the OEMs has brought forward the sourcing of brakes from ENDU due to the disruption.

** Exports from India are so far normal. ENDU exports machined castings to Getrag in Mexico, the UK and France.

 Piping hot news
Altico Capital’s Lenders Accept Offer By SSG Capital
Stressed real estate lending firm Altico Capital Ltd. is set to get resolved as the lending consortium has accepted an offer by Hong Kong-based stressed asset investor SSG Capital. Lenders led by State Bank of India have accepted an offer in which SSG Capital will offer Rs 2,754 crore upfront and pay the rest of the settlement over time through security receipts, SBI Capital Markets said in a statement.