Motilal Oswal - MOSL: Morning India (18/May/18): 1. India Strategy (Contrarian Investing); 2. Eicher Motors; 3. Bajaj Finance; 4. Britannia Inds; 5. Voltas; 6. Muthoot Finance; 7. Quess Corp; 8. SRF

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Motilal Oswal

Team Research

MOSL: Morning India (18/May/18): 1. India Strategy (Contrarian Investing); 2. Eicher Motors; 3. Bajaj Finance; 4. Britannia Inds; 5. Voltas; 6. Muthoot Finance; 7. Quess Corp; 8. SRF

MOrning India (18/May/18): 1. India Strategy (Contrarian Investing); 2. Eicher Motors; 3. Bajaj Finance; 4. Britannia Inds; 5. Voltas; 6. Muthoot Finance; 7. Quess Corp; 8. SRF

Today’s top research idea

Eicher Motors: All set for next leg of growth; Driven by high-potential, under represented BIMARU states

We see high growth potential in key motorcycling markets like BIMARU (Bihar, MP, Rajasthan and UP). These under-penetrated 2W markets offer higher scope for aspirational products like RE. RE's market share in these states is currently 3-4% (v/s 6% for pan-India).
Our state-wise demand model indicates 20% CAGR in domestic volumes over FY18-20. However, considering capacity constraints we model ~16% volume CAGR.
RE is focused on creating a mark in developing markets like LatAm and South East Asia. We believe that export markets can be a meaningful contributor to volumes in five years, but ramp-up would be back-ended.
We expect EPS to grow 30% CAGR over FY18-20E. Buy with TP of INR35,572 (FY20E).

Piping hot news

Oil hits $80, highest since Nov 2014, on Iran concerns

Oil prices hit $80 a barrel on Thursday for the first time since November 2014 on concerns that Iranian exports could fall because of renewed U.S. sanctions, reducing supply in an already tightening market.

18/05/2018 36 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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Team Research

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MOSL: Morning India (18/May/18): 1. India Strategy (Contrarian Investing); 2. Eicher Motors; 3. Bajaj Finance; 4. Britannia Inds; 5. Voltas; 6. Muthoot Finance; 7. Quess Corp; 8. SRF

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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