EUR 120.00 For Business Accounts Only

MOSL: Morning India (19/August/19): 1. India Strategy (All-round miss; earnings downgrade risks elevated); 2. Jindal Steel; 3. Brigade Enterpr.; 4. KNR Construct.; 5. Sadbhav Engg.; 6. Repco Home Fin; 7. Gatewa

MOrning India (19/August/19):

Today’s top research theme
India Strategy: All-round miss; earnings downgrade risks elevated
** Both the Nifty and MOFSL Universe's performance in 1QFY20 was below our expectations. Like in the previous quarter, 1QFY20 profits were entirely driven by Banks off a low base (accounted for more than 100% of incremental profits). Aggregate sales/ EBITDA were largely in line, while PAT missed our estimates. The performance was dragged disproportionately by Oil & Gas, Metals and Autos.

** Domestic Cyclicals drove the quarterly performance, led by Financials. Defensives' growth was dragged by Telecom losses, while Global Cyclicals posted a 26% YoY profit decline. Share of Domestic Cyclicals in the profit pool is highest in a decade at 42%.

** 93 companies in the MOFSL Universe witnessed earnings cut of 3%+ and 33 companies witnessed upgrades of 3%+. 50 companies under our universe have seen earnings cut of >10%. Our FY20/21 Nifty EPS estimates have been cut by 3.9/2.9% to INR560/671. We expect Nifty EPS to grow 16.4% in FY20 and 19.7% in FY21.

 Piping hot news
EESL inks MoU with Apollo Hospitals to boost EV charging infra
In a first, India's EESL - responsible for replacing Govt’s vehicles with new-energy cars, has signed a 10-year agreement with APHS IN to install public charging stations at its hospitals across country. The state-run co. will make the entire upfront investment and deploy staff for operation and maintenance. Energy Efficiency Services Limited (EESL), a joint venture of PSUs under the Union ministry of power on Sunday said it has signed a 10-year memorandum of understanding (MoU) with Apollo Hospital Enterprises Ltd, to install public charging stations in its hospitals across the country to boost e-mobility.