Motilal Oswal - MOSL: Morning India (1/September/17)-1. EcoScope (1QFY18 real GDP growth slips below 6%) 2. Larsen Toubro (Annual Report Update)

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Motilal Oswal

Team Research

MOSL: Morning India (1/September/17)-1. EcoScope (1QFY18 real GDP growth slips below 6%) 2. Larsen & Toubro (Annual Report Update)

â€‹MOrning India (1/September/17): 1. EcoScope (1QFY18 real GDP growth slips below 6%); 2. Larsen & Toubro (Annual Report Update)

Todayâ€™s top research theme

Larsen & Toubro: Deep dive into subsidiary annual reports

Key takeaways from our analysis of LT's subsidiary annual reports:

â€‹Investments in subsidiaries/JVs were contained at INR197b (+3% YoY, 35% of capital employed). This is in line with LT's strategy to limit further investments in subsidiaries/JVs and make them self-funding.
Performance of Heavy Steel & Forgings and MHPS TG JV was below par - TG JV achieved PNY breakeven.
Losses at Infrastructure Development (P) narrowed to INR2.6b (INR7.3b in FY17), helped by termination/restructuring of three road projects.
Nabha Power reported a loss in FY17 led by ECL provision.
L&T Realty's sales increased 28% YoY to INR25b, driven by Seawoods mall sale and residential project in Chennai.
Hydrocarbon segment's orders and profitability surged in FY17.
We maintain Buy with SOTP-based TP of INR1,340 (E&C business at 25x FY19E EPS). LT remains our top pick in the sector - we believe it is an attractive play on a recovery in industrial and infrastructure capex in India.

Piping hot news

India GDP growth rate slumps to 5.7% in Q1 in challenge for economy

â€‹India's economic growth unexpectedly slowed to 5.7% in the June quarter, the slowest pace in three years, underlining the disruption caused by the uncertainty related to the rollout of the goods and services tax (GST) even as the Indian economy is struggling to recover from a shock demonetisation.

01/09/2017 20 EN

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MOSL: Morning India (1/September/17)-1. EcoScope (1QFY18 real GDP growth slips below 6%) 2. Larsen & Toubro (Annual Report Update)

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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