MOSL: Morning India (21/November/17)-1. Bharat Electronics-2. Quess Corp-3. Gas (Expert Speak)-4. NTPC-5. Aviation-6. Metals Weekly

​MOrning India (21/November/17): 1. Bharat Electronics; 2. Quess Corp; 3. Gas (Expert Speak); 4. NTPC; 5. Aviation; 6. Metals Weekly

Today’s top research idea

• Bharat Electronics: Highlighting key pillars of growth; Four key drivers crucial for sales and earnings growth
  
• In our view, there are four key pillars crucial to BHE’s sales and earnings growth over the next few years. These include:
  
• (a) Success in large systems programmes such as Quick Reaction Surface to Air Missile, Battle Management System and Tactical Communication System,
  
• (b) Expansion of customer base with strategic partnership (SP) model and addition of private sector players to existing kitty of customers. The four platforms which are first off the block under the SP model are Submarine, Single engine aircraft, Naval helicopters and Future Ready Combat Vehicles,
  
• (c) Increase in exports from 5% of sales in FY17 to 10%, primarily to friendly neighboring countries and;
  
• (d) Retention of market share in defense electronics where BHE has enjoyed 60-65% share. With more orders being opened up for the private sector, it is critical that BHE maintains its share and also grows the same.
  

Piping hot news

GST rate cut: FMCG firms asked to update MRPs immediately

• Central Board of Excise and Customs (CBEC) chairperson Vanaja Sarna has written to fast-moving consumer goods (FMCG) companies asking them to immediately revise the maximum retail price (MRP) on all products in line with the GST rate cut announced by the GST Council on 10 November. The GST Council, in its Guwahati meeting on 10 November, announced GST rate cut for 178 items, leaving only 57 products in the top tax slab of 28%.