Motilal Oswal - MOSL: Morning India (23/January/18): 1. Steel 2. Axis Bank 3. Asian Paints 4. Piramal Enterprises 5. Havells India 6. Dewan Housing 7. Tata Elxsi 8. Automobile 9. Aviation 10. Metals Weekly

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Motilal Oswal

Team Research

MOSL: Morning India (23/January/18): 1. Steel 2. Axis Bank 3. Asian Paints 4. Piramal Enterprises 5. Havells India 6. Dewan Housing 7. Tata Elxsi 8. Automobile 9. Aviation 10. Metals Weekly

MOrning India (23/January/18): 1. Steel; 2. Axis Bank; 3. Asian Paints; 4. Piramal Enterprises; 5. Havells India; 6. Dewan Housing; 7. Tata Elxsi; 8. Automobile; 9. Aviation; 10. Metals Weekly

Today’s top research theme

Steel: Upgrading earnings on improving long product prices; Expect bumper 4QFY18; JSP and NMDC are our top picks

Steel sector outlook has turned positive, with growth in industrial production across the world and supply-side discipline, despite slowing fixed asset investment.
Steel mills’ spreads are at new highs. Indian long product prices have spiked in the last few months, bridging the gap with flat products, driven by improvement in domestic demand and tightening of iron ore supply. JSP, SAIL and NMDC are the biggest beneficiaries.
Margins of Indian steel mills are on the uptick. We expect Indian steel mills to report very strong numbers in 4QFY18.
We are raising our EBITDA estimates by 10-15% for FY19 and rolling over our target price to FY20E earnings. JSP and NMDC are our top picks. We continue to like JSW Steel.

Piping hot news

HPCL may acquire MRPL in cash, share-swap deal

Hindustan Petroleum Corp. Ltd (HPCL) may acquire Mangalore Refinery and Petrochemicals Ltd (MRPL) in a cash and share-swap deal to become India’s third-largest oil refiner, a top official said.
Oil and Natural Gas Corp. Ltd (ONGC), India’s biggest oil and gas producer, last week announced acquisition of HPCL for Rs36,915 crore. After this takeover, ONGC has two refining subsidiaries—HPCL and MRPL.

23/01/2018 40 EN

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MOSL: Morning India (23/January/18): 1. Steel 2. Axis Bank 3. Asian Paints 4. Piramal Enterprises 5. Havells India 6. Dewan Housing 7. Tata Elxsi 8. Automobile 9. Aviation 10. Metals Weekly

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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