FREE

MOSL: Morning India (24/May/18): 1. India Strategy (4QFY18 Interim Earnings Review); 2. Ecoscope; 3. Tata Motors; 4. IOCL; 5. Grasim Inds; 6. Motherson Sumi

MOrning India (24/May/18): 1. India Strategy (4QFY18 Interim Earnings Review); 2. Ecoscope; 3. Tata Motors; 4. IOCL; 5. Grasim Inds; 6. Motherson Sumi

 

Today’s top research Theme

India Strategy: 4QFY18 interim earnings review; Results largely in line excluding PSB and Private Corporate Banks; Consumption picking up

• The 4QFY18 earnings season for the MOSL Universe and the Nifty has so far been broadly in line, excluding PSBs and private corporate banks, which dragged profit growth owing to accelerated provisioning post the new Feb'18 RBI framework on asset quality.
• For the MOSL Universe, sales, EBITDA and PAT grew 15.3%, 5.2% and (26.4%) YoY, as against expectations of 15.3%, 6.0% and 5.5%, respectively. Excluding PSU banks and private corporate banks (which saw a rise in slippages and provisioning post the new RBI framework), sales, EBITDA and PAT grew 16.3%, 12.1% and 14.3% v/s expectations of 16.4%, 10.6% and 11.3%, respectively.
• Sales, EBITDA and PAT for the 38 Nifty companies have grown at 15.7%, 9.9% and (2.2%), as against expectations of 15.4%, 7.7% and 12.7%, respectively. Of the 38 Nifty companies that have declared their results, 24 have either met or exceeded our estimates.
• Top FY19E Nifty EPS upgrades: Tata Steel (30%), IndusInd Bank (6%), Indiabulls Housing Finance (4%), Yes Bank (4%) and Reliance Industries (3%). Top FY19E Nifty EPS downgrades: Dr. Reddy (22%), Axis Bank (21%), Vedanta (15%), Bharti Infratel (10%), Lupin (10%), Zee Entertainment (6%) and Cipla (5%).

Piping hot news

Rupee closes at 18-month low against US dollar

• The Indian rupee on Wednesday weakened to 18-month low against the US dollar after foreign institutional investors (FIIs) continued to sell in the local equity and debt markets following the global trend amid surging crude oil prices.