Motilal Oswal - MOSL: Morning India (25/June/18): 1. Tata Motors; 2. Oil Gas; 3. Reliance Industries (ART); 4. EcoScope; 5. Phoenix Mills

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Motilal Oswal

Team Research

MOSL: Morning India (25/June/18): 1. Tata Motors; 2. Oil & Gas; 3. Reliance Industries (ART); 4. EcoScope; 5. Phoenix Mills

MOrning India (25/June/18): 1. Tata Motors; 2. Oil & Gas; 3. Reliance Industries (ART); 4. EcoScope; 5. Phoenix Mills

Today’s top research idea

Tata Motors: Margin improvement driven by RM cost and operating leverage; Capex for FY19-21 pegged at GBP4.5b pa; FCF negative till FY20

I-Pace UK supplies will start from next week, as it was training its dealer network for EV launch. It has order book of 6 months, with launch in other markets in coming months.
MLA platform is scalable architecture utilizing efficiently modular commonalities. It is agnostic to propulsion systems. Every product launched after 2020 will be based on this MLA architecture, and offer some form of electrification.
JLR maintained its EBIT margin guidance of 4-7% over FY19-21, and 7-9% beyond that. JLR's EBIT margin improvement hinges on three areas a) higher revenue growth driven by exciting new products and mix improvement, b) c) cost efficiencies from efficient sourcing and MLA platform, and c) realizing operating leverage.
It plans to invest GBP4.5 pa till FY21 and 12-13% of sales post FY21 (v/s 15-16% currently). Based on its estimates for EBIT margins and Capex, it expects negative FCF over FY19-20 and positive FCF only from FY21. Buy with TP of INR431 (SOTP).

Piping hot news

HDFC, Kotak Bank eye PNB Housing Finance

Housing Development Finance Corp and Kotak Mahindra Bank are competing for a controlling stake in PNB Housing Finance as they aim to gain wider coverage in a mortgage market that’s seen among the safest of havens in the lending world, said people with knowledge of the matter.

25/06/2018 24 EN

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MOSL: Morning India (25/June/18): 1. Tata Motors; 2. Oil & Gas; 3. Reliance Industries (ART); 4. EcoScope; 5. Phoenix Mills

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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