Motilal Oswal - MOSL: Morning India (25/October/17)-1. Financials-2. Endurance Tech-3. Allcargo Logistics-4. Consumer-5. HDFC Bank-6. Infosys-7. Asian Paints-8. Ambuja Cement-9. Zee Entertainment

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Motilal Oswal

Team Research

MOSL: Morning India (25/October/17)-1. Financials-2. Endurance Tech-3. Allcargo Logistics-4. Consumer-5. HDFC Bank-6. Infosys-7. Asian Paints-8. Ambuja Cement-9. Zee Entertainment

â€‹MOrning India (25/October/17): 1. Financials; 2. Endurance Tech; 3. Allcargo Logistics; 4. Consumer; 5. HDFC Bank; 6. Infosys; 7. Asian Paints; 8. Ambuja Cement; 9. Zee Entertainment

Todayâ€™s top research idea

Financials: Government announces big bang capital infusion plan for PSBs

The Government of India has announced a PSU Bank recapitalization plan amounting to INR2.1t (48% of PSU banksâ€™ current market cap).

Of the total allocation of INR2.1t, we believe that INR750-800b will go toward meeting the Basel III capital requirements and supporting business growth, while the remaining ~INR1.3t can be utilized to make higher provisions.

Impact analysis - Coverage ratio improvement: from 43% to 62% at sector level; Dilution range- 6% to 57%, FY18E ABV increase range â€“ 6% to 31%, Govt. shareholding increase range â€“ 6% to 29%. We turn constructive on PSU banks and will soon review our estimates/PT.

We believe that banks which are short on capital and having higher quantum of bad loans will stand to benefit more. We reiterate our BUY rating on PNB, SBIN & BOB.

Piping hot news

Govt clears Rs 2.11 lakh crore bank recapitalisation plan

â€‹With economic revival being big on the agenda, the government on Tuesday unveiled a Rs 2.11-lakh crore support for public sector banks (PSBs), struggling with mounting bad loans, in order to spur â€œgenuineâ€ infrastructure lending for upcoming mega projectsâ€¦

25/10/2017 46 EN

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MOSL: Morning India (25/October/17)-1. Financials-2. Endurance Tech-3. Allcargo Logistics-4. Consumer-5. HDFC Bank-6. Infosys-7. Asian Paints-8. Ambuja Cement-9. Zee Entertainment

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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