Motilal Oswal - MOSL: Morning India (28/June/17)-1. Financials (INR6t opportunity in affordable housing finance)-2. Technology-3. Titan Company; 4. United Spirits

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Motilal Oswal

Team Research

MOSL: Morning India (28/June/17)-1. Financials (INR6t opportunity in affordable housing finance)-2. Technology-3. Titan Company; 4. United Spirits

â€‹MOrning India (28/June/17): 1. Financials (INR6t opportunity in affordable housing finance); 2. Technology; 3. Titan Company; 4. United Spirits

Todayâ€™s top research idea

Titan Company: Ambitious 20% CAGR targeted in Jewelry sales; Fair valuations limit upside

â€‹Management outlined the five key pillars that would help it achieve targeted growth of 2.5x over the next five years (20% CAGR): (1) Wedding Jewelry, (2) High-value Diamond Jewelry, (3) Golden Harvest Scheme, (4) Store Addition and (5) Market Share Growth.
The company is also investing in loyalty programs, a weak area.
Higher compliance focus under the GST regime should boost growth.
Valuations at 42.2x FY19E are fair for a business with~20% RoEs, and earnings CAGR is expected at 16%. Watches and Eyewear segments continue to be a bit of drag on overall earnings growth. We maintain Neutral rating with a target price of INR525 (valued at 41x June-2019E EPS, in line with three-year average multiple).

Piping hot news

Bankruptcy proceedings started against Essar Steel, Monnet Ispat

Essar Steel Ltd and Monnet Ispat and Energy Ltd have become the first of the 12 big bad loans cases identified by the Reserve Bank of India (RBI) against which bankruptcy proceedings have been filed, said two people aware of the matter.

28/06/2017 26 EN

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Motilal Oswal

Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.

Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.

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MOSL: Morning India (28/June/17)-1. Financials (INR6t opportunity in affordable housing finance)-2. Technology-3. Titan Company; 4. United Spirits

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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