Motilal Oswal - MOSL: Morning India (28/November/19): 1. UltraTech Cement (Revival of Century assets to support earnings growth); 2. LT Finance Holdings; 3. Aegis Logistics

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Motilal Oswal

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EUR 120.00 For Business Accounts Only

MOSL: Morning India (28/November/19): 1. UltraTech Cement (Revival of Century assets to support earnings growth); 2. L&T Finance Holdings; 3. Aegis Logistics

MOrning India (28/November/19): 1. UltraTech Cement (Revival of Century assets to support earnings growth); 2. L&T Finance Holdings; 3. Aegis Logistics

Today’s top research idea

UltraTech Cement: Revival of Century assets to support earnings growth; Strong FCF to drive deleveraging, RoE improvement

Century assets generated nil EBITDA in 2QFY20, impacting UTCEM's profitability by 10%.
EBITDA/t was down to INR1,021 (INR1,131 excluding Century) in the quarter.
In this note, we present (a) the premise for our expectation of an improvement in profitability of Century and (b) the case studies on the turnaround of the other two acquisitions - JPA and Binani.
With limited capex needs going forward, strong FCF generation (~7% yield) will likely drive deleveraging and 550bps improvement in RoE over the next two years.

Against this promising backdrop, we maintain our positive stance on UTCEM - our top pick in the sector with a Target Price of INR 5,050.

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Two former directors of Zee Entertainment NSE -0.06 % - Subodh Kumar and Neharika Vohra - who resigned from its board, had raised concerns over several issues, including Rs 2,200 crore film advance given in 2018-19, according to a regulatory filing by the firm.

28/11/2019 3 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/November/19): 1. UltraTech Cement (Revival of Century assets to support earnings growth); 2. L&T Finance Holdings; 3. Aegis Logistics

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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