EUR 120.00 For Business Accounts Only

MOSL: Morning India (30/January/20): 1. IIFL Wealth Management (Building unique business model); 2. Bajaj Finance; 3. Godrej Consumer; 4. Pidilite Inds; 5. Jubilant Foodworks

MOrning India (29/January/20):  1. Consumer (Rural India – Green shoots visible, but pace of growth uncertain); 2. Ecoscope (Pre-Budget III); 3. Maruti Suzuki; 4. Airtel Africa; 5. United Spirits; 6. M & M Fin. Serv.; 7. Cummins India; 8. Team Lease Serv.

 

Today’s top research idea

Consumer: Rural India – Green shoots visible, but pace of growth uncertain

• Once a key volume driver for Consumer companies, rural growth has been on a continuous slide for the past five quarters. Nielsen's data released on 21st Jan'20 too suggests continued slowdown in rural growth for the Dec'19 quarter. In fact, rural growth has slipped below urban growth for two successive quarters now.
• However, the worst now seems to be over based on the recent data on WPI food inflation, lower agri input costs and improved government spending post elections. High reservoir levels post the monsoon season augur well for Rabi crop cash flows.
• Questions, though remain on the pace of the recovery as corporate commentary over the past two months has turned incrementally negative.
• To play the rural recovery story - although the pace of revival may be slower than anticipated - we prefer HUVR for its nimbleness and CLGT for its newfound aggressiveness.

Piping hot news

Gadkari unveils InvIT road map for NHAI, initial target ₹20,000 cr

The National Highways Authority of India (NHAI) will initially raise ₹15,000-20,000 crore in its maiden InvIT offer and then go for a larger round, depending on the response it receives from investors, Union minister Nitin Gadkari said. NHAI’s InvIT offer, expected in the months ahead, is part of the government’s plans to tap alternative sources of financing to boost public spending in the roads and infrastructure sector amid declining private sector interest in the build, operate and transfer model, where the entire initial cost is borne by them.