MOSL: Morning India (31/July/19): 1. Axis Bank; 2. Tech Mahindra; 3. Hero Motocorp; 4. Piramal Enterprises; 5. Bharat Electronics; 6. Chola. Inv. & Fin; 7. Sanofi India; 8. Castrol India
MOrning India (31/July/19): 1. Axis Bank; 2. Tech Mahindra; 3. Hero Motocorp; 4. Piramal Enterprises; 5. Bharat Electronics; 6. Chola. Inv. & Fin; 7. Sanofi India; 8. Castrol India
Today’s top research Idea
Axis Bank: Muted quarter; Asset quality pressures drive cut in estimates
- AXSB reported 1QFY20 PAT of INR13.7b (our estimate: INR16.5b), impacted by higher provisions. Other income grew 32% YoY to INR38.6b, led by treasury gains of INR8.3b and strong traction in retail fee (+28% YoY).
- Fresh slippages increased to INR48b, while upgrade/recoveries (INR21.8b) and write-offs (INR30b) facilitated a 1% QoQ decline in GNPA. AXSB downgraded INR22.4b of stressed assets into the BB & below pool, resulting in a flattish trend in BB and below assets at INR75b. The bank disclosed total (fund + non-fund) exposure to eight stressed accounts of INR122b, of which INR51b is already part of BB & below or NPA.
AXSB has delivered a modest quarter in a challenging economic environment. However, core operating profitability is getting good, helping to mitigate some credit cost pressures. Improvement in RoA / RoE matrix will be a key to sustain the stock's performance.
Piping hot news
RBI eases end-use norms for external commercial borrowings by corporates, NBFCs
The Reserve Bank of India (RBI) on Tuesday relaxed norms for end-use of money raised through external commercial borrowings (ECBs). The central bank said that ECBs with a minimum average maturity period of seven years can be availed for repayment of rupee loans availed domestically for capital expenditure as also by NBFCs for on-lending for the same purpose.
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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