MOSL: Morning India (3/November/17): 1. Bulls & Bears- 2. EcoScope- 3. Auto- 4. Coal India- 5. Vedanta- 6. Power Grid Corp.- 7. Hindalco- 8. Divi’s Lab
​MOrning India (3/November/17): 1. Bulls & Bears; 2. EcoScope; 3. Auto; 4. Coal India; 5. Vedanta; 6. Power Grid Corp.; 7. Hindalco; 8. Divi’s Lab
Today’s top research idea
- Hindalco: Novelis beats estimates with best-ever quarter; EBITDA guidance raised; raising target price; Reiterate Buy
- Novelis reported the historically best quarter, as adj. EBITDA grew 12% YoY to USD302m (7% beat) in 2QFY18, driven by higher volumes and margins. After a long time, beverage can volumes have started growing in North America.
- Interest cost declined 22% YoY to USD62m on refinancing of debt a few quarters ago. FCF came in strong at USD101m, despite working capital increase on higher LME. Novelis received USD314m from Kobe Steel toward Ulsan JV.
- Net debt/EBITDA is now at 3.5x. Novelis alone will contribute at least USD700m in net debt reduction during FY18. EBITDA guidance is raised by USD50m to USD1.2b for Novelis.
- We raise Novelis’ EBITDA by USD50-80m and Hindalco’s target price from INR309 to INR328. Re-iterate Buy.
Piramal Group in race to buy stakes in Binani Cement, Electrosteel Steels
The cash-rich Piramal Group is in the race to buy controlling stakes in Binani Cement and Electrosteel Steels after their lenders asked India’s top conglomerates to bid for distressed assets that have been referred to the National Company Law Tribunal (NCLT) following default on bank loans. The distressed asset fund of the Piramal Group would make the bids and had sought data from the lenders on the two companies, said a source close to the development.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.