Motilal Oswal - MOSL: Morning India (3/September/18): 1. Piramal Enterprises; 2. AGIC: Bankruptcy Insolvency Day; 3. EcoScope: 1QFY19 GDP growth better than expectations; 4. Automobiles; 5. ART| ZEE Entertainment; 6. EcoScop

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Motilal Oswal

Team Research

MOSL: Morning India (3/September/18): 1. Piramal Enterprises; 2. AGIC: Bankruptcy & Insolvency Day; 3. EcoScope: 1QFY19 GDP growth better than expectations; 4. Automobiles; 5. ART| ZEE Entertainment; 6. EcoScop

MOrning India (3/September/18): 1. Piramal Enterprises; 2. AGIC: Bankruptcy & Insolvency Day; 3. EcoScope: 1QFY19 GDP growth better than expectations; 4. Automobiles; 5. ART| ZEE Entertainment; 6. EcoScope: Monsoon

Today’s top research idea

Piramal Enterprises: Builds up a head of steam in Financial Services; Focus more on profitability than growth; looks to be among top 10 HFCs

Piramal Enterprises (PIEL) hosted an analyst meet to discuss its Financial Services business in detail. Management believes that opportunities in corporate lending are aplenty, given that most public sector banks and some private sector banks are not so active in this space. Hence, while bulk of its loan book (~75%) is wholesale real estate lending, management expects the share of non-real estate corporate lending to expand meaningfully over the next three years.

Before investing/lending in any segment, the company does a deep study of the sector, which usually takes around six months. To the company's advantage, several executives in the corporate lending team have good working experience in the respective industries.
Management has a clear intention to generate at least 20% RoE across businesses over the long term. PIEL does not have any 'growth' targets for its executives - the only targets are on RoE/profitability and asset quality.
With a favorable operating environment (waning competition from PSU banks, better transparency due to RERA, etc.), strong management at helm of affairs and adequate capital, we believe PIEL is well poised to capture the growth opportunities that exist in the wholesale lending space.

03/09/2018 36 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 (3/September/18): 1. Piramal Enterprises; 2. AGIC: Bankruptcy & Insolvency Day; 3. EcoScope: 1QFY19 GDP growth better than expectations; 4. Automobiles; 5. ART| ZEE Entertainment; 6. EcoScop

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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