EUR 120.00 For Business Accounts Only

MOSL: MOrning India (4/November/19): 1. Automobiles (Oct‘19 wholesales: More positives than negatives); 2. IOCL; 3. Dr Reddy's Lab; 4. Colgate-Palmolive; 5. JSW Energy; 6. Escorts; 7. Laurus Labs; 8. V-Mart Ret

MOrning India (4/November/19): 1. Automobiles (Oct‘19 wholesales: More positives than negatives); 2. IOCL; 3. Dr Reddy's Lab; 4. Colgate-Palmolive; 5. JSW Energy; 6. Escorts; 7. Laurus Labs; 8. V-Mart Retail; 9. JK Lakshmi Cement

 

Today’s top research idea

Autos: Oct-19 Wholesales: More positives than negatives; Record retails help in correcting inventory

• Oct-19 wholesales were more positive than negative. While retails set new records, OEMs focus on inventory correction resulted in YoY decline in 2Ws, PVs & tractors. However, CVs continued to disappoint.
• 2W volumes declined ~15% YoY, despite good pick-up in festive sales, as OEMs corrected inventory material (from 55-65 days to 30 days). BJAUT 2W volumes declined ~13% YoY, TVS declined by ~20% and HMCL declined by ~18%. RE volumes grew 2% YoY (+21% MoM).
• PVs saw good recovery during Diwali and under control inventory resulted in just 2% YoY decline in volumes. MSIL volume grew ~4.5% (+25% MoM) led by new products like XL6 & S-Presso, however MM (UVs incl pick-ups) volumes declined ~13% YoY (+25.5% MoM).
• CVs wholesales were in-line. While M&HCV volume disappointed with 51% YoY drop (-4% MoM), LCV volumes were better than estimates (declined 19% YoY, +5% MoM). TTMT CV volume declined (~36% in-line), AL (40% decline) was in-line and VECV (~37% decline) was ahead of our estimates.

Piping hot news

Easing burden on telecom companies: Govt panel mulls repayment of AGR dues over 20 years

The government panel considering relief for the telecom sector is looking at a repayment period of as much as 20 years for adjusted gross revenue (AGR) dues — with possibly an initial moratorium — based on the net present value (NPV) method to ease the burden on heavily indebted companies. It will also consider a reduction in the total incidence of taxation to help the troubled sector and separately reach out to the regulator to consider some floor on tariffs to help with viability.