MOSL: Morning India (6/August/18): 1. Titan Company; 2. Marico; 3. Nestle India; 4. SAIL; 5. Divi's Lab; 6. Ramco Cement; 7. PI Inds; 8. KEC Intl; 9. Laurus Labs; 10. Hero Motocorp
MOrning India (6/August/18): 1. Titan Company; 2. Marico; 3. Nestle India; 4. SAIL; 5. Divi's Lab; 6. Ramco Cement; 7. PI Inds; 8. KEC Intl; 9. Laurus Labs; 10. Hero Motocorp
Today’s top research idea
Titan Company: Jewellery market share continues expanding
- Titan results were better than expected with consol. revenue (incl. other operating income) up 9.4% YoY to INR44.5b (est. of INR42.6b). EBITDA up 32.3% YoY to INR4.8b (est. of INR4.3b) and recurring PAT up 31.9% YoY to INR3.3b (est. of INR3.0b).
- Reported Jewelry sales rose 6.3% YoY to INR36.4b, with segment margin up 110bp YoY to 10.5% due to high base in 1QFY18. Watches sales grew 15% YoY to INR6b, with a sharp EBIT margin improvement of 900bp to 16.7%.
- Jewelry business growth prospects remain robust, and Watches and now Eyewear have also started contributing to growth. High valuations are fully deserved for a business that has perhaps the best top-line growth potential in the large cap FMCG/retail space and also has improving outlook on margins. Maintain Buy with an unchanged target price of INR1,130 based on 52x Jun'20E EPS (25% premium to three-year average P/E).
Piping hot news
Indian Oil to invest ₹ 1.75 trillion for expansion: Chairman Sanjiv Singh
- Indian Oil Corp, Ltd, the country’s largest oil firm, plans to invest ₹ 1.75 trillion to nearly double its refinery capacity, boost petrochemical production, expand gas business and lay new pipelines to become a vertically integrated company, its chairman Sanjiv Singh said. Indian Oil plans to increase its refining capacity to 150 million tonnes per annum by 2030 from 80.7 million tonnes now. It currently owns and operates 11 out of the 23 oil refineries in the country.
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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