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MOSL: Morning India (7/August/18): 1. Maruti Suzuki (Annual Report Update); 2. Britannia Inds; 3. Arvind; 4. ENIL; 5. Indo Count Inds; 6. Economy; 7. Room Aircon; 8. Metals Weekly

MOrning India (7/August/18): 1. Maruti Suzuki (Annual Report Update); 2. Britannia Inds; 3. Arvind; 4. ENIL; 5. Indo Count Inds; 6. Economy; 7. Room Aircon; 8. Metals Weekly

 

Today’s top research idea

Maruti Suzuki (Annual Report Update): Preparing to stay ahead in the race

• MSIL expects double-digit growth in FY19, driven by continued strength in rural markets.
• The company remains fully committed to launch a full EV in India in 2020, supported by access to technology from Toyota. In the interim, it will launch a strong hybrid vehicle.
• While nine of its models already comply with crash test norms, it is preparing for CAFE phase-2 norms (applicable from Apr-22) after complying with phase-1.
• MSIL continues expanding its network, adding ~315 sales outlets in FY18. It now has ~2,627 outlets in 1,735 cities. Also, MSIL is at various stages of acquiring land at ~370 locations in top 10 cities.
• It is taking several initiatives to reduce JPY exposure, including development of a local source for high tensile steel and enhanced procurement from Japanese suppliers' transplants in ASEAN region.

Piping hot news

Government to hold talks with RBI to leave more capital with banks

• The government will hold talks with the Reserve Bank of India (RBI) on relaxing capital norms for banks and bringing them in line with less stringent Basel III guidelines, said a senior government official. Such a move would free up an estimated Rs 60,000 crore of capital at state-owned lenders, allowing them to step up lending to fuel the reviving economy, bolster weaker banks and reduce pressure on the government to provide capital.