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MOSL: Morning India (8/May/17)-1. Financials (Making RBI captain of the ship); 2. Cement (ACC-Ambuja merger opportunities); 3. Cyient; 4. Eicher Motors

​MOrning India (8/May/17): 1. Financials (Making RBI captain of the ship); 2. Cement (ACC-Ambuja merger opportunities); 3. Cyient; 4. Eicher Motors; 5. Dr Reddy's; 6. P&G Hygiene; 7. Sanofi India; 8. Equitas Holdings

Today’s top research idea

• ​Eicher Motors: In-line; RE margin stable, VECV big positive surprise
  
• RE's EBITDA margin expanded ~180bp YoY to 31.4% (est. of ~32%), led by higher other expenses. Further, lower other income restricted adj. PAT growth to 8.5% YoY (to INR4.1b v/s est. of ~INR5.5b).
  
• EBITDA margin expanded 370bp YoY (+130bp QoQ) to 8.2% (est. of 6.4%) led by positive operating leverage. Adj. PAT was ~INR1.16b (est. of ~INR674m).
  
• Waiting period for Classic 350 stable at ~2 months, with order booking in Top-20 cities growing at over 15%. RE's producible capacity at ~825k for FY18 and ~960k for FY19. Declared a dividend of ~INR100/share for FY17 (flat YoY).
  
• We have upgraded consol. EPS for FY18E/19E by 4%/8% to factor in better-than-estimated VECV performance. Maintain Buy with a TP of INR30,402