Tag: Sector Update

08 May

Hindustan Unilever – Block sale clouds disperse

Hindustan Unilever (HUVR IN, INR 2,010, Buy) The COVID-19 outbreak battered the FMCG market when it was already slowing down. On top of that a 10–12 day disruption in Q4FY20 led to a 7% YoY dip in volumes for HUL, belying consensus forecast of flattish volume growth (Edelweiss estimate: 4% YoY dip). The key question […]

07 May

Automobiles – COVID-19: Testing business resiliency

As OEMs brace for second consecutive year of (sharp) volume deceleration, we find these businesses resilient. This is reflected in higher or similar cash per share (as % of price) compared to GFC, despite a shallower price drop. Our bedrock analysis also indicates that even after 30-65% volume fall (from FY19 peak) and profit dip […]

03 Jan

‘Infra Scape’ – National Infra Pipeline: Aggressive intent, but funding key

The government ended 2019 with a bang by rolling out the National Infrastructure Pipeline (NIP). With a vision to spend INR100tn on infra over FY20-25 (~2x FY14-19 investments), NIP sets the ball rolling to achieve the objectives of: (a) improving India’s global competitiveness by creating new & upgrading existing infra; and (b) initiating a virtuous […]

01 Jan
Metal sector

Metals & Mining – CY20: The dawn post dark – sector update

CY19, for most part, has been a challenging year for the sector with: 1) unprecedented dip in steel prices; and 2) global demand woes exacerbated by trade wars. However, in the past three months, favourable macros seem to be helping the sector to revive. On the earnings front, as expected, the cuts have been sharp […]