Outlook

Representative image The soaring dollar is propelling the global economy deeper into a synchronized slowdown by driving up borrowing costs and stoking financial-market volatility -- and there’s little respite on the horizon. A closely watched gauge of the greenback has risen 7% since January to a two-year high as the Federal Reserve embarks on an aggressive series of interest-rate increases to curb inflation and investors have bought dollars as a haven amid economic uncertainty. A rising currency should help the Fed cool prices and support American demand for goods from abroad, but it also threatens to drive up the import prices of foreign economies, further fueling their inflation rates, and sap them of capital. That’s especially worrying for emerging economies, which are being forced to either allow their currencies to weaken, intervene to cushion their slide, or raise their own interest rates in a bid to buttress their foreign exchange levels. ALSO READ: The Dollar … [Read more...] about Dollar’s strength pushes world economy deeper into slowdown

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × ICICI Direct's research report on SKF India SKF India is one of the leading bearing manufacturers known for its deep groove ball bearings and has a presence across the industrial & auto sector. Auto & industrial have been contributing 50-50% to SKF’s topline over the years, with a slight tilt on either side depending on macros • SKF boasts a debt free balance sheet, coupled with consistent RoCE & RoICs upwards of 20%. Outlook We continue to remain positive and retain our BUY rating on the stock. We value SKF at Rs 3720 i.e. 36x P/E on FY24E EPS. Close For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and … [Read more...] about Buy SKF India; target of Rs 3720: ICICI Direct

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Motilal Oswal's research report on Petronet LNG PLNG reported a beat in absolute terms, even as operational numbers were below our 4QFY22 estimates. Throughput at Dahej stood at 80%, with a utilization of ~19% at Kochi. The company recorded 'use or pay charges' of INR832m in 4QFY22. It has been given a credit note of INR1,781m with respect to lower regasification tariff for the Kochi terminal with its customers. Since the latter have now committed additional volumes, the tariff has been revised accordingly. Despite the challenges, we remain confident that PLNG will see a utilization of 105%/30% in FY23E. Spot LNG prices fell to USD24.5/mmBtu in Apr'22 v/s USD29.4/mmBtu in 3QFY22 and USD35.4/mmBtu in Mar'22 Kochi tariff has been cut to INR70/mmBtu (from INR79/mmBtu) from Apr'19. The company … [Read more...] about Buy Petronet LNG; target of Rs 300: Motilal Oswal

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Motilal Oswal's research report on RBL Bank RBL Bank (RBK) reported an in-line quarter with net earnings up 27% QoQ to INR1.98b (+163% YoY) supported by healthy NII as NIM expanded 70bp QoQ along with controlled provisions. Business trends were modest with the loan book growing 3% QoQ, while the deposit book rose 7% QoQ. C/I ratio remained elevated at 60% on higher business expenses. Fresh slippages dipped 19% QoQ to INR6.2b - largely from the Retail portfolio (Credit Cards/MFI). GNPA/NNPA ratio improved 44bp/51bp QoQ to 4.40%/1.34%, respectively. We cut our FY23E/FY24E earnings by 10%/7% as we conservatively built in higher credit cost and opex, and await clarity on the appointment of the MD and CEO. Outlook We expect RBK to deliver an FY24E RoA/RoE of 1.2%/10.3%, … [Read more...] about Buy RBL Bank; target of Rs 160: Motilal Oswal

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Motilal Oswal's research report on Gujarat State Petronet Gujarat State Petronet (GUJS) reported absolute numbers in line with our estimates, with volumes at 29.3mmscmd (-14% YoY, -8% QoQ) in 4QFY22. We remain optimistic on the volume growth for the company as long-term growth is expected from CGDs and the Fertilizer and Refining sectors. After remaining stagnant at ~70mmscmd for the past five years, domestic gas available for commercial consumption has risen to ~80mmscmd in the past few months. Domestic gas production would get a further boost, primarily from RIL (+12mmscmd) and ONGC (+10mmscmd) in the KG Basin. Phase I of the Mehsana-Bhatinda pipeline has already become cash flow profitable. Phase II is expected to be commissioned by early FY23, following which the total volumes should … [Read more...] about Buy Gujarat State Petronet; target of Rs 391: Motilal Oswal

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Anand Rathi's research report on Ajanta Pharma Ajanta’s Q4 FY22 sales grew 15% to Rs8.7bn. Its India and Africa branded divisions and Asia reported stellar growth. More price erosion and keener competition, however, led to muted US business. Its gross margin slid 531bps to 72.5% y/y due to higher raw material prices and a one-time impact (1.5% of sales due to flu-related products written back, and 1.5% more due to price erosion in the US). Adjusting for this, the gross margin contracted 280bps y/y to 75%. Higher other expenses squeezed the EBITDA margin 1053bps to 23.7%. PAT fell 5.1% to Rs1.5bn. With launches, continuing momentum in India, other branded markets and a pick-up in the US, Ajanta would deliver 12% revenue/PAT growth each over FY22-24. Outlook We retain our Buy … [Read more...] about Buy Ajanta Pharma; target of Rs 2378: Anand Rathi

Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Anand Rathi's research report on Suven Pharmaceuticals Suven’s pharma CDMO sales (down 21% q/q to Rs2bn) were less than expected as the contribution from one Covid molecule wasn’t as huge as expected. Specialty CDMO clocked sales of a good Rs1.3bn (up 30% q/q); formulation sales were Rs184m (up 28% q/q). The gross margin was steady at 69-70%. Staff costs and other expenses were higher (more transportation and distribution costs) at respectively 8.6% (avg. 6-6.5%) and 17.4% of sales (vs. avg. 14-15%). This translated to a 43% EBITDA margin. The higher tax rate (43% vs avg. 25-33%) eroded profit, which was Rs917m (42% y/y, adj. for the share of profit from rising pharma). Outlook We slightly trim our earnings estimate, factoring in higher formulations sales (boosted from … [Read more...] about Buy Suven Pharmaceuticals; target of Rs 627: Anand Rathi

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution. Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Anand Rathi's research report on Firstsource Solutions FSOL was faced with challenges in mortgages (22% of revenue) with 30-40% declines expected ahead. Management expects stabilisation here by H2 FY23. In the other divisions (78% of revenue), … [Read more...] about Buy Firstsource Solutions; target of Rs 145: Anand Rathi

Share to Twitter Share to Linkedin Throughout the last few years the world of work as we know it has been transforming at a rapid pace. The coronavirus pandemic offered an inflection point where daily business practices were forced to make radical changes given the constraints that had befallen them. Yet, in this time as we learn to live with Covid, and businesses are finding their way, new questions arise that are not only redefining work culture but the value of how we rethink mental health as a fundamental building block of business life. Millennials and Gen Z have certainly led the way in rethinking business as usual. At this moment people are beginning to reconsider their relationship to work, and what they need from an employer going forward. The media has dubbed this period “The Great Resignation” where there is a mass exodus of employees quitting their current jobs and searching for something with more flexibility. While there is certainly some … [Read more...] about Mindset Matters: A Psychotherapists Journey Through Mental Health, The Great Re-imagination, And What Leadership Needs To Know