Large share of non-institutional credit in rural India may limit effectiveness of farm loan waivers - ICICI Sec

Large share of non-institutional credit in rural India may limit effectiveness of farm loan waivers

Five state governments recently announced farm loan waivers amounting to Rs996bn collectively: The farm loan waivers in five states met with scepticism by key policymakers in the country. The finance minister, heads of top commercial banks in the country

Capital Goods Sector Update Compelling growth story; technology leaders to gain foothold - ICICI Sec

Compelling growth story; technology leaders to gain foothold 

Reason for report: Sector initiation

Given the low penetration, increasing affordability and better availability of electricity, we believe the domestic room AC market is poised to witness secular growth over the next five years. Relatively higher energy consu

19/07/2017 1:31:33 PM | Posted in Broking Firm Views - Sector Report read full news
Fertilizer Sector Update Q1FY18: Strong performance on low base - ICICI Sec

Q1FY18: Strong performance on low base

Fertiliser sector companies in our coverage are likely to witness ~44% YoY jump in profitability in Q1FY18. However, large part of this increase will likely be driven by non-fertiliser businesses and low comparison base in fertiliser businesses of some companies. While Coromandel International (CRIN) is likely to

17/07/2017 1:32:37 PM | Posted in Broking Firm Views - Sector Report read full news
Aviation Sector Update Summer full of promise - ICICI Sec

Summer full of promise

Reason for report: Quarterly results preview

Q1FY18 is expected to be a strong quarter for Indian airlines. Sequentially, ATF prices were down by 5%, Rupee was stronger by 4% and Q1 is a seasonally strong quarter. These tailwinds should create a solid base for Q1 earnings. Our ground checks indicate imp

17/07/2017 12:19:39 PM | Posted in Broking Firm Views - Sector Report read full news
Pharma Sector Update Q1FY18 result preview - ICICI Sec

Q1FY18 result preview

We expect healthcare companies under our coverage to report weak set of results for the quarter ended Jun'17, mainly because we see most companies witnessing ~10% decline in revenue from domestic formulations which got impacted by GST implementation. Inventory de-stocking would have impacted primary sales for 20- 25 days durin

17/07/2017 12:13:34 PM | Posted in Broking Firm Views - Sector Report read full news
Paint Sector Update De-stocking ahead of GST impacts volume growth - ICICI Sec

De-stocking ahead of GST impacts volume growth

Reason for report: Q1FY18 results preview

Our recent channel checks suggest paint companies in our coverage universe witnessed healthy double-digit decorative paints volume growth in Apr’17 and May’17. This is mainly attributable to increased dealer incentive schemes

17/07/2017 12:01:22 PM | Posted in Broking Firm Views - Sector Report read full news
Power and Mining Sector Update PGCIL strong show to continue; JSW and CIL to report weak numbers - ICICI Sec

Q1FY18: PGCIL strong show to continue; JSW and CIL to report weak numbers

Reason for report: Q1FY18 earnings preview

Power Grid’s (PGCIL) secular earnings growth is likely to continue in the quarter ended Jun’17 as well. PGCIL remains our top pick in the sector given its strong asset pipeline, which will continue

17/07/2017 11:32:34 AM | Posted in Broking Firm Views - Sector Report read full news
ICICI Securities to offer Factor Based Portfolios, a risk-based portfolio advisory service to Indian investors

ICICI Securities to offer Factor Based Portfolios, a risk-based portfolio advisory service to Indian investors

Mumbai: ICICI Securities Ltd, a subsidiary of ICICI Bank and India’s leading integrated financial services firm today announced today Factor Based Portfolios, a risk-based portfolio advisory service on its investment pla

13/07/2017 3:33:04 PM | Posted in Special Event Reports read full news
Cement Sector Update Price increases to offset cost escalations - ICICI Sec

Price increases to offset cost escalations

Cement companies under our coverage are likely to report ~6% YoY (~20% QoQ) EBITDA growth during Q1FY18 led by 4.6% YoY volume growth. We estimate industry volumes to be up ~1% YoY as strong demand growth in East region is expected to be offset by volume declines in South and Central regions. Average pan India

12/07/2017 3:40:45 PM | Posted in Broking Firm Views - Sector Report read full news
Entertainment Sector Update Bad quarter; GST impacts ad revenue growth - ICICI Sec

Bad quarter; GST impacts ad revenue growth

Reason for report: Q1FY18 results preview

We expect I-Sec media universe to register a weak quarter as adspends were postponed owing to pre-GST destocking across industries. We forecast Q1FY18 ad revenue growth of 2.0% YoY for the media companies under our coverage and expect things

12/07/2017 2:41:07 PM | Posted in Broking Firm Views - Sector Report read full news
Metal Sector Update Chinese illegal capacity - new twist? - ICICI Sec

Chinese illegal capacity – new twist?

Reason for report: Aluminium sector update

Post our call with AZ China, the client reactions and news flows on Chinese aluminium cuts have been diverse. Since then, the various industry consultants that we have interacted have been sceptical about the strength of the “illegal

12/07/2017 10:01:24 AM | Posted in Broking Firm Views - Sector Report read full news
AU Small Finance Bank IPO - ICICI Securities

Appended is the quote being shared by Ajay Saraf, Executive Director, ICICI Securities Ltd post today’s listing of AU Small Finance Bank IPO:  

“We are delighted to be a part of this journey of bringing AU Small Finance Bank to the Indian Capital Markets. With an issue size of over 1900 crore, it was one of the largest issue to hit the capital markets in calendar year

Metals Sector Update Weak non-ferrous performance against expectations - ICICI Sec

Q1FY18 was characterised by weaker than expected non-ferrous performance (Vedanta, Hindalco) as slack volumes and higher costs impacted profitability – EBITDA of the pack unexpectedly drops by 28% QoQ. Top-6 steel players continue to enjoy majority of the domestic and export demand share with strong YoY volumes gains seen in Tata Steel. The month of June,’17 did witness a sharp decl

8/07/2017 2:14:02 PM | Posted in Broking Firm Views - Sector Report read full news
Media Sector Update FTA channels- Frankenstein`s monster - ICICI Sec

The latest threat to pay-TV revenue growth driven by digitisation is the rise of FreeDish – the free DTH platform offered by the government, which has witnessed a huge surge in subscribers in the past two years. The growth of FreeDish is propelled by the rise in number of Free-to-Air (FTA) channels by leading broadcasters and the significant improvement in quality of content on FTA channe

8/07/2017 2:08:40 PM | Posted in Broking Firm Views - Sector Report read full news
Telecom Sector Update Revenues on recovery path: Will VoLTE feature phone disrupt it? - ICICI Sec

Revenues on recovery path: Will VoLTE feature phone disrupt it?

Q1FY18 mobile revenue likely to be stable QoQ indicating some recovery for Bharti Airtel (Bharti) and Idea Cellular (Idea) on the back of strong volume growth, but realisations continue to shrink. Though their ARPUs remain on a downtrend, the decline has significantly decelerated. Reliance

5/07/2017 11:13:46 AM | Posted in Broking Firm Views - Sector Report read full news
India Strategy Cautious capital allocation by India Inc. in FY17 - ICICI Sec

Cautious capital allocation by India Inc. in FY17

* We analysed 3071 non-financial companies which have filed their abridged balance sheets (BS) for FY17 with the exchanges, classifying them into sixteen sectors and three size-based categories (LC: > US$5 bn; MC: > US$0.5bn and SC < US$0.5bn). Following are our observations:

 

4/07/2017 2:58:12 PM | Posted in Special Event Reports read full news
Aviation Sector Update Air India on the block-can the elephant dance - ICICI Sec

Please find attached report on Aviation sector.

Yes, it can and if there was any opportune time, it is now. The singular concern for any suitor of Air India is its overleveraged balance sheet and much will depend upon the ability of the Government to monetize the assets. Airline industry right now enjoys multiple tailwinds which has considerably de-ris

3/07/2017 2:48:00 PM | Posted in Broking Firm Views - Sector Report read full news
IT Sector Update Long-term fundamentals not as rosy as sentiment suggests - ICICI Sec

Midcap IT: Long-term fundamentals not as rosy as sentiment suggests

* Midcap IT has failed to capitalise on “Two-speed” IT. While it is intuitive to believe mid-size IT services companies can grow revenues and EBITDA materially faster than their large cap counterparts given their small base, reality is far from it. Though o

1/07/2017 12:31:43 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update Shifting landscape transmitting power is better than moving coal - ICICI Sec

Shifting landscape – transmitting power is better than moving coal

Reason for the report: Sector update

India, in recent years, has been on a transmission infrastructure creation spree, in its attempts to overhaul the existing setup, electrify the entire country and create adequate power transmission capacity to meet th

29/06/2017 5:33:54 PM | Posted in Broking Firm Views - Sector Report read full news
Power Sector Update Sprouts of improvement visible, but data inconsistencies cause discomfort - ICICI Sec

Sprouts of improvement visible, but data inconsistencies cause discomfort

Reason for the report: Sector update

In this report, we take a look at how the various states are faring on the operational and financial parameters tracked under the Union government’s Ujwal DISCOM Assurance Yojana (UDAY), and the improvement the

29/06/2017 5:20:07 PM | Posted in Broking Firm Views - Sector Report read full news
Right product mix and procurement is key - ICICI Sec

Right product mix and procurement is key

Reason for report: Initiating coverage

The Indian dairy market is growing at >10% CAGR over past decade with milk production growing at >4% and milk inflation at >7%. With rising share of the organised sector and improving share of value-added products, we believe most dairy c

29/06/2017 5:15:00 PM | Posted in Special Event Reports read full news
IT Sector Update Q1 unlikey to assuage investor concerns on demand - ICICI Sec

Q1 unlikey to assuage investor concerns on demand

* Expect revenue growth in Q1FY18 to be softer relative to typical strong seasonality. We expect Q1FY18 to be another quarter where demand trends will be on the softer side of seasonality with each company witnessing near-term challenges in different sectors and verticals. TCS is seeing

29/06/2017 9:39:40 AM | Posted in Broking Firm Views - Sector Report read full news
India Strategy Measuring the fiscal cost of farm loan waivers - ICICI Sec

Measuring the fiscal cost of farm loan waivers

State fiscal deficit trend has been rising in the recent past on capex growth and UDAY bonds …:

Combined state fiscal deficit trend has been challenging over the past few years although quality of spending has been improving due to higher outlay for capital spending and a