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ICICIdirect Research Posted on 02:49pm 16-Dec-2020

Monthly Inflation: Food prices drive inflation lower...

• CPI Inflation fell sharply lower to 6.93% in November 2020 compared to 7.61% in October. The reading in November was lowest in the last three months indicating the headline print has peaked in October and is now trending down

• The decline in inflation was largely driven by food inflation. Food inflation was down to 8.76% in November against 10.09% in October. Almost all components except oil & fats and non-alcoholic beverages saw a decline in growth in inflation

• Food inflation seems to have peaked out and is likely to trend lower due to a decline in retail prices of vegetables and a favourable base effect. Vegetable prices inflation declined to 15.63% in November compared to 22.08% in October

• Core inflation was largely flat at 5.80% in November compared to 5.75% in October. Core inflation remained flat with divergent trends seen across different components. Going forward, rise in crude prices, elevated input cost pressures, reflecting in wholesale prices could eventually impact output prices and would need to be monitored

•  Overall, the reading was better than market expectations. However, sticky core inflation would remain a point of concern. Minutes to be released later this week will be looked at closely to understand MPC members’ views on broad based inflationary concerns, excess liquidity and supporting growth

For details, click on the link below

https://www.icicidirect.com/mailimages/IDirect_Inflation_Dec20.pdf

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ICICIdirect Research Posted on 10:47am 01-Dec-2020

IPO Review - Burger King India

Burger King India (BKI) is a fast growing international QSR chain in India. It started its operations in 2014 and within five years established 261 restaurants across major cities. The company has exclusive rights to develop, establish, operate and franchise Burger King branded restaurants in India as a master franchisee. BKI grew at a faster pace in the last five years by mainly leveraging the disruption at McDonalds franchise in North India. The company has a well-defined restaurant rollout plan to open 700 restaurants across geographies by 2026. The proceeds from the IPO would be sufficient to open 190 new stores until 2023. Click on the title to read more...
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ICICIdirect Research Posted on 03:20pm 17-Nov-2020

Index Outlook: Market at all-time high, broader participation to follow...

Indian markets witnessed a spectacular run recently, with markets surpassing pre-Covid peaks primarily tracking near normal economic activity domestically, robust FII flows (~US$4 billion in MTD November 2020), incrementally positive news flow on Covid vaccine development. Part of market optimism was also fuelled by a better-than-expected Q2FY21 wherein maximum companies benefitted from low raw material cost and realised operating leverage benefits with management commentary positive on demand prospects and retaining some part of operating leverage gains in the post Covid world. On the macroeconomic front, GST collection for October 2020 was in excess of | 1 lakh core (up ~10% MoM) while present E-way bill generation, fuel consumption and power demand surpassed pre-Covid levels. Given the sharp up move in the present month (up ~10% MTD), we expect broader market participation to follow. Stock specific action is expected to continue wherein we continue to like IT, pharma, private banks and rural economy linked business models.
 
Sectoral earnings
Going forward, post blip over FY19-21E, earnings recovery in FY20-23E period will be led by automobile sector, oil & gas space and index heavy BFSI space (~38% weight) that now also includes the insurance sector.
 
For details, click on the link below:
https://www.icicidirect.com/mailimages/IDirect_IndexOutlook_Nov20.pdf

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ICICIdirect Research Posted on 01:14pm 09-Nov-2020

IPO Review - Gland Pharma (Subscribe)

Established in Hyderabad in 1978, Gland Pharma is one of the largest and fastest growing injectable-focused B2B companies, with a global footprint across 60 countries, including the US, Europe, Canada, Australia, India and other markets. It is a niche player in sterile injectables, oncology and ophthalmic solutions with focus on first-to-file, 505(b)(2) filings and NCE- 1s. Along with its partners Gland has 267 ANDA filings (101 owned) in the US as of Q1FY21, of which 215 were approved. The company has seven manufacturing facilities in India, comprising four formulations facilities with 22 production lines and three API facilities. In 2017, Shanghai based Fosun Pharma had acquired a 74% stake in the company for US$1.09 billion. Click on the above title to read more...
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ICICIdirect Research Posted on 07:16pm 19-Oct-2020

IPO Review - Equitas Small Finance Bank (Subscribe)

Equitas Small Finance Bank (ESFB) is a mass market focused small finance bank (SFB), providing banking products and services to unserved and underserved segment. It is the largest SFB in India in terms of number of banking outlets and second largest SFB in India in terms of AUM and total deposits as on FY19. As of June 30, 2020, the bank had 856 banking outlets and 322 ATMs spread across 17 states and union territories in India. Click on the title to read more...