Category: Equity Research

As Indians continue to get affluent and spend on Lifestyle, unfortunately they do a mistake of enjoying Alchol, which is definitely injurious to health. However, those who want can create some wealth here.

United Spirits – USL’s brand equity is unparalleled across cities and socio economic classes. Brand loyalty is high across all alcohol segments. The combination of easy availability, local tastes and affordability will likely continue to drive the high incidence of consumption of local brands in India. The IMFL/spirits industry is likely to grow at a 16% CAGR over the next five years, (more…)

Mortgage affordability in India has improved in the past three years – while income levels have gone up, home prices and mortgage penetration levels have been broadly stable through this period. As a result, we expect continued strength in mortgage loan growth.

With a market share of about 8% (in outstanding loans), LICHF has made significant strides in both growth and profitability since it was re-organized by management in F2007. Improving asset quality and operating costs have lifted ROA from 1.3% in F2005 to an (more…)

Kotak looks set for ~40% loan growth in the medium term, given its small base and deposit traction. We see its niche franchises keeping NIMs > 5%, with operating leverage the other major earnings driver. Comparisons with the histories of India’s three biggest private sector banks also indicate an inflection point.

The signs are that the worst is probably over for flow businesses. It’s unlikely to be the game-changer, but the positive surprise could act as a near-term catalyst. Kotak’s integrated bank-broking approach, we believe, gives it a competitive edge on customer (more…)

Jocil Ltd (JOCIL) was incorporated in 1978 by the Jaylakshmi group of companies. The product portfolio of JOCIL includes Stearic Acid Flakes, Crude/Distilled/Hydrogenated fatty acids, Soap Noodles, Toilet Soap, Refined Glycerine, Industrial Oxygen and Pitch (By product). It is also involved in power generation and distribution. The installed capacities for various products are as under.

JOCIL is an old and established player (since 1978) in the soaps and its raw materials market. It manufactures Fatty Acids, Soap Noodles and Toilet Soap on job work basis for reputed customers. The products manufactured are marketed directly from the factory (more…)

The wellness industry covers a large number of services including personal health counseling, fitness, beauty services and others.
Within this, fitness segment viz gyms market size is estimated at US$113mn and is growing at a healthy pace. Fitness industry should benefit from several structural positives prevalent in the domestic market.

Talwalkars Better Value Fitness (TBVF) is amongst the largest fitness chains in the country operating 66 health clubs (including (more…)

Pantaloon’s 4QFY10 revenues grew 91% yoy to Rs31.8bn. The underlying samestore sales growth (SSSG) for value retailing was 11%, while the lifestyle SSSG came was 19%. EBITDA grew 15% yoy to Rs2.1bn. PBT (pre-ex) grew 36% yoy to Rs750mn due to higher other income. Tax reversal led to adjusted PAT growth of 154% to Rs927mn.

Lifestyle-retailing delivered SSS growth of 19.4% YoY on a normal base quarter. Valueretailing SSS grew 11.5% YoY – marginally slower growth than in 3QFY10, but on a much stronger base quarter. Home-retailing SSS grew 57% YoY on a very weak 4QFY09, (more…)