MUST BLESS read in disguise? Fund managers see opportunity in the Turkish crisis
The economic crisis in Turkey has given headaches to investors and policy makers in emerging markets, but for some fund managers, it is an opportunity to acquire a range of cheap assets, from Indonesian bonds to Brazilian stocks. The optimistic view of global growth has been seriously tested this year. Stock markets were hit by a Sino-US trade war, rising US yields and a READ MORE dollar rally
UBS at Britannia Industries
The timing and nature of demand recovery was a key debate in the Indian consumer sector in FY15-FY18. Our analysis of UBS Evidence Lab data points to the first signs of recovery. We believe that it will not be limited to just personal care, home care and discretionary categories.
We believe that packaged food could see a rebound as domestic consumption recovers, especially in rural India. We are increasing our revenue estimates for FY1
We reaffirm our positive attitude towards PVR because of: (1) strategic acquisition of SPI Cinemas (SPI) – which will reap many benefits; and (2) limited overhang of F & B controls – so far the courts have taken a positive stance on this issue. With SPI the most popular screen brand in South India, PVR will leverage operational synergies and increase advertising revenue while reducing content risk.
The deal also clears the decks for PVR to emerge as the # 1 player in key South Indian cities and take on seamless expansion (100 plus screens to FY19). We expect the business to be profitable in the first year itself. As a result, we are increasing our FY19 / 20E EPS by 2.70% / 4.08% and revising our target multiple to 30x (from 28x) FY20E EPS to reach a revised PT of 1,608 Rs (formerly 1,442 Rs). Maintain "BUY". IDFC Securities at Apollo Hospitals
Apollo Standalone Pharmacy (ASAP), India's largest organized pharmacy retail store with 3,000 stores, has been Apollo Hospitals's (Apollo) outstanding business for several years. Apollo's relatively slower growth in health services has overshadowed ASAP's consistent performance (23% revenue and 37% EBITDA CAGR over FY15-18).
The ASAP business is currently a turning point with revenues / EBITDA of Rs 32.7bn / Rs 1.5bn or RoCE of 15%. We estimate 18% CAGR in ASAP revenue over GJ18-21E and value this business with Rs53.7bn (20x FY21E EV / EBITDA), which means Apollo's ex-SAP business is currently trading at 13.5x EV / EBITDA (FY21E) is traded. We maintain Outperformer on Apollo with a target price of 1,483 rupees, and Apollo is our first choice in healthcare services. Top contributor to today's Sensex Rise
ST BK OF INDIA
KOTAK MAH. BANK
Top BSE500 gainers
»More on Top Gainers
Among the sectors are shares of public banks (PSBs) in focus with Nifty PSU Bank Index gains more than 2% on Monday before the judgment of the Allahabad Court on stressed assets, given the deadline of the Reserve Bank of India (RBI) today ends. RBI's February 12 circular said that all stressed assets will be either resolved by August 27 or brought to the NCLT
The August series futures and options expire on Thursday, and a rollover of positions will dominate the processes throughout the week, leading to some volatility in the market.
Global markets rose after US Federal Reserve Chairman Jerome Powell said a gradual rise in interest rates was the best way to protect the US economy and employment growth.
Powell's comments met market expectations. This helped push the S & P500 Index and Nasdaq Composite to highs on Friday, consolidating S & P's longest-running bull market, as defined by some investors.
MSCI's broadest index for Asia-Pacific outside Japan jumped 0.1 percent Japanese Nikkei stock index gained 0.6 percent. Seoul's Kospi index was flat.
(With input from Reuters)