Wednesday, 13 January 2016

{LONGTERMINVESTORS} India Daily: Strategy; Results - TCS, IndusInd Bank, Federal Bank; Updates - Telecom, Economy

 

 

 

Special Reports

Theme Report

Strategy: Leapfrog to BS VI - is the industry prepared?

l

Investments required to migrate to BS-VI are manageable

l

Diesel vehicles will become costlier and demand will likely shift to petrol/alternate fuels

l

Key implications for automobile companies

Daily Alerts

Results

TCS: Slips further

l

Misses lowered expectations; USD revenues decline

l

Portfolio challenges nearing an end; business metrics hold up well

l

FY2017E will be a year of consolidation for TCS

l

Cut estimates by 2-3%, target price by 6% and target multiple to 17.5X

IndusInd Bank: Steady as she goes

l

Overall performance stable

l

Loan growth trends appear to be healthy

l

Valuations on the higher side, but strong growth and return ratios lead to our positive view

Federal Bank: Mixed performance

l

Headline results weak, but has a few positives too

l

Asset quality hiccups continue, but on the mend

l

Maintain BUY rating; the bank remains well-placed among peers

Sector alerts

Telecom: A case for policy consistency

l

Change in spectrum cap regulations is an inconsistency that has material connotations

Economy

Economy: Production shocks, prices continue quiet climb

l

Base effects-led pick-up in retail inflation

l

Inflation under control for now; RBI will continue on wait-and-watch mode

l

Industrial production surprises on the downside

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