Thursday, 30 June 2016

Re: {LONGTERMINVESTORS} Research Reports extracts & summaries - Thread

 

Special Reports

Strategy

Strategy: New (accounting standards) and old (valuations)

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Adoption of Ind-AS from 1QFY17

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Revenues, EBITDA and EPS will be different in several cases; cash flows will not change

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Revenues (excise duty), EBITDA (JV accounting), interest costs and EPS (treasury shares) different

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Valuation methodologies already largely capture the likely changes to earnings

Daily Alerts

Change in Reco

Hexaware Technologies: Baring bond issue: a significant constraint

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Baring issues senior notes of US$300 mn supported by 71% holding in Hexaware

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Implications: impacts Hexaware's ability to invest and grow the business

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Downgrade a notch to ADD (from BUY) on relatively modest upside

Company alerts

Ashok Leyland: Annual report analysis

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Key takeaways from the annual report

Havells India: Management meeting notes

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Greater accountability with vertical focus; division management given P&L responsibility

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Strengthening the management team; fortifying management bandwidth

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Several initiatives taken to rev up demand

Economy

Economy: 7CPC: Small but necessary stimulus

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Stimulus of 30 bps of GDP through central government employees and pensioners

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States will amplify the stimulus effect but spread over 2-3 years

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Upside risks of 15 bps to average inflation if government accepts allowances recommendations

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Positive for consumer durables; rural consumption boost depends on monsoon

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