Monday, 21 November 2016

{LONGTERMINVESTORS} India Daily: Strategy; Results - India Cements, Sobha; Updates - Banks/NBFCs, Consumer Products, Telecom






Special Reports
Strategy
Strategy: No cash, only credit
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Psychological impact on unaccounted 'flow' greater than financial impact on undisclosed 'stock'
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Narrowing options: Increasingly hard to avoid detection of unaccounted income and wealth
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Small-value cash-based transactions may stabilize over the next 2-4 weeks
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Informal credit may support consumption; from 'no credit, only cash' to 'no cash, only credit'
Daily Alerts
Results
India Cements: Lower fuel costs, volumes aid earnings
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EBITDA outperformance led by increased pet-coke usage (80%) and higher volumes
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Increase in pet-coke costs to hurt profitability from 3QFY17
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ICEM's trade sales at 70%, limited impact of demonetization until now
Sobha: 2QFY17: OCF positive, but cost escalations a worry
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Results review: Regular cost escalations cast shadow on positive operating cash flows
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Operations review: Better sales, given the odds during the quarter
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Sentiment could drop volumes in the near-term
Sector alerts
Banks: Addressing short-term pain
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RBI provides 60 day relaxation on NPL recognition
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Early days to fully assess the impact
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Temporary relief, medium-term concerns remain
Consumer Products: Month in review - Oct 2016: Demonetization drives sector underperformance
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Pricing/promotions - more hikes in S&D; promotional intensity still high in select categories
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RM inflation - mixed trends; agri-inputs and crude oil start inching up again
Telecom: 2QFY17 wireless round-up: operators scamper for volumes
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Operators focus on volumes and subscriber additions in the post 'R-Jio launch' world




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