In today’s briefing:
- Jubilant Foodworks (JUBI IN) | Anyone Can Hold the Helm when the Sea Is CALM
- Hindalco Industries: Geopolitical Conflict Provides Traction to Metal Prices
- Improving visibility towards >5% PPoP/loans, >1.8% RoAs and 15% RoEs
- Energy cost inflation to drive margin reversion
- Consistency at play; enough levers and buffers to absorb global uncertainties and grow
- RBI directs PPBL to temporarily stop onboarding new customers
- Stars are aligned to growth in Indian health insurance
Jubilant Foodworks (JUBI IN) | Anyone Can Hold the Helm when the Sea Is CALM
- Jubilant Foodworks (JUBI IN) announced the departure of its CEO Mr Pratik Pota.
- The timing of departure coupled with recent disappointment around disclosures is making the market nervous.
- As the “sea” gets stormy thanks to high food inflation and pressured “Dine-Ins”, who would be JUBI’s new captain is the key.
Hindalco Industries: Geopolitical Conflict Provides Traction to Metal Prices
- The Russia Ukraine conflict has provided traction to global metal prices.
- During YTD CY22, a healthy rally has been witnessed in both ferrous and non-ferrous metals.
- During YTD CY22 (January 1-March 10, 2022), aluminium prices on the LME increased by ~21% to US$3409/tonne.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Improving visibility towards >5% PPoP/loans, >1.8% RoAs and 15% RoEs
- Our interaction with the management of IndusInd Bank (IIB) suggests that the macro uncertainties / volatility amidst current geopolitical situation and prolonged supply disruption may pose some risk to financing demand in gems/jewellery (Russia accounts for ~30% of global diamond output) and vehicle financing (due to rise in fuel prices).
- .
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Energy cost inflation to drive margin reversion
- We believe, it would be tough for Asahi India Glass (AIG) to sustain its present elevated profitability levels amidst steep rise in energy costs.
- We expect it to surge a further ~400bps by Q1FY23E, assuming present natural gas and crude oil prices.
- Also, logistics cost to sales is ~5-6%, and ~20% increase in fuel costs would add a further 100bps pressure on margins.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Consistency at play; enough levers and buffers to absorb global uncertainties and grow
- Interaction with senior management of HDFC Bank suggests the bank is well geared to sustain high-teen growth in loans and advances.
- Visibility continues to be high on its consistent earnings delivery and >2% RoA / >18% RoE for FY23E/FY24E.
- Nonetheless, the stock has corrected >10% in past one year and underperformed Nifty by ~20% and Bank Nifty by ~7%.
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
RBI directs PPBL to temporarily stop onboarding new customers
- RBI has directed Paytm Payments Bank (PPBL), an associate of One 97 Communications (OCL or Paytm), to temporarily halt onboarding of new customers, via a letter dated 11th Mar’22. The embargo will have an adverse impact on signing up users for new PPBL wallets or savings / current accounts, until further notice.
- .
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Stars are aligned to growth in Indian health insurance
- Star Health Insurance (STAR) is the leading health insurance player in India with 14%/32% market share in total/retail health insurance segment as of 10MFY22. A strong network of 0.53mn agents, >12,000 hospitals and 737 branches as of 9MFY22 makes STAR a dominant franchise in Indian health insurance with significant entry barriers.
- This is further complemented by healthy financials.
- .
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.
Before it’s here, it’s on Smartkarma
