- Domestic traffic growth slowest as fares seem to have moved north, denting demand. Load factor down despite capacity (seats) growth.
- SpiceJet leasing Jet’s plane means capacity would remain which could accelerate competition and bring yield under pressure.
- Attractive rights issue pricing to ensure successful capital raise.
- Steep discount to drive healthy minority participation. Continue to have a neutral rating as uncertainties still remain.
- Rights issue at a steep discount resulting in huge dilution.
- Rights issue to help fund interest and capex spend in the near term.
- Further capital infusion will likely be needed beyond 2020-21.
- Suzuki and Toyota expanded the partnership to new areas including the supply of Ciaz & Ertiga to Toyota India.
- Access to Toyota's technology will be key to Maruti's long-term prospects, particularly in EVs.
- This means concessions by Maruti’s crown jewel in various forms which investors need to factor.
- Demand headwinds as the auto sector reels under pressure.
- Weak macroeconomic environment raises concern over decorative demand.
- Concern over margin with a rise in crude, though strong rupee and price hikes are positive.
Jefferies on Finolex Cables downgraded to ‘Hold’ from ‘Buy’; maintained a TP at Rs525. Positives seem priced in, post sharp rally. Cautious on a tepid ramp-up in 'New Products. Expect revenue and net profit to grow at a compounded annual growth rate of 14% and 12% respectively over FY18-21.
Nomura on Maruti Suzuki: Global collaboration between Toyota and Suzuki deeper and wider than expected. Key benefit is the availability of hybrid technology in India without making much investment. Will become more relevant in India as emission norms tighten to BS-6 in 2020. The agreement should be win-win for both Maruti Suzuki and Toyota in India.
Source: Media reports