Two Nifty heavyweight counters — IndusInd Bank and TCS — will declare their quarterly results on July 10
The upcoming week will be important for the market as developments around imposition of US-China tariffs are likely to stay in focus through the week.
On July 9, Dish TV and Uttam Galva Steel will come out with their quarterly results. Andhra Bank will hold it’s annual general meeting (AGM) on the same day. Board of directors of VA Tech Wabag will meet to discuss the fund raising plans while Tata–Mistry case update will also come on the same day.
Two Nifty heavyweight counters — IndusInd Bank and TCS — will declare their quarterly results for the first quarter of financial year 2019 on July 10, 2018. On the same day, City Union Bank will have an ex-date of bonus issue of 1:10. Board of Shalimar Paints will consider fund-raising plans through rights issue on July 10, 2018. The next day, some midcap companies, such as IOB, South Indian Bank, RIIL and MMForgins, will hold their AGMs. Mind Industries will have ex-date on 11th July of 2:1 bonus shares.
Telecom Commission will discuss new policy on the same day while RIIL will declare it’s Q1FY19 results on same day. July 12 will be quite important day for midcap index as some of them, such as Cyient, Karnataka Bank and Talwalkars Lifestyle, will declare results,while Ashok Buildcon and General Insurance will have an ex-date of bonus shares on the same day.
A few companies like Cyient, HCC, ICICI Lombard, Inox Wind, Orient Paper and Selan will hold their respective AGMs on July 12, while the government will publish data of IIP and CPI on July 12, itself.
Infosys will declare Q1FY19 results on July 13, while Bank of Baroda, Bank of India and Kesoram Industries will hold their respective AGMs on the same day.
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Hero MotoCorp
Hero Motocorp had posted in line numbers for FY18. It has reported growth of 34.8% YoY in net profit in Q4FY18 while revenues increased by 24% YoY and EBITDA increased by 43.1% YoY. Gross margin was stable QoQ but other expenses rose sharply on a QoQ basis led by higher advertising and promotional expenses. Staff costs declined QoQ in 4QFY18 due to lower provisioning in gratuity payments.
The company has managed to keep gross margin stable despite steep hike in commodity costs in 4QFY18. In FY18, commodity costs impacted gross margin by 90 bps, YoY. Other expenses rose by 4% YoY in FY18, which offset the impact of deterioration in gross margin.
Hero has witnessed the decline in market share which is largely due to weaker presence in high-growth segments such as scooters and premium motorcycle. Hero might be able to maintain share in economy and executive bike segments. We believe margins would be stable in future due to price increases and cost controls will help offset the impact of higher commodity prices and increase in competitive intensity.
Varroc Engineering | Rating: Buy
Varroc Engineering is a global automotive component group. It designs, manufactures and supplies exterior lighting systems, plastic and polymer components, electricals and electronics components, and precision metallic components to original equipment manufacturers (OEMs) of passenger cars, commercial vehicles, 2-wheelers, 3-wheelers and off-highway vehicles. The company was initially engaged in supplying components to Bajaj Auto.
It has renamed its lighting business to Varroc Lighting Systems and it remains a pillar of strength for the company, having Ford, Jaguar Land Rover, the Volkswagen Group, Renault-Nissan Mitsubishi, Groupe PSA and FCA as its key clients.
The company has a global footprint of 36 manufacturing facilities spread across 7 countries, with 6 facilities for its Global Lighting Business, 25 for India Business and 5 for Other Businesses. We are recommending a BUY for long term investors.
Umang Dairies | Rating: Buy
Umang Dairies, formerly known as JK Dairy and Foods, was incorporated in December 1992. It is a part of the JK Group, with the promoters holding 74.61% stake in the company. Umang Dairies is engaged in manufacturing milk products and processing / packaging liquid milk at its manufacturing facilities in Gajraula, Uttar Pradesh.
Umang Dairies has two plants — a drying plant and a liquid milk packaging plant. The drying plant, which was set up in 1994, has an installed capacity of 4.5 LLPD1, converting the liquid milk to milk powder and butter. The Company kept investing behind retail distribution expansion and up-gradation of distribution infrastructure as well as manpower to gain significant volumes in consumer products. The company has also launched three new products and tested waters in North East & North Bengal markets to fine tune of the offering.
All the three products, UHT Milk, Canned Paneer & Cow Ghee had a very good acceptance among the consumers and expect to gain wider and deeper distribution coupled with awareness building measures leading to significant volume and market share gains. We have a BUY rating on Umang Dairies.
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