HDFC Securities' research report on Granules India
Driven by fresh capacities in API/PFI and resumption of OTC product supplies for the US partner, revenues grew 42%YoY to Rs 5.0bn in 4QFY18. However, steep price increase in key raw materials (ex. Acetic acetate), unfavorable geographic mix and inventory write off led to sharp fall in EBITDA margin from 18% in 3QFY18 to 8.7% in 4QFY18. As a result, reported PAT was at Rs 204mn, down 55%YoY. GRAN had taken Rs 240mn incremental R&D spend through P&L in 4QFY18, due to new accounting policies. Moreover, there was Rs 120mn inventory write off. Adjusted for these expenses, EBITDA margin was at 18%. The impact of raw material price hike and business mix was only ~300-400bps, in our view.
Outlook
At CMP, the stock is trading at 15.7x FY18E, 11.6x FY19E and 8.6x FY20E, still 50% cheaper to industry peers. We continue to maintain BUY with reduced TP of Rs 115 (12x FY20E).
Top Cheap Stocks To Watch For 2019: Utilities Select Sector SPDR ETF (XLU)
Advisors' Opinion:- [By ]
High-yield and traditionally-safe sectors like Utilities, represented by the Utilities Select Sector SPDR (NYSE: XLU), and Consumer Staples, represented by the Consumer Staples Select Sector SPDR (NYSE: XLP), show this relationship with yields.
- [By Jim Crumly]
Energy stocks were market leaders today, with the SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) up 2.2%. Utilities fell on rising long-term interest rates; the Utilities Select SPDR ETF (NYSEMKT:XLU) slipped 0.3%.
- [By Jim Crumly]
Long-term bonds rose, hurting financial stocks and giving a boost to utilities. The Financial Select Sector SPDR ETF (NYSEMKT:XLF) declined 0.9%, while the Utilities Select SPDR ETF (NYSEMKT:XLU) added 1.2%.
- [By ]
They can also invest in a mutual fund or a low-cost exchange-traded fund (ETF). One popular option is Utilities Select Sector SPRD ETF (NYSE: XLU), at nearly $7.5 billion in size.
- [By Todd Shriber, ETF Professor]
With June's reputation for equity market declines, it's probably not surprising that defensive sectors are among the better performers in the sixth month of the year. The Utilities Select Sector SPDR (NYSE: XLU) is usually the best-performing sector SPDR ETF in June, but its average June gains are negligible, according to CXO data.
- [By Jim Crumly]
Energy stocks rose after President Trump announced the U.S. would withdraw from the Iran nuclear accord. The SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) gained 2.1%. Utility stocks fell on rising interest rates, with the Utilities Select SPDR ETF (NYSEMKT:XLU) dropping 2.5%.
Top Cheap Stocks To Watch For 2019: CenturyLink, Inc.(CTL)
Advisors' Opinion:- [By Logan Wallace]
Centurylink Inc (NYSE:CTL) shares gapped down before the market opened on Wednesday . The stock had previously closed at $20.37, but opened at $21.07. Centurylink shares last traded at $20.80, with a volume of 589637 shares traded.
- [By Shane Hupp]
Cove Street Capital LLC cut its stake in shares of Centurylink Inc (NYSE:CTL) by 1.5% in the second quarter, HoldingsChannel.com reports. The fund owned 534,788 shares of the technology company’s stock after selling 7,914 shares during the period. Cove Street Capital LLC’s holdings in Centurylink were worth $9,968,000 as of its most recent filing with the Securities and Exchange Commission.
- [By Anders Bylund]
Globalstar CEO and chairman Jay Monroe is consolidating his business empire here. Monroe is also the CEO and majority shareholder of investment firm The Thermo Companies, which is stepping in to take over Globalstar here in a deal worth $1.65 billion. The merger will fortify Globalstar's struggling core business by combining it with regional fiber network FiberLight and injecting some fresh capital into its balance sheet. The resulting company, which will be known as Thermo Companies but should continue to trade under Globalstar's GSAT ticker until further notice, will gain a $100 million cash boost along with 15.5 million shares of CenturyLink (NYSE:CTL), currently worth about $280 million.
- [By Leo Sun, Jamal Carnette, CFA, and Nicholas Rossolillo]
AT&T's (NYSE:T) massive moat, its high forward yield of 6.2%, and its status as a Dividend Aristocrat make it a favorite income investment for many investors. It might seem tough to find a stable company that pays a higher yield than AT&T, but three stocks fit that description: GEO Group (NYSE:GEO), Brookfield Renewable Energy Partners (NYSE:BEP), and CenturyLink (NYSE:CTL).
Top Cheap Stocks To Watch For 2019: USG Corporation(USG)
Advisors' Opinion:- [By Ethan Ryder]
USG Co. (NYSE:USG) – Equities research analysts at SunTrust Banks reduced their Q3 2018 earnings per share estimates for shares of USG in a report issued on Monday, July 9th. SunTrust Banks analyst K. Hughes now forecasts that the construction company will post earnings of $0.57 per share for the quarter, down from their previous estimate of $0.61. SunTrust Banks currently has a “Hold” rating and a $44.00 price target on the stock. SunTrust Banks also issued estimates for USG’s FY2018 earnings at $2.05 EPS, Q3 2019 earnings at $0.71 EPS and FY2019 earnings at $2.53 EPS.
- [By Max Byerly]
Get a free copy of the Zacks research report on USG (USG)
For more information about research offerings from Zacks Investment Research, visit Zacks.com
- [By Jordan Wathen]
As USG Corporation (NYSE:USG) drags its feet on an offer to sell the company for $42 per share, Berkshire intends to use its 30.8% ownership stake to motivate its top brass to make a deal. Berkshire told Bloomberg it intends to vote its shares against USG's board members who are up for re-election at this year's annual meeting, a clear message that Buffett is ready to cash in, even if USG's management and board are not.
- [By Dan Caplinger]
Warren Buffett likes to hold his stock positions for the long run, and his experience with USG (NYSE:USG) has been typical of his other long-term investments. The Oracle of Omaha started buying shares of the manufacturer of Sheetrock drywall and other building materials back in 2000, accumulating a sizable stake that has ballooned to more than 30% of the company. USG ended up going through bankruptcy in order to get a handle on its asbestos liability claims, but thanks largely to Buffett's involvement, the building materials company not only survived bankruptcy but also saw share prices soar briefly on hopes that USG would once again fully participate in the then-strong housing boom.
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