Jefferies starts Finolex, V Guard with "buy"; says bullish on sector

V Guard Industries

05/09/2018 08:38

** Jefferies initiates coverage of Finolex Cables Ltd
 FNXC.NS  with a "buy" rating and PT of 690 rupees, Havells
India Ltd  HVEL.NS  with "hold" and a PT of 745 rupees and V
Guard Industries Ltd  VGUA.NS  with a "buy" and PT of 260 rupees
    ** Brokerage bullish on Indian electricals cos, says sector
to benefit from nationwide Goods and Services Tax (GST) and
required billing mechanism called E-Way Bill
    ** Key emerging trend among electricals is rapid
diversification into durables and appliances, which helps
de-risk their business models and optimize product mix -
Jefferies
    ** Price differential between branded and unbranded
converges, foresee accelerated demand transition to organized
players - Jefferies
    ** Demand shift to organized segment, govt's thrust on
housing and rural electrification, new product launches, and
deeper penetration in rural regions are among key catalysts for
electricals cos, Jefferies adds
    ** Finolex, Havells, V Guard down between 1.46 pct and 3.28
pct; broader market down on a weaker rupee  INR=D2 
    ** Eight out of 9 analysts covering Finolex rate the stock a
"buy", 11 of 19 have a "buy" rating on V Guard and 27 of 37 rate
Havells "buy"
    

 ((arnab.paul@thomsonreuters.com@reuters.net))