This is the fourth post in our quarterly update series. In each post, we pick four stock from our watchlist and share the latest updates on these businesses.
You can see the earlier updates here, here, and here.
Below we have four more companies that we’re tracking closely. We have made notes from their quarterly updates and the analyst conference calls.
The Cabinet Committee of Economic Affairs (CCEA) has approved a Rs 10,000 crore package for the second phase of Faster Adoption & Manufacturing of Electric (and hybrid) vehicles (FAME) scheme on February 28. “Starting from 1st April 2019, the second package will continue for three years till 31st March, 2022,” Union Finance Minister Arun Jaitley said.
FAME scheme was started in 2015 to incentivize the manufacture of electric vehicles. Incentives up to Rs 22,000 were available for two-wheelers, Rs 61,000 for three-wheelers and Rs 1,87,000 for four-wheelers were provided. The scheme was initially implemented for one year, which was later given three extensions. This is a positive news for two companies in our watchlist.
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Please click on the read more button for more details on each stock.
Thomas Cook India
Thomas Cook is one of India’s oldest companies which was established in 1881. It is an integrated travel and travel related financial services company. They provide a wide range of services from packaged tours and forex services to visa support and travel insurance.
Thomas Cook has been on a consolidation path for many of their divisions like forex, etc. This should start paying off in the near future. It qualifies as a good proxy of the Indian travel and travel related service industry.
Tata Motors Limited is an Indian multinational automotive manufacturing company headquartered in Mumbai. Its products include passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military vehicles. It also owns the British luxury car brand Jaguar Land Rover.
Tata Motors continues to maintain its dominant market share in the LCV segment while slowly grabbing more market share in the personal vehicles segment. Due to the recent slowdown and trade tariff war in China, JLR has been hard hit with declining revenues and big write down and losses recognized.
Zydus Wellness is an Ahmedabad based company that manufactures and sells a big range of health and wellness products all across India. They have a number of recognizable brands like Everyuth, Sugar free, Nutralite and Actilife.
Now with the acquisition of Heinz India, they have acquired a number of sector leading brands in other categories than their own, thus significantly expanding their product portfolio. However, extremely high valuation (more than 50 times P/E) creates a dilemma.
Mahindra & Mahindra
Mahindra & Mahindra is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors in the world. It is a part of the Mahindra Group, an Indian conglomerate.
They are ahead of the rest of the market in capitalizing on the push towards electric vehicles with their new product offerings in the electric 3-wheeler segment which should help them capture the market pretty fast compared to their rivals who are still developing such a product.
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