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CLICKKER NEWS http://clickker.in News on your Click Wed, 08 Jul 2020 07:41:52 +0000 en-US hourly 1 https://wordpress.org/?v=4.6.21 Marvelous Sculptors by Angus Taylor http://clickker.in/2020/07/08/marvelous-sculptors-by-angus-taylor/ http://clickker.in/2020/07/08/marvelous-sculptors-by-angus-taylor/#respond Wed, 08 Jul 2020 07:41:52 +0000 http://clickker.in/?p=22708 Angus Taylor is a force to be reckoned with. He relishes working with challenging materials on a scale that many sculptors find intimidating.

His craftsmanship, bold and visionary approach and his original use of materials has resulted in landmark sculptures and many ambitious public and private commissions around the world.

Known for his powerful, often monumental, sculptural works, Taylor works with an extraordinary range of materials from his immediate environment – Belfast granite, red jasper and the orange soil found near Pretoria, where his studio is based. Even when he chooses traditional materials such as granite or bronze, he deploys innovative techniques; imprinting texts into the bronze surfaces or eschewing the ‘carvability’ of granite in favour of its block-like potential to construct works that allude to human form, without describing it.

Contrasted with these materials, are works made of packed grass, compacted earth, charcoal briquettes and stacked slate. The inventiveness with which he tackles materials positions Taylor as a post-modern artist making reference to traditional crafting techniques, but using them to create works that are unmistakably contemporary.

Two decades ago Taylor founded Dionysus Sculpture Works (DSW) where he honed his moulding and casting proficiencies to become a master craftsman. DSW’s skills in modelling, mould-making and casting has made it a much sought-after foundry and, in addition to Taylor’s own projects, the foundry casts for many other leading artists, including Norman Catherine, Sam Nhlengethwa and Deborah Bell. Through his foundry, he employs, trains and nurtures a staff of almost 40 and also finds time to develop the talent of younger artists.

In 2017 he was awarded the prestigious Helgaard Steyn Award for his notable contribution to South African sculpture.

Angus Taylor’s work can be found in many private and public collections in Africa, Europe, North America and Australia.

Enjoy some of his creations across the globe.

You can see more on his website, on  Facebook

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TOP 10 COUNTRIES WITH SLOWEST INTERNET CONNECTION http://clickker.in/2019/07/21/top-10-countries-with-slowest-internet-connection/ http://clickker.in/2019/07/21/top-10-countries-with-slowest-internet-connection/#respond Sun, 21 Jul 2019 11:20:52 +0000 http://clickker.in/?p=1685 Internet the way of getting information, entertaining, is being a most important part of life. When we start to click tabs or links in internet we want them to open as quickly as possible because we are eager to get what we want. What if the internet connection itself is slow? In world there are many countries which have slow internet connections. Think about those people who live in those countries and be calm that you are lucky if you do not belong one of them. Here we have world’s top 10 countries which have slow internet connection among of the countries which have provided internet facilities.

According to the research held previous year in the crowd of the internet using countries the slow internet connection having countries are as below:

10. Malaysia:

images (2)Malaysia is the country located in Southeast Asia. In Malaysia internet was started form 1995 A.D. It is the first country which has slowest internet connection. It has 16% internet connection below the speed of 256 kbps. This is the tenth highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 4.0% from the last quarter. This country is overcoming the problem in the speed of tortoise. There is no such progress in the problem of overcoming the slow internet connection problem.

 

9. Kazakhstan:

Internet_Arab_springKazakhstan is the country located in Central Asia. In Kazakhstan internet was effective form 2001 A.D. It is the ninth country which has slowest internet connection. It has 16% internet connection below the speed of 256 kbps. This is the ninth highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 4.2% from the last quarter. The speed of overcoming the problem of slow internet connection is not satisfactory in this country.

 

8. Indonesia:

malaysiaIndonesia is the country located in Southeast Asia. In Indonesia internet was started form 1983 A.D. It is the eighth country which has slowest internet connection. It has 19% internet connection below the speed of 256 kbps. This is the eighth highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 13% from the last quarter. The speed of overcoming the slow internet connection problem is quite satisfactory.

 

7. Syria

nigeria-internetSyria is the country located in Western Asia. In Syria internet was effective from 2003 A.D. It is the seventh country which has slowest internet connection. It has 19% internet connection below the speed of 256 kbps. This is the seventh highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 10% from the last quarter. The speed of overcoming the problem is very slow in this country.

 

6. Bolivia

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Bolivia is the country located in central South America. In Bolivia internet was effective from 2000 A.D. It is the sixth country which has slowest internet connection. It has 25% internet connection below the speed of 256 kbps. This is the sixth highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 22% from the last quarter. This country is overcoming more rapidly the problem amongst of the countries with slower speed. The speed of overcoming the problem of slow internet connection is very good in this country.

 

5. India:

article-2569720-15EBDB7F000005DC-531_634x423India is the country located in South Asia. In India internet was started from 1995 A.D. It is the fifth country which has slowest internet connection. It has 27% internet connection below the speed of 256 kbps. This is the fifth highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 5.6% from the last quarter. The speed of overcoming the problem of slow internet connection is not good in this country.

 

4. Iran:

Internet-services-in-BahrainIran is the country located in Western Asia. In Iran internet was started from 1993 A.D. It is the fourth country which has slowest internet connection. It has 30% internet connection below the speed of 256 kbps. This is the fourth highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 6.0% from the last quarter. The speed of overcoming the problem of slow internet connection is not satisfactory in this country.

 

 3. Nigeria:

African-American-Couple-Fighting-600x432Nigeria is the country located in West Africa. In Nigeria, internet was started from 1995. It is the third country which has slowest internet connection. It has 31% internet connection below the speed of 256 kbps. This is the third highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 16% from the last quarter. This country is showing progress in solving the problem. The speed of overcoming the problem of slow internet connection is quite satisfactory in this country.

 

2. Nepal:

Photograph: James Glossop/ Guzelian. BRITISH COUNCIL: EDUCATION UK NORTHERN QUARTER.

Nepal is a landlocked country located in South Asia. Internet was effective form 1994 A.D. in Nepal. It is the second country which has slowest internet connection. It has 32% internet connection below the speed of 256 kbps. This is the second highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 4.0% from the last quarter. The speed of overcoming the problem of slow internet connection is very poor in this country.

 

1. Libya

woman-staring-computer.jpg.653x0_q80_crop-smartLibya is the country in the Maghreb region of North Africa. In Libya internet was effective from 2000 A.D. It is the first country which has slowest internet connection. It has 52% internet connection below the speed of 256 kbps. This is the highest percentage of slow internet connections. Though it has slowest speed, this problem was decreased by 5.7% from the last quarter. The speed of overcoming the problem of slow internet connection is not good in this country.

Final Conclusion: Although these countries have started internet facility in their country likely in same time, some are doing good and increasing their quality of internet facility. While some are in the same pace of starting phase to improve their service quality. The most good doing country is Bolivia, which is increasing its service quality rapidly. Though these countries are having problems they and their citizens are using internet facility.

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Khara Ledonne’s Daydreams in a Nutshell http://clickker.in/2019/07/20/khara-ledonne-locket-painting-artjewelry/ http://clickker.in/2019/07/20/khara-ledonne-locket-painting-artjewelry/#respond Sat, 20 Jul 2019 10:02:09 +0000 http://clickker.in/?p=13099 Meet Khara Ledonne a jewelry designer by profession from New York. She’s the one who’s been the creative mind behind making cute, romantic astronomical images on  lockets. Which she refers to as the mini escapes: “You know, the place you want to go instead of where you are.

Khara’s locket has got an unique paintings using oil enamel paint’s and is never repeated in other one. After the paintings and whet he locket is ready she oxidizes the locket to give it that premium aged look.

Her alluring collection’s can be viewed and shopped on etsy website.

 

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#Mini escapes Locket’s120688 (Copy)

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Five Post Office Saving Schemes With Over 7% Interest Rates http://clickker.in/2019/07/19/five-post-office-saving-schemes-with-over-7-interest-rates/ http://clickker.in/2019/07/19/five-post-office-saving-schemes-with-over-7-interest-rates/#comments Fri, 19 Jul 2019 11:50:51 +0000 http://clickker.in/?p=22672 Post offices across the country offer banking services which enable you to open several types of accounts that offer attractive interest rates. Five post office savings schemes that are meant for general public, i.e, people below 60 years of age, fetch interest rates of more than 7 per cent. Post office fixed deposits (FDs), monthly income scheme account, public provident fund accounts, national savings certificates (NSCs) and kisan vikas patra (KVP) are meant for general public and offer interest rates over 7 per cent, according to India Post’s website, indiapost.gov.in.

Given below are details of five post office saving schemes – post office fixed deposits (FDs), monthly income scheme (MIS) account, public provident fund (PPF) accounts, national savings certificates (NSCs) and kisan vikas patra (KVP):

Post office fixed deposits:
Post office fixed deposit accounts, also known as time deposit accounts, require a minimum contribution of Rs. 200. There is no maximum limit on the amount that you can invest in this scheme. A post office fixed deposit account can be opened by an individual via cheque/cash. The account can also be transferred from one post office to another. A nomination facility is available with post office fixed deposit accounts.

Interest rates on post office fixed deposits
If you invest in a post office fixed deposit that has a tenure of five years, the deposit will fetch an interest rate of 7.4 per cent. The interest on post office fixed deposits is payable annually but calculated quarterly. The five-year fixed deposit account also enables the depositor to become eligible for tax benefits under Section 80C of the Income Tax (IT) Act.

Post office monthly income scheme account (MIS)
Post office monthly income scheme (MIS) account can be opened by an individual via cheque/ cash. Any number of MIS accounts can be opened in any post office subject to the maximum investment limit by adding balance in all accounts. MIS accounts require a maturity period of five years. MIS accounts can be prematurely encashed after one year but before three years at a discount of 2 per cent of the deposit and after three years at a discount of 1 per cent of the deposit. (Discount means deduction from the deposit.)

Interest rate on post office monthly income scheme account
MIS accounts fetch an interest rate of 7.3 per cent per annum payable on a monthly basis. The maximum investment limit of MIS accounts is Rs. 4.5 lakh in single account and Rs. 9 lakh in joint accounts.

Post office 15-year public provident fund (PPF) account
Public Provident Fund (PPF) accounts  require a minimum investment of Rs. 500 and a maximum of Rs. 1,50,000 in a financial year. An individual can open this account and it can also be operated jointly. PPF accounts allow for a nomination facility. Maturity period of PPF accounts is 15 years but the same can be extended within one year of maturity for further five years and so on. The maturity value of PPF accounts can be retained without extension and without further deposits also. Withdrawal from PPF accounts is permissible every year from the seventh financial year from the year of opening account. A loan facility is available from third financial year onwards. PPF deposits can be made in lump-sum or in 12 instalments.

Interest rate on post office public provident fund (PPF) account
Interest rates on PPF accounts are decided every quarter by the government, Currently, PPF accounts offer an interest rate of 7.6 per cent per annum (compounded yearly), according to indiapost.gov.in. PPF deposits are completely tax-free which means that the invested amount is eligible for tax deduction, the income that you earn is exempt from tax, and proceeds are not considered as income.

National savings certificates (NSCs)
National Savings Certificates or NSCs are certificates that can be bought from post offices. You need to buy a certificate worth a minimum of Rs. 100. There is no maximum limit on the amount of investment.

Interest rate on national savings certificates (NSC)
An NSC investment will fetch you an interest rate of 7.6 per cent, which is compounded annually but payable at maturity. An investment of Rs. 100 grows into Rs. 144.23 after five years. NSC deposits qualify for tax rebate under Section 80C of IT Act. The interest accrues annually but is deemed to be reinvested under Section 80C of IT Act.

Kisan Vikas Patra (KVPs)
Kisan Vikas Patra (KVPs) requires a minimum investment of Rs. 1,000. There is no maximum limit on the investment that can be made in KVPs. KVP certificates can be purchased by an adult for himself or on behalf of a minor or by two adults from any post office. The certificate can be encashed after two-and-a-half years from the date of issue.

Interest rate on KVPs
KVPs fetch an interest rate of 7.3 per cent, which is compounded annually. The amount invested doubles in 118 months (nine years & 10 months).

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Air India Stake Sale Not Happening For Now: Five Things To Know http://clickker.in/2019/07/19/air-india-stake-sale-not-happening-for-now-five-things-to-know/ http://clickker.in/2019/07/19/air-india-stake-sale-not-happening-for-now-five-things-to-know/#respond Fri, 19 Jul 2019 11:37:32 +0000 http://clickker.in/?p=22664 The government has, for now, decided to suspend divestment in national carrier Air India and will continue to provide funds for its operation, a top official said on Tuesday. Since the airline is posting operational profits, the government does not feel the need to rush for a stake sale, news agency Press Trust of India (PTI) reported quoting the official. A total of 76 per cent stake of the debt-laden carrier was put on sale by the government in March this year but on May 31, when the deadline for bidding ended, Air India failed to receive any interest from investors.

Here are five latest updates on the Air India stake sale and its subsequent suspension:

1) Air India will very soon get funds from the government for its day-to-day operations and will even place orders for a couple of aircraft, the agency reported the government official as saying.

2) “None of the flights go empty. With all the cost efficient mechanism in place, we will continue improving its operational efficiency. There is no need to rush in for disinvestment as of now,” the official said.

3) The government is looking at turning around the company to ensure that it makes profits on overall basis before going in for listing. “Certain conditions have to be met before listing a company. Once Air India fulfils those, we will go in for an initial public offering and subsequent listing,” the source said. As per norms of markets regulator Securities and Exchange Board of India (Sebi), a company has to post profit in previous three financial years before it can list itself in the stock exchanges.

4) “The focus is on improving operational efficiency. We will continue to boost employee morale, starting from the top level, to better the functioning of the airline. Funds would be provided as and when required,” the agency cited the source as saying.

5) The decision to put Air India stake sale on hold was taken at the high level meeting convened by Union Minister Arun Jaitley on Monday. The meeting was attended by Piyush Goyal, who has been temporarily given the charge of finance ministry, Civil Aviation Minister Suresh Prabhu, Transport Minister Nitin Gadkari and other senior officials of finance and civil aviation ministries. (With PTI Inputs)

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Maruti Suzuki India Ltd . (MSIL) Share- INITIATING COVERAGE – Fundamental Research http://clickker.in/2019/07/18/maruti-suzuki-india-ltd-msil-share-initiating-coverage-fundamental-research/ http://clickker.in/2019/07/18/maruti-suzuki-india-ltd-msil-share-initiating-coverage-fundamental-research/#respond Thu, 18 Jul 2019 12:44:39 +0000 http://clickker.in/?p=22691
INITIATINGCOVERAGE
CMP: 7,466/-
9th January 2019
BUY NOW

 

Key Stock Data
CMP 7,466
Market Cap (`Bn) 2255.2
52W High/Low 9,923/6,502
Shares o/s (Mn) 302
Bloomberg MSIL:IS
NSE Code MARUTI
BSE Code 532500
Shareholding Pattern (Sep-18)
Promoters 56.21
FIIs & DIIs 36.15
Public & Others 7.64

Investment Theme
BUY with Target Price of `8,829 (upside potential of 18% over 12-18 months).

Key themes and analysis in this report include:

Competitive intensity (as indicated by the Herfindahl-Hirschman Index (HHI)) has been declining for passenger vehicles (PV’s) in India. This is due to the fact that most global OEM’s continue to struggle in India due to lack of focus and research and development on the small car segment.

Rising industry capacity utilization due to higher penetration of PV’s in India and insignificant capacity expansion plans over the next 2-3 years can further lower discounts and improve the margin profile of the listed players.

On the back of aforementioned positive industry dynamics, we prefer Maruti Suzuki India Ltd. (MSIL) as our top pick in the passenger vehicle space as it is the only pure-play listed PV OEM in India. We believe MSIL is well poised to enter a long term structural growth phase due to vehicle penetration (28 four-wheelers per 1000 people) close to inflexion point as seen in other markets such as Japan, South Korea and China, significant premiumisation as customers upgrade and more features get added, levers for margin expansion in the form of lower royalty payments and increasing contribution from Gujarat plant (though margins would be lower in the near term due to initial start-up costs for the plant) and strong product pipeline over the next 2-3 years.

Other growth drivers include Suzuki’s partnership with Toyota which is steadily gathering momentum with an agreement reached on a number of issues including sharing of EV technology with Suzuki by Toyota. This agreement is likely to play a crucial role in the long term for MSIL as EV penetration gradually scales up in India over the long term.

At CMP of `7,466, MSIL is currently trading at FY20E and FY21E EV/EBITDA of 14.8x and 12.8x respectively. We value

MSIL at `8,829  per share by applying 15.1x EV/EBITDA, at a premium of 20% to its 3 year average EV/EBITDA of

12.6x. We believe MSIL deserves a premium EV/EBITDA multiple compared to its historical 3 year average due to the following reasons:

Why MSIL deserves a premium compared to its historical EV/EBITDA multiple
Scarcity premium: MSIL deserves a scarcity premium as it is the only pure-play listed PV player. Seeing through near term challenges, we believe fundamentals around penetration, rising urban discretionary spends and demographics are attractive. PV industry and MSIL offer reasonable growth potential over an extended period of time.

Limited competition risk: We believe MSIL’s dominance is difficult to challenge given it is far ahead of its competition in terms of its scale, cost structure and distribution. India is of utmost strategic importance to Suzuki unlike global peers.

Superior financial metrics: MSIL’s financial metrics such as margins are far superior, market share has jumped to 52% in YTDFY19 compared to 44% four years ago and product portfolio is far more diversified. RoE, both core and ex- cash are better than the past. Balance sheet has more than $5bn in cash.

MSIL is more of an urban discretionary play. Benchmarking to consumer discretionary companies, all the below mentioned stocks are trading at higher valuation multiples than MSIL, and we see scope for re-rating here for MSIL.

P/E EV/EBITDA ROE
M. Cap
(
`Bn)
EPS Growth (%)CAGR- FY18-21E) PEG FY19E FY20E FY21E FY19E FY20E FY21E FY19E FY20E FY21E
Titan Company 845 24.8% 3.0 58.5 46.5 38.4 40.9 32.6 26.6 25.4 27.0 27.9
Avenue Supermarts 1003 27.5% 4.4 98.5 75.7 59.6 57.7 44.7 35.6 19.6 20.9 21.7
Asian Paints 1348 16.4% 4.2 59.4 49.7 41.5 37.5 31.4 26.3 25.3 26.6 27.6
Pidilite 558 12.7% 4.6 57.3 47.5 40.5 37.9 32.0 27.5 25.0 26.2 26.5
Havells India 426 21.3% 3.0 50.1 41.7 35.9 32.7 27.6 23.8 21.3 22.3 23.2
Crompton Greaves 143 18.8% 2.4 38.1 31.2 26.7 23.7 20.0 17.5 41.1 38.9 36.2
Voltas 177 11.4% 2.7 29.6 25.5 22.5 25.2 21.7 19.0 14.6 15.2 15.4
Jubilant Foodworks 165 35.4% 2.4 54.3 42.6 33.5 26.6 22.2 18.1 26.7 27.4 28.3
Maruti Suzuki 2255 12.8% 2.2 27.6 23.4 20.0 17.6 14.8 12.8 18.2 19.3 20.1

Financial Highlights

Maruti Suzuki India Ltd. (MSIL) is India’s largest passenger vehicle company commanding a market share of 50% in domestic market with ~1.65mn vehicles sold in FY18. It is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has two manufacturing plants with an installed capacity of 1.56mn vehicles per year. In addition, with strong demand outlook, MSIL has set up a plant in Gujarat with a capacity of 7.5L to be commissioned gradually over FY18-21 in order to achieve its target of selling 2mn vehicles by 2020. MSIL has one of the largest sales network with 3,426 sales outlets (including NEXA) and has 3,570 service workshops as on 1st January 2019.

Benign competitive intensity

  • The Herfindahl-Hirschman Index is an index that measures the market competitiveness of  a certain industry. A highly concentrated industry would mean a high degree of concentration, whereby only a few players in the industry hold a large percentage of the market share, leading to a near monopolistic situation. A low degree of concentration would mean that the industry is close to a perfect competition scenario, whereby there are many firms of more or less equal size that share the market. HHI ranges from 1(least concentrated) to 10,000 (most concentrated). According to the U.S. Department of Justice, an HHI of less than 1,500 represents an industry with low market concentration, an HHI ranging between 1,500 to 2,500 represents moderate concentration and an HHI of more than 2,500 represents a hig2h0ly10concentrated industry.
  • Our analysis of the competitiveness of India’s automotive industry, as indicated by the Herfindahl Hirschman Index (HHI) indicates high consolidation across segments.
  • The HHI Index for the Indian passenger vehicle market stands at ~2900, indicating2a01hi1ghly concentrated industry. This is led by MSIL, which has further increased its market share to 52% in YTDFY19. In our view, the consolidation is likely to remain high in the future due to dominant performance by MSIL and weak performance by global players as they are not likely to be aggressive in the small car segment.
  • In  the  Indian  automobile  industry,  HHI  Index  is  highest  for  the  commercial  vehicle  sector  followed  by  passenger vehicles, tractors and two-wheelers. Notably, while consolidation is increasing for PVs, it has been decreasing for commercial vehicles and tractors.
  • Similar analysis for other consumer categories in India indicates that paints, adhesives and toothpaste category are highly consolidated and markets tend to assign higher valuation multiples to companies where consolidation is high.

Tepid Capacity Expansion plans to keep utilization levels high and discounts low

  • The combined capacity utilization of all OEM’s in the passenger vehicle industry stood at ~75%  in FY18. While MSIL and Hyundai operated at close to 100% capacity utilization, their peers operated at much lower (50-60%) utilization levels. With higher penetration in coming years and no significant capacity expansion plans over the next 2-3 years, we believe the overall capacity utilization could inch closer to 80% in the coming years which would lower the risk of pricing indiscipline and improve the profitability of most players.
  • Apart from MSIL adding capacity of 2.5L units each in Jan-19 and Jan-20 and Hyundai adding capacity of 50k units in 2019, there are no capacity expansion plans announced by other OEM’s as they’re running at lower capacity utilization levels. However, we also learn from media reports plans of MG Motor India  (Financial Express) and Kia Motors  (Thehindubusinessline) of entering India
  • MG Motor India has acquired a car manufacturing unit in Halol from General M2o0to1r1s and plans to invest `50bn in India over the next 6 years and launch one new car in India every year. The Halol plant is expected to have an initial capacity of `80,000-85,000 units. MG Motor India has also confirmed that the first product will be an SUV which will be rolled out ahead of the planned schedule of second quarter of 2019.
  • Kia Motors, the South Korean automotive company, is in the process of setting up its plant in Andhra Pradesh at an investment of $2bn after witnessing Hyundai’s strong presence in the market, considering it could also leverage HMC’s supply chain/distribution network and production facilities. The capacity of the said plant is expected to be 300,000 cars annually. Vehicle production is earmarked to begin later in 2019. Also, it is likely to utilize 50% of its capacity for contract manufacturing for Hyundai. We believe this can raise the competitive intensity in the small car segment (~35-40% of industry) and can pose a threat to MSIL’s dominance in the segment (~55-60% share) in future, if executed well.
  • We also note that ~14% of the industry capacity is currently exported, thus it has room for utilizing the capacity more for satisfying the domestic demand. General Motors has exited the domestic market and is only focused on exports at present.

Low penetration to aid robust long term growth

  • Vehicle penetration in India currently stands close to 28 four-wheelers per 1,000 people, as per estimates. The total four-wheeler population was considered while making these estimates due to i) share of CV to vehicle population is very low, ii) there is a very thin line of distinction between passenger vehicles and commercial vehicles globally, iii) too much granularity is not available for very old data. In any case for markets where purely PV data is available, the results are largely similar.
  • Historically, vehicle sales in some of the key global markets have shown an inflexion point at a similar level of penetration. In countries such as South Korea, Japan and China, CAGR of car sales were in excess of 20% over the next 5 years once this level of penetration was achieved. This was supported by strong growth in GDP per capita. GDP per capita registered a growth of over 8% over the same period. India’s GDP per capita is expected to register a growth of 6-7%, and we expect car sales could keep growing at 12-14%. The growth rates could be higher if the GDP per capita growth picks up.
  • The Indian passenger vehicle industry has registered a meagre volume CAGR of ~4.3% over FY13-18. This is primarily due to a cyclical slowdown over the past few years as the period was marked by a sharp slowdown in GDP and industrial growth. As per IMF Forecasts, GDP is expected to growth at 7.3% in FY19 and 7.4% in FY20 which should accelerate car sales going forward.
  • We believe MSIL would be a key beneficiary of an uptick in passenger vehicle sales as it occupies more than 50% of the market share in this space. MSIL’s unparalled distribution network creates a business moat while serving the hinterland. As on 31st March, 2018, MSIL’s sales network stood at 2,627 including 316 NEXA channels and 190 commercial channels. Hyundai, having the second largest dealer network, has ~490 dealers and is nowhere close to Maruti. Further, most global OEM’s have been unable to materially improve their market share or profitability despite their presence in India since quite some time as ~75% of passenger vehicle volumes consist of small cars due to the difference in tax structure and low per capita income prevailing in India. Global OEM’s have limited products in this space due to limited exposure to India and lack of India focused R&D. These are the reasons why they have not been able to challenge the market incumbents.
  • In  view of  the  above, we believe Maruti,  having a  deep entrenched rural network and lack of  competition in  the small car segment, stands to gain the most from an underpenetrated passenger vehicle market which is close to an inflexion point as observed globally and well poised to register double digit growth for many years to come.
  • Premiumization to boost ASP’s going forward
    The PV industry mix has been steadily improving with more Utility Vehicles (UV’s) at approximately 30% market share, while the share of the entry/hatchback/compact sedan segments have been declining marginally over the last 5 years. The share of entry/hatchback has fallen from 20%/22% in FY13 to 16%/19% in FY18, the share of utility vehicles has improved steadily by 600bps from 22% in FY13 to 28% in FY18.
  •  This phenomenon is also due to the fact that customers are willing to pay a premium for additional features such as Bluetooth connectivity, reverse parking cameras, navigation systems, projector headlamps and automatic transmissions, which is leading to a sharp improvement in ASP’s for original equipment manufacturers (OEM’s). For example, MSIL has seen a 4% CAGR jump in its average realizations over the past 5 years following new launches in the utility vehicles segment though its absolute sales realization is still the lowest among OEM’s in India. However, we expect a meagre 2% CAGR in ASP’s over the next few years due to new launches at the lower end of the price spectrum.

A comparison of ASP’s across OEM’s indicates that most OEM’s have seen healthy improvement in ASP’s corroborating our thesis. However, Nissan and Renault have seen a sharp dip in ASP’s primarily due to adverse model mix, as they had new launches in the lower priced segments. Amongst peers, MSIL has the lowest ASP’s, highlighting scope of improvement in the years to come. Thus, we expect MSIL’s ASP’s to materially improve over the next few years on account of improving share in the premium segments.

Multiple levers for margin expansion

  • The MSIL Board approved a revision in the method of calculating royalty in January 2018 which would result in lower royalty payments for all new model agreements starting the Ignis (January 2017 onwards). Under the new agreement, royalty on new models will be (i) denominated in INR, reducing currency volatility and improving margins as JPY appreciation has weighed on margins over the past few years, (ii) Rate paid will come down as volumes reach a certain threshold. As of now, 5 new models are covered under the agreement but this will rise as new models get rolled out. Overall, we expect royalty as a % of sales to come down below 5% in 2-3 years and even lower beyond that.
  • As the Gujarat plant ramps up starts contributing more to revenues (~8% of volumes in FY18 to ~24% of volumes by FY20), margins for MSIL will improve significantly from the current blended margins due to (i) fiscal incentives at Gujarat plant, (ii) better operational efficiencies, (iii) lower labour cost and (iv) improving localisation at Gujarat plant from current 15% to 60-70% by FY21-22e. The Gujarat plant is eligible for SGST refund from the Gujarat Govt. for cars sold in Gujarat. Gujarat contributes ~7-8% of MSIL’s total volumes and could potentially improve MSIL’s margin by 15-20bps over the next 2 years. Further, overall staff cost would be lower at Gujarat plant than the Haryana plant due to (i) younger age profile at Gujarat, (ii) location (Haryana plants are located in the city) and (iii) lower minimum wages (15% lower in Gujarat than Haryana). Improving localisation at Gujarat plant would result in reduced dependence on foreign exchange, savings on inward freight and better cost efficiencies for MSIL going forward.
  • Platform consolidation led benefits will gradually start flowing in as most of the new launches are based on Suzuki’s fifth generation HEARTECH platform. HEARTECH platform offers improved safety, improved rigidness (10% higher) and lowered model weight (15%) which ensures smooth migration to stricter safety/environment norms. New Swift, Dzire and Ertiga have been launched from this platform by MSIL. Platform consolidation also leads to increasing common parts and allows a faster time to market for new launches/refreshes. Overall MSIL has a cost efficiency program under way with a tight control on production processes, material procurement and vendor ramp/efficiencies. Operating leverage benefits should continue to be positive as plants operate at above rated utilisation levels.

On the basis of the above levers for margin expansion, we expect MSIL’s EBITDA margin to improve by 80bps to 15.9% over the next 3 years.

New launches to support market share

  • In 2015, Suzuki had set a target to introduce 20 new models in five years globally- this included five new models in the mini car segment, six new models in the ‘A‘ segment and three new models in B, C and SUV segments each (nine in total) to aid its arm Maruti Suzuki achieve its target of selling two million units annually by 2020. Out of these 20 models, except for the Kei Jidosha (mini cars), rest would be launched in India.
  •        MSIL’s product pipeline remains strong, with at least two new launches over the next 3 years. New launches over the next 2 years include Wagon-R and Alto (Mini segment) and Ertiga (MPV) in full upgrades and  Future S Concept (Micro SUV) and Vitara (SUV) in new launches.
  •           With tepid new launches by Maruti in 2018 (new Swift, new Ciaz and Next Gen Ertiga), the discounts were consequently increasing to push sales of older variants. With contribution of new products to start increasing CY19 onwards, the discounts should moderate from current levels. Also, the product mix should start improving which should aid realizations going forward.new launch1

    new launch2

Category Company 2019 2020 2021
Maruti Wagon-R (Q4FY19)
Maruti Alto (H2CY19)
Hyundai Grand i10 (Oct-19)
Mini Hyundai i20
Renault Kwid (H2CY19)
Premium Hatchback Tata 45X (End CY19)
Micro SUV Maruti Future S Concept (H2FY20)
Mahindra XUV300 (Jan-19)
Hyundai Carlino (QXI) (Apr-19)
Compact SUV Datsun End CY19
Kia End CY19
Compact Sedan Hyundai Elantra (H1CY19) Xcent (H1CY20)
Tata Harrier (Early 2019)
Kia SP Concept (Apr-19)
Maruti Vitara (H1CY19)
Nissan Kicks (Q1CY19)
SUV Renault Duster (Mid CY19)
Hyundai Santa Fe (Mid CY19) Creta
MPV Renault RBC (Mid CY19)

Short term headwind receding

  • Demand for passenger vehicles is negatively correlated to crude oil prices and consequently MSIL stock is negatively correlated to crude oil prices as people prefer to postpone/defer their purchases in a high fuel price environment. Crude oil prices fell sharply by
  • ~70% from June-14 to Jan-16 thereby aiding demand for passenger vehicles. However, crude oil prices rebounded subsequently from
  • ~$34/bbl to touch a high of ~$85/bbl in early Oct-2018 dampening demand for passenger vehicles. However, from its peak of
  • $85/bbl, crude oil prices have slumped close to ~30%.
  •        The increase in crude oil prices witnessed over the past two and a half years was the first inflationary period witnessed after the fuel price deregulation era, which resulted in near perfect transmission of higher crude oil prices to fuel prices, denting auto sentiment. The impact of higher crude oil prices was witnessed far earlier on consumer sentiment, where we have seen stagnant passenger vehicle sales in the current financial year compared to last year.
  • A cool-off in the crude oil prices as witnessed recently should prompt prospective/first time buyers to consider buying a passenger vehicle, thereby boosting passenger vehicle sales in the coming future.


    Valuation & Recommendation

    BUY with Target Price of `8,829 (upside potential of 18% over 12-18 months)

    Competitive intensity (as indicated by the Herfindahl-Hirschman Index (HHI)) has been declining for passenger vehicles (PV’s) in India. This is due to the fact that most global OEM’s continue to struggle in India due to lack of focus and research and development on the small car segment.

    Rising industry capacity utilization due to higher penetration of PV’s in India and insignificant capacity expansion plans over the next 2-3 years can further lower discounts and improve the margin profile of the listed players.

    On the back of aforementioned positive industry dynamics, we prefer Maruti Suzuki India Ltd. (MSIL) as our top pick in the passenger vehicle space as it is the only pure-play listed PV OEM in India. We believe MSIL is well poised to enter a long term structural growth phase due to vehicle penetration (28 four-wheelers per 1000 people) close to inflexion point as seen in other markets such as Japan, South Korea and China, significant premiumisation as customers upgrade and more features get added, levers for margin expansion in the form of lower royalty payments and increasing contribution from Gujarat plant (though margins would be lower in the near term due to initial start-up costs for the plant) and strong product pipeline over the next 2-3 years.

    Other growth drivers include Suzuki’s partnership with Toyota which is steadily gathering momentum with an agreement reached on a number of issues including sharing of EV technology with Suzuki by Toyota. This agreement is likely to play a crucial role in the long term for MSIL as EV penetration gradually scales up in India over the long term.

    At CMP of `7,466, MSIL is currently trading at FY20E and FY21E EV/EBITDA of 14.8x and 12.8x respectively. We value MSIL at `8,829 per share by applying 15.1x EV/EBITDA, at a premium of 20% to its 3 year average EV/EBITDA of 12.6x. Reasons for ascribing a premium valuation compared to its past 5 year average include scarcity premium (being the only pure-play listed PV OEM in India), limited competition risk (far ahead of its competition in terms of scale, cost structure and distribution) and superior financial metrics.

    Risks & Concerns
    Slower than expected industry growth – We have built in a volume CAGR of 9% over FY18-21E in the domestic segment. If industry volumes remain weak or if new launches fail, there could be a downside risk to our earnings estimates.

    Significant increase in raw material costs – If commodity costs increase significantly, there could be downside risks to our EBITDA margin estimates.

    Risk of production disruption – MSIL is expected to operate at greater than 90% capacity utilisation over the next

    2-3 years. Thus, any disruption in production for MSIL or vendors could affect its volumes and market share, and scope to cover up could be quite limited.

    Delay in new capacity addition for its Gujarat plant – We expect Phase 2 and Phase 3 of the Gujarat plant to come on stream by H2FY19 and H2FY20 respectively. Any delay in adding new capacity could lead to a shortfall in volumes.

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Contemporary Surrealist Oil Paintings by Joel Rea http://clickker.in/2019/07/04/contemporary-surrealist-oil-paintings-by-joel-rea/ http://clickker.in/2019/07/04/contemporary-surrealist-oil-paintings-by-joel-rea/#respond Thu, 04 Jul 2019 07:26:27 +0000 http://clickker.in/?p=19608 Joel Rea is an artist was born in 1983, lives and works in Queensland, Australia who creates hyper realistic oil paintings. Joel Rea celebrates the power of nature and manages to make us feel ever-so small. He uses oil on canvas and very reach color shades to make these oil paintings outstanding. His painting includes portrays massive ocean waves, powerful winds and falling rocks. Within those brutal natural landscapes he places lonely men in suits, and sometimes tigers with the goal of making us feel insignificant against the elemental forces.

Joel graduated from Queensland College of Art with a Bachelor of Fine Art in 2003. He has exhibited his work in Australia and the United States of America and has been acclaimed for his oil paintings in many prestigious art awards throughout Australia.

Look at these realistic oil paintings created by Joel Rea. You can also follow him on Instagram page @joelrea.

For more interesting stuff visit:

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Amazing 3D Pencil Art By 17 Year Old Artist Alessio Giffi http://clickker.in/2019/07/02/amazing-3d-pencil-art-by-17-year-old-artist-alessio-giffi/ http://clickker.in/2019/07/02/amazing-3d-pencil-art-by-17-year-old-artist-alessio-giffi/#respond Tue, 02 Jul 2019 11:07:11 +0000 http://clickker.in/?p=21796 17 year old artist Alessio Giffi from Rome, Italy who love to create amazing 3D drawings on paper. He specializing in 3D art. Alessio has horned his skill in drawing, painting and sketches, he mostly draw about comic character and more. The most amazing thing is that, he only uses color pencils to make these magnificent artwork.

If you look at his collections, you will feel that these are normal computer cut-outs, but if you observe closely, these are the outcome of magnificent drawings by Alessio Giffi.

Done below you can see 3D drawings created by Alessio Giffi, you can also check out his more artwork on Instagram page @alessio_giffi.

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Artist W.P. Ven Depict Lovely Yet Funny Story Of A Ice Cube – “CubeMelt” http://clickker.in/2019/07/02/artist-w-p-ven-depict-lovely-yet-funny-story-of-a-ice-cube-cubemelt/ http://clickker.in/2019/07/02/artist-w-p-ven-depict-lovely-yet-funny-story-of-a-ice-cube-cubemelt/#respond Tue, 02 Jul 2019 06:14:47 +0000 http://clickker.in/?p=22645 Artist W.P. Ven creates funny moments and adventures as he makes the most of his cool life! Ven started creating a small comic strip of an ice cube as his main character. These short comic strips show the cool life of an ice cube.

Looking at these hilarious, but cute comic strips how Ven brings a piece of ice cubes to life and depicts its journey every day. You can also check more of these funny comic strips at his Instagram page @cubemelt.

Artist W.P. Ven Ice Cube Mealt (1)


Artist W.P. Ven Ice Cube Mealt (2)


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Artist W.P. Ven Ice Cube Mealt (4)


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Artist W.P. Ven Ice Cube Mealt (10)


Artist W.P. Ven Ice Cube Mealt (11)


Artist W.P. Ven Ice Cube Mealt (12)

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Imaginative World from Everyday objects http://clickker.in/2019/07/01/imaginative-world-from-everyday-objects/ http://clickker.in/2019/07/01/imaginative-world-from-everyday-objects/#respond Mon, 01 Jul 2019 10:56:06 +0000 http://clickker.in/?p=8184 The artist is a receptacle for emotions that come from all over the place: from the sky, from the earth, from a scrap of paper, from a passing shape, from a spider’s web.

Ecuador-based illustrator Javier Perez takes you to his imaginative world created from bits and pieces of everyday objects.

 

 

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