BQ Prime's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
We analyse the price movements of key commodities and identified companies from our coverage universe that can benefit or be impaired by movements in commodity prices.
Crude oil prices cooled off in the past two quarters after rising for eight quarters continuously. It historically remains at elevated levels. Even crudebased derivatives may follow suit, but with some lag. The whole commodity basket grew 3.3% YoY, but fell 1.7% QoQ in Q3 FY23 till date.
To combat input cost inflation, companies undertook various rounds of price hikes in the past few quarters, which, in turn, affected demand. Now, with input costs starting to recede from peak levels, we expect gross margin to improve in the later part of the fiscal as companies are currently sitting on inventories purchased at elevated prices.
If input costs correct further, companies may pass on the benefit to consumers immediately to boost demand, especially in rural India. Few companies have started to pass on the benefit to consumers.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.