Skip to main content

Finvestedge Weekly Market Insights



v  Hindustan Aeronautics has been granted approval for enhancement of working capital to Rs.12050 crore from Rs.7300 crore. Its profitability, which was 115% higher in Q2, is expected to remain strong going forward. A good PSU bet for the long term.

v  In spite of lower revenue, Kamath Hotels posted 74% higher PAT for Q3 due to tight control on expenses. Accumulate.

v  Titan’s trading volumes spurted after ace investor Rakesh Jhunjhunwala increased his stake in the company. Some positive news may be in the offing. Accumulate.

v  Despite a rise in slippages, Axis Bank posted 4.5% higher PAT for Q3. The management is optimistic about its FY20 results. Accumulate for good returns.

v  Edelweiss Financial Services claims to have not violated any foreign exchange regulations. A good contrarian buy.

v  With new product launches, Hawkins Cookers expects a much better performance in the next few quarters. Accumulate.

v  Power Grid Corporation of India bagged 13 out of 20 projects under competitive bidding. With a high dividend yield of ~5% and higher income on fresh projects, its future looks bright. Buy.

v  Reliance Infrastructure plans to become debt-free in a year or two. A good contrarian buy at Rs.22 considering its huge assets, positive arbitrage money in queue and lucrative businesses in hand.

v  Ujjivan Small Finance Bank doubled its profits to Rs.90 crore in Q3 with stable asset quality and NPAs at 0.04%. Accumulate.

v  Dr. Reddy’s Laboratories is steadily moving upward. With new product launches on the anvil, this is a good long-term bet.

v  Shrimp prices are on the rise due to the increasing demand from the US markets, which absorbs about one-third of the ~Rs.140000 crore Indian shrimp exports business. A good time to buy Apex Frozen Foods, Avanti Feeds, Waterbase and Zeal Aqua.

v  With 47% higher PAT for Q3, SBI Life Insurance Co. could rise further.

v  Raymond’s Q3 consolidated PAT zoomed 393% to Rs.196 crore on 13% higher sales of Rs.1885 crore. Accumulate.

v  Larsen & Toubro posted robust results for Q3 with 15% higher PAT of Rs.2352 crore. This stock deserves a place in every portfolio.

v  Volumes in the Shriram Transport Finance Co. counter have risen of late. Its NCD issue was also fully subscribed. A positive for the company.

v  Although RBL Bank’s Q3 PAT fell 69%, the management is confident of cleaning up its balance sheet by this fiscal year end. Hold.

v  The top-line of Butterfly Gandhimathi Appliances is growing due to its tie-ups with online sales agencies. This kitchen appliances stock is under-priced compared to its peers. Accumulate.

v  Cipla has received USFDA observations for its Goa facilities. However, the management does not expect it to affect its top-line. Investors can accumulate this stock on dips.

v  The housing finance sector is likely to get a good boost in the upcoming Budget. A good time to accumulate Indiabulls Housing Finance.

v  Granules India posted excellent results for Q3 with 44% higher EBITDA and an improvement in margins from 18% to 23%. Buy for solid returns within a year.

v  Lincoln Pharmaceuticals is the cheapest share available in the pharma space. With FY20E EPS of Rs.28-30, the stock is likely to fetch over 25% returns in the short-to-medium term.

v  Going by its Q2FY20 results, Jindal Stainless (Hisar) is likely to notch an EPS of Rs.13 for FY20. Buy for good returns.

v  With FY20E EPS of Rs.18+, NCL Industries (formerly Nagarjuna Cement) is amongst the cheapest shares in the cement industry. Accumulate.

v  Bajaj Steel Industries is likely to notch an EPS of Rs.75 for FY20. A conservative P/E of 5x will take its share price to Rs.375 in the medium-to-long term.

v  Meghmani Organics is likely to notch an EPS of Rs.11-12 for FY20. It is setting up a 50,000 TPA Epichlorohydrin project based on Epicerol technology at a capex of ~Rs.275 crore. Its future looks bright. Accumulate.


Disclaimer :
This is strictly for informational purposes only. It is not a solicitation to buy, sell in securities or other financial instruments. FINVESTEDGE do not accept culpability for losses and/or damages arising based on information in this post. Contact your investment advisor before investing.





Comments

Popular posts from this blog

A Valuable FMCG Company for Long Term Investment

A household name for FMCG products in India, the company has strong visibility in growth and earnings in India’s long runway story - As investors shift to safe havens, the Stock has rallied significantly in past few weeks. The question is, if this ‘driver of consumption’ valuable at this Price? Revenue for FY20 stood at INR 397.8 Billion recording a 1.20% Y-O-Y growth with an Operating Profit Margin of 22.27%. For Q4 FY20, revenues were at INR 92.11 Billion with a negative growth Year-on-Year and an Operating Profit Margin of 19.85%. In the past 5 years, revenue has compounded by about 4.60%. The OPM improved from 15.2% in FY 2015 to 22.2% in FY 2020. The Company attributed the Q4 decline due to supply chain disruption during the first phase of the Lockdown. The Lockdown is expected to affect the production and demand destruction till September 2020 and then show improvements. Stock Returns Percentage 1 Year 23.82% 3 Years 28.00% ...

SBI Card IPO - SBI Cards & Payment Services Limited IPO

Objects of the SBI Card IPO: a) The Offer for Sale: The object of the Offer for Sale is to allow the Selling Shareholders to sell an aggregate value up to Rs.8000 Crores of shares held by them.   b) Fresh Issue( 500 Crores )  The net proceeds of the Fresh Issue are proposed to be utilized for augmenting the capital base to meet the future capital requirements. Overview of SBI Card (a) They are the second-largest credit card issuer in India, with an  18.0%  market share of the Indian credit card market in terms of the number of credit cards outstanding as of September 30, 2019. SBI Card is a subsidiary of State Bank of India. (b)  They offer an extensive credit card portfolio to individual cardholders and corporate clients which includes lifestyle, rewards, travel and fuel, shopping, banking partnership cards and corporate cards covering all major cardholder segments in terms of income profiles and lifestyles. (c)  SBI Card has ...

DMART : 3rd Quarterly Results