Prasad of Kotak Institutional Equities also felt NBFCs could see some pressure as banks will look to capture retail customers. He prefers Aurobindo Pharma and IOC as valuations look reasonable and cheaper than peers.
Despite being the poster boy of organized retail, Future Retail’s operational efficiency is nowhere close to that of D-Mart’s.
Analysts feel that high valuations offer limited upside to the stock. Along with that, they also highlight financial performance, regulatory frameworks, if any, to hit the firm.
The market is currently driven by global liquidity and it would be too early for investors to take money off the table, Apabhai of Citigroup has said. Yes, valuations do look extreme but investors should not worry about that too much and enjoy the liquidity party for a month of two.
Analysts overall are upbeat on the markets based on the election outcome, but are also cautious ahead of the earnings as well as the arithmetic in the Upper House of the Parliament.
Analysts cite customer acquisition models, store ownership, promoter background, among other as its strengths. However, discounts, manpower intensive business, discount war among others could be the key risk.
The recent rally has led to a run-up in valuations, and Mahesh Patil, Co-Chief Investment Officer at Birla Sun Life AMC told CNBC-TV18 he would prefer to not chase the market, but look to buy at better price points.
Cite appropriate valuations along with aid to scaling up healthcare vertical as reasons for their thumbs up. Simultaneously, Credit Suisse also feels this will be earnings neutral or be very slightly accretive.
Brokerage houses cite better leadership position, volumes to subscribe to the issue. However, challenges include tech challenges, dependence on few advertising agencies, among others.
On this show, we are looking to put into perspective the goings-on in the e-commerce space in India. The malaise has been around for a while with murmurs of an impending meltdown doing the rounds as some of the biggest players have found it difficult to raise funds.
Amid a top-level churn over the past couple of months where five top executives left the company, recent valuation markdowns has meant more bad news for India‘s largest e-commerce company.
Market valuations are not cheap and investors need to be picky and ready to take 'serious risks' to see healthy returns, says Ajay Srivastava, CEO of Dimensions Corporate Finance Services.
Market valuations are slightly beyond comfort and with no big macro events lined up, a runaway rally is unlikely, says Mahesh Patil, Co-Chief Investment Officer at Birla Sun Life AMC.
The ongoing stock market rally is driven by fund flows but has little support from fundamentals, Pramod Gubbi, Head of Equities at Ambit Capital, told CNBC-TV18 Tuesday.
Lenders with a retail focus within the banking pack outperformed by a significant margin. The question now arises whether it will be an early call to put your faith behind corporate lenders?
With just 2 more years at the government‘s disposal to reinforce growth, Nilesh Shah, MD & CEO of Envision Capital hopes it does not stick to the path of fiscal consolidation in the upcoming Budget. It is worth taking the risk and providing incentives to bolster investment and consumption, he says in an interview to CNBC-TV18.
UltraTech Cement posted better-than-expected third quarter earnings Saturday but Murtuza Arsiwalla, analyst at Kotak Institutional Equities is not too optimistic on the stock right now due to its rich valuations.
There seems to be a disconnect between Narendra Modi's government and its tax official when it comes to taxing startups
According to experts, the private equity space was abuzz with deal activities throughout the year, both in terms of exits and investments, but the kitty was smaller in comparison to 2015. In fact, most of the IPOs in 2016 were offer for sale by PE owners, which were well received among investors.
Trend in global markets and crude oil prices are expected to set the market trend in the week, while a bit of recovery is likely on the back of attractive valuations, say experts.
â€œThe valuation is now looking much more reasonable against the background of likely very good growth in the first half if not the whole of next year,â€ Parker told CNBC-TV18, adding that downside risks at current levels are pretty low.
Watch Varinder Bansal of CNBC-TV18 talking about stocks, which have fallen the most and where valuations are looking reasonable.
A sector with a high growth rate will deserve a higher PE while a matured sector will always get a lower PE.
If the market continues to rally without earnings moving higher then Quantum AMC will be forced to sell out and cash levels in the fund could inch up further, says Fund Manager Nilesh Shetty.
Nischal Maheshwari of Edelweiss Securities believes valuations are currently stretched and global events lined up over the next few months like US Presidential elections, Federal Open Market Committee (FOMC) meetings, among others could prove to be impediments for markets to hit new highs soon.