The NSE Nifty ended the year 2016-17 with 18.55 percent gains and started FY18 by hitting fresh record high of 9,221.80, backed by strengthening domestic currency, political stability and implementation of GST, huge appetite for IPO, earning growth, FII's momentum and declining commodity.
Foreign institutional investors bought more than Rs 49,000 crore worth of shares in the year gone by while the rupee gained past 65 against the US dollar.
The broader markets also participated in the rally, outperforming benchmarks smartly with more than 32 percent surge.
SMC says from the valuation point of view, caution is still there as markets have factored in all the positives that will boost earnings in future.
As an investor key to success and to earn gradual return is through systematic approach in investing and optimum utilisation of opportunities by investing more as and when correction comes due to events that have short term repercussions.
SMC Global Securities says these 5 stocks are looking good on fundamental ground and investors could make systematic & gradual approach for investment opportunities:-
During Q3FY17, it has exhibited healthy improvement in asset quality, while further improved its net interest margins (NIMs). NIMs of the bank have improved to 4.49 percent in Q3FY2017 compared with 4.47 percent in the previous quarter and 4.34 percent in the corresponding quarter last year.
On consolidated front, the bank has reported 34 percent growth in the net profit to Rs 1,266.59 crore for the quarter ended December 2016, up from Rs 945.16 crore in the quarter ended December 2015. Net interest income increased 16 percent to Rs 2,747.05 crore, while other income moved up 11 percent to Rs 2,003.97 crore.
The bank has been consisting delivering on improving asset quality, cost efficiency, other income and productivity in the past quarters. Moreover, with the support of favourable market condition, it has posted strong growth in treasury income and it has also posted strong growth in foreign exchange earnings driven by Iranian oil payments going through the bank.
In addition to that, Government initiatives to support PSUs in terms of capital allocation, mechanism to deal with bad assets, formation of bankruptcy law and setting up of the stressed assets fund under National Infrastructure Investment Fund would give next leg of potential growth.
The company enjoys a global leadership positions in textiles as well as carries an unmatched domestic portfolio of apparel brands and retail formats. Lower investments in brands and repositioning of unlimited, management of the company expects the operating margin to improve in near term.
With company’s capability in manufacturing garments, coupled with its positioning of the most preferred franchisee/distribution partner in India, it is poised to benefit from an increase in demand for apparels.
Technology up gradation and cost control remain important part of the company's strategy to improve the bottomline. Efforts of the management towards cost reduction have started bearing fruits.
Given the healthy order book coupled with consistent improvement in net working capital and government's thrust on infrastructure development & expected improvement in domestic execution, it is expected that the company would do well in coming quarters.
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