Ideas for Profit

Ideas For Profit | IRCTC

IRCTC’s opportunity set now goes beyond the monopoly businesses with Indian Railways into an interesting new-age area as well. Hence, despite its steady outperformance, the stock remains a long-term compounder, suitable for any investor. Find out more

Ideas For Profit | Thangamayil Jewellery

Post pandemic, there has been a shift towards the organised players such as Thangamayil Jewellery (TMJL). With implementation of mandatory hallmarking regulation in the jewellery space, the pricing gap between unorganised and organised segment will shrink further, resulting in an advantage for the organised segment in the long run. At CMP, the stock is trading at attractive P/E of ~11x FY23 projected earnings. TMJL also has strong return ratios in excess of 20%. We advise investors to add the stock in the portfolio, here’s why

Ideas for profit | NOCIL

MC Pro remains positive on NOCIL (13.9x EV/EBITDA FY23e), as the base scenario is one of improved global auto demand in the medium-to-long term, and company is well-positioned to capitalise on it with its spare capacity and strong balance sheet. Any faster execution of the ‘China Plus One’ opportunity will be a trigger for re-rating. Watch the video for more.

Ideas For Profit | IIFL Wealth

At Moneycontrol Pro, we believe the best way to play wealth space is through a pure-play wealth manager. Therefore, IIFL Wealth can offer an exciting opportunity as an investment bet. Find out more in this video.

Ideas For Profit | Trent

At CMP, Trent is trading at 32x FY23 EV/EBIDTA projections. Valuations are expensive but strong growth prospects would continue to drive re-rating. Investors should add the stock in the portfolio. Here’s why.

Ideas For Profit | HDFC Bank

With partial lifting of ban, HDFC Bank is back in the game as far as credit cards business is concerned. The audit of the bank’s IT systems is also complete and the matter should get fully resolved soon. The bank now embarks on its digital journey, driving the stock price upwards.

Ideas For Profit | Suven Pharmaceuticals

Suven Pharma’s growth is expected to accelerate as more molecules get into advanced stages of CDMO and new formulations are launched. Valuation of 22x EV/EBITDA for FY23e is not inexpensive within pharma, but available at a discount to peers in CDMOs. Here’s why we think you should invest.

Ideas For Profit | Petronet LNG

At the current market price, Petronet LNG trades at an FY23 PE of 8.6x which is attractive and we recommend long-term investors to buy. Here’s why.

Ideas For Profit | Ashok Leyland

Though demand hit a speed breaker due to the pandemic, the outlook for medium-to-long term looks promising for Ashok Leyland. Demand is expected to recover post the resumption of economic activities. Current valuations also appear reasonable. Watch this video to know why we advise investors to accumulate this stock for the long term.

Ideas For Profit | Bharat Forge

Bharat Forge is trading at a valuation of 23.5 times FY23 projected consolidated earnings, which we believe is at a reasonable level given the strong growth potential. We advise investors to buy and also accumulate at lower levels. Watch the video for more.

Ideas For Profit | Luggage Stocks

The long-term macro drivers seem to be in place for luggage companies despite temporary disruptions. The continued shift of consumer preference from unbranded to branded products, accelerated growth in air travel, wedding season-led buying, shortening replacement cycle and overall GDP growth are the long-term structural drivers for the luggage industry. And we believe, both VIP Industries and Safari remain excellent core discretionary consumption plays for the long-term. Here’s why.

Ideas For Profit | Goldiam International

Goldiam is a niche jewellery manufacturer focussed on export markets with product profile of lab grown diamonds, and selling narrow range of diamond to established retailers. Faster than expected ramp up in the online and lab grown business along with the recent buy-back programme can lead to further increase in the earnings estimates and drive re-rating. Here’s why.

Ideas For Profit | Indian Hotels

Indian Hotels (IHCL) is the best stock to play the recovery theme given its strong brand image, diversified offerings and focus on balance sheet. Here’s why we believe it is the best stock to play the recovery theme.

Ideas For Profit | ICICI Prudential, HDFC Life or SBI Life: Which stock will offer more upside?

Given the promising sector outlook, which life insurance company’s stock is a worthy investment consideration at this juncture? Watch the video to find out the best bet among life insurers.

Ideas For Profit | State Bank of India

Despite the rally, SBI’s valuation is still low at 0.9 times FY23 estimated core book value. The stock is trading below its long term average historical valuation though the RoE has now improved to low double-digit. The strong earnings aided by economic recovery will drive future stock performance. Subsidiaries are also getting bigger and better and will add to the stock upside. Long-term investors should buy SBI to gain from the next leg of re-rating. Here’s why.

Ideas For Profit | Adani Port & SEZ

Adani Ports’ stock has fallen from the high of Rs 900 to current level of Rs 698 a share. It is currently trading at 19 times its FY23 estimated earnings, which we believe is attractive considering good earnings visibility, lucrative port assets, dominant position in the industry, asset backed business model and high operating cash.

Ideas For Profit | HDFC & LIC Housing Finance

HDFC’s core lending business is getting valued at 1.8x FY23 estimated book value. Along with re-rating of the core mortgage business, the future stock upside will be driven by its subsidiaries and associate companies doing well. LIC Housing is trading at 1x its trailing book value for FY21 and at 0.8x book value estimated for FY23E, which is low compared to its historical average valuation. The weak performance in the near term will keep the stock range-bound. Long term investors however can use this opportunity to accumulate the stock. Overall, HDFC should be a core holding in investors’ portfolio and LIC Housing can be a good tactical bet given its distressed valuation.

Ideas For Profit | Marico

Marico’s June quarter results were in line with expectations. Management believes gross margins have bottomed out in Q1FY22 and are likely to recover from September 2021 quarter. We are factoring in a revenue growth of 15% for FY22 and 12% for FY23. Based on our projections, Marico is trading at a P/E multiple of 55x/47x FY22E and FY23E respectively as against the last 10-year average valuation of around 36x. Investors with a long-term view can accumulate this stock and add on declines. Here’s why

Ideas For Profit | Tech Mahindra

Tech Mahindra is seeing positive momentum from enterprise as well communication with strong visibility on 5G front. The investment made in areas of 5G, customer experience, management, AI, cloud, data analytics and IOT puts TechM on a strong pedestal. The robust outlook along with an undemanding valuation makes it an attractive large cap bet to ride on the strong technology up-cycle.

Ideas For Profit | Maruti Suzuki: Is it time to accumulate the stock?

On the back of the uncertainty triggered by the second wave of Covid and the apprehension of a demand slowdown, Maruti’s stock price has fallen 15% from its 52-week high seen in January 2021. Valuations now look reasonable at 31.2 times FY23 projected earnings. We, therefore, advise investors to accumulate the stock in a staggered manner during this soft patch

Ideas For Profit | IndusInd Bank

IndusInd has so far has negotiated the second wave of the Covid pandemic impressively. Armed with capital, excess provision and a high quality balance sheet, growth revival will only be a matter of time. With an undemanding valuation, we see more re-rating ahead. Here’s why

Ideas For Profit | Tata Motors

With a significant reduction in fresh Covid-19 cases, Tata Motors’ management highlighted that demand is coming back sharply and the second half should see significant demand growth. Encouraged by the economic resilience seen after the first wave of the pandemic, the management is confident of a quick revival this time as well.

Ideas For Profit | ICICI Bank

Q1 FY22 earnings reaffirm that ICICI Bank has transitioned well from a stressed bank to a growing lender. However, the valuation is not yet fully capturing the significant improvement in business fundamentals and growth story. Q1FY22 Highlights: · Net profit surged to Rs 4,616 crore, a growth of 78% YoY · NIMs improved on domestic book to 3.9% · Wrote back Rs 1,050 crore of COVID-19 related provisions created in earlier periods · High provision coverage ratio of 78% as of end June is comforting · Stock is trading at around 1.9 times FY23 estimated core book

Ideas For Profit | Bajaj Auto: Riding on new launches, post-COVID trends & export demand

Bajaj Auto posted a decent set of numbers for Q1FY22 despite demand in domestic market getting dented due to second wave of COVID-19. Though near-term outlook looks muted due to fear of another wave, and some restrictions due to the pandemic, medium and long-term outlook for the company look promising. We believe there are factors that are expected to work in favour of the company. Watch the video to know more.