Home First Finance: Will disbursements sustain despite stiff competition? | Stock of the day
Home First is growing its loan book consistently, backed by buoyant demand from tier 2/3 cities and strong policy thrust. The company reiterated the AUM growth guidance of 30 percent and expects the loan book to cross the Rs 10,000-crore mark in the next 12 months. The main drivers will likely be distribution expansion and market share growth. The company’s asset quality remains resilient, and in terms of return ratios, Home First achieved an industry-leading return on equity (RoE) of 15.6 percent in Q2 FY24.
Cantabil Retail India: Rapid store expansion, widening product portfolio to drive growth | Stock of the day
CRIL is continuing rapid network expansion by not only deepening presence in existing cities but also entering new towns. Increasing share of women wear as well as accessories would drive the same store sales growth (SSSG). Entry into newer categories will broaden the offerings and serve as a one-stop shop for the consumers.
Deccan Cement: Small sized cement manufacturer with strong financial discipline | Stock of the day
Deccan Cements is a small-sized cement manufacturer having an impressive track record of consistent performance. The firm has produced solid operating metrics even in competitive market conditions. The management is planning to double the cement capacity from the current levels.
One of the companies to benefit from the adoption of EVs and premiumisation | Stock of the day
Gabriel India, a leading shock-absorber manufacturer, continues to do well. Our confidence in the company remains strong because of robust demand across various segments, its leadership position, and the emerging opportunities in the sunroof and electric vehicle (EV) sectors.
Should investors bet on Aditya Birla Capital? | Stock of the day
Aditya Birla Capital is the holding company for the financial services business of the Aditya Birla group and holds majority stake in various subsidiaries, which operate mainly in the commercial and retail finance, housing finance, asset management, and life and health insurance segments. The company has been strategically growing its lending and other businesses, mining the existing customer base with more up-sale opportunities. The company has posted a stellar show in Q2 FY24 and its outlook looks promising. Thrust on cross selling, investments in digital, and leveraging ‘One ABC’ to support future growth momentum
LIC | Will the rising market tide lift this underperformer? | Stock of the day
The stock of Life Insurance Corporation of India has underperformed since its listing in May 2022. While the valuations of the largest insurer certainly point to more upside in the stock, there are few issues ranging from potential government interference, slower technology adoption and lower business growth amid stiff competition from private players. But the current valuation is more than pricing in the concerns which makes the risk-reward favourable for the stock. While LIC’s performance lags private peers on certain parameters, the insurer’s strategy and focus aims to overcome the concerns in the medium to the long term
JLR puts Tata Motors on glide path to zero auto debt
Tailwinds from robust demand for luxury cars, easing chip and other supply constraints and, a stellar order book build optimism for higher margins
Ashok Leyland: making the most of CV market momentum
What could surprise negatively is pressure on market share and stiff competition that may take a toll on pricing and profitability
Adani Group faces probe over Mumbai airport finances amidst ongoing scrutiny
Among other probes, India’s Ministry of Corporate Affairs initiated an investigation into the Adani Group’s financial statements in February.
The overcast condition is clearing for Dhanuka Agritech | Stock Of The Day
Dhanuka Agritech Limited is one of India’s leading agri-input companies and was among the Forbes magazine's “200 Best under A Billion Companies in Asia Pacific”. It has three state-of-the-art manufacturing facilities in Rajasthan, Gujarat and J&K with well-equipped quality testing facilities. The company has developed in–house expertise in registering new molecules in India as well as data generation
Building Resilient Leadership In The Building Material Industry | Cera Sanitaryware |Stock Of The Day
Cera Sanitaryware has an impeccable track record of over three decades, strong brand and dominant position, and extensive retail network. While the sanitaryware business remains the largest revenue contributor, the company has successful diversified into related businesses (Faucetware, Tiles, Wellness) to emerge as a complete bathroom solutions provider.
Vesuvius India: Capex program likely to be completed in phases in CY24 | Stock of the day
Vesuvius India is one of the leaders in refractory material largely supplied to steel and other process industries. Vesuvius India has announced a capex of Rs 500 crore, of which Rs 100 crore was expended in CY22 and other are in the pipeline to be completed by CY24. Assuming an asset turn of 3x, which means doubling of revenues in 3-5 years assuming a growth of 18-20 percent. With higher revenue growth and operating leverage coming into the picture, we expect higher growth in EBITDA and profitability
A strong bet on better education standard with unmatched brand value | Navneet Education
Navneet Education is a market leader in the publications business with strong presence in paper stationery, globally. The stock rallied post the news of demerger of Navneet Futuretech Limited, the ed-tech business. Moreover, Navneet is getting ready for the next phase of growth after the infusion of equity capital by Kedaara Capital, who acquired a significant minority stake in the K-12 Techno Services from Sequoia Capital. Although, the deal value is not disclosed yet, a sharp upward revision is expected in the investment value. The company saw marked improvement in its core businesses in the June quarter, and the education reforms will provide thrust to revenues in the current fiscal.
Krsnaa Diagnostics | Key Role in Transforming India’s Healthcare Infrastructure | Stock of the Day
Stock of the day: Krsnaa Diagnostics operates a unique business model and provides pathology, imaging/radiology, and teleradiology tests through the PPP (Public Private Partnership) model and has a good track record of contract execution
Gland Pharma | Growth momentum in US business may help re-rate | Stock Of The Day
Incorporated in 1978 and promoted by Fosun Pharma, Gland Pharma is a strong play on global generic injectables. It operates on B2B model with leading pharmaceutical companies such as Sagent, Apotex, Fresenius Kabi and Athenex. It has eight manufacturing plants and have a capacity to manufacture about 100 crore formulation units per annum.
Stocks stalled as oil surge sets stage for longer US rate peak
Stocks struggled for headway on Wednesday while U.S. yields stood at or near decade highs along the curve as surging oil prices stoked inflation and set the scene for the Federal Reserve to project interest rates staying higher for longer.
Strategic projects to boost paper and pulp capacity and improve operating costs
Seshasayee Paper is one of the leading producer of branded writing and printing paper in southern India. The company is currently mulling investing in a new project to enhance paper and pulp capacity. This will improve scale and lower its overall operating cost, which will likely support margins. Key long-term growth drivers include phased NEP implementation and rising e-commerce, coupled with plastics substitution. The company is well positioned to benefit from the long-term sector tailwinds on account of its well-diversified product mix, backward integration, and the improved financial risk profile.
Thangamayil Jewellery Limited | Regional Player Set To Strengthen Its Position | Stock Of The Day
Thangamayil Jewellery is set to bolster its presence in the jewellery industry, with enhanced distribution reach and entry into bigger cities. Tapping new customers via sales of non-gold jewellery and cross-selling opportunities would drive up sales as well as operational metrics. Shift towards organised segment owing to favourable regulations and consumer preference would aid growth.
A rare combination of decent growth with a hawk eye on asset quality | Mas Financial
Growth is back in Mas after the COVID-19 disruption and the company with its pricing power is maintaining margin despite funding cost headwinds. Asset quality remains pristine and push to housing finance could be a positive surprise
Riding on capacity growth and inorganic expansions, this paper manufacturer aims for sustainability
West Coast Paper is one of the largest players in the domestic pulp and paper market, with strong presence in writing and printing paper and the packaging board segments. The company’s cable business is also growing rapidly. Healthy performances in June quarter was on account of multi-fold growth in volume and sales realisations, and the company saw exponential margin expansions thanks to the landmark acquisitions of Andhra Paper Ltd. The company is well positioned to benefit from the long-term sector tailwinds on account of its well-diversified product mix, backward integration and the improved financial risk profile.
This Leading Engineering Space Stock Has a Strong Earnings Visibility | Stock Of The Day
Engineers India is poised to gain with the improving order book and profitability leading to storing earnings growth. The company has a strong balance sheet with strong cash on the books along with an attractive dividend yield. It has a strong order pipeline, contributions from other businesses are improving and its initiative in green energy are expected to show good results this year.
Repco Home Finance’s valuation is undemanding even after the sharp rally | Stock Of The Day
Repco Home Finance is an established housing finance company in South India, with over 23 years of operations, especially in Tier 2 and 3 cities. Focus on niche, small-ticket, non-salaried home loans, generates higher spreads, but has moderate credit quality of assets. The latest quarter witnessed improved earnings and asset quality. Margins improved, aiding return on assets. The company’s outlook for loan book growth is encouraging for the coming fiscal. The stock has sharply rebounded but is still available at reasonable valuations.
AXIS Bank | Valuation Discount To Other Private Peers To Narrow | Stock Of The Day
Axis Bank has been reporting strong business growth, improving deposit profile, stable asset quality but a tad higher opex on account of Citi integration. With adequate capital, we see a strong growth journey ahead with improving return ratios that should help close the valuation discount to larger peers.
KEC International | Strong Earnings Outlook And Improving Balance Sheet | Stock Of The Day
KEC International, the leading power transmission and distribution company, has a strong order book, a healthy balance sheet, and a clear focus on execution. KEC International could be a stock to look at in light of improving margins, a strong pipeline of new projects, and contributions from subsidiaries supporting its earnings.
