What is driving the performance of Sona BLW? Stock Of The Day
Sona BLW continues to get new orders and has an order book which is 8x its FY23 revenue, giving earnings visibility. The waning of chip shortage are easing and commodity prices should improve revenue growth and margins expansion, going forward.
Competition from global brands could choke Royal Enfield’s growth
The aggressive rejig of portfolios and pricing strategies by global motorcycle brands Harley and Triumph in Indian markets is set to dent RE’s market share
HIL - This market leader is on a comeback trail | Stock Of The Day
HIL is a leading player in the building material industry in India. The company enjoys a dominant presence in the domestic fibre cement industry, with a market share of around 25 percent. Moreover, the management is gradually diversifying its business into newer high-growth segments.
Chart of the Day: PGCIL’s tender pipeline underscores capex revival in power transmission
After going downhill for the last four years, PGCIL’s capex is set to rev up with focus on renewables
Dalmia Bharat Expected To Outpace Cement Industry Growth, By Organic & Inorganic Expansion
Dalmia Bharat is one of the largest cement manufacturers in the country, having a cement capacity of 41 MT at present. The company is a key beneficiary of government’s thrust on infrastructure and is focused on becoming a pan-India player in coming years. The profitability of the business is also anticipated to improve as energy expenses have normalised.
What Maruti’s buyout of Suzuki’s Gujarat plant means for shareholders
Maruti’s acquisition of the Gujarat unit will usher in synergistic benefits although the payout and the terms of the deal are key to determining earnings gains
CIE Automotive | One of the companies growing across domestic and international markets
CIE is one of the leading auto component manufacturers in India. With the increasing production by OEMs post easing of chip shortage, the increase in demand for cars, and the wider adoption of electric vehicles, the company is poised to grow significantly. Further, its valuation is currently at a reasonable level.
Motherson Sumi Wiring India: One of the leaders in the space | Stock Of The Day
MSWIL is one of the leading wiring harness manufacturers in India and serves all key automakers. With the increasing production by OEMs post easing of chip shortage, the increase in demand for cars, and the wider adoption of electric vehicles, the company is poised to grow significantly. Moreover, the stock’s valuation is currently at a reasonable level.
Aptus Value Offers High Earnings Growth Potential, Good Bet In Housing Finance | Stock of The Day
Aptus Value is an established housing finance company in south India, targeting first-time home buyers in the tier 3/4/5 cities. The company’s market leading position in the low-ticket informal housing finance segment provides good pricing power and higher yield, which helps to protect margins. However, the loan book is riskier, and the asset quality needs continuous monitoring. The stock has a limited trading history, but could be a promising buy for investors with a very-high risk appetite, who favour superior return ratios.
Cochin Shipyard: A good defensive play with strong fundamentals, attractive valuations
Cochin Shipyard is expected to see improvement in margins and revenue growth in fiscal 2024. It is sitting on a strong order book of close to Rs 21,400 crore, executable over the next three years. CSL is a good investment for those looking for exposure to the defence sector and shipbuilding industry
Sumitomo Chemicals India | This agrochemical player should reap long-term gains | Stock Of The Day
SCIL is a company with a healthy balance sheet and R&D-focused parentage. A huge portfolio of specialty products and the strong innovation record of parent SCCL (Sumitomo Chemical Company Ltd) gives SCIL an edge, providing a huge potential for growth. Near-term risks appear to be fully priced in and the opportunity to supply technicals to its parent company showcases long-term export potential.
360 One Wealth | India's leading wealth manager with resilient business model | Stock Of The Day
360 One WAM is the leading wealth manager in the country with assets over 270,000 crore as at end FY23. Its business is on a sustained growth path driven by rising millionaires seeking wealth advice. The management’s strategy of focusing on increasing the share of annual recurring revenue (ARR), as opposed to transaction/brokerage revenue, is encouraging, and has helped reduce the volatility in revenue. Bain Capital completed the transaction to buy 24.98% equity stake in 360 One in FY23 at Rs 416 per share. Currently, the stock is available at 14% premium over Bain’s acquisition price. Wealth management opportunity in the country is huge and the stock of 360 One WAM, which is attractively valued, is a good bet.
Transport Corporation of India | Is the Multimodal Logistics player a good bet? | Stock Of The Day
Transport Corporation of India is a key beneficiary of formalisation in the logistics and transportation sector. Government push for local manufacturing is likely to boost demand for logistics and transportation in the domestic market. Transport Corporation of India is one of the largest integrated multimodal logistics players in the country, which provides Freight, Supply chain, warehousing solutions and shipping services. The company has a long-established market presence with over 6 decades of experience and currently manages over 14 million square feet of warehouse space.
Stock Of The Day: Jindal Steel & Power | This Ferrous Player Is Better Placed Than Peers
JSPL is integrated iron and steel manufacturing company promoted by Naveen Jindal and family. JSPL manufacturing capacity is about 9.6 MTPA which is set to increase to 16 MTPA by FY25. Reduction of debts, capacity expansion largely through internal accruals and various cost-saving projects will make JSPL, one of the leading players in the ferrous space.
Federal Bank: Healthy Business Growth, Reasonable Valuation | Stock Of The Day June 27
This professionally-run old private bank has been a consistent performer in the past few years. In the last reported quarter, a decline in interest margin and a tad higher slippage turned out to be disappointing. However, a large part of the deposits book has been repriced, bank is guiding to healthy asset quality, witnessing strong business growth, and is looking to expand RoA. Seen in this context, the valuation appears reasonable.
Stock Of The Day: Bharat Electronics | Lower Valuations and Improving Prospects
Bharat Electronics is trading near its all-time high of Rs 127 a share. Improving fundamentals, strong orders in hand, control over margins and high dividend yield are keeping the stock in demand. This is likely to sustain as these trends are yet to reflect fully in its share prices. Besides, order inflow pipeline is improving as some of the large programmes are now getting finalised. This improves the visibility and should keep the stock in limelight.
Nifty Midcap consistently outperforming Nifty; 5 Midcap shares with huge return potential
The Nifty Midcap Index has been reaching new highs, leaving investors wondering if there is still more value to be found in this segment, which has outperformed its larger counterpart, the Nifty 50 index. In fact, the Nifty Midcap 100 Index recently reached a record high and surpassed the 35,000 mark. In FY23, the index rose by 17 percent. This approx. 20 percent rise in mid-cap and small-cap indices over the past three months raises the question: Is a bull market underway?
TVS Motor: manoeuvring a winning playbook
TVS Motor has been revving up sales and market share over last few quarters, will margins follow?
Stock Of The Day - IDBI Bank | Bank’s large deposit franchise and widely spread branch network
IDBI Bank has shown continued improvement in profitability, asset quality parameters, and capitalization levels post coming out of the Prompt Corrective Action (PCA) restrictions of the Reserve Bank of India (RBI) in March 2021. The bank was nursed back to health with the help of a significant amount of equity infusion by the LIC, the Government of India (GoI), and started posting profits from FY21 onwards. LIC and GoI together hold 94.72% shareholding in the bank, both GoI and LIC have stated their intent to divest their shareholding amounting to 60.72% in the bank through a strategic stake sale with an intent to hand over the management control in the bank.
Stock Of The Day: Paradeep Phosphates | Keeping up a high topline and robust EBITDA
Paradeep Phosphates’ focus on the complex fertiliser (non-urea) segment is a key positive as the government is promoting non-urea complex fertilisers to avoid excessive use of urea and achieve balanced nutrition for soil. The company has all the right ingredients in place to remain cost competitive and can emerge as a significant private player in the fast-growing complex fertiliser space.
Operating Leverage In Chemicals Segment To Be Margin Driver | Ami Organics | Stock Of The Day
Stock of the Day: Ami Organics, an emerging pharma intermediates company, benefits from ongoing China+ and Europe+ trends. It gets about 60 percent of its revenue from exports and operates plants at Surat, Ankleshwar and Jhagadia.
About 86 percent of its revenue comes from the pharma space where it manufactures intermediates for active pharmaceutical ingredients (APIs) and new chemical entities (NCE). The rest of the revenue comes from the chemicals segment where it produces preservatives (parabens) and Salicylic acid.
Stock Of The Day: Heritage Foods | With focus on value added segments & higher market penetration
Heritage foods is a leading dairy company engaged in value added and branded dairy products. Presently Heritage's milk and milk products have market presence in Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Uttar Pradesh and Uttarakhand. Has deeply entrenched distribution network with products sold across 11 States in India and including 147 Heritage Distribution Centres, 130,000+ Retail Outlets, 27 organized retail chains across India and 859 Heritage Parlours. It also has a strong presence across 16 E-Commerce websites.
Stock of the day: Indian Hotels Company IHCL | Well placed to ride the hospitality industry upcycle
IHCL with reputed brand and comprehensive portfolio across segments would be a prime beneficiary of the uptrend in the hotel industry that is expected to last over the next few years. IHCL has a line up of aggressive inventory addition plans, enabling it to maintain its strong position in the hospitality industry. Scaling up of the new businesses provide an additional growth trigger. Premium valuations are likely to sustain given the industry uptrend.
One of the leaders in the auto ancillary space, multiple tailwinds in favour | Stock of the day
ZF Commercial Vehicle is one of the leading air-braking manufacturers in the auto ancillary space in India and has partnered with the who’s who of the industry to supply its products. Strong demand in CV segment coupled with correction in raw material prices make it one of the strong investment candidates. Further, its valuation is currently at a discount to its long-term average. Here is the 'stock of the day'.
