Friday, 23 June 2017

3 hot stock picks from Geojit Financial Services

JK Lakshmi Cement, Bharat Electronics, and ITC are on the radar of Geojit Financial Services

Geojit Financial Services recommends the following stocks:

JK Lakshmi Cement Ltd              Rating: Buy                CMP: Rs491

STOCK MARKET TIPSJK Lakshmi Cement (JKLC) is a part of JK group mainly focused in north, west and eastern regions of India with a consolidated capacity of 12.5 MT as on FY17 and is one of the most cost-efficient players. TODAY FREE TRAILS TIPS

The company has completed its major capex of Rs 3,000 crore as on FY17 and the balance sheet is likely to improve going forward due to improvement in cash flow. We expect D/E to improve to 1.3x from current 1.6x. Cost efficiency is likely to improve due to commissioning of 100 percent captive power and Conveyor Belt at its East plant. We expect EBITDA margin is likely to improve from the current 12.6 percent to 15.2 percent by FY19 and PAT is expected to grow at 56 percent CAGR over FY17-19.

Bharat Electronics Ltd                      Rating: Buy                CMP: Rs 166

Bharat Electronics Ltd (BEL) is a Navaratna enterprise having 37 percent market share in Indian Defence Electronics. BEL’s core capabilities are in radar & weapons systems, defence communication & electronic warfare.

BEL will emerge as key beneficiary from on-going defence modernisation programmes & GoI focus on indigenisation. Order inflow in Q4FY17 grew by 172 percent YoY to Rs 10,000 crore. The current order backlog of Rs 40,000 crore is 5.3x FY17 sales, which has significantly improved the earnings outlook. We factor order book to grow at 15 percent CAGR, consequently earnings is expected to grow by 14 percent CAGR over FY17-FY19E. We value BEL at P/E of 22x on FY19E on improved order inflow outlook.

ITC Ltd           Rating: Buy               CMP: Rs311

ITC is a diversified conglomerate, present across categories– cigarettes, other FMCG, hotels, paper & agri-business. ITC is a market leader in the cigarettes category with volume market share  of ~75 percent.

Given its leadership position in cigarette category, continuous investment behind brand building & innovations in other FMCG business, we maintain positive stance on the stock. Cigarettes business (which contributes ~50 percent to revenues) registered a growth of 4.8 percent YoY in Q4FY17 led by realisation growth on account of price hikes undertaken by ITC post excise hike. Notably, the neutral GST rate for this category augurs well for volume growth & hence, we expect this segment to grow at revenue CAGR of ~8.7 percent over FY17-19E.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol are their own and not that of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.
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Thursday, 22 June 2017

Nifty Futures to open gap at 9668, gain of 13 points: Dynamic Levels

Nifty Futures to open gap up by 13 points at 9668 against yesterday's close of 9655 as per SGX Nifty, says Dynamic Levels.

Market at highs, invest in right stocks with good fundamentals

Indian Market Outlook:

The benchmark index Nifty on June 21 opened at 9648 and made a low of 9609 after making a high of 9650. Nifty closed at 9634 levels down by 20 points from its previous day close.

Market was at a loss for trend for the second day on Wednesday as the Nifty moved in a tight range and ended with a negative bias. Oil explorers fell after global oil prices hit seven-month lows, however Airline stocks rose on expectations of lower jet fuel prices.

Bank Nifty made a high of 23761 levels. The index opened at 23638 and closed at 23709. The Smallcap index remained flat throughout the day.The index opened at 7438 and closed at 7449 after making a high of 7476.

Nifty Futures to open gap up by 13 points at 9668 against yesterday's close of 9655 as per SGX Nifty.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
www.bigprofitbuzz.com

Wednesday, 21 June 2017

Stocks in the news: Axis, L&T, Amtek Auto, Eicher Motors, Monnet Ispat, SpiceJet

Axis Bank | Larsen and Toubro | ABB | Amtek Auto | Eicher Motors | Monnet Ispat | Kirloskar Oil | Apollo Hospitals | Canara Bank | Captain Polyplast | Reliance Communications | GMR Infrastructure | Raymond | Reliance Defence | Inox Wind | SpiceJet and Suzlon Energy are stocks, which are in the news today.

Here are stocks that are in news today:

Monnet Ispat: Sources
-Joint Lenders Forum gives nod to sending Monnet Ispat case to National Company Law Tribunal
-Lenders group gives assent to file application under Insolvency & Bankruptcy Code for Monnet Ispat

Kirloskar Oil
-Company okays proposal for acquisition of 100 percent equity shares of La-Gajjar Machineries
-This is subject to signing of definitive agreements

L&T
-Gets Rs 287 crore EPC contract from NHPC
-Gets EPC contract for development of 50MW solar power project in Tamil Nadu

Apollo Hospitals says
-Expecting growth momentum to continue for Apollo Hospitals
-Effects of demonetisation has started to wear off
-Business has bounced back to normal from May onwards

Other stocks and sectors that are in news today:
-Tech Mahindra arm LCC Middle East to sell LCC Pak to Swiss company Talkpool for USD 5.2 million
-Moody’s assigns ‘Baa3’ rating to NHPC, outlook positive
-Sun Pharma's subsidiary Taro gets US FDA nod for anti-convulsion drug, Felbamate
-Dr Reddy's Labs gets US FDA's REMS (risk evaluation & mitigation strategy) nod for acne prevention drug, Zenatane capsule
-Sun Pharma in focus as Ranbaxy gets US FDA's REMS nod for acne prevention drug, Absorica tablet
-Aurobindo Pharma gets tentative US FDA nod for diabetes drug, Linagliptin tablet
-Canara Bank to offload stake 8.9 percent stake in CARE, worth Rs 419 crore
-JK Paper in focus - Ind-Ra upgrades long term issuer rating to A- from BBB+
-Captain Polyplast to start new manufacturing plant at Kurnool district, Andhra Pradesh
-Magma Fincorp approves scheme of merger with Magma Advisory
-Piramal Enterprises board to issue non-convertible debentures (NCDs) worth Rs 600 crore with an option to retain over-subscription of Rs 500 crore
-Somany Ceramics issues commercial paper of Rs 40 crore
-ABB in talks to buy out L&T's electrical business: Sources
-Amtek Auto, Castex Technologies, Metalyst Forgings in focus - 21 investors in fray for Amtek Auto sale: BS
-SpiceJet places USD 1.7 billion order for 50 Bombardier Q400 planes: ET
-Reliance Communications to speed up realty monetisation: ET
-GMR Infrastructure to bid for airport in Serbia, Jamaica
-Raymond targets Europe, US for stitched garments
-Eicher Motors in focus - Royal Enfield ties up with 4 custom bike companies: ToI
-Reliance Defence files ammunition pact woth Serbia
-Ashok Leyland in focus - Hinduja Leyland defers IPO plan: Mint
-Inox Wind, Suzlon Energy in focus - Andhra Pradesh signs power purchase agreements, now wants 25 percent price cut
-Bajaj Corp to raise Rs 1,000 crore
-Axis Bank plans to sell its stake in Mswipe: ToI-Aditya Birla Nuvo merger with Grasim to be effective from July 1
www.bigprofitbuzz.com

Tuesday, 20 June 2017

Buy, Sell, Hold: 11 stocks and 3 sectors are on analysts’ radar today

Marico, Bata India, Idea Cellular and ITC, among others, are being tracked by analysts today.

Marico

Brokerage: Bank of America Merrill Lynch | Rating: Buy | Target: Rs 360

The global research firm observed that the company’s core portfolio of coconut and edible oil has stable growth with volume CAGR of 6/8 percent. The coconut oil segment, it added, may post a robust show in the medium term. Furthermore, a scale-up in value-added hair oil may remain healthy, led by market development. Going forward, the BofA-ML expects innovation pipeline to focus on growing future categories. It sees seasonality and reliance on select raw materials as the key risks.

Bata India FREE STOCK  TIPS

Brokerage: Nomura | Rating: Reduce | Target: Rs 458

The brokerage house continues to foresee long term challenges for the company. It highlighted that it also saw loss of market share in the organized space for the company. At current valuations, it said, the recovery could be priced in and sees limited further
upside. ITC remains its top pick in the sector.

Voltas

Brokerage: CIMB | Rating: Hold | Target: Rs 505

The brokerage house highlighted that the managemnet’s focus remained on profitability for the electro-mechanical projects (EMP) segment. Further, it expects consumer durable joint venture to target 10 percent market share in 10 years.

ACC

Brokerage: Jefferies | Rating: Underperform | Target: Rs 1,359

Jefferies expects profitability for the company to remain subdued in the near term on the back of weak demand. For the first quarter of this calendar year, it sees volume growth to be better than expected, but earnings before interest, taxes, depreciation and amortisation per tonne remained below peers. Having said that, the volume growth is likely to slow down post robust CY17 due to no major capex activity. It sees synergy benefits being some time away.

Idea Cellular

Brokerage: CLSA | Rating: Sell | Target: Rs 73

The brokerage firm said that Idea’s annual report reinforced the stress in business and the impact of high spectrum debt burden. It said that the company’s net debt increased by 26 percent year on year to Rs 51,000 crore. Further, it also has high contingent liabilities at 66 percent of net worth. CLSA lowerd FY18/19 revenue and EBITDA forecasts by 1-7 percent.

ITC

Brokerage: CLSA | Rating: Buy

CLSA said that the next few weeks remain crucial for the stock. It said that there was no further clarity on tobacco taxes. These taxes under GST could decline in double digits, it feels, based on the assumption that there are no further levies. It sees a worst-case outcome of 8 percent tax hike.

Lupin

Brokerage: Credit Suisse | Rating: Underperform | Target: Rs 1,020

The research firm said that a price erosion risk for the company remains high. It could face double digit annual price erosion over the next three years, the report added. Further, it highlighted that 75 percent of US profits comes from low competition products. Express Script Joining Walgreens Consortium may impact earnings in Q4FY18 or Q1FY19, the report added. It also cut earnings per share (EPS) estimates for FY18/19 by 6/8 percent as it is building lower approvals due to 483s at Goa and Indore.

Ipca Labs

Brokerage: Citi | Rating: Sell | Target: Rs 355

The global financial services firm cut FY18 EPS estimates by 5.7 percent.

Mahindra & Mahindra

Brokerage: CIMB | Rating: Add | Target: Rs 1,646

The brokerage house raised FY18-19 sales volume estimates by 4-6% after a tough financial year 2017. Further, it believes that the farm division’s globalization drive will be value accretive, it added.

MCX

Brokerage: Axis Capital | Rating: Buy | Target: Rs 1,326

Axis Capital said that guidelines by the Securities and Exchange Board of India (SEBI) could pave the way for options trading and that the company may opt for gold. It expects more product launches on other commodities as and when regulator permits. It also expects the company to apply for product approval and launch it by August or September.

GAIL

Brokerage: JPMorgan | Rating: Underweight | Target: Rs 330

JPMorgan said that a sharp decline in PE and LPG prices created material risk for Q2 and Q3. It sees downside risks to consensus earnings estimates. Meanwhile, US contracts remain an overhang, it added.

Telecom

Brokerage: Goldman Sachs

Goldman Sachs said that Indus may be a good strategic fit, given the strong balance sheet of Bharti Infratel. In case of a stake hike, Infratel’s FY17 net debt to EBITDA would be 3.9 times/5 times. Further, it added that leverage is not a concern with an option to sell tower stake for Bharti Airtel.

Financials

Brokerage: CLSA

CLSA observed that business environment for financials had improved from the low post demonetisation. Banks expect the trend to improve further as well. Among key risks, ti sees competition from bonds and cut in lending rates as being the key.

Among non-bank lenders, housing and retail NBFCs were seeing better growth, it observed. It also expects HFCs to benefit from the government’s push for affordable housing. Microfinance institutions (MFIs), it said, were facing headwinds on collections even though there is some improvement. Meanwhile, impact of loan waiver is still unclear, it added.

Pharma

Brokerage: Credit Suisse

The brokerage house said that the US margins for pharma companies were still very high to attract new competition, while price erosion will stay high. Analysis of EBITDA margin of Indian firms shows US margins still rich at 40-55 percent, it added. A new entrant can still make a RoCE of 25 percent on an average portfolio.

The price erosion risk, it added, is the highest for Taro, Dr Reddy’s and Lupin, while it is the least for Aurobindo. It is cautious on Lupin and Dr Reddy’s Laboratories and is positive on Cipla.

Monday, 19 June 2017

Indian pharma companies should increase base of sales in next few years: Nirmal Bang

Formulations plant of Dr Reddy's Laboratories at Srikakulam gets inspected and gets 1 observation from United States Foods and Drug Authority (US-FDA). The plant was inspected with zero observations last time.

Formulations plant of Dr Reddy's Laboratories at Srikakulam gets inspected and gets 1 observation from United States Foods and Drug Authority (US-FDA). The plant was inspected with zero observations last time.

In an interview to CNBC-TV18, Vishal Manchanda, Pharma Analyst at Nirmal Bang spoke about the same.

He expects the company to resolve this observation in some time like they have been able to resolve the observations at Miryalaguda in the short time.

Entire sector is in a stage of transition and they need to scale up from here, he said.

“2018-2019 is when we will see the efforts from research and development (R&D) fructifying and delivering complex dosage forms in terms of approvals. Once these things are in place, all companies are set for a new growth trajectory. From a billion dollar to a USD 2 billion base would be the next rally for Indian pharma companies and that should be accomplished in the next four-five years,” said Manchanda.

Speaking about Aurobindo Pharma, he said, the company has surprised by delivering complex approvals. He expects to see such surprises from other companies.

A large part of the approvals expected are in to the price for Cadila Healthcare, he added.

He also expects Natco Pharma to stabilise once Copaxone approval comes through. He sees upside in the stock from current levels.

Dr Reddy’s Laboratories is Manchanda’s top pick in the pharma sector followed by Cipla and Aurobindo Pharma.

Thursday, 15 June 2017

See gap down opening: Maximus Securities

According to Maximus Securities, trading of SGX Nifty futures on the Singapore stock exchange indicates that the Nifty could lose 27 points at the opening bell.

nse trading tipsNifty PCR-OI has increased to 1.18 from 1.11. The rise in the ratio may be due to increase in PE of 9600 and decrease in CE of 9700.

PE of 9600 and CE of 9700 are the highest number of contracts traded.

Trading of SGX Nifty futures on the Singapore stock exchange indicates that the Nifty could lose 27 points at the opening bell.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Wednesday, 14 June 2017

Investors' complaints received by fund houses rose 40% last fiscal year to 17,569

Mutual funds attributed the number of complaints to increase in folio base or investor accounts

INTRADAY FREE TIPSThe top fund houses received about 17,569 complaints from investors in FY17, an increase of 40 percent from the previous financial year largely on the back of increase in folio numbers.

According to the Association of Mutual Funds of India or AMFI, top 5 mutual funds--ICICI Prudential MF, HDFC MF, Reliance MF, Birla Sunlife MF and SBI MF collectively received 17,569 investor grievances last fiscal as against 12,579 complaints in FY16.

These complaints largely pertain to data corrections in investor details and non-updation of changes about address, PAN (Permanent Account Number) details and nomination, among others.

Mutual funds attributed the number of complaints to increase in the folio base or investor accounts.

Besides, illegible data provided by investors as well as errors made by investors while filling up application forms helped in raising the number of grievances, they added.

The folios -- numbers designated to individual investor accounts, though one investor can have multiple folios -- grew to 2.72 crore from 2.23 crore during the same period.

Among the top fund houses, SBI MF saw the biggest rise in investor grievances last fiscal, with complaints growing four-fold to 6,924. It was followed by Birla Sunlife MF, which saw complaints rising by 51 percent to 1,831 and ICICI Prudential MF witnessed an uptick of two percent to 4,648.

However, HDFC MF witnessed 24 percent decline in the number of complaints at 2,857, while Reliance MF saw a drop of 10 percent to 1,309.