Author: SonalMohan Jadhav

Analysts see upside in BoB, Firstsource, Sun TV and RVNL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Technical analysts Mitessh Thakkar of earningwaves.com, along with Sneha Seth, Derivatives Research Analyst, Angel One share their top stock picks for the day.

From Mitessh Thakkar

Mitessh Thakkar’s first buy call of the day is on Bank of Baroda (BoB). He recommends this with a stop loss of ₹262 for an upside target of ₹284. Shares have gained more than 3% in the last month.

He recommends a buy call on Firstsource Solutions with a stop loss of ₹207 for an upside target ₹233. The stock is up more than 10% over the last month.

Sun TV is another buy call from Mitessh Thakkar. His recommendation comes with a target of ₹655 and a stop loss of ₹622. The stock has gained more than 8% in the last month.

Among the sell recommendations, Thakkar has one on Indian Hotels with a stop loss of ₹590 for a downside target of ₹540. Shares have gained more than 2% over the last month.

From Sneha Seth

Sneha Seth has a buy call on RVNL with a stop loss of ₹279 and a price target of ₹304 on the upside. The stock was up more than 10% in the past month.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Macrotech Developers eyes 5-6% hike in property prices in FY25

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Abhishek Lodha, MD and CEO of realty firm Macrotech Developers expects property prices to increase by around 5-6% in the current financial year (FY25).

The total volume growth in FY25 is expected to be 14%.

Lodha believes volume growth from existing locations will be around 4-5% and the balance 10% will come from new locations.

In the March quarter, the company’s consolidated net profit dropped by 11% to ₹666 crore. However, for the entire year (FY24(, the company saw a significant increase, with its profit soaring threefold to ₹1,549 crore.

The company closed FY24 in line with its projection of a 20% growth, at pre-sales of ₹14,500 crore.

“For fiscal 2025, our guidance is approximately 20% growth in pre-sales bringing us to about ₹17,500 crore of pre-sales and an embedded EBITDA margin of about 31%,” he said.

Lodha said the company wants to continue to have more presence in the three cities it currently operates in–Mumbai, Pune and Bengaluru.

The two launches in Bengaluru last year were very successful, he said.

Also Read | Macrotech to acquire 50% stake in Siddhivinayak Realties for ₹250 crore

The company did about ₹1,200 crore of pre-sales from Bengaluru from these two launches. Its pricing was much higher than its peers in the market.

The company secured ₹3,300 crore in equity funding and also reduced the cost of debt by 10 basis points (bps) quarter-over-quarter to 9.4%.

He also believes that the Palava and Upper Thane projects, two large developments on the outskirts of Mumbai, are set to deliver $175-200 billion in sales over the next three decades with a 50% earnings before interest, tax, depreciation, and amortisation (EBITDA) margin.

The current market capitalisation of the company is ₹1,19,469 crore.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

What to expect from the likes of ABB, Siemens and BHEL

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The capital goods industry is expected to report average revenue growth of 16% and profit growth of around 17% for the January to March 2024 quarter. supported by record high order books and strong execution.

Cost-saving measures and operational efficiencies may lead to a 14% improvement in the earnings before interest, tax, depreciation, and amortisation (EBITDA). However, the margin outlook remains mixed.

While the order flow has been robust in the recent quarters, a slight moderation is expected now mainly an account of the elections.

Nonetheless, steady order inflows are projected in segments like renewable energy, power, transmission and distribution as well as defence.

Private investment has been selective so far and is also seeing some green shoots. So overall, the order momentum is expected to pick up meaningfully only after July to September quarter of the current financial (FY25).

Export orders, however, are a concern given the sluggishness in most geographies, geopolitical tensions as well as trade disruption.

Margin projections vary. GE T&D, Kirloskar Oil and ABB India are expected to witness expansion anywhere between 1% and 6% in their margins. Bharat Heavy Electricals Limited (BHEL), Siemens and to some extent, Thermax, however, may see some pressure.

Except for BHEL and CG Power, net profits are expected to climb for most of the companies.

In terms of stock performance, capital goods companies have seen a very strong surge with returns exceeding nearly 75% across the board for all companies.

In fact, on a year-to-date basis as well, the stocks have gained anywhere between 18% and 114% for some counters.

However, this strong surge has, in turn, pushed current valuations above the historical averages and the question remains; can these premium valuations be sustained? Will private capex drive the next leg of growth for these capital goods companies?

Renu Baid Pugalia, Senior VP of Research at IIFL Institutional Equities is bullish on companies like Bharat Electronics (BEL), ABB India, Cummins, and small-cap companies like Data Patterns from an earnings perspective.

“Even if we see companies like KEC, Kalpataru, from the lower base, should bounce back strongly on the earnings side. But names like CG Power, Siemens and Thermax will see barely single-digit growth in earnings because of a very high base last year. So to that extent, we expect some moderation on the earnings side for some of the diversified industrials,” she said.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ambuja Cements, Hindalco, ACC, Torrent Pharma, Dr Lal Pathlabs, HAL, CONCOR are today’s top picks

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Technical analysts Mitessh Thakkar of earningwaves.com and Sudarshan Sukhani, along with Chandan Taparia, Derivative and Technical Analyst at Motilal Oswal Financial Services share their top stock picks for the day.

From Mitessh Thakkar

Mitessh Thakkar’s first buy call of the day is on Ambuja Cements. He recommends this with a stop loss of ₹634 for an upside target of ₹670. Shares have gained more than 8% in the last month.

He recommends a buy call on Hindalco with a stop loss of ₹620 for an upside target ₹670. The stock is up more than 12% over the last month.

Among the sell recommendations, Thakkar has one on Adani Enterprises with a stop loss of ₹3,085 for a downside target of ₹2,950. Shares have declined more than 2% over the last month.

Bosch is another sell call from Mitessh Thakkar. His recommendation comes with a target of ₹29,150 and a stop loss of ₹28,200. The stock has declined more than 5% in the last month.

From Sudarshan Sukhani

Sukhani finds a buying opportunity in ACC. He advises traders to keep a stop loss of ₹2,370. Shares have gained more than 4% over the last month.

Sukhani’s only intraday short is on Bajaj Auto. For this, he advises a stop loss of ₹9,200. Shares are down more than 3% over the last month.

Torrent Pharmaceuticals is another buy call from Sudarshan Sukhani. Stop loss is to be placed at ₹2,540. The stock has gained more than 4% in the last month.

Lastly, Sukhani recommends a buy on Dr Lal Pathlabs. He advises a stop loss of ₹2,160. Shares are up more than 2% over the last month.

From Chandan Taparia

Chandan Taparia has a buy call on Hindalco with a stop loss of ₹622 and a price target of ₹658 on the upside.

He also has a buy recommendation on HAL with a stop loss of ₹3,860 for an upside target of ₹4,120. Shares are up more than 20% over the last month.

Additionally, he also recommends buying CONCOR with a stop loss of ₹950 and a target of ₹1,010-1,020. The stock was up more than 12% in the past month.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Volumes up 15% in FY24, will grow by 15% in FY25, says Epigral

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Epigral, an integrated chemical manufacturer, experienced a remarkable 15% increase in volumes in FY24 and anticipates sustaining this growth momentum, with a further 15% rise projected for FY25.

In an exclusive interview with CNBC-TV18, Maulik Patel, the Chairman and Managing Director of Epigral, disclosed that domestic volumes have witnessed a significant rebound, propelling the company’s growth. However, he acknowledged the ongoing struggles in the export market, signaling the necessity for strategic maneuvers to navigate the challenges ahead.

While Patel doesn’t anticipate substantial changes in realisations, he emphasised that the key driver for growth will be volume expansion.

Highlighting the company’s growth strategy, Patel underscored the importance of capacity addition in driving volume growth. This investment is poised to fuel Epigral’s expansion plans and consolidate its market position.

Also Read | Chemical manufacturer Epigral aims to maintain margin at 25-28% in FY25

Discussing financial projections, Patel indicated a stable EBITDA margin of 25% for FY25. He also outlined a shift in the business composition, with domestic contributions expected to decrease from 94% in FY24 to 90% in FY25.

While the FY27 revenue estimates have been revised downwards to approximately ₹4,500 crore from the earlier projection of ₹5,000 crore, Patel assured that debt ratios would remain healthy. He stated that absolute debt levels would be maintained, despite the expansion initiatives.

Comparing the fourth quarter of FY24 with both the previous year and the preceding quarter, Epigral showcased resilience amidst fluctuations.

Despite a 7% decrease in revenue year-on-year, EBITDA margin improved to 30%. Sequentially, while revenue declined by 11.3%, EBITDA surged by 26.6%, with a notable increase in PAT by 57.5%.

Epigral’s current market capitalisation stands at ₹5,633.99 crore.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Experts discuss latest developments in telecom and what lies ahead

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The recent developments at Vodafone Idea, marked by a successful ₹18,000 crore follow-on public offer (FPO) and the Aditya Birla Group’s strategic ₹2,075 crore equity infusion, have ignited a wave of optimism in the telecom sector.

In a discussion with CNBC-TV18, Sanjay Kapoor, former CEO of Airtel, and telecom expert Prashant Single, and Purushothaman KG, Partner and Head of Digital Solutions and Telecommunications Industry Leader at KPMG India shared their views about the future of Vodafone Idea, tariffs, and the overall competitive landscape of the industry.

Kapoor calls the current situation in the space ‘enigmatic’.

“So as far as the market is concerned and the consumer is concerned, it is the right thing to have happened because three private players in a market like us gives a lot of choice to the consumers. And therefore, brings that balance on customer service and experience over a longer period,” he said.

However, he noted that despite the fresh funds, the overhang of ‘too little too late’ will still be affect Vodafone Idea till it delivers and is back into the game.

Also Read | Vodafone Idea FPO opens today: CEO explains how the funds will be used

Vodafone India plans to use 70% of the funds raised to strengthen its network infrastructure and broaden its market reach.

Prashant Singhal, a telecom expert believes there is more than enough space in the telecom market for a third player to play catch up.

“The response on the Vodafone Idea FPO clearly shows that there is a lot of interest and there is a lot of confidence in the company,” Singhal said.

Also Read | Bharti Airtel says not in any discussion with Vodafone Group for Indus Towers stake

Kapoor thinks the Indian telecom market needs higher pricing.

“We are on the lowest end of the spectrum on pricing when you compare it across the globe,” he said.

According to Purushothaman, the sector is doing well because it is the foundation of the digital economy.

“From a sector perspective, you might have seen quarter-on-quarter (QoQ) growth, improvement in the sector not only from a tariff perspective but also steady subscription growth. The tariffs have improved and that has helped to improve the average revenue per user (ARPU) for most of the operators,” he said.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Is packaged food safe? Experts weigh in

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Concerns about the safety of packaged foods have escalated following a report on added sugar in infant food..

The matter has spurred increased consumer awareness and online activism about unhealthy ingredients in products labeled as healthy, including Bournvita and Horlicks.

Even Indian spices are facing scrutiny from regulators in countries like Hong Kong and Singapore.

According to Shashank Mehta, Founder and CEO of Whole Truth Foods, the use of chemicals and preservatives in food is largely driven by cost considerations and the need for wide distribution.

“As India is a very large complex and a very price-conscious market, one needs a shelf life of 15-20 months with a price of ₹10. Achieving that with real food is tough and chemicals become the answer to doing that, to reducing price – you don’t want to put real blueberries, put blueberry flavour in your food,” he said.

Also Read | FSSAI to conduct a broader quality check on spices brands amid MDH, Everest scrutiny: Sources

Ashwin Bhadri, Founder of Equinox Labs says the challenge is some chemicals like Ethylene Oxide (ETO) are used for the sterilisation of spices. “Until there is no ban on it, it is going to continue to be used because it is very cost-effective. The problem with ETO is that it is not treated properly and remnants of it can stay in the product,” he said.

However, he says, the brand cannot be blamed since ETO is done by a third party before getting supplied to a different country. “So in this case, a lot of weightage would fall back on the third party but it also falls on the regulators,” Bhadri added.

Also Read | Contamination and regulation gaps in Indian household products

The penalties for this have to be a little harsher, he notes.

Suhasini Sampath, Founder of YogaBar thinks where things need to be tighter is how a company advertises its product. “Is there a sort of censor board to what companies can tell consumers?” she said.

She believes the regulations need to be tighter on three things, first is what is being advertised, second is what are companies defining as health norms and what people can term as health and third is what are the things that one will keep out of a label.

“If we have a stronger framework around these three things, we will see consumers benefit in the long-term,” she stated.

Dr Niti Krishna Raizada, Senior Director of Medical Oncology at Fortis Group of Hospitals stated, “Historically we have proven that chemicals are linked to cancer, starting from alcohol and tobacco, which we all have been talking for almost five decades that this can cause cancer. Yes, there has been an increase, but we cannot actually quantify the increase because of these chemical exposures. But overall, the number of cancers has increased and we know that cancer is a lifestyle disease- acquiring more westernised lifestyle, having more processed food has increased the rate of cancer.”

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Volume recovery and price hikes could drive strong growth in auto sector

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The auto sector is expected to report strong growth in the January to March 2024 quarter led by volume recovery in both domestic and export markets, especially for two-wheelers.

Analysts are, however, skeptical about a growth recovery in the heavy commercial vehicle (HCV) and will wait for comments from CV players on the future trends.

Auto stocks have outperformed the market this year, with the Nifty Auto Index gaining 71% for the year, and doubling over the past three years.

Segment-wise volume growth expected in January-March 2024

The two-wheeler segment had a healthy volume growth of 25% year-on-year (YoY) in the fourth quarter, while passenger vehicles (PVs) grew 11% YoY.

Medium and heavy commercial vehicle (MHCV) volumes declined 7% YoY while tractor volumes declined 18% YoY during the quarter.

Overall, lower commodity costs are expected to support the earnings before interest, tax, depreciation, and amortisation (EBITDA) margins.

However, the spike in crude oil and rubber prices over the past couple of months may weigh on the profitability of tyre companies.

Also Read | Bajaj Auto expects to grow faster than the industry as it nears entering Europe

Result calendar:

Bajaj Auto has already released its numbers, reporting a solid 35% jump in net profit.

The two-wheeler major posted a recovery in the export markets, which aided performance.

Maruti Suzuki India will declare its results this Friday, April 26.

The car maker is expected to report revenue growth of over 20% aided by volume growth of around 13%, and the recent price hikes.

Also Read | Maruti Suzuki shares cross ₹13,000 for the first time, extend 2024 gains to 26%

Operating leverage, benign commodity prices and lower discounts will aid margins for Maruti.

Ceat, Escorts, Tata Motors and Bosch will be reporting their earnings over the next fortnight.

Valuation table

Bajaj Auto is currently the most expensive auto stock followed by Maruti and Eicher Motors.

“We think that this quarter is going to be a strong quarter both on revenue growth front as well as on market expansion. Barring from the companies which are primarily exposed to CV and tractor segments, we would expect rest of the companies reporting strong double-digit revenue growth and that should translate into sequential margin expansion as well,” said Kumar Rakesh, India Analyst, BNP Paribas in an interview with CNBC-TV18.

Maruti Suzuki is his top pick in the sector, he added.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Cyient DLM CFO says trade with Israel unaffected by regional uncertainties

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Despite significant trade with Israel, Shrinivas Kulkarni, CFO of Cyient DLM, anticipates no adverse effects from the current Iran-Israel tensions on their imports and exports.

“We are quite pleased with the resilience that the country has shown. We have both import and export dependency on Israel and none of that has adversely impacted at all,” he told CNBC-TV18.

Exports accounted for two-thirds of the electronic manufacturing services company’s revenue.

In the current financial year (April to March 2024-25), exports mix is expected to increase further to around 70% of total sales.

Kulkarni expects a 30% compounded annual growth rate (CAGR) in revenues over the next three years.

In terms of revenue mix during the last financial year (April to March 2023-24), defence contributed roughly 49%, industrial was at 16%, aerospace at around 24%, Med tech at around 8%, and railways at 2%.

He believes that the growth in the defence business is a manifestation of what is going on around the world today.

Aerospace and defence contribute up to 70% of the business.

The company reported an 80% year-on-year (YoY) increase in net profit at ₹23 crore in the January to March quarter of FY24.

Also Read | Cyient DLM expects better orders from this financial year; Stock rallies as much as 15%

The company is currently has a return on capital employed (RoCE) of around 11%. “We hope to get to around 15% in the short run and around 25% in a steady state,” he said.

The order book pipeline is in excess of about $1 billion.

The current market capitalisation of the company is ₹5,814.33 crore.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Analysts’ top picks | Deepak Nitrite, Chambal Fertilisers, Biocon, Grasim, Apollo Tyres, Maruti, Escorts

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Technical analysts Mitessh Thakkar of earningwaves.com and Sudarshan Sukhani, along with Rajesh Palviya, VP-Tech & Derivative Research, Axis Securities share their top stock picks for the day.

From Mitessh Thakkar

Mitessh Thakkar’s first buy call of the day is on Deepak Nitrite. He recommends this with a stop loss of ₹2,320 for an upside target of ₹2,490. Shares have gained more than 11% in the last month.

He recommends a buy call on Chambal Fertilisers with a stop loss of ₹372 for an upside target ₹400. The stock is up more than 12% over the last month.

Thakkar also recommends buying Biocon with a stop loss of ₹274 for a target of ₹295. Shares have gained more than 10% over the last month.

Grasim is another buy call from Mitessh Thakkar. His recommendation comes with a target of ₹2,480 and a stop loss of ₹2,325. The stock has gained more than 6% in the last month.

From Sudarshan Sukhani

Sukhani finds a buying opportunity in Apollo Tyres. He advises traders to keep a stop loss of ₹457. Shares have gained more than 3% over the last month.

Sukhani’s also recommends buying ICICI Lombard. For this, he advises a stop loss of ₹1,619. Shares are up more than 2% over the last month.

Maruti Suzuki is another buy call from Sudarshan Sukhani. Stop loss is to be placed at ₹12,300. The stock has gained more than 6% in the last month.

Lastly, Sukhani recommends a buy on Oberoi Realty. He advises a stop loss of ₹1,350. Shares are down more than 1% over the last month.

From Rajesh Palviya

Rajesh Palviya has a buy call on Escorts with a stop loss of ₹3,180 and a price target of ₹3,300 on the upside. The stock was up more than 16% in the past month.

He also has a buy recommendation on Chambal Fertiliser with a stop loss of ₹376 for an upside target of ₹395.

Additionally, he recommends buying Bharti Airtel with a stop loss of ₹1,305 and a target of ₹1,390-1,400. Shares are up more than 11% over the last month.

Disclaimer: The views and investment tips expressed by investment experts on CNBCTV18.com are their own and not that of the website or its management. CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow