Posted on by Yashi Gupta

Top market voices on IPOs, SBI Q1, Bharti Airtel, and more

On Bharti Airtel | Kunj Bansal, CIO, Karvy Capital: The company has given reasonably decent quarterly numbers and the expectation of the stock to do well has been for almost six quarters. Unfortunately, it is quite surprising and difficult to fathom why the stock is not performing in such a bullish market but yes, it is positive for Bharti Airtel.
On SBI | Krishnan ASV of HDFC Securities: (Gross NPAs higher:) No cause to worry because every bank has been reporting 30-40 bsps. Given the environment we are in, April and May were tough months there is no reason to believe SBI was immune to that. (Slippages and write-offs came in lower than estimates:) The write off is close to about Rs 3500 crore, the restructured portfolio is about Rs 5500 crore. Generally, it is well contained, you cannot be completely immune in this environment. So given the circumstances, I think SBI has managed the portfolio far better than we could give them credit for. We have a buy (on the stock).
sbi, sbi results, sbi share price
On SBI | Prakash Diwan, Market expert: (Loan growth at 5.8%:)I think the entire focus of the bank would have been to curtail and contain fresh slippages and the SMA-2 numbers do tell you that. The net interest income growth for most players have been a struggle especially if you are watching your back in terms of quality. Would you stick with SBI among PSUs? There is nothing compelling about other stocks in terms of scale, so SBI stands to be best in the PSU lot, otherwise, we have to go down to very small banks, which have turnaround triggers.
On Titan | Rakshit Ranjan of Marcellus Investment Managers: Titan was added about four-five months back. The reason for adding it has been the rise in conviction in our research team’s framework for assessing the ability of Titan to capitalise on the wedding jewellery market opportunity. The omnichannel offering that they are developing via Caratlane – that is the massive long term addition or longevity addition to Titan’s free cashflows from our perspective.
On Exxaro Tiles IPO | Himanshu Shah, CFO, Exxaro Tiles: We are targeting total of Rs 160 crore. Our main objective from this IPO proceeds is to pay our existing long-term debt of around Rs 50 crore and the remaining is for the working capital requirement for future growth and general corporate purpose. In our existing business model, we are more in the domestic market say around 86 percent in our domestic market and the remaining 14 percent of our topline is export. So, in the future also as we are targeting our revenue growth from the existing current level to 4-5 times for the next four to five years. So, we are targeting 20 percent from exports from the coming turnover and the remaining will be our domestic market as we are stronger in the domestic market.
On Devyani International | Deven Choksey of KRChoksey Securities: Of the lot, Devyani International with a strong franchise and the plans that they have is possibly attracting my attention. Probably it remains all of the favourites. QSR format is a good category of the business that is growing systematically at a higher rate of growth. We are likely to see higher growth continuing into the QSR format. If you look at the kind of appetite for these particular stocks into the portfolio be it Jubilant Foodworks, be it Westlife Development, be it, Burger King, I would think that this company would probably register a good claim as far as entry into some of the funds is concerned. Could remain positive on this company. Though they are making losses, they hold a good chance in the coming period.
On Windlas Biotech | Deven Choksey of KRChoksey Securities: The company looks promising. Having a presence among the top10 pharma players in the country, this company holds a good amount of promise. maybe one will have to take a deep dive into the subject of injectibles and probably understand a little bit more from the management at some point in time as to how it is going to bring up the business for the company but looks extremely promising from the investment perspective.