Tag: Elixir Equities

Here’s what Dipan Mehta of Elixir Equities has to say about telecom, pharma stocks

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

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Market expert Dipan Mehta of Elixir Equities in an interview with CNBC-TV18 shared his views on certain stocks/sectors.

When asked about telecom space, he said from an an investment perspective, they still prefer Bharti Airtel but think Vodafone-Idea could be a trading pick. “Vodafone-Idea still remains within the purview of traders and from an investment perspective one would still like to avoid it. The correction which has taken place in Bharti Airtel makes it a good solid long-term investment buy and investors can make it as a part of their core holdings.

With regards to IndusInd Bank, Mehta said, “It is really perplexing, we have seen the management come in and say that it is business as usual and they are sitting on lot of liquidity and as such there are no challenges for them- yet the stock keeps on sliding the way it has. This particular resolution for telecom is highly beneficial for IndusInd Bank which has a major exposure to Vodafone but still the stock seems to continuously correct. I think it is just a stock which was greatly in favour over the past decade or so and now it is finally getting out of favour and long term core holdings are getting sold off in IndusInd Bank.”

Talking about Aurobindo Pharma he said, “The usual disclosure is that we and our clients are invested in it. With the associated risk factors about USFDA inspection and all those action whether be it warning letter or import alert, all those are still dangling swords, some of it has got already priced in given that it is amongst the cheapest pharmaceutical stock in its peer group.”

According to him, what investors prefer in Aurobindo Pharma is large scale of backward integration, which means that they have a cost advantage and maybe the expectation that you would have in the next few weeks the approval for the Sandoz acquisition of their generic product, which could be a trigger for Aurobindo Pharma.

“On the whole investors are getting quite favourable and positive on the pharmaceutical industry especially those exporting to US. They will find the environment improve significantly post Coronavirus not only in terms of demand, but maybe hopefully also in terms of regulatory actions which the USFDA may take. So there is a hope that they may be a bit more lenient and quicker in terms of approving ANDA,” he added.

“So from that point of view, we are positive on the pharma industry and Aurobindo is certainly a stock we prefer to buy but it is more for investors who have a really longer term outlook,” said Mehta.

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

Market sell-off: Here’s what market experts are advising

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

Listen to the Article (6 Minutes)

The Indian equity markets saw a huge sell-off Monday following global peers on back of increasing cases of coronavirus outbreak and crude prices plunging.

To discuss the way forward, CNBC-TV18 spoke with market experts like Jai Bala of cashthechaos.com, Mihir Vora, director & CIO of Max Life Insurance, Jyotivardhan Jaipuria, founder & MD of Valentis Advisors, Manish Sonthalia, Head- Equity PMS at Motilal Oswal AMC and Dipan Mehta of Elixir Equities.

Vora said, “A lot of the developments over the past weekend and coronavirus scare still continues at the global level. We did see Dow Futures being locked down at minus 5 percent and the European market futures are also down between 8 percent and 9 percent. So that’s adding panic in the market because when such big markets are down by 5-7 percent, it’s going to create sentiment overhang here as well.”

According to Bala, “I have been warning people from September that not to get excited about the tax cut when the market’s long-term structure was turning. The market always abstracts return when the time comes and coronavirus was a convenient excuse.”

In such a scenario, Jaipuria said, “We continue to sit on cash and are looking to see if we can get some value. Therefore, in the selloff we would be buying. We are waiting for our levels to come and we would be entering into some stocks.”

“Remember two things. One, crude fall ultimately is positive for the Indian economy and once the dust settles that will help us. Second, Yes bank did not turn out to be a disaster that it could have turned out. I think somewhere we have stopped the contagion effect on the whole financial system. So, Yes Bank became more like Bear Stearns rather than Lehman. If it had been Lehman then we would all have been very upset with the whole financial system in the country,” added Jaipuria.

Sonthalia said, “My experience in the market tells me that one who takes a brave call and buys into these markets, sooner than later not only recovers the capital but also makes good profit out of it.”

Dipan Mehta is of the view that we have seen many crisis over the last two-three decades and this is one more crisis. “Unfortunately, this is something which is totally new. However, I think this is less harmful than financial market related problems. The desire to spend is still there globally, it is just that there are physical curbs which is affecting economic activity. Keeping that in mind, whenever we have a handle on coronavirus, we may see a speedier recovery than earlier crisis or earlier sell-off,” he said.

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

Dipan Mehta of Elixir Equities says positive on Ashok Leyland, Aegis Logistics, gold financiers

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

Listen to the Article (6 Minutes)

Dipan Mehta, director of Elixir Equities, discusses his analysis on the fundamental side of the market as well as specific stocks and sectors.

Telecom stocks

“The street is taking a very simplistic view that just because Vodafone -Idea will no longer be in operation that there will be a duopoly and they will be able to raise the average yields for these companies but that is a very simplistic view.”

“Vodafone -Idea is just not going to shut shops tomorrow or in three months’ time. Even if it goes into NCLT immediately it will stop paying interest so it becomes cash flow positive and they will keep on running their operations till the NCLT takes it towards logical end which is to find a new buyer for the whole company or break up the company into several circles and then get individual buyers for all of them.”

“Now the existing players, I don’t think Reliance or Bharti Airtel can bid for Vodafone because the competition commission will have an issue with that.”

Commercial Vehicles

“They are at distressed level pricing so if you have a contrarian bent in terms of your investing strategy, then you could look at Ashok Leyland and hope that maybe three years from now when all these issues are over and done with stock prices can double.”

“Essentially it is a good company with good products and has shown good performance over the past few years or so and they have filled in the products gaps and gone overseas as well. But it is many ifs and buts, you have to have very long term 2-3 year’s type of view.”

“The scrappage policy will not start kicking in benefit immediately I think these things take time to go through. It is good for the industry and it will aid the recovery process but I don’t think it is going to be a complete game-changer.”

Gas

“Our preference would be Aegis Logistics, it is a company which has not been as much discussed but the way they have performed the last 3-4 years have been incredible. They are clearly benefiting from the gasification from the entire economy and they have got massive profits coming from their LPG trading. That has got more runway for growth than some of these gas distribution companies. With a disclosure that we and our clients are invested, we prefer a company like Aegis Logistics which has greater growth prospects.”

Gold financiers

“I have been very positive on gold loan companies and for disclosure we own Muthoot Finance and Manappuram Finance. The gold price increasing has significantly benefited these companies because it increases the kind of gap or the amount that they can lend against the gold already pledged with them.”

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.

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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

Here’s why Dipan Mehta of Elixir Equities has a negative view on SBI

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

Listen to the Article (6 Minutes)

Dipan Mehta, director of Elixir Equities, spoke to CNBC-TV18 about the fundamental side of the market as well as specific stocks and sectors.

On State Bank of India (SBI), which has seen a derating and the stock is down about 12 percent, Mehta said, “SBI results were generally in line, but the credit quality deterioration was not taken well by the market. From an investor perspective SBI and others PSU banks have been a bit of disappointment in the sense that we expected much more in terms of lower credit cost and therefore the boost to the bottom line but that did not come through. In PSU banks like SBI and others, there is a great deal of volatility in their earnings and there is no real earnings visibility as well. So that is what is keeping these stocks underperforming for some more time. Our view on SBI would be negative.”

“A lot of private sector banks are available at attractive valuations and you have entire spectrum depending upon the risk appetite. You have a choice as far as private sector banks are concerned. It is better to go with the private sector banks.”

Speaking about HCL Technologies earnings, Mehta said, “Good set of numbers, best in class, but the real disappointment is on the EBITDA margin and what the management is guiding and what has come for Q1 is a good 1.50 percent lower. Needs to be seen whether they can come to that EBITDA margin. This is a trend we have seen across all software companies where the margins have been under pressure. On the whole HCL Tech appears to be a good investment considering its valuations, it is amongst the cheapest amongst the top 3-4 software companies.”

On Tata Steel, he said, “The less spoken the better, the company has just not able to get its act in order and with no solution for their European business they are facing pressure and in the domestic business as well now that prices have come off and volumes also have tapered off so from an investment perspective given the sort of situation which is there globally it is best to avoid commodities. It is a time to buy consumers of a commodity rather than stocks like Tata Steel. Unless we have some resolution for their various acquisitions which they have done in the past which have not worked out for them investors should give Tata Steel a pass at this point of time.”

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