Tag: gainers

How has 2019 been so far for Indian investors?

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

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The halfway mark of the year is a good time to reflect where the stock market stands. An optimist would say: we are up near 9 percent in 2019 and both the pillars of the Nifty Bank and the Nifty IT are up between 12 percent and 13 percent. But, that is where the good news ends.

There has been immense pain in some frontline stocks. While the midcap and smallcap indices have underperformed, the broader market stocks have been in disarray.

A comparison between India and the global markets shows a massive underperformance. The Nifty earnings, however, are expected to show up in the second half, post a favourable election verdict.

Flight-to-Safety 

A flight-to-quality or flight-to-safety is a stock market term that is used to describe a situation when investors sell what they think to be higher-risk investments and buy what they think are safer investments.

Stocks that traded at premium valuation got a little more expensive as the flight-to-safety took centre stage. Top gainers on the Nifty reflect that as Titan trades at 53x FY20 EPS and Bajaj Finance trades at more than 6.5x its FY21 book value.

The rally has been skewed

The Nifty has rallied a near 1000 points in 2019 primarily due to select heavyweight stocks.

From the Nifty losers, Yes Bank has been having fundraising issues and the stock has only drifted lower. For Zee, the street awaits clarity on the long-awaited stake sale by promoters. While auto stocks have felt the heat as consumer demand has slowed down, inventory levels have moved up and there has been no relief coming on the currently high GST slab of 28 percent.

Though the Nifty and Sensex have given decent returns in 2019, the broader markets have struggled with the BSE Midcap and BSE Smallcap indices down between 4 percent and 5 percent in 2019.

Liquidity crisis, auditor issues, high debt and high promoter pledge have plagued some midcap stocks in 2019 and resulted in a sharp correction in a whole host of stocks.

Get the stock right and your portfolio will still be giving solid returns

Godrej Properties has given a whopping 50 percent returns though the real estate market has been having a rough ride. From the specialty chemicals space, SRF has also given good returns and Solara Pharma has continued to deliver solid numbers.

Riskiest and Safest

Striking a balance between the erstwhile safest and most boring investment gold and maybe the most volatile investment the Bitoin would have also given you an interesting looking portfolio.

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

These two Nifty mid-cap stocks rose nearly 100% in one year

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

Listen to the Article (6 Minutes)

The Nifty Midcap Index has gained only 0.66 percent in one year, while shares of Adani Power and Bata India have surged about 100 percent during the same period. Adani Power has rallied nearly 100 percent to Rs 47.40 per share while shares of Bata India jumped about 90 percent to Rs 1,387.30 per share.

Adani Power, a unit of the Adani Group, is engaged in providing power generation by coal-based thermal power plants and coal trading. Since February 13, the stock has rallied over 30 percent. The company has recently received approval from the government to set up its first power sector special economic zone (SEZ). With the SEZ status, it would now enjoy duty waiver, tax exemptions, and faster clearances.

Meanwhile, Bata India is in the business of manufacturing footwear and accessories in both retail and wholesale networks. The company has become investors long-term bet after it changed its strategies about premiumization.

The footwear company has been growing in double digits with robust growth coming in from tier-3 and tier-4 cities. Sandeep Kataria, CEO of Bata India, said to CNBC TV18, “Besides shoe and foot care, we have also expanded into ladies and men bags and with so much more to do there. The company has a target of 500 franchise stores over the next 4-5 years and would also continue to open more company-operated stores.”

In terms of valuations, Bata is richly priced in with a P/E of 60x. However, its return on equity remains in a comfortable position of 15.83 percent. Bata is a debt-free company with strong results. Its revenue in Q3FY19 was higher by 16 percent at Rs 778 crore while net profits increased 84 percent to Rs 103 crore.

Catch all the latest updates from the stock market here.

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