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Why investors should keep Lux Industries on their radar

stock market, stocks, investing

[wealthdesk shortname=”Lux Industries” isinid=”INE150G01020″ bseid=”539542″ nseid=”LUXIND” sector=”Textiles – Processing” exchange=”nse”]

In an interview to CNBC-TV18, Vaishali Parekh of Prabhudas Lilladher and Mayuresh Joshi of William O’ Neil, shared their reading and outlook on specific stocks, sectors and markets.

Speaking on Lux Industries, Parekh said, “Support for the stock comes in at Rs 1800-2000 levels. I would recommend accumulating the stock from here on because the stock has corrected from Rs 4000 and currently trading around Rs 2100. So there is a good opportunity to add on here.”

According to Joshi, “Lux Industries has an excellent earnings rating. The company has a market share of 15 percent in the organised men’s innerwear market, 30 crore pieces coming through 7 factories and we are expecting strong cash flows to continue. So this is one stock that investors can keep on radar but it has to pick up price strength from the current levels.”

Speaking about Bank of Maharashtra Joshi said, “It is a tough ask specifically with these PSU banks. They have gone through an ordeal in terms of elevated NPA growth at the beginning of the COVID cycle a couple of years back, then a strong asset recognition cycle happened in the ensuing quarters which meant that the provision coverage kept on increasing higher. So I think investors are better off with the larger private sector banks once the market stabilizes.”

Watch the accompanying video for more.

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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Amid Axis Mutual Fund row, some analysts ask investors of impacted schemes to hold on to their units

Mutual Fund

Last week, Axis Mutual Fund announced the suspension of two fund managers – one of them also the chief dealer pending what they called a “suo moto investigation”.

According to the statement released, this investigation began in February but curiously the decision to suspend the two accused was taken just a day after Moneycontrol first brought this discrepancy to light.

According to well-placed sources, the allegations include front running and price rigging of stocks.

So far, the status is that AZB & Partners and Alvarez & Marsel are the two external agencies probing the case and SEBI is being kept apprised of the developments.

So, in light of all this – what should the unit holders of the 7 impacted schemes do? Do these developments impact those who might have invested in these schemes managed by the two accused fund managers and what about the other schemes? Does this event dent sentiment or should unit holders maintain status quo till the final findings of the ongoing investigations? To answer these questions CNBC-TV18 spoke to Mohit Gang, CEO & Co-founder of Moneyfront.

Watch video for entire conversation.

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SEBI seeks immediate corrective action on IPO rules governing QIBs and NIIs

Sebi

CNBC-TV18 has learnt that the Association of Investment Banker of India has sent a mail to its members saying SEBI is looking into some of the rules governing IPOs. These rules have to do with some loopholes that are being used to advantage by QIBs and NIIs, to the detriment of retail investors.

The concern is that in a few cases, funds against last day applications by NIIs and QIBs are not coming in because of the T+1 and T+2 option available to them and this could be leading to a gaming of the system.

CNBC-TV18 learns that SEBI has sought immediate corrective action.

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Cipla fourth quarter revenue estimated to grow 11% despite fall in COVID drug demand

cipla share price, cipla generics business, cipla generics business sale, Cipla Pharma and Life Sciences Limited, CPLS, cipla stock, cipla shares, cipla latest, latest on cipla, cipla stock exchange filing, cipla filing, cipla exchange filing,

Pharma major Cipla is scheduled to report its fourth-quarter earnings on Tuesday. CNBC-TV18 poll estimated revenue to grow by 11 percent at Rs 5,097.2 crore in the March quarter of the financial year 2022 against Rs 4,606.5 crore in the same quarter last year despite falling demand for COVID-related drugs.

Cipla’s margin is likely to be supported by India business, but US price pressure could offset it. Analysts see margin range at 19-22 percent.

EBITDA is likely to grow by 30 percent to Rs 1,034 crore for the March quarter year-on-year, while margins may increase to 20.3 percent versus 17.3 percent on a year-on-year basis. Profit is likely to grow by 42 percent to Rs 586.9 crore for the March quarter versus Rs 413.4 crore for the same quarter a year ago.

The US sales are expected to be aided by Albuterol inhaler and gains in Sumatriptan. South Africa business likely to grow for co by 10-12 percent year-on-year, tender markets plus APIs could be subdued.

Management commentary on the US launch of Advair generic, Abraxane generic, domestic sales and launch of Revlimid generic would be key to watch.

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PVR more than halves losses and says cinema hall seats were as full in March as before the pandemic

cinema, media and entertainment, union budget

Leading multiplex chain operator PVR on Monday said the firm had managed to narrow down its consolidated net loss to Rs 105.49 crore for the fourth quarter ended March 2022 from a net loss of Rs 289.21 crore in the same quarter a year ago.

Its revenue from operations rose nearly three-fold to Rs 537.14 crore during the quarter under review as against Rs 181.46 crore in the corresponding quarter last financial year.

Speaking to CNBC-TV18, Nitin Sood, the chief financial officer of PVR, said the months of January and February were impacted due to the third wave of the pandemic, but March and April saw a decent bounce back.

“By the end of December, we ran into the third wave of the pandemic and cinemas across the country halted the release of films. So, January was a complete washout. However, the reopening was quite quick this time. So, March and April have seen a good bounce back,” he said.

He expects the company to do well going ahead. “We have a lot of promising releases lined up for this year, so it is looking like a very promising bounce back for the industry after a lull of two years,” Sood said.

On March 27, PVR and INOX Leisure announced they would merge their might to deliver an “unparalleled” consumer experience with a network of more than 1,500 screens. Their joint statement indicates that the onslaught of over-the-top (OTT) or streaming platforms had a role to play in the consolidation.

The new entity would be named PVR INOX, with the branding of existing screens to continue as PVR and INOX, respectively. New cinemas opened post the merger would be called PVR INOX, the companies said on Sunday in the joint statement.

PVR also recently said it would pilot the concept of cinema pods in the market after a tie-up with OMA Cinema of France.

Oma provides the audience with an intimate cinematic experience with tiered balconies, or pods. PVR’s chief growth and strategy officer Pramod Arora had earlier said PVR is keen on building cinemas with more experiential elements, which is not possible in a home environment setting.

Having “an option to have a private movie party with friends and family, OMA pods shall be your own space offering an unmatched bespoke experience of watching a film on a large screen alongside specially-crafted F&B options. Many corporates have been used to their own box at sporting events in stadia, and now they shall have an option to have one in a cinema, too,” Arora said.

Watch the accompanying video for more.

With inputs from PTI

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Refining and retail could lead Reliance Industries earnings growth

Reliance Retail Ventures, Reliance Industries share price

[wealthdesk shortname=”Reliance” isinid=”INE002A01018″ bseid=”500325″ nseid=”RELIANCE” sector=”Refineries” exchange=”nse”]

Reliance Industries Ltd (RIL) shares fell amid a market-wide sell-off on Friday, ahead of the announcement of the oil-to-telecom conglomerate’s financial results for the January-March period. The Reliance Industries stock declined by as much as Rs 38.4 or 1.5 percent to Rs 2,602.4 apiece on BSE.

Analysts in a CNBC-TV18 poll expect the company’s revenue to increase 18.9 percent sequentially to Rs 2.20 lakh crore.

They expect Reliance Industries’ earnings before interest, taxes, depreciation and amortisation (EBITDA) to rise 9.1 percent on a quarter-on-quarter basis to Rs 32,400 crore.

Analysts see the refining margin improving sequentially in the company’s oil-to-chemicals segment to $7.80 per barrel.

They peg the Singapore gross revenue margin (GRM) for its oil-to-chemical arm at $7.8 per barrel in the January-March period, as against $6.1 per barrel in the previous quarter. In April, the Singapore GRM stood at $17-18 per barrel.

Gross refining margin is an important measure of profitability for refiners. It determines the amount earned from each barrel of crude oil into products.

Nomura expects the company’s GRM at $12/barrel in the quarter ended March 2022. The brokerage sees its EBIT rising three percent sequentially and 25 percent on a year-on-year basis to Rs 11,400 crore.

According to Citi, strength in refining is being under-estimated. It is of the view that the January-March period may not see any major benefits in the O2C arm due to the petchem weakness.

Morgan Stanley expects the energy upcycle to help fund growth and lift multiples. 

Analysts estimate Jio’s EBITDA to grow 10.3 percent to Rs 10,500 crore led by higher average revenue per user (ARPU).

In the consumer business, the company’s increased store footprint is likely to aid growth in retail sales.

The company’s stock has risen 18 percent so far this year with a series of record highs.

Watch video for more.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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India’s baby care segment to grow at 13% over next 7 years: Mamaearth

India’s baby care market is pegged at a little over USD 15 billion as of 2022. It is expected to grow at a compounded annual growth rate of over 17 percent to almost USD 40 billion by 2029.

Global baby care products market is segmented by product type –baby clothes, skin care, baby hair care, toiletries, and baby food and beverage and so on.

Apparel makes up the largest chunk of this market and commands almost 80 percent of the total baby care market share as per Frost & Sullivan. Baby food makes up another 7 percent, followed by diapers, toys and toiletries.

Over the long term, the baby care product market is primarily driven by the rising baby health concerns, including the need for nutritional foods. Baby care products like skincare, hair care, toiletries are specially designed for the infants due to their sensitive skin and these products are required throughout baby’s growing stages. Similarly, baby food and beverages contains essential nutrients which provides nourishment and often promote developmental benefits to infant and young children.

Key segments of the baby care market which include baby gear, prams, toiletries, and diapers are growing by 14 percent per annum. Products for new mothers is among the fastest growing segment, wipes and cleaners are also seeing 15-18 percent growth annually.

From global multinational giants like J&J, Nestle, Procter & Gamble Co, Unilever, Kimberly-Clark Corp to Indian companies like Dabur India, The Himalaya Drug Co, newer age companies like Mamaearth and Baby Chakra- which was acquired by MyGlamGroup and so on are some of the leading brands in these categories.

To discuss the prospects of baby care segment, CNBC-TV18 spoke to Naiyya Saggi, Founder of BabyChakra and Varun Alagh, Co-Founder of Mamaearth.

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Is RBI’s repo rate hike bad for LIC IPO? This expert has an answer

The initial public offering (IPO) of Life Insurance Corporation of India (LIC) opened for subscription today (04 May). The insurance behemoth mopped up Rs 5,627 crore from its anchor investors with domestic mutual funds accounting for 71 percent of anchor book subscription.

LIC is offering over 22 crore shares for a 3.5 percent stake, as it aims to raise over Rs 21,000 crore.

Retail investors will be allotted 35 percent of the total shares in the offer and will be given a discount of Rs 45 from the IPO price.

To discuss the offering, CNBC-TV18 spoke to Nilesh Sathe, Former Member of IRDAI and Jigar Mistry, Co-Founder of Buoyant Capital.

Watch video for more.

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World Gold Council says markets have factored in a Fed hike and demand may return if price dips further

Gold bars from the vault of a bank are seen in this illustration picture taken in Zurich (Image: Reuters)

Gold prices are at 3-month lows ahead of Fed announcement. Indian gold market also witnessed selling on the eve of Akshaya Tritiya.

CNBC-TV18 learns that 25-28 tons of gold was sold on Akshaya Tritiya.

In an interview to CNBC-TV18, PR Somasundaram, Regional CEO of India at World Gold Council believes that there will be a surge in demand for gold if prices drop below Rs 50,000 per 10 gram.

“There will be a surge in demand for gold once the prices soften up. The prices hit 54,000 and with GST it went closer to Rs 55,000 and that really put off the consumers. Now the prices are testing 50,000 and if it drops below Rs 50,000 you should see another surge in demand.”

He said gold markets have factored in a 50 bps hike from Fed.

“Markets have factored in a 50 bps hike from Fed and that is why it fell almost close to USD 1850 per ounce. So whether it is going to breach USD 1850 per ounce is definitely a thing to wait and watch. However anything more than 50 bps hike, you could see the markets react.”

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Titan may report a revenue decline of 2.8% in January-March

Titan (stock image)

Titan Company Ltd (Titan) is scheduled to report its March quarter earnings on Tuesday (May 3). A poll of industry and market watchers conducted by CNBC-TV18 expects the company’s standalone revenue to decline by 2.8 percent to Rs 6,935 crore against Rs 7,135 crore in the same quarter last year.

However, earnings before interest, taxes, depreciation and amortization (EBITDA) and margin are likely to increase by 17 percent and 13.4 percent respectively on a Year-on-Year (YoY) basis. Profit after tax might grow by 17 percent at Rs 618 crore.

According to the company’s fourth-quarter update, the jewellery business saw a decline of four percent due to a high base and lockdowns.

A look at other verticals:

Segment YoY growth
Watches & Wearables 12%
Eyecare 5%
Other biz 23%
TEAL 77%
CaratLane 51%

Watch the video for more.