Tag: Nirmal Bang

Nifty 50 poised to reach 25,000 by May, says Nirmal Bang’s Rahul Arora

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

Listen to the Article (6 Minutes)

The Nifty 50 experienced a bumpy start to the year 2024, facing challenges such as market volatility and weak global cues that prevented it from reaching the desirable 22,000 mark.

In an interview with CNBC-TV18, Rahul Arora, CEO of Nirmal Bang Equities, expressed optimism about the market’s strength, predicting a robust period until May. He speculated that the current rally might continue, pushing the index to the range of 24,000-25,000 by May.

“It is going to be a strong period of the market till May. I will not be surprised if this rally continues till 24,000-25,000 by May,” he said.

Also Read | Trade Setup For Jan 5: Can a rangebound Nifty end this volatile week higher?

Arora highlighted the prevailing theme of rate cuts. The US Federal Reserve has already indicated three quarters, and there are signs that the Reserve Bank of India (RBI) may follow suit, potentially implementing at least a 50 basis points cut.

Addressing specific stocks, Arora commented on HDFC Bank’s exceptional performance in the third quarter of the fiscal year 2024. He emphasised that HDFC Life’s valuations have also moderated, advocating for continued investment in HDFC Bank. Arora suggested that there is no apparent reason for retail investors to refrain from buying HDFC Bank shares.

Also Read | HDFC Bank Q3 business update: Gross advances grow 62.4%, retail loans 111% up

Discussing the consumer goods sector, he cautioned that fast-moving consumer goods (FMCG) companies might struggle to achieve a 10% growth in topline. Arora expressed reservations about purchasing stocks like HUL and Dabur at their current valuations. However, he maintained a positive stance on the consumer discretionary space.

For more details, watch the accompanying video

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

Bull Vs Bear: Why Elara’s confidence in specialty chemicals contrasts with Nirmal Bang’s caution

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

Listen to the Article (6 Minutes)

The Indian speciality chemicals industry has faced many challenges in recent quarters, grappling with inventory destocking, subdued global demand, and pricing pressures. Economic downturns in key markets like the US and Europe, along with increased competition from Chinese suppliers, have significantly impacted Indian exporters.

While some experts now expect the tide to turn for the industry, some believe the worst is not over yet.

Brokerage firm, Elara Capital has changed its stance on the industry from ‘cautious’ to ‘bullish’. Analysts at the broking house expect the destocking woes to subside by quarter three of the current financial year, with the first glimpses of growth anticipated in the fourth quarter.

Elara predicts a full sectoral revival in FY25 led primarily by the flourochemical segment.

The global four-year valuation cycle for chemicals hints at a potential bottom in the second half of FY24, Gagan Dixit of Elara Capital told CNBC-TV18.

Elara’s change in stance is based on its analysis of the performance of over 180 global chemical companies over the past 16 years.

Elara expects Navin Fluorine and Vinati Organics to be major gainers of the revival.

Also Read | Commodity chemical industry faces price slump and declining demand, posing challenges for key players

Brokerage firm Nirmal Bang, on the other hand, is still cautious in the near term. They believe only select players may endure in the long run.

Nirmal Bang foresees potential destocking challenges persisting for generic agrichemicals and pharmaceuticals over the next one to two quarters.

Also Read | Anupan Rasayan projects 20-25% revenue growth in FY24 on demand uptick in second half

Specialty chemicals that include specialty polymers, coatings, and electronic chemicals contribute nearly 20% to the chemicals industry in India.

The sector is projected to be worth more than $60 billion by 2026 as urbanisation and industrialisation grow, per an EY report released in June 2023. EY believes there are several factors that would drive the rapid growth. These include an abundance of labour, favourable government policies, easy access to suppliers, and a well-developed infrastructure.

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

Which new-age companies will dominate or see competition? Nirmal Bang weighs in

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

Listen to the Article (6 Minutes)

Rahul Arora, CEO of Nirmal Bang Equities, urged investors to exercise caution amidst the dynamic surge of new-age companies in the market.

In a chat with CNBC-TV18, Arora said that while firms like Paytm and Zomato have seen their valuations skyrocket after going public, there’s been a noticeable shift towards profitability and decreased cash burn. This shift has strengthened their market positions.

But Arora is concerned regarding the sustainability of these businesses; whether they can maintain self-sufficiency through cash flows, or will require continual capital infusions.

Also Read | New-age tech companies to flare up again as Zomato re-joins Rs one lakh core Mcap club

Arora pointed out that even industry giants such as Reliance are venturing into the competitive arenas of new-age companies, intensifying the market dynamics. He cited Reliance’s rollout of Tira stores as an example, which positions the conglomerate as a direct competitor to established beauty and personal care retailers like Nykaa

“I am not saying that the disruptors are going to be disrupted, but even if Nykaa reports earnings per share (EPS) of around ₹2.5-3 this year, it is trading at a valuation north of 50 times earnings, signifying intense competition in the space,” he said.

Shares of FSN E-Commerce Ventures, parent of e-tailer brand Nykaa, nearly turned positive for the year on Tuesday, November 7, after analysts projected a potential upside of up to 40% over the next 12 months.

In the case of Paytm, Arora observed a significant increase in competition over the past few years from smaller players who have secured funding.

Paytm reported a largely in-line September quarter (Q2FY24), with sustained momentum in gross merchandise volume (GMV) and healthy growth in disbursements.

Paytm shares have more than doubled from an all-time low of ₹438 earlier in 2023 but still remain nearly 55% below the IPO price of ₹2,150

Also Read | Nykaa foresees India becoming world’s third-largest consumer market by 2030

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

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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

Why stock of Gillette rose around 5% on Friday

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

Listen to the Article (6 Minutes)

The stock of Gillette has been languishing for the last many years but was up around 5 percent on Friday aided by a positive brokerage note from Nirmal Bang.

According to Nirmal Bang note, channel checks and surveys indicate healthy traction and brand recall in female grooming segment. The note adds that the continued growth in the company’s female grooming products is an important trigger for the stock.

The company has also announced their foray into electric razors, epilators, trimmers etc. To add to all of this, the company has also launched premium toothbrushes too.

In the last 5 years, the revenues of the company have grown at just around 5 percent, the profits have grown at just around 3 percent. The stock as a result is down 4 percent this year and down 25 percent in the last 5 years.

However, Nirmal Bang believes that the stock is inexpensive at current valuations of 37x FY25 earnings and has a target price of Rs 5,550.

Also Read: Men’s grooming industry surges: A handsome revolution taking the world by storm

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

Nirmal Bang’s Rahul Arora bets on PVR as a ‘great pick for core portfolio’

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

Listen to the Article (6 Minutes)

[wealthdesk shortname=”PVR” isinid=”INE191H01014″ bseid=”532689″ nseid=”PVR” sector=”Media & Entertainment” exchange=”nse”]

PVR has seen a sharp correction after news of its merger with INOX Leisure broke. The stock is down almost 10 percent in the past month but is flat when seen over a three-month period. Nirmal Bang CEO Rahul Arora reckons it’s a stock to add to one’s portfolio.

In an interview with CNBC-TV18, he said that VR is a dominant player in its field and believes that if multiplex stocks fall by 15 percent, they would become good picks for portfolio investors.

Also Read | PVR-Inox merger approved by NCLT

“Currently, with advertising margins at 95 percent gross, food and beverage (F&B) margins are almost at 75-80 percent gross. If the box office picks up, which is 55-60 percent gross margin business, it will flow through to the bottomline, he said.

According to an ICICI Direct Research’s report, Q3FY23 was a decent quarter with a box office recovery aided by movies such as Avatar 2, Drishyam 2 and Kantara. It expects multiplexes to grow nearly 35-40 percent sequentially in terms of box office revenue, while footfalls may rise between 22-30 percent.

Moreover, the average ticket prices for PVR and Inox may rise 7 percent quarter-on-quarter.

“Structurally it is a beautiful business and if you get it a little cheaper, 15-20 percent from here (current price at Rs 1662) then it’s a core portfolio hold for me, one of the best discretionary names,” said Arora.

Arora also highlighted some sectors that he believes will perform well in the current market conditions. He said that he likes infrastructure and cement stocks, as companies in these sectors will likely benefit from the current economic climate.

Arora also touched on the retail sector, noting that valuations for Avenue Supermarts are similar to HDFC Bank. However, he pointed out that the growth rate for Avenue Supermarts would need to be very high in order to justify such premium valuations. He said that the market is expecting the company to deliver compounding growth of 25-30 percent.

Also Read | Avenue Supermarts Q3 Result: Operating performance misses estimates on higher expenses

In the current market conditions, Arora noted that liquidity is withdrawing, which could make it difficult for new-age companies to perform well. However, he said that these companies will likely get the benefit of the doubt from the market if their cash burn declines. Overall, Arora’s comments provide valuable insights into the current state of the stock market and which sectors and companies may be worth considering for investment opportunities.

For more details, watch the accompanying video

Also, catch all the live updates on markets with CNBC-TV18.com’s blog

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

Festive demand check: Auto sector upshifts but rural demand still missing

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

Listen to the Article (6 Minutes)

With Diwali ending, so has the festive season this year and sectors like auto and white goods have done well in the past two months. In an interview with CNBC-TV18, Manish Raj Singhania, President of the Federation of Automobile Dealers Associations (FADA) and Teresa John, Deputy Head of Research and Economist at Nirmal Bang spoke at length about whether the festive demand has meant a better reading and if so, for which sectors.

The auto industry has seen a good festive season and hence it’s anticipating all-time high sales for the private vehicle segment.

“We are anticipating, on a year-on-year basis, an excellent figure; the passenger car industry will be the advent of good launches, the attraction of SUVs has made the day of the customer, urban and semi-urban customers are on a spending spree and everybody is going for a vehicle to own or buy.”

However, FADA is confident that two-wheelers will also perform better and tractor sales can be achieved only when rural areas start delivering.

Also Read: Festive season witnesses strong sales across most sectors

Meanwhile, John said, increased participation from women buyers has been seen for white goods.

“We are seeing increasing participation from women buyers; some of the ground research suggests that increasingly white goods sales are being driven by women buyers, also there is increasing availability of credit to these buyers, not particularly for buying white goods but in general, through microfinance institution. So, the last mile availability of credit has improved and this is driving white goods sales in this festive season and probably even outside of that,” she said.

For the entire discussion, watch the accompanying video

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