Tag: PhillipCapital

Domestic steel prices to correct in December; cautious on non-ferrous metals: Phillip Capital

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

Listen to the Article (6 Minutes)

Metal stocks continue to move down with the index slipping over 2 percent on November 30. Vikash Singh, Vice President of Metals & Mining at Phillip Capital, shared his outlook on metals.

According to him, the first half of 2022 still looks good for the steel sector.

“So we are not that negative on steel as of now,” he said.

However, he expects some price correction in the domestic market.

“On steel outlook, we feel December might be a little bit weaker because we are expecting some price correction in the domestic market,” he said.

Also Read: Bullish on metals space; expect higher levels on Tata Steel: Rakesh Arora

He believes, Vedanta got supported by the news of promoters buying.

“In the non-ferrous space, they are more exposed to the global market than the ferrous space because their dependence on exports is much higher than steel. So I would be trading a little bit cautious in the non-ferrous space,” he said.

On the ferrous side, iron ore has fallen roughly about 55 percent from its peak levels.

A string of bad news on the macro front as well as the new variant of the coronavirus- Omicron has also shaken the sentiment of the investors.

On the non-ferrous side, power cost has been playing a vital role in terms of defining the end prices of aluminum as well as zinc.

For the full interview, watch the accompanying video.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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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

Should you buy Asian Paints? PhillipCapital says this

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

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Financial services firm PhillipCapital (India) has put a buy call on Asian Paints and set a target price of Rs 3,400.

“Strong brand equity, an extensive distribution network, and a well-diversified product portfolio and its ability to quickly ramp up business within adjacent categories (waterproofing, construction chemicals, putty) make it a “Must-own” company within one’s portfolio,” PhillipCapital (India) said.

The firm expects healthy consumer demand in the paints industry on the back of a pick-up in projects business, normal monsoon pick-up in real estate activity and a significant ramp-up in new businesses.

Also Read: Citi India retail unit sale: Kotak, Axis, IndusInd, HDFC Bank likely bidders as deadline ends

PhillipCapital (India) also sees a gradual improvement in operating margins in Asian Paints as the company initiates cost-efficiency measures. Asian Paints is likely to deliver operating margins by fiscal 2024 similar to that seen in fiscal 2020, the financial services firm said.

Meanwhile, the country’s leading paint company reported a 28.2 percent dip in consolidated net profit at Rs 595.96 crore in the July-September quarter from Rs 830.37 crore in the same period last year due to a rise in raw material prices.

“Steep inflation seen in raw material prices, since the beginning of this calendar year, has been phenomenal and has impacted gross margins across all businesses in the quarter,” Amit Syngle, managing director and CEO of Asian Paints, said in a press statement on Thursday.

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However, the company’s consolidated revenues increased 32.6 percent to Rs 7,096 crore from Rs 5,350 crore as a result of higher volume growth by the domestic decorative business.

On the Bombay Stock Exchange, shares of Asian Paint hit an over two-month low of Rs 2,912 on Friday. The stock closed at Rs 2,984.65, down by 0.63 percent from its previous close of Rs 3,003.50.

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

M&M gives conservative guidance for tractor industry; Phillip Capital downgrades to Sell

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

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Mahindra and Mahindra (M&M) gave conservative guidance for the tractor industry. The management said the tractor industry will grow in the low single digits in FY22. This compares to the 28 percent growth in FY21.

The management also raised the capital allocation plan to Rs 17,000 crore from Rs 12,000 crore floated earlier. This could impair the free cash flow generation of the company.

Read here: M&M dips over 6%; Should investors buy, sell or hold?

Global brokerage firm CLSA raised its target price on M&M to Rs 1,090 per share from Rs 1,060 earlier expecting better margins for the auto and tractor business.

However, Phillip Capital has downgraded M&M to a ‘sell’ and lowered the FY22 and FY23 estimates on the back of the conservative tractor guidance as well as the raised capital allocation plans.

Watch the accompanying video of CNBC-TV18’s Sonia Shenoy for more details.

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

Standout Brokerage Report: PhillipCapital downgrades Escorts to ‘sell’ with nearly 20% lower TP; Here’s why

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

Listen to the Article (6 Minutes)

PhillipCapital has downgraded Escorts to a ‘sell’ rating with a target price of Rs 990, which is close to a 20 percent downside from current levels.

The tractor sales cycle is coming to an end owing to a high base and above normal inventory in FY21, the brokerage said in a note. The growth is going to be a challenge going forward. The brokerage has reduced volume expectations for FY22e by 9 percent and FY23e by 5 percent. It also reduced EPS for FY22e by 10 percent and for FY23e by 14 percent.

Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.

To watch other videos in this series, click on the Standout Brokerage Report tab below.

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