Posts in category investments

Top 13 stock picks for the Budget by Anand Rathi

Focusing on boosting growth and on stability through continuing emphasis on infra and consumption inducing measures, the Budget is likely to be positive for Indian equity. Consumer and infra/capital goods sectors are likely to be the main beneficiaries. Despite the likely acceleration of revenue spending and the continued high growth in public capex, with favourable receipts, fiscal consolidation is likely to continue. We expect the FY25 fiscal deficit to be 5% of GDP. There is little reason to expect a populist budget

List of Large cap stocks with significant re-rating by HDFC Securities

After a meteoric rise of benchmark indices in FY24, the bull run continues unabated in FY25, notwithstanding general election-led market volatilities. So far in FY25, the benchmark indices Nifty 50, Nifty midcap 100 and Nifty Small cap 100 have delivered remarkable returns of 9%, 18% and 23% respectively. These performances follow massive returns of 29%,60% and 70% respectively generated by these indices in FY24. Against the backdrop of these unprecedented returns, it becomes imperative to analyse if these are driven by earnings upgrades of companies or simply valuation expansion.

Bank Nifty Bull Spread Strategy by HDFC Securities

From the recent high, Bank Nifty has corrected more than 1000 points which we believe is a running correction in an overall uptrend. Bank Nifty has now reached near to support level of 51800-52000 levels. In the option segment we have seen put writing at 51500-52000 levels. We therefore believe Bank Nifty is likely to trend higher till 16 July 2024 expiry. We recommend a Bull Call Spread strategy in Bank Nifty to profit from this view

Sky Gold is gearing up for growth. Buy for target price of ₹3204 (51% upside): Nuvama

Sky Gold has acquired Sparkling Chains Pvt/Starmangalsutra Pvt for INR26cr/INR24cr. It will issue 4,17,542 shares to the shareholders of Sparkling Chains Pvt and Starmangalsutra Pvt on a preferential basis. Apart from this, promoters have lent interest free loans of ~INR38cr, which will be paid off. These acquisitions will help increase SKYGOLD’s addressable market in gold jewellery and diversify its product base. We recently initiated coverage on SKYGOLD which designs and produces gold jewellery. It operates in the casting jewellery space, which accounts for 35% of total jewellery sales in India

PL has increased base case NIFTY target to 26398 & recommended Model Portfolio & High Conviction Picks

NIFTY is currently trading at 18.5x 1-year forward EPS, which is at 3.6% discount to 15-year average of 19.2x. Base Case: we value NIFTY at 3% discount to 15-year average PE (18.6x) with March26 EPS of 1417 and arrive at 12-month target of 26398 (25816 earlier). Bull Case: we value NIFTY at 5% premium to 15-year average PE 20x and arrive at bull case target of 28575 (27102 earlier). Bear case: Nifty can trade at 10% discount to LPA with a target of 24493 (23235 earlier)

MCX is on a strong footing. Buy for target price of ₹4400 (12% upside): HDFC Sec

MCX options volume is scaling new highs and the futures volume is catching up. Post the tech transition in Oct-2023, the options volume is up 60% and the futures volume is at a multi-quarter high. We believe MCX will be the least impacted by the ongoing regulatory risk

The hotel industry is continuing its healthy performance. BUY Indian Hotels (TP INR680) and LEMONTRE (TP INR175): Motilal Oswal

The hotel industry is continuing its healthy performance, led by favorable demand-supply dynamics, which are expected to continue in the foreseeable future. All the major players are harnessing their strength to tap into the ongoing uptrend in the hotel industry. In this report, we highlight the industry tailwinds and unique positioning of key players

High Dividend Yield Stocks Monitor 8th July 2024 by SBI Securities

The dividend yield is computed based on the closing price of 5 th July 2024. We have considered companies that have consistently paid dividend in the last 3 years – i.e FY23/CY22, FY22/CY21 and FY21/CY20. The * mark indicates data for FY24.

Jyothy Labs is a high conviction BUY idea for Target Price of ₹575 (20% upside): HDFC Sec

A sharp surge in ROIC: Jyothy Labs’ ROIC has sharply surged, moving up from c17% in FY23 to c28% FY24, owing to a sharp spike in EBIT margin (up from 10.7% in FY23 to 15.6% in FY24) and doubling up of cash and cash equivalents (moved up from INR 2.8 bn in FY23 to INR 6.2 bn in FY24). Notably, the ROIC ratio has been static for last many years in the mid-teen range

Tube Investment of India is an ‘Enterprising Compounder’ recently added to Marcellus’ CCP: Saurabh Mukherjea

Tube Investment of India (TII): Tube’s core engineering business (TII’s standalone entity) has built competitive advantages in precision steel strips & tubes, automotive & industrial chains and car door frames. Over FY19-24, this core business delivered 19% CAGR in EBIT and 25% CAGR in PAT, with an ROCE/ROIC of 21%/25% respectively. This growth has been supported by the company’s strong focus on extracting operating efficiencies