Author: root

1. IIFL Wealth Management:

The brokerage firm is bullish on this financial services company IIFL Wealth for gains of over 8 percent. The last closing price of the stock is Rs. 1674.75, while the target price set out is Rs. 1815 per share. The stop loss recommended is Rs. 1505, while the time horizon is up to 3 months.

Here are the observations for the scrip by the brokerage firm:

As per the brokerage the recent downward correction in the scrip seems to have concluded and the stock is currently signaling a decisive upside breakout of the crucial overhead resistance at Rs 1665 levels.

“The positive chart pattern like higher tops and bottoms is intact and the stock price has bounced up recently after the formation of new higher bottom at Rs 1500 levels. Hence, one may expect upside bounce from here. Weekly 14 period RSI has turned up from 65 levels, which indicate a strength of an upside momentum in the stock price. The overall chart pattern of IIF Wealth indicate long trading opportunity”, said the brokerage.

2. Sudarshan Chemical:

The brokerage firm HDFC Securities has recommended Sudarshan Chemical, a leading color and effect pigment manufacturer. The brokerage has recommended the scrip as its positional pick for a time horizon of 3 months and target price of Rs. 780. This implies gain of 15.60% from the last traded price of Rs. 674.75.

As per HDFC Securities, the chemical company has breached above downward sloping trend line. “The stock has taken a support on 50% of the bull candle. We observe a formation of bullish pattern on daily and weekly time frame. The stock is trading above 21 EMA. Momentum oscillators like RSI and MACD are giving bullish indication suggesting bullish movement for the stock for few more weeks. The overall chart pattern of Sudarshan chem indicates long trading opportunity”, added the brokerage firm.

3. NRB Bearings:

HDFC Securities is bullish on auto components company, NRB Bearings and sees it to gain up to 20% from the current market price of Rs. 140.45. The target price set out for the scrip is Rs. 168.

The company is an ISO 9001 certified best bearing manufacture company in India and today over 90% of vehicles on Indian roads run on NRB parts.

HDFC Securities take

The company has been the major beneficiary of the strong volume recovery in the auto segment. Further, going ahead there is seen revival in demand owing to recovery in OEM offtake. The company’s customer base is across segments such as two-wheelers, commercial vehicles (CVs), passenger cars, utility vehicles (UVs), farm equipment & tractors, off-highway vehicles, railways and defence.

Other key points

– NRB produces all its output indigenously unlike its MNC peers

– The company is well positioned to capitalize given the high share of demand from OEMs

– Export has been a key driver registering a growth of 10% v/s 1.5% CAGR growth in domestic market over FY12-21.

– “Increasing R&D spend and foray into Defence,Aerospace and Railway segments coupled with fall in interest cost could aid in topline and margin expansion. Fears over impact on revenues due to the advent of electric vehicles are partly justified as ICE engines need more number of bearings than Electric engines. However, though the number of bearings required may come down, the complexity and value add of bearings in EVs may be higher”, notes the brokerage company

Valuation & Recommendation: We expect NRB’s revenue/EBITDA/PAT to grow at 17/21/29% CAGR over FY21-FY23, led by increased demand in the automobile industry, operating leverage and reduction in debt. We believe investors can buy the stock in the band of Rs 132-134 and add on dips to Rs 116-118 band (12.5x FY23E EPS) for a base case fair value of Rs 150 (16x FY23E EPS) and bull case fair value of Rs 168 (18x FY23E EPS) over the next 2 quarters.

Disclaimer:

The stocks in the story are taken from the HDFC Securities brokerage report and is for informational use only and should not be construed for investment advice.

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5 stocks that you can buy

SBI has strong potential to jump 40% from current levels

Among all of these stocks, SBI may have the potential to jump at least 40% from the current levels, making it the most attractive stock to buy. Motilal Oswal has set a price target of nearly Rs 600 on the stock as against its current market price of Rs 432.

“State Bank of India has demonstrated a strong improvement in asset quality, with gross non performing assets declining 43% over the past three years. PCR, on the other hand, has increased to 68% currently from 40% four years ago.

“State Bank of India appears well-positioned to report a strong uptick in earnings, led by moderation in credit costs from FY22. During FY19-21, SBIN has shown remarkable improvement in asset quality; NPLs have reduced to 1.8% currently from 5.7% in FY18,” Motilal Oswal Financials has stated in its report.

Markets turn overvalued

Though the brokerage has recommended some largecap stocks, we wish to emphasize the fact that it maybe time to turn cautious with the index now at record highs with the Sensex around that 58,000 points levels. According to the Motilal Oswal report the Nifty 12-month forward P/E of 21.8x is at a premium of 21% v/s its long term averages of 18.0 times. This means the markets are at least 18% over and above its long term averages.

On the other hand at 3.3 times, 12-month forward P/B for the Nifty is at a 15% premium to its historical average of 2.6 times.

“As top 100 firms gain from cost efficiency and pricing power to enhance EBITDA margins and profits, big corporations are getting bigger. The first quarter of FY22 earnings season has broadly met expectations, with cyclicals leading the way,” the brokerage has said.

Markets may consolidate at these levels

According to Siddhartha Khemka, Head, Retail Research, Motilal Oswal Financial Services going ahead global cues would be actively tracked as fear of economic slowdown looms while delta variant cases continue to surge. “The market might consolidate for some time on account of weak global cues. Even valuations are also moving beyond comfort zones and hence could lead to bouts of profit booking and increase in volatility. But the overall sentiment in the domestic market remains positive, supported by improving economic data and positive earnings expectation. Good 1QFY22 earnings delivery has boosted hopes for a solid FY22 with 30%+ projected Nifty earnings growth, on the back of a strong 15% earnings growth in FY21,” he says.

Disclaimer

The article is informational in nature, which is taken from the brokerage report of Motilal Oswal. Please do consult a professional advisor before you invest in equities. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in the article.

On Thursday (September 9) Kotak Mahindra Bank announced that it has lowered home loan rates by 15 base points effective September 10. After the rates are slashed, the private lender will be offering home loan interest rate at just 6.5% as against the earlier rate of 6.65% per annum.

Note this is an offer rolled out for a limited period i.e. until November November 8, 2021. Also, the rate shall be valid across loan size and will further depend on the credibility of the loan applicant or borrower. Furthermore, the revised lower home loan rate shall apply on both new as well as balance transfer home loan cases.

Ambuj Chandna, President, Consumer Assets, Kotak Mahindra Bank, said: “We are delighted to add to the festive cheer for millions of home buyers and help make their dream of owning their ideal home a reality. As the world has changed and we are spending more time at home, our lifestyles have also evolved. People are looking for comfortable residences where the entire family can work, entertain and spend quality time together. Kotak’s incredible 6.50 percent home loan interest rate now makes owning one’s dream home even more affordable.”

The entity was already amongst the lending players in the market who are offering competitive rates on home loan. In the current regime there are a host of lenders who are offering Rs. 75 lakh at below 7 percent rate and among them Kotak Mahindra Bank and PNB offered at the cheapest starting rate of 6.65%.

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