Author: root

Buy Indian Bank for gains up to 62%

Emkay Global Financial Services has set a very bold price target on the stock of Indian Bank and has recommended to buy the stock. The firm has set a price target of Rs 225 on the shares as against the current stock price of Rs 139, which implies an upside of almost 62% from the current price.

According to Emkay Global Financial Services Indian Bank has benefited the most from the merger in terms of liability profile (CASA), and it has largely completed the integration process given its proactive management.

“With strong capital buffers in place and overall NPAs expected to trend down given the transfer to NARCL/resolutions, the bank is gearing up for growth (10-12% yoy). Factoring in better growth/margins and lower LLP/tax incidence, we raise FY22/FY23E EPS by 106%/45%. We expect the bank’s RoE to improve to 12%/13% by FY23/24E from a low of 4% in FY20 post-merger. Accordingly, we are upgrading the stock to Buy from Hold with a revised target price of Rs 225 (0.7x Jun’23E ABV),” Emkay Global Financial Services has said.

Shares of Indian Bank were last trading at Rs 139.80 on the Bombay Stock Exchange.

HDFC Life

Brokerage firm Emkay Global has said to buy the stock of HDFC Life with a price target of Rs 870 on the stock. Considering the current market price of Rs 672, it is an uptick of more than 25%. The firms sees several positives for the company and has hence suggested buying into the shares.

According to the broking firm, HDFC Life’s market share has expanded by 230 basis points qoq to 17.8% from 15.5%. The brokerage has also noted that the solvency ratio was healthy at 204%, providing comfort over any near future dilution for the company.

According to Emkay Global growth improvement continued in credit protect and annuity businesses amid increased focus on specific lending products.

“We expect the trend in margins to remain stable with a balanced product mix and a gradual rise in the share of protection and annuity plans along with increasing penetration in deeper geographies. We roll forward our target price to Sep’22E and maintain Buy (OW in EAP) with a revised target price of Rs 870 (Rs 848 previously), corresponding to 4.5x P/Sep’23E EV,” Emkay has said.

Shares of HDFC Life were last seen trading at Rs 671 on the National Stock Exchange.

Investors should tread with caution

Investors should tread with caution when investing, as we believe that markets are not at cheap levels. Price to earnings multiples are way ahead of long term averages and hence investors should only invest small amounts. Ideal way, is to either stay invested or invest in small amounts.

Disclaimer

The above two stocks are picked from the brokerage report of Emkay Global. Neither the author, nor Greynium Information nor the brokerage would be responsible for any losses incurred based on a decision after reading the article. We at goodreturns.in have been constantly emphasizing the need to reduce over exuberance in stocks and invest with caution. So, please do be careful.

NIFTY FMCG Sector

The NIFTY FMCG Index will be tracked by the ICICI Prudential FMCG ETF. The Nifty FMCG Index is made up of 15 FMCG stocks that are listed on the National Stock Exchange (NSE). FMCG Market is the 4th Largest Market in India.

The sector is divided into three main segments: food and drinks, which account for 19% of the total, healthcare, which accounts for 31%, and household and personal care, which accounts for the remaining 50%.

Hindustan Unilever, which has the greatest weighting in the index, is followed by ITC and Nestle India as firms that make up this index. As a result, investing in this ETF will provide you with exposure to major companies in India’s fourth-largest sector. During the NFO, a minimum investment of Rs 1,000 in multiples of Re 1 is required.

Almost all FMCG brands have now connected with major e-commerce platforms, allowing their items to be delivered directly to consumers’ homes.

Details To Know Before Opting

New Fund Offer Closes on: August 02, 2021

of business hours upto August 02, 2021

Ongoing/Continuous Offer)

multiples thereof.

Should You Consider?

Invest in ICICI Prudential FMCG ETF aims to benefit from:

• Increasing awareness, spending power, ease of access, and changing lifestyles.
• The increased competition encourages businesses to innovate and introduce new products.
• Increased consumption in rural and urban areas might be a growth factor.
• Low capital required: You can invest as little as Rs.500 in 15 FMCG firms.

Should You Consider?

FMCG sector funds are a form of mutual fund that invests in consumer goods companies. Fast Moving Customer Goods (FMCG) is an abbreviation for a wide range of products that customers use on a regular basis.

The index has only returned 20% in the last year, which is lukewarm when compared to the general market, which has produced tremendous returns. When the dividend portion of this return is factored in, the total return from the index is 23.11 percent. This fund is appropriate for individuals interested in gaining exposure to the FMCG industry.

Disclaimer

Mutual Fund investments are subject to market risks, read all scheme-related documents carefully. The NAVs of the schemes may go up or down depending upon the factors and forces affecting the securities market including the fluctuations in the interest rates.