Author: root

Burger King India

According to Motilal Oswal, Burger King India is one of the youngest and fastest growing players in India’s quick service restaurant (QSR) sector. It is focused on establishing and operating Burger King restaurants across India.

“In the post-COVID world, where 30-40% of restaurants are expected to shut down permanently, QSRs are well-placed to grab share from other FSI segments as branded players command greater trust,” the broking firm has said.

According to the broking firm, QSRs advantages include high affordability, globally well-known and aspirational brands, different cuisines to cater to evolving taste of the youth that have been adapted to Indian tastes. They also have the benefits of scale and better sourcing.

“The brand is globally popular for its signature product Whopper. Burger King offers its services via four channels – dine-in, takeaway, delivery and drive-thrus. We initiate coverage with a Buy rating and a target price of Rs 210,” the broking firm has said.

Shares of Burger King India were last trading at Rs 174 on the National Stock Exchange.

HDFC Bank

The firm is also bullish on one of India’s top private sector banks, HDFC Bank and is looking at an upside target of nearly 20% from the current share price of HDFC Bank, which is Rs 1,478.

According to Motilal Oswal institutional Equities, asset quality deteriorated marginally, with GNPA/NNPA ratio increasing by 15bp/8bp QoQ. Total slippages in 1QFY22 stands elevated Rs 73 billion (2.5% of loans). Also, restructured loans rose to 0.8% of loans (v/s 0.6% in FY21). The bank which declared its quarterly numbers last week saw its share price tumble in trade, and the stock fell as much as 3%.

“The bank continues to make additional contingent provisions to further strengthen its Balance Sheet. Total restructured book increased to 0.8% of loans (v/s 0.6% of loans), however overall stress formation remains under control. In the near term, lifting of RBI restrictions remains a key monitorable. We broadly maintain our earnings estimates and project 18% PAT CAGR over FY21-23E. We maintain our Buy rating with a target price of Rs 1,800 per share (3.5x FY23E ABV),” the broking firm has said.

Shares of HDFC Bank were last trading at Rs 1,478, down 3%.

L&T Finance Holdings

The third stock that Motilal Oswal is bullish on and has a “buy” call on the stock is the NBFC stock of L&T Finance Holdings.

Rural businesses witnessed an improving MoM trend in Jun-Jul’21 in disbursements/collections. LTFH has been consolidating its loan book over the past many quarters, and we expect this to continue over the next 2-3 quarters. We expect disbursements in 2W/ML to pick up as collections improve. Restructured pool (including OTR 2.0) was contained at 2.6%, with a PCR of 14%. Gradual normalization in excess liquidity on the Balance Sheet will reduce the negative carry and support margin. We look to revise our estimates post the analyst call on 19th Jul’21

Disclaimer

Investing in stocks is risky and investors need to be cautious. Neither Greynium Information Technologies nor the author, nor the brokerage houses mentioned would be responsible for any losses incurred based on decisions made from the article. Investors are also advised caution as the markets are now at a historic high.

Tata Power

Tata Power Limited, a subsidiary of the Tata Group, is an Indian electric utility company situated in Mumbai, Maharashtra. The company’s main activity is to generate, transfer, and distribute electricity. Tata Power has established TP Akkalkot Renewable Ltd, a special purpose vehicle (SPV) that will be responsible for the building, operation, and maintenance of this captive solar power plant.

The company’s debt has been reduced by 16.04 crores. The firm has a high level of operating leverage, with average operating leverage of 4.13. With a current ratio of 3.56, the company has a strong liquidity position. Tata Power’s current year dividend is Rs 1.55, with a yield of 1.25 percent.

Tata Solar has embarked on a rooftop solar installation binge. It is also one of India’s largest and oldest solar panel manufacturing plants, given the courtesy.

Suzlon

Suzlon is a leading renewable energy company in India. Wind turbine generators are designed, developed, and manufactured by the corporation (WTGs). It is a company that creates, develops, and manufactures wind turbine generators (WTGs). It also offers ancillary services, giving it a significant presence throughout the wind energy value chain.

The company has a high level of operating leverage, with an average operating leverage of 56.32 percent. Suzlon Energy has a PE ratio of -17.67, which is low and inexpensive compared to its peers. Suzlon Energy has a D/E ratio of -1.16, indicating that the company has a low debt-to-capital ratio. Over the last three years, the company has had a dismal ROE of 6.77 percent. In the past year, the stock has given a return of 68%.

Adani Power

Adani Power Limited is the power division of the Adani Group, an Indian conglomerate headquartered in Ahmedabad, Gujarat. Adani Power has a D/E ratio of 1.90, indicating that the company has a low debt-to-capital ratio. Adani Power’s operating margin for the current financial year is 8.74 percent. The current ratio of Adani Power is 0.15.

The green energy investments sparked value purchasing and partial payments to the Rajasthan and Maharashtra governments that had been long overdue. Aside from that, the cancellation of Adani Power’s delisting has aided the company’s share price surge. In the past year, the stock has given a fantastic return of 202% and YTD returns of 113%.

Top 4 Indian Solar Company Stocks To Watch Out

Websol Energy System

In India, it is a significant manufacturer of solar cells and panels. The company has a reputation for high-quality products ranging from 5 W to 220 W, catering to the demands of home, commercial, and industrial institutions, and has been in business for more than two decades.

Websol Energy System has a market capitalization of Rs 221.12 crore. The company generated gross sales of Rs. 1955.42 crores and total income of Rs.2064.41 crores in the most recent quarter. It has a PE ratio of 3.26, which is low and cheap compared to its peers. The stock gained 57.4 percent over three years, compared to 39.97 percent for the Nifty Smallcap 100. The D/E ratio of Websol Energy System is 0.61, indicating that the company has a low debt-to-capital ratio. Given its development and performance, Websol Energy System’s revenue climbed by 185.22 percent, which is respectable.

Swelect Energy Systems

Swelect Energy Systems Limited is a solar module, mounting structure, transformer, and inverter manufacturer and trader based in India, Europe, and internationally. Solar and Solar Related Activities, Foundry Business, and others are the company’s three segments.

Swelect Energy’s PE ratio is 16.52, which is excessive and overvalued in comparison. Swelect Energy has a negative return on investment (ROI) of -1.89 percent, which is a bad omen for future performance. (higher values are always desirable). The current year dividend for Swelect Energy is Rs 2 and the yield is 1.12 %.

Numeric Power Systems Limited was the company’s previous name until May 2012, when it was renamed Swelect Energy Systems Limited. Swelect Energy Systems Limited is based in Chennai, India, and was founded in 1994.

The current share price of Swelect Energy Systems is 260.25. It currently has a market capitalization of Rs 402.01 crore. The company reported gross sales of Rs. 1420.4 crores and total income of Rs. 1737.5 crores in the most recent quarter.

Surana Solar

In comparison to the Nifty Smallcap 100, which returned 48.85 percent over three years, the stock returned 59.04 percent. Surana Solar Ltd. was founded in 2006 and is based in India. The current share price is 13.64. It now has a market capitalization of Rs 64.61 crore.

The company’s debt has been reduced by 16.04 crores. The firm has a high level of operating leverage, with average operating leverage of 4.13. With a current ratio of 3.56, the company has a strong liquidity position.

Urja Global

Urja Global Ltd. was founded in 1992 and is based in the United Kingdom. The current share price is Rs. 7.55. It now has a market capitalization of Rs 422.36 crore. The company reported gross sales of Rs. 1445.59 crores and a total income of Rs.1463.63 crores in the most recent quarter. The stock returned 149.18 percent over three years, compared to 48.85 percent for the Nifty Smallcap 100. A greater current ratio is desirable so that the corporation can withstand unanticipated business and economic downturns. The current ratio of Urja Global is 1.09. The organization can take advantage of India’s rural development wave of opportunity and optimism surrounding solar energy.

Highlights of Renewable Energy

• India has the world’s fifth-largest installed renewable energy capacity.
• India’s Wind power has the fourth greatest installed capacity in the world.
• In the last five years, solar power capacity has expanded by more than 5 times, from 6.7 GW to 40 GW in March 2021.
• By 2030, the Indian government wants to boost overall renewable energy capacity to 450 GW. Gujarat is now constructing the world’s largest renewable energy park, a 30 GW solar-wind hybrid project.
• India has the world’s fifth-largest solar installed capacity.
• ReNew Power, Vikram Solar, Indosolar, Waaree Solar are some of the popular non-listed solar companies.