Author: root

1. Jindal Steel:

Jindal Steel & Power Ltd. (JSPL) is one of India’s largest Iron & steel companies with an installed capacity of 8.6mn Tonne at the end of FY2021. Global steel cycle has turned around due to normalization of demand in developed economies due to reopening of the economies. This has led to significant increase in demand for steel which in turn has led to record high international steel prices. Moreover, China’s focus on limiting domestic production and removing export rebates for various categories of steel has also led to fall in Chinese exports which has led to lower domestic prices in China but has led to firming of international steel prices, said the report.

Substantial de-leveraging a major plus

For the q4FY21 period, JSPL has posted a very strong set of numbers due to firm domestic prices and availability of low cost iron ore from Sarda mines. The company has also been deleveraging its balance sheet with net debt expected to comedown to approximately Rs. 12,600 cr by FY2022 which should lead to a rerating in the stock. At current levels the stock is trading at EV/EBIDTA of 4.0xFY2022 EBIDTA and offers value given the upturn in global steel cycle.

The stock has been given a ‘Buy’ with a target price of Rs. 550, this implies gains of 37% from the last traded price as on July 7 as of Rs. 400 per share.

2. Quess Corp:

This is one of India’s leading human resource companies offering a range of solutions to employers for fulfilling their hiring requirement. The company is in the fast growing field of providing staffing solutions to companies and has registered a revenue CAGR of 52.6% between FY16 to FY21.

Hiring pick up is an advantage to this workforce stock

The company’s revenue got impacted in the H1FY21 but now as the demand for staffing solution increased, there was seen a good recovery. Now even as the second wave could impact q1FY22 results, for the rest of the financial year, the company’s performance is likely to improve on account of outsourcing of the non-core positions post the pandemic.

“Moreover, Quess Corp is trading at a P/E multiple of 20.0xFY23 EPS which is at a significant discount to Team Lease despite having similar return ratios.

Given similar growth profile and return ratios we feel that Quess Corp offers value at current levels and rate it a BUY”, added the brokerage report.

The target suggested for the scrip is Rs. 1060, implying a possible upside of 31% from the price of Rs. 808 when the scrip was recommended. Note the price for upside reference is the closing price of the scrip as of July 7, 2021.

3. Stove Kraft:

Stove Kraft Ltd (SKL) is engaged in the business of manufacturing & selling kitchen and

Home appliances products like pressure cookers, LPG stoves, nonstick cookware etc. under the brand name of ‘Pigeon’ and ‘Gilma’. In the Pressure Cookers and Cookware segment, over the last two years, the company has outperformed Industry and its peers.

Competitive advantage to organised players will help the company

Post Covid, organize players are gaining market share from unorganized players which wouldbenefit the player like SKL.”Going forward, we expect SKL to report healthy top-line & bottom-line growth on the back of new product launches, strong brand name and widedistribution network”, added the company.

The company sees the scrip of SKL to hit a price of Rs. 950, an upside of 28% from the price of Rs. 740 (at the time when the stock was recommended).

Disclaimer:

All of the above stocks are picked from brokerage report of Angel Broking. Investing in stocks is risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies Pvt Ltd is not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly.

Kotak Equity Opportunities Fund

Kotak Equity Opportunities Fund has been rated 5-star by Value Research. The fund invests in a mix of large and mid cap stocks across sectors.

A SIP in the fund started 3-years ago for Rs 10,000 each month would have generated a corpus today of more than Rs 5.30 lakhs. Kotak Equity Opportunities Fund has given a returns of 54% in the last 1-year, while the 3-year returns are 18% on an annualized basis and 17% for 5-year returns on an annualized basis. Investors can look at investing in the growth option as the dividends are anyway taxable. The growth option has a net asset value of Rs 197.184.

The fund has investment in large size companies and more than 95% is invested in equities.

Canara Robeco Bluechip Equity Fund

This fund has a 5-star rating from CRISIL. Canara Robeco Bluechip Equity Fund invests its money in largecap stocks, which means should the indices fall, so would returns, since bulk of these are index stocks. The fund has given a superlative returns of 45% in the last 1-year, while the 5-year returns are 16% on an annualized basis.

Investors can start an SIP with a sum of Rs 1,000 each month. Canara Robeco Bluechip Equity Fund has about 94% of its money invested in largecap equities and the balance in cash and cash equivalents. The stocks that are being held in the portfolio include names like HDFC Bank, Infosys, Reliance Industries, ICICI Bank and Tata Consultancy Services.

HDFC Equity Savings Fund

This fund has been rated 5-star by Morningstar. This is a good fund for those looking at a very balanced portfolio. Equity-savings fund tend to invest, though not exactly about a third of your money each in equity shares, bonds and arbitrage opportunities. It may not be that exactly the same amount is parked, but, there could be slight variations. In short, they are pretty much tilted towards diversification and hedging risks from volatile equities.

The fund’s debt holdings are in the bonds of Punjab National Bank, Canara Bank, NCDs of Vedanta, Treasury bills etc. On the other hand the equity exposure is to stocks like HDFC, Infosys, Reliance etc. A good mutual fund scheme for those looking to diversify their portfolio.

ICICI Prudential Money Market Fund

If you are looking at zero risk for your investment then money market funds are the way to go. Returns are not too great and could be like bank deposits. However, the money is secure as money market funds mostly invest in government securities.

To churn slightly higher returns they also invest in corporate debt. 100% of the amount is generally invested in debt. The fund has not generated a great return and 1-year returns are just under 4%, while 5-year returns are near 7%.

This fund has been rated as 5-star by Morningstar.

BOI AXA Tax Advantage Fund

These are ELSS schemes that give you tax returns under SEC80C of the Income Tax Act. BOI AXA Tax Advantage Fund like most other ELSS schemes invest almost all of their money in equities. This fund has parked almost 98% in equities.

The returns from the fund have been as high as 71% in the last 1-year, while the 3 and 5 year returns are around that 19% mark.

This fund has a 5-star ratings from Crisil.

Disclaimer

Mutual Fund investing is subject to market risks. One should exercise caution and invest only if he or she is able to bear losses. The above article is for information purposes only. Neither the author nor Greynium Information Technologies would be responsible for losses incurred on decisions based on this article. Please be careful and consult an advisor before investing.

SBI Magnum Childrens Benefit Fund

SBI Mutual Fund’s SBI Magnum Children’s Benefit Fund – Investment Plan Direct – Growth is an Aggressive Hybrid mutual fund plan. It is a medium-sized fund in its category, with Rs 151 crores in assets under management (AUM) as of 30 June 2021. The fund’s expense ratio is 1.01 percent, which is comparable to the expense ratios charged by most other Aggressive Hybrid funds.

The financial, automobile, chemical, services, and metals industries make up the majority of the fund’s equity holdings. GOI, Muthoot Finance Ltd., Laxmi Organic Industries Ltd., Powergrid Infrastructure Investment Trust, and Catholic Syrian Bank Ltd. are the fund’s top five holdings. The primary index for the Investment Plan is the CRISIL Hybrid 35+65 – Aggressive Index.

UTI CCF Investment Plan

UTI CCF- Investment Plan is a UTI Mutual Fund Solution-Oriented – Children’s Fund fund. It has a market capitalization of Rs 504.40 crore. The UTI CCF- Investment Plan is benchmarked against the CRISIL Balanced Fund – Aggressive Index as the principal index, as well as the NIFTY 50 – TRI and NIFTY 500. The top 3 holdings of the fund are Infosys, HDFC and ICICI Bank. The recent one-year growth returns on the UTI Children’s Career Fund-Investment Plan Regular Plan are 56.79 percent. It has generated an average yearly return of 10.31% since its inception. The majority of the money in the fund is invested in the financial, technology, services, FMCG, and automobile industries. For July 7, 2021, the NAV of UTI Children’s Career Fund-Investment Plan is 55.13.

HDFC Children’s Gift Fund

HDFC Children’s Gift Fund Direct Plan is a medium-sized fund in its category, with assets under management (AUM) of 4,667 crores. The cost ratio of the fund is 1.09 percent. The fund now has a 67.10 percent stock allocation and a 19.07 percent debt allocation.

The 1-year returns on the HDFC Children’s Gift Fund Direct Plan are 48.06 percent. It has produced an average yearly return of 16.44% since its inception. The NIFTY 50 – TRI as the primary index and the NIFTY 50 Hybrid Composite Debt 65:35 Index as the secondary index are used to measure HDFC Children’s Gift Fund.

Axis Childrens Gift Fund – No Lock-in

Axis Children’s Gift Fund is an Axis Mutual Fund Solution-Oriented – Children’s Fund fund. It has a market capitalization of Rs 607.91 crore. The NIFTY 50 – TRI index is used as the primary index, and the NIFTY 50 Hybrid Composite Debt 65:35 Index is used as the secondary index. The Financial, Technology, Automobile, Services, and Chemicals sectors make up the majority of the fund’s equity holdings. If you redeem within 365 days, you’ll get a 3% bonus. Between 366 and 730 days, redemption rates are 2%. Between 731 and 1095 days, there is a 1% chance of redemption.

LIC MF Childrens Fund

The fund has a 1.41 percent expense ratio, which is higher than most other Balanced Hybrid funds. The fund currently has an equity allocation of 88.16 percent and a debt exposure of 10.87 percent.

The returns on the LIC MF Children’s Gift Fund Direct-Growth Fund over the last year have been 33.91 percent. It has returned an average of 10.50 percent every year since its inception. GOI, HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., and Tata Consultancy Services Ltd. are the fund’s top five holdings. The equity part of the fund is predominantly invested in the financial, technology, fast-moving consumer goods, healthcare, and energy sectors. It has delivered average annual returns of 10.5% since inception.

Mutual Funds For Child’s Education With SIP Investment

Why You Should Consider Mutual Funds For Child Education?

You must select an investment that provides a return that is higher than inflation over a period of time. Invest your money according to your risk appetite to build up a fund for your child’s higher education. To save money for your child’s higher education, you can use a relatively safe financial vehicle like the PPF or the NSC. An aggressive investor, on the other hand, may choose to invest in equity-oriented ventures with a high long-term return on investment. You should figure out how much money you’ll need for the child’s college as soon as possible. It allows you to choose the best investment and save the funds needed to send your child overseas for higher education. Equities mutual funds are a good option. Over time, mutual fund investments provide far superior returns than any other type of savings. The returns are better if the time horizon is longer than ten years.You won’t have to stress over which stocks to buy or when to acquire them. For a nominal price, a professional fund manager will handle all of these tasks for you.

Disclaimer

The opinions and investment tips expressed by Greynium Information Technologies’ authors or employees should not be construed as investment advice to buy or sell stocks, gold, currency, or other commodities. Investors should not make trading or investment decisions solely based on the information discussed on GoodReturns.in. We are not a qualified financial advisor, and the information provided here is not intended to be investment advice. It is primarily informative. All readers and investors should be aware that neither Greynium nor the author of the articles are liable for any decisions made in reliance on these articles. Please seek the advice of a professional.

Tata Motors

The brokerage has a “buy” call on the stock with a price target of Rs 430. Sharekhan sees all-round improvement in Tata Motors’ business and expect earnings to turn positive in FY2022 and rise by 69.1% in FY2023E, driven by a 16.7% CAGR in revenue during FY2021-FY2023E and a 130 basis points improvement in EBITDA margin.

“Retail sales and orders remain robust, which is likely to keep wholesales strong, as the issue of semiconductor chip shortage is set to improve from Q3FY22 onwards. The management stays positive on product delivery, launches and capex programs as planned earlier. With respect to the global chip shortage, chip-making facilities in Japan and Texas will take time to resume,” the brokerage has said.

Tata Motors: Growth drivers intact

According to Sharekhan the key growth drivers at the firm are intact. With respect to the global chip shortage, chip-making facilities in Japan and Texas will take time to resume. “With the electrification to be the next motivation for the company over the next decade, JLR targets net zero carbon emissions by 2039.The management has maintained its positive guidance for its JLR business, expecting positive cashflow by FY23, net debt to be zero by FY24and EBIT margins greater than 10% by FY26,” the brokerage has said.

Tata Motors: Attractive on valuations

“We expect Tata Motors earnings to become positive in FY2022E and 69.1% in FY2023E, driven by a 16.7% revenue CAGR during FY2021-FY2023E and a 130 bps improvement in EBITDA margin. Our SOTP-based valuation provides a target of Rs. 430 for Tata Motors. The stock trades at an attractive valuations at P/E multiple of 9.6x and EV/EBITDA multiple of 2.9x its FY2023E estimates. We maintain a Buy on the stock with an unchanged target price of Rs 430,” the brokerage has said.

Shares of Tata Motors were last seen trading at Rs 306 on the NSE.

Tata Consultancy Services (TCS)

Sharekhan has also given a buy call on the stock of TCS. The company recently declared its quarterly numbers. The brokerage has maintained a buy call on the stock with an unchanged target of Rs. 3,750, given a strong revenue growth potential, resilient margin performance and strong competencies across technologies and domains.

“Management remains confident on reporting sustainable margins in FY2022E, aided by strong revenue growth and operational efficiencies, despite a rise in discretionary expenses. It is well-placed to capture growth and transformation opportunities. USD revenue and earnings to clock a 13%/16% CAGR over FY2021-23E; we continue to prefer TCS on account of its full-service business model, best-in class execution, consistent mega-deal wins and higher payouts,” the brokerage has said.

Shares of TCS were last seen trading at Rs 3,208 on the NSE.

Disclaimer

All of the above stocks are picked from brokerage reports. Investing in stocks is risky and investors should do their own research. The author, the brokerage firm or Greynium Information Technologies Pvt Ltd is not responsible for any losses incurred due to a decision based on the above article. Investors should hence exercise due caution as markets have run-up significantly.