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Power Finance Corporation Limited

PFC is India’s largest non-banking financial company (NBFC) and infrastructure finance firm. The Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) both list PFC (NSE). It is also an ISO 9001:2000 accredited firm with the Indian designation of Navratna Company. The stock is currently trading at 0.54 times its book value. The company’s advances growth ratio is 18.59 percent, which is well-maintained. The promoters own 55.99 percent of the company.

Shriram Transport Finance Company Limited

The Shriram Transport Finance Company Ltd. was founded in 1979. Its share price presently is 1367.35. It currently has a market capitalization of Rs 36514.74 crore. The company reported gross sales of Rs. 174215.2 crores and total income of Rs. 174473.6 crores in the most recent quarter. It is traded on the BSE under the symbol 511218, the NSE under the symbol SRTRANSFIN, and the ISIN is INE721A01013. Over a three-year period, the stock returned -6.82 percent, compared to Nifty Financial Services, which returned 48.3 percent

HDFC

In 1977, Housing Development Finance Corporation Ltd. was established. Its share price currently is 2507.6. It currently has a market capitalization of Rs 452810.68 crore. The company reported gross sales of Rs. 481522.6 crores and a total income of Rs. 481783.8 crores in the most recent quarter. The profit margin has increased by 8.03 percent. The company’s advanced growth ratio is 18.45 percent, which is well-maintained. Over a three-year period, the stock returned 32.5 percent, compared to Nifty Financial Services, which returned 48.3 percent.

Bajaj Finance

Bajaj Finance Ltd., founded in 1987, is a Large Cap business in the NBFC industry with a market capitalization of Rs 363,784.99 crore. In the last three years, the company has maintained a good ROA of 3.82 percent. The company has a 20.29 percent Return on Equity (ROE) track record. Over a three-year period, the stock achieved a 167.1 percent return, compared to 48.3 percent for Nifty Financial Services. Over the last three years, the company has experienced significant profit growth of 0%.

Muthoot Finance

Muthoot Finance Ltd., founded in 1997, is a Large Cap business in the NBFC sector with a market capitalization of Rs 59,776.18 crore. Over a three-year period, the stock generated a return of 296.73 percent, compared to 48.3 percent for Nifty Financial Services.

The profit margin has increased by 5.96 percent. In the last three years, the company has maintained a good ROA of 6.09 percent. Since the last three years, the company has maintained a respectable ROCE of 16.40 percent. Over the last three years, the company’s operating income has increased significantly.

LIC Housing Finance

LIC Housing Finance Ltd., founded in 1989, is a Large Cap business in the NBFC sector with a market capitalization of Rs 23,628.32 crore. Over a three-year period, the stock returned -0.55 percent, compared to Nifty Financial Services, which returned 48.3 percent. The stock is currently trading at 0.65 times its book value. The company’s advanced growth ratio is 15.37 percent, which is well-maintained.

Aditya Birla Finance Ltd

The company Aditya Birla Capital Ltd. was founded in 2007. Its share price presently is 118.45. It currently has a market capitalization of Rs 28610.9 crore. The company reported gross sales of Rs. 1998.2 crores and total income of Rs.2013.3 crores in the most recent quarter. The profit margin has increased by 20.25 percent. The stock is currently trading at 1.10 times its book value. Over the last three years, the company’s operating income has increased significantly.

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Our content is designed for and must be used solely for the purpose of providing information and education. Before making any investment based on your own unique circumstances, it is critical to conduct your own analysis.

30% Upside On This McDonald’s Operator

Emkay Global Financial Services sees a 30% upside on the stock of Westlife Development with a price target of Rs 630 on the stock, as against a current market price of Rs 495.

“Our interaction with management indicates strong traction in convenience channel sales, led by consumer shift to dominant brands & digital initiatives. Dine-in is currently impacted but faster recovery is expected vs. FY21 on easing restrictions and increasing vaccination. Expansion plans are intact at 25-30 store additions in FY22 despite second wave-led lockdowns. Ramp-up of Mc-Café network (present in 80% stores currently) and scale up of new products (fried chicken/gourmet burgers) ahead offer relatively better SSG outlook,” the broking firm has said.

Solid Network

Hardcastle Restaurants operates more than 300 McDonald’s restaurants (as of September 2019) across 42 cities in the states of Maharashtra, Karnataka, Telangana, Gujarat, Tamil Nadu, Kerala, Chhattisgarh, Andhra Pradesh, Goa and parts of Madhya Pradesh, and provides direct employment close to 10,000 employees.

McDonald’s operates through various formats including standalone restaurants, drive-thru’s, mall food courts, McDelivery and dessert kiosks. It also has three thriving brand extensions – McDelivery, McCafe and McBreakfast.

“The management maintained its store addition target of 25-30 stores in FY22E, with plans to further scale up Mc-Café to the remaining network in next 2-3 years. Currently, Mc-Café is present in 230 stores out of total 305 stores. Newly introduced products such as fried chicken in South India and gourmet burgers in Maharashtra are gaining traction and will be extended to the remaining network, driving higher unit sales,” Emkay Global Financials has said in its report.

Attractive valuation compared to peers

Emkay Global Financial believes that the stock valuations of Westlife Development are attractive when compared to peers.

The firm sees cosr reductions as well, as rental contracts are being further optimized and some rebates are expected in Q1. Commentary remains positive on cost efficiencies, and WLDL hopes to see results from Q2 as sales normalise, the firm has said.

“We expect sales/EBITDA growth of 10%/20% in FY20-24, and faster recovery can drive upsides. Large penetration opportunity, improving profitability and valuations at discount to peers make it an attractive long-term bet. We value Westlife Development at 32 times Sept-23 estimated pre-INDAS EBITDA (vs. Jun-23E) with a target price of Rs 630,” the brokerage has said.

The shares of Westlife Development were last trading at Rs 493.85 on the National Stock Exchange.

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PNC Infratech

PNC Infratech Ltd., founded in 1999, is a Mid Cap business in the Infrastructure sector with a market capitalization of Rs 6,298.04 crore.

PNC Infratech’s (PNC) performance was outstanding, with a better topline and margins than planned, thanks to operating leverage. The topline increased by 42 percent year over year to Rs 1644 crore, owing to an enhanced executable order book and optimal labour availability. Operating leverage drove the resultant margin to 14.1 percent. Despite higher taxation, PAT increased by 70% year over year to Rs 129.4 crore. This was due to improved operating performance, lower interest costs, and lower interest costs.

With a Stop target price of Rs 300/share, ICICI Securities’ BUY rating is unchanged. The company’s construction business is worth Rs 253/share (6.5x FY23E EV/EBITDA or 12x FY23 EPS), according to the brokerage.

Nirlon

Nirlon‘s results in FY21 was subdued. In FY21, revenues increased by 2.2 percent year on year to | 316.9 crore. It was Rs 77.1 crore in Q4FY21, down 6% year on year. Occupancy was down QoQ at 95.2 percent, compared to 97.5 percent in Q3, as one significant licensee moved out after their licence expired. EBITDA for FY21 increased by 2.7 percent year on year to | 237.2 crore. PAT increased 16.4% YoY to Rs127.4 crore in FY21, boosted by cheaper interest due to capitalization.

ICICI Securities advises buying at Rs.309 with a target price of Rs.400.

The stock maintains a BUY rating, with a NAV-based target price of Rs 400/share. We use a 9 percent cap rate and a 15% discount rate in our valuations to be careful. We believe the stock has a lot of value because the expected expansion isn’t accounted for in the CMP, as per the brokerage.

Bata India

In Q4FY21, Bata India’s revenue recovery rate (adjusted) was 80 percent, up from 74 percent in Q3FY21. Lower revenues from formal and fashion footwear continued to have an impact on gross margins year over year, however, gross margins improved QoQ. In Q4FY21, revenue declined 5% year on year to | 589.9 crore.

Bata changed their product line from formals and fashion to casuals, fitness, and essentials to match the present market condition.

“We believe Bata’s strong brand loyalty and pan-India retail reach will allow for faster revenue recovery and improved profitability.

Over FY20-23E, we forecast a 100 basis point increase in margin to 28.2 percent and a 450 basis point increase in RoCE to 32.7 percent. With a revised target price of | 1925 (48x FY23E EPS, previously TP: | 1680), we upgrade the stock from HOLD to BUY,” the brokerage said.

3 Stocks With Strong Support For Short Term Investors To Park funds

Disclaimer

Views mentioned herein are taken from the brokerage report of ICICI Securities. Neither the author, nor the brokerage nor Greynium Information Technologies would be responsible for losses incurred based on the article. Please consult a professional advisor. Investing in stock markets is risky.

Every month as per the latest government announcement, there can be some changes that come into force and need to be known by the country’s citizens for better financial planning:

1. IFSC code of Syndicate Bank:

IFSC code as well as cheque book of Syndicate Bank will become invalid from July 1.Likewise, the customers of Syndicate Bank have been asked to update IFSC code latest by June 30.”Dear customer, replace e-syndicate cheque book and cheques issued to the third party as validity for presentation expires on 30.06.2021,” Canara Bank said.

2. Small Savings scheme:

Post office small savings scheme may see a rate cut following the low interest rate regime. Amid the state assembly elections last quarter, the centre after reducing rates on small savings scheme rolled back the rate cut. Rate on small savings schemes are linked to yield on 10-year government securities and are revised quarter on quarter.

3. TDS rules to change from July:

There will be a verification of taxpayers done and those taxpayers who would not have filed ITR for the last two years shall be charged a higher TDS. The rule is for taxpayers for whom the TDS deduction value exceeds the threshold value of Rs. 50000. The rule is part of the new insertion made to the Finance Act, 2021.

4. SBI cash withdrawal and cheque leaflet changes:

The country’s leading lender has announced that with effect from July 1, 2021, the bank’s customers will be allowed just 4 withdrawals from bank ATM and branch. Beyond the free transaction, the lender shall charge Rs. 15 plus GST on each of the transaction.

Also, in respect of the cheque books, there shall be limit imposed i.e. customers can now make a use of as many as 10 cheque leaflets and beyond those they will be levied some charges. For cheque leaflets beyond 10, there will be levied Rs. 40 plus GST, while for 25 leafs there will be charged Rs. 75 plus GST. But no such charges have been announced for senior citizens.

5. LPG price change:

LPG or cooking gas cylinder prices are also revised month on month and it is likely that there can be a revision in Lpg cylinder price. The LPG is sourced and extracted from natural gas and crude.

6. Auto companies to raise vehicle prices:

In order to offset rising input costs, auto companies from Hero Motocorp to Maruti shall increase vehicle prices from July this year.

7. Corporation Bank and Andhra Bank customers to get new cheque books:

Corporation Bank and Andhra Bank has been merged with Union Bank and likewise the customers of the two banks have been asked to get a new cheque book with latest security features.

8. IDBI Bank charges revision for locker, savings account, cheque leaflets:

Beyond 20 leaflets, the bank will have to pay Rs. 5 per cheque after the free limit. But this is not levied if you maintain a IDBI ‘Sabka Saving Account’.

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