Reserve Bank of India – Press Releases
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Ajit Prasad Press Release: 2021-2022/1200 |
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Author: root
1 Auto Ancillaries And 1 Pharma Stock to Buy As Suggested By ICICI Securities
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NRB Bearings
NRB Bearings gets an add call from ICICI Securities with a target price of Rs 175. The current market price is Rs 139, with an upside potential of 24%.
Q2FY22 Results
- NRB had a good second quarter of fiscal year 22.
- Revenue for the quarter was Rs 256.6 crore, up 29.8% year over year and 27.4% quarter over quarter.
- EBIDTA was 47.3 crore, increasing 55.8% year on year and 76.9% quarter on quarter.
- PAT of Rs 24.4 crore, up 113.8 percent year on year.
Target and Valuation
“NRB has been making strides towards innovation and R&D. Going ahead, a recovery in auto, & boost in e vehicles sales will help it to grow. We maintain our BUY rating. We build in revenue, EBIDTA, PAT CAGR of 18.6%, 22.2%, 25.2% respectively. Target Price and Valuation: We value NRB at Rs 175 i.e. 18x P/E on FY23E EPS,” the brokerage has said.
Key triggers for future price-performance:
Manufacturing should benefit from the auto sector’s recovery. NRB is also concentrating on research and development to meet the needs of the e-vehicle market.
A new e-market is set to launch, with the goal of increasing reach and market share while reducing counterfeit goods.
Glenmark Pharmaceuticals
Glenmark Pharmaceuticals gets an add call from ICICI Securities with a target price of Rs 607. Glenmark Pharmaceuticals’ current market price is Rs 522.4.
Key concall highlights:
ICHNOS is expected to raise funds in FY23E.
2) Revenue CAGR of 10- 15 percent over 4-5 years, with a 19 percent margin
3) In FY22E, the company expects to submit 18-20 ANDAs.
4) Respiratory launches in the United States will begin in FY24E.
5) The PDUFA deadline for Ryaltris is January 22nd.
6) Annual capex guidance of Rs6.5-7 billion for the next 2-3 years.
Outlook and Valuation
Over FY21-FY23E, we expect revenue and PAT CAGRs of 9.6% and 8.2%, respectively, with a consistent EBITDA margin of 18-19%. The IPO of the API subsidiary was a success, and the majority of the revenues were used to pay off debt.
In FY22, out-licensing of new items will offer extra funds to enable the company meet its debt reduction target of Rs16 billion in FY22E.
“We remain positive on stock given strong India business and attractive valuation of 14.2xFY23E earnings. Reiterate ADD on the stock with a revised target price of Rs607/share based on 16xFY23E earnings,” the brokerage has said.
Disclaimer
The above stocks are picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
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Buy Praj Industries Ltd With A Target Price of Rs 472 Says Axis Securities
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Q2 FY22 results of the company
According to the consolidated performance for Q2 FY22, the company’s income from operations stood at Rs. 532.41 crore (Q1 FY22: Rs. 386.26 crore; Q2 FY21: Rs. 260.24 crore), PBT is at Rs. 46.77 crore for the period (Q1 FY22: Rs. 29.80 crore; Q2 FY21: Rs. 15.67 crore), PAT is at Rs. 33.34 crore (Q1 FY22: Rs. 22.20 crore; Q2 FY21: Rs. 11.39) and order intake during the quarter Rs. 745 crore (Q1 FY22: Rs. 661 crore; Q2 FY21: Rs. 405 crore).
According to the H1 FY22 – Consolidated results of the company, income from operations stood at Rs. 918.67 crore (H1 FY21: Rs. 389.79 crore), PBT is at Rs. 76.57 crore for the period (H1 FY21: Rs. 1.15 crore), PAT is at Rs. 55.54 crore (H1 FY21: Rs. 0.89 crore) and order intake Rs. 1406 crore (H1 FY21: Rs. 715 crore).
Buy Praj Industries Ltd with a target price of Rs 472
According to the brokerage “Praj is witnessing strong growth in its key segment BioEnergy in Domestic business, the overall demand-supply gap of Ethanol, increased interest in grain-based distilleries and decarbonisation impetus is auguring well for Praj along with development in other key verticals such as CPS, ZLD & High Purity gaining traction. Praj is a key beneficiary of multiple tailwinds provided by the bio-economic revolution, giving strong growth & revenue visibility for the next 3-5 years.”
Axis Securities has claimed in its research report that “We maintain our BUY with a revised target price of Rs 472 valuing the company at 35x (~20% discount to TTM PE of 45x) FY23 EPS, implying an upside of 33% from the CMP 355.”
Disclaimer
The above stock is picked from the brokerage report of Axis Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
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Are Peripheral Cities Scoring Above Big Cities In Terms Of Real Estate Investment?
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Space Crunch
As per recently released CII-ANAROCK Consumer Survey, 41% respondent property seekers may buy a second home for personal use, 65% respondents who work from home will opt for bigger houses, 68% prefer peripheral/suburban areas. This clearly indicates that specially the category of end-users is open to remain remotely far from the hustles of urban city just so they can grab a bigger space. The metro cities are not only densely populated with residential and commercial structures but has land prices fairly higher for a first-time buyer. Conclusively, for this set of buyer/investors peripheral cities are emerging to be the ideal choice for investment due to immense space and proximity to metro city.
Scope of appreciation
The peripheral locations when compared to the crowded urban cocoons offer a safe and long term investment plan. As the infrastructure surrounding the region develops overtime, and with scope of more land banks available there is chance of establishing bigger structures. Additionally, the rate of price appreciation gets better and better with time and each surrounding development.
As much as 58% of around 149,000 homes launched in 2020-21 are located in the peripheral areas of the top 7 property markets, showed data from Anarock research. The pandemic has had a significant impact in terms of project launches around this region. Since most of the properties in peripheral areas are in their primary stages of development, the lower price point not only makes it attractive but also makes the overall transaction a smart one. With homes shifting to peripheries, it is highly likely that large employers will occupy some space or open their smaller version of commercial centres/hubs to be in proximity for corporate professionals. The advent of such commercial spaces will be giving a major boost to the overall region’s stature and value.
Urban Layout & Architecture
The CII-ANAROCK Consumer Survey mentioned above also highlights that attractive pricing continues to rule the roost of must-haves, established developer credibility is the second-highest priority for 77% of the surveyed buyers. Project design and location also feature prominently on the wish list.
Location being the deal-maker/breaker for closing property transactions has gained a new nuance with peripheral cities coming into the picture. The newly developed areas are being equipped with elements of modern layout & architecture. This makes them an attractive proposition to consider not only for local but also global investors and NRI buyers. Post-pandemic with digitalization gaining better grounds in real estate homebuyers are keenly exploring the options in each category from property search to documentation and legal advice to down payments, each and every aspect is accessible via a single click.
Lastly, it is crystal clear that realtors with sufficient online presence will rule the roost going forward. Strong and strategized social media presence will be among the most effective technique in marketing your property on the right platforms.
Authored by Siddharth Maurya, Resource Specialist – Real Estate and Fund Management
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2 Intraday Cash Buy Stock Recommendations By Angel Broking
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Investment
oi-Roshni Agarwal
|
For traders who want to make short term gains there is intra-day trading and involves buying and selling of a scrip within a trading session i.e. on the same day. This is engaged in via online trading platforms. Say if you buy 1000 units of ‘X’ stock which opened the session at a price of Rs. 500 and then in few hours climbs to Rs. 550 then you can make quick profit of Rs. 50,000 in a single day of trade.
So, for day traders Angel Broking recommends buying 2 scrips as below:
Intraday Cash Buy-Raymond: Angel Broking has recommended buying the scrip of Raymond for intra-day trade in the price range of Rs. 509.5-513.4 for a price target of Rs. 532. The brokerage firm has suggested to place a stop loss of Rs. 502.4. So if you buy the scrip at the upper end of the suggested price band you can make a profit of over 3 percent in a day.
Intraday Cash Buy-Tata Motors: Another Intra-day cash buy by the brokerage is Tata Motors at Rs. 516.6-518.6 with a price target of Rs. 535 and stop loss at Rs. 508. Likewise for Tata Motors, day trader can earn a return of over 3 percent.
GoodReturns.in
Story first published: Tuesday, November 16, 2021, 11:21 [IST]
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2 Stocks To Buy From ICICI Direct For A Decent Upside of 21% In 1 Year
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Q2FY22 results of KNR Constructions Ltd
KNRCL is an ISO 9001:2000 Certified company that offers engineering, procurement, and construction services in a number of fast-growing sectors, including roads and highways, and irrigation. According to the brokerage the company has reported a 24.5% revenue CAGR over FY16-21 and has consistently delivered industry-leading operating margin of ~20% throughout the past three years.
The brokerage has said that KNR’s “Standalone revenue improved 25.7% YoY to Rs 755.6 crore, largely backed by its healthy order book position and pick-up in execution post second wave disruptions. On QoQ basis, topline improved by 2.1%. The company delivered industry leading EBITDA margin and was at 22.2% (up 154 bps YoY). Effectively, EBITDA at Rs 167.5 crore, was up 35.1% YoY and PAT improved 91.1% YoY to Rs 59.4 crore.”
Key triggers for future price performance of KNR Constructions Ltd according to the brokerage
- KNR is likely to be one of the prime beneficiaries of thriving roads and water segments (Jal Jeevan Mission).
- Strong order book position, receipt of appointed date in most of its projects, and execution pick-up to translate into 18.8% topline CAGR over FY21-23E.
- Price escalation clause in roads agreement, and higher margins at irrigation projects likely to keep operating margin at an elevated level.
- Asset-light strategy via monetisation to bring-in incremental cash flows.
Buy KNR Constructions Ltd with a target price of Rs 340
The brokerage in its research report has claimed that “The company is a focused road based EPC player that enjoys a strong execution track record with the reputation of completing projects on time/ahead of the schedule. KNR also enjoys a very healthy balance sheet and a strong return ratio. With net debt free position at standalone levels (as of date), equity commitment is likely to be supported by internal cash generation, HAM monetisation and irrigation dues recovery and should not entail new debt at standalone levels. Hence, we maintain our BUY recommendation on the stock with a SoTP based revised target price of Rs 340/share. We value its core EPC business at Rs 317/share (20x FY23E P/E).”
Q2FY22 results of Ashok Leyland
Ashok Leyland, the Hinduja group’s cornerstone, is India’s second-largest commercial vehicle manufacturer, as well as the world’s fourth-largest bus manufacturer and 14th-largest truck manufacturer. According to the brokerage, the company’s “Standalone operating income came in at Rs 4,458 crore (up 51% QoQ). Total volumes for the quarter were at 27,543 units, up 53% sequentially with ASPs for the quarter coming in at Rs 16.2 lakh/unit, down 1.3% QoQ, M&HCV: LCV mix remained broadly unchanged QoQ at 50:50 and EBITDA for the quarter came in at Rs 135 crore with corresponding margins at 3.0%. Gross margin declined sharply 260 bps QoQ but operating leverage benefits limited the blended margin decline.”
According to the Q2FY22 results of Ashok Leyland the consequent reported loss after tax was at Rs 83 crore, says ICICI Direct.
Key triggers for future price performance of Ashok Leyland according to ICICI Direct
- Set to be an outsized beneficiary of impending M&HCV revival riding on government’s infra push and pick-up in core industrial activity (mining, construction, road building). LCV to continue to gain from last mile mobility.
- Blended ASPs to rise amid exports push in line with the global top-10 vision.
- We build 23% volume & 30% net sales CAGR over FY21-24E; margins seen rising to 10.5% levels by FY24E on the back of operating leverage benefits and cost, cash, CAPEX actions under Project Reset.
Buy Ashok Leyland with a target price of Rs 175
The brokerage has said, “ALL’s share price has grown at ~13% CAGR in last five years (from ~Rs 80 levels in November 2016), outperforming Nifty Auto index.”
The company’s “board approved the sale of EV business to its subsidiary i.e. Switch Mobility on a slump sale basis & transfer of e-MaaS (E-Mobility as A Service) business to Ohm Global Mobility Pvt Ltd, India, on slump sale basis, to be eventually housed under switch mobility with a majority stake” says ICICI Direct.
ICICI Direct has claimed in its research report that “We retain BUY rating given CV revival play & structural margin tailwinds. We value ALL at revised SOTP based target price of Rs 175 (15x CV FY23-24E avg. EV/EBITDA, 3x P/BV for investments; earlier TP Rs 160).”
Disclaimer
The above stocks are picked from the brokerage report of ICICI Direct. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
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Sharekhan Recommends This Stock To Buy For 21.3% Upside, In 1 Year
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Target Price
The Current Market Price (CMP) of KEI Industries Ltd is Rs. 989. The brokerage firm has estimated a Target Price for the stock at Rs. 1200. Hence the stock is expected to give a 21.3% return, in a Target Period of 12 months.
| Stock Outlook | |
|---|---|
| Current Market Price (CMP) | Rs. 989 |
| Target Price | Rs. 1200 |
| 1 year return | 21.30% |
Company performance
KEI Industries reports in-line standalone revenues at Rs. 1353 crore (up 30.5% y-o-y) which was led by strong growth in cables revenues (91% of revenues, up 42% y-o-y). With cables, LT (35% revenue share grew 22% y-o-y) followed by housing wires (29%, up 74% y-o-y). The retail segment (51% revenue share) increased by 39% y-o-y, while sales through dealer/distribution market increased 67% y-o-y to Rs. 580 crore. Additionally, lower interest cost (-34% y-o-y, led by cash purchases and reduction of acceptances) led to a 35% y-o-y rise in net profit at Rs. 92 crore.
Comments by Sharekhan
Sharekhan said, “We retain Buy rating KEI Industries Limited (KEI) with a revised PT of Rs. 1200, factoring in upwardly revised estimates and reasonable valuation.” As a positive outlook, the brokerage firm has identified two factors, “Reduction in finance cost led by a reduction in net debt including acceptances. Revenues from stainless steel wires and EHV sales grew 58% y-o-y and 53% y-o-y.”
About the company
KEI is a leading Indian W&C industry and an EPC player in the power T&D segment. The company services retail and institutional customers and caters to both private and public sector clients. Currently, KEI manufactures and markets power cables and addresses cabling requirements of a wide spectrum of sectors such as power, oil refineries, railways, automobiles, cement, steel, and real estate, etc.
Disclaimer
The above stock has been picked from the brokerage report of Sharekhan. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
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Report, BFSI News, ET BFSI
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Despite the overall increase in the formalisation of the economy in the past five-six years, the key component of an informal economy — cash in circulation (CIC) as a percentage of GDP — has continued to rise year after year, barring in the year of note ban in 2016 when it fell to 8.7 per cent, according to a report. According to the report by SBI Research, almost 80 per cent of the economy has been formalised in the past five years with every aspect of the non-cash component of the economy including agri credit, gaining traction.
In a detailed report on Monday, SBI Research said that after dipping to 8.7 per cent of GDP in 2016 (after the note-ban), cash in circulation (CIC) as a percentage of GDP has climbed again to 13.1 per cent so far this fiscal. It is only marginally down from the peak of 14.5 per cent in FY21, which could be because of the pandemic-driven sense of insecurity and uncertainties.
During FY08-FY10, when the economy was on a scorching growth rate, sniffing at almost double-digits growth, the CIC trended at 12.1, 12.5 and 12.4 per cent, respectively. The same trend continued with minor variations in the next five years also peaking at 12.4 per cent in FY11 and falling to 11.4 per cent in FY15, according to the SBI report pencilled by Soumya Kanti Ghosh, its group chief economic adviser.
Ghosh attributes the high 14.5 per cent CIC in FY21 to the collapse of the economy due to the pandemic, wherein the GDP reported the worst contraction of 7.3 per cent.
If the circumstances were normal, nominal GDP growth in FY21 and FY22 would have been much higher and as a result, CIC would also have followed the trend as witnessed pre-note ban.
According to him, without the pandemic-induced GDP collapse, the CIC-GDP ratio would have been at 12.7 per cent as against 12.4 per cent in FY11 as because of the pandemic, people might have held as much as Rs 3.3 lakh crore in cash as a precaution.
Coming to digital transactions, 3.5 billion transactions worth Rs 6.3 lakh crore were recorded through UPI in October 2021, which is 100 per cent more than the same period last month and in terms of transaction value, it is 103 per cent more than October 2020.
Data also show that UPI transactions have jumped 69 times since 2017, while debit card transactions have stagnated indicating people preference and shift to UPI.
UPI transactions have jumped 69 times in the past four years — from Rs 1,700 crore in 2017 to Rs 15,100 crore in 2018 to Rs 29,900 crore in 2019, to Rs 57,100 crore in 2020 to Rs 1,17,100 crore so far in 2021.
Similarly, credit card spends rose manifold between 2012, when it was only Rs 1,500 crore, and 2018 when it touched Rs 10,100 crore. It then steadily added 30 per cent more in two years to cross Rs 13,000 crore and peaked at Rs 13,500 crore in 2020, according to the report.
It added that the credit card spends are on course to set a record this year as already YTD (year-to-date), it has reached Rs 13,300 crore, according to the report.
Again, debit card spends also continued to gain traction with 2012 seeing Rs 12,100 crore of transactions, which climbed to Rs 38,800 crore in 2016 but declined steeply in 2017 to Rs 15,600 crore. It more that doubled the next year to Rs 32,700 crore and peaked at Rs 56,300 crore in 2019 and again steeply fell to Rs 13,800 crore in 2020 and continued to head southwards in 2021 at Rs 9,700 crore, the report said.
Ghosh also noted that tax as percentage of GDP has also jumped since FY16 but declined after FY19, reflecting the changes in the Budget of 2019. The tax-GDP ratio has jumped in the pandemic year again reflecting formalisation efforts.
The tax-GDP ratio jumped from 10.5 per cent in FY16 to 11 per cent in FY19 but retreated since then, as the exemption limit was raised to Rs 5 lakh in the Budget FY20.
On the macrofront, the economy formalised much larger: The share of the informal sector GVA to total GVA for FY18 stood at 52.4 per cent. Employing this methodology (except for agricultrue and allied activities), the informal economy is possibly only around 15-20 per cent of the formal GDP, according to the report.
Even agriculture formalised if the numbers of Kisan Credit Cards (KCCs) are any indication. In the past three-four years, the per-card outstanding has increased from Rs 96,578 in FY18 to Rs 1,67,416 in FY22, an increase of Rs 70,838, that translates into agri credit formalisation at Rs 4.6 lakh crore and there are 6.5 crore KCCs.
According to the GST portal, between August 2018 and March 2021, the number of new MSMEs (micro, small and medium enterprises) incorporated stood at 499.4 lakh and came under GST.
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RBI officers, staff chalk out agitation plan to press wage revision
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Officers and employees of the Reserve Bank of India are on an agitational path from today (Tuesday) after their ‘several attempts’ to revive talks on long-pending issue of wage settlement have failed repeatedly.
“We have no option but to protest the inexplicable dilly-dallying on a highly sensitive matter such as wage revision pending for last four years and more,” said Samir Ghosh, Arun Samaddar, Gavin Coelho, and Jeet Pathak, who represent employees, workers and officers’ unions under the United Forum of Reserve Bank Officers and Employees.
‘Wait in vain’
The United Forum told the constituents in a circular that “we felt very strongly to embark on protest earlier, but in deference to the wishes of some well-meaning friends, collectively decided to hold on till this week. The Governor was reportedly scheduled to hold talks with the Human Resources Management Department and we were expecting a solution to emerge.”
“Our wait is in vain, unfortunately,” the circular said. Having exhausted all avenues of peaceful solution, it has been decided that delegations of joint office-bearers/executive committee meet with Regional Directors of the RBI during lunch recess today (Tuesday) demanding immediate resumption of the process of finalisation of wage talks.
Mass leave
Lunch-time gate demonstrations will be launched on Thursday and officers and employees will wear a badge during November 23 to 26. Lunch-time mass deputations will be taken out to the offices of the Regional Directors/Officers-in-charge on November 26.
All staff coming under the current wage settlement will go on mass casual leave on November 30, the circular said.
A senior retired RBI official said that although employees and staff have the goodwill of the RBI’s name, they have had to struggle at different times for either fair and respectable salary revisions or other service conditions.
Pensioners suffer worst
“Since September 2008, these struggles have been more marked, frequent and regrettable, as the independence of the Bank even in staff matters had been surrendered to outside authority,” he said on condition of anonymity.
It is an ironic coincidence that on a day the Prime Minister dedicated some of the functions of the RBI to the nation, the staff has had to announce an agitational programme for getting a fair and honourable wage settlement.
Pensioners and family pensioners have been worse sufferers since counterparts in the government institutions have benefited far more, the retired official said.
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Buy ONGC With A Target Price of Rs 208 As Suggested By HDFC Securities
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Q2FY22 results of ONGC
According to the brokerage, ONGC’s “Revenue for Q2FY22 stood at INR 244bn (+44% YoY, +6% QoQ). EBITDA was at INR 132bn (+57% YoY, +9% QoQ) due to lower opex. APAT in Q2 was INR 129bn, up 5x YoY, 3x QoQ, mainly on account of lower tax regime adopted by the company.”
The company’s “Q2 crude oil realisation was USD 71.1/bbl (+72% YoY, +6% QoQ), while gas realisation was USD 1.9/mmbtu (-25% YoY, -1% QoQ). Oil sales volume was 4.3mmt (-3%YoY, -2%QoQ). Gas sales volume was 4bcm (-7% YoY, +4% QoQ)” reported the brokerage.
HDFC Securities has said in its research report that according to the takeaways of the management’s conference call “Capex guided at INR 290-320bn for FY22/FY23E. ONGC’s FY22 targeted O+OEG production delayed by a year due to COVID-related supply chain issues, unplanned power shutdowns at Ratna R series fields due to monsoons, disruption at offshore and onshore projects due to cyclone Tauktae, and customer offtake issues. KG 98/2 production is currently at 0.7mmscmd and is expected to improve to 1.8mmscmd by Dec-21. Delay in sourcing equipment from Singapore/Malaysia, where supply chain operations remain affected by COVID, could impact the KG 98/2 output target.”
Buy ONGC with a target price of Rs 208
The brokerage has claimed that “We maintain BUY on ONGC with a target price of INR 208, based on an increase in crude price realisation and improvement in domestic gas price realisation (to USD 2.9/mmbtu). We expect oil price realisation to increase to USD 69/bbl in FY22E and USD 71/bbl in FY23E vs. USD 44/bbl in FY21, given the expected global economic rebound, post COVID. Q2FY22 revenue was 5% below our estimate, owing to a lower-than-expected crude oil price realisation of USD 71.1/bbl (HSIE USD 72.5/bbl) and below expectation crude oil sales.”
In its research report, HDFC Securities has clarified that “Q2 EBITDA was 3% below our estimate, though APAT was 2x above estimate, owing to lower-than-expected exploration cost, lower-than-expected interest cost, higher-than-expected other income, and lower tax expenses. We value ONGC’s standalone business at INR 173 and its investments at INR 35. The stock is currently trading at 4x FY23E EPS.”
Disclaimer
The stock is picked from the brokerage report of HDFC Securities. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.
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