Category: Personal Finance

Happiest Minds Technologies

With a ROE of 55.74 percent, the company has a solid track record. In the last three years, the company has had an average profit growth of 143.18 percent. The effective cash conversion ratio of the corporation is 92.84. With a 14.48 times operational leverage, the company is in good shape.

From Rs 344.05 on December 31, 2020, to Rs 1145 on July 7, 2021, the stock has increased by 253 percent. It has a 52-week high of Rs 1247. Happiest Minds Tech. has a D/E ratio of 0.31, indicating that the company has a low debt-to-capital ratio. The company’s year dividend is Rs 3 with a yield of 0.26 percent.

Brightcom Group Ltd

Brightcom Group Ltd. was founded in 1999 and is based in the United Kingdom. The current share price is 28.75. It currently has a market capitalization of Rs 1557.82 crore. The company reported gross sales of Rs. 4665.88 crores and total income of Rs. 4813.33 crores in the most recent quarter.

Brightcom Group’s PE ratio is 178.19, which is excessive and expensive in comparison. Brightcom Group’s current year dividend is Rs 0 with a yield of 0.18 percent. Brightcom Group recorded revenue increase of 1.75 percent, which is low when compared to its overall performance and growth.

Newgen Software Technologies

Newgen Software Technologies rose from Rs 269.10 on December 31, 2020, to Rs 734.30 on July 5, 2021, the stock has grown 155 percent to Rs 696. It has a 52-week high of Rs 755.

The company Newgen Software Technologies Ltd. was founded in 1992. The current share price is 698.4. It currently has a market capitalization of Rs 4878.36 crore. The company reported gross sales of Rs. 6103.95 crore and total income of Rs. 6247.04 crore in the most recent quarter.

Newgen Software Tech’s PE ratio is 42.92, which is excessive and overvalued in comparison. The current ratio of Newgen Software Tech is 2.25. Newgen Software Tech has a D/E ratio of 0.14, indicating that the company has a low debt-to-capital ratio.

Subex

Subex stock surged from 28.45 on December 31, 2020, to Rs 70.60 on July 7, 2021, the stock has increased by 144 percent. It has a 52-week high of Rs 69.

In the year 1994, Subex Ltd. was founded. The current share price is 71.85. It currently has a market capitalization of Rs 3748.56 crore. The company reported gross sales of Rs. 754.4 crore and total income of Rs. 758.9 crore in the most recent quarter. Subex’s return on investment (ROI) is 4.64 percent, which is a poor indicator of future performance. Subex’s current year dividend is Rs 0.75, with a yield of 1.12 percent.

eClerx Services

The company eClerx Services Ltd. was founded in the year 2000. Its share price currently is 2080.75. The D/E ratio of eClerx Services is 0, indicating that the company has a low debt-to-capital ratio. It currently has a market capitalization of Rs 7257.03 crore. The company reported gross sales of Rs. 11201.67 crores and total income of Rs. 11741.68 crores in the most recent quarter. eClerx Services’ current year dividend is Rs 1 with a yield of 0.05 percent.

The ROA of eClerx Services is 8.34 percent, which is a poor indicator of future success; higher figures are always preferable. The return on equity ratio illustrates how much profit is generated by each rupee of common stockholders’ equity. The ROE of eClerx Services is 10.40% (higher is better).

5 IT Multibagger Stocks With Returns Up to 100-250% In 2021

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 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 only for educational purpose.

Kotak Banking & PSU Debt Fund Direct-Growth

This fund was launched in January 2013 by the fund house Kotak Mahindra Mutual Fund. The 1-year returns for Kotak Banking and PSU Debt Fund Direct-Growth are 5.53 per cent. Since its inception, it has generated an average annual return of 8.90 per cent according to Value Research, which is unquestionably greater than the current interest rates of fixed deposits offered by leading banks. This fund has been rated 4-star by Value Research, which indicates the stability of the fund in terms of generating returns.

Union Bank of India, Reserve Bank of India, Rural Electrification Corpn. Ltd., Bank Of Baroda, and National Bank For Agriculture & Rural Development are among the fund’s top 5 holdings. As of 6 July 2021, the latest NAV of the fund is Rs 52.38 and the current asset under management (AUM) of the fund is Rs 9,714 Cr. One can start investing in this fund with a minimum SIP of Rs 1000 with no exit load.

IDFC Banking & PSU Debt Fund Direct-Growth

This banking and PSU mutual fund of IDFC Mutual Fund which was launched in February 2013 has also performed well in the last 3-5 years. The 1-year returns of the IDFC Banking & PSU Debt Fund Direct-Growth are 5.07 per cent. According to Value Research data, it has generated an average yearly return of 8.53 per cent since its inception. Axis Bank Ltd., Hindustan Petroleum Corpn. Ltd., GOI, Small Industries Devp. Bank of India Ltd. and National Highways Authority of India Ltd. are among the fund’s top 5 holdings.

This fund has been rated 5-star by Value Research and has an expense ratio of 0.30%. As of July 6, 2021 the latest NAV of the fund is Rs 19.78 and the current asset under management (AUM) of the fund is Rs 18,547 Cr. By making a minimum contribution of Rs 1000, one can start SIP in this fund with no exit load.

Nippon India Banking & PSU Fund

Nippon India Mutual Fund introduced this banking and PSU direct growth fund in May 2015. Nippon India Banking & PSU Debt Fund Direct-Growth returns are 5.26 per cent over the last 1-year. Since its inception, it has had an average yearly return of 8.65% and has been rated 5-star by Value Research.

National Bank For Agriculture & Rural Development, GOI, Small Industries Development Bank of India Ltd., Rural Electrification Corpn. Ltd., and National Thermal Power Corp. Ltd. are among the fund’s top 5 holdings. As of July 6, 2021 the latest NAV of the fund is Rs 16.65 and the current asset under management (AUM) of the fund is Rs 6,364 Cr. SIP in this fund with no exit load can be started with a minimum contribution of Rs 100.

Axis Banking & PSU Fund Direct-Growth

Axis Banking & PSU Debt Direct Plan has a 1-year growth rate of 4.83 per cent. According to Value Research data, it has provided an average yearly return of 8.59 per cent since its inception. This fund was launched in January 2013 by Axis Mutual Fund. National Bank For Agriculture & Rural Development, Food Corporation of India, Small Industries Devp. Bank of India Ltd., Hindustan Petroleum Corpn. Ltd., and Indian Oil Corpn. Ltd. are among the fund’s top 5 holdings.

Value Research has given the fund a four-star rating, and it has an expense ratio of 0.31 per cent. The fund has its debt allocation across sovereign, energy, financial, and FMCG sectors. As of July 6, 2021 the fund has a NAV of Rs 2123.43 and the current asset under management (AUM) of the fund is Rs 17,077 Cr. This fund has no exit load and one can start SIP in this fund with a minimum monthly contribution of Rs 1000.

Best Performing Banking & PSU Funds In 2021

Here are the 4 best banking and PSU funds in 2021 based on past returns and ratings.

Should you invest?

According to the data of Value Research, banking and PSU funds have generated an average SIP-return of 7.80% in the last 5 years. If we look at the last 3 to 5 years returns of banking and PSU funds, most of the funds have generated more than 8% returns. These returns are much higher than the prevailing interest rates of fixed deposits of leading commercial and private sector banks. On the other side, corporate fixed deposits may give you higher returns than banking and PSU funds. But corporate fixed deposits are not suggested to invest for risk-averse investors as they are not insured by DICGC.

Investing in debt and PSU funds are not recommended for senior citizens as the returns are market-based. As a result, they can invest in special fixed deposit schemes or fixed deposits of small finance banks as they are insured by DICGC. As a final conclusion and not a suggestion to invest, investors who have a mid-term goal and low-risk profiles can invest in debt and PSU funds for higher market-based average returns than fixed deposits, but investors who do not want to welcome market-based returns in their portfolio can invest in fixed deposits of small finance banks for higher returns than fixed deposits of commercial and private sector banks.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in

1. IDFC Sterling Value Fund – Regular Plan – Growth:

Introduced in the year 2013, this fund has the benchmark as Nifty 50. The fund’s expense ratio for the direct plan is 0.93 percent. Majorly the fund is invested into small cap stocks. Exit load for the scheme has been decided at 1 percent in case of early redemption.

Investors can start their value fund journey by starting a SIP for as less as Rs. 100 and for lump sum investment they will need to put out Rs. 5000.

Top holdings of the fund include Deepak Nitrite,JK Cement, JK Cement, Gujarat Gas, KEC International etc.

2. UTI Value Opportunities fund-Direct Plan-Growth:

This is another an old scheme wherein investors can think to add up their wealth. The fund over the 1-year tenure has offered a return of 58.6% better than the benchmark. Nonetheless, the expense ratio of the fund even for the direct plan is on the higher side at over 1 percent.

With most of the exposure diverted to the large caps, mutual fund risk-o-meter has classified the fund to be moderately risky. Further within the large cap space, the fund is more inclined towards the financial space and some of the fund’s top holdings comprise ICICI Bank, HDFC Bank, Infosys, Axis Bank, Bharti Airtel etc.

SIP in the fund can be started for as less as Rs. 500 while for lump sum investment, sum of Rs. 5000 shall be put into the scheme.

3. ICICI Prudential Value Discovery Fund:

This value fund invests in a mix of equities and government securities being more titled towards the large cap. Over a 1-year tenure, the scheme has underperformed the benchmark with return of 55%. SIP here again can be started for as less as Rs. 100. The value equity fund charges 1.29% as expense ratio i.e. near to what value funds charge.

Investment in the fund have been doubled in every 2 years. Another plus point of the fund is that it has been able to trim losses by a significant amount in case of falling markets.

The fund is majorly invested across energy, technology, financial, healthcare and auto sectors and likewise its 5-top holdings are Sun Pharmaceutical, Mahindra & Mahindra Ltd., Infosys, Bharti Airtel., National Thermal Power Corp. Ltd..

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Disclaimer:

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in

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ICICI Bank

Motilal Oswal has a “buy” call on the stock of ICICI Bank. The firm believes that the bank continues to see strong growth in retail deposits and has succeeded in building a robust liability franchise over the past few years.

“It has one of the lowest funding costs (with cost of deposits declining to 4%) among the private banks; this has enabled the company to underwrite a profitable business without taking undue balance sheet risks, thus supporting the margin further,” Motilal Oswal Institutional Equities has said.

The other reason to be buying the stock of ICICI Bank according to the firm is the retail mix which remains healthy, with the CASA ratio at 46.3%, retail contribution-to-fees at 78%, and the loan mix increasing to 67%.

“ICICI Bank appears firmly placed to deliver healthy sustainable growth, led by focus on the core operating performance. We estimate RoA/RoE of 1.8%/15.2% for FY23E. Adjusted for subsidiaries, the standalone bank trades at 1.9x FY23E ABV,” Motilal Oswal Institutional Equities has said.

HDFC Bank

Another largecap stock where Motilal Oswal Institutional Equities has a “buy” is the stock of HDFC Bank.

“HDFC Bank has shown robust traction in its corporate portfolio, which compensated for the softness in retail lending. Loan growth over FY21 was, thus, largely led by the Corporate segment (53% of total loans). The management of HDFC Bank has shown robust traction in its corporate portfolio, which compensated for the softness in retail lending. Loan growth over FY21 was, thus, largely led by the Corporate segment (53% of total loans),” the broking firm has said.

According to Motilal Oswal Institutional Equities a strong liability franchise would support margins.

“Therefore, the bank is well placed to gain incremental market share on both the asset and liability fronts. We expect RoA/RoE of 2.1%/17.8% for FY23E. The bank trades at 3.1x FY23E ABV,” the broking firm has said.

State Bank of India

SBI is another large bluechip banking stock, where Motilal Oswal Institutional Equities has a “buy” call. According to the firm, the bank is well placed to gain incremental market share on both the asset and liability fronts.

“State Bank of India has one of the best liability franchises (Current Accounts Savings Account mix: 46%). As a result, it is poised to manage yield pressure, while a reduction in the interest rate on deposits would continue to support margins (to a large extent). Subsidiaries – SBI Mutual Fund, SBI Life, and SBI CARD – have exhibited robust performances over the last few years, which could result in value unlocking. We estimate FY23E RoA/RoE of 0.8%/14.9%. Subsidiaries account for ~35% of the total valuation. Adjusted for subsidiaries, the standalone bank trades at 0.8x FY23E ABV,” Motilal Oswal Institutional Equities has said.

Federal Bank

Motilal Oswal Institutional Equities has also recommended to buy the shares of Federal Bank.

“The has been taking a cautious approach in lending to high-rated corporates. The mix of retail loans improved to ~33% in FY21 from 28.4% in FY19. Although business growth remains subdued, we expect a gradual pickup in loan growth, resulting in improved overall operating performance. We expect RoA/RoE of 1.1%/14% by FY23E. The stock currently trades at 1.0x FY23E ABV,” the brokerage has noted.

Disclaimer

All of the above 4 stocks are picked from the research report of Motilal Oswal. 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.

1. Vodafone Idea:

The beleaguered telecom service provider has been downgraded by both ICICI Securities and Motilal Oswal. ICICI Securities has given a ‘Sell’ call on the scrip and sees the stock to hit a target price of Rs. 5.

Cash problem persist with the telecom service provider said ICICI Securities in its report:

“Vodafone Idea’s (VIL) Q4FY21 reported revenues were down 11.8% QoQ to | 9,607.6 crore, out of which 9.6% decline was due to removal of IUC. On a reported basis, ARPU fell ~11.6% QoQ to | 107. Reported EBITDA margins were up 660 bps QoQ to 45.9%, aided by one-off related to IT and network costs to the tune of | 450 crore. Adjusted for the same, margins were at 41.2%”, added the report.

On the valuation front, the company’s research report said VIL remains the weakest private telco. Further the report added the company’s survival is only possible on quick quick capital infusion and tariff hike/floor tariff implementation. This is indeed required become of the upcoming payment deadlines etc. We maintain SELL rating with a DCF based target price of Rs. 5/share (vs. Rs. 6/share, earlier). We will monitor triggers like fund raise and tariff hike, before changing stance.

2. Shoppers Stop:

For the retail company headquartered at Mumbai, HDFC Securities has given a ‘Sell’ recommendation and sees the stock to weaken in price by a sharp 27% from the last traded price to hit a target price of Rs. 180.

Mall Bound Shoppers Stop saw the most impact

HDFC Securities in its report said with the company’s major presence in malls, the retail stores of Shoppers Stop were the worst affected amid the lockdown due to the second wave. However, 4Q recovery (95% of baseline sales) has been better than expected (HSIE: -87.5%). “Gross margin improved sequentially (GAAP: 40.9% vs HSIE: 37.9%). Absolute operating cost structure was in line. We continue to remain circumspect on the longevity of the business as cost arbitrage between pure-play department stores and online platforms continues to shrink with each passing year, said the company.”

” We meaningfully cut our FY22 EBITDA estimates to account for the second wave impact. FY23 EBITDA estimates remain largely unchanged. Maintain SELL recommendation with a DCF-based TP of INR 180/sh (implying 9x FY23 EV/EBITDA).”

3. Spicejet:

The airline company was seen trading firm in the previous day’s trade as the civil aviation allowed airlines to operate at increased capacity. Nonetheless the no frill air carrier today traded again lower by a margin.

Rising fuel and liquidity crisis a major problem with the airline

BOB Capital Markets sees a liquidity crisis for Spicejet. Also another dampener is the rising fuel cost.

The brokerage company said the company’s Q4FY21 revenue and it logged a net loss of Rs. 2.4 billion, translating to negative EPS of Rs 3.9. We remain cautious due to the weak balance sheet (negative net worth); as well as growing competition amid rising fuel cost. Maintain SELL with a revised TP of Rs 60 (vs. Rs 70) as we cut estimates owing to the pandemic-linked crisis and higher fuel costs.

Disclaimer:

All of the above 3 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. I

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7 Stocks Enter Largecap Category After AMFI Reclassification

Large cap funds are ones that invest a larger percentage of their assets in firms with a high market capitalization. Three characteristics that are frequently used to define a large-cap corporation are trustworthy, reputable, and strong.

NMDC, Apollo Hospitals, Cholamandalam Investment and Finance, SAIL, Bank of Baroda, Honeywell Automation and Adani Total Gas t all went from midcap to largecap territory.

PI Industries, HPCL, Indraprastha Gas, Petronet LNG, and Hindustan Aeronautics were replaced by these stocks.

Stocks that entered Midcap Category After AMFI Reclassification

Mid-cap funds are equity mutual funds that invest in the stock of mid-sized businesses. Companies that are rated from 101 to 250 depending on their market capitalisation are classified as mid cap companies, according to the rules.

Midcap stocks now have an average market capitalisation of Rs 11,819 crore, up from Rs 8,389 crore during the December-January reclassification.

Indian Railway Finance, Macrotech Developers, Sona BLW Precision Forgings and Indigo Paints are the new entries of the mid-cap segment.

Tata Elxsi, APL Apollo Tubes, Kajaria Ceramics, Bank of Maharashtra, and Apollo Tyres are among the firms that have been reclassified from small-cap to mid-cap.

Stocks that enter smallcap category After AMFI Reclassification

Small cap funds are equity funds that invest at least 65 percent of their assets in small size businesses’ stock and stock-related investments. According to SEBI regulations, small cap businesses are those with a market value of less than 250 companies market cap.

Some of the stocks that have been reclassified as small-caps from midcaps include Metropolis Healthcare, Prestige Estate Projects, ITI, Mahanagar Gas, Procter & Gamble Health, Credit Access Grameen, Central Bank of India, SJVN, Akzo Nobel, IIFL Wealth Management, and Motilal Oswal Financial Services.

PGIM India Midcap Opportunities Fund Direct-Growth

This fund was launched in November 2013 by PGIM Mutual Fund. PGIM India Midcap Opportunities Fund Direct-Growth returns in the last year were 100.20 per cent, according to Value Research. It has returned an average of 20.17 per cent per year since its inception. The financial, engineering, services, chemicals, and technology sectors account for the majority of the fund’s asset allocation.

ICICI Bank Ltd., NIIT Technologies Ltd., MindTree Ltd., Aarti Industries Ltd., and Federal Bank Ltd. are the fund’s top five holdings. If compared to other mid-cap funds, the fund has an expense ratio of 0.41 per cent, which is quite reasonable. As of 06 July 2021, the NAV of the fund is Rs 40.38 and currently, the fund has an asset under management (AUM) of Rs 1,615 Cr. One can start SIP in this fund with a minimum monthly contribution of Rs 1000. An exit load of 0.5% would be charged if units in excess of 10% of the deposit redeemed within 90 days of the initial date.

Axis Midcap Fund Direct-Growth

In July 2013, this fund was initiated by Axis Mutual Fund. Axis Midcap Direct Plan-Growth has delivered decent returns of 63.25 per cent in the last 1-year. It has returned an average of 20.75 per cent per year since its inception, according to the data of Value Research. The fund has an asset allocation across the Financial, Chemicals, Technology, Consumer Durables, and Services sectors. Cholamandalam Investment & Finance Co. Ltd., Voltas Ltd., Astral Poly Technik Ltd., PI Industries Ltd., and NIIT Technologies Ltd. are the fund’s top five holdings.

The fund’s expense ratio is 0.52 per cent, which is significantly lower than other funds in the same category. The fund’s NAV is Rs 68.55 as of 06 July 2021, and it currently has an asset under management (AUM) of Rs 11,834 Cr. With a minimum monthly investment of Rs 500, one can start a SIP in this fund. If units worth more than 10% of the investment are redeemed within one year of the initial date, an exit load of 1% would be levied by the fund.

Kotak Emerging Equity Fund Direct-Growth

This mid-cap fund was launched by the fund house Kotak Mutual Fund in January 2013. The 1-year returns for Kotak Emerging Equity Fund Direct-Growth are 81.42 per cent. According to Value Research data, it has provided an average yearly return of 21.28 per cent since its inception. The fund has a 0.61 per cent expense ratio and has its asset allocation across the Chemicals, Engineering, Financial, Construction, and Healthcare sectors.

Supreme Industries Ltd., Coromandel International Ltd., Persistent Systems Ltd., The Ramco Cements Ltd., and FAG Bearings India Ltd. are the fund’s top five holdings. Currently, the fund has an Asset Under Management (AUM) of Rs 12,463 Cr and the latest NAV as of July 6, 2021 is Rs 72.56. A SIP in this fund can be started with a minimum monthly investment of Rs 1000. The fund would charge an exit load of 1% if units worth more than 10% of the investment are redeemed within one year of the inception date.

Edelweiss Midcap Fund Direct Plan-Growth

This mid-cap fund was launched by the fund house Edelweiss Mutual Fund in January 2013. According to the data of Value Research, Edelweiss Mid Cap Direct Plan-Growth has generated a return of 86.62% in the last 1-year. It has returned an average of 22.02 per cent per year since its inception. Shriram Transport Finance Co. Ltd., Mphasis Ltd., Jindal Steel & Power Ltd., Odisha Cement Ltd., and JK Cement Ltd. are the fund’s top five holdings.

The fund has a 0.69 per cent expense ratio and a current NAV of Rs 50.31 as of July 6, 2021. The fund has its equity allocation across the Financial, Construction, Chemicals, Engineering, Healthcare sectors. The fund currently has an asset under management (AUM) of Rs 1,359 Cr. With Rs 500 one can start SIP in this fund and the fund would charge an exit load of 1% if units are redeemed within 1 year of inception.

Best Performing Equity Mid Cap Funds In 2021

Here are the best-performing equity mid-cap funds in 2021 based on rating and historical returns.

Should you invest?

For better knowledge for our readers by keeping their financial planning in mind, we always provide a clear view of the average returns of mutual funds. According to the historical returns of equity mid-cap funds, they have generated an average SIP-return of 21.16% in the last 5 years. This return is much lower than the 5-year average SIP return of the best-performing large-cap funds, which means that based on the last 5-year returns, they have outperformed large-cap funds by a huge number.

But this data should not be your only consideration to bet. Investors should and should keep in mind that during the market downturn, mid-cap funds and small-cap funds suffer the most, which means that an investor with a high-risk appetite having an investment horizon of 5-years or more can invest in equity-mid cap funds. But a new investor or an investor with low to moderate risk tolerance can invest or diversify their portfolio with best-performing debt mutual funds, large-cap funds, or arbitrage funds.

Disclaimer

The views and investment tips expressed by authors or employees of Greynium Information Technologies, should not be construed as investment advise to buy or sell stocks, gold, currency or other commodities. Investors should certainly not take any trading and investment decision based only on information discussed on GoodReturns.in We are not a qualified financial advisor and any information herein is not investment advice. It is informational in nature. All readers and investors should note that neither Greynium nor the author of the articles, would be responsible for any decision taken based on these articles. Please do consult a professional advisor. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and authors do not accept culpability for losses and/or damages arising based on information in GoodReturns.in

Finolex Cables

The brokerage has placed a “buy” on the shares of Finolex Cables with a price target of Rs 623 on the stock, as against the current market price of Rs 521, which as an upside of almost 20% from the current levels.

“Finolex cables reported a strong quarter, driven by strong revenue growth along with stable y-o-y operating profit margins. Its standalone revenue grew by 41% y-o-y to Rs. 921.4 crore (better than estimates), led by higher volume growth across product categories.

We expect strong performance in FY2022 as the cables segment saw infrastructure investments; the communication cables segment has already seen good tendering in First quarter of FY2022 and scaling up of its FMEG business with improving demand and strong dealer network. The company’s healthy operating cash flow generation, tight working capital management (policy of advance payments from dealers), and limited capex are expected to further build upon its cash reserves.

We retain our Buy rating on Finolex Cables with a revised target price of Rs 623, considering improvement in distribution efforts, which has led to pick up in volumes,” the brokerage has said.

Trent

Sharekhan has also recommended to buy the stock of Trent. The company is a renowned retailer and operates Westside, Star Bazaar, a hypermarket chain and Landmark a family entertainment format. The company has set a price target of Rs 1,018 on the stock as against the current market price of Rs 901 on Trent.

“Trent is among India’s strong branded retail players with a robust balance sheet, stable cash flows and one of the highest utilisation rates per store. Innovation in product portfolio, scaling up of supply chain, 100% contribution from own brands, aggressive store expansions and leveraging of digital presence will be near-term growth drivers. The stock is currently trading at 36 times its FY2023E EV/EBITDA. We maintain a Buy rating with a revised SOTP-based price target of Rs. 1,018,” Sharekhan has said in its report.

Gland Pharma

Gland Pharma is another stock where the firm has a “buy” rating. The brokerage believes that Gland Pharma is expected to benefit from the emerging opportunities in the china markets, leveraging the strong muscle of its parent company which has an established presence in China.

“The arrangement with Russia’s RDIF to manufacture 252 mn doses of Sputnik V Vaccine is a crucial point for the company as it has not only provided a new growth avenue but has also taken the company closer to its strategy to enter the lucrative biosimilar space. Structurally being an established player in the injectables, Gland is set to benefit from the rising preference for injectables. At the current market price, the stock is trading at a P/E multiple of 45.2x/29.4 times, its FY22E/FY23E earnings per share, thus pointing towards a further room for expansion. We have also introduced FY24E estimates in this note.

Strong domain expertise and growth prospects, a sturdy earnings track record and strong financials are the key positives for Gland. We retain a Buy recommendation on the stock with a revised target price of Rs 4,100,” the brokerage has said.

The shares of Gland Pharma were last trading at Rs 3,402 on the BSE.

Disclaimer

All of the above 3 stocks are picked from the research report of Sharekhan. 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.