Category: Personal Finance

1. Cipla:

For the pharma major in therapeutic category with more than 50 dosage options, the brokerage firm has suggested a buy for a target price of Rs. 1085. The stock last trades at a price of Rs. 914.8, implying gains to the tune of 18.6 percent.

Key takeaways on the company

The company’s 40 percent revenues are accounted by branded formulations and enjoys leadership in areas including respiratory, anti-infective, cardiac,

gynaecology & gastro-intestinal.

21% export revenues garnered from the US followed by South Africa, Europe etc.

The company’s Q2fy22 numbers came in good with sales increasing YoY by almost 10 percent. EBITDA was at Rs. 1226.2 crore, up 4% YoY with margins at 22%. Likewise adjusted PAT has been at Rs. 711.4 crore (up 6.9% YoY)

Brokerage rationale for the buy on Cipla

The buy has been suggested as the brokerage continues to focus on the company’s core strength of followinga calibrated approach of focusing more on branded products and core therapies across the world

Target Price and Valuation: We value Cipla at Rs. 1085 i.e. 25x P/E on FY23E EPS +

Rs. 42 NPV for gRevlimid.

Key triggers for future price performance:

The company’s strategy of focusing four verticals viz. One-India, South Africa & EMs, US generics & specialty and lung leadership

• Across the board transformation with adoption of private model from tenderised model in exports market and more focus towards consumerisation of important TGx,

Rx products in Indian branded formulations

• The company is focusing on front-end model, especially for the US, along with a gradual shift from loss making HIV and other tenders to more

lucrative respiratory and other opportunities in the US and EU

• Expects significant momentum from H2FY23 onwards in the US on the back of possible approvals and launches of gRevlimid, gAdvair and gAbraxane

besides momentum gains from Albuterol portfolio

Note the buy on the stock has been given for 12 months

2. Sanofi India:

This is another pharma company for which the brokerage is bullish for gains up to 19.5 percent. The target price for the stock is Rs. 9800, while the last traded price is Rs. 8199.95.

After the company delivered its 3rd quarter results for the calendar year 2021 has come in good with good margins. The company’s sales increased 10 percent YoY while its EBITDA margins came in improved. Also PAT gained YoY by 15 percent.

ICICI Direct values Sanofi at Rs. 9800 i.e. 35x P/E on FY23E EPS

Key triggers for future price performance:

• Focus on leveraging high margin portfolio through divesture of lower margin product basket

• Strong balance sheet, good dividend payout track record and comfort on corporate governance

• Consistent performer despite four core brands being under price control

• Future launches from its global staple along with brand extensions

• Access to innovative molecules from parent like recently launched anti-diabetic drug Toujeo

Sanofi is into offering drugs in therapeutic areas such as cardiology, thrombosis, anti-infective, CNS, allergy, vitamins, minerals & supplements. Lantus, Allegra & Combiflam are in Top 100 pharmaceutical brands in India

Alternate Stock Idea: the brokerage apart from Sanofi has suggested a buy call on the stock of

Abbott that is the fastest growing

listed MNC pharma companies. It

has outperformed the industry on a consistent basis in women’s health, GI,

metabolic, pain, CNS among others.

Disclaimer:

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. This article is for educational purpose.

Ramco Cements- Margin under pressure; demand outlook stays firm

With an 18% upside potential, the brokerage has set a price target of Rs 1200 on Ramco Cements.

Q2FY22 Results

• During Q2FY22, operational performance remained modestly better than our expectations, with tax adjustments inflating earnings.
• Revenue grew 18% year over year to $ 1493 crore. Volumes increased by 22.5 percent year over year to 2.71 MT, but realizations decreased by 3.7 percent due to the monsoon.
• Cost pressure and a high base resulted in a margin loss of 896 basis points year over year to 26.4 percent.
• Due to a deferred tax adjustment of Rs 306 crore, PAT was much higher at Rs 517 crore.

Target and Valuation

“Long operational history, brand equity and cost efficiency has helped the company to raise debt at competitive rates. Post completion of major capex, debt levels would peak out while growth to accelerate with revenue CAGR of 22.6%. Hence, maintain BUY rating Target Price and Valuation: We value Ramco at Rs 1,200 i.e.15.5x FY23E EV/EBITDA,” the brokerage has said.

The brokerage believes that from FY23 onwards, incremental volumes from new operations (1 MT Odisha GU, 1.5 MT & 2.25 MT clinker units in Jayanthipuram & Kurnool) would help the company develop. During FY21-23E, expect a CAGR of 18% in sales volume. Debt levels are expected to peak in FY22E. After three years, the company hopes to be debt-free.

Buy Orient Cement with upside potential of 54%

With a 54% upside potential, the brokerage has set a price target of Rs 250 on Orient Cement.

Q2FY22 Result

• A healthy volume increase of over 25% year over year was reported. Despite cost concerns, margins remained around 20% or above.
• Revenues increased by 28.4% year over year to 613.2 crore. Revenues were down 11.2 percent on a quarterly basis in September 2021 due to heavy monsoons in key countries.
• EBITDA/t decreased.
• EBITDA margin was 21.9 percent, down from 27 percent in the previous quarter and 23.7 percent a year ago.
• PAT of 56.8 crore was up 63.1 percent year over year but down 36.5 percent quarter over quarter.

Target and Valuations

“Orient Cement’s share price has grown 92% over the past three years (from ~| 90 in October 2018 to Rs 174 in 2021). With a strong business outlook, we remain positive on the company and maintain our BUY rating Target Price and Valuation: We value the company at Rs 250 i.e.7.5x FY23E EV/EBITDA,” the brokerage has said.

According to the brokerage, For FY22E, the volume growth forecast remains unchanged. Price increases are projected to protect margins from further erosion in the future. Before going into the next phase of expansion, the corporation is planning a large debt reduction. A total CAPEX of Rs 3,600 crore is required to reach 14.5 MT cement capacity by FY26E with an eye on the Rajasthan market.

Ambuja Cements with upside potential of 24%

With a 24% upside potential, the brokerage has set a price target of Rs 475 on Ambuja Cements.

Q3CY21 Results

• The Q3CY21 results from Ambuja Cements were in line with expectations.
• Revenues increased by 13.5 percent year on year to Rs 3237 crore. Sales volumes and realisations both increased by 9.3% and 3.8 percent year over year, respectively. Revenues were down 3.4 percent on a quarter-over-quarter basis.
• Despite lower-than-expected margins, reported EBITDA of Rs 703.1 crore (up 3.3 percent YoY) was in line with our expectations.
• Due to lower other income, net profit remained flat year on year at Rs 441.2 crore.

Target and Valuation

“Strong brand with pan India presence, cost-efficient and robust balance sheet are the key positives. With new capacities coming on stream from Q3CY21, we expect healthy double-digit growth during CY20-22E. Hence, we maintain BUY rating. Target Price and Valuation: We value Ambuja at Rs 475 i.e.17x CY22E EV/EBITDA,” the brokerage has said.

According to brokerage, from Q3CY21, new clinker capacity in Marwar Mundwa, Rajasthan (1.8 MT cement, 3 MT clinker) would provide additional sales of 5 MT per year. The company has also begun a new brownfield development of 1.5 MT cement grinding mill in Punjab, with the goal of reaching 50 MT capacity.

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.

PNB Gilts

In the fiscal year ended March 31, 2021, the company generated a return on equity of 34.49 percent, surpassing its five-year average of 17.23 percent. The stock returned 144.26 percent over three years, compared to 91.22 percent for the Nifty Smallcap 100. PNB Gilts Ltd., founded in 1996, is a Small Cap business in the Financial Services industry with a market capitalization of Rs 1,187.17 crore.

Since July 3, 2001, PNB Gilts has paid out 24 dividends. PNB Gilts Ltd. has given a Rs 10.00 per share equity dividend in the last 12 months. This amounts to a dividend yield of 15.16 percent at the current share price of Rs 65.95.

B P C L

Bharat Petroleum Corporation Limited (BPCL) is an Indian oil and gas company owned by the government. It is owned by the Indian government’s Ministry of Petroleum and Natural Gas, which is based in Mumbai, Maharashtra. Kochi and Mumbai are home to two big refineries.

The stock returned 55.41 percent over three years, compared to 80.19 percent for the Nifty 100 index. Over a three-year period, the stock returned 55.41 percent, while Nifty Energy returned 80.22 percent to investors. Since June 18, 2001, Bharat Petroleum Corporation Ltd. has announced 35 dividends.

Bharat Petroleum Corporation Ltd. has declared an equity dividend of Rs 79.00 per share in the last 12 months.

This translates to an 18.41% dividend yield at the current share price of Rs 429.00.

Polyplex Corporation

Polyplex is an Indian multinational firm that manufactures biaxially oriented polyester film for use in packaging, electrical, and other industrial applications. Only 3.25 percent of trading sessions in the last 16 years had intraday gains of more than 5%. In the fiscal year ended March 31, 2021, the company delivered an ROE of 16.76 percent, surpassing its five-year average of 11.06 percent. The stock returned 245.74 percent over three years, compared to 91.22 percent for the Nifty Smallcap 100.

Since September 5, 2000, Polyplex Corporation Ltd. has declared 38 dividends. Polyplex Corporation Ltd. has declared an equity dividend of Rs 165.00 per share in the last 12 months. This translates to a dividend yield of 9.66 percent at the current share price of Rs 1707.20.

Goodyear India

The company has enough cash on hand to cover all of its potential liabilities. In comparison to the Nifty Smallcap 100, which returned 91.22 percent over three years, the stock returned 12.81 percent. Since 2005, the company has had no debt.

In comparison to the Nifty Smallcap 100, which returned 91.22 percent over three years, the stock returned 12.81 percent. Over a three-year period, the stock yielded 12.81 percent, while the Nifty Auto yielded 33.51 percent.

Since May 30, 2007, Goodyear India has paid out 18 dividends.

Goodyear India Ltd. distributed an equity dividend of Rs 178.00 per share in the last 12 months.

This amounts in a dividend yield of 17.39 percent at the current share price of Rs 1023.70.

4 Stocks With Top Petroski Score And High Dividend Yield

Disclaimer

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. This article is for educational purpose.

Union Bank of India

Union Bank of India unveiled its ‘Loan Utsav’ deal yesterday, claiming the lowest rate of 6.40 percent on home loans, as well as a 100 percent waiver of processing fees. Union Bank is giving a 6.40 percent interest rate for salaried individuals and 6.50 percent for non-salaried individuals having a CIBIL score of 800 or above. The bank is providing a 6.50 percent interest rate on home loans to salaried borrowers with a CIBIL score of 750 to 799 and a 6.60% percent interest rate to non-salaried borrowers.

From October 27 to November 30, 2021, the applicable rate of interest will be in force for all new home loan customers (including switchovers from other Benchmarks, such as MCLR, Base Rate, or BPLR to EBLR). Individually or jointly, Indian nationals and NRIs with a minimum entry age of 18 years and a maximum exit age of 75 years can apply for a home loan.

Punjab & Sind Bank

Punjab & Sind Bank is now accepting bids for its upcoming MEGA e-Auction on October 30th, 2021. The bank claims it would offer 313 quality residential, commercial, and industrial properties throughout India’s major cities, all of which will be auctioned under the Drt/Sarfaesi Act. On the other hand, the bank is giving a 6.50 percent interest rate on the PSB Apna Ghar scheme. “Own your dream home with “PSB Apna Ghar – सहज” packed with attractive features such as concessions in ROI, Nil Processing Charges and other added benefits,” the bank has claimed via its Twitter handle.

Under the home loan scheme, the bank is also promising zero processing / inspection / prepayment charges, 50% concession in locker rent, longest repayment period of up to 30 years and much more which is valid till 10.11.2021. The PNB Apna Ghar scheme can be utilized to build a residential home, purchase a plot, extend, repair, or renovate an existing home.

Kotak Mahindra Bank

With the advantages of quick loan approval, simple documentation, low processing fees, and more, Kotak Mahindra Bank is currently offering a 6.50 percent interest rate on home loans. The deal is available from September 10th until November 8th, 2021. The bank promises a 6.50 percent to 7.10 percent interest rate on any loan amount for salaried borrowers, and a 6.65 percent to 7.25 percent interest rate for non-salaried borrowers. For home loan balance transfers, the relevant interest rate for salaried borrowers will be 6.50 percent and for non-salaried borrowers would be 6.60 percent for any loan amount. “We are serious! Kotak Home Loans starting at surprisingly low interest rates of 6.5%* p.a! Now get your dream home in reality. Hurry! Offer valid from 10-Sep to 8-Nov-21,” the bank has said via its Twitter handle.

Bank of Baroda

Bank of Baroda is now offering home loans with interest rates starting at 6.50 percent, with enticing benefits such as low processing charges, higher loan amounts, free credit card, free accidental insurance, longer repayment tenures, easy top-up loans, quick loan approval, easy documentation, and an online application process through BoB World. Under the festive deal, the bank is offering the said interest rate to both salaried and non-salaried individuals and the bank has claimed in a statement that “With the onset of festive season and to make home buying more affordable for customers, the Bank has extended this offer and the special rate will be available till December 31, 2021. The new rates will be available for customers applying for fresh loans, loan transfer or looking to refinance their existing loans making the offer more inclusive. Nil processing fee on home loan was already on offer and has been extended till 31/12/21.”