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How Crisil rates mutual funds?

Crisil Mutual Fund Rank covers various categories across equity, debt and hybrid asset classes. Unlike most other ranking models, which are based purely on returns or net asset value (NAV), Crisil Mutual Fund Rank uses a combination of NAV and portfolio-based attributes for evaluation. This provides a single point analysis of mutual funds, taking into consideration key parameters such as risk-adjusted returns, asset concentration, liquidity and asset quality.

The ranks are assigned on a scale of 1 to 5, with CRISIL Fund Rank 1 indicating ‘very good performance’. In any peer group, the top 10 percentile of funds are ranked as CRISIL Fund Rank 1 and the next 20 percentile as CRISIL Fund Rank.

PGIM India Flexi Cap Fund – ranked No 1 by Crisil

This fund has generated returns of 68% in the last 1-year. The 3-year returns are 31.26%, while the 5-year returns are 21.37%. This is pretty good and compares well with most other funds in its category. It must be noted that the returns are good, thanks to an upsurge in the Indian and the global stock markets over the last 1-year.

One can start a Systematic Investment Plan under the fund with a small sum of Rs 1,000 every month. This fund has invested as much as 97% in stocks and the balance in debt instruments. Flexi cap funds are funds that tend to invest across market capitalizations and hence offer the fund manager some dynamism in managing the portfolio. PGIM India Flexi Cap Fund has holdings in stocks like Infosys, ICICI Bank, L&T and HDFC.

UTI Flexi Cap Fund

This is another fund that is ranked NO 1 by Crisil. The returns are slightly lower than that of PGIM India Flexi Cap Fund and the 1-year returns are placed at around 58.67, while the annualized while the 3-year returns are around that 21% mark.

The fund has holdings in stocks like Bajaj Finance, HDFC Bank, L&T Infotech, Kotak Mahindra Bank, HDFC and Infosys. One can start an SIP with a small sum of Rs 500 each month in the UTI Flexi Cap Fund.

The fund has invested as much as 97.6% in equities and the balance is held in cash. We believe that investors who are looking at a long-term can invest in these funds.

Avoid lumpsum investment

We at goodreturns.in have been telling investors to stay cautious on the markets with the Sensex at 60,000 points. Most analysts believe that the markets are over priced at the current levels. In fact, according to one brokerage firm the markets are at a premium to long term averages by almost 15 to 20%. Therefore, please be careful even while investing in mutual funds.

Disclaimer

Investors are advised caution as investing in mutual funds is risky. The report is for informational purposes and Greynium Information Technologies, the author and the brokerage would not be responsible for any losses incurred by investors based on the report above

Buy Greenpanel Industries, Sharekhan says

The brokerage is bullish on the stock of Greenpanel Industries and sees an upside to Rs 510, as against the current market price of Rs 399. Greenpanel is India’s largest manufacturer of wood panels.

Greenpanel reported stupendous performance for Q2FY2022 outperforming on the revenue and OPM front by a wide margin.

“Consolidated revenues grew by 88% y-o-y to Rs. 422 crore led by 103% y-o-y jump in MDF revenues (volume/realizations growth of 67%/22% y-o-y) at Rs. 349 crore. Plywood revenues were up 38% y-o-y led by volume/realizations growth of 22%/13% y-o-y to Rs. 73 crore. Consolidated OPM at 26.8% (+619bps y-o-y) was led by operating leverage, higher value added product share and higher realizations (both domestic and exports). The company expects growth momentum to continue with 1.2 lakh cubic metres capacity coming on stream in Q3FY2022 and expects blended capacity utilization to be at 90-95% for FY2022. The OPM too are expected to remain elevated,” the brokerage has said.

Valuation of Greenpanel and view by Sharekhan

The company’s limited capex requirement towards brownfield expansions, strong operating cash flow generation, tight working capital management and reducing leverage would propel its return ratios over FY2021-FY2024E.

“The company is currently trading at a P/E of 16x its FY2024E earnings, which we believe is quite attractive considering over 60% CAGR in net earnings expected over FY2021-FY2024E. Hence, we retain our Buy rating with a revised price target of Rs. 510 led by upward revision in estimates,” the brokerage has said.

Buy Hitech Pipes For 18% to 20% returns

The broking firm has also set a target price of 18 to 20% higher against the current market price of Rs 624 on the stock of Hitech Pipes.

“The company reported better than expected performance for Q2FY2022 on account of higher than anticipated realizations while volumes disappointed. The consolidated net revenues grew 21% y-o-y to Rs. 461 crore led by 60.5% y-o-y rise in realizations at Rs. 71,149/tone while volumes dipped 24.7% y-o-y at 64,765 tons.

The volumes were affected by the postponement of orders from contractors due to high steel prices and monsoons domestically while export order were affected by logistics issues. However, EBITDA/tone stood strong at Rs. 3742/tone (up 68% y-o-y) led by higher realizations, higher share of value added products and inventory gains. The consolidated operating profit/net profit grew by 26.6%/54.6% y-o-y,” the brokerage has said.

Valuation and view on Hitech Pipes

According to Sharekhan, the company’s debt-free capacity expansion plans over the medium to long term are expected to capture the huge growth potential for the domestic steel pipe industry.

“At the current market price, the stock is currently trading at a P/E of 8x its FY2024E EPS, at a discount to its peers. We expect valuation multiple gap vis-à-vis peers to narrow down as Hitech ramps ups net earnings driven by healthy topline growth and strong operational profitability. Hence, we retain our positive view on the stock and expect an upside of 18-20%,” the brokerage has said.

Disclaimer

Investors are advised caution as investing in equities is risky. The report is for informational purposes and Greynium Information Technologies, the author and the brokerage would not be responsible for any losses incurred by investors based on the report above.