How Are Markets Expected To Fare In November?

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Planning

oi-Roshni Agarwal

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The previous week to November 4, 2021 was a truncated one owing to the festive holidays nonetheless on the Muhurat trading that commemorates the new Samvat 2078, there was seen resilience with Nifty again hitting levels of 17,917, while Sensex made it to 60,067 points after gaining 295 points during the 1-hour session.

How Are Markets Expected To Fare In November?

How Are Markets Expected To Fare In November?

“We believe ongoing consolidation after around 15% rally seen over past four weeks would make the market healthy. Hence, dips should be capitalised on to accumulate quality stocks to ride the next leg of the up move”, says the ICICI Direct Research report.

Notably as for how the markets shall perform in the week ahead to November 12 and in the entire month here are the few considerations:

1. The US markets ended Friday’s session at record closed moved by the strong jobs data even from the private payrolls. This would also be seen reflecting on Asian indices when they start trading on Monday (October 8, 2021)

2. OPEC + oil producing nations have rejected the US’ call to increase the supply and amid it prices have been seen to gain by as much as 3 percent. Brent crude has been hovering above the $80 per barrel level. So by and large the price of crude shall remain elevated and amid it Indian markets tend to do be good.

3. Back home, impact of the fuel excise duty cut shall also be strengthening investor sentiment. So, as concerns around inflation may ease and impetus to the economic recovery will find more traction, bulls may be taking grip.

4. Also, in the US asset tapering timeline has been provided and as early as November the US Fed will reduce its asset buying by $15 billion per month .

“Given a slew of significant economic data releases and the ongoing earnings season, the volatility experienced this week is expected to persist into the forthcoming week as well,” Shah said- head of research at Samco Securities.

Now overall support lent by the FIIs as the Fed is now out with its monetary policy view and the other positive and local positives may have a positive impact. Nonetheless, historically, bears have lead the November month.

GoodReturns.in

Story first published: Saturday, November 6, 2021, 15:05 [IST]



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Indusind Bank says whistleblower claims baseless; gave 84k loans sans client consent in May, BFSI News, ET BFSI

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Mumbai, Terming whistleblower allegations on loan evergreening as “grossly inaccurate and baseless”, Indusind Bank on Saturday admitted to have disbursed 84,000 loans without customer consent in May owing to a “technical glitch”. Lending without the consent was reported by the field staff in two days, and the glitch was also rectified expeditiously, the private sector lender said in a clarification.

On Friday, there was a media report about anonymous whistleblowers writing to the bank management and the RBI about BFIL, the microlending-focused subsidiary of the bank, allegedly resorting to evergreening of loans, wherein existing borrowers unable to pay dues were given new loans to present the books as clean.

“The bank strongly denies the allegations of ‘evergreening’. All the loans originated and managed by BFIL, including during the COVID period which saw the first and second waves ravaging the countryside, are fully compliant with the regulatory guidelines,” an official statement said.

“Due to a technical glitch in May 2021, nearly 84,000 loans were disbursed without the customer consent getting recorded at the time of loan disbursement,” it added.

“Operational issues” due to the pandemic’s second wave like lockdowns, containment zones, and restrictions at the village/panchayat level had necessitated disbursement of some loans in cash, it said.

At the end of September, 26,073 of these 84,000 clients were active with the loan outstanding at Rs 34 crore, which is 0.12 per cent of the September-end portfolio, the bank said, adding that it carries necessary provisions against the loans.

It also said that the Standard Operating Procedure has since been revised to make biometric authorization compulsory, and that in October 2021, nearly 100 per cent of the loan disbursements were in the bank accounts of the customers, as in pre-COVID time.

During the pandemic, customers faced operational difficulties and some have turned to intermittent payers, though a large part of them demonstrated a strong intent to repay on many occasions, the bank statement said.

The bank added that help was rendered to such clients, including through additional liquidity support to the extent of 20 per cent of the outstanding as on February 29, 2020 as applicable under the ECLGS (Emergency credit line guarantee Scheme), restructuring, and additional loan with a longer tenor and lower EWI (equated weekly instalments) for customers, after they cleared of their arrears and with their due consent.

It can be noted that nearly all the lenders have reported reverses on the microloans front since the beginning of the pandemic. The activity is concentrated in rural areas, where field agents of a lender go deep to disburse loans and also collect dues in cash on a weekly basis.

With the easing of the lockdown measures, all lenders are reporting an improvement in collections and also disbursements.

Indusind Bank management had reported an increase in stress in the microfinance loans portfolio, with the gross non-performing assets ratio moving up to 3.01 per cent as of September, up from 1.69 per cent in June.

The fresh slippages in the book had stood at Rs 1,070 crore in the September quarter, while the net after-recoveries and upgrades stood at Rs 460 crore.

As per the media report on Friday, communication from the whistleblowers to the bank’s chief executive Sumant Kathpalia, independent directors and RBI officials had happened between October 17 and October 24. Additionally, there was also an “outsider” who had written to RBI on October 14, it said.

The report had highlighted that a month prior to the October 14 complaint, BFIL’s non-executive chairman M R Rao had stepped down and also flagged RBI’s concerns on the loans given without customer consent in his resignation letter, calling it a deliberate act to shore up repayment rates. PTI AA DRR DRR



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Yes Bank Revises Fixed Deposit Interest Rates: Check Latest Rates Here

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Yes Bank FD Rates For Regular Customers

Yes Bank modified its term deposit interest rates on November 3, 2021, and now provides a rate of 3.25 percent on deposits maturing in 7 to 14 days, 3.5 percent on deposits maturing in 15 to 45 days, and 4 percent on deposits maturing in 46 to 90 days. On term deposits maturing in 3 months to less than 6 months, Yes Bank offers 4.5 percent, and on deposits maturing in 6 months to less than 9 months, the bank offers a 5% interest rate.

The Bank offers a 5.25 percent interest rate on FDs with a maturity period of 9 months to less than one year and a 6% interest rate on term deposits with maturity duration of one year to less than three years. FDs with maturities ranging from three to less than ten years will return 6.25 percent interest to the general public as of now. For a deposit amount of less than Rs 2 Cr, here are the latest interest rates of Yes Bank on fixed deposits of regular customers.

Period Interest rates per annum
7 to 14 days 3.25%
15 to 45 days 3.50%
46 to 90 days 4.00%
3 months to 4.50%
6 months to 5.00%
9 months to 5.25%
1 Year to 6.00%
3 Years to 6.25%
Source: Bank Website

Yes Bank FD Rates For Senior Citizens

Yes Bank FD Rates For Senior Citizens

On their deposits of less than Rs 2 cr, elderly folks will continue to get an additional rate of 0.50% across all tenors. Following the latest adjustment made by the bank on fixed deposit interest rates, senior citizens will now get the following rates on their term deposits.

Period Interest rates per annum
7 to 14 days 3.75%
15 to 45 days 4.00%
46 to 90 days 4.50%
3 months to 5.00%
6 months to 5.50%
9 months to 5.75%
1 Year to 6.50%
3 Years to 7.00%
Source: Bank Website

Yes Bank Recurring Deposit Interest Rates

Yes Bank Recurring Deposit Interest Rates

Yes Bank has also adjusted its recurring deposit interest rates. Yes Bank is providing the following interest rates on recurring deposits maturing in 6 months to less than 10 years, effective from November 3, 2021.

Period Interest Rate (per annum) Senior Citizen Rates (per annum)
6 Months 5.00% 5.50%
9 Months 5.25% 5.75%
12 Months 6.00% 6.50%
15 Months 6.00% 6.50%
18 Months 6.00% 6.50%
21 Months 6.00% 6.50%
24 Months 6.00% 6.50%
27 Months 6.00% 6.50%
30 Months 6.00% 6.50%
33 Months 6.00% 6.50%
36 Months 6.25% 7.00%
5 years upto 10 Years 6.25% 7.00%
Source: Bank Website



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How Will Gold Price React To The Robust US October Jobs Number?

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oi-Roshni Agarwal

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After scaling to record highs in the previous year, gold is down almost 15 percent or Rs. 8751 considering the all time high of Rs. 56,200 on the MCX. Now as there are a host of factors impacting gold prices and particularly the bearing of the US dollar index movement and bond yields, gold has been seeing respite and has once again climbed the key $1800 per ounce key psychological level.

How Will Gold Price React To The Robust US October Jobs Number?

How Will Gold Price React To The Robust US October Jobs Number?

The main factor supporting gold price as of now has been dollar index which due to ample liquidity into the global system as well as near zero interest rates has been losing ground. Last the dollar index hovered lower by 0.14% to end the session at 94.22. Likewise, there have been seen softening in the US bond yield which went down by 0.12 percent.

US jobs data to cause softening in gold price in the near term

As per the Labour department data released on Friday, there has been an improvement in the jobs number for the October month. The unemployment rate went down to 4.6 percent with non-farm payrolls gaining more than expected. There has been an exorbitant increase in the payroll number by 5.31 lakhs for the month as against 4.5 lakh estimated by the Dow Jones. Private payroll situation was even more robust

Now as jobs indicate the economic growth stance, the recent data will boast of a promising economic growth scenario. The sentiment shall revive risk-on sentiment and hence dent the appeal of the precious yellow metal going forward in the near term.

Nonetheless, a whole lot of reasons are suggesting gold will see positive rate trend going forward, the prime being the global central banks’ continuation with the accommodative monetary policy stance in order to provide the best possible support.

GoodReturns.in

Story first published: Saturday, November 6, 2021, 12:47 [IST]



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Top 5 Banks Promising Best Returns On 3-Year FDs To Regular & Senior Citizens

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RBL Bank

RBL Bank is giving an interest rate of 6.30 percent to the general public and 6.80 percent to senior citizens on deposits of less than Rs 2 crore maturing in three years. Here are the bank’s current interest rates on fixed deposits for a period of up to three years.

Period of deposit Interest Rates p.a. Senior Citizen Interest Rates p.a.
7 days to 14 days 3.25% 3.75%
15 days to 45 days 3.75% 4.25%
46 days to 90 days 4.00% 4.50%
91 days to 180 days 4.50% 5.00%
181 days to 240 days 5.00% 5.50%
241 days to 364 days 5.25% 5.75%
12 months to less than 24 months 6.00% 6.50%
24 months to less than 36 months 6.00% 6.50%
36 months to less than 60 months 6.30% 6.80%
Source: Bank Website. W.e.f. 1st September 2021

YES Bank

YES Bank

On deposits of less than Rs 2 crore maturing in three years, Yes Bank is offering a 6.25 percent interest rate to the general public and a 7.00 percent interest rate to elderly folks. The bank’s current interest rates on fixed deposits for up to three years are listed below.

Period Regular Senior Citizens
7 to 14 days 3.25% 3.75%
15 to 45 days 3.50% 4.00%
46 to 90 days 4.00% 4.50%
3 months to 4.50% 5.00%
6 months to 5.00% 5.50%
9 months to 5.25% 5.75%
1 Year to 6.00% 6.50%
3 Years to 6.25% 7.00%
Source: Bank Website. W.e.f. 3rd November, 2021

IndusInd Bank

IndusInd Bank

IndusInd Bank is granting a 6% interest rate to the general public, and a 6.50 percent interest rate to the elderly on their deposits of less than Rs 2 crore maturing in three years. The current interest rates on fixed deposits with the bank for up to three years are shown below.

Tenure Rate for Regular Citizens (% per annum) Rate for Senior Citizens (% per annum)
7 days to 14 days 2.5 3
15 days to 30 days 2.75 3.25
31 days to 45 days 3 3.5
46 days to 60 days 3.25 3.75
61 days to 90 days 3.4 3.9
91 days to 120 days 3.75 4.25
121 days to 180 days 4.25 4.75
181 days to 210 days 4.6 5.1
211 days to 269 days 4.75 5.25
270 days to 354 days 5.5 6
355 days to 364 days 5.5 6
1 Year to below 1 Year 6 Months 6 6.5
1 Year 6 Months to below 1 Year 7 Months 6 6.5
1 Year 7 Months to below 2 Years 6 6.5
2 years to below 2 years 6 Months 6 6.5
2 years 6 Months to below 2 years 9 Months 6 6.5
2 years 9 months upto 3 years 6 6.5
Above 3 years upto 61 months 6 6.5
Source: Bank Website. W.e.f. July 23rd, 2021

DCB Bank

DCB Bank

On deposits of less than Rs 2 crore maturing in three years, DCB Bank is providing 5.95 percent to the general public and 6.45 percent to senior persons. The bank’s current interest rates on fixed deposits for up to three years are listed below.

Tenure Rate for Regular Citizens (% per annum) Rate for Senior Citizens (% per annum)
7 days to 14 days 4.35% 4.85%
15 days to 45 days 4.35% 4.85%
46 days to 90 days 4.35% 4.85%
91 days to less than 6 months 5.05% 5.55%
6 months to less than 12 months 5.45% 5.95%
12 months 5.55% 6.05%
More than 12 months to less than 15 months 5.30% 5.80%
15 months to less than 18 months 5.50% 6.00%
18 months to less than 700 days 5.50% 6.00%
700 days 5.95% 6.45%
More than 700 days to less than 36 months 5.50% 6.00%
36 months 5.95% 6.45%
Source: Bank Website. W.e.f. 02nd November 2021

Bandhan Bank

Bandhan Bank

Bandhan Bank is offering 5.50 percent to the general public and 6.25 percent to senior citizens on deposits of less than Rs 2 crore maturing in three years. The bank’s most recent fixed deposit interest rates for up to three years are mentioned below.

Tenure Rate for Regular Citizens (% per annum) Rate for Senior Citizens (% per annum)
7 days to 14 days 3.00% 3.75%
15 days to 30 days 3.00% 3.75%
31 days to Less than 2 months 3.50% 4.25%
2 months to less than 3 months 3.50% 4.25%
3 months to less than 6 months 3.50% 4.25%
6 months to less than 1 year 4.50% 5.25%
1 year to 18 months 5.50% 6.25%
Above 18 months to less than 2 years 5.50% 6.25%
2 years to less than 3 years 5.50% 6.25%
Source: Bank Website. W.e.f. June 7, 2021



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IndusInd Bank says whistleblower claims baseless; gave 84k loans sans client consent in May

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Terming whistleblower allegations on loan evergreening as “grossly inaccurate and baseless”, IndusInd Bank on Saturday admitted to have disbursed 84,000 loans without customer consent in May owing to a “technical glitch”.

Lending without the consent was reported by the field staff in two days, and the glitch was also rectified expeditiously, the private sector lender said in a clarification.

On Friday, there was a media report about anonymous whistleblowers writing to the bank management and the RBI about BFIL, the microlending-focused subsidiary of the bank, allegedly resorting to evergreening of loans, wherein existing borrowers unable to pay dues were given new loans to present the books as clean.

“The bank strongly denies the allegations of ‘evergreening’. All the loans originated and managed by BFIL, including during the Covid period which saw the first and second waves ravaging the countryside, are fully compliant with the regulatory guidelines,” an official statement said.

“Due to a technical glitch in May 2021, nearly 84,000 loans were disbursed without the customer consent getting recorded at the time of loan disbursement,” it added.

“Operational issues” due to the pandemic’s second wave like lockdowns, containment zones, and restrictions at the village/panchayat level had necessitated disbursement of some loans in cash, it said.

At the end of September, 26,073 of these 84,000 clients were active with the loan outstanding at ₹34 crore, which is 0.12 per cent of the September-end portfolio, the bank said, adding that it carries necessary provisions against the loans.

It also said that the Standard Operating Procedure has since been revised to make biometric authorization compulsory, and that in October 2021, nearly 100 per cent of the loan disbursements were in the bank accounts of the customers, as in pre-Covid time.

During the pandemic, customers faced operational difficulties and some have turned to intermittent payers, though a large part of them demonstrated a strong intent to repay on many occasions, the bank statement said.

The bank added that help was rendered to such clients, including through additional liquidity support to the extent of 20 per cent of the outstanding as on February 29, 2020 as applicable under the ECLGS (Emergency credit line guarantee Scheme), restructuring, and additional loan with a longer tenor and lower EWI (equated weekly instalments) for customers, after they cleared of their arrears and with their due consent.

Also read: IndusInd Bank Q2 net profit up 72%

It can be noted that nearly all the lenders have reported reverses on the microloans front since the beginning of the pandemic. The activity is concentrated in rural areas, where field agents of a lender go deep to disburse loans and also collect dues in cash on a weekly basis.

With the easing of the lockdown measures, all lenders are reporting an improvement in collections and also disbursements.

IndusInd Bank management had reported an increase in stress in the microfinance loans portfolio, with the gross non-performing assets ratio moving up to 3.01 per cent as of September, up from 1.69 per cent in June.

The fresh slippages in the book had stood at ₹1,070 crore in the September quarter, while the net after-recoveries and upgrades stood at ₹460 crore.

As per the media report on Friday, communication from the whistleblowers to the bank’s chief executive Sumant Kathpalia, independent directors and RBI officials had happened between October 17 and October 24. Additionally, there was also an “outsider” who had written to RBI on October 14, it said.

The report had highlighted that a month prior to the October 14 complaint, BFIL’s non-executive chairman MR Rao had stepped down and also flagged RBI’s concerns on the loans given without customer consent in his resignation letter, calling it a deliberate act to shore up repayment rates.

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3 Stocks To Buy Recommended BY IIFL Securities With Potential Upside Up To 83%

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RSWM Limited

Rajasthan Spinning & Weaving Mills (RSWM) Ltd. is one of India’s major yarn producing firms and the brokerage IIFL Securities has recommended to “BUY” this stock and have set a target price of Rs 700 with a potential upside of 83%. The stock was recommended by the brokerage at a market price of Rs 375-391, and it is currently trading at Rs 483.90.

According to the brokerage “The company has been able to manage operations at full capacity throughout the period of restrictions. Q1FY22 ended with total revenues at Rs750cr and PAT of Rs37cr. Debts slightly increased as compared to 31st March due to increased working capital utilization on account of stock of cotton & increased volume of business. Debt is mostly from hydro & solar power plants which are in-state partnerships & which are now doing very well which will see a reduction in debt & improvement in ROE.”

“As 100% FDI is allowed (automatic route), PLI of Rs10,683cr (USD 1.44 billion) for man-made fiber and Technical Textiles, support to handloom weavers under MUDRA Scheme will lead to the growth in the top & bottom line of the company. Increased penetration of organized retail, favorable demographics and rising income level will drive the demand of Textiles in the future Pandemic has led to an increased demand for Technical Textiles also” the brokerage has said.

Consolidated (Rs mn) Net income PAT Margin EPS P/E (x) RoE (%)
FY22E 25,586 2.00% 21.7 16.9 6
FY23E 28400 3.00% 36.2 10.14 9

Sterling and Wilson Solar Ltd

Sterling and Wilson Solar Ltd

Sterling and Wilson is a prominent MEP and EPC supplier for power, solar energy, data centers, diesel generator sets, cogen plants, buildings, etc. The brokerage has recommended investors to “BUY” this stock, and have set a target price of Rs 750 and an upside potential of 82 percent. The brokerage recommended the stock at a market price of Rs 400-422, but it is now trading at Rs 449.65.

According to the brokerage “Reliance Energy has made an open offer @375 to acquire 40%, which heralds the group into solar energy with the company being the biggest solar panel maker in the world. Also, it is the country’s largest player in MEP & EPC execution with debt being paid off by past promoters.”

“Order inflow till date at Rs473cr (623 MW) with 8.7 GW contracted O&M as of date. Gross Un-execute Order Value (UOV) as of date is Rs 8,731 cr. Management is focusing on targeting large markets like North America & Europe with a combined size of over 26.5 GW in CY21. Due to the impact caused by the increase in module and commodity prices, adjusted gross margins in Q1FY 22 continue to remain suppressed for the ongoing project” the brokerage has said.

Consolidated (Rs mn) Net income PAT Margin EPS EPS growth (%) P/E (x) RoE (%)
FY22E 54,365 4 3.4 – 31 22.8
FY23E 59,257 5 11.1 36 22.7 28

Tata Steel

Tata Steel

Tata Steel is one of India’s most well-known steel manufacturers. Tata Steel recently received the Steelie Award for Excellence in Digital Communications for the 12th time. According to the brokerage, Tata Steel now boasts 19.6mtpa of finished steel capacity in India and TSE’s NSR jump has lagged spot prices, as ~60% of volumes entail a six-monthly re-pricing. Management indicated a EUR200/t jump in NSR at TSE in 2Q, as contracts have reset at higher pricing. This should continue inching up if such steel prices sustain.

“Tata Steel’s standalone EBITDA at Rs102.1bn (+11% QoQ) was largely in line with estimates. Standalone EBITDA/t expanded to a decade high of Rs35,570, aided by price hikes. Domestic steel prices are at 20% discount to the landed cost of imports which offers room for further price hikes going forward if demand is strong” the brokerage has said.

IIFL Securities has said, “Combined with strength in India operations due to elevated steel prices, this drives 22%/15% upgrade to the FY22/23ii consolidated EBITDA of Tata Steel.”

The brokerage has recommended buying this stock and has set a target price of Rs 1897 and an upside potential of 48 percent. The stock was advised at a market price of Rs 1260-1310 by the brokerage, however it is now trading at Rs 1,326.45.

Consolidated (Rs mn) Net income PAT Margin EPS EPS growth (%) P/E (x) RoE (%)
FY22E 2,323,093 29.1 342.1 380.1 4.3 44.9
FY23E 1,986,739 23.3 210.7 38.4 6.9 21

Disclaimer

Disclaimer

The above stocks are picked from the brokerage report of IIFL 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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2 Nifty Stocks To Buy As Suggested By HDFC Securities For Decent Gains

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1. SBI- Buy SBI for a target price of Rs. 572

The PSB lender is expected to see gains of up to 8 percent from current price levels. The price target for the stock is Rs. 572. The stock last closed at a price of Rs. 530.45 per share.

The bank has surprised the street with its positive results despite fully accounting for one-time accelerated pension cost of Rs. 74bn, given a

sustained improvement in asset quality. Gross slippages came in at 0.7 percent

There has been reported growth in loan category led by increase in retail loans.”With favourable trends on impairment and recoveries/upgrades resulting in gradual credit cost normalisation, SBI’s incremental RoA reflation to potential ~1% is now contingent on higher asset yields. We revise our FY22 earnings estimates by -8% to factor in accelerated pension costs and credit cost normalisation. We maintain BUY with a revised SOTP-based target price of INR572 (core at 1.2x Sep’23 ABVPS)”, says the HDFC Securities’ report.

Steady-state asset quality: SBI’s GNPA/NNPA stood at 4.9%/1.5% (Q1FY22: 5.3%/1.8%), benefitting from recoveries (large HFC) and sharp inter-quartile

upgrades. Net slippages, at 0.7%, stemmed from the corporate segment and included one NBFC exposure.

“Need for growth and reflation in asset yields: SBI’s P&L performance was skewed by accelerated pension costs, large write-backs, and low interest

reversals. As back book asset quality issues recede, our incremental focus is likely to be on how SBI can potentially reflate asset yields to drive 1% RoA

through gradual portfolio repricing and re-risking (without adding to credit

costs) and better operating efficiencies”, adds the report.

2. Tata Motors- Buy Tata Motors for a target of Rs. 560

2. Tata Motors- Buy Tata Motors for a target of Rs. 560

The Nifty Auto stock is expected to see gains of up to 14 percent from current price level of Rs. 489.7 to a price target of Rs. 560 per share. The ‘Buy’ on the stock is recommended by the brokerage house even as the company reported Q2FY22 loss of Rs. 45bn due tothe ongoing chip shortages. The management expects production trends to improve over H2, as suppliers are recovering from the plant fires/lockdownsin Asia. The dealer inventory at JLR is at a multi-year low of 30Kunits – at the same time the order book is robust at 125K units ( about 3-month sales). Tata has monetised its India passenger car EV business at a valuation of USD6.7-9.1bn,by selling a 11-15% stake to TPG Rise (which is a marquee PE firm). We are raising our SOTP value to INR 560, based on Sep’23 earnings (from Jun’23 earlier). We ascribe a higher value to the India business of INR 330 to factor in the EV business valuation, as stated above. We also value the JLR business at 2.75x on EV/EBITDA (from 2.5x earlier) to factor in an improving supplyoutlook as well as the expected roll-out of the new Range Rover in Q4FY22.

JLR accounts for INR 218 per share (including CJLR).

Key highlights on the scrip as described by the brokerage

(1) Supplies to improve in H2: The chip production is

likely to improve from here on as vendors are coming out of the lockdown. Cash flows (-GBP 664mn) were impacted due to higher working capital,

which will normalise.

(2) New RR launch in Q4: The new RR will drive

volumes in FY23E. The PHEV variant offers class leading EV range of 100kms, with the BEV option to be rolled out in 2024. The model is built on

the new MLA Flex platform.

(3) India car business is gaining share: With

the launch of the new ‘Punch’, Tata has received a 50% increase in bookings.

The OEM is steadily gaining market share – Q2 share at 11.3% (+130bps QoQ) is at a eight-year high. Electric traction: Domestic EV car sales have crossed the 1,000 unit p.m. milestone, with a sharp rise in the order backlog. Post TPG’s infusion, the EV business is valued at 5-7x on FY26/27E revenue.

Disclaimer:

Disclaimer:

The 2 stocks are taken from the report of HDFC Securities and are not a recommendation to buy into these stocks. Remember Indian equities are highly expensive and investors need to do their own stock study and analysis before taking a dig into this risky asset class.

GoodReturns.in



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This Banking Stock can Gain 41%, “Buy” Says Motilal Oswal

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Asset quality improves

Union Bank of India reported healthy earnings, supported by recovery from the DHFL resolution. According to Motilal Oswal, fee income trends improved, while domestic margins declined; muted loan growth affected NII growth.

“Union Bank reported net profit of Rs 15.3 billion (+195% YoY), supported by higher recoveries from written-off accounts of INR17.6b, including recovery of Rs 16.5 billion from the resolution of the DHFL account. 1HFY22 NII/PPoP/PAT grew 9%/19%/219% YoY,” the brokerage has said.

Buy with a price target of Rs 65

Buy with a price target of Rs 65

According to Motilal Oswal, the management indicated asset quality would continue to improve, aided by moderation in the slippage trend and higher recoveries from stressed asset resolutions. Furthermore, SMA-2 overdues declined to 2.3% of loans, while the restructured portfolio increased

to 3.7% of loans.

“Thus, we estimate credit costs at 2.2%/1.9% for FY22/FY23E and RoA/RoE at 0.8%/14.2% by FY24E. We maintain Buy, with revised Target Price of Rs 65 (0.7x Sep’21 ABV),” the brokerage has said.

Disclaimer

Disclaimer

The above stock is picked from the brokerage report of Motilal Oswal. 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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3 Multibagger Stocks That Yielded Up To 14850% Return In The Last 1-Year

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1. Flomic Global Logistics Ltd.:

This is an IATA recognized air freight service provider. The company’s range of services include ocean freight, domestic transportation by air/ rail, reefer container, exhibition and event logistics among other. The country with over 30 years of existence caters to as many as 84 plus nations.

The 1-year return of the scrip of Flomic has been a staggering 14850 per cent from a price of just above Rs. 1 to now at Rs. 167.45. The stock is not traded on the NSE. The stock’s latest m-cap stands at Rs. 120 crore.

2. HCP Plastene Bulkpack/ Gopala Polyplast:

2. HCP Plastene Bulkpack/ Gopala Polyplast:

HCP Plastene Bulkpack … Gopala Polyplast (GPL) is engaged in the manufacturing of HDPE/PP Woven sacks with an installed capcaity of 7925 tons and diversified into. textile woven labels (inst. cap. : 59 mln pa) at a total cost of Rs 13.17 cr..Textile woven labels find their application in readymade garments (shirts, trousers, dresses), hosiery, terry towels, leather shoes, knitwear, etc.

The scrip in the last 1-year moved up from Rs. 5.72 as on November 5, 2020 to currently quote at Rs. 629.4, giving an outstanding return of 10903 percent return in the last 1-year. Know more about how this stock gave such outstanding returns.

3. Xpro India:

3. Xpro India:

This Birla group company is a diversified multi-divisional, multi-locational enterprise in the polymer processing sector. The packaging company’s latest m-cap is Rs 816 crore.

Product portfolio of the company includes BOPP films, Coex cast films, coex sheets among others.

The company enjoys leadership position when it comes to manufacturing packaging material for capacitors in India being only the single entity in the space. The surge in the stock price as detailed in a report is on the government’s supportive measure in relation to electronic manufacturing and hence given this the company has begin to see some profits for the last some quarters. So with improvement in cash flow, the company is on the path of cutting down its debt.

The stock of Xpro during the last 1-year has registered gains to the tune of 3145.54 percent. The stock last closed at a price of Rs. 691.3 per share. The upside in the stock price is likely to continue given the now scope of electric vehicles. Furthermore, as the government has corrected the inverted duty structure for the segment, there is expected more resilience into the space.

Disclaimer:

Disclaimer:

The stocks mentioned herein are just to provide an idea of how these stocks fared in the last one year. Note equities are highly expensive currently and one can take a buy on dip take on 5 percent correction in the future course.

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