Research

Infrastructure: Seven high-conviction stocks for you to pick

Highlights– Weak order inflow and slow execution marred Q2 performance– Companies hope to recoup growth in the second half– Strong order book provides robust revenue visibility– Our conviction stocks’s valuations are attractive, they offer highest revenue visibility For construction companies, the September 2019 quarter was a bummer because of weak order inflows and slower project execution …

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Ujjivan Small Finance Bank IPO

Highlights– The IPO is to comply with regulatory requirements– Better to play the journey of this bank through the IPO than bet on UFSL– Growing and diversified assets– Liability profile improving– Asset quality stabilising– Moderation in cost to income ratio a kicker for earnings Ujjivan Small Finance Bank (USFB) started off as a microfinance non-banking financial services company. …

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Mid-cap cement: Which stocks to pick?

Highlights– Industry volumes contracted in Q2 FY20– Cement prices softening amid weak demand– Input costs continue to trend downwards– Prefer cos with strong market position and healthy financials Strong demand from the infrastructure and housing industries drove cement volume growth in financial year 2018-19. However, FY20 started on a sombre note. Demand was subdued during …

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Tactical Pick | Jyothy Laboratories

Highlights– Strong operational performance in Q2 FY20– Excluding household insecticides, volume growth was 9.1 percent– Maintains a low double-digit sales growth guidance in FY20 In this edition of Tactical Pick, we are recommending Jyothy laboratories (JL). It has a strong presence in South India, particularly in dishwashing and fabric care segments, with a sizeable retail reach of 8 lakh …

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Railway engineering stocks could be good long-term compounding bets

Highlights– Railway engineering stocks offer huge potential for growth– Robust order book provides strong revenue visibility– Delivering strong revenue and earnings growth– Asset light business model with negligible debt– Plenty of cash in the books and strong return ratios Within the construction and engineering space, railways have been in a sweet spot, thanks to growing revenue visibility because of …

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After the corporate tax cut, this stock has been one of the best performers

Highlights–  Most of the new products will be premium–  Network expansion is under way–  Competition can impact margins –  The stock commands rich valuations Whirlpool, one of India’s major home appliance manufacturers-cum-retailers, reported a strong performance in the quarter gone by. Besides product innovations, a growing distribution network, benefits of tax reduction and a healthy …

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CSB Bank IPO to open on November 22; 10 things you need to know

Currently FIHM holds 8,62,62,976 equity shares, representing 50.09 percent of the paid-up equity share capital of the bank. Kerala-based private sector lender CSB Bank (earlier known as The Catholic Syrian Bank) will launch its initial public offering for subscription on November 22. The anchor investor offer period will be one working day prior to the IPO opening …

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Market paradox: Nifty near all-time highs; valuations stretched; growth at multi-year lows

There is a strong possibility of mean reversion for valuation multiples The Nifty is once again on its way to reclaim the 12,000 mark and is within touching distance of lifetime highs. On the other hand, the September quarter corporate earnings were disappointing, leading to renewed pessimism over earnings growth. At the macro level, there …

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