Fall in crude prices by more than
20% has been a huge relief to the Indian equity markets. This will help the
market stabalise and address a lot of macro-economic concerns directly and
indirectly — like inflation, interest rates and
current account deficit, among others.
The retail inflation data has
been encouraging at 3.31% which is way lower than the RBI’s medium-term target.
This will give RBI room to hold interest rates.
The 10-Year bond yields have also
softened from the high’s of about 8.20% few months ago to 7.75% giving some
relief to the banking/NBFC sector.
We expect the Indian equity
markets to stabilise in November till the state election results are out in
early December.
Investors can accumulate quality
stocks like –
HDFC Bank | Rating: Buy | Target:
Rs 2,420
HDFC Bank reported steady Q2FY19
operational performance. NIM expanded ~10 bps QoQ and was flat YoY at 4.3%.
Core fee income growth at 26% YoY continued to remain strong deriving strength
from retail fees including cards, third-party insurance, other retail and cash
management.
Bank has continued to gain market
share in key businesses led by digital sourcing and deeper penetration
improving product delivery and cost control which has led the bank to reach
historic low C/I of 39.9% in Q2FY19.
HDFC Bank has raised Rs240bn of
fresh equity in H1FY19, which will support its loan growth in the coming years.
Further, we expect HDFC Bank to
be a major gainer of the current crisis in the NBFC space as it has
best-in-class liability franchises along with superior customer outreach across
business segments.
Asian Paints | Rating: Buy |
Target: Rs 1,471
The company has to its credit a
leadership position in its market, proven track record of adapting to changes
in market conditions, a professional management, history of innovative
strategies in marketing, efficient manufacturing and logistics in place and
prudent financial management.
In its latest financial results,
APNT has reported a growth of 8.8% in revenues at ₹46,391
million in Q2-FY19 as against ₹42,652 million in
Q2-FY18.
In terms of growth, we continue
to expect Indian paints industry to grow at around 8%-12% in next few years and
demand factors remain strong in terms of growth.
Aarti Industries | Rating: Buy |
Target: Rs 1,600
One of the global leaders in
benzene-based chemistry through its process chemistry and scale-up engineering
competencies, Aarti Industries’ revenue and profit are expected to grow at 20%
and 22% CAGRs over FY18-21, driven by scale-ups in its specialty chemical and
pharmaceutical businesses and the new toluene capacity.
For Q2 FY19, Aarti’s revenue shot
up 46.4% y/y to Rs. 1290 Cr, chiefly due to strong volume growth and the
increasing share of high-value products.
The specialty chemicals,
pharmaceuticals and home- and personal-care divisions brought respectively
80.0%, 14.8% and 5.2% to revenue. The good performance and higher capacity
utilisation boosted the EBIDTA margin 58bps y/y to 18.6%. Thus, due to the good
operational performance, PAT swelled 56.6% y/y to Rs. 120 Cr.
Its capex of ~Rs. 1700 Cr in the
next three years, strong operating performance of all divisions, focus on
R&D and strong relationships with clients would shift growth to a higher
trajectory in future.
It is too crucial that you put in and take out money from the stock on the right time. We at the ripples advisory help you in doing this with our Intraday tips.
Visit: www.ripplesadvisory.com
Contact us @ +91-9644405056
Source: Equitypandit
