13 Sep 2021
12 Sep 2021
For this week's analysis, we look at five stocks that:
1) have target price upgrades from analysts (within the past month)
2) outperformed the Nifty50 index over the past one month and
3) received multiple broker buy calls in the past one year.
Only 29 stocks qualify for all three criteria across the entire stock universe. We picked out some interesting ones:
Dalmia Bharat: This cement company has caught the attention of brokerages and is in Trendlyne's top screeners as well. It outperformed the Nifty50 by over 14% in the past one month and received five brokerage buy calls over the past year, as well as one target price upgrade in the past month. Geojit notes, "DBL’s strong capacity expansion plans to become a pan India player with 110-130MT by 2031 (48MT by FY24) while maintaining a strong balance sheet (target Net Debt /EBITDA <2x) supports valuation re-rating."
Apollo Hospitals: This healthcare company has been under the radar in the past year with Covid19 limiting patient access and voluntary treatments. But in the past quarter, it has outperformed the Nifty50, and also beat the index by 11% in the past month, and HDFCSec notes that, "With multiple growth drivers in place, Apollo is likely to report strong revenue/EBITDA CAGRs of 31%/52% over the next two years."
KNR Constructions: This construction company is gaining on expectations that it will benefit from the boost in government infrastructure spending. The stock outperformed the Nifty50 by over 3.5% in the past month. As of Jun’21 end, Axis Direct analysts point out, "the KNRCL order book stood robust at Rs 6,596 Cr (2.44x of FY21 revenue), comprising both road and irrigation projects. The current order book size reflects comfortable revenue visibility for the next 2-3 years."
FIEM Industries: This smallcap automotive light and indicator manufacturer has stolen the limelight after emerging as the sole parts supplier for Ola Electric in key products. This pivots this small player into the realm of larger suppliers, opening up to new orders just as the industry is ramping up, according to analysts. The company outperformed the Nifty50 by 34% the past month as investors jumped into the stock on the Ola news.
Oil India: Post result analysis of Oil India have been optimistic about its prospects, with the economic rebound. The company's stock was a muted performer over the past year but has seen a steady climb since May, and outperformed the Nifty50 by over 10.9% in the past month. Brokerages have given the stock three target price upgrades in the last month alone.
12 Sep 2021
Sobha: For the first time in FY22, this real estate company’s insiders are selling shares. And it’s not just any insider, but the company’s Managing Director. On September 3, JC Sharma, the Managing Director of Sobha sold 30,000 shares worth Rs 2.1 crore in an insider trade, during a week when the stock jumped over 30%. Then, on September 7, he sold another 8,000 shares for Rs 65.3 lakhs in another insider trade. The last time a promoter, promoter group, key managerial personnel, or an institutional investor sold the company’s shares was during the first Covid-19 wave in April 2020 when L&T Mutual Fund sold over 21 lakh shares (2.2% stake). Since then, the stock is up by 4.5X.
NOCIL: Brokers are gushing about this specialty chemical manufacturing company. Three brokerages — Axis Direct, Prabhudas Lilladher, and Motilal Oswal gave it a ‘Buy’ rating with an 11% target price. Axis Direct in a note expects the company’s rubber chemicals division to receive a boost due to the resurgent demand for tyres domestically. The average broker target price is at an upside of 26%.
Blue Dart Express: This logistics company’s stock is rallying with cheap valuations despite Superstar investors taking profits. In one month, the stock is up by nearly 16%. However, it remains historically cheap as its trailing 12-month price to earnings (PE) ratio is 58.5 times compared to an average PE of 85.5 times, putting it in the buy zone. In the June 2021 quarter, Radhakishan Damani’s Bright Start Investments sold 67,000 shares in the company, reducing its stake by 0.28% sequentially.
Apollo Hospitals Enterprise: This healthcare company’s promoters have resumed pledging shares. On September 6, the company’s promoter K Vishweshwar Reddy pledged 70,000 shares worth Rs 35 crore. This is the second time Reddy pledged the company’s shares in FY22. Back in April 2021, he pledged 2 lakh shares worth Rs 58 crore. In Q1FY22, 29.9% of the promoter’s shareholding was locked in pledges, a 200 basis points increase sequentially. This was the first time, promoter’s pledges increased sequentially since Q3FY20.
Greaves Cotton: This engineering company is set to strengthen its position in the electric vehicles market. On September 9, it launched a multi-brand retail store for electric two wheelers, three wheelers, and automotive components. The company already has a strong base in the electric scooter market through its wholly-owned subsidiary Ampere Vehicles. Brokerages value Ampere Vehicles at Rs 1,800 crore and expect it to generate Rs 400 crore in sales by FY23 or 20% of the company’s total expected revenue.
Trendlyne Marketwatch
09 Sep 2021
Nifty 50 closed at 17369.25 (15.8, 0.1%) , BSE Sensex closed at 58305.07 (54.8, 0.1%) while the broader Nifty 500 closed at 14836.45 (32.9, 0.2%)
Market breadth is in the green. Of the 1784 stocks traded today, 944 were gainers and 768 were losers.
Phoenix Mills, Sharda Cropchem, Emami, and Tata Consultancy Services are trading with higher delivery volumes compared to Wednesday.
Adani Ports & Special Economic Zone's promoters revoke 6 lakh pledged shares worth Rs 44.8 crore on Wednesday.
Alkyl Amines Chemicals' Managing Director Yogesh Kothari sells over 1 lakh shares in the company for Rs 42 crore in three insider trades on Tuesday.
UCO Bank is trading in the green with more than 18 times its weekly average trading volume. Chalet Hotels, Westlife Development, Gillette India, and SBI Life Insurance Company are trading with more than six times their weekly average trading volume.
ICICI Securities maintains a 'Buy' rating on Info Edge (India) with a 30% target price upside expecting volumes of 99 Acres and Jeevansathi to grow for the rest of 2021.
Greaves Cotton is trading higher as the engineering company announces its entry into the retail electric vehicle market under AutoEVMart, a marketplace for electric two-wheelers, three-wheelers, and accessories.
UCO Bank is rising as the Reserve Bank of India removes the public bank from its prompt corrective action (PCA) list. The RBI put the bank on the PCA list and imposed lending curbs in May 2017.
Hero MotoCorp's parent company Hero Motors Company expects to generate Rs 1,000 crore in revenues from exports due to demand for e-bikes, bicycles, and automotive components. The group expects to reach Rs 3,000 crore in export revenue by FY24.
Reports suggest SBI Life Insurance Company's institutional investor Canada Pension Plan is looking to sell a 2% stake in the life insurer for Rs 2,440 crore.
Oil And Natural Gas Corporation is rising as rating agency ICRA assigned a AAA credit rating to its long term debt worth Rs 7,500 crore.
Axis Securities maintains a 'Hold' rating on Gland Pharma with a target price upside of 3% due to the pharma company's foray into contract manufacturing of biosimilars and peptides.
Porinju Veliyath's Equity Intelligence India sells 7 lakh shares in Somany Home Innovation for Rs 25.5 crore in a bulk deal on Wednesday.
Nifty 50 was trading at 17338.80 (-14.7, -0.1%) , BSE Sensex was trading at 58133.37 (-116.9, -0.2%) while the broader Nifty 500 was trading at 14803.85 (0.3, 0%)
Market breadth is in the green. Of the 1676 stocks traded today, 1018 were on the uptick, and 571 were down.
Riding High:
Largecap and midcap gainers today include JSW Energy Ltd. (279.20, 4.98%), Adani Green Energy Ltd. (1215.95, 4.98%) and Adani Power Ltd. (102.55, 4.91%).
Downers:
Largecap and midcap losers today include SBI Life Insurance Company Ltd. (1173.20, -3.84%), ICICI Prudential Life Insurance Company Ltd. (696.70, -2.85%) and InterGlobe Aviation Ltd. (1911.60, -2.00%).
Volume Shockers
31 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Dish TV India Ltd. (17.90, 19.73%), Future Consumer Ltd. (8.05, 14.18%) and KPR Mill Ltd. (2280.70, 13.63%).
Top high volume losers on BSE were SBI Life Insurance Company Ltd. (1173.20, -3.84%), Westlife Development Ltd. (519.30, -0.96%) and Tanla Platforms Ltd. (878.10, -0.22%).
UCO Bank (14.20, 10.94%) was trading at 24.9 times of weekly average. Chalet Hotels Ltd. (186.10, 6.16%) and TTK Prestige Ltd. (9358.35, 7.95%) were trading with volumes 19.8 and 15.2 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
25 stocks made 52 week highs,
Stocks touching their year highs included - Abbott India Ltd. (20706.90, 3.56%), Adani Transmission Ltd. (1806.75, 4.23%) and Allcargo Logistics Ltd. (238.75, -2.13%).
15 stocks climbed above their 200 day SMA including Future Consumer Ltd. (8.05, 14.18%) and UCO Bank (14.20, 10.94%). 4 stocks slipped below their 200 SMA including CreditAccess Grameen Ltd. (689.95, -1.15%) and Hindustan Copper Ltd. (115.90, -0.90%).
09 Sep 2021
As economic activity ramps up, spending on two-wheelers is up. Since the peak of India's second Covid-19 wave, two-wheeler wholesales rose by nearly 82%.
However, the increase is not consistent across two-wheeler makers. For the market leader Hero MotoCorp, two-wheeler wholesales fell consecutively in July and August. But Bajaj Auto, TVS Motor Company, and Eicher Motors' Royal Enfield saw wholesales rise between May and August 2021.
Trendlyne Marketwatch
08 Sep 2021, 03:50PM
Nifty 50 closed at 17,353.50 (-8.6, -0.1%) , BSE Sensex closed at 58,250.26 (-29.2, -0.1%) while the broader Nifty 500 closed at 14,803.60 (19.4, 0.1%)
Market breadth is in the green. Of the 1,778 stocks traded today, 935 were on the uptrend, and 768 went down.
Elgi Equipments, AIA Engineering, Balrampur Chini Mills, and Gujarat Pipavav Port are trading with higher delivery volumes compared to Tuesday.
Ramkrishna Forgings wins orders worth Rs 130 crore from a foreign automobile original equipment manufacturer for a three year period.
Axis Direct maintains a 'Buy' rating on rubber chemicals maker NOCIL with a target price at an 11% upside expecting higher demand for tyres due to import restrictions.
Life Insurance Corporation of India reduces its stake in ICRA to 5.8% from 7.9% selling over 2 lakh shares in the rating agency in an insider trade on Tuesday.
Reports suggest Sterling and Wilson Solar's promoters are planning to sell part of their stake in the company to private equity funds and Indian conglomerates including the Adani Group and Reliance Industries.
Info Edge (India), Ujjivan Financial Services, Quess Corp, and Symphony are trading with more than three times their weekly average trading volume.
Cinema operators PVR and Inox Leisure appeal to the Maharashtra state government to reopen cinemas. The cinema industry faces a monthly loss of Rs 400 crore as cinemas in the state remain closed.
ICICI Prudential Mutual Fund sells 1.5 lakh shares (0.1%) of Bajaj Consumer Care in an insider trade on Monday. The mutual fund now holds 56.5 lakh shares constituting a 3.8% stake in the FMCG company.
PSP Projects' industrial engineering segment receives a letter of intent for an order worth Rs 132 crore in Gujarat.
Cipla seeks permission from the National Pharmaceutical Pricing Authority to hike prices for its respiratory drugs due to rising input costs.
Motilal Oswal maintains a 'Buy' rating on APL Apollo Tubes with a target price at an upside of 21% expecting demand for the company's steel tubes to rise because of higher consumption of steel by realty, infrastructure, and warehousing companies.
Embassy Office Parks REIT raises debt worth Rs 300 crore to refinance existing debt and to complete a commercial real estate project in Bangalore.
Sequoia Capital sells over 8 lakh shares of Stove Kraft for Rs 75.2 crore in a bulk deal on Tuesday. In another bulk deal on the same day, HSBC Global buys 5.3 lakh shares in the company for Rs 50 crore.
Nifty 50 was trading at 17,336.85 (-25.3, -0.2%) , BSE Sensex was trading at 58,272.98 (-6.5, -0.0%) while the broader Nifty 500 was trading at 14,784.90 (0.7, 0%)
Market breadth is in the green. Of the 1696 stocks traded today, 1059 were gainers and 564 were losers.
Riding High:
Largecap and midcap gainers today include Info Edge (India) Ltd. (6715.25, 8.60%), Oil India Ltd. (189.65, 5.10%) and Adani Power Ltd. (97.75, 4.99%).
Downers:
Largecap and midcap losers today include Vedanta Ltd. (298.95, -4.17%), Nestle India Ltd. (19839.60, -2.60%) and Vodafone Idea Ltd. (8.05, -2.42%).
Volume Rockets
20 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Info Edge (India) Ltd. (6715.25, 8.60%), VRL Logistics Ltd. (349.60, 8.50%) and KEI Industries Ltd. (825.90, 6.49%).
Top high volume loser on BSE was Mahindra CIE Automotive Ltd. (219.80, -1.77%).
Ujjivan Financial Services Ltd. (143.15, 3.92%) was trading at 8.6 times of weekly average. Quess Corp Ltd. (862.10, 3.71%) and Oil India Ltd. (189.65, 5.10%) were trading with volumes 5.4 and 4.9 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
31 stocks made 52 week highs, while 1 stock were underachiever and hit their 52 week lows.
Stocks touching their year highs included - Allcargo Logistics Ltd. (243.95, 5.38%), Bajaj Electricals Ltd. (1352.65, 0.83%) and Bharti Airtel Ltd. (667.85, -0.40%).
Stock making new 52 weeks lows included - Ujjivan Financial Services Ltd. (143.15, 3.92%).
15 stocks climbed above their 200 day SMA including Honeywell Automation India Ltd. (41510.20, 3.48%) and Kotak Mahindra Bank Ltd. (1815.35, 2.86%). 7 stocks slipped below their 200 SMA including Indus Towers Ltd. (235.85, -2.40%) and Infibeam Avenues Ltd. (43.80, -1.90%).
Trendlyne Marketwatch
07 Sep 2021, 03:50PM
Nifty 50 closed at 17362.10 (-15.7, -0.1%) , BSE Sensex closed at 58279.48 (-17.4, -0.0%) while the broader Nifty 500 closed at 14784.25 (-21.6, -0.2%)
Market breadth is sharply down. Of the 1768 stocks traded today, 562 showed gains, and 1151 showed losses.
Sundaram Clayton, Shoppers Stop, IIFL Wealth Management, and Kansai Nerolac Paints are trading with higher delivery volumes compared to Monday.
Axis Direct maintains a 'Buy' rating on Credit Access Grameen with a target price at a 10% upside because of the microfinance company's 92% collection efficiency in August 2021 an improvement from 81% collection efficiency in June 2021.
LIC Housing Finance partners with India Post Payments Bank (IPPB) to provide home loans to IPPB's 4.5 crore customers.
HDFC Bank signs a memorandum of understanding with the National Small Industries Corporation to provide credit to micro, small and medium enterprises companies.
Panacea Biotec is rising as the pharmaceutical company begins supplying 10 lakh doses of the Sputnik V Covid-19 vaccine.
DishTV is trading with nine times the weekly average trading volume whereas Ujjivan Financial Services, Mahindra Holidays & Resorts India, and Johnson Controls-Hitachi Air Conditioning are trading with more than three times their weekly average trading volume.
JSW Steel's crude steel output in August 2021 grows by 5% YoY to 13.7 lakh tonnes (LT) with an 8% decline in the production of flat-rolled products to 8.9 LT and a 30% increase in the production of long-rolled products to 3 LT.
Motilal Oswal maintains a 'Neutral' rating on HDFC Life Insurance Company with a target price at an upside of 2% expecting the life insurer's agency channels to improve following the acquisition of Exide Life Insurance.
State owner miner NMDC reduces prices of iron ore lumps and fines by Rs 1,000 a tonne to Rs 6,150 per tonne for lump ore and Rs 5,160 per tonne for fines.
Infosys says the Rs 9,200 crore buyback programme which started on June 25 is close to completion. The IT services company's board of directors will meet on September 8 to consider closing the buyback programme.
ICICI Direct maintains a 'Buy' rating on Adani Ports and Special Economic Zone with a 20% target price upside due to the port operator's aggressive expansion in warehousing to create an integrated logistics network.
DishTV's shareholder Yes Bank (holding a 25.6% stake) asks the DTH company to remove five directors including Jawahar Lal Goel, the Managing Director of the company.
Edelweiss Financial Services' raises Rs 400 crore through the issue of non-convertible debentures.
Nuvoco Vistas Corporation's Q1FY22 revenues decline by 16.2% YoY to Rs 2,203 crore with a 3X jump in net profits to Rs 114.3 crore. The cement maker listed at a 17% discount to the issue price last month.
Nifty 50 was trading at 17362.10 (-15.7, -0.1%) , BSE Sensex was trading at 58281.99 (-14.9, -0.0%) while the broader Nifty 500 was trading at 14792.15 (-13.7, -0.1%)
Market breadth is holding steady. Of the 1681 stocks traded today, 809 were on the uptrend, and 810 went down.
Riding High:
Largecap and midcap gainers today include Vodafone Idea Ltd. (8.25, 13.79%), Indian Railway Catering & Tourism Corporation Ltd. (3286.90, 9.26%) and Indus Towers Ltd. (241.65, 7.95%).
Downers:
Largecap and midcap losers today include Adani Power Ltd. (93.10, -5.00%), Adani Total Gas Ltd. (1334.25, -5.00%) and Bank of India (57.95, -3.26%).
Crowd Puller Stocks
23 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Dish TV India Ltd. (15.55, 13.09%), Indian Railway Catering & Tourism Corporation Ltd. (3286.90, 9.26%) and Indus Towers Ltd. (241.65, 7.95%).
Top high volume losers on BSE were Ujjivan Financial Services Ltd. (137.75, -10.00%) and Solar Industries India Ltd. (1731.00, -1.56%).
Rail Vikas Nigam Ltd. (31.50, 7.33%) was trading at 5.2 times of weekly average. Mahindra Holidays & Resorts India Ltd. (339.25, 4.37%) and Johnson Controls-Hitachi Air Conditioning India Ltd. (2234.20, 0.81%) were trading with volumes 5.0 and 4.7 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
39 stocks overperformed with 52 week highs, while 2 stocks tanked below their 52 week lows.
Stocks touching their year highs included - Ambuja Cements Ltd. (441.50, 0.73%), Asian Paints Ltd. (3336.25, 0.62%) and Bajaj Electricals Ltd. (1341.45, 2.85%).
Stocks making new 52 weeks lows included - Ujjivan Financial Services Ltd. (137.75, -10.00%) and Varroc Engineering Ltd. (277.70, 1.26%).
14 stocks climbed above their 200 day SMA including Indus Towers Ltd. (241.65, 7.95%) and LIC Housing Finance Ltd. (423.95, 4.73%). 5 stocks slipped below their 200 SMA including Manappuram Finance Ltd. (163.90, -2.61%) and Exide Industries Ltd. (185.85, -1.46%).
06 Sep 2021
Trendlyne Marketwatch
06 Sep 2021
Nifty 50 closed at 17,377.80 (54.2, 0.3%) , BSE Sensex closed at 58,296.91 (167.0, 0.3%) while the broader Nifty 500 closed at 14,805.85 (46.6, 0.3%)
Market breadth is horizontal. Of the 1,803 stocks traded today, 831 were on the uptrend, and 900 went down.
Gujarat State Petronet, Shoppers Stop, Garware Technical Fibres, and VST Industries are trading with higher delivery volumes compared to Friday.
Geojit BNP Paribas maintains a 'Buy' rating on Exide Industries with a target price upside of 24% expecting the company to focus on its core battery business after the sale of Exide Life Insurance.
Sobha's Managing Director JC Sharma sells 30,000 shares worth Rs 2.2 crore in an insider trade on Friday.
Jindal Steel and Power will complete the sale of its 96.4% stake in Jindal Power to Worldone for Rs 7,400 crore by December 2021.
VA Tech Wabag receives an order worth $11.5 million (Rs 84 crore) from construction engineering company Dialog's E&C to build a sewage treatment plant in Malaysia.
Barbeque-Nation Hospitality raises Rs 100 crore through the issue of preference shares to institutional investors. The investors include the Massachusetts Institute of Technology, Plan Associates, and Motilal Oswal Financial Services.
Axis Securities maintains a 'Hold' rating on Shree Cements with a target price downside of 6% due to the high valuations of the stock. The cement company's TTM PE is 42.7 times.
Asian Granito India's board of directors approve a rights issue worth Rs 225 crore during its meeting on September 4.
Life Insurance Corporation of India purchases 15.9 crore shares (3.9% stake) of Bank of India through a qualified institutional placement on Thursday.
Markets are up today morning. Nifty 50 was trading at 17415.20 (91.6, 0.5%) , BSE Sensex was trading at 58446.98 (317.0, 0.6%) while the broader Nifty 500 was trading at 14834.70 (75.4, 0.5%)
Market breadth is ticking up strongly. Of the 1729 stocks traded today, 1177 were in the positive territory and 459 were negative.
Riding High:
Largecap and midcap gainers today include Oberoi Realty Ltd. (817.90, 7.26%), Indian Railway Catering & Tourism Corporation Ltd. (3008.40, 4.83%) and Wipro Ltd. (686.45, 4.79%).
Downers:
Largecap and midcap losers today include Adani Power Ltd. (98.00, -4.99%), Adani Total Gas Ltd. (1404.45, -4.94%) and ICICI Lombard General Insurance Company Ltd. (1563.35, -4.07%).
Crowd Puller Stocks
18 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included Vakrangee Ltd. (44.45, 13.68%), Prestige Estates Projects Ltd. (479.45, 13.43%) and Caplin Point Laboratories Ltd. (838.80, 13.34%).
India Tourism Development Corporation Ltd. (393.15, 4.85%) was trading at 20.6 times of weekly average. Alok Industries Ltd. (24.35, 9.19%) and Sundram Fasteners Ltd. (862.85, 8.49%) were trading with volumes 12.0 and 10.3 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
48 stocks made 52 week highs,
Stocks touching their year highs included - ACC Ltd. (2472.75, 0.15%), Adani Transmission Ltd. (1724.55, -1.48%) and Ambuja Cements Ltd. (438.30, 0.27%).
11 stocks climbed above their 200 day SMA including Alok Industries Ltd. (24.35, 9.19%) and Multi Commodity Exchange of India Ltd. (1643.70, 3.19%). 5 stocks slipped below their 200 SMA including Gujarat Pipavav Port Ltd. (99.60, -2.02%) and Karnataka Bank Ltd. (60.20, -1.79%).
06 Sep 2021
Jubilant Foodworks: There's plenty to be jubilant about Jubilant Foodworks, according to Motilal Oswal, which gives the company an upside of 17% on a price target of Rs. 4830. "In addition to its delivery and value moat, Jubilant Foodworks is boosting its technological moat to enhance its lead over its QSR peers and aggregators," analysts Krishnan Sambamoorthy and team note. "Given the structural opportunities in the QSR space and JUBI's dominant positioning, with a proven and profitable model, we expect it to be the key beneficiary of favorable trends (shift towards branded players)."
Easy Trip: For ICICI Securities, this newly listed online travel platform is a buy, with a target price of Rs 600 - an upside of 25%. "It is the fastest growing and only profitable company among online travel portals in India," analyst Rashesh Shah writes. He notes key drivers of long term growth of Easy Trip and online travel: "(1) Increased adoption of internet platforms in under-penetrated segments such as hotels, international travel and buses, (2) growth in demand in air and hotel segments due to rising income levels and (3) deeper penetration of travel into lower tier towns."
Bajaj Auto: In the auto sector, it is Bajaj Auto that is speeding away with the prize, according to Axis, which gives the stock an upside of 13%+ on a target price of Rs. 4250. "Prudent cost management by the company led to margin expansion," analyst Darshan Gangar says, "BA’s exports business is doing better than ever, which helped it cover for the weakness in the domestic market. EV business and Triumph partnership will be the key future growth drivers moving forward."
Exide Industries: Geojit is bullish on this battery storage company, giving it an upside of 16% on a target of Rs. 220. "Despite 20% increase in the lead price for the quarter, stringent cost control measures led the PAT to grow by 185% YoY," analyst Saji John observes. "The overall demand scenario is showing sign of pick up due to cyclicality. We expect the margin to show some resilience going forward due to cost optimization." Some risks remain, however. "We factor 140bps lower margin from our early estimate due to lower supply of raw material and demand normalization in the after market segment."
Nazara Technologies: Prabhudas Lilladhar has pressed play on this gaming company, initiating coverage with a bullish buy call - an upside of 29% on a target price of Rs. 2342. Analysts Jinesh Joshi and Shweta Shekhawat write, "Nazara is India’s only listed gaming company with no competitive benchmarking. As business model is scalable and focus is on growth, we don’t rule out intermittent volatility in profitability."
But still, they insist, the company is a good investment. "We believe that a portfolio approach to gaming eliminates shelf life risks, as the business model can be altered depending on technological advancements and changing taste of consumers. With net cash balance sheet of Rs 4.8bn, Nazara has plans to expand its gaming portfolio inorganically which offers distinct option value."