All stories by Ram Prasad Sahu
El Nino effect: Agrochem companies may face near-term headwinds
Rediff.com6 Mar 2023Domestic-focused agricultural chemical (agrochem) companies could face near-term headwinds, given the worries on the El Nio effect on monsoons, higher inventory, and pressure on margins. Some of these were reflected in the October-December quarter (third quarter, or Q3) results of companies and may impact them in the current quarter (fourth quarter, or Q4) as well. Nuvama Research pointed out that the sector witnessed mixed performance during the quarter as global agrochem and domestic fertiliser companies maintained growth momentum, while adverse agronomical conditions and excess channel inventory weighed on domestic market volume offtake.
Why stocks of listed REITs are risky bets in the near term
Rediff.com28 Feb 2023In addition to the negative sentiment as a consequence of changes announced in the Union Budget 2023-24 concerning tax treatment for debt repayment distribution, concerns about hiring slowdown and its leasing impact, as well as higher interest rates, could blight the sector in the near term.
After record store additions in Q3, Metro Brands' growth outperformance may continue
Rediff.com29 Jan 2023The country's largest listed footwear brand by market capitalisation, Metro Brands, posted better than expected December quarter results for the 2022-23 financial year (FY23), riding on store expansion and strong same store sales (SSS) growth. Profitability too remained robust, even as net profit growth was marginally lower. The company, which retails across the Metro, Mochi, Walkway, Crocs and Fitflop formats, posted a 24 per cent growth in revenues over Q3FY22.
TVS Motor vrooms past peers in July-Sep quarter
Rediff.com21 Nov 2022Riding on an improved show across parameters, TVS Motor (TVS) outperformed larger two-wheeler peers Hero MotoCorp (Hero) and Bajaj Auto (Bajaj) during the September (Q2 of FY23) quarter. The Chennai-based firm, which has the most-diversified portfolio among two-wheeler majors, posted a 28 per cent jump in revenues. This compares to 18 per cent growth for Bajaj Auto and single-digit uptick for Hero MotoCorp.
TVS Motor roars past Hero MotoCorp in market capitalisation
Rediff.com13 Oct 2022TVS Motor Company, on Wednesday, overtook Hero MotoCorp in terms of market value to become the sixth-largest automobile company on market capitalisation. he former's m-cap now stands at Rs 51,681 crore to the latter's Rs 50,951 crore. Bajaj Auto, with Rs 104,872 crore, is the only two-wheeler manufacturer in the top five. Shares of TVS have rallied 73 per cent this year while shares of Bajaj and Hero have risen only 3 per cent and 10 per cent, respectively. While sales, net profit and market share of TVS are lower than that of Bajaj and Hero, there are multiple triggers for the company.
Two-wheeler stocks may enter the fast lane riding on recovery hopes
Rediff.com2 May 2022The two-wheeler sector has been underperforming its peers on the volumes front for over five quarters now. Even in the March quarter, Bajaj Auto and Hero MotoCorp posted a 17-24 per cent YoY decline in volumes, the sharpest in the listed auto universe. The ongoing impact of frequent price hikes, all-time high fuel prices, and muted rural sentiment has led to the lacklustre showing by two-wheeler makers. What has aggravated the situation for two-wheeler companies, which get almost all their sales from the internal combustion engine or ICE-based units, is the traction for electric two-wheelers (EV).
Stocks of apparel retailers are in fashion
Rediff.com11 Apr 2022Led by Trent, which hit its lifetime-high recently, apparel retailers have gained between 10 per cent and 36 per cent over the past three weeks. Given the network of physical stores, these stocks shall be major beneficiaries of the unlock theme, with most states doing away with Covid restrictions. Amid improving footfall, analysts expect the sector to post double-digit growth in FY23.
Near-term worries will keep HUL stock under pressure
Rediff.com3 Apr 2022There are multiple near-term worries for the stock of India's largest listed consumer company, Hindustan Unilever (HUL). While inflationary pressures will weigh on its profitability, demand pressures - especially in the rural market - are expected to hit the firm's revenues. This is why brokerages have cut the earnings estimates for financial year 2022-23 (FY23) by 7-10 per cent.
With return to office, real estate investment trusts expected to do well
Rediff.com21 Mar 2022Distribution yields could rise, but risk of Covid, higher interest rates remain.
Analysts see more pain ahead for auto firms
Rediff.com15 Mar 2022What has hit sentiment further is a draft proposal by the government to increase vehicle insurance premiums for financial year 2022-23 (FY23). Third-party motor insurance premiums have not been increased over the last two years and if this is approved, insurance costs for specific segments could rise by a fifth. The worst impacted is the 350cc and above two-wheeler segment, where premiums are up 21 per cent. Royal Enfield (Eicher Motor) is the market leader in the segment. The premiums in the 150-350cc two-wheeler category are also being inc
Analysts bullish about Tata Motors' domestic business
Rediff.com26 Jan 2022Tata Motors' UK-based subsidiary, Jaguar Land Rover or JLR, reported a muted operational performance in the December quarter of financial year 2021-22 (Q3FY22). The luxury carmaker saw a 33 per cent year-on-year (YoY) decline in wholesale volumes to just under 70,000 units in Q3, against estimates that were 16 per cent higher. The drop in despatches to dealers was on account of shortage in semiconductors.
Why Godrej Consumer stock may remain under pressure
Rediff.com22 Nov 2021A weak margin outlook in the near term and lack of fresh triggers may keep the Godrej Consumer Products (GCPL) stock under pressure. The stock, after tepid September quarter (Q2) results and marginal downward revision in earnings estimates, declined 3.5 per cent in trade on Friday. Though consolidated sales of the company, which owns the Goodknight and Cinthol brands, grew 8.5 per cent year-on-year (YoY), its operating profit declined because of the sharp contraction in margins.
Infosys, L&T are top picks of most brokerages for Samvat 2078
Rediff.com12 Nov 2021Despite unprecedented levels of uncertainty in Samvat 2077, investors have little to complain about on the returns front. The BSE Sensex delivered returns of 38 per cent in this period, while the Nifty registered a return of over 40 per cent. As is the case in bull markets, companies in the small- and mid-capitalisation basket outperformed the benchmarks, with returns almost twice those of frontliners.
'Expect things to get normal for multiplexes by Q4FY22'
Rediff.com2 Nov 2021'Multiplexes will thrive by Q4 if 100% capacity is restored and a third Covid wave doesn't happen.'
Global operations key trigger for Godrej Consumer
Rediff.com14 Apr 2021While domestic market growth is important, the sales trajectory in the international markets, which account for 45 per cent of the revenues, will be a key rerating trigger, say analysts.
Burger King India IPO: Street is bullish about its long-term growth
Rediff.com11 Apr 2021Near-term prospects hinge on the progress of the second wave of Covid-19. A lockdown will dent prospects as 60 per cent of revenues come from the dine-in segment.
Route Mobile IPO: Company's signal stays strong on surge in Cloud adoption
Rediff.com11 Apr 2021The gains came on expectations that the company will post strong growth given its presence in application to peer services and the fast-growing communication platform as a service segment.
For ITC, the key growth driver will be packaged foods
Rediff.com8 Apr 2021Given the expectations of growth in the packaged foods segment, the company seeks to become a Rs 1-trillion FMCG business by FY30.
Two stocks to watch out for in the near term
Rediff.com3 Apr 2021Check out some of the stocks that will react on the basis of their numbers in the near term.
Invest in Aurobindo Pharma only for a long term
Rediff.com22 Feb 2021The focus of the company would be to develop its capability across segments of injectables, vaccines, biosimilars, inhalation and APIs to drive growth.