Free Share Market Tips Today: Stop & Read Before You Invest In Stocks
Mar 20, 2019 | 12:04 PM IST
Mar 20, 2019 | 12:04 PM IST
Various popular stock market news portals and TV channels discuss trending stocks and provide free share market tips based on technical charts and often without in-depth research. Our research desk analyses these trending stock market tips and provides their 360-degree analysis in a single place so you can avoid making wrong decisions with your hard earned money. Here are the share market tips for holding duration of around six months.
Disclaimer: Stocks and opinions below are for informational purposes and shouldn't be taken as a final advice from Niveza India. You shouldn't rely on this free advice solely and do your own research to arrive at the final conclusions. Our final stock recommendations are sent via SMS and Email to paid subscribers of Our Premium Products.
Share Market Tips For 20th March 2019
Just Dial Ltd. (NSE: JUSTDIAL) (Share Price : Rs.612.50): Avoid
Valuation: Fairly-Valued stock with TTM PE of 22x.
Reasons to avoid: JD could be under-investing in A&P (Advertising and Promotion) in contrast to the aggressive cash-burns by most of domain-specific apps. Due to this it will effect on its product/service categories where it is used by their consumers and that affecting the extant paid-client base. We believe in coming quarter earnings revision cycle will likely to be weak as revenue growth will remains muted. Furthermore, major risk in long-term for JDs revenues/business model remains the growing generic search capabilities of Google + direct web-presence by medium/small enterprises with the falling costs of setting up websites. Thus, given the Q3 performance and the recent buy-back from the company are already priced-in the stock. One can avoid the stock and sell at higher levels.
Financial: On the financial front in Q3FY19 Net Sales was Rs 226.78 crore vs Rs. 196.79 crore in Q3FY18 up 15.24%. Net Profit at Rs. 57.34 crore in Q3FY19 vs Rs. 28.60 crore in Q3FY18 up 100.49%. Whereas, EBITDA stands at Rs. 89.29 crore in December 2018 up up 81.74% from Rs. Rs. 49.13 crore in December 2017.
Share Market Tips For 18th March 2019
Dish TV India Ltd. (NSE: DISHTV) (Share Price : Rs.40): Avoid
Valuation: Fairly-Valued stock with TTM PE of 22x.
Reasons to avoid: Company has posted good number in Q3 but it is un-comparable due to its merger with videocon d2h. The main threat to company is Jio, which had announced plans to enter the cable broadband and IPTV space, strengthened its distribution reach by acquiring a majority stake in two of the MSOs Hathway Cable and Network. The deal gave Jio access to 24 million households and 27000 LCOs. We believe this is a major breakthrough for last mile connectivity and that will effect on the ARPU's of the dish tv and shift in subscriber base. With, high promoter pledge (84% of promoters stake is pledged) is also a cause of concern as we have already seen recent carnage in the stock due to this.
Financial: On the financial front in Q3FY19 Net Sales was Rs 1517.45 crore vs Rs. 740.77 crore in Q3FY18 up 104.85%. Net Profit at Rs. 161.66 crore in Q3FY19 vs Rs 3.58 crore in Q3FY18 up 4615.64%. Whereas, EBITDA stands at Rs. 529.71 crore in December 2018 up 144.87% from Rs. 216.32 crore in December 2017. The numbers have been un-comparable due to merger with Videocon d2h.
Share Market Tips For May 2018: 3rd Week
Jubilant Foodworks Ltd. (NSE: JUBLFOOD) (Share Price : Rs.1332): Avoid (10 Steps To Pick The Best Stocks)
Valuation: Overvalued valued stock with TTM PE of 56x.
Reasons to avoid: Company has delivered strong Same Store Sales growth (SSSG) of 14.6% in Q3FY19 with dunkins becoming profitable in this quarter which has supported margins in the overall business. Domino's market share in Pizza is likely to be remain at 70%. But recent announcement of the management of Jubilant Group to charge 0.25% royalty on Jubilant brand from FY20 which have dampened its corporate governance issue. Nevertheless, it has reversed its decision of royalty payment after facing severe criticism from analyst community but still it will have negative impact on the stock in near term. Considering all the positive factor has discounted in the stock at these level with TTM PE 56x which is quite expensive and with recent launch of Hong's Kitchen (Chinese cuisine segment) it will also put pressure on margins in near term. So, one can avoid a stock at these levels.
Financial: On the financial front in Q3FY19 Net Sales was Rs 929.05 crore Vs Rs. 795.17 crore in Q3FY18 up 16.84%. Net Profit at Rs. 96.51 crore in Q3FY19 vs Rs. 66.02 crore in Q3FY18 up 46.17%. Whereas, EBITDA stands at Rs. 184.38 crore in December 2018 up 31.5% from Rs. 140.21 crore in December 2017.
NTPC Ltd (NSE: NTPC) (Share Price : Rs.148.50): Potential Buy
Valuation: Under-Valued stock with TTM PE of 12x.
Reasons to consider: NTPC reported Q3 numbers wherein revenues came at Rs 24120.4 crore in Q3FY19 vs Rs 20774 crore in Q3FY18. On an operational basis, gross power generation grew 3.4% at 70 (BUs) Q3FY19 vs 67.7 (BUs) Q3FY18. Whereas, energy sold grew 3.1% YoY to 65.3 (BUs) Q3FY19 vs 63.4 (BUs) Q3FY18. PLFs of coal plants were at 77.7% vs 76.9% in Q3FY18. As on 9MFY19, the companys commercial capacity was at 44185 MW. Average tariff for 9MFY19 was at Rs 3.47 / Kwhr. Fuel cost per unit during Q3FY19 was at Rs 2.17 / unit vs Rs 2.04 / unit QoQ.
Key Drivers: Management in concall stated in the coming quarter the under-recovery figure will improve as losses from its Unchahar plant will now be contained and the plant has re-started its operations from Dec 2018. It currently has 21,071MW under construction power project out of which it plans to capitalize 4-5GW of capacity each year for the next 4 years which will lead to strong growth in its regulated equity base. NTPC is also planning to add around 10GW of solar capacity in next 3 years.
Financial: In Q3FY19 Net Sales was Rs 24120.4 crore Vs Rs. 20774 crore in Q3FY18 up 16%. Net Profit at Rs. 2385 crore in Q3FY19 up 1% from Rs. 2361.7 crore in Q3FY18, whereas EBITDA stands at Rs. 6580 crore in Q3FY19 vs Rs. 5277 crore in Q3FY18 up 25%.
Mahanagar Gas Ltd. (NSE: MGL) (Share Price : Rs.897): Potential Buy
Valuation: Fairly-Valued stock with TTM PE of 17x.
Reasons to consider: Mahanagar Gas Ltd. (MGL) reported revenues of Rs 752 crore in Q3FY19 and volume growth at 8% YoY for Q3FY19. Whereas, CNG segment grew at 8%YoY, while total PNG growth stood at 7% YoY . Within PNG, domestic volume grew at 13% YoY. After EBITDA/scm of Rs 8.1 in 6MFY19, the same grew to Rs 8.8 in the quarter.
Key Drivers: With MGLs fundamental growth story in place and a positive sectoral outlook, the company can deliver a strong performance with govts continued focus towards the use of cleaner fuels. The Discounted prices of CNG as compared to alternative fuels (petrol, diesel) makes it preferable. And thereby expected to aid the conversions to CNG. Further, to address the lower penetration, management has putting efforts and aiming to accelerate it with recent critical approvals for Raigad regions. Moreover, MGL's revised CapEx guidance to Rs 375 crore suggests its optimistic plans towards penetrating aggressively in tier 1 & tier 2 cities.
Financial: Net sales of Rs 752.68 crore in Q3FY19 vs Rs. 581.41 crore in Q3FY18 up 29.46% YoY. Net Profit at Rs. 148.32 crore in Q3FY19 vs Rs. 123.98 crore in Q3FY18 up 19.63% YoY whereas, EBITDA stands at Rs. 259.48 crore in Q3FY19 vs Rs. 215.03 crore in Q3FY18 up 20.67% YoY.
Bata India Ltd. (NSE: BATAINDIA) (Share Price : Rs.1340): Potential Buy
Valuation: Over-valued stock with TTM PE of 58x
Reasons to consider: Bata India Ltd had posted a strong performance in the December quarter with revenues growing 15.5 percent to Rs 778.7 crore YoY and net profit higher by 51.3 percent to Rs 103.2 crore YoY. It has reported double digit revenue growth with Same Store Sales Growth(SSSG) grew 12% for the quarter and margins for the quarter improved significantly by 350 bps to 58.6% YoY.
Key Drivers: Company efforts towards premiumisation of product portfolio yielded better operating margins and will remain better in coming quarter. It has concentrated on redesigning of its existing store model with specific focus on various categories like sports, youth and women which will drive the growth in coming quarter. Management has a plan to add 150 stores in FY19 (100: COCO, 50: franchisee)
Financial: In Q3FY19 Net Sales was Rs 779 crore Vs Rs. 674 crore in Q3FY18 up 15.5%. Net Profit at Rs. 103 crore in Q3FY19 up 51.3% from Rs. 68 crore in Q3FY18, whereas EBITDA stands at Rs. 163.6 crore in Q3FY19 vs Rs. 111.5 crore in Q3FY18 up 46.8% & EBITDA Margins at 21% in Q3FY19 vs 16.5% in Q3FY18 up 447bps.
Share Market Tips For March 2019: 2nd Week
Hindustan Unilever Ltd. (NSE: HINDUNILVR) (Share Price: Rs.1700): Potential Buy
Valuation:Overvalued stock with TTM PE of 62x.
Reasons to consider: Hindustan Unilever (HUL) reported robust set of numbers with revenue growth of 11.3% YoY on the back of 10% volume growth. The strong volume growth has been mainly on account of healthy growth witnessed across all segments with addition of new launches which gaining traction. Home care (33% of revenue), personal care (47% of revenue) and foods & refreshments segments (18% of revenue) grew 14.8%, 11% and 9.9%, respectively. Due to healthy sales growth and strong margins, net profit for the quarter grew 8.9% YoY to 1444 crore
Drivers: HUL continued its focus on innovations in Q3FY19 with the launch of RS 10 packs in a number of beauty and personal care products and the relaunched of Lifebuoy & Dove. In the foods & refreshments segment, HUL launched Magnum Hazelnut in select markets. The company is now premiumising its range of water purifiers as demand is shifting towards RO, UV and is planning to gradually phase out its gravity segment water purifiers. On top of all the HUL-GSKCH merger would bring in significant synergy benefits to the company going forward. On the herbal space product (HUL) would be able to deliver superior growth as it has embarked Ayush brand in the mass segment across categories like toothpaste, facewash, shampoo, conditioner, etc.
Financial: In Q3FY19 Net Sales was Rs 9558 crore Vs Rs. 8590 crore in Q3FY18 up 11.3%. Net Profit at Rs. 1444 crore in Q3FY19 up 8.9% from Rs. 1326 crore in Q3FY18, whereas EBITDA stands at Rs. 2046 crore in Q3FY19 vs Rs. 1680 crore in Q3FY18 up 21.8% & EBITDA Margins at 21.4% in Q3FY19 vs 19.6% in Q3FY18 up 185bps.
Relaxo Footwears Ltd. (NSE: RELAXO) (Share Price: Rs. 755.75): Potential Buy
Valuation: Overvalued valued stock with TTM PE of 52x.
Reasons to consider: Relaxos Q3FY19 revenues jumped 20.6% YoY to Rs 551 crore. Due to strong volume growth we have seen 20% increased in revenue during the quarter. For the seventh consecutive quarter, Relaxo has reported double digit volume growth. The company continues to witness better growth compared to its peers. Management focusing on addition of new stores with increasing distribution reach and premiumization will benefit to gain a market share in coming quarter but also put pressure on the margins in near term.
Key Drivers: Management remains optimistic about the growth in domestic footwear industry and believe that the structural reforms like GST would help the organized sector to grow in the coming quarters. Due to implementation of GST, organized sector would continue to outperform and Relaxo being a market leader in the economy category will be the key driver for the stock. The contribution of mid category would grow for the company, going ahead (15% to 20%).
Financials: In Q3FY19 Net Sales was Rs 551 crore Vs Rs. 457 crore in Q3FY18 up 20.6%. Net Profit at Rs. 35.6 crore in Q3FY19 down 6.7% from Rs. 38.2 crore in Q3FY18, whereas EBITDA stands at Rs. 72.7 crore in Q3FY19 vs Rs. 71.9 crore in Q3FY18 up 1.1%.
Bharat Electronics Ltd. (NSE: BEL) (Share Price: Rs. 91.50): Potential Buy
Valuation: Under-Valued stock with TTM PE of 11x.
Reasons to consider: Bharat Electronics Ltd. (BEL) is a Navaratna enterprise having 37% market share in Indian Defence Electronics and has strong order book. Its core business are in radar & weapons systems, defence communication & electronic warfare. Recently, company declared its third quarter result which beats the analyst estimates on all front due to strong operational performance and order execution of EVM & VVPAT.
Key Drivers: BEL is well positioned to benefit from the rising defense expenditure, supported by strong manufacturing base with current capacity utilization of 60%. An strategic collaboration with foreign technology partners for new product development will also benefit company in coming quarters. Company spends (9.0%) on R&D of its total revenues which will help them to develop innovative product in defence. Whereas, Order book of Rs 48,400 crore at end Q3FY19 looks healthly and provides strong revenue visibility.
Financials: In Q3FY19 Net Sales was Rs 2716 crore Vs Rs. 2506 crore in Q3FY18 up 8%. Net Profit at Rs. 508 crore in Q3FY19 up 68% from Rs. 303 crore in Q3FY18, whereas EBITDA stands at Rs. 785.74 crore in Q3FY19 vs Rs. 494.40 crore in Q3FY18 up 59%.
JET AIRWAYS Ltd. (NSE: JETAIRWAYS) (Share Price: Rs. 232): Avoid
Valuation: Overvalued stock with negative earnings.
Reasons to avoid: The company is posting negative earnings continuously for the last four quarters. The company is having a high debt of Rs 9600 crores on balance sheet as of 9MFY19. On top of that, recently it has added debts of Rs.225 crore by pledging fixed deposits worth Rs.1500 crores with SBI. Though this Pledging can solve short term liquidity crunch of the company but weakens its leverage status. Currently, jet airways not paying salary to its employees to control cost. Which further led to the downgrading by ICRA in Jan-19.
Financials: On the financial front in Q3FY19 Net Sales was Rs 6148 crore Vs Rs. 6086 crore in Q3FY18 up 1%. Net Loss at Rs. 588 crores in Q3FY19 from profit of Rs. 165 crore in Q3FY18. The company posted negative operating margins of (4%) in Q3FY19 compared to positive operating margin of 9% in Q3FY18 whereas, In Q3FY19 interest cost also increased by 15% to Rs 257 crore.
Asian Granito India (NSE: ASIANTILES) (Share Price : Rs.176.65): Potential Buy
Valuation: Fairly-Valued stock with TTM PE of 16x.
Reasons to avoid: AGL is one of the top three market players in the Tiles & Ceramics business. The company has PAN India presence with 289 exclusive showrooms. Its continuing focus on the retail segment by launching a new product in its high margin segment marble & Quartz is expected to drive margins for the company. Improving demand and management guidance further adds earnings and margin visibility of the business. AGL has posted a robust revenue and profitability growth of 15% and 25% coupled with ROCE of 16% and ROE of 13% in the past 5 years. The stock is technically trading at the bottom levels.
Key Drivers: The well-diversified business among government and institutional clientele and the increased focus on the retail business remains one of the key drivers of the business. Moreover. Tiles and ceramic segments are expected to get a boost from the governments initiative to build 20 million affordable houses under PMAY
Financial: In Q3FY19 Net Sales was Rs 296.22 crore Vs Rs. 263.78 crore in Q3FY18 up 12.3% YoY. Net Profit at Rs. 4.63 crore in Q3FY19 down 60.4% YoY from Rs. 11.70 crore in Q3FY18, whereas EBITDA stands at Rs. 24.98 crore in Q3FY19 vs Rs. 36.96 crore in Q3FY18 down 32.41% YoY.
Share Market Tips For March 2019: 1st Week
Century textile and Industries Ltd. (NSE: CENTURYTEX) (Share Price: Rs.836): Potential Buy (10 Steps To Pick The Best Stocks)
Valuation: Undervalued with TTM PE of 16.89x.
Reasons to consider: Diversified business in Textile, Cement, Paper, Pulp, Real-estate. Company focusing on reducing debt by de-merging its cement business to Ultratech. Management planning on core business by planning capex in the Paper segment over the next two years.
Drivers: De-leveraging and de-merging bode well for company growth. Leasing income and ownership of high land parcel play well in the real estate segment. Capex in the paper segment goes with a high demand for the sector.
Financial: Total Revenue was Rs 951 cr in Q3FY19. Net Profit was Rs 134 cr in Q3FY19 up 50% YoY while EBITDA was Rs 279 cr in Q3FY19 vs Rs 252 cr in Q3FY18 up 11% and EBITDA margins were 27% in Q3FY19 up 500 bps YoY. In this quarter EPS was seen at Rs 12.02 compared to Rs 8.05 in the same quarter previous year.
Ashok Leyland Ltd. (NSE: ASHOKLEY) (Share Price: Rs.87): Avoid
Valuation: Undervalued stock with TTM PE of 13.55x.
Reasons to avoid: Auto sector is experiencing drag down in volume amid low demand. Decline in a volume of M & HCV by 17% led to revenue impact by 15% YoY in the current quarter. Margins are also expected to decline over higher raw material cost and low volume base.
Financial: In Q3FY19, revenue down by 20.7% QoQ and 12.1% YoY. EBITDA margin compressed by 56 bps QoQ and 105 bps YoY. PAT down by 28.2% QoQ and 24.4% YoY.
JK Lakshmi Cement Ltd. (NSE: JKLAKSHMI) (Share Price: Rs.328): Avoid
Valuation: Overvalued with TTM PE of 55.04x.
Reasons to avoid: The company not able to withstand the higher cost of freight and power & fuel cost which results in EBITDA margin compression by 78 bps. Also, higher RM price due to clinker purchase from outside and rise in maintenance cost affected the margin. Meanwhile, short term blip is expected due to elections on ongoing infra projects which can affect demand in peak season.
Financial: In Q3FY19, net sales up 11.7% YoY. EBITDA margin stood at 10.5%. PAT stood at Rs 14.8 crores
CG Power and Industries (NSE: CGPOWER) (Share Price: Rs.37): Avoid
Valuation: Higher valued stock with negative earnings.
Reasons to avoid: The company is posting negative earnings quarter after quarter. The company delivered negative margins in the last few quarters. Promoter holding low and promoters have pledged the entire 100% of their holdings. This is a complete trading stock. Too much volatile.
Financials: The company has posted stable revenue growth in FY18. But growth on the expense side was much higher. The company posted operating margins of -5%. Interest cost is nearly tripled in the last couple of years from Rs. 80 crore to Rs. 220 crore. On the balance sheet side, reserves are going down while borrowings are increasing. Fixed assets are decreasing. Cash flows were negative for the year 2018.
Share Market Tips For February 2019
Share Market Tips For February 2019: 4th Week
Timken (NSE: TIMKEN) (Share Price: Rs.541.95):Potential Buy (10 Steps To Pick The Best Stocks)
Valuation: Fairly Valued at TTM P/E 33.81x.
Reasons to consider: Timken India (TIL) reported strong Q3FY19 numbers. TIL is now reporting merged entity numbers, i.e. Timken + (erstwhile) ABC Bearings.TIL has executed capex for railway bearings and tapered railway bearings at a cost of Rs.125 crore and Rs. 64 crore, respectively. Both capacities are now operational. In the railway segment, TIL expects new opportunities to open up in the passenger coach segment.
Drivers: Indian Railways is planning to outsource maintenance of bearings for existing wagons/locomotives to large OEMs. TIL being a frontrunner in this space, intends to capitalise on this as well.
Financial: On the financial front the revenues came in at Rs.384.9 crore, up 38.1% YoY.Gross margins were at 45.6% vs. 36.9% YoY. EBITDA margins were at 14.4% vs. 7.4 YoY. Gross margins, EBITDA margins were lower in Q3FY18 due to a change in product mix and high input prices during the quarter.Accordingly, absolute EBITDA and PAT grew 168.1% and 188.2% to Rs. 55.6 crore and Rs. 26.4 crore, respectively.
Bharat Forge (NSE: BHARATFORG) (Share Price: Rs.479): Potential Buy
Valuation: Fairly Valued with TTM P/E 24.97x
Reasons to consider: The management highlighted completion of two greenfield facilities in India that have the potential to achieve | 1000 crore of sales in next three years. BFL continues to focus on new technology and is well equipped to adapt to changing industry dynamics (mainly lighter vehicles) due to stringent emission control norms, EV space, usage of aluminium in PV and upcoming defence & aerospace opportunity.
Drivers: The company has a strong order backlog with class 8 trucks production expected at ~335,000 units in CY19E over ~325,000 units in CY18. This will ensure double digit topline growth will sustain, going forward.
Financial: On the financial front, the revenue for the quarter Q3Fy19 has jumped 21.7% to Rs.1692.5cr. It has reported a healthy profit of 35.9% to Rs.309.8cr from Rs 228 crore in same period last year.Domestic revenue in Q3FY19 grew by 17 percent YoY to Rs 673.9 crore and exports increased by 25 percent to Rs 975.5 crore.
Ashok Leyland (NSE: ASHOKLEY) (Share Price: Rs.79.30) (Share Market tips): Avoid
Valuation: Undervalued with TTM P/E 12.52x.
Reasons to avoid: The revenue has declined due to reversal in the MHCV sales cycle.The domestic MHCV industry volumes fell 11% in Nov18-Jan19, compared with a 22% increase in YTD FY19. This decrease was attributed to surplus capacity with fleet operators, deferment of purchases during elections, increasing cost of ownership, and a high base.Ashok Leyland has lost its share from 34.2% in FY18 to 32.5% in FY19 YTD.
Financial: On the financial front the revenue for the quarter Q3Fy19 has drastically declined by 15.26% YoY to Rs.6245.21cr. Its net profit has declined by 21.44% to Rs.381 cr YoY. Operating profit margins for Q3FY19 contracted 140 bps y-o-y to 10.3%, pushing down the Ebitda (earnings before interest, tax, depreciation and amortisation) by 22.5% y-o-y to Rs.650 crore.
Share Market Tips For February 2019: 3rd Week
Tata Steel (NSE: TATASTEEL) (Share Price: Rs.465.80): Avoid
Valuation: Undervalued with TTM P/E 3.22x
Reasons to avoid: TATA has highly profitable operations in India, but its capital allocation and the track record of turning around acquired assets have been poor. Both Bhushan Steel and Usha Martins steel business acquisition has been expensive, which will drag earnings for years.Recent loss of iron ore production at Vale post breach of tailing dam has pushed up iron ore and scrap by 15-20%, which will eventually move steel prices higher on the slightest recovery in steel demand and can drive up the stock for some time, but it is unlikely to be sustainable. Hence we urge investors to avoid the particular scrip.
Financial: On the financial front the revenue for the quarter Q3Fy19 grew by 24.5% yoy to Rs41,220cr,EBITDA stood at Rs6,734cr, up 16.4% yoy.EBIDTA margin fell by 115bps yoy to 16.3%. Adjusted Net Profit stood at Rs1,714cr .Net debt at the end of Q3FY19 stood at Rs1.01 lakh cr with cash and current investments at Rs8,549cr.
Apollo Hospitals (NSE: APOLLOHOSP) (Share Price: Rs.1119.15): Potential Buy
Valuation: Fairly valued with TTM P/E 54.78x
Reasons to consider: The company is expected to benefit from the capex (addition of ~2,500 beds, 30% of its current capacity) it completed over FY14-17. While 11 new hospitals are yet to breakeven, its existing hospitals enjoy RoCE of 21.6%, which will increase with improving efficiency.
Drivers: Positive industry macros and maturing hospital profile will act as a major driver.
Financial: On the financial front, the revenue for the quarter Q2Fy19 grew by 15.3% yoy to Rs2,090cr due to double digit growth in the hospital and pharmacy revenues. EBITDA grew by 16.6% yoy to Rs257.8cr in Q2FY19 vs. Rs221.1cr in Q2FY18. EBITDA margins stood at 12.3% in Q2FY19 vs. 12.2% in Q2FY18 and 11.9% in Q1FY19. This was due to the margin improvement in both hospital and pharmacy segments. PAT grew by 11.4% yoy to Rs79cr in Q2FY19 vs. Rs70.9cr in Q2FY18
Vodafone Idea Ltd: (NSE:IDEA) (Share Price: Rs.29.90): Avoid
Valuation: Stock is trading at a TTM EPS of Rs.-12.23
Reasons to avoid: Muted revenue performance and network opex were the key reasons for the subdued performance.Competitive intensity is expected to remain high, Idea and Vodafone are more vulnerable to lose subscriber base during merger integration.
Financial: Vodafone Idea on reported a consolidated net loss of Rs 5,004.60 crore for the third quarter ended December 31, 2018.As on December 31, 2018, Gross debt stood at Rs 1,23,660 crore, including deferred spectrum payment obligations due to the Government of Rs. 91,480 crore. Cash and cash equivalents were Rs 8,900 crore, resulting in net debt of Rs 1,14,760 crore.
Share Market Tips For February 2019: 2nd Week
Bayer cropscience ltd. (NSE: BAYERCROP) (Share Price: Rs.4248.95): Potential Buy (10 Steps To Pick The Best Stocks)
Valuation: Over valued with TTM P/E 48.30x.
Reasons to consider: Bayer CropScience recorded 29% yoy revenue growth to Rs6.2bn in Q3FY19 driven by strong performance from rice, fruits and the vegetables segments. Bayers recently announced merger with Monsanto India will lead to product portfolio expansion. Management remains confident on positive growth in FY20E driven by product innovations.
Drivers: Better product mix and merger may add speed and efficiency and will drive the stock further.
Financial: On the financial front the revenue for the quarter Q3FY19 has ballooned by 29.5 per cent yoy to Rs.621cr as compared to the same quarter of the previous corresponding year.The EBITDA for the quarter stood at Rs46.6cr as against Rs22.6cr in Q3FY18, an increase of 106.2%. EBITDA margin contracted significantly by ~279bps yoy to 7.5% in Q3FY19. The net profit after tax for the company came in at Rs27.5cr in Q3FY19, up 157% yoy
SRF LTD (BSE: SRF) (Share Price: Rs.2227.95): Potential Buy
Valuation: Fairly valued with TTM P/E 22.28x
Reasons to consider: Agro-speciality chemicals reported solid growth on a yoy basis, helped by new product additions and improved demand from key global agro innovators. Management is optimistic on better performance from the speciality chemical segment in the coming quarters along with margin expansion led by an improving global agro-chemical market. As a result, management continues to maintain ~40% yoy growth visibility in the Agro-speciality chemicals segment for FY19.
Drivers: Growth in chemical segment with addition capex of Rs.2.2bn backed with spurt in packaged film business will drive the stock further.
Financial: On the financial front, the revenue for the quarter Q3FY19 has substantially increased by 40.6% yoy to Rs.1964.04 crore as compared to the same quarter of the previous corresponding year.The operating profit for the quarter stood at Rs331cr, up 42.9% yoy. The EBITDA margin (excluding forex impact) for the quarter expanded ~27bps yoy to 16.9% in Q3FY19.The net profit for the quarter stood at Rs165.71cr, up 26.3% yoy.
BHEL (NSE: BHEL) (Share Price: Rs.63): Avoid
Valuation: Undervalued with TTM P/E 21.85
Reasons to avoid: Sharp decline in gross margin as well as power segment (contributes 78% to sales), registered muted growth of 3% YoY,Order inflow for the quarter stood at INR77b (-36% YoY) and we build in order inflow of INR340b for FY19. 9MFY19 order inflow stood at INR172b, rising long term receivables is a key concern to avoid the stock.
Financial: On the financial front the revenue for the quarter Q3fy19 has marginally increased by 10.1 per cent to Rs.7336 cr, as compared to the same quarter of the previous year. EBITDA stood at Rs219cr, down 17.5% yoy , EBIDTA margin fell 100bps yoy to 3%. Net profit in the quarter ended December 2018 stood at Rs192cr.
Share Market Tips For February 2019:1st Week
Biocon Ltd. (NSE: BIOCON) (Share Price: Rs.663.25): Potential Buy
Valuation: Attractive with TTM P/E 47.36x
Reasons to consider: The companys entry in the biosimilars business is a long term positive for the company.Biocon-Mylan has recently received an approval for Trastuzumab and Pegfilgrastim in US, this will help the company to grow its profit over next five years.
Drivers: The key growth driver is its biosimilars as most product under this segment are gaining market share and generating healthy revenue.
Financial: On the financial front the revenue from operations stood at Rs 1,540.8 crore for the quarter Q3fy19, against Rs 1,057.9 crore.EBITDA grew by 71.7% yoy to Rs380.7cr in Q3FY19 vs. Rs221.7cr in Q3FY18. EBITDA margins in Q3FY19 stood at 24.7% vs. 21% in Q3FY18 and 25.7% in Q2FY19. PAT grew by 136.3% yoy to Rs217.2cr in Q3FY19 vs. Rs91.9cr in Q3FY18.
Teamlease Services Limited (NSE: TEAMLEASE) (Share Price: Rs.2613): Potential Buy
Valuation: Fairly valued with TTM P/E of 46.72x.
Reasons to consider: :Company's consolidated sales grew 27% YoY as the company added 7.5k associates and ~4k NETAP trainees. The company is likely to get benefit from growth of organised flexi-staffing,We estimate TeamLease to end FY19 with employee associates of 155k plus and we assume 17-18k addition in FY20, implying 10% plus headcount growth.
Drivers: Improving margin and lower tax rate (sec 80JJAA) will act as a major driver to further ramp up its business.
Financial: On the financial front the revenue for the quarter Q3FY19 grew by 27.7% yoy and 7.5% qoq to Rs1,172.23cr. EBITDA came in at ~Rs25cr, up 37.1% yoy and 2.0% qoq.The EBITDA margin expanded 14bps yoy, but contracted 11bps qoq to 2.1%. Reported PAT grew by 37.3% yoy and 1.3% qoq to ~Rs25cr.
Ram Ratna Wires (BSE: 522281) (Share Price: Rs.121): Potential Buy
Valuation: Fairly valued at TTM P/E of 11.48
Reasons to Consider: Companys net profit has grown at a CAGR of 45.8 percent over the last three years. It is supplier to both OEMs and the players belonging to the replacement market. Its client base includes top brands like Emerson, Crompton Greaves, Cummins, Siemens, Schindler, Godrej group, etc. It has planned an expansion programme under which a greenfield project is in progress, RRWL has acquired 60 percent majority stake in a domestic company by investing Rs 10 crore. The acquired company manufactures copper tubes, which are used in the air conditioners and refrigerators. It has a capacity of 250 MT per month of copper tubes, which the company intends to take to 3000 MT per month over a span of three years
Drivers: Through the acquisition and joint venture, major traction in the top-line and margins is expected in the near term. Also, the demand for copper wires is increasing on the back of growth seen in electric power sectors.
Financial: On financial front, standalone revenue for Q2FY19 came in at Rs. 296.81 crore as compared to Rs. 236.15 crore for same period last year, registering 25.7 percent yoy increase. At operating level EBITDA for the quarter fell by 17.3 percent yoy to Rs. 13.7 crore from Rs. 16.57 crore with a corresponding margin contraction of 240 bps. EBITDA margin for the quarter stood at 4.6 percent. This margin contraction was aided by higher depreciation along with higher manufacturing costs. Net profit for the quarter came in at Rs. 3.48 crore which was Rs. 7 crore in same quarter of last fiscal, registering yoy decline of 50.5 percent. PAT margin saw contraction of more than 180 bps.
Niveza Research Desk :
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