When good quality businesses get beaten down in the markets, unexpected corporate actions and events sometimes act as a trigger to their re-rating. Is the HDFC merger with HDFC Bank a positive?
This is an update on a stock that is in our Buy list, owing to recent developments.
The auto component or auto ancillaries space, though, features more listed opportunities. These companies supply critical components such as engines, transmission, axles, suspension, brakes, lighting, electronics and batteries to automobiles. It is a major manufacturing sector, accounting for 2.3% of GDP and employing 1.5 million people. Piggybacking on the fortunes of the auto industry and another way to play the space, the auto ancillary segment can offer opportunities. With over Rs. 4 lakh crore in market capitalisation, this sector has more companies in its fold to play the auto space.
Be it inside the home or office or in a family car or a metro rail, it is glass that protects you from the elements while allowing you to still see the outside world. Malls, commercial spaces and residential buildings all use more glass than in the past. The face of public transportation in cities is changing with the introduction of air-conditioned buses and metro rail systems. Wide glass windows, glass cubicle bathrooms and the big sunroof in SUVs are the fast-catching luxury trends. Simply put, glass is a proxy to economic growth aided by per-capita income growth, urbanisation and premiumisation with increasing use cases.
The equity markets have been losing strength and seeing steady correction albeit with temporary rebounds. We thought this was a good time to revisit our stock recommendations, Prime Stocks, and see if you can have averaging opportunities in them.
Short term outlook for Nifty 50 : We have been voicing our concerns regarding how overbought the Nifty 50 index has been in the bigger time frame. And, we have been expecting a cool off or correction in the index for the last three months. The view shared in this post on the Nifty 50 outlook is playing out and the Nifty 50 index is reverting to its mean.
As the top two players in the oldest lending business in India, gold lending NBFCs Muthoot and Manappuram Finance don’t require much introduction to investors. Unlike other lending operations, gold lending still requires the physical presence of the customer and therefore fin-tech challengers are yet to figure out a way to crack this lucrative business. The adoption of digital technologies in gold lending is restricted to bank transactions and sales origination.
On the LIC IPO, a lot is at stake. Rules have been bent, timelines collapsed and all the corners cut to meet deadlines and valuation numbers. The secondary market price is extremely critical for the government as it will decide the annual dilution of five percent that is likely to happen, to reduce the government ownership to seventy five percent over five years. So, for those who are worried about the price now, there is hope.
With Omicron fears fading and most States geared to quickly unlock and resume normal economic activity, PrimeInvestor believes that discretionary consumption is likely to stage a comeback. Branded apparel, wedding wear, formal workwear and innerwear are likely to be some of the first items that consumers are likely to view as feel-good purchases, on resumption of normal activity.
A long-forgotten sector that has made a big comeback in the most recent leg of India’s bull market is the textile sector. The rally was pretty hard to miss. The stock price of KPR Mills has more than doubled from July 2021 to January 2022 while Vardhman Textiles and Welspun surged over 60%. AK Spintex, a textile stock that has flown under the radar for a while, climbed nearly 190% in just the first two weeks of the new year, leaving many baffled. One-year stock returns have been in excess of 100% for many players. Here are the absolute stock returns on a few textile stocks.
We are moving this stock from a Buy to a Hold until we receive clarity on the funding plan and capex timeline. That means, those who have already invested in the stock may continue to hold, but avoid additional investments.
The company we have recommended is assisting global bio-pharmaceutical companies in the end-to-end process of drug discovery to manufacturing. There is an increasing trend within the global life sciences industry to partner with integrated contract research organisations that can provide customised and end-to-end solutions to both large conglomerates to young startup biotechs.
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