Recent Posts

81

MidCap Stock Picks / Britannia Industries - Good Days

« Last post by komal on September 15, 2020, 12:20:54 PM »

Here is an excerpt from Ambit Capital on Britannia Industries Ltd

Many would characterise the last few years as economically challenging years with a series of disruptive events such as demonetisation, GST reforms and now Covid to name a few. However the biscuit manufacturer of choice, Britannia Industries has been marching to a different tune. Biscuit market share has increased to 36%, a gain of 400bps in the last 3 years itself. During this period the gap between Britannia and its peer set has considerably widened and that too with good reason.

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SmallCap Stocks India / Top 5 Buy Ideas

« Last post by komal on September 15, 2020, 12:12:04 PM »

Here are the Top 5 high conviction smallcap ideas which Motilal Oswal Securities expect to do well in the short to medium term

The stocks are fundamentally sound with good growth potential

One can buy this basket of 5 stocks with a potential upside of 10-15% over a time frame of 1-3 months and keep a stop loss of 7-8% on the overall basket

Birla Corp
IEX
Teame Lease
Essel Propack
KEI Industries

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MidCap Stock Picks / Top 5 Picks - Motilal

« Last post by komal on September 15, 2020, 12:10:39 PM »

Motilal Oswal's Top 5 MidCap stock Picks.

The stocks are fundamentally sound with good growth potential.

One can buy this basket of 5 stocks with a potential upside of 10-15% over a time frame of 1-3 months and keep a stop loss of 7-8% on the overall basket.

Aditya Birla FAshion & Retail
JK Cements
Tata Power
Ashok Leyland
Dr Lal Path Labs

Disclaimer: Please consult your RIA before making any decision

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Real Estate / SEZ in India / 99acres - weak billings - operation metrics

« Last post by resh on September 09, 2020, 02:15:58 PM »

99Acres.Com Revenues declined by 24.7% yoy due to weak buy and sell activity in 1QFY21. Billings declined by a sharp 71% yoy, and this is indicative of continued weak real estate activity.

Brokers now contribute 56% to revenues (rest from builders and home owners).

Real estate has been already slowing down for the past few years and was severely hit by the long period of lockdown. Billings had declined 90% in April, 85% in May and 52% in June.

Rentals are still down compared to last year but form only a small part of overall business.

Total listings have recovered to pre-Covid levels. Dealers and developers are slowly coming back to the platform but have not reached back to previous-year levels.

Traffic recovered to 85% in June. Buyer traffic in August was up 11% from pre-Covid levels and 3% yoy. Buyer enquiries were up 65% yoy.

85

IPOs and Rights Issues / Re: HAPPIEST MINDS TECHNOLOGIES

« Last post by resh on September 07, 2020, 11:22:36 AM »

Choice Broking Analyst Rajnath Yadav has a SUBSCRIBE rating with the following note,
At the higher price band of Rs. 166 per share, HMTL's share is valued at a P/E multiple of 29.4x (to its restated FY20 EPS of Rs. 5.6), which is at premium to peer average of 25.9x.

Sushil Finance Analyst Krishna Rana said,
In last three Fiscals Company grew at ~ 23% CAGR, ROCE of around 29%. The issue is priced slightly expensive at a P/BV of 6.38 and asking price is  at P/E of around 36x against the average industry P/E of 27. Happiest Minds has good business prospects as e-commerce and digital service providers are seen as growing sectors. The sector has shown growth even during the pandemic. Investors can apply for medium term horizon.

86

IPOs and Rights Issues / HAPPIEST MINDS TECHNOLOGIES

« Last post by resh on September 07, 2020, 11:22:21 AM »

We present to you IPO / Public Issue Reviews & Ratings of HAPPIEST MINDS TECHNOLOGIES

ICICI Direct Analyst Devang Bhat without giving any rating said,
At the higher end of the price band of | 166, the stock is available at a PE of ~31x on FY20 diluted EPS.

HDFC Securities - No Rating

Axis Capital - No Rating

Rishi Jhunjhunwala at IIFL Capital said,
The price band is Rs165-166. Considering FY20 adjusted EPS of Rs6.2, the price band implies a P/E ratio of 26.6X, comparable to its larger mid-cap peers such as LTI, Mindtree and NIIT Tech. Based on management comments, the implied P/E multiple for Happiest Minds
is ~12X if we annualize 1QFY21 EPS.

Sneha Poddar of Motilal Oswal said,
At the higher end of the price band, the issue is valued at 29x FY20 P/E (fully diluted), which is comparable to larger mid-sized IT
companies. We like the company given its (1) strong presence in digital services, (2) scalable business model with end-to-end capabilities and (3) fast improving financial performance. Hence, investors can Subscribe to the IPO. Further considering market conditions and bright prospects for IT companies post Covid-era, one may also get listing gains.

SMC has a 3/5 Rating with the following note,
The company is a versatile digital business, product engineering and infra management solution provider company. Digital is growing much faster than traditional business of the company. As much as 97% of the company’s revenue comes from digital, where as the average contribution from digital stands at 40-50%. The company has adopted a mindful IT strategy for its future growth. On the flip
side, the company intends to raise Rs 702 crore from the issue, of which 592 crore is offer for sale.

DealMoney Research said,
In FY20, the company had delivered 87.9% of its projects through agile delivery methodology. Over the years and currently during the ongoing outbreak of Novel Coronavirus, it has successfully implemented its business continuity plans including to achieve efficient work-from-home practices to ensure connectivity across the enterprise. Based on FY20 consolidated numbers, the issue is priced at a P/E of 31x. at diluted EPS of FY20 Which is priced fairly therefore we recommend SUBSCRIBE over the issue for a long term perspective.

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Indian Retail Forum and Discussion / Re: Comparing of BigBasket JioMart DMart Amazon Online Grocery Retailers

« Last post by resh on September 04, 2020, 01:20:26 PM »

Comparing Online Grocers JioMart Vs Flipkart Supermart and DMart Ready

JioMart is currently delivering fresh and grocery within two days of ordering and wants to take this to T+1 soon: The plan is to eventually move this to one-hour delivery with kiranas doing the final fulfillment while JioMart will help them with inventory, technology solutions and customer orders.



The omni-channel retail capability powered by JioMart along with Reliance Retail's widespread physical presence (with two-thirds of its 12,000 stores in Tier 2-4 towns) will be a key near-term growth area, and could have a significant bearing on India's eCommerce sales. JioMart will also leverage WhatsApp to create a seamless transactional experience for customers.

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Indian Retail Forum and Discussion / Comparing of BigBasket JioMart DMart Amazon Online Grocery Retailers

« Last post by resh on September 04, 2020, 01:18:31 PM »

I would like to show the comon of various online grocery retailers in India namely, Big Basket Grofers, Amazon India, JioMart, Flipkart - Supermart and  Dmart Ready

Various Parameters for comparing are Cities Covered, Delivery Format, SKUs, Private Labels, etc and this is how they look like as shown below.

Big Basket Vs Grofers Vs Amazon Pantry / Fresh

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Indian Retail Forum and Discussion / How JioMart Gains Reliance Retail Future Group Deal ?

« Last post by resh on August 31, 2020, 12:11:21 PM »

We believe that Future supply chain’s assets will prove useful for Jiomart + Reliance's offline business.

Jiomart intends to supply grocery online as well as act as a distributor to retail shops. We believe this would require an integrated supply chain network to connect RIL Market and warehouses with local kiranas, and kiranas and local RR outlets with customers. Assets of Future Supply Chain and Future Retail's Easyday network (990 Easyday, Heritage Fresh and Nilgiris stores) can help Jiomart's distribution and hyperlocal retail ambitions. These stores are neighborhood grocery stores, which would sell a select number of SKUs to a set of 800-1,000 member households. It also carried out local deliveries to these neighborhood households and had enabled Whatsapp based ordering for some locations. We believe these stores can be converted into Reliance branded outlets and be utilized to carry out Jiomart’s hyperlocal operations. Further, RR can also get data of these local neighborhoods and can easily onboard them as Jiomart's customers.

Future Supply Chain has capabilities of warehousing, operating DCs, express logistics, temperature-controlled logistics, last mile delivery. Further, in FY2019, FSC launched India Food Grid (IFG), a network of 38 Integrated Food and FMCG distribution centres (IFDCs) across the country that provide pan-India reach. The IFG can manage distribution right from the manufacturing hubs up till the final point of consumption.

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Indian Economy, Macro, RBI Policies / Real Indian GDP Shrinking

« Last post by resh on August 13, 2020, 08:31:15 AM »

According to Motilal Oswal Research, Economic Activity Index (EAI) for India's real GVA (called EAI-GVA) contracted 7.0% YoY in Jun-20 – its fourth successive decline – which implies that economic activity shrank 18.7% YoY in 1QFY21. Industrial activities contracted sharply by a fifth (compared to 33% fall in May-20), while the services sector shrank only 3.6% YoY (supported by massive fiscal spending) in Jun’20. Farm activities grew 10.4% YoY – the highest pace in nine year

Overall, they suggest  that real Indian GDP may have contracted 18-20% YoY in 1QFY21, in line with their estimate. An important point to ponder over now is whether economic activity will pick up from Aug-Sep-20 and continue to grow post the festive season. As the COVID-19 pandemic is still not contained in India and partial lockdowns have been re-introduced, continuation of stronger GDP growth is still not a given.