Valuation has come off substantially from 24x 1-year forward P/E in October 2021 to 17x currently (v/s 20x long period average). In the near term, focus remains on RBI’s policy and upcoming Q4 results for index heavyweights.
Sharekhan said that attractive valuations at 23x/21x its FY2024/FY2025E EPS and double-digit earnings growth visibility make it our preferred pick in the large consumer goods space from a medium to long-term perspective.
M&M Finance has over the last 18 months embarked on multiple strategic initiatives, which will lead to lower operating cost ratios; sustainable improvement in asset quality; much better risk management; and improvement in business volumes by targeting the affluent rural and semi-urban customer segment, said Motilal Oswal.
Niche player with sustained market leadership and consistent performance across cycles gives confidence on robust business model, said ICICIDirect. It believes the company is well positioned to capture huge untapped opportunity in MFI space via deeper penetration in new, existing geographies and increase in customer base.
Motilal's investment thesis on the stock is premised on its presence in the high margin B2B express segment; expanding branch network in key markets; incremental revenues from new services such as air express, rail express, cold chain express, C2C; addition of new automation sorting centers, which will potentially reduce turnaround time.
ICICI Securities said that Prince Pipes and Fittings had announced its foray into bathware segment and the company plans to rollout products from this segment by mid-Q1FY24 using outsourcing model in its stronghold markets of Northern and Western India. It plans to achieve EBITDA breakeven in this segment within 12-18 months from the launch.
“On the daily charts, Nifty has managed to close above the 20 DMA which is a sign of strength. The daily momentum indicator has a positive crossover which is a signal. Thus, both price and momentum indicators are suggesting further upside,” said Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas.
“The short term trend of Nifty has turned up sharply. Having moved above the hurdle and the overall positive chart pattern indicates next upside for the Nifty around 17800 levels in the next couple of weeks. Immediate support is at 17250 levels,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.
“For Bank Nifty, the breakout confirms the positive momentum and one should keep a buy approach with immediate support at 40200. The index surpassed its 200 DMA which acts as a change of polarity,” said Kunal Shah, Senior Technical Analyst at LKP Securities.
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