Dalelorenzo's GDI Blog

Street positive on ITC’s FMCG business outlook

Mumbai: Most brokerages maintained buy rating on ITC after it reported a 1.3% decline in net profit for the March quarter at Rs 3,748.4 crore, which was slightly higher than analysts' promises. ITC's revenue from procedures pranced 24% to Rs 14,157 crore, sharply higher than Street estimates.CLSA, Jefferies, IIFL and Kotak Institutional Equities have maintained buy rating on the stock and Morgan Stanley retained overweight. Shares of ITC objective down 2.8% at Rs 209 on Wednesday. CLSA said the inflationary setting is likely to influence its near-term margin but it is confident of the improving margin trajectory for the other FMCG business on the back of an improving marketings concoction, falling incubation costs and operating leverage benefits. The brokerage cut earnings estimates for cigarettes business of ITC by 3% and lowered target premium to Rs 275 from Rs 265( ex-dividend ). Meanwhile, HSBC has downgraded the stock to hold from buy, saying that optically cheap valuation of ITC is due to grim emergence in cigarettes. 8318654 9Cigarettes business, while providing support 85% of earnings of ITC, has over the last decade lost its structural attractiveness amid regulatory dangers and environmental issues, social and governance( ESG) concerns, said HSBC.

Read more: economictimes.indiatimes.com


Motherson Sumi Q4 PAT zooms 289% to Rs 714 cr

MUMBAI: Motherson Sumi Arrangement reported a 289 per cent year-on-year rise in its consolidated net profit to Rs 713.6 crore for the part ended March, which was crisply higher than analysts’ estimates.The company’s consolidated total revenue from runnings hopped 17.6 per cent on-year to Rs 16,971.9 crore, which was slightly higher than analysts’ estimates.The company’s committee likewise approved a final gain importance Rs 1.5 per share for the financial year ended March, 2021. The swelling in the topline of the company was led by Samvardhana Motherson Peguform and the cable harness business.Revenues of the standalone entity rose 28 per cent of cases on-year to Rs 1,269 crore during the quarter. The automotive interior and exterior business under Samvardhana Motherson Peguform find its revenues rise 16 per cent of cases on-year to Rs 8,746.7 crore.Similarly, the wiring exploiting business under PKC pictured its revenues in the reported quarter climb 30 per cent of cases on a year-on-year basis to Rs 2,753.82 crore.Motherson Sumi’s operating performance in the quarter was house despite higher input rates, which pranced 26 per cent on-year.The company reported a consolidated operating revenue of Rs 1,722 crore, which was 38.7 per cent higher than the year-ago quarter. Operating margin in the fourth expanded 150 basis degrees on-year to 10.1 per cent.At 1:20 p.m. IST, shares of Motherson Sumi were up 5 per cent at Rs 248.7 on the National Stock Exchange.

Read more: economictimes.indiatimes.com


Cramer says keep buying dips in the stock market due to ‘stampede’ of bullish catalysts

"Mad Money" host Jim Cramer said Tuesday he ascertains a "stampede" of policeman clients helping lift the market higher during the Covid recovery.

Read more: cnbc.com


Mutual fund investor’s guide to risky investments

Play it safe is an advice most investors, specially the brand-new ones, hate to hear. I am young and I can afford to make the extra risk. Or I have the health risks appetite- I can take the extra risk. These are the common causes one comes across in many mutual fund meetings. This article will look at whether you can invest in risky boulevards if you are young and take extra risk. Also, what should be used retain while investing in risky alternatives? One, being young automatically characterizes you to take extra risk. It is your mental even out. A young person may be extremely reluctant to make big perils. He may be interested in thriving his fund conservatively. Another boy may want to take all the risk and construct high returns because he doesn’t have any responsibilities. First, you should figure out which radical do you belong to before you start your investments.Two, you should also make sure you are not being risky. Many youngsters crave a prize. Bumper benefits may be the only driving influence for most them. Such investors often get in and out of investments incessantly to male big bucks. Often these investors lose equanimity and abandon their speculations. Make sure that you have realistic plans.Yes , now you can consider investing in high risk speculations. Nonetheless, recollect one thing very clearly: not all risky investments have the same risk or they will offer the same kind of returns. So you should be careful while investing in these options.For example, a high risk investment like mid cap planned is totally different from investing in small cap schemes, infrastructure schemes or other sector strategies. This means you should do the homework of procure about your every asset. You should also remember how much extra risk you are talking to do those extra returns. You should ensure that you are okay with the extra risk.You should ever keep in mind that these likely higher returns are not assured. Higher risk does not ever result in higher return. This is especially true in the short term. Too, sometimes these financings can test the patience investors. Sometimes, you would also figure out the risk is much higher than you saw.

Read more: economictimes.indiatimes.com