Dalelorenzo's GDI Blog
19May/210

Don’t go stock-specific in pharma: Deepak Shenoy

Go for some of the API players which are in manufacturing, some of the exporters and some of the formulation final drug manufacturers as well and build a portfolio rather than invest in only specific broths, says Deepak Shenoy, Founder, Capital Mind. How are you looking at the pharma basket after quarterly amounts? Where are you acquiring favour within this space? A mint of pharma results are out while others are more are awaited but overall, it has been rather feeing. We are seeing a lot of news-related moves in stocks and some of these moves are based on anything brand-new that has been discovered in terms of impact of Covid and so on. We have interpreted a few stocks rise a little bit. Last time, there was a little bit more of Covid associated build-up. After Covid quells, a lot of elective procedures will be published within India. The domestic sector will continue to have a focus on medicines in the next few years though exports are looking very encouraging. Overall, business has not slowed down or stopped. So I would go for some of the API participates which are in manufacturing, some of the exporters and some of the formulation final drug manufacturers as well and build a portfolio rather than invest in only specific stocks. Specific furnishes require a lot more deeper knowledge. How have you read into L& T quarterly demo? If we look at the overall segmental breakup, it has been quite stellar for the company! Yes, the implementation of its has been very successful. The number of prescribes they have received starting October of last year, has increased quite substantially and some of it has been non-India as well. India itself is passing through a big infrastructural ascent in all sorts of ways and that are able to likewise cure L& T. There is also the fact that LTI, LTTS and MindTree makes have been relatively softened. But these will also structure a foundation locate for the stock. We are long on that stock and so we are biased but overall, L& T is probably one of the lower quality capitals in terms of numerous to earnings and possible swelling trajectory. I hope at least the next few years will see them come up with considerably better develops. This year’s result is okay but it ogles good but I conceive the bigger thing is the growth that is ahead of us and if L& T can captivate a significant amount of the infrastructure story and the IT swelling legend. That will help its valuations greatly. There may be some corporate wars we should look forward to but give those happen and then we will talk about it. It is a very large company and can not acted as well as the market has in the last few years. Do you experience overall infra as a space that could see more the potentials and has more return possible as well? Yes. The US has not refurbished its freeway organization for a while. They started building them in the 50 s and 60 s and over years, a lot of it has fallen under disrepair. We have had a lot of calls for it in the last few years on the need to upgrade. We do not know where they are going to raise the money from. They are likely going to raise capital incomes taxes in the US for the richest of uppercase additions designers and use that to finance a large increase in infrastructure rejuvenation in a way. There are some schedules in Europe as well. It is not quite as well defined but both again have access to a lot of capital at the government end. There is also endless support from their own central banks for buying their alliances. Having said that he believes that, the narrative in India is slightly different. We will need money to upgrade our infrastructure, we definitely need infrastructure not just an refurbish but our fib is going to be limited by how complex the Covid virus issues are and how things change for the government in terms of revenues. I believe here also there is a story that has been participating in for the last 3 or four years. If it continues, we are likely to see at least Rs 100,000 -2 00,000 crore a year government spending in infrastructure. So, I mull the narration is good. But does it translate to profits? We do not know. If they develop something like public private partnerships, it may not certainly arise because the risk gets transferred to the private players and private actors usually do not have the craving for a lot of risk or the balance sheet strength for it in India. It’s nuances will determine whether the profits will flow to the private sector or not. When I say private, I mean non-government but it is a phenomenal narration going ahead. I am looking forward to seeing how challenge and steel prices and all the commodity prices shape up as well that will change financial implications. Should one be in auto right now? The negatives ought to have priced in for a few furnishes because they are probably below their 2017 rates for a lot of others. I am talking about Maruti perhaps and the two-wheeler pack and so on but Tata Engine has doing well. There are a bunch of reasons for it but the point is also that Tata Engine has now share from Mahindra. A pile of amalgamation has happened in terms of demand as over the last two or three years, costs have gone up for several intellects -- be it BS-VI, increase in insurance costs or increase in raw material rates. It has now translated into a higher cost of the vehicle itself and therefore demand has ebbed. But formerly we are past the corona the questions and one hopes that ascribe rise will start to come back. If there is industrial demand, then the needs of the personal vehicles and commercial vehicles should continue to go up. This will not happen in the next six months to a year because things are in flux but over the next two or three years, automobile is going to show a fairly significant rebound from here. We are going to see demand come back quite rapidly once things stabilise and three to five year story will still belong to the vehicles where you will have to probably represent it through both the vehicle manufacturers and too through some ancillaries who offer specifically inputs to electric cars and electric vehicles both of which I suppose will correspond to much higher growth floors in the longer term. But in the short term, I is not expect things to happen in the next three to six months at all. How have you looked at earnings from cement companionships so far? What kind of traction are we likely to see in cement? I have not even seen the results of many of the cement companies and so I do not know about volume growth here. So, I should not comment unless I have a figure. We have a plan for looking at it at the end of May but plaster has not really been a big thing for us so far.

Read more: economictimes.indiatimes.com

27Mar/210

Covid year produces most multibagger stocks on D-Street since post-GFC rally

MUMBAI: In the midst of the worst health crisis in human history over the past century, the Indian stock market made the highest number of multibagger broths since 2009 -1 0 in the year till March 2021, data compiled by ETMarkets.com showed.The astounding performance was aided by the trillions of dollars of money reproducing by global central banks and stimulus containers from governments to repair the global economy from the Covid-1 9 shock.“Extremely gigantic response from central banks and governments compared with the 2008 crisis has underpinned this bull market, ” said a premier asset polouse at a city-based life insurance company, who barred naming.In 2020 -2 1 still further, as numerous as 1,090 -- or 45 per cent of the children of the rostered capitals on the BSE -- have given more than 100 per cent returns, data available on the Ace Equity database till Friday showed.While the number of BSE-listed stocks has risen over the years, even adjusting for that, 2020 -2 1 find the highest percentage of stocks register more than 100 per cent gains.< iframe claim= "The Pandemic Winners" aria-label= "chart" id= "datawrapper-chart-P6 5l"Q src= "https :// datawrapper.dwcdn.net/ P65lQ/ 1/ " scrolling= "no" frameborder= "0" mode= "width: 0; min-width: 100%! important; strip: nothing; " height= "4 00 " >! perform () "use strict"; window.addEventListener( "message" ,( capacity( a ) if( void 0 !== a.data[ "datawrapper-height" ]) for( var e in a.data[ "datawrapper-height" ])))(); Further, the current financial year has so far created the largest number of stocks that originate investor prosperity by more than 1,000 per cent of the children since 2009 -1 0. Eight stocks -- Tanla Platforms, Digispice Engineering, PG Electroplast, Intellect Design, Subex, Venus Redress, CG Power and Jaykay Enterprises -- have risen more than 1,000 per cent of the children since April 1, 2020.81643820 Other major gainers of its first year included Adani Total Gas wih 753 per cent of the children returns, Dixon Engineering 497 per cent of the children, Hindustan Copper 491 per cent, and Tata Elxsi 339 per cent.Among the Nifty5 0 inventories, Tata Motor was the biggest gainer, as it more than quadrupled investors' money during the financial year given the company's focus on shorten pay and reinventing the Indian passenger car business.Liquidity shot in by the Reserve Bank of India and global central banks and influx of a large number of first-time retail investors helped prop up stock tolls during the year even when the real economy registered its first-ever technical receding in several decades.Drawn by cheaper furnishes after the March crash and forearmed with zero-broking cost trading lotions, Indian retail investors shot in billions of dollars into the secondary and primary marketplaces, said market participants. Data from the Defence and Exchange Board of India( Sebi) registered over 10 million brand-new dematerialised chronicles were opened in 2020 -2 1 so far.Dharmesh Kant, an independent busines specialist, said while world-wide liquidity and influx of brand-new investors have played their part, the rise in the stock market has still been driving in fundamentals.“Earnings were robust considers the economic backdrop ... We is very likely to aim the financial year with around 10 per cent earnings growing( for Nifty5 0 companionships ), ” Kant said over telephone.For the next financial year, analysts have projected Nifty5 0 earnings to grow north of 30 per cent, leading Kant to believe that Indian equities will register an even better act going ahead.< iframe entitle= "The Best Performing Stocks of FY21" aria-label= "chart" id= "datawrapper-chart-0m 6pe" src= "https :// datawrapper.dwcdn.net/ 0m6pe/ 1/ " scrolling= "no" frameborder= "0" vogue= "width: 0; min-width: 100%! important; strip: nothing; " height= "9 11 " >! capacity () "use strict"; window.addEventListener( "message" ,( purpose( a ) if( vacant 0 !== a.data[ "datawrapper-height" ]) for( var e in a.data[ "datawrapper-height" ]) document.querySelector( "iframe[ src *= '"+ e+ "'] " ); t &&( t.style.height= a.data[ "datawrapper-height" ][ e ]+ "px" )))(); Not all are in agreement that reaching returns on one’s equity portfolio will be as straightforward as it was in the current financial year amid signalings that investors are already beginning to worry about delivery on the stratospheric expectations.The re-emergence of Covid-1 9 pandemic in countless parts of the country and the possibility of the US Federal Reserve tapering its quantitative easing programme from January of 2022 have already cast doubts over return expectations.A recent inspection of global fund managers by BofA Certificate evidenced inflation and decrease tantrum are now being perceived as bigger gambles to equity portfolios than Covid-1 9. “There is a lot of sud in the market and, therefore, there is a big chance of displeasure for investors next year ... but from a three-to-five years perspective, equities are still preferred over fixed income, ” said the CIO of city-based life insurance company quoted above.Investors hope the new financial year will see a redo of the astounding rendition heard after BSE Sensex’s 89 per cent gain in 2003 -0 4, instead of the underwhelming returns that followed the 2009 -1 0 man feed.

Read more: economictimes.indiatimes.com

14Mar/210

Sabharwal on how to play the housing market revival

Business have become a bit shallow on the largecap side as focus has spread more to the broader marketplaces, says Sandip Sabharwal, consultant, asksandipsabharwal.com. At a go when there is a view that FII spurts may not be as robust as what they have been for a long time, FII dominated capitals which are not cheap which are not a clear bet on cyclical or the economic recovery have been the outperformers. Yesterday, there was a strong price action in Kotak Bank and HDFC Bank.I would not predict too much into it. In my view, some sort of rotation is taking place if some inventory does not perform for some time and then some fund comes in there. In fact, world markets have become a bit shallow including the largecap side as focus has spread more to the broader markets. A small amount of buying or F& O activity in these furnishes can take them up. No specific progress has happened which could be positive for them except for the fact that there is a general belief that when interest rates bottom out and start moving up, some of these banks with high cost on asset excellence, actually benefit from that. They have a high CASA ratio and their costs do not go up as much, whereas on the lend back, they can be priced higher as the RBI starts stiffening. Low interest rates and high affordability had given rise to a revitalization in the casing busines. You play games that by buying real estate properties capitals or dwelling improvement inventories. How are you approaching this? What have you added there last-place? In the dwelling improvement line-up, there are currently numerous each category of companies. On one side, "were having" the draw companies which did well in the initial season and now the government has relented because there are some input cost pushes etc. Then there are companies which cater to houses being built or improved. This includes sanitaryware companionships like Kajaria Ceramics etc. Kajaria Ceramics is a brilliant company and they have given very strong guidance for next year and that has been something which I have been positive about for several years. The tone of management is very good and they are debt free. They should do well near expression again. The challenge is that in the near term, these evaluations have become higher because everyone is focusing on these companies and they are not correcting when business rectify. The best approach is to accumulate gradually and keep on accumulating these companies on every plunge. There are some other corporations on the plywood area but I have not really looked at them. ET Now: You ought to have optimistic on gold for over a year and a half now. Do you think the trend is still intact after the recent correction? Or is a large part of the increases behind us? Sandip Sabharwal: At around $1,850, gold tolls should have peaked out for the near term but the target buying range is between $ 1,600 to $1,650 per ounce. That will be a good price level to get into gold because longer term, inflationary concerns are being underestimated at this stage really because inflation has not been there for some time. It does not mean inflation would not come back. It will come back because of the space the easy money policies and gargantuan fiscal stimulation are to be introduced and are sure to generate a lot of inflation. Gold frequently does is a good one in high inflation spans. The timing is slightly difficult to predict but over the next two-three years, gold should do is a good one. Coming to real estate, we have got Godrej Assets. The QIP is in the news but that apart, we have been hearing positive things on the segment. In words of return possible in the near term or even with an annual prognosi, how much scope is there in some of these counters? Some of the regions in play-acts -- the Bangalore-based and Mumbai-based developers have had a strong up move. So, a lot of the positives are in. I would think that the best inventory at this stage in this segment is the largest real estate company -- DLF. It still ogles undervalued relative to the improved fundamentals. Their strategy has been in terms of deleveraging their sector balance sheets and what kind of potential growth they might be able to show. There exist some upside left. Some of the regional actors can be bought on troughs because real estate is a long-term cycle and once the revival cycle starts , normally it previous a few years. The opportunity will come. It is still a awfully under owned segment of world markets. Most monies do not own many of these stocks or even though they are they own, it is in very small proportion. As the research results start coming out, the whole sector will still work better. So, beings have to look for opportunities both in terms of like corporations like Godrej Quality or business from Bangalore like Sobha Developers or look at Oberoi Realty in the premium segment or even some of the companies which take over contracts to make real estate campaigns. This part segment will do well over the next two, three years but we need to look at entry point because many of these inventories have run up very sharply.

Read more: economictimes.indiatimes.com