VALUATIONS EARNINGS
Staying with quality pays in long term wealth creation: 5 midcap stocks from different sectors with potential upside of up to 35%
If looking for investing in a bank, which would be better stock to own. A bank which after a period of four years has once again paid dividend last year or a bank, which in the last five years have missed dividend only in FY 2020, which was covid year. Yes, second one, but most investors don't look at these things which in the long run matter both for the real business and finally the stock price. Similarly, there are many small things which need to be looked at when investing in a mid cap stocks for very simple reason that market is sitting with a good amount of gain and short corrective move which may come largely because of global reason or just a simple profit booking move may hit midcap more than anyone else. So, while being bullish and increasing your exposure just do a little bit of work so that one is able to avoid anxiety in time of corrective phase of the market.
Betting on 4 pockets with valuation comfort & earnings visibility: Hemang Jani
Valuation-wise there is not much of a scope in HCL Tech. At 25 times 25 earnings, the best-case earning growth that one is looking at is 7- 8%. So, there is a certain degree of interest but it is not as if things are going to be great in terms of earnings growth. Hemang Hani preferred TCS and some of the midcap companies on meaningful corrections.
Should investors make fresh bets in FMCG stocks? Rajat Sharma answers
I think in the last 15-20 years, since I have been—18 years to be precise—since I have been looking at the market, I have never seen this kind of bullishness and fundamentals as strong as we have right now.
Some cooling off may be around the corner, so is the opportunity: 6 auto stocks with an upside potential of up to 28%
When a sector or an industry does well, stock prices also do well. But then a stage comes where while the Industry continues to do well the rate at which the stocks are rising slows. Essentially meaning that stock prices have built in a large amount of good news and they would wait for the next trigger. While there is no doubt and should not be any doubt that auto stock has done well in the last three years as the industry has been doing well. But the reaction of the street to some reports about M&M might be cutting the prices of one SUV model is probably indicating more than just meets the eye. So, should one take some money off the table or should one be slightly cautious when it comes to putting in fresh money? Is this cool down an opportunity for a long term investor ? Probably yes.
Power is going to be a multi-decadal growth story: Shreyash Devalkar
As a result, we are seeing good flows in the multi-cap category compared to large-cap, which used to be the case earlier. Even the large-cap category has started getting returns. So yes, this is widespread and increasing as of now.
Enough steam left in market for next 2-3 years; Budget to be next big trigger: Manish Sonthalia
For FY25, we are working with 5.8%. I hope this glide path to lower down sharply to around 5.1% in the next one year. If that happens, plus you have impetus on balance sheet expenditure of the government to accelerate infra spending and at the same time be pragmatic on the pain that is there in the middle class and the rural folks to dole out something as consumption expenditure.
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ETMarkets Smart Talk: India’s small & midcap are commanding premium valuation than the world SMID: Sahil Kapoor
Equity markets continue to scale new highs and trade at rich valuations. Small & Midcap stocks continue to trade at expensive valuations, which is a sign of caution.The Nifty 100 Index is trading at 22x 12-month forward earnings, Nifty Midcap 150 is at 32x, Nifty Smallcap 250 Index is at 24x 12-month forward earnings.
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 46%
At a time when everything on the street appears good and green, there is a case of being selective while being bullish. The reason, even in a raging bull market, the street never stays in this all good and green mode forever. When the street starts to become selective, it is stocks where there are some improvements in the business operating matrix tend to weather the storm better. So as an investor, one needs to look at every sector and company and their operating and valuation matrix separately. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.
IT sector showing signs of bottoming out; healthcare to grow over 12 months: Vinit Sambre
The IT sector is showing signs of bottoming out from a flat to very low earnings momentum. Maybe the stocks will pick up some bit and go to the high single-digit range. Over the next two quarters, the sector should come out of the low growth phenomenon and healthcare is likely to show a decent growth matrix over a year or so, says Vinit Sambre.
Premium valuation of defence companies should sustain 3-5 years down the line: Binod Modi
In the marine as well as the aviation defence space, several varied companies are getting into BSF categories. So, these are the opportunities that look to be quite huge. Binod Modi, Sharekhan BNP Paribas, says that he believes companies like HAL as well as BEL should continue to do well,
Valuations take centre stage as Sensex touches new peak
Majority of the Sensex constituents now trade above their respective long-term average valuations. It means investors need to be selective while accumulating blue chip names.
Pankaj Pandey on 3 stocks to bet on from pharma sector
We have been very selective in terms of chasing stocks because our sense is that you need to see stocks for a considerable period of time before we recommend. IREDA is what we have sort of recommended because our sense is that this one PSU AAA rated can deliver 30% kind of AUM growth while valuations are on a higher side, but we like the opportunity size.
Pankaj Pandey on 2 sectors that are likely to see strong Q1 earnings
Raymond specifically, we do not have a coverage. But I think you have very few stocks which can be bought at current levels in real estate given the price appreciation a lot of these stocks have seen. So, some bit of a time correction or price correction is what we are waiting for.
ETMarkets AIF Talk: Earnings likely to be next big trigger for equity markets; shifting to quality makes more sense: Vikaas M Sachdeva
But it seems like the markets have regained confidence. Third term, same government, acceleration towards infrastructure investment I think that is what is driving this optimism.
Valuations are up... will profits keep pace?
The market's high valuations necessitate positive earnings surprises for comfort, with bond yields and investor sentiment influencing market trends significantly.
Earnings growth likely to be in mid-teens; overall growth trajectory remains strong: Shibani Sircar Kurian
The building materials segment, specifically tiles, has underperformed despite significant real estate growth. Typically, when real estate sales pick up, demand and volume growth in building materials follow with a lag.
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 29%
The bullish mode and mood of the market, which is already in place on the street as the nifty touched new high, is likely to get a boost as the first indication of return of FPI comes to markets. The budget and the narrative which gets built post that is going to play an important role in that. Maintaining fiscal discipline and announcing continuing policy push for key sectors would be key for that. We look at stocks which have witnessed a continuous rise in their score in the last one month. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.
Midcaps stocks for long term investors: 5 stocks from different sectors with right financial & growth matrix and upside potential of up to 49%
Buying quality stocks should be one of the basic principles while investing in markets. But when one is buying mid-cap stocks this principle becomes even more important for multiple reasons. At this point of time, when valuations are high and small corrections can lead to strong negative reactions in stock prices. So, while capital gains is the objective, never lose the perspective of protecting capital from sudden shocks. Now how does one do it? Look at the underlying business which is best understood by going through its annual report and look at a certain basic ratio in order to figure out how much return that underlying business can generate in best and worst case.
Stock picks of the week: 5 stocks with consistent score improvement and upside potential of up to 25%
Every now and then the nifty keeps witnessing volatile movement, the difference this week was amidst all the intraday volatility because the bias of volatility has changed, nifty was able to touch a new high. Also because market breadth was positive, the trend for the majority would be bullish. Given the fact that macros are shaping for good, it appears that there is no reason for bulls to leave their control any time soon. While being bullish, be ready for a phase of volatility. In such times, if one is taking fresh exposure to equity, ensure that there is some level of quality as far as the business and fundamentals are concerned. These selected stocks depict a strong upward trajectory in their overall average score which is based on five key pillars i.e. earnings, fundamentals, relative valuation, risk and price momentum. This implies that there has been a significant improvement in their market outlook in the given time frame.
Focus on the core business and track record: 4 midcap stocks from different sectors with potential upside of up to 31%
With election results behind us, the focus of the street is on the first budget of this government. In the run up to the budget market may stay in range bound mode and post budget there could be a strong directional move. If that directional move is in upward direction, there is a high probability that mid caps would once again see another round of party. So, while being bullish, one should also be more careful in selecting the stocks. See if the company has a track record of paying dividends. While the dividends are ignored in general by investors and more particularly in a bullish market as the whole focus is on capital gains. The fact is that a dividend is a reflection of the underlying business and that is what one owns when one buys a stock. We take a look at 4 stocks, which on one hand have seen an improvement in their score in the last one month, plus they have outperformed nifty and they also meet the certain critical criteria on financial ratios.
Industrials strong, but be careful about valuations: Hiren Dasani of Goldman Sachs Asset Mgmt
"Emerging market equities, as an asset class, are not seeing inflows. They have seen outflows. The US is doing much better than the broader emerging market. The other dynamic is there is also a very strong AI (artificial intelligence)-driven theme that is driving the markets like Taiwan, which is a global supply chain for the entire AI-related and semiconductor segments"
Bet on largecap, index stocks; try and take your portfolio to safer sectors: Dipan Mehta
The larger ones, the large banks, the large IT companies, the large pharma companies, they are still in that ballpark figure of 15 times to 30-35 times trailing 12-month price to earning multiple.
What does the earnings growth outlook look like for next year? Sahil Kapoor answers
Very few countries have been able to do it and our data tells us that no more than two to three countries have been able to deliver 5% to 6% real returns even for investors who have been the most disciplined.
Valuations & earnings will take precedence soon says Feroze Azeez of Anand Rathi Wealth
The market's reaction has been quite volatile due to the exit polls. From a trader's perspective, it's been a seesaw. For investors, it’s important to remember that markets typically fall 10% from the peak twice a year.
India’s premium valuation may come under pressure amid fractured election mandate
Nearly half of the Nifty 50 constituents currently trade at a premium to their historical averages. Among major global indices, the S&P 500 trades at a forward price-earnings (P/E) of 20.6, 29% higher than the long-term average
Expect 13-15% earnings growth in FY-25 driven by topline growth, margin expansion: Venugopal Garre
Remember, we have not even yet seen a rate cycle decline as well, so those are the levers which come through late in the year from a support point of view for macro.
Energy transition, electrification theme to provide big investment opportunity: Nirav Sheth
We need to look forward to the next big critical event which is budget and I believe that that will set the tone for what India needs to do for the next 5-10 years and I believe that you are likely to see a reasonable level of indirect reforms.
After consolidating around current levels, market to deliver healthy returns over 3-5 years: Jitendra Arora
Jitendra Arora of ICICI Prudential discusses market consolidation, challenges in valuations, and investment strategies emphasizing long-term growth over short-term gains. He provides insights on sectors like private banks and real estate for potential investment opportunities. Arora says: "Private bank is one pocket where we find a lot of comfort as a house in terms of the valuations."
Looking for attractive valuation plus strong fundamentals? Financials is the answer, says Ramesh Mantri
Ramesh Mantri, CIO of WhiteOak Capital AMC, discusses the strong fundamentals and high valuations in various sectors, highlighting the attractiveness of financials. He mentions the impact of market rally, government spending, and the potential growth in the insurance and IT sectors. He also says private banks is the ignored part of the market and valuations are below long-term averages, fundamentals are very strong. Here a lot of alpha can be created.
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