Tag: Best PMS in India

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Call: +91 9624421555 / +91 9624461555

The limited upside in markets after the rally, Nifty to be at 15,000 by December 2021: Bofa Securities

After the strong rally since April, there is a limited upside in Indian equities and the markets will end 2021 with a low single digit gain, an American brokerage said on Wednesday.

Bofa Securities said it is ‘not as bullish’ and gave a target of 15,000 points for the 50-share benchmark Nifty by the end of the newly started year.

Markets have rallied by 80 per cent since April after a heavy 40 per cent correction following the announcement of the COVID-19-related restrictions. Many analysts, including RBI Governor Shaktikanta Das, have raised concerns over the over-heating in the markets.

The benchmark Nifty was trading 0.6 per cent up at 14,607 points at 1259 hrs on Wednesday. ”We are giving a target of 15,000 on the Nifty, which means there is a limited upside now. We are still bullish, but not as bullish,” its India equity strategist Amish Shah told reporters. He mentioned the strong rally witnessed by the markets in the immediate past for its more conservative view on the markets.

The brokerage is overweight on sectors including financials, metals and steel, and industrial, he said, adding that information technology, energy, consumer discretionary and auto are the sectors on which it is underweight.

Within the financial sector, Shah said the brokerage feels the banks are adequately provided for the possible asset quality reverses and called the prediction of a jump in the dud assets by RBI in its biannual Financial Stability Report as conservative. He said the valuations of banking and financial companies are also lower from the historical highs which make it an attractive bet, and adde d that there is also a chance of higher credit growth fueling earnings for select lenders which will make it an attractive bet.

On the metals and steel and industrials sectors, the call is driven more from a likely surge in capital expenditure from the government, real estate and infrastructure sectors which we should be seeing, he said.

The upcoming budget will have an expansionist bias in the fiscal policy while the inventory levels will dip in the realty sector, leading to a surge in new projects, he said. Shah, however, said that a full private sector capital expenditure cycle recovery is still two years away and it will be select sectors which will be seeing a growth in investments in 2021.

The target on the benchmarks also assumes a net addition of USD 10 billion to the foreign portfolio flows into the country, over and above the USD 22 billion in 2020, he said.

The foreign flows will continue on the back of stimulus measures and easy monetary policies in the developed world, he said, adding that Joe Biden will continue with such measures in the US on taking charge.

Shah also said that the government will continue on its reforms agenda in the new year as well and specifically pointed out power sector where there can be greater private sector play in distribution.

Eqwires Research Analyst

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Call: +91 9624421555 / +91 9624461555

This US healthcare stock set to outperform in 2021; Credit Suisse raises target price

2020 was the year of the healthcare and pharmaceutical sector when it came to stock market investment. Global Brokerage and research firm Credit Suisse, in a recent report, highlighted that the price-performance of healthcare subsectors such as clinical laboratories, managed care, medical devices, and contract research organizations outperformed the S&P 500 index. The brokerage firm said that it selectively views further upside potential for stocks that have demonstrated ability to enhance market positioning throughout the pandemic with strategic innovation and capacity investments. With this, Credit Suisse has upgraded Thermo Fisher to an ‘outperform’ rating.

Upgrade to ‘Outperform’

The report said that Thermo Fisher (TMO) is highly levered to healthy industry fundamentals, as well as drivers in rising biopharma demand, increased exposure to faster-growing services markets, innovation, geographic expansion, and improving operational efficiency. Credit Suisse had initiated the coverage of the stock less than a year ago with a ‘Neutral’ rating. “Since that time, the market has evolved meaningfully with the COVID pandemic, driving some unexpected catalysts and opportunities for the Life Science group broadly speaking. TMO has admittedly far exceeded expectations in the current environment, with the company recently increasing its 4Q guide meaningfully, now calling for +40% organic growth,” they added.

Although analysts at Credit Suisse see risks to the stock as covid-19 testing reduces with the distribution of the vaccine, the report said there are other potential offsets. These include significant 2020 PCR instrument placements, COVID vaccine/therapy development and commercialization opportunities along with expanded capacity enabled by COVID-driven investments. “More specifically, as it relates to COVID vaccines and therapies, TMO is working on 250+ projects, representing an opportunity now estimated to be north of its prior expectation of $1 billion in revenue,” Credit Suisse said.

Valuation below peers

In terms of valuation, the stock trades at 18.6x 2022 EV/EBITDA, below the Life Science Tools peer average (20.9x), albeit still above its historical five-year average of 17.0x. However, the brokerage firm believes that valuations do not adequately reflect its higher organic revenue growth run-rate and strengthening margin profile, particularly as it enhances its market-leading positioning with strategic investments across the biopharma arena.

Target price

The revised target price for Thermo Fisher has been set at $556 per share. Currently, the stock trades at $503 apiece. In its Blue Sky scenario, Credit Suisse does see the potential for the stock zooming as high as $667 per share. On the other hand, if things go south and R&D slows down along with a stringent regulatory environment, the stock could tumble to $445.

Eqwires Research Analyst

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Call: +91 9624421555 / +91 9624461555

Gold, silver may continue to trade sideways to down as dollar index rallies; check support, resistance levels

Commodity prices traded volatile during the week passed by with most of the commodities in non-agro segments witnessed selling. Crude oil prices managed to end in green while base metals traded weak on demand growth concerns. Bullion prices pared weekly gains in the second half of the week with rally in dollar index. The dollar index rose by 0.75% for the week in a rare move against widening deficit and higher stimulus.

Gold prices traded lower with spot gold prices at COMEX ended down by more than 1% to $1828 per ounce losing its shine for the second week of the year. Gold prices at MCX ended over half a percent down to Rs. 48704 per 10 grams for the week. The spot rupee appreciated by 0.24% against the dollar for the week. Gold ETF holdings witnessed outflows as holdings at SPDR Gold Shares fell to 1177.63 tonnes during the week from previous week’s 1182 tonnes. The CFTC data showed that money managers decreased net long positions by 46859 lots in the last week.

Silver prices plunged for the second week with spot silver prices at COMEX fell by 2.57% to $24.77 per ounce for the week. MCX Silver March futures ended in green by 0.83% to Rs. 64764 per KG despite selling in COMEX prices. The CFTC data showed that money managers decreased their net long positions to seven week low by 43395 lots in last week.

Bullion prices traded down for another week on strong investors’ appetite for dollar. The rally in the dollar index triggered selling in precious metals on Friday despite a fall in bond yields and weaker equity indices. The traders and investors engaged in a roller coaster ride during the week on mixed global cues. The expectations of more stimulus announcements from the Biden administration and ultra-low interest rates from US FED kept most of the downside limited in bullion prices during the week.

We expect bullion prices to trade sideways to down for short term with COMEX spot gold having resistance near $1870 per ounce and support at $1800 per ounce. At MCX, Gold February prices have near term resistance at Rs. 49700 per 10 grams and support at Rs. 47900 per 10 gram. COMEX silver spot has near term resistance at $26.70 per ounce with support at $23.50 per ounce. MCX Silver March has important resistance at Rs. 67500 per KG and support at Rs. 62000 per KG.

Eqwires Research Analyst

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Call: +91 9624421555 / +91 9624461555

IRFC IPO: India’s 1st PSU NBFC issue opens Monday, grey market premium weak; should you subscribe?

The Rs 4,633-crore Indian Railway Finance Corporation (IRFC) initial public offer (IPO) is set to open for subscription on Monday, January 18, 2021, in the price band of Rs 25-26 apiece. At the upper end of the price band, IRFC would raise Rs 4,455 crore, and at the lower end, Rs 4,633 crore. The anchor book will open today (Friday, January 15, 2021) and will be allocated up to 60 per cent of the portion reserved for QIBs, to build investor confidence on the IPO. This is for the first time that a PSU enterprise is using the anchor-investor route. In the grey market, IRFC shares were seen trading with a muted premium of Rs 1.60 apiece over the issue price. This is the first public issue by a railway non-banking financial company (NBFC).

Railway company to list

Up to 50 pe rcent of the net offer will be reserved for qualified institutional buyers (QIBs), 15 per cent for non-institutional buyers and remaining 35 per cent for retail investors. Earlier in April 2017, the Union Cabinet had approved the listing of five railway companies. Out of which IRCON International Ltd, RITES Ltd, Rail Vikas Nigam Ltd (RVNL) and Indian Railway Catering and Tourism Corporation (IRCTC) have already been listed. IRCTC shares were listed in October 2019 with over 100 per cent listing gains. While RVNL shares got listed in April 2019, and made a flat debut on stock exchanges. Shares of IRCON International Ltd were listed on the bourses in September 2018, with a 14 per cent discount to its IPO price.

Should you subscribe to the IRFC IPO?

Likhita Chepa, Senior Research Analyst at CapitalVia Global Research, told Financial Express Online, that it has a unique business model and hence its valuations can not be compared to any benchmark. Considering its financials and prospects, the issue seems to be an undervalued offering. However, if the government or MoR changes its policies regarding IRFC, then its profitability can get affected. As the primary market has been awarding investors with a fair amount of listing gains in recent times, this issue is also expected to draw a significant amount of investors’ interest. “The strong fundamental aspects are making it a good bet for not just listing gains but also for long-term investment,” she said.

Abhay Doshi, Founder, UnlistedArena.com – dealing in Pre-IPO & Unlisted Shares – told Financial Express Online that the issue price of IRFC looks quite attractive. “Although the size of the issue is quite big and dates of IRFC IPO will clash with Indigo Paint IPO, we may not see huge oversubscription and stellar listing gains like recent IPOs hence, investors with a medium to long term view may find it suitable,” Doshi added.

Most of the brokerages have recommended to ‘subscribe’ to the issue.”GEPL Capital has recommended to ‘subscribe’ to the issue for the long-term on the back of the relatively low-risk business model, strategic role in financing growth of Indian Railways and long term prospects considering electrification and network expansion. The offer is valued at a one time FY20 price to book value.

Those at LKP Securities have also given ‘subscribe’ rating to the dedicated market borrowing arm of the Indian Railways. “Attractive valuation with healthy return ratios make us optimistic on the long term prospects for IRFC,” it said.

Eqwires Research Analyst

Best SEBI registered Intraday tips provider and Best SEBI registered stock advisory company

Call: +91 9624421555 / +91 9624461555