Here is what market gurus and industry captains told CNBC-TV18 today (October 8, 2020)
In general, to identify compounders, the broad parameters to look at are secular delivery of fresh cash, a secular delivery of access return or RoE greater than the cost of equity. Many of the Indian FMCG stocks have actually delivered that year-over-year and many of the Indian paint companies are also in the same bracket. So from that perspective, FMCG would continue to be a safe haven for investors and many of the companies in that sector will continue to be compounders – as we like to call them.
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- Manishi Raychaudhuri, Asian Equity Strategist, Equity Cash Asia Pacific at BNP Paribas
Many customers are speeding up their transformation which is related to cost and cloud gives an opportunity to optimize and reduce the cost. That is where the response and the recovered phase is right now working together for many of the organization.
- DD Mishra, Sr Director Analyst, Gartner
Growth was never a challenge for the banking system. If you do your business well, I think there is enough growth in the market available for you to capture. I think the stress in the system is something that has been pushed to the background as it were. So, one hopes that this stress might be resolved because there is one good indicator that quite a few of the bank chiefs are saying that the number of applications for restructuring is very minimal if any. So, it probably gives some confidence that the companies are probably not affected as much as we thought earlier because they don’t need the restructuring.
- UR Bhat, Director, Dalton Capital Advisors
The reason why we are doing a share buyback first and a dividend followed immediately are to create an equitable distribution across the category of shareholders that would have different tax regimes in their hands.
- Farid Kazani, Managing Director, Majesco
Our confidence in what we said last time is significantly higher today. We caveated saying that this is the basis for which we are going forward and we are making our investment on that basis, now we have the results and the outcomes behind us. So it gives us even more confidence in what we have shared with you. No change to what we have said.
If you look at new customer additions in the 1 million, 5 million, 10 million kind of a range, you will see a steady expansion of the base of the pyramid, which is always a good indicator of how new customer additions are coming through. The deal pipeline itself we don’t break it up.
- Rajesh Gopinathan, MD & CEO, TCS
There is a slight earnings acceleration. We have a neutral stance on the IT sector. On TCS, we have an accumulate stance with probably a 2-3 percent upside, nothing more than that.
One stock we still have a buy on and where we think there is a fair bit of upside is HCL Technologies. The stock has been punished for the investment it has made in the products business of IBM. The market has been attributing fair bit of negative value to that and is probably not giving adequate valuations for the IT and ITES business that the company has, which is as good as any tier-I company in the market.
- Girish Pai, Head Of Research, Nirmal Bang Institutional Equities
(Edited by : Abhishek Jha)