Here is what market gurus and industry captains told CNBC-TV18 today on how they see the near-term play out
Won’t list YONO in this financial year. When it comes to capital, we are quite comfortably placed and also we have recently raised our tier-I and tier-II bonds at very competitive pricing. So not at this point in time; maybe at an opportune time we will come to market for raising capital.
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Dinesh Kumar Khara, Chairman, State Bank of India,
It has been overwhelming to see the response that we have in the festive season this year. In the Navaratri we saw a jump of more than 100 percent as far as bookings are concerned compared to last year’s Navaratri. Similar kind of jump was also seen in retail sales which was to the tune of 90 percent. This continued throughout October and Navaratri was definitely the time when bookings as well as retails had peaked. It clearly shows that there is a great excitement among the consumers to buy cars in this festive season and the festive season is still not over. We have the next 14 days.
Shailesh Chandra, President - Passenger Vehicle business, Tata Motors
Banks are extremely well prepared to handle any kind of risks, which could come - heightened risks which should come because of COVID. Therefore, from a two-three year perspective, I would be buying some of these names. To begin with, at least the large quality private sector banks, even State Bank of India (SBI) for that matter and some of the top NBFCs are very well capitalised and also at the same time they have strong pre-provision operating profitability to provide for some of these bad assets which could come even if there is a second lockdown.
Suresh Ganapathy of Macquarie Capital Securities
We used to have ITC long back, maybe the downside is limited but for upside to materialise there has to be some tangible trigger to materialise, you cannot go just because the valuations are low, just valuations do not help the stock to perform. I believe that we have a better play available in Hindustan Unilever Ltd (HUL). It has worked very well for the last five years now, so we are continuing our overweight position on HUL. Plus rural is doing exceedingly well, so we have Dabur as well in our model portfolio which has given extremely strong results and aside of that we have Titan which has been forever part of the portfolio and then Tata Consumers.
Gautam Duggad, Head of Research-Institutional Equities, Motilal Oswal Financial Services
At O'Neil, the only emerging market we actually have rated in a confirmed uptrend and a strong buy right now is India. A lot of emerging markets are either in an uptrend under pressure or downtrend. So, India has been the best of the bunch technically. We do like HDFC, we do tend to favour technology more though and we do like Infosys and TCS. So, we do still really like the big Indian technology outsourcers and we do still favour growth even though I know that banks have been doing better.
Randy Watts, CIO, O'Neil Global Advisors
We have got reasonable marketing margin which we are happy with. In the time to come, we expect that the crude prices should remain benign, around $40 per barrel and therefore we think that we can continue to have this margin. Diesel consumption so far in November has been higher. Petrol consumption too was higher but it was higher due to increase in personal mobility.
MK Surana, CMD, Hindustan Petroleum Corporation Ltd
The banks have for the most part surprised – in fact even some of the PSUs have done pretty well. So, assuming that this is not just a one quarter phenomenon, you will see an improvement.
Gautam Trivedi, Co-Founder & Managing Partner, Nepean Capital
Resilience of the Indian economy is coming to life. India has shown its resilience with a V-shape recovery, they were very conjectures about U-shape, L-shape but these quarters’ number at least suggest that it is a V-shape recovery so far.
Manish Sonthalia, Head Equities- PMS, Motilal Oswal AMC
Albuterol contributed a little bit to the total number of growth itself. I think the Albuterol story will really come out in Q4. We are still in ramp up mode and so we will do more in Q3 than we have done in Q2. Q4 would be more like our steady state kind of numbers. With Perrigo going out of the market and not having a timeline to come back, I think it is a great opportunity. We want to play it strategically and that is how we have been doing it so far.
Nilesh Gupta, MD, Lupin
Our lead vaccine has just finished enrollment of phase II for 1000 plus patients and we should see the read-out come out by end of November. If we see good data on immunogenicity and if we are able to show good immune response, we will go forward for phase III trial in December. We will start the large phase III trial by end of December. If everything is on track we can still see completion of this study in the next 2-3 months and look for an approval by first quarter of next financial year.
Shravil Patel, MD, Cadila Healthcare
Future holds fair bit of activity, we are optimistic but in a wait and watch mode. The company is focusing on basics and keeping costs under control. Capacity utilisation now is above 90 percent. Our backlog overall has started to come closer to our runrate in Q3 and Q4. There you will see positive momentum for sure. We are seeing movements on sustainability based projects.
Ashish Bhandari, MD and CEO, Thermax
As long as we don’t have a second wave and the situation on the pandemic doesn’t deteriorate, I think demand will continuously, steadily improve. Going forward, our focus is going to be on volume growth and investing back to get volume growth. We would be far more comfortable in our stated range of 20-25 percent range, in fact we are already seeing some amount of hardening of input prices. So, I think over a period of time our objective would be better volume growth and margins at 20-25 percent depending on input prices.
Bharat Puri, MD, Pidilite Industries
On a consolidated basis as well as on a standalone basis, we are still targeting for 5-10 percent growth on an annualised basis. We have got the labour back, we are seeing traction at the site. Based on that you will see Q3 and Q4 numbers much better. Our Q2 revenue on a standalone basis is around Rs 1,900 crore which is 4 percent lower than the previous year. Compared to Q1, it is higher by around 30 percent. Company’s orderbook visibility at a standalone level is around Rs 15,000 crore.
Manish Mohnot, MD of Kalpataru Power Transmission
We should do something better than this in the remaining two quarters. We clear our debts at the rate of about Rs 200-250 crore every year, currently, we have about Rs 1,400 crore, we also have liquidity of about Rs 500 crore so the net debt would be about Rs 800-900 crore.
Shailendra Chouksey, whole-time director, JK Lakshmi Cement
Some sectors have shown steady improvement, but there are some sectors that are still languishing. So we need to see how this whole thing plays out over the next two quarters, but we remain cautiously optimistic. We are in a state where a larger part of the corporate sector is in the process of deleveraging as a result of reduced economic activity. So, the outlook remains sober for the next two quarters
Ajay Mahajan, MD & CEO of CARE Ratings
We will be able to execute this order book over the period of next nine months or so. Our order book is at a very healthy level and we expect to continue to build the momentum that we have built in terms of the rate of increase. We are confident that we would be able to continue with the momentum moving forward. The whole environment on the policy front is very supportive of increasing the ethanol blend.
Shishir Joshipura, MD and CEO, Praj Industries
We do expect that we should be able to do Rs 14,000-15,000 crore of order intake this year. We have been able to ramp up our execution on all the projects very effectively in Q2 and the overall numbers for first half, there is a growth of almost close to 5 percent. Generally, the execution ramps up further in Q3 and Q4. With the larger revenue coming up in H2, we will be able to absorb the commodity price impact.
Rajeev Agarwal, CFO, KEC International
We had a phenomenal quarters in terms of profit and loss, topline, bottom-line and our balancesheet. The consumer demand is back in the economy, we have seen good topline growth and our consumer business is at 13 percent. EPC business which has usually been a drag, I think this quarter we benefited by having certain project closures and we have delivered a positive bottom-line on EPC business as well after several quarters.
Anuj Poddar, Executive Director of Bajaj Electricals
Europe has gained market share in the two segments, which was the ultra-high performance segment and the UUHP. We believe that we have garnered market share in Europe. As far as Q3 is concerned, there is lockdown across Europe, we have seen France lockdown, we have seen Italy lockdown, we have seen Germany semi-lockdown but this is not effecting the tyre industry because tyre has seen as a central commodity. I am optimistic and I believe that there will be growth as far as Q3 for Europe is concerned
Neeraj Kanwar, Vice Chairman and MD, Apollo Tyres
Among financials we clearly like companies, which are market leaders in their respective segments. So we have one of the fastest growing and best position in housing finance company, we have largest CD finance companies, the insurance companies that we have has one of the best return ratios in the industry. Right now there is lot of sector rotation going on so financial is something that we have added in the past 2-3 months and gong ahead we see the risk reward equation in financials is much more favourable than other segments in the market that is the reason we are quite optimistic on financials.
Aman Chowhan, fund manager at Abakkus Asset Management
(Edited by : Abhishek Jha)