The road sector is seeing a slowdown in capital expenditure and likely stalling of projects but engineering, procurement and construction (EPC) companies in the sector are catching investor fancy as they can brave the storm and stand strong, said market mavens. KNR Constructions and PNC Infratech have emerged as decent investment bets on account of their long track records, robust order books and attractive valuations, said the head of one of the leading PMS firms which manages assets worth around Rs 1,700 crore. “KNR and PNC have remained institutional favourites for a long period of time. And they have delivered good returns, even during the tough times for the industry,” said Santosh Meena, Head of Research, Swastika Investmart. The two companies remain his preferred picks in the EPC space given the healthy return ratios, lean balance sheets and better execution process, he added. PNC has executed 70 major infrastructure projects to date, pointed out ICICI … [Read more...] about Stocks on expressway | PNC Infratech, KNR Constructions may speed up on order inflows, valuations
Growth companies stocks
Representative image. Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Rebound in rural demand, easing inflationary pressures and recovery in margins bode well for consumer staple companies and could see them outperform discretionary stocks in H2FY23, foreign brokerage firm CLSA has said. “We continue to see high base affecting growth for the discretionary names. On the other hand, staples stocks, on a low volume base in H2FY22 and with gradual easing in inflation, are placed well to report better earnings,” it said in a recent report. Follow our live blog for all the market action In the December quarter last year, HUL , Colgate and Marico reported low single-digit volume growth, while discretionary companies like Varun Beverages, Asian Paints and Titan clocked a volume growth upwards of 20 percent. As rural markets … [Read more...] about Consumer staples to outperform discretionary stocks in H2FY23, says CLSA
Share to Twitter Share to Linkedin Despite a 15% fall year-to-date, Norfolk Southern stock (NYSE: NSC) has little room for growth. NSC stock has declined from over $290 in early January to around $205 in mid-October before rising to about $255 now. The YTD 15% fall for Norfolk Southern aligns with the -15% returns for the broader S&P500 index and its peers, CSX stock and Union Pacific UNP stock, both down over 15%. Looking at the longer term, Norfolk Southern stock is up 70% from levels seen in late 2018, compared to around 65% returns for the S&P500 index. This 70% rise for UNP stock since late 2018 was driven by: 1. the company’s P/S ratio, which rose 35% to 4.8x trailing revenues, from 3.5x in 2018, 2. a 14% fall in its total shares outstanding to 233 million, driven by share repurchases of around $7 billion between 2019 and 2021, and 3. Norfolk Southern’s revenue grew 7.9% to $12.4 billion over the last twelve months, compared … [Read more...] about What’s Driving The Growth For Norfolk Southern Stock?
Representative Image Rubber prices have slumped to a two-year low but tyre stocks have kept rolling in the green. The stocks of tyre companies such as Apollo Tyres, Ceat and JK Tyre, were up over 9 percent on Monday. All the major tyre stocks were on the rise at 3:10pm on the BSE today. Natural rubber prices lowered by 24 percent in Q3 over average last year. While Kerala rubber prices were lower by 11%, and butadiene was 1 percent down. This has led to the expected increase in the margins of tyre companies. Also, major tyre players have made capital expenditure (CapEx), according to Equirus, leading to gains in tyre companies' stock prices. According to data, the on-year global production of rubber has been on the rise, but consumption didn't grow in sync this year, though 2021 was a great time with a 10.9 percent run-up. Markets are at their peak of production season, which has also negatively affected the rubber prices, Rajiv Budhraja, Director General, Automotive … [Read more...] about Rubber prices hit 2-year lows but revival hopes keep tyre stocks in the green
Piyush Garg of ICICI Securities "Going forward, we are positive on Indian equity markets but given the higher valuation, a further rise may be muted," Piyush Garg of ICICI Securities says in an interview to Moneycontrol. Markets are coming out of the last 1.5 years of range as the US dollar and inflation seemed to have topped out, while triggers like higher government expenditure, pick-up in private capex and resurgence of the housing market have been the major driving force, he feels. The Executive Vice President and Chief Investment Officer, with around two decades of experience across various facets of finance, likes both PSU and private banks as they support different client bases, all of which will use credit to expand. Going forward, he believes overall 15 percent+ credit growth in the banking sector for FY24 is sustainable. PSU banks are high on corporate lending and have been well capitalised, which can keep them afloat in this move, he says. Do you think the … [Read more...] about Daily Voice | This chief investment officer likes banks as over 15% credit growth for FY24 looks sustainable
Share to Twitter Share to Linkedin Every large change in the business environment brings opportunity. Even a recession, which lowers sales for most companies, offers opportunities for a small number of companies to expand. Business planning for a recession (which I am predicting to start in late 2023 or early 2024) should include not only surviving, but also thriving in the aftermath of the downturn. Company leaders should sketch out their opportunities for growth at the beginning of their recession planning process. Then as they work through likely cuts to expenses, they can keep in mind the upside potential they want to grasp in the final stages of the recession. Growing market share is an achievable goal in a recession. An Arizona distributor of fasteners—nuts, bolts, nails, etc.—grew market share by stocking greater inventory than his rivals. Cutting inventory is a usual strategy for coping with a recession, but this company had entered the … [Read more...] about Business Growth In An Economic Recession
Share to Twitter Share to Linkedin Anheuser-Busch InBev stock (NYSE: BUD) has seen a rise of 17% in a month, while it’s down 1% this year. This compares with 6% and -14% returns for the broader S&P500 index over the same periods, respectively. This outperformance can partly be attributed to an upbeat Q3 performance, with sales and earnings rising, driven by higher demand. Furthermore, a recent upward revision in BUD’s stock price estimate from one of the Wall Street research firms has also bolstered its growth. Anheuser-Busch InBev is also the official sponsor for Qatar’s ongoing FIFA World Cup. Given that Qatar has banned the sale of beer inside the stadiums, the company is reportedly seeking a discount from its sponsorship deal with FIFA. [ 1 ] But now that BUD stock has seen a 17% rise in a month will it continue its upward trajectory, or is a fall imminent? Going by historical performance, there is a high chance of an increase in BUD … [Read more...] about What’s Next For Anheuser-Busch InBev Stock After A 17% Rise In A Month?
Representative image Dear Reader , The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of. You won’t know it if you see domestic stock indices and for most investors, that’s what matters. The Nifty is in the green as of noon, while there’s red elsewhere in major Asian markets. The root cause appears to be China, which is going through a state of unprecedented turmoil. Its citizens are protesting openly against the restrictions being imposed on them in the name of preventing the spread of COVID-19. The country is seeing a situation in the pandemic most other large economies have already faced in recent years. COVID cases are rapidly rising in China, coinciding with opening up of mobility and economic activity. This could then lead to cases spreading further, followed by … [Read more...] about Moneycontrol Pro Panorama | Indian stocks sitting pretty, but Asia feels the China chill
Share to Twitter Share to Linkedin Rental equipment provider Ashtead Group’s share price rose on Tuesday after it updated guidance for the full year. At £50.80 per share the FTSE 100 firm was last trading 1% higher on the day. Should investors snap up shares in Ashtead following impressive recent trading? Sales and Profits Soar In its trading update for its second quarter Ashtead said that revenues jumped 28%, to $2.5bn. This meant sales in the six months to October were up 26% year on year at $4.8bn. The company witnessed “ongoing momentum in robust end markets,” it said, a result that pushed adjusted pre-tax profit in quarter two 28% higher to $688m. First-half profit was up by the same percentage, at $1.2bn. Ashtead invested $1.7bn of capital on existing locations and greenfield sites during the first half. It also spent $609m on more than two dozen bolt-on acquisitions. This spending added another 72 locations to its core US business. … [Read more...] about Ashtead Hikes Full-Year Forecasts. Should You Buy The FTSE 100 Stock Today?
Rahul Jain, President & Head, Personal Wealth, Edelweiss Wealth Management Rahul Jain, President & Head, Personal Wealth, Edelweiss Wealth Management, believes the rally in the market is here to stay even though there might be short-term hiccups. Speaking to Moneycontrol , he highlighted four sectors to invest in and one to avoid. Edited excerpts: How do you see the markets positioned now? What is your outlook? We are constructive on the market. Overall, the outlook looks positive. It is always difficult to predict the short term. I think, predicting or giving assessment on the medium and long term looks easier, because the India story is fairly strong. And I would say that it is driven by multiple factors. One is the robust domestic demand. We have been seeing prudence in terms of monetary policies as well. If you see the way our overall financial monetary policies have been working versus what we have seen globally, I think we are in a far better space in … [Read more...] about Expect Nifty to deliver 10-15% returns in the next one year: Rahul Jain, Edelweiss Wealth