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08 Dec

Strong jump in online sales – Tata Consumer

Update on the Indian Equity Market:
On Monday Nifty closed 0.7% higher at 13,356. Among the sectoral indices, Media (+2.8%), PSU Bank (+2.1%), and Pharma (+1.6%) closed higher. Nifty Realty (-0.3%) was the only sector which closed lower. UPL (+4.6%), Adani Ports (+3.6%), and HUL (+3.2%) closed on a positive note. SBI Life (-1.5%), Nestle (-1.4%), and Kotak Bank (-1.4%) were among the top losers.

Excerpts from an interview of Mr. Sunil D’Souza, MD and CEO, Tata Consumer with CNBC-TV18 dated 3rd December 2020:

● Any M&A deal of size and significance that happens in India does pass through the Tata Group.
● For the March quarter, 2.5% of sales were online and now sales are around 5-6% online out of total sales.
● There is a strong jump in online sales and the company expects the momentum to continue.
● On the food and beverages business, he said the results were good and the company is happy with its numbers.
● The core category business and out of home businesses are showing traction as there is an ease in lockdown.
● On Core categories, he said the tea is coming back to double-digit value growth. The company is gaining market share.
● On Tata sampann, he said it has outgrown the total food business by 3x.
● On tea prices, he says, the prices are moving in a small range. On the coffee side of the business, he says, Eight O’clock coffee which is a big brand is showing good momentum.
● On domestic side, Tata Coffee which is a subsidiary is a B2B business and there is some softness.
● On Starbucks, he said the company will continue to open outlets. The company has 201 outlets. The number of outlets opened this year might be equal to what the company opened last year.

Consensus Estimate: (Source: market screener and Investing.com websites)
● The closing price of Tata Consumer was ₹ 567 as of 7-December-2020. It traded at 57x/ 46x/ 41x the consensus Earnings per share estimate of ₹ 10/12.3/13.9 for FY21E/ FY22E/ FY23E respectively.
● The consensus average target price for Tata Consumer is ₹ 571/- which implies a PE multiple of 41x on FY23E EPS of 13.9/-.
Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Aniket Khanolkar Uncategorized Coffee, Starbucks, Tea 0 Comments Read more...

07 Dec

Truck demand coming back; not enough buyers for buses – Ashok Leyland

Update on Indian equity market:
Markets continued the upward journey to end the truncated week as Nifty closed the day 140 points higher at 13,274. Within the index, ADANIPORTS (4.6%), HINDALCO (4.4%), and ICICIBANK (4.4%) led the index higher while RELIANCE (-0.8%), BAJAJFINSV (-0.6%), and HDFCLIFE (-0.6%) were three out of 11 losers. All the sectoral indices ended in the green with BANK (2.4%), PVT BANK (2.3%), and PSU BANK (1.5%) leading the pack.
Excerpts of an interview with Mr Anuj Kathuria, Chief Operating Officer, Ashok Leyland (AshokLey) published on CNBC-TV18 dated 3rd December 2020:
The monthly sales data for the month of November reported the seventh straight monthly improvement in sales, though the demand for buses was tepid.
He said that initial signs of demand coming back in the long-haul segment. The truck demand is coming back due to the movement of cement and steel whereas travel restrictions in the country have led to muted demand for buses.
The industry is witnessing growth in intermediate commercial vehicles. The tippers segment is holding strong and the company is expecting further improvement in MHCV (Medium & Heavy Commercial Vehicles) segment in December as well.
He said that the industry may see some replacement demand as the ownership cost of BS-VI (Bharat Stage-VI) is comparably lower. He also highlighted that state transport undertaking activity has intensified and the company is seeing more orders coming through.
The company is expected to show QoQ improvement in margins, but higher commodity prices could limit the gains.
Consensus Estimate: (Source: market screener website)
The closing price of AshokLey was ₹ 95/- as of 04-Dec-2020. It traded at 36x/ 20x the consensus EPS estimate of ₹ 2.6/ 4.8 for FY22E/ FY23E respectively.
The consensus target price of ₹ 90/- implies a P/E multiple of 19x on FY23E EPS of ₹ 4.8.
Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Abhishek Salunke Ashok Leyland, Auto Ashok Leyland, CV, Indian auto industry 0 Comments Read more...

04 Dec

Demand for loans coming back – SBI

Update on the Indian Equity Market:
On Thursday, Nifty 50 ended at 13,134 (+0.2%). Among the stocks, MARUTI (+7.3%), NTPC (+4.2%), and ONGC (+4.2%) ended with gains while SBILIFE (-2.0%), HDFCBANK (-1.8%), and TCS (-1.4%) ended the day with losses. Among the sectoral gainers, PSU BANK (+4.8%), MEDIA (+2.8%), and METAL (+2.5%) led the gainers and IT (-0.5%), PRIVATE BANK (-0.5%), and FINANCIAL SERVICES (-0.3%) led the laggards.

Excerpts of an interview with Mr. Dinesh Khara, Chairman, State Bank of India (SBIN) published in Business Standard on 3rd December 2020:
• The bank is cautious about loan demand from vaccine manufacturers given the huge investments which may turn sour if central approvals are not forthcoming. Proposals worth Rs 1,000 crore have been received from the pharmaceutical segments.
• When there is unlocking, there is demand revival, which is going to be the main growth engine in the current scenario. He expects the demand to be back with a vengeance after covid.
• There has been a significant improvement in sanctions and disbursements to unsecured personal loans and express credit loans. In September, in the personal loans space, there was 55% growth year-on-year. Disbursements went up as high as 61 percent. In the home loans segment, there was a 49% growth.
• SBIN has taken stock of the special mention accounts (SMA) 1 and 2 and there is time till March 31 for carrying on the restructuring exercise. There is an internal target of completing 50% of restructuring by December, and the rest by February.
• They have given unsecured loans to customers who have been maintaining their salary accounts, employed with either the government or well-rated private sector corporates.
• Recovery is ensured through the Insolvency and Bankruptcy Code, restructuring, and the non-discretionary one-time settlement schemes. One major resolution went through in the early part of this quarter.
• There has been a delay in big accounts in financial sectors looking for resolution due to litigation. In such cases, an elaborate process is laid out, and timelines given for such accounts are stringent.
• In the recent past, they have raised tier I and tier II capital with prices set at the benchmark.
• SBIN had the work-from-home policy in 2017 and the pandemic has helped SBIN leverage this policy. They have reframed this policy to ‘work from anywhere’ and digitised some of the non-customer facing activities as well. They can’t have a work-from-home policy for everyone as they are a customer-facing organisation and need to engage with customers.
• When YONO, SBIN’s digital banking app was put in place, it was to be a distribution platform for the bank’s products. The definite and concrete plans in terms of listing it will be shared in some time.
• In the post-Covid world, some in-person meetings will probably come back. There will be a paradigm shift when it comes to the way SBIN has been conducting themselves in the past to the way they will conduct themselves in the future.

Consensus Estimate: (Source: market screener and investing.com websites)
• The closing price of SBIN was ₹ 256/- as of 03-December-2020. It traded at 1x/ 0.9x/ 0.8x the consensus book value estimate of ₹ 262/ 286/ 318 for FY21E/ FY22E/FY23E respectively.
• The consensus target price of ₹ 276/- implies a PB multiple of 0.9x on FY23E BV of ₹ 318/-.

Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Maitreyee Vaishampayan SBI disbursements, loans, restructuring 0 Comments Read more...

03 Dec

Royal Enfield is many steps ahead of the competition – Eicher Motors

Update on the Indian Equity Market:
On Wednesday, NIFTY closed at 13,114 (-0.04%). Top gainers in NIFTY50 were GAIL (+4.9%), ONGC (+3.8%), and ASIAN PAINTS (+3.7%). The top losers were KOTAK BANK (-3.3%), HDFC Bank (-1.9%), and HDFC (-1.4%). The top sectoral gainers were REALTY (+2.9%), METAL (+2.6%), and AUTO (+1.2%) and the sectoral losers were BANK (-1.2%), PVT BANK (-1.2%), and FIN SERVICES (-1.1%).

Excerpts of an interview with Mr. Siddharth Lal, MD – Eicher Motors with ET Now dated 1st December 2020:
• With a 90-95% market share in the 250cc-plus motorcycle segment, Eicher Motors-owned Royal Enfield is readying itself with a mid-term plan called RE 2.0, which is focused on expanding product portfolio, geographical reach, and non-motorcycle revenue.
• Despite its vast cash reserves, the company is not eagerly looking at acquisitions, including the likes of the Italian brand Ducati.
• It has taken them time to get production up. There is a demand for more bikes from the dealers, and international customers.
• Currently, they have a bare minimum inventory everywhere. So, retail has been very strong, the inventories are depleted entirely, and production has caught up. The supply and timing was an issue for them. But even the supply is back in order.
• In the long term, they always have had a bullish view on the mid-size segment just because people want to upgrade and there’s a premiumization trend.
• They have all the technology and have built the capability. Their commercial abilities in terms of sales, marketing, distribution, and service are very strong.
• People should not discover Royal Enfield because they put an ad listing the price of their motorcycles. They should discover them because they’ve got rides and events, they’ve seen a friend or a colleague ride a Royal Enfield, or someone’s talked about it.
• They want to be able to reach each customer differently and everything has to be premium. It’s much curated, it’s very thought through, it’s very nicely done. So, once customers get that premium experience, they don’t want to go back into a shabby experience.
• They will do an acquisition where they think they can only incrementally improve it.
• They have so much opportunity in Royal Enfield itself, so they’d just conserve energy for that. If an opportunity to do something like they have been doing with Royal Enfield over the last 10 years, then it’s something worth putting in their time and effort.
• They have a very strong filter about how they would like to monetize their brand. It has to serve its huge audience of customers and give them a better motorcycling experience.
• They’re not positioned as a cheap brand anywhere in the world. They don’t sell on price. They are an alternative brand. They offer an alternative world view to their customers. Certainly, it’s good value, it’s at a good price.
• The way they’re working on EVs is that they are not going to be the first to the market. But rather they’d study the market, understand the technology – there’s a full team at Royal Enfield who does EVs now.
• They’re constantly studying the market, riding bikes, making their mule bikes, prototype bikes, and riding them themselves, seeing what happens, seeing what they like, don’t like.

Consensus Estimate: (Source: market screener and investing.com websites)
• The closing price of EICHERMOTORS was ₹ 2,531/- as of 2nd December 2020. It traded at 48x/ 31x/ 25x the consensus earnings estimate of ₹ 52.3/ 80.4/ 101 for FY21E/FY22E/23E respectively.
• The consensus price target of EICHERMOTORS Ltd is ₹ 2,301/- which trades at 23x the earnings estimate for FY23E of ₹ 101/-
Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Sharvari Joshi Auto, Eicher Motors, Rallis 0 Comments Read more...

02 Dec

Industry at pre- Covid levels in terms of volume, price – Tata Steel

Update on the Indian Equity Market:

On Tuesday, Nifty ended 1.1% higher at 13,109. The top gainers for Nifty 50 were GAIL (+8.3%), Sun Pharma (+5.7%), and IndusInd Bank (+4.9%) while the losing stocks for the day were Nestle (-2.6%), Kotak Bank (-1.5%), and Titan (-1.3%). The top gaining sectors were Realty (+3.3%), PSU bank (+2.9%), and IT (+1.9%). FMCG (-0.04%) was the only losing sector.

Edited excerpts of an interview with Mr T V Narendran, MD & CEO, Tata Steel Ltd; dated 01st December 2020 from Business Standard:

Recovery has been faster than expected for the steel sector and prices have touched a high.

Talking about the steel prices Mr Narendran said that the long-term average for steel prices in the past 10-12 years have been $600 a tonne. Steel, iron ore & coal prices are just about coming to long- term spreads.
In India, he is very optimistic in terms of demand as across the sectors there is a pickup in consumption. There is some concern that a fresh wave of the Covid-19 virus can disrupt recovery, but, otherwise, the steel consumption growth rate has to match or exceed that of the GDP. So, the steel industry has to do well and Tata Steel, being one of the lowest-cost producers with a very strong franchise, will deliver it.

About the economic recovery he said that even though the industry has shifted from exports to domestic, they are struggling to keep up with market requirements, which is a good problem to have. The industry had expected the normalcy to return in March-21 quarter but it is already at the pre- covid levels, both in terms of volumes & prices.

The segments that recovered faster than expected according to Mr. Narendran are automotive where first passenger cars started to pick up; the commercial vehicle segment was slow but medium & light commercial vehicles started showing improvement from September. The heavy vehicle segment has also started to pick up.

The more recent surprise was the recovery in the residential housing market.

Tata Steel will be focusing on completing the second phase of the Kalinganagar plant. This will take the capacity to 25 million tonnes (MT) from 20 MT).

The Company will try to grow at least at the rate at which consumption of steel is growing in India.

The Company’s India business generates enough cash to support the Company’s growth. They are confident of growth without adding to the debt.

Once Tata Steel is on track as far as deleveraging goes and the SSAB transaction is done, the Company will be in a comfortable position. Even the Board will be in the position to continue to support the growth.
The Company participates and bid for iron ore mines at prices that would work for them. Tata Steel will keep bidding for mines that come up for auction in the hope of getting some at reasonable prices.

Consensus Estimate: (Source: market screener website)
The closing price of Tata Steel Ltd was ₹ 587/- as of 01-December-2020. It traded at 25.5x/ 9.4x/9.2x the consensus earnings per share estimate of ₹ 23.0/62.5/64.1 for FY21E/ FY22E/ FY23E respectively.
The consensus target price of ₹ 572/- implies a PE multiple of 9x on FY23E EPS of ₹ 64/-.

By Neha Kshirsagar Tata Steel 0 Comments Read more...

01 Dec

Any new Government scheme is welcomed as it expands the market– SBI Life Insurance

Update on the Indian Equity Market:

On Friday, Nifty closed 0.1% lower at 12,969. Within NIFTY50, TATAMOTORS (+2.8%), ASIANPAINT (+2.0%), and HEROMOTOCO (+2.0%) were the top gainers, while NESTLEIND (-4.3%), POWERGRID (-3.2%), and JSWSTEEL (-2.6%) were the top losing stocks. Among the sectoral indices, REALTY (+2.7%), MEDIA (+1.5%), and AUTO (+1.4%) were the top gainers while IT (-0.4%) was the only losing sector.

Any new Government scheme is welcomed as it expands the market– SBI Life Insurance

Excerpts of an interview with Mr. Mahesh Kumar Sharma, MD & CEO, SBI Life, aired on CNBC-TV19 on 27th November 2020
● The growth trend for SBI Life remains healthy. Management is seeing numbers similar to last year and things are panning out as per internal targets.
● SBI Life did well in October even though the growth was lower than peers. Some areas like ULIPs are seeing improvement and Protection segment growth has been very strong.
● 1QFY21 was weak due to strict lockdowns. SBI Life like its peers had to jump from physical one-to-one selling to digital selling in the least possible time. Management is seeing a month-on-month improvement since June. They expect growth to continue in 2HFY21. Generally, for life insurance companies, 1HFY has lower seasonality and 2HFY is seasonally stronger.
● SBI Life has seen some increase in Covid-19 claims but the quantum is not worrying.
● Demand for risk products is higher from September. Credit life has grown in low double digits since September. Management expects this growth to continue on the back of strong growth in credit offtake.
● SBI Life is seeing YoY growth in ULIPs on the back of picking up of the market, improvement in sentiments easing of lockdowns.
● SBI Life has already repriced products that have an interest rate guarantee to adjust for a drop in interest rates. They continue to reprice products where needed.
● SBI Life has a lot of customers on the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY). The government has been talking about Saral Bima Yojana. Management thinks that any new scheme is welcomed as it increases the market and penetration. And if everyone takes insurance, it is going to be a very profitable business.

Consensus Estimate (Source: investing.com and market screener websites)
● The closing price of SBILIFE was ₹ 849/- as of 27-November-2020. It traded at 55x/ 47x/ 39x the consensus EPS estimate of ₹ 15.3/18.2/21.8 for FY21E/ FY22E/ FY23E respectively.
● The consensus target price of ₹ 967/- implies a PE multiple of 44x on FY23E EPS of ₹21.8/-.
● In the case of insurance companies, the embedded value per share is the correct multiple for valuing the company. The consensus estimate of this metric is not available on any of the websites.

By Mrunmayee Jogalekar Insurance, SBI Life Insurance, Uncategorized 0 Comments Read more...

27 Nov

An uptick in demand during Diwali – VST Tillers Tractors

Update on the Indian Equity Market:
On Thursday Nifty closed 1.0% higher at 12,906. Among the sectoral indices, PSU Banks (+1.9%), Metal (+3.9%), and Fin Services (+1.7%) closed higher. None of the sectors closed lower. Eicher Motors (-1.6%), Maruti (-0.7%), and BPCL (-0.7%) closed on a negative note. JSW Steel (+7.0%), Tata Steel (+5.2%), and Grasim (+4.4%) were among the top gainers.

Excerpts from an interview of Mr. Antony Cherukara, MD, VST Tillers with CNBC-TV18 dated 23rd November 2020:

● Better agriculture and the festive season have led to rising demand for tractors and farm equipment.
● Speaking on the outlook, Mr. Cherukara says, the outlook is positive as an uptick in demand is seen.
● There was an uptick in demand during the Diwali festival.
● On tillers, he says, the import slowdown is coming into place, and going forward there will be an effect on demand based on that.
● 15-20% of imports of tillers were from China earlier. The Chinese tillers are cheaper as compared to Indian manufacturers. The quality of Indian tillers is good.
● On tractor sales, he says, the expected growth for tractors in FY21E is expected to be in the range of 12-15%, and a 20%+ growth is expected in tillers.
● There is not much visibility on Q4FY21 as of now.
● Speaking on cash on the books, he says, the cash flow is healthy and the company has generated 70cr + of additional cash flow in H1FY21.
● The relocation of the Benagluru facility to Hosur is on track and it is expected to be done by Q4FY21E. There will savings after this relocation.

Consensus Estimate: (Source: market screener and Investing.com websites)

● The closing price of VST Tillers Tractors was ₹ 1930 as of 26-November-2020. It traded at 22x/ 20x/ 14x the consensus Earnings per share estimate of ₹ 87.3/98.8/136 for FY21E/ FY22E/ FY23E respectively.
● Consensus average target price for VST Tillers Tractors is ₹ 1,977/- which implies a PE multiple of 15x on FY23E EPS of 136/-.

By Aniket Khanolkar Miscellaneous, Uncategorized, VST Tillers Treactors 0 Comments Read more...

26 Nov

Expect to touch Rs 170-180 bn revenue in a couple of years – Tata Chemicals

Update on Indian equity market:
After crossing 13,000 for the first time ever, the Nifty-50 could not hold onto the gains as the monthly expiry led volatility kicked in the markets. Nifty closed the day 185 points lower at 12,870. Within the index, only 8 stocks closed the day in green led by ONGC (5.9%), GAIL (2.1%) and ADANIPORTS (1.9%) whereas EICHERMOT (-3.5%), AXISBANK (-3.2%) and KOTAKBANK (-3.2%) led the laggards. Among the sectoral indices, all but one index, PSUBANK (1.9%) traded the day in the red led by REALTY (-2.3%), PHARMA (-2.1%), and BANK (-1.8%).
Excerpts of an interview with Mr. R Mukundan, CEO & Managing Director, Tata Chemicals (TataChem) published on CNBC-TV18 dated 24th November 2020:
Tata Chemicals 2QFY21 result was operationally weaker due to pressure on margins in the basic chemistry segment. All the units are working at full capacity though and the company sees no demand problem from 2HFY21.
The nutrition and agri segment performed well during the quarter. These two segments were unaffected due to the pandemic. Q1 was good and Q2 continued to be even better. Sequentially, material science has done better than 1QFY21.
He said that there are some pricing issues in the export market, but India is doing well. The UK has performed well through the pandemic. The overall momentum is positive. All the sectors are beginning to open up and the company expects to be back to normal somewhere around 2QFY22E.
Regarding the pricing power, he mentioned that as the volumes pick up, the pricing power comes back especially in the material segment.
The company is focusing on the nutraceutical segment and increased allocation of assets. Revenue from this business can scale up to Rs 50bn with this capacity addition.
The company is expecting good growth in the silica business from 3QFY21. Renewables are a big market opportunity for the company currently.
With the capacity additions and business racing towards pre-covid levels, the company is confident of achieving an annual revenue target of Rs 170-180bn in the next couple of years.
Consensus Estimate: (Source: market screener website)
The closing price of Tata Chem was ₹ 368/- as of 25-Nov-2020. It traded at 21x/ 11x/ 9x the consensus EPS estimate of ₹ 17.2/ 34.4/ 40.4 for FY21E/ FY22E/ FY23E respectively.
The consensus target price of ₹ 332/- implies a P/E multiple of 8x on FY23E EPS of ₹ 40.4/-.
Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Abhishek Salunke Chemicals, Tata Chemicals agri, nutrition, Tata chemicals 0 Comments Read more...

25 Nov

Low penetration translates to enormous growth opportunities – HDFC LIFE

Update on the Indian Equity market:
On Tuesday, the Nifty50 index closed at a record high of 13,055 (+1.0%) as hopes for faster economic recovery were renewed due to Covid-19 vaccine progress. BANK (+2.5%), PRIVATE BANK (+2.3%), and REALTY (+1.8%) led the sectoral gainers and there were no sectoral losers. Among the stocks, ADANIPORTS (+4.5%), AXISBANK (+3.9%), and HDFCBANK (+3.5%) led the gainers. TITAN (-1.5%), HDFC (-1.4%), and BPCL (-1.2%) led the laggards.

Excerpts of an interview of Ms. Vibha Padalkar, MD & CEO, HDFC Life aired on CNBC TV18 on 20th November 2020:

• The green shoots are being seen and each month has been better than the previous month. On YTD basis, the industry has declined 8% YoY while HDFC Life has grown 8%. The month of October 2020 has been one of the best with 50% growth in new business premium.
• The growth is not linked to the festive season because insurance is a long-term protection and savings outlay. The growth is due to inherent need felt by the customers. Due to the high conviction about the need of insurance, the growth has been across distribution touch points-bancassurance, and the new age ecosystem channels.
• HDFC recently sold some stake in HDFC Life due to regulatory requirements. RBI had asked HDFC to get the shareholding in both of its insurance subsidiaries to 50% levels which led to stake sale to comply before December 2020. Despite the stake sale, HDFC will continue to remain the promoter in the foreseeable future.
• Penetration levels remaining so low, the growth opportunities for HDFC Life are enormous.
• Sanchay policies- the company keeps repricing it and over the past 18-24 months since the product was launched, pricing for new policies has moved in tune with the interest rates.
• The company’s focus has been on prompt protection-mortality, morbidity, longevity and interest rate risk.
• Unit linked products are continuing to see an uptick as there is a recovery in the equity market.
• Covid-19 products are awaiting approval and it is in combination with having an indemnity on covid and is expected to do well. There is an uptick on the Covid-19 claims, which is within the company’s actuarial assumptions.
• The protection products witnessed 38% growth and is one of their best performing products, followed by Sanchay product. Sanchay par advantage has catapulted to 30-35 % of their business and is under the participating umbrella of products.
• They expect a high single digit growth for Annual Premium Equivalent (APE) for FY21E. On Value of New Business (VNB), this year is going to be flat, and margins are expected to be at the same level as FY20.

Consensus Estimate: (Source: market screener website)
• The closing price of HDFC Life was ₹ 666/- as of 24-November-2020. It traded at 97x/ 83x/ 66x the consensus earnings estimate of ₹ 6.9/ 8.0/ 10.1 per share for FY21E/FY22E/FY23E respectively.
• The consensus target price of ₹ 642 implies a PE multiple of 64x on FY23E EPS of ₹ 10.1/-.
• In the case of life insurance companies, the embedded value per share is the correct multiple for valuing the company. The consensus estimate of this metric is not available on any of the websites.

By Maitreyee Vaishampayan HDFC Life Insurance, Life Insurance covid-19 impact, growth, insurance 0 Comments Read more...

24 Nov

Planning to increase retail space by 20-25% each year: V-Mart Retail

Update on the Indian Equity Market:
On Monday, NIFTY closed in slight green at 12,926 (-0.5%). Top gainers in NIFTY50 were ONGC (+6.6%), IndusInd bank (+3.8%) and GAIL (+3.54%). The top losers were HDFC (-3.5%), ICICI bank (-2.5%) and Axis Bank (-1.8%). Top sectoral gainer was IT (+2.8%), PHARMA (+1.8%) and METAL (+1.2%) and sectoral losers were FIN SERVICE (-1.1%), BANK (-0.7%) and PVT BANK (-0.3%).

Excerpts of an interview with Mr Lalit Agarwal, Chairman & MD – V-MART Retail with CNBC dated 20th November 2020:
• They have been consistent in their store size and their store plan. The expansion plan continues and they would definitely want to open up more stores in the current and the next year.
• They have initiated their Omnichannel portal and have started getting good traction there.
• The traction was more during the lockdown in the months of April-June but right now when markets have opened up, people are once again going back to their normal brick and mortar physical shopping behaviour.
• V-Mart Retail is very bullish on weddings. They expect good wedding consumption to happen up to December 14. They have been seeing around 75 per cent or more than that (of sales) over the last year’s festival.
• It was more than 70 per cent growth on a month-on-month (MoM) basis. Even during rush hour, customers came in good numbers.
• They are also seeing basket value going up as customers don’t want to visit the store multiple times, so they are coming in and buying a little better quantity.
• V-Mart saw good growth in the festive season. The density of customers in the store was a little higher and so was the fear. However, it has definitely been much better than what it was in the last month.
• October saw more than 70% growth than September. Early November and the end of October have been better as far as the festive season is concerned.

Consensus Estimate: (Source: market screener and investing.com websites)
• The closing price of V-Mart Retail Ltd was ₹ 2,042/- as of 23rd November 2020. It traded at 52x/ 35x the consensus earnings estimate of ₹ 39.1/ 57.9 for FY22E/23E respectively.
• The consensus price target of INDIAMART Ltd is ₹ 1,958/- which trades at 34x the earnings estimate for FY23E of ₹ 57.9/-
Disclaimer: “The views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.”

By Sharvari Joshi V-Mart 0 Comments Read more...