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Business Top five: Morgan Stanley reiterates ‘obese’ on Adani Ports; Bharat Forge Q3 results wonder

India’s Sensex Index has fallen over 7 percent from its fifty-two-week excessive while the Nifty is down 7.7 percentage from the equal level. Among sectors, the worst performer is the metals index even as the first-class is Nifty Bank. The Nifty Metal Index has declined over 30 percent from the fifty-two-week high and the Nifty Bank Index has declined five percent. There are 119 stocks listed in India that have declined greater than 50 percent from their respective 12 months excessive and offer a fine go back capacity as according to their analysts’ consensus rate. Out of those, 21 shares are such where the wide variety of buy recommendations are considerably higher than promoting or keep suggestions.

Here’s a list of such stocks

Plate 1

Dilip Buildcon

Fall from 52 weeks high -71%

Return Potential +77%

No. Of buy tips 15

No. Of sell tips 0

No. Of keep pointers three

Plate 2

Redington India

Fall from fifty-two weeks excessive -fifty-eight %

Return Potential +70%

No. Of buy tips eleven

No. Of promote recommendations zero

No. Of preserve recommendations zero

Plate 3

Sadbhav Engineering

Fall from fifty-two weeks high -fifty seven.5%

Return Potential +86%

No. Of buy guidelines 25

No. Of sell hints zero

No. Of keep tips zero

Plate 4

Indiabulls HFL

Fall from 52 weeks high -fifty-seven %

Return Potential +75%

No. Of purchase suggestions 10

No. Of sell guidelines 1

No. Of keep recommendations 3

Plate five


Fall from fifty-two weeks high -52.2%

Return Potential +78%

No. Of purchase suggestions 20

No. Of sell tips 1

No. Of hold recommendations 2

2. Morgan Stanley on Adani Ports

On a day while markets were uneven in a selection, Adani Ports turned into the top gainer on NIFTY. International brokerage Morgan Stanley reiterated its ‘Overweight’ stance with a goal of 408 as it believes the marketplace leader will hold to advantage share as evidenced with the aid of Q3FY19 results. The company is on a robust quantity wicket throughout its working ports which enables pricing strength coupled with healthful utilization that is choosing up at non-Mundra centers. Its unequaled pan-India presence enables to align with any adjustments in change tendencies beforehand of peers which allows control to the manual for quantity pick out-up in Q4. Morgan Stanley is forecasting 20% profits CAGR over FY19-21

three. Cement Price Hike

As in keeping with assets in South India, cement cos has taken some other spherical of rate boom in Feb. Total price growth at some point of the month of February is Rs40-60/bag, relying upon the marketplace. Sources additionally indicate despite a preliminary round of rate increase in advance February demand has no longer seen any major impact which is why any other rate hike has been pushed. Analyst says without much exchange in the price this need to assist cement groups to improve profitability in Q4FY19.

*Total fee boom throughout the month of February is ’40-60/bag
*Trade phase has visible steeper growth of ’60-80/bag
*2nd Price hike initiated after 1st round of hike absorbed smoothly

4. Bharat Forge

Bharat Forge’s Q3 file card came in a high-quality wonder for the markets. While the topline figures have been in line with ET Now estimates, it was the bottom line and margins overall performance that inspired the street. The stock immediately jumped over 2% as a reaction to the income, but most effective to slip over 4.5% with the aid of the end of the buying and selling session. Weak steering for the domestic market and lack of ok commentary regarded to have caused the downward spiral.

Sales in 1692.Five cr vs 1390.Five cr, up 21.7%
PAT at 309.8 cr vs 228.1 cr, up 35.Eight%
Ebitda at 525.Nine cr vs 416.Three cr, up 26.3%
Margins at 31.1% vs 29.9%

The control, but, spoke to ET Now and tried to allay worries surrounding the agency for the closing 6-eight months.


Expect US marketplace to stay robust even subsequent 12 months
Slowdown saw in the domestic market on again of a stock correction
Should see robust pre-purchase from July-Dec beforehand of BS-6 transition
Diversifying biz helped offset vagaries impacting vehicle zone
Have >$200 mn cash on books presently
Industrial biz end up big bedrock of growth for the co today
Once Baramati & Nellore flora are operational, will upload `one thousand cr to income
The US nonetheless has robust order backlog; India to be stronger ahead of BS-6 shift
Things are not as bleak in Europe as they’re projected to be
Brexit uncertainty is the largest overhang, but the UK no longer a completely huge mkt

Bharat Forge’s stock started correcting in Feb 2018 as most traders concept that america heavy truck cycle had peaked & trade war might bring down the worldwide CapEx cycle. Even though none of it has materialized till now, the sentiment continues to be weak.

5. CG Power Fall in Session

Gautam Thapar led CG Power & Industrial closed 30% down inside the session. During Q3 the center PAT become drastically down through 62% YoY led by decrease margins and better interest burden. However, there were negatives beyond Q3 metrics as well

(1) Exceptional expenses of `108cr on provisions against receivables
(2) More than half of loans to subsidiary adjusted in opposition to destiny royalty payments
(three) better-than-predicted losses within the discontinued operations

As in step with notes to account, as against loans & advances of `730cr given to subsidiary, the board has decided to alter `410cr as part agreement towards 50% of emblem royalty payable by way of organization in perpetuity and familiar re-schedule meant of balance quantity to be settled through May 2019. Royalty stands decreased to 0.Five% from 1%.

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