Stock update 22 Aug

 STOCK UPDATE

BUY

CMP:Rs 1,040
PT:Rs 1,220
Trade now

Persistent Systems Limited

Growth drivers intact, maintain Buy

  • We retain our Buy rating on Persistent Systems Limited (PSL) with a revised PT of Rs. 1,220.
  • Among mid-tier companies, PSL clocked strongest revenue growth given its exposure to less-impacted verticals such as BFSI, technology and healthcare.
  • Growth momentum in technology services would continue beyond FY21E led by increasing spends on digital program, strong deal wins and a healthy deal pipeline.
  • Cash &cash equivalents account for 19% of its current market capitalisation; strong balance sheet and potential strong earnings growth (15% CAGR over FY2020-22E) provide us comfort on the stock.

Read more →

VIEWPOINT

POSITIVE

CMP:Rs 151
Trade now

MOIL Limited

Recovery in sight as steel demand improves

  • MOIL Limited (MOIL) reported better-than-expected Q1FY2021 results, as operating profit came in at Rs. 48 crore vs. expectation of operating loss of Rs. 44 crore. Performance was led by lower opex (down 38.5% y-o-y), higher realisation (up 30% q-o-q), and likely liquidation of inventory at higher prices.
  • The recent recovery in utilisation of domestic steel plants to 85-90% bodes well for recovery in manganese volume in H2FY2021. We expect a 22% PAT CAGR over FY2020-FY2022E, led by volume recovery and better realisation.
  • Valuation is attractive at 2.7x its FY2022E EV/EBITDA, 38% discount to historical EV/EBITDA multiple. MOIL offers dividend yield of 4% and has a strong balance sheet with cash and cash equivalent of Rs. 1,828 crore (51% of market capitalisation).
  • Hence, we maintain our Positive view on MOIL and expect 15% upside from current levels.

Read more →

Comments

Post a Comment

Popular posts from this blog

Neet ug 2020 is not going to postponed further

 Neet 2020 iS not going to postponed because A body of students' parents has moved the Supreme Court seeking a direction to the National Testing Agency and the Ministry of Education to ensure that NEET UG-20 and JEE (Main)-20 are held in September 2020 as notified in the 2nd revised schedule. Also Read: [BREAKING] Government postpones NEET Exam to September 13 & JEE to September 1 due to COVID19 The plea under Article 32 by the Gujarat Parents Association has been drawn and filed by Advocate on Record Jaikriti S Jadeja and is to be argued by Advocate Mitul K Shelat. The plea seeks to highlight the adverse impact that will ensue if the Entrance exams are further postponed, in particular, the loss of an academic year for students of the 2020-2021 batch. This plea comes shortly after a group of 11 NEET-UG and JEE aspirants moved the Supreme Court seeking the cancellation of the September exams in view of the rising number of coronavirus infections. These students have prayed ...
Read more

Oryx and Crake (The MaddAddam Trilogy) - Novel that has boost the enthusiasm

Image
This novel, the first in Margaret Atwood's dystopian trilogy, is a fascinating, dark and thought-provoking ride. Perhaps overshadowing the story itself, Atwood's world forces the reader into tremendous moral reflection. We are made to question the nature of exploitation, the meaning of social consent and whether effort for the greater good can ever be divorced from emotional self-interest. In terms of bigger picture message, if not story, the first book reminds me of Hugh Howey's mesmerizing Wool series. The story centers around Jimmy, also called Snowman, assumed to be the lone survivor of a plague that destroyed humanity. His companions are Crakers: a society of unworldly humanoid experiments designed to eliminate the perceived flaws of normal homo sapiens. The Crakers see Snowman as a relic and link to the "before" times as well as their source of knowledge about their creator, Crake. Jimmy has given the Crakers an origin story, that while false, is something h...
Read more

Syock update 10 Aug

Image
    Markets end in green. Pharma stocks in focus Benchmark indices erase some of their intraday gains but end higher on August 10 Major headlines Caplin Point Laboratories Q1 net profit up by 9.7% YoY to Rs. 54.5 crore TTK Prestige Q1 net profit slipped by 96% YoY to Rs. 2.6 crore Meghmani Organics Q1 net profit fell by 31.2% YoY to Rs. 39.1 crore For all the day's market news  click here Indian indices Indian stock markets ended in green but off day's high on August 10, led by gains in pharma, auto and financial stocks and also on the back of positive global cues. The Sensex rose by 0.37% or 141.51 points to 38,182.08. The Nifty advanced by 0.50% or 56.10 points to 11,270.15. The market breadth was in favour of advances with an advance-decline ratio of 2:1. Indices performance for the day Indices Closing Chg (pts) Chg (%) BSE Sensex 38,182.08 141.51 0.37 NSE Nifty 11,270.15 56.10 0.50 BSE Midcap 14,420.70 201.83 1.42 BSE Smallcap 13,869.08 200.39 1.47 Following are the s...
Read more