Latest news with #AtulParakh
Time of India
20-05-2025
- Business
- Time of India
Smallcaps vs Largecaps: As markets recover, which is the better investment bet currently?
In the recent market rally, smallcap stocks have outperformed their large-cap counterparts, drawing significant investor interest. The BSE SmallCap index surged by 9% last week, while the BSE MidCap index gained 7%, both outpacing the Sensex and Nifty 50, which rose by 4.2%. This trend has led to a debate among investors about the merits of smallcap versus largecap investments in the current market. Smallcaps vs largecaps Small-cap stocks are known for their potential to deliver high returns, especially during market recoveries. However, this potential comes with increased volatility and risk. The Nifty Smallcap 250 index currently has a price-to-earnings (P/E) ratio of 32.2, indicating that valuations are on the higher side. Atul Parakh, CEO of Bigul, notes that small caps are attractively valued and poised for earnings growth, making them suitable for investors with a medium- to long-term horizon and a higher risk tolerance . Chakrivardhan Kuppala, co-founder of Prime Wealth Finserv, adds that many small-cap companies are still trading 35–40% below their previous highs, suggesting room for growth. Meanwhile, convention suggests that largecaps offer stability and are less volatile, making them appealing to conservative investors. They have shown improved earnings compared to the past two quarters, and there has been a revival in foreign institutional investor (FII) interest, particularly in sectors like banking, infrastructure, healthcare, and power. Which is a better investment currently? Given the current market dynamics, a diversified investment approach that includes both smallcap and largecap stocks can help balance risk and return, experts say. Investors should consider their risk tolerance, investment horizon, and financial goals when making investment decisions. While smallcaps offer higher growth potential, they come with increased volatility. Largecaps provide stability and steady returns but may offer lower growth prospects in the short term. Kush Gupta, Director at SKG Investment and Advisory, believes that large caps are better positioned for investment in the current cycle, offering steady returns with lower risk.
Mint
09-05-2025
- Business
- Mint
IOC vs BPCL vs HPCL: Which oil PSU stock to buy after Q4 results, falling crude prices?
Stocks to buy: All three oil market companies - Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) - are in the limelight amid weakness in crude oil prices and quarterly earnings for the fourth quarter of the financial year 2024-25 (Q4 FY25). The question remains which PSU oil stock looks best poised for gains against this backdrop. IOC's Q4 net profit rose 50% year-on-year (YoY) growth in standalone net profit to ₹ 7,264.85 crore, due to inventory gains, as the company processed crude oil bought at lower prices and sold products made from it when prices had risen. Revenue from operations, however, fell 1% to ₹ 2.17 lakh crore in Q4. IOC's gross refining margins (GRM) for Q4 stood at $7.85 per barrel, as against $8.39 a barrel in the same period last year. Meanwhile, HPCL reported an 18% YoY rise in its standalone net profit for Q4 FY25 to ₹ 3,355 crore. Its total income for the quarter under review stood at ₹ 1,19,126 crore, 2.7% lower than ₹ 1,22,386 crore posted in the March quarter of FY24. Q4 FY25 witnessed a very strong operational performance. Refineries recorded the highest-ever quarterly throughput of 6.74 million tonne. The company board recommended a final dividend of ₹ 10.50 per equity share for FY25. However, BPCL saw a 24% decline in standalone net profit to ₹ 3,214.06 crore in Q4. Its revenue from operations fell 4% YoY to ₹ 1.26 lakh crore. Market sales rose 1.82 per cent to 13.42 million tonnes in Q4 and by 2.66 per cent to 52.40 million tonnes in FY25. The board of directors of the company announced a final dividend of ₹ 5 per equity share. IOC outperformed with 50% YoY profit growth to ₹ 7,265 crores, driven by superior operational efficiency despite flat revenues, explained Atul Parakh, CEO of Bigul. He added that HPCL grew 18% to ₹ 3,355 crore thanks to increased crude throughput (6.74 MMT vs 5.84 MMT) and stronger domestic sales. Meanwhile, BPCL's profits fell, hammered by plummeting refining margins that nearly halved from $14.14 to $6.82 per barrel and ongoing LPG subsidy burdens. "The real story behind BPCL's underperformance? Their GRM collapsed to $6.82/barrel from a whopping $14.14 last year. Meanwhile, HPCL increased crude throughput to 6.74 MMT (up from 5.84 MMT) and boosted domestic sales to 12.11 MMT," Parakh explained. All three stocks are also in focus amid weakening crude oil prices. Lower crude prices tend to boost refining margins and improve profitability for oil marketing companies. After briefly sliding below $60 per barrel, Brent crude oil prices have rebounded to $63 apiece. However, they are still significantly lower by 14% for the year. "A fall in global oil prices directly could have a positive impact on refining margins and improve the marketing segment profitability, particularly for companies like HPCL, BPCL, and IOCL, but erode the earnings for the upstream players – ONGC and Oil India," YES Securities said in a report. So far this year, IOC share price is up 1.61% while BPCL has risen 2.96% and HPCL has lost 7%. Fundamentally, analysts believe OMCs will continue to do well because GRMs are expected to be strong. "By and large, these oil marketing companies are likely to do well because gross refining margins (GRMs) are expected to remain strong, and crude oil prices should stay within a stable range, despite ongoing geopolitical tensions. These crises may create short-to medium-term pressure, and occasionally, we might see some unusual spikes. However, even during those spikes, prices tend to revert to long-term averages," said Kranthi Bathini of Wealthmills Securities. He added that while oil marketing companies look good for the long term and can offer stable returns, among them, IOC remains my preferred choice for long-term investment. "On a longer-term, I like IOC because of its better dividend yield, stable price, and strong future business plans—especially in alternative energy and green hydrogen. IOC remains my top priority in the pecking order," said Kranthi Bathini. Echoing similar views, Parakh said after the Q4 results, IOC emerges as a better performer among the three OMCs. "With crude prices continuing their downward trend, IOC looks best equipped to capitalise thanks to their operational efficiency gains and superior scale. For investors looking at the OMC space right now, IOC offers the most compelling story and strongest momentum," Parakh added. However, on technical charts, BPCL is showing momentum, according to Anshul Jain, Head of Research at Lakshmishree Investments. "Post Q4 results, IOC has tested the 50% retracement of its fall from the high at 149 and is now facing resistance. A close above 150 may trigger fresh momentum. HPCL is nearing strong weekly resistance at 417, suggesting possible consolidation. In contrast, BPCL is sustaining above its 92-day cup and handle breakout level at 312, indicating strength, and may head towards the next target of 368 in the near term," Jain said. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
30-04-2025
- Business
- Economic Times
Beat the heat: 5 stocks that could keep your portfolio cool this scorching summer
As India anticipates a scorching summer, cooling appliances and power sectors are gaining investor attention. Stocks like Blue Star, Voltas, and Whirlpool are poised to benefit from increased demand for ACs and electricity. While risks like delayed summer sales exist, analysts suggest a staggered approach, focusing on companies with strong pricing power. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads As India braces for what is expected to be one of its harshest summers in recent memory, the soaring mercury is not just pushing people indoors, it is also heating up specific pockets of the stock market. This year, rising temperatures, longer heatwave spells, and strong seasonal forecasts are creating a sweet spot for investors looking at sectors like cooling appliances and summary, as the temperatures soar, sectors tied to cooling, consumption, and power are likely to stay hot on Dalal Street. Stocks like Blue Star Whirlpool , and selected renewable energy plays could offer a chance for investors to not just beat the heat — but also keep their portfolios refreshingly Matlawala, Senior Fundamental Analyst at SSJ Finance & Securities, points out that demand for ACs is poised to surge by over 25% this season. "Companies are gearing up for a record season, with Voltas , Blue Star, and Havells being the three major listed players. Among them, Blue Star stands out for its consistent performance, stable margins, and healthy growth," he Star, he notes, is not only strong in the residential AC segment but also commands a solid position in the centralized and commercial AC market. Its current order book for commercial cooling solutions stands at Rs 6,800 company's focus on innovation — with new model launches ahead of peak season — puts it in a sweet spot to capitalize on the demand spike. "It's not just about consumer sales. their project pipeline gives revenue visibility beyond the summer surge," Matlawala ACs will dominate headlines, the rise in temperatures is also pushing up the demand for electricity. However, the worry of power shortages, which has often accompanied past heatwaves, seems muted this time. Matlawala believes the sector is better prepared. "Companies have built sufficient capacity. We do not foresee a major demand-supply mismatch this summer," he the broader opportunity, Atul Parakh, CEO of Bigul, agrees that the entire cooling product ecosystem is seeing a positive rub-off."The Indian Meteorological Department has forecast higher-than-normal temperatures, and that's directly leading to a rise in sales of ACs, refrigerators, and air coolers. Coupled with India's national push towards renewables, energy stocks linked to green power are also an attractive thematic play this summer," Parakh from a technical perspective, cooling product stocks are already displaying resilience. Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets , highlights Whirlpool as a stock showing notable strength compared to benchmark indices."Whirlpool is holding firm and showing higher relative strength. One can consider accumulating the stock at current levels or even on dips, with an upside potential of 15–20% from here," Vasudeo Electric is another player, where the management remains optimistic about Q1 performance, supported by severe summer forecast across India."At the CMP, the stock trades at 38.7x of FY26 EPS. We maintain a Buy on the stock with a target price of Rs 310," said Anand Rathi there are some risks. Reports suggested that AC sales in the upcoming April to June quarter could be negatively affected due to muted sales in March and April resulting from a delayed summer. If this materialises, then primary sales for many players in the cooling business could get uptick in summer-driven demand also needs to be weighed with valuations, especially as some of the major players have already seen a run-up in stock. Analysts advise a staggered approach — entering stocks on declines and focusing on companies with pricing power and brand looking to ride the summer trade should also be mindful of broader market trends and upcoming macro events that could cause volatility. But fundamentally, the theme remains intact.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Time of India
30-04-2025
- Business
- Time of India
Beat the heat: 5 stocks that could keep your portfolio cool this scorching summer
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel As India braces for what is expected to be one of its harshest summers in recent memory, the soaring mercury is not just pushing people indoors, it is also heating up specific pockets of the stock market. This year, rising temperatures, longer heatwave spells, and strong seasonal forecasts are creating a sweet spot for investors looking at sectors like cooling appliances and summary, as the temperatures soar, sectors tied to cooling, consumption, and power are likely to stay hot on Dalal Street. Stocks like Blue Star Whirlpool , and selected renewable energy plays could offer a chance for investors to not just beat the heat — but also keep their portfolios refreshingly Matlawala, Senior Fundamental Analyst at SSJ Finance & Securities, points out that demand for ACs is poised to surge by over 25% this season. "Companies are gearing up for a record season, with Voltas , Blue Star, and Havells being the three major listed players. Among them, Blue Star stands out for its consistent performance, stable margins, and healthy growth," he Star, he notes, is not only strong in the residential AC segment but also commands a solid position in the centralized and commercial AC market. Its current order book for commercial cooling solutions stands at Rs 6,800 company's focus on innovation — with new model launches ahead of peak season — puts it in a sweet spot to capitalize on the demand spike. "It's not just about consumer sales. their project pipeline gives revenue visibility beyond the summer surge," Matlawala ACs will dominate headlines, the rise in temperatures is also pushing up the demand for electricity. However, the worry of power shortages, which has often accompanied past heatwaves, seems muted this time. Matlawala believes the sector is better prepared. "Companies have built sufficient capacity. We do not foresee a major demand-supply mismatch this summer," he the broader opportunity, Atul Parakh, CEO of Bigul, agrees that the entire cooling product ecosystem is seeing a positive rub-off."The Indian Meteorological Department has forecast higher-than-normal temperatures, and that's directly leading to a rise in sales of ACs, refrigerators, and air coolers. Coupled with India's national push towards renewables, energy stocks linked to green power are also an attractive thematic play this summer," Parakh from a technical perspective, cooling product stocks are already displaying resilience. Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets , highlights Whirlpool as a stock showing notable strength compared to benchmark indices."Whirlpool is holding firm and showing higher relative strength. One can consider accumulating the stock at current levels or even on dips, with an upside potential of 15–20% from here," Vasudeo Electric is another player, where the management remains optimistic about Q1 performance, supported by severe summer forecast across India."At the CMP, the stock trades at 38.7x of FY26 EPS. We maintain a Buy on the stock with a target price of Rs 310," said Anand Rathi there are some risks. Reports suggested that AC sales in the upcoming April to June quarter could be negatively affected due to muted sales in March and April resulting from a delayed summer. If this materialises, then primary sales for many players in the cooling business could get uptick in summer-driven demand also needs to be weighed with valuations, especially as some of the major players have already seen a run-up in stock. Analysts advise a staggered approach — entering stocks on declines and focusing on companies with pricing power and brand looking to ride the summer trade should also be mindful of broader market trends and upcoming macro events that could cause volatility. But fundamentally, the theme remains intact.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Mint
24-04-2025
- Business
- Mint
HUL Q4 result today: Shares rise 2%; here's what experts expect from FMCG major's Q4 earnings
Hindustan Unilever (HUL) shares climbed 2 per cent in morning trade on Thursday, April 24, ahead of their March quarter (Q4FY25) results. HUL share price opened flat at ₹ 2,422.15 against its previous close of ₹ 2,422.15 but climbed 1.8 per cent to an intraday high of ₹ 2,465. Around 9:35 AM, HUL share price traded 0.92 per cent higher at ₹ 2444.35. Equity benchmark Sensex was 0.10 per cent down at 80,036 at that time. Extending gains to the second consecutive session, the FMCG stock closed 0.96 per cent higher at ₹ 2,422.15 on the BSE on Wednesday, thus rising over 7 per cent in April so far after a 3 per cent gain in March. Hindustan Unilever share price has seen a tepid gain of 7.5 per cent over the last year, hitting a 52-week high of ₹ 3,034.50 on September 23 last year and a 52-week low of ₹ 2,136 this year on March 4. Amid subdued demand and intense competition, experts believe investors will focus on management's commentary on inflation trends, pricing strategies, and consumer response to Lux and Lifebuoy's new formulations. HUL has seen unimpressive volume growth for the last several quarters, and experts expect another quarter of muted earnings from the consumer goods bellwether due to rising commodity prices, subdued urban demand, and heightened competition. While some anticipate the company will report flat to low single-digit volume growth, a few even suggest that HUL could be the weakest performer in terms of volume growth in the FMCG sector. Jefferies expects HUL to post flat volumes, making it one of the weakest among its FMCG peers. 'Demand trends in the March quarter remained broadly similar to the December quarter, marked by subdued urban, even while there was a slight recovery in rural," Jefferies said. Brokerage firm SMC Global Securities expects Hindustan Unilever to show weak performance across categories, particularly in soaps and tea, which may keep overall revenue growth flat. The brokerage firm believes price cuts in detergents and increased discounting in the home care segment may offset the gains from price hikes in other categories. According to SMC Global, HUL's volume growth may remain subdued, although home care and hair care may show positive momentum. Raw material inflation, especially in tea and palm oil, may pressure gross margins. "EBITDA margins are expected to remain flat year-on-year, supported by reduced advertising and staff costs, along with slightly improved operating leverage," SMC Global said. Atul Parakh, CEO of Bigul, said that after reporting 1.6 per cent revenue growth in Q3, expectations for Q4 suggest modest improvement with approximately 2 per cent year-on-year revenue growth. This will likely be driven by 1.4 per cent price growth from strategic hikes in the soaps and tea categories. Parakh expects HUL's volume growth to remain muted, with detergent price cuts impacting sequential top-line performance. "While urban demand moderated in Q3, gradual rural recovery remains a key focus. Investors should monitor management commentary on Q1FY26 strategy, particularly how the company plans to capitalise on the potential consumption boost from the central government's recent tax relief measures. Margin performance will be closely watched after the slight dip to 23.4 per cent in the previous quarter," said Parakh. Read all market-related news here
