Latest news with #PankajPandey
Economic Times
3 days ago
- Automotive
- Economic Times
Bullish on market but near-term consolidation can't be ruled out: Pankaj Pandey
Pankaj Pandey, Head Research, says market sentiment appears positive. The banking sector may face challenges initially. Recovery is anticipated in the second half. This could lead to depository pricing. Domestic liquidity is strong. Mutual funds hold substantial equity. This cushions the market from significant drops. Near-term consolidation is possible. Overall, the market outlook is favorable. Pandey further says that in auto, Ola's future hinges on its cell technology. M&M excels across segments, while Tata Motors gains favour due to its JLR business valuation. Eicher Motors is favored in the two-wheeler segment, focusing on volume growth. Despite income tax benefits, broad sales increases haven't materialized, necessitating selective positivity in the auto sector. On the two-wheeler side, they like Eicher Motor. ADVERTISEMENT HDB Financial Services is the first subsidiary of HDFC Bank which is going public. Up until now, HDFC Ltd and HDFC Insurance had gone public, AMC went public and those were part of HDFC Limited. Now, HDFC Bank subsidiary is going public. Pankaj Pandey: For us, the HDB Financial IPO does not move much of a needle for HDFC Bank. It might add about 2% to their book and about 4% of the overall price. Beyond that, we do not see much of a scope. In general, banking lacks trigger in the near term because a rate cut is around the corner and obviously, it will pressurise margin for most of the banks and which is why probably some of these banks are sort of yet not performing. Block trades power D-Street's stock trading value to seven-month high Although the PSU banks look slightly better given that their EBR linked portfolio is relatively lesser compared to private banks, in general not negative on banks but near-term triggers for banks to do well are missing. They have already done the heavy lifting up till now. What are you telling your clients now after the recent runup? The sale in May and going away did not work this time. Should one sell and go away in June? Pankaj Pandey: Actually, we have seen a rally of about 15 odd percent from the lows and we have seen a decline of about 3 odd percent. So, from that perspective, markets are pretty strong. Also, while on the earning side, we have seen a cut of about 6 odd percent for FY27, we are still holding on to our target price of Rs 27,000 on the Nifty, largely because we expect a relative positive arbitrage coming from the US-India trade. So, from that perspective, we are still holding to the bullish bias. A lot will depend on how things pan out and the overall sense is that once we are done with that, the second half is where we would expect things to become a lot better. Like I said, first half banking might witness pressure on the NIMs, second half is where we could expect the recovery which is where the depository pricing can happen. So, overall, the sense is that markets are looking good to us. Domestic liquidity also is good for us. Mutual funds are sitting on about Rs 1.50 lakh crore equity which would prevent a downside in the market. From that perspective, we are largely set to do well, but near-term, some consolidation can't be ruled out. ADVERTISEMENT What are you making of Yes Bank? Now, there is board approval for a sizable Rs 7,500-crore fundraise. Pankaj Pandey: We are not tracking Yes Bank so much, but even within the tier II private banks, whether it is IDFC First Bank or some of the other banks, we are still cautious on whoever has got exposure to microfinance. Probably there will be one or two more quarters of pain and that is when we expect things to look up. The block deals are abundant now whether it is promoter based or PE based. Do you think irrespective of the FIIs buying or DIIs consistent SIP flow, the liquidity will get neutralised because of fundraising? Pankaj Pandey: So, yes, it is possible to some extent because when you look at it, even the IPO market is looking set to be revived. Obviously some kind of liquidity will get consumed there and even with block deals, one needs to see specific cases. For example, in the case of ITC, it is very much possible that the weightage for them might go up and this is one of the stocks we continue to like within the FMCG pack, trading at about 22 times on a forward basis. So, it is very case specific, but I really do not see a lot of these block deals being negative. From that perspective, things are looking okay to us. ADVERTISEMENT Again there has been a dismal set of earnings coming in and after the block deal, we are seeing that Hyundai and Kia Motors which have been holding around 2.5% stake have taken a complete exit in this counter. The stock is trading below that 50 odd mark as well. What is your take, any hopes because a lot of retails have participated post the IPO as well. Pankaj Pandey: We do not track Ola, The only hope for Ola would be the technology they carry, especially related to cells. As and when they start putting that into use, probably there might be hope. But within overall auto, one needs to be very selective because when you look at the recent auto numbers, you have only selected a few companies doing better in terms of key beneficiary or key player is M&M which is doing well in most of these segments. We have started to like Tata Motors largely because while global uncertainties are definitely there and are likely to persist for some period of time, valuation-wise we draw a decent amount of comfort because international JLR business is at about two times EV by EBITDA. So, from that perspective, there are some select positives. ADVERTISEMENT Similarly on the two-wheeler side, we are liking Eicher Motors. They would be pushing for volume growth at the expense of margins, but it is a decent premiumisation play. In general, the benefit of higher sales is still not coming in because there was anticipation that post income tax benefits, numbers might start looking up. But that is yet to happen and that is why one needs to be selectively positive in autos. Any upgrades after the earning season? Pankaj Pandey: We have started to like a lot of stocks. For example, VA Tech Wabag looks interesting to us. This is one of the few companies in the water space. ELGi Equipment, again, is one of the few companies we like. We feel that with their product launches, domestically they will be able to overcome the Chinese competition. In addition to that, some of the cement companies like JK Lakshmi look good to us. In the last few years, they have grown at 4%. Now, our sense is that with capacity expansion they could be growing at about 8 odd percent. Lumax Auto is another company which we like. While the stock has run up, post correction, this is one of the few auto ancillary companies which is guiding for a 20% CAGR growth until 2031 and that looks good to us. ADVERTISEMENT HEG is another company which we like because somewhere down the line, a lot of these global companies or peers are witnessing challenges and either someone will go out of the business or the price for graphite electrodes can go up. HEG is relatively a lot better placed. These are some of the ideas we are liking. (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
22-05-2025
- Business
- Economic Times
Why are foreign investors flocking to BFSI stocks in May?
Foreign Portfolio Investors (FPIs) significantly increased their investments in Indian markets during the first half of May, with banking and financial services (BFSI) stocks attracting the highest inflows at ₹4,728 crore. Capital goods and oil & gas sectors also saw substantial investments, while FMCG experienced the most significant selling pressure. Experts anticipate further FII inflows driven by global de-dollarization. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Mumbai: Foreign investors pumped ₹4,728 crore into banking and financial services shares in the first half of May - the highest flows across sectors. The investments account for almost 40% of their net flows of ₹12,800 crore across all sectors during the April, foreigners had bought BFSI shares worth ₹18,409 crore after being sellers in January-March and 2024."BFSI comprises almost 30% of all major indices and has also witnessed the highest earnings growth given the slowdown in the other sectors," said Manish Bhandari, CEO & portfolio manager, Vallum Capital. "Further inflows are likely in the segment."Capital goods, oil and gas, services and automobiles, along with the Information Technology (IT) and metals sector, were among the other sectors that attracted flows in the May 1-15 investors pumped in ₹2,233 crore and ₹2,130 crore in capital goods and oil & gas sectors, respectively, in the first 15 days of May."Capital goods and oil and gas sectors have both corrected significantly and the latter has seen the highest foreign outflows during the sell off," said Pankaj Pandey, head of retail research, ICICI Direct."This trend is reversing in both the sectors and Reliance has started to perform, which is positive for oil and gas sector as a whole."Foreign investors purchased shares worth over ₹1,000 crore in services, automobiles, consumer services and telecommunication investors offloaded shares worth ₹4,142 crore across nine sectors in the first 15 days of the month. The selling was the highest in the fast-moving consumer goods (FMCG) sector, where foreign investors sold divested ₹1,057 crore after buying ₹2,917 crore in said overseas investors continued to remain negative on the FMCG sector as it is expected to have low single-digit growth rate and trade at high valuations."FII inflows are expected to accelerate, led by the increased de-dollarisation across the world," said Bhandari. "Both India and China are likely to see incremental buying."
New Indian Express
21-05-2025
- Business
- New Indian Express
Telangana Dy CM Bhatti visits Bengaluru to inspect major underground cabling project
HYDERABAD: Deputy Chief Minister Mallu Bhatti Vikramarka on Tuesday visited Bengaluru for an in-depth review of the city's large-scale underground cabling initiative undertaken by the Bangalore Electricity Supply Company Limited (BESCOM). The visit is part of the state government's ongoing efforts to modernise urban infrastructure and enhance the reliability, safety and aesthetics of power supply systems in rapidly expanding metropolitan areas. As part of the visit, a high-level review meeting was held with BESCOM officials. Presentations were made by Pankaj Pandey, MD, Karnataka Power Transmission Corporation Limited and Bengaluru Electricity Supply Company, along with his team. They briefed Vikramarka on the overhead (OH) to underground (UG) power conversion Project — considered one of India's most comprehensive urban power infrastructure transformations. Launched in 2018–19, the project has already converted over 7,400 kilometres of 11kV OH lines and thousands of kilometers of low-tension lines into UG or aerial bunched (AB) cables. A key innovation has been the installation of Optical Fiber Cable (OFC) ducts along UG routes to facilitate future telecom leasing, creating a potential revenue stream. During the meeting, the deputy CM inquired about the project's design and implementation challenges. He also examined the financial structuring, which includes funding from the Asian Development Bank (ADB), Rural Electrification Corporation (REC), and other public sector banks. BESCOM officials reported that the UG conversion has already led to a reduction in technical losses and electrical accidents by up to 2%.
Economic Times
15-05-2025
- Business
- Economic Times
QSR growth faces headwinds as online food platforms capture investor focus: Pankaj Pandey
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel "When you look at steel as a sector, the context is that the price is at a four-year low, then we had imports at a 10-year high and with 12% kind of a safeguard duty, our sense is that for a company like Tata Steel which did somewhere about Rs 12,000 per tonne kind of a ebitda in the domestic side and with company guiding for a 3,000 kind of overall price appreciation, the numbers are going to get better for Tata Steel," says Pankaj Pandey , Head Research, see, from a consumption perspective, our sense is that the wallet share which is increasing is increasing for say hotels, hospitals, or even from investment side AMCs, unlike what you see for FMCG and other sense is that a lot of these trades are crowded and so our sense is that there are two-three categories which are structurally looking is expected to be about 6 odd percent, supply is going to grow at 2%, and we have seen ARRs inching up and hospitals is no different. And the other consumption category could be on the premium side be it autos or be it two-wheeler or in addition to that within BFSI or non-BFSI segments, for example the AMCs look very attractive to us whether it is a largecap performing or midcap are the categories which we feel are expected to do a lot more better than a food delivery because that looks more crowded to yes. When you look at steel as a sector, the context is that the price is at a four-year low, then we had imports at a 10-year high and with 12% kind of a safeguard duty, our sense is that for a company like Tata Steel which did somewhere about Rs 12,000 per tonne kind of a ebitda in the domestic side and with company guiding for a 3,000 kind of overall price appreciation, the numbers are going to get better for Tata Steel. And even their UK business, the kind of cost reduction what they are taking, that will be visible in the next year. So, from that perspective Tata Steel is expected to do very like the entire steel as a pack. Even Hindalco 's number, Novelis especially ebitda per tonne was better than our estimates. So, cement and steel are the two sectors where we are constructively seeing a material improvement on a quarter-on-quarter basis. Steel will see a better set of numbers in the maximum opportunities are going to lie there. I will not really say the same thing about the sail because see typically in a scenario when the prices go up, the most inefficient player sees the highest price appreciation. So, from that perspective, we would still want to prefer Tata Steel or JSW Steel or Jindal Steel & on the paint side, when I look at say Asian Paints, last two quarters the volume growth has been about two-three odd percent which is substantially lower than the long-term growth of low-double digit what we expect, while margin pressure is expected because Birla Opus is offering nearly 10% kind of a lower prices and while the price damage in Asian Paints largely looks done because valuation-wise it is trading somewhere about 44 times on a forward basis, but for us to look at this stock or the entire paint segment constructively, I think the volume growth needs pinch that time it does not happen, it is going to remain sideways or in case if the price intensity goes up, I would not rule out a minor correction as well from a price perspective.
Time of India
15-05-2025
- Business
- Time of India
QSR growth faces headwinds as online food platforms capture investor focus: Pankaj Pandey
"When you look at steel as a sector, the context is that the price is at a four-year low, then we had imports at a 10-year high and with 12% kind of a safeguard duty, our sense is that for a company like Tata Steel which did somewhere about Rs 12,000 per tonne kind of a ebitda in the domestic side and with company guiding for a 3,000 kind of overall price appreciation, the numbers are going to get better for Tata Steel," says Pankaj Pandey , Head Research, As bullish the commentary maybe from Jubilant, the street has been more hooked up with the Q-Comm platforms, the online retailers when it comes to food delivery as opposed to the QSR traditional spaces. Do you think it makes sense perhaps to have exposure to both in your portfolio? Pankaj Pandey: So, see, from a consumption perspective, our sense is that the wallet share which is increasing is increasing for say hotels, hospitals, or even from investment side AMCs, unlike what you see for FMCG and other categories. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Trending in in 2025: Local network access control [Click Here] Esseps Learn More Overall sense is that a lot of these trades are crowded and so our sense is that there are two-three categories which are structurally looking positive. Demand is expected to be about 6 odd percent, supply is going to grow at 2%, and we have seen ARRs inching up and hospitals is no different. And the other consumption category could be on the premium side be it autos or be it two-wheeler or four-wheeler. And in addition to that within BFSI or non-BFSI segments, for example the AMCs look very attractive to us whether it is a largecap performing or midcap performing. Live Events These are the categories which we feel are expected to do a lot more better than a food delivery because that looks more crowded to us. Do you think there is an investment opportunity when it comes to steel, specifically perhaps led by Tata Steel? We were just looking at the numbers and they look pretty okay. The visibility for both the UK as well as the Netherlands business as well seems like FY26 is going to be the year, India demand in any case was intact. Pankaj Pandey: Oh yes. When you look at steel as a sector, the context is that the price is at a four-year low, then we had imports at a 10-year high and with 12% kind of a safeguard duty, our sense is that for a company like Tata Steel which did somewhere about Rs 12,000 per tonne kind of a ebitda in the domestic side and with company guiding for a 3,000 kind of overall price appreciation, the numbers are going to get better for Tata Steel. And even their UK business, the kind of cost reduction what they are taking, that will be visible in the next year. So, from that perspective Tata Steel is expected to do very well. We like the entire steel as a pack. Even Hindalco 's number, Novelis especially ebitda per tonne was better than our estimates. So, cement and steel are the two sectors where we are constructively seeing a material improvement on a quarter-on-quarter basis. Steel will see a better set of numbers in Q1. So, the maximum opportunities are going to lie there. I will not really say the same thing about the sail because see typically in a scenario when the prices go up, the most inefficient player sees the highest price appreciation. So, from that perspective, we would still want to prefer Tata Steel or JSW Steel or Jindal Steel & Power. How are you viewing the entire paint segment especially Asian Paints ? You think the negatives are all priced in because this is the one which had that big shake-off and pretty much got downgraded across the board and derated so to speak when Birla Opus came into the market. Pankaj Pandey: So, on the paint side, when I look at say Asian Paints, last two quarters the volume growth has been about two-three odd percent which is substantially lower than the long-term growth of low-double digit what we expect, while margin pressure is expected because Birla Opus is offering nearly 10% kind of a lower prices and while the price damage in Asian Paints largely looks done because valuation-wise it is trading somewhere about 44 times on a forward basis, but for us to look at this stock or the entire paint segment constructively, I think the volume growth needs pinch up. Till that time it does not happen, it is going to remain sideways or in case if the price intensity goes up, I would not rule out a minor correction as well from a price perspective.
